The main problem is that the public, around the world, still thinks that the developed countries built major international financial & trade organizations, like IMF (International Monetary Fund), World Bank, & WTO (World Trade Organization) to help in the development of developing countries of Africa, Asia, & Latin America. That is so not the case.
Actually, these organizations were made to make it seem like transferring money from developed countries to developing countries, in the name of a good cause, & of course, making it look like the developed countries are contributing their fair share to make the world a better place. But this is not the case. IMF & World Bank do transfer money to developing countries but with such restrictive terms & conditions that the organizations who are supposed to work in the field with those loans etc. have their hands tied behind their backs. Interest payments on those funds are also astronomical due to several factors; political volatility, civil unrest, lack of proper governance, corruption, market volatility etc.
But, then, why do IMF & World Bank hand billions of $$$ to corrupt officials in developing countries, who are well-known corrupt, thanks to organizations like Transparency International (I have a problem with them, too, but that's for another place & time)? First, these international financial organizations hand over billions to corrupt officials without any questions asked, & when those officials are pushed out of the government, & people want a change for the better, that same poor public is hit with economic sanctions (which further raises interest rates on those billions of loans) & are asked to pay back those loans (which were given to well-known corrupt officials) through hard austere budgets. WTO also works in tandem with these organizations by directly / indirectly advocating for trade barriers, which help the incumbents (developed countries) expand their economic might all over the world while keeping the economies of the developing countries tied up in knots from which they can never try to get out or severely change their economic system.
Of course, in such dire economic times, like we are currently seeing in Greece, the public starts to filter out of the country to seemingly better prospects in terms of life, economy, jobs, education etc. Those economic migrants are then hired as general labourers in developed countries, which provided those loans in the first place. With no / scarce jobs & educated people out of the country, that developing country has its back against the wall, with hands & feet tied behind its back. The public which is left behind in the country are financially constrained to grow the economy, which in itself, running on a very austere budget, & government can't pour money in the economy because of austerity, & hence, crime, civil unrest, corruption, political & market volatilities rear their ugly heads, which in turn, require the country to always essentially have its hand out for more loans & funds. Hence, the developing countries are always stuck in the mud, so to say, & can never seem to get out of it to become a developed country.
So, who really benefits with these international organizations? Developed countries. They get their interests on those loans. They get cheap & educated labour from these developing countries. Their companies have the world to expand their markets & export all over the world, which in turn, helps keep the trade balances & monetary value of their currencies in a healthy shape. All the while, the developing countries stay in the "developing" pool & get the blame for not being able to ever develop itself.
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Jamaica is a small country full of clever, intelligent people who are being poorly served by the world that historically shaped it. Remarkably, this painful past has somehow led to an ability for it to punch far above its weight.
In February 2015 I had the opportunity to experience first hand the mood & feeling of the people by walking Jamaica from east to west accompanied by 10 local people on the One-Love One-Step walk. We hiked from Morant Point to Negril, through the most neglected parishes over the mountains & into farming communities. This is a country full of stories & folklore & to understand the people, it is critical to listen to them.
The focus of the walk was to highlight the local issues surrounding climate change & to feel the pulse of people’s lives. We interviewed & filmed over a hundred Jamaicans talking about how they feel & what their expectations are for their future & those of their children. The only word I can distil to share with you is hopelessness. It is endemic & it is corroding the heart of this nation.
The economy is built on the extraction of natural resources, sugar, bauxite, people. Most of the money earned from tourism leaves the island & a modern-day exodus is killing the country, a classic brain drain towards the provision of a low-cost labour force of farm workers & chambermaids in the US & Canada, working on temporary visas doing the jobs no one else wants to do.
Now in the third year of an IMF-backed economic programme, Jamaica is running the most austere budget in the world, with a primary surplus of 7.5%. Even Greece, which is facing a tense standoff with the IMF & European authorities over its debt, is only expected to run a primary surplus of 3% of GDP this year & 4.5% for years thereafter – & this is widely considered to be politically unsustainable.
I have seen millions of dollars wasted in Jamaica & across the Caribbean, I have also seen this happen in India when I was working there developing primary healthcare opportunities. In my experience, much of the waste is not caused by local bodies but by the organisations that provide the funding. They inadvertently wrap local people up in red tape, creating unrealistic outputs based on feeding their own need to hit internal & international targets.
