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Volume No. 1 Issue No. 21 - Friday, May 17, 2002 |
Dominica Faces Structural Adjustment
PM Charles Expresses Personal Anguish
by: Thomson
Fontaine
In
what he described as "a defining moment in the development of
our small country" Prime Minister Pierre Charles in a radio and
television address to the Nation outlined the fiscal stabilization
and adjustment program that is being negotiated with the International
Monetary Fund (IMF).
The Prime Minister indicated that the program
is intended to stabilize the public finances, and to achieve growth.
According to PM Charles, "the Government has laid out a clear strategy
for economic recovery" and was counting on the support of all Dominicans
in helping to build an economy that is strong, productive and viable.
The address to the Nation came weeks after continued speculation in the local press
that the government of Dominica had agreed to the laying
off of 10 % of its workforce (approximately 300 persons), a 10% reduction in
salaries of public workers, and instituting a freeze on the hiring of new employees.
In his statement, the prime minister indicated that "government certainly
does not want to implement such measures, and it is carefully looking at alternative
measures". He went on to say that "if we do have to cut back on staffing levels and
reduce wages and salaries, that we would end up doing these by less than the suggested
10%.
More to the point, we are hoping that we will not have to reduce salaries
and wages at all". The prime minister also indicated that it was a cause of great
personal anguish for him when his government is unable to meet its monthly obligations
in paying public servants and in providing public assistance.
The prime minister was critical of the many persons who were using the current economic
situation as a means of scoring "cheap political points". He was of the opinion that this
was a problem for all Dominicans and not just government and it was important that Dominicans
who loved their country play their part.
In explaining the reasons for the current
situation in Dominica, the prime minister pointed to the sharp increase in borrowing at rates
of 9-10% by the former administration, globalization, the events of September 11,
blacklisting by the Financial Action Task Force (FATP), low manufacturing output and the
demise of the banana industry as contributing to the current state of affairs.
In attempting to confront the problem, the government has set up a broad based Economic
Stabilisation Consultative Group that includes the unions, private sector, religious groups
and other elements of non-governmental society and chaired by the Director General of
Finance and Planning, Swinburne Lestrade. The group will engage in discussion with the
government on the way forward.
The Government is in the process of agreeing on a
specific package of measures with the international community that will constitute the
country's contract of recovery, and on the basis of which, international resources will
be available to support Dominica's efforts. Currently, a team from the International
Monetary Fund is in Dominica negotiating on the package of measures.
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