|
|
Volume No. 1 Issue No. 39 - Sunday March 16, 2003 |
Dominica's Economy on Brink of Collapse by Thomson Fontaine
Division Chief for the Caribbean Region at the International Monetary Fund (IMF), Jorge Guzman, revealed at a Friday press conference that the Dominican economy is on the brink of collapse. The IMF official was speaking in Roseau as the IMF wrapped up a one-week review of Dominica's economic stabilization and adjustment program that began last July.
Guzman revealed that Dominica�s economy had deteriorated to the point where much stronger measures had to be put in place urgently to remedy the situation. He indicated that the measures imposed last year were simply not enough to pull Dominica from its economic decline.
The government of Dominica imposed a four percent levy on public and private sector workers as part of those measures but failed to take more drastic action such as reducing on the size of the public service as was suggested by the Eastern Caribbean Central Bank (ECCB) and the Caribbean Development Bank (CDB).
According to Guzman, the financial assistance given to Dominica by the IMF and some CARICOM countries had run out and there was no money not even to guarantee that wages would be paid during the coming months.
The IMF official urged the Charles administration to remedy the situation before it becomes a full-blown national crisis. He said it was important that the government took the right measures to prevent a worsening of the social and political conditions along with the crumbling economy.
The Dominican Prime Minister Pierre Charles, fresh from heart surgery in Trinidad said that his administration did not do enough to get a satisfactory grade from the IMF. He also indicated that more bitter medicine would have to be taken for the country to get back on track with its recovery program.
In a passionate appeal to the Dominican public, Charles, who is also the finance minister, pleaded with his fellow fellow citizens to put their country's interest ahead of their political leanings. He added that the country is hurting and now is not the time for division. Charles also pledged to get the economy back on its feet.
It has widely been acknowledged that the public sector in Dominica is too large employing close to 40% of the labor force, and sucking up a whooping 53% of government�s revenues. The Prime Minister resisted reducing the public service because of the devastating effect he felt this would have on the populace.
In its most recent attempt to retrench 150 workers from the ministry of agriculture, and reduce public sector wages by six percent, the powerful Public Service Union (PSU) staged an eight-day protest strike action, and vowed not to endorse government�s proposal.
With government now having no choice but to make the tough decisions, the stage appears set for a showdown between the union and government, even as the fate of the country hangs in the balance.
|
|
|