Again & again I have seen fantastic local people frustrated by a system that is not designed to fit them, that is not built on their story but some self-serving development corporation that purveys a one-size-fits-all approach. These agencies then blame local people & organisations for failure. An example is the coffee industry, focused only on Blue Mountain (BM) coffee which received investment & development, both internal & external, & has led to the desertification of many small coffee farms throughout Jamaica – 80% of all BM coffee is sold to one major Japanese customer.
There is a slow re-introduction of freshwater Tilapia farming & Cassava processing plants but they are built on crumbling & undeveloped sites because of the tragic mismanagement of the Financial Sector Adjustment Company (Finsac) & the last big hurricane to hit the island. Development money in these sectors rarely reaches the small farmer. This has led to increasing the crime & praedial larceny rates (the theft or agricultural produce or livestock).
The time has come for a slow development movement, built on the stories & realities of local people. Last year I commissioned Uncovering Authentic Jamaica, a piece of social research, to better understand the Jamaican people & their development needs.
“People are our greatest asset. But they want to get out,” said one hotelier at Treasure Beach tourist trap. We discovered many tangible opportunities, most of which existing development agencies ignore or do not understand as they do not fit the standard model. For example, only focusing on women’s development doesn’t fit a country like Jamaica where the young men are falling woefully behind the women both in job opportunity & educational attainment. Much is left un-researched in Jamaica because it is a proud country full of patriotic people & Brand Jamaica has to be maintained.
There are good things happening & Jamaicans do have an indomitable spirit. A group of young men are changing their world & creating an eco village in the middle of Kingston & organisations such as Farm-up Jamaica are ringing slow but steady change.
As all good gardeners know, it is best to water a tree at the drip line, the area under the outer circumference of the branches. This is where the tiny rootlets are located that take up water for the tree. Trees should be watered here, not at the base or they may develop root rot. Applying this thinking to development would consider how interventions are initiated at the right place at the right time. Present intervention often has a scatter-gun approach. There is a lack of robust, focused & brave investment.
If we apply “drip line” thinking to emerging economies, then we identify exactly where key interventions should be applied. Support this with an impactful business development model, increasing value chain share, & thinking beyond fair-trade, we could create a pivotal change.
The future is bright, but only if we work bravely to restructure debt interest payments & find a better solution for Jamaica than crushing austerity, declining living standards & growing hopelessness.
Dee Kyne is a social entrepreneur & environmentalist working to end ecocide.
Actually, these organizations were made to make it seem like transferring money from developed countries to developing countries, in the name of a good cause, & of course, making it look like the developed countries are contributing their fair share to make the world a better place. But this is not the case. IMF & World Bank do transfer money to developing countries but with such restrictive terms & conditions that the organizations who are supposed to work in the field with those loans etc. have their hands tied behind their backs. Interest payments on those funds are also astronomical due to several factors; political volatility, civil unrest, lack of proper governance, corruption, market volatility etc.
But, then, why do IMF & World Bank hand billions of $$$ to corrupt officials in developing countries, who are well-known corrupt, thanks to organizations like Transparency International (I have a problem with them, too, but that's for another place & time)? First, these international financial organizations hand over billions to corrupt officials without any questions asked, & when those officials are pushed out of the government, & people want a change for the better, that same poor public is hit with economic sanctions (which further raises interest rates on those billions of loans) & are asked to pay back those loans (which were given to well-known corrupt officials) through hard austere budgets. WTO also works in tandem with these organizations by directly / indirectly advocating for trade barriers, which help the incumbents (developed countries) expand their economic might all over the world while keeping the economies of the developing countries tied up in knots from which they can never try to get out or severely change their economic system.
Of course, in such dire economic times, like we are currently seeing in Greece, the public starts to filter out of the country to seemingly better prospects in terms of life, economy, jobs, education etc. Those economic migrants are then hired as general labourers in developed countries, which provided those loans in the first place. With no / scarce jobs & educated people out of the country, that developing country has its back against the wall, with hands & feet tied behind its back. The public which is left behind in the country are financially constrained to grow the economy, which in itself, running on a very austere budget, & government can't pour money in the economy because of austerity, & hence, crime, civil unrest, corruption, political & market volatilities rear their ugly heads, which in turn, require the country to always essentially have its hand out for more loans & funds. Hence, the developing countries are always stuck in the mud, so to say, & can never seem to get out of it to become a developed country.
