Tag: Debt

It’s high time we audited Jamaica’s debt

It’s high time we audited Jamaica’s debt

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.

Advertisements