Jamaica has a high level of debt, pardon me for stating the blatantly obvious, but just to hammer home that point let me state that Jamaica’s debt to GDP ratio is at the rate of %115, in other words, each Jamaican citizen owes an individual total of roughly $800,000 (JMD). This level of indebtedness has had a massive toll on the nation, be it the fact that we have to take on stringent IMF regulations in order to get by, the fact that borrowing on the international stage is now rather taxing, but the most damning thing about all of our debt is that we really have nothing to show for it.
The billions in debt that the state (and as such we individuals) have to repay and honour is in need of auditing. The fact of the matter is that (and I’m only speaking of the 80’s onwards) for all of the billions we owe the nation (to use a technical term) looks like a piece of crap. Monies that was borrowed for bridge building in Parish X disappears and the bridge is not there, money borrowed for road repairs vanishes and the roads are left to further cave in. Money that we cant afford to pay back is borrowed to upgrade jail cells to move them out of the mid 19th Century is not accounted for and the jails remain like dungeons.
A majority of the money owed was borrowed because the state wished to ‘improve the lives of its citizens’, and yet here we are, 37 years after the economy was returned to pure capitalism and a willing credit market (the little democratic-socialist initiatives initiated by Manley were almost all killed off by the successive administrations) with nothing to show for it except an ungodly level of debt, nothing relating to infrastructure, and a sick joke when it comes to social services. Along with politicians and certain well-connected individuals getting rich coincidentally of course.
The people have not benefited, we as a society have received no gains from this borrowed money and instead, are left to foot the bill, that is utter madness (to put it politely) and should not be allowed to pass unchallenged. We should demand a forensic audit of this debt (or as much of it that can be audited) so we can find out just where the money went and most importantly, who has/had it. Now I’m not of the opinion that the guilty parties once found out would (or even could) pay back the money, but it would be a massive start, it would show that theft from the state is no longer something to turn a blind eye to and it would also send a strong message to those who wish to dip into the public purse for their own benefits.
Were in over our heads when it comes to this debt, full repayment is simply not an option if we wish to live in a nation resembling anything near half decent, it is a massive handicap. The audit of our borrowed money (who got it, what was it used for and the terms of the loan) would be a most important step in either wiping away our debt (something we should be heavily lobbying for) or at the very least in getting a haircut on the debt, that is only possible with an audit. I say again the people have not benefited from this borrowed money, and unless and until a full forensic audit is done on our debt, quite frankly we shouldn’t (as citizens) pay our taxes (which only go to debt service) and demand that a closer look at our debt is carried out.
P.S. I’d like to thank Mr Lloyd D’Aguilar for providing the seed for this bit of commentary, if it weren’t for his posts on twitter I’m not sure that this process would have crossed my mind.
jamaicachange 
Just because someone shouts ‘Fire!’ from behind a bush does not mean there is a fire, or that it’s burning anywhere near the shouter. Also, repetition does not make anything true. That said, Jamaica’s public debt details are no secret and has been examined in detail by many, already, including the IMF and World Bank, who undertook a ‘debt sustainability analysis’, that requires the details of all the debts to be examined to assess their sustainability. Admitted, that is not an ‘audit’ of how debts were used. While, it would be useful to know all the precise details of how money is spent, I’m not sure it’s possible in even the best of circumstances for even public debt. I don’t know how many ways a contract may be broken down, but one knows from say building works that many subcontracts may be entered into and the details of those may or may not be easily found. Sure, one can look to who is responsible at various levels, but one may then not be able to do much with that knowledge. One would also have to ensure that all the parties then responsible are still viable and their records available. Assuming the best, though, one could set to work on unearthing those details. I’ve no idea how many person-hours would be needed for that. But, say, we found all the details, what then? We found that money was misspent—which we can deduce, anyway. What can be done by way of restitution? If you reply ‘repudiate’ the debt, I’ll say ‘You’ll have to go to Court’. Let me leave it there, because not all of the lenders can be sued in Court, and/or the government of Jamaica may not decide to expend money of going down that uncertain route of defending the breaking of contracts.
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The points you make are relevant and good points, but I still think its something at least worth discussing, Sure we ‘know’ the money was misspent, like you say we can see it. But we don’t ‘know’ where it went or who benefited (like you say the subcontractors etc), if we don’t know (hard proof) then we may very well end up contracting them again because legally they have done nothing wrong. As to forgiveness and haircuts, I agree again that it’s most unlikely that that will happen, but worth a shot at least asking (no harm there) and if they say no ask for help with the audit, I’m sure that they are also tired of pumping money and seeing to rewards…. but like I say it is most unlikely
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Discuss all you like; it’s your time 🙂 Audits wont necessarily answer any of the questions you pose. You can or may also find many instances of people who did good things within bad overall outcomes, but not find those who created the bad outcomes. You also have to ask what systems exist to deal with your conclusions. Debt defaults have not often been successful over many centuries (they’re by no means new) for many reasons, but read some recent research on the topic https://mitpress.mit.edu/books/debt-defaults-and-lessons-decade-crises
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The most recent DSA was presented in the IMF’s 2016 Article IV Consultation report, which is publicly available on the IMF’s website. You and the shouter are welcome to speak to the IMF’s resident representative, who sits ready in his office in Kingston to help explain the issues at least as they pertain to the IMF, which is one of the main debt holders.
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A genuine question (I say that because I have a tendency to sound snarky), why can’t we get debt forgiveness like what Blair did for all those nations years ago (I believe Guyana was a beneficiary of that)? Also, why are we (most of the region) classified as middle income? By the way, I hadn’t even thought of speaking to the IMF representative, nice idea, thank you.
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We don’t meet the criteria for ‘low income’ countries, for whom the initiative was framed. We’re ‘middle income’ because we fit the criteria. yOu can read up on the definitions. Many often don’t go to obvious and accessible places to make their case or expand their knowledge, seeking instead to hope that the pleas fall on waiting ears. 🙂
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Also, when international assistance agencies rebuff clients (in any form) they don’t want to get blow back indicating they were unapproachable 🙂
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