Delroy Chuck
HOW POOR people survive, only God knows. The standard of living of every Jamaican, except for the rich and well connected, is being savaged. For the vast majority of Jamaicans, the economic hardships bear down unduly. Householders are seriously challenged to meet their bills for utilities, groceries, domestic salaries and ordinary expenses. Pensioners, who have given so much to the country and expect to enjoy the evening of their lives, cannot cope with the ravaging price increases. Right across the country, the increasing cost of living, rampant inflation and unbearable economic pressures have inflicted untold suffering, unnecessary social deprivation and increasing human frustrations.
Jamaica is in crisis. And, the blame must be laid squarely on the government. Jamaica's problems did not originate with the recent oil price hike, which is the latest government excuse. Jamaica's ills and problems started long ago, with a bankrupt economic model that depended on loans, grants and remittances to sustain Jamaica's economic viability but failed to generate the needed growth and development. This economic model has merely led Jamaica into the category of one of the world's most heavily indebted countries, which is the source of our problems.
NO GROWTH
For a decade and more, with the usual public relations fanfare and skewed economic prescriptions, the present government has promised economic growth and development but virtually none has occurred. Growth in the economy has averaged less than 1% annually for the past 15 years. Annual economic growth of 3% has not occurred since 1991. Yet, the alleged world-class finance minister, Dr. Omar Davies, continues with the same bankrupt economic model that has brought so much pain and suffering to the vast majority of the people. It is the failure to grow the economy that has created an atmosphere of restlessness, lawlessness and hopelessness, which is probably responsible for the unprecedented crime and murder rate. Amazingly, Dr. Davies dares to offer a Campaign for Prosperity, which can only further enrich the wealthy and impoverish the poor.
To be sure, the government's handling of the economy has found favour with many businesses and well-connected persons that have benefited significantly under these misguided economic policies. The wealthy, money traders and preferred contractors are the main beneficiaries of government's prolonged borrowing spree, which has increased the national indebtedness to nearly 800 billion dollars. Through the efforts of the world-class borrower, Dr. Omar Davies, the country has paid more in interest payments on its debt, for the past two fiscal years, than it spent on the recurrent expenditure for government service. For fiscal years 2003/4 and 2004/5, the country paid 91.6 and 94.8 billion dollars in interest payments, while it used only 85.2 and 92.6 billion dollars to service the recurrent expenditure of the country. Just imagine, the country is paying out more to service its indebtedness than it is paying to educate our people, tend to the sick and dead, pay our civil servants, teachers and police, provide a decent fire service, and generally manage the affairs of the country.
It is the country's increasing indebtedness and obligation to service the enormous loan portfolio why the people of this country have to endure so many government fees, price increases, galloping inflation and poor social services. If the government had hitherto managed the country's affairs properly, it would not be required to pay out over 90 billion dollars in interest charges annually, which has, consequently, deprived the people of the needed funds to fix and maintain roads, schools, hospitals, and provide proper social services for the people. It is simply economic madness that created an economic model to provide 90 billion dollars in interest payments to the bondholders and government lenders, and make money trading the main economic activity for wealth creation.
Therefore, when parents have to find $10,000 to $40,000 per year for school fees, families have to pay tens and hundreds of thousands to hospitals for their sick and deceased members, roads cannot be fixed, police and other government employees cannot be well paid, the fire service cannot be properly maintained or equipped, and unbearable price increases are unleashed on the people, we need look no further than the skewed and idiotic economic model that has brought the country to its knees. Only a world-class leader that we will not find in the present government can truly rescue us from our present economic predicament.
Delroy Chuck is an attorney-at-law and Opposition Member of Parliament. He can be contacted by email at delchuck@hotmail.com.