So, who really benefits with these international organizations? Developed countries. They get their interests on those loans. They get cheap & educated labour from these developing countries. Their companies have the world to expand their markets & export all over the world, which in turn, helps keep the trade balances & monetary value of their currencies in a healthy shape. All the while, the developing countries stay in the "developing" pool & get the blame for not being able to ever develop itself.
---------------------------------------------------------------------------------
Jamaica is a small country full of clever, intelligent people who are being poorly served by the world that historically shaped it. Remarkably, this painful past has somehow led to an ability for it to punch far above its weight.
In February 2015 I had the opportunity to experience first hand the mood & feeling of the people by walking Jamaica from east to west accompanied by 10 local people on the One-Love One-Step walk. We hiked from Morant Point to Negril, through the most neglected parishes over the mountains & into farming communities. This is a country full of stories & folklore & to understand the people, it is critical to listen to them.
The focus of the walk was to highlight the local issues surrounding climate change & to feel the pulse of people’s lives. We interviewed & filmed over a hundred Jamaicans talking about how they feel & what their expectations are for their future & those of their children. The only word I can distil to share with you is hopelessness. It is endemic & it is corroding the heart of this nation.
The economy is built on the extraction of natural resources, sugar, bauxite, people. Most of the money earned from tourism leaves the island & a modern-day exodus is killing the country, a classic brain drain towards the provision of a low-cost labour force of farm workers & chambermaids in the US & Canada, working on temporary visas doing the jobs no one else wants to do.
Now in the third year of an IMF-backed economic programme, Jamaica is running the most austere budget in the world, with a primary surplus of 7.5%. Even Greece, which is facing a tense standoff with the IMF & European authorities over its debt, is only expected to run a primary surplus of 3% of GDP this year & 4.5% for years thereafter – & this is widely considered to be politically unsustainable.
I have seen millions of dollars wasted in Jamaica & across the Caribbean, I have also seen this happen in India when I was working there developing primary healthcare opportunities. In my experience, much of the waste is not caused by local bodies but by the organisations that provide the funding. They inadvertently wrap local people up in red tape, creating unrealistic outputs based on feeding their own need to hit internal & international targets.
Again & again I have seen fantastic local people frustrated by a system that is not designed to fit them, that is not built on their story but some self-serving development corporation that purveys a one-size-fits-all approach. These agencies then blame local people & organisations for failure. An example is the coffee industry, focused only on Blue Mountain (BM) coffee which received investment & development, both internal & external, & has led to the desertification of many small coffee farms throughout Jamaica – 80% of all BM coffee is sold to one major Japanese customer.
There is a slow re-introduction of freshwater Tilapia farming & Cassava processing plants but they are built on crumbling & undeveloped sites because of the tragic mismanagement of the Financial Sector Adjustment Company (Finsac) & the last big hurricane to hit the island. Development money in these sectors rarely reaches the small farmer. This has led to increasing the crime & praedial larceny rates (the theft or agricultural produce or livestock).
The time has come for a slow development movement, built on the stories & realities of local people. Last year I commissioned Uncovering Authentic Jamaica, a piece of social research, to better understand the Jamaican people & their development needs.
“People are our greatest asset. But they want to get out,” said one hotelier at Treasure Beach tourist trap. We discovered many tangible opportunities, most of which existing development agencies ignore or do not understand as they do not fit the standard model. For example, only focusing on women’s development doesn’t fit a country like Jamaica where the young men are falling woefully behind the women both in job opportunity & educational attainment. Much is left un-researched in Jamaica because it is a proud country full of patriotic people & Brand Jamaica has to be maintained.
There are good things happening & Jamaicans do have an indomitable spirit. A group of young men are changing their world & creating an eco village in the middle of Kingston & organisations such as Farm-up Jamaica are ringing slow but steady change.
As all good gardeners know, it is best to water a tree at the drip line, the area under the outer circumference of the branches. This is where the tiny rootlets are located that take up water for the tree. Trees should be watered here, not at the base or they may develop root rot. Applying this thinking to development would consider how interventions are initiated at the right place at the right time. Present intervention often has a scatter-gun approach. There is a lack of robust, focused & brave investment.
If we apply “drip line” thinking to emerging economies, then we identify exactly where key interventions should be applied. Support this with an impactful business development model, increasing value chain share, & thinking beyond fair-trade, we could create a pivotal change.
The future is bright, but only if we work bravely to restructure debt interest payments & find a better solution for Jamaica than crushing austerity, declining living standards & growing hopelessness.
Dee Kyne is a social entrepreneur & environmentalist working to end ecocide.
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