Mr Shaw’s well-timed visit to Washington, DC
Finance Minister Audley Shaw went to Washington, DC last week to re-introduce himself to the international financial institutions and to re-emphasise the Jamaican Government’s commitment to continuing the current International Monetary Fund (IMF) programme.
This was necessary because the Washington-based institutions and the New York-based banks were experiencing a severe bout of nerves. They were uncertain as to whether the new Government would want to complete the IMF programme, renegotiate or adjust it.
Readers will recall that the IMF team met with Prime Minister Andrew Holness immediately after the general election and Mr Shaw’s utterances have reassured the international financial institutions that the Government will stick to the programme.
Mr Shaw’s visit was well-timed, not only to participate in the IMF-World Bank Spring meetings, but it came immediately after the budget was tabled. The announcement of the budget was critically important for the Government to show how it intends to stick to the IMF programme while honouring its election promises, which entail income tax relief for people earning up to $1.5 million annually.
Questions, however, remain about whether the Government can actually manage the IMF programme and keep the budget in check, because the last time the Jamaica Labour Party (JLP) was in office the targets of the then IMF programme were not met. This time around, credibility has to be proven, a fact that former Finance Minister Dr Peter Phillips and the Government of the People’s National Party know only too well as it took them two or three years to achieve credibility.
The next set of IMF tests, actually two tests rolled into one, will be in May/June. It is said that all indications are for the targets to be met. However, chicks should not be counted before they hatch. Until then, every action and pronouncement will be watched carefully.
The Government has to ensure that the programmes it intends to implement do not contribute to derailing the economic reform programme. We have no doubt that the Administration appreciates that fact and will act in the best interest of the country. After all, the JLP did not engage in such an intense election campaign in order to get power and then leave Jamaica adrift.
Until we have proof otherwise, we believe that the prime minister and his team are intent on making Jamaica a better place to live by implementing policies that will contribute to generating economic growth.
We expect that Mr Shaw and the team that went to Washington, DC made that very clear in all their meetings and that they used the opportunity to push the goals of the newly created Ministry of Economic Growth and Job Creation.
