Dear Editor,
The policies of the People's National Party in the 1990s destroyed the industrial base of the country and this resulted in the collapse of over 40,000 businesses, along with the migration of multinational corporations like Colgate-Palmolive.
Moreover, Finsac's debt