THE SPEECH

A pleasant day to the panelists, I am Ashliana Spence and today I will be presentiFutureng on

“The Impact of the IMF on Jamaica’s ”.

I have selected this topic because personally I have felt the negative impact of the IMF deal on

our Jamaican economy which has sparked some sort of concern to me. This drastic change has

caused the unfortunate to live in a more washdepriving state of destitution and the highly

favoured are usually rewarded with greater fortune. Jamaica is gradually becoming a sanctuary

for the rich due to the expensive prices that have taken a toll on both the lower and middle

classes in the society. I am a student of business therefore the country’s economy should be of

importance to me. Without doubt, it is evident that the IMF deal may cause great alteration to

the island’s business climate. Businesses are the money makers of a country if there is constant

brain drain then there will be less clientele thus, the propelling of business investors. My main

goal is to research more about the IMF and hear what different views have to say about it to find

possible solutions.

To properly explore this topic, I had selected three sources: Two primary sources inclusive of an

interview and questionnaire and a secondary source which I used as an article. The interview was

featured with a worker of Ministry of Finance, Mrs. Kadian Farquharson, who had kindly agreed

to participate in the interview conducted on December 18, 2018. Online questionnaires were

issued out to people of the legal working age who would most likely have knowledge about the

IMF and lastly, a sourced article from CitiBlog.

The article from CitiBlog entitled “The IMF and The Destruction of the Jamaican Economy”

released on January 11, 2016 by B. Joel reflects IMF’s partnership with Jamaica and how it has

impacted the country. The questionnaire comprised of sixteen (16) questions: with nine (9) close

ended questions, five (5) open-ended questions and two (2) with a mixture of both. Questions

1-3 contained questions about the respondents’ biographical data. Questions 4-7 were to test the

knowledge of the respondents about the IMF and what they gained from its presence. Questions

8-11 focused on the after effects of the deal and how the debt has impacted Jamaica negatively.

Whilst, from questions 12-16 it was concerned with the business climate and if fellow Jamaicans

would stay patriotic despite the economic factors. In the interview I gathered 5 questions that

required lengthy responses. For the article however, it was difficult for me to find one that was

credible or more suited to my research. As for the questionnaire, it was thought-provoking

trying to create questions that were understandable, clear and short so that it wouldn’t be a

time-consuming for the respondents. On the other hand, I found the interview to be the most

challenging. I struggled in creating properly formulated questions to ensure my questions were

sensible and distinct to avoid confusion so that the interviewee could provide rational in-depth

answers. I also met upon difficulties trying to schedule the interviewee because her job required

a lot of her time so it took a while for me to indicate a suitable date for her, nonetheless, it was

conducted but it had to be timely and quick.

The CitiBlog article entitled “The IMF and The Destruction of the Jamaican Economy”

published by B. Joel addressed the factors that influenced Jamaica’s agreement with the IMF and

the impact it made after the repercussions. The article stated that the due to the oil crisis in the

early seventies it resulted in the increase of imported goods and the decrease of exported goods.
This had caused the country a great debt which forged the former Prime Minister to lodge the

agreement. Though it was necessary at that time it was more consequential to the fragility of the

country’s economy. In order to pay back the debt, the IMF required the country to cut spending

on education, health, food and transportation companies and to also devalue the national

currency. It has left Jamaica in a dire state for decades and the country is still dependent on it till

this day.

During the interview, Mrs. Kadian Farquharson, spoke about the role of the IMF in supporting

the country’s economy, the country’s priorities, new initiatives and policies underway to raise

growth and create jobs. Mrs. Farquharson says the IMF has an abundance of experience gathered

by working with diverse countries so they bring to the table the technical knowledge, skills,

advice and most importantly financial resources. She mentions the unemployment rate still at

high and the need to ensure jobs come with growth. She proceeds by saying that most jobs are in

agriculture and business. Therefore, the interest is aimed at those sectors so they will start

investing in water storage, distribution systems and irrigation. She informs me that the business

sector can employ over 30,000 persons but they’ll need to be trained correctly and accordingly

first. Mrs. Farquharson says in an attempt to improve the business climate the government has

now made it easier for business owners to procure licenses and to obtain permits. She stated that

Jamaica has made tremendous progress in stabilizing the economy as inflation is at historical

lows, net international reserves have nearly tripled and public debt has been placed on a solid

downward path. She says with the economic progress Jamaica no longer needs the IMF for

financial support given the country has regained access to domestic and international capital

markets. Therefore, this new precautionary IMF loan supports the government’s growth and
employment-focused reform agenda by providing an insurance against unanticipated events such

as natural disasters.

From the questionnaire all the respondents knew about the IMF deal though 60% thought that the

IMF was ineffective. They stated they wanted to see improvements in inflation, employment and

better wages especially in infrastructural, logistics, business, judiciary and health systems. They

criticized the government for not utilizing the opportunities given to them by the IMF. All the

respondents went against the motive of borrowing because they saw it as bad investment and

claims it will affect future generations. 86% of the respondents agreed that Jamaica is not

necessarily the best place to start a business but they’d still invest in their island though 30%

aren’t planning on living here long term. On the other hand, 40% of the respondents remained

optimistic that Jamaica will eventually pass the worst and have a productive future.

I’m of full assurance that the article is reliable because it gives reference to trusted cites from

which it pooled some information such as the Jamaica Gleaner, the Jamaica Observer and an

interview from Michael Manley to strengthen its validity.

As for the questionnaire, it might not be fully reliable because of each person’s individuality.

Some may have logical responses while some may have irrational responses. A fraction may not

even know about the deal as in depth as they think they do and misinterpret some of the

questions automatically. I gave my questionnaires out to about 35 persons and just only 30

complied which could have resulted in an inaccurate conclusion. It is also possible the

respondents rushed the answers so they could merely get over with the questionnaire.
The interview is the most valid and reliable of them all especially because it was something I did.

I came face to face with the interviewee and was able to read, listen and see everything in my

environment. I was also granted the opportunity to ask questions outside of the interview

questions to clarify my knowledge about IMF in terms I would understand.

In conclusion, I had a fair amount of valid and reliable information and as a result I could

honestly use it and say that though many people might not have seen any improvements in the

country I think it is because of their ignorance towards their government. The changes by the

IMF deal might not have been evident but after my research I realized things are changing

gradually, however, there’s a whole lot of room for improvement. My only advice to Jamaican

citizens is to learn to support each other more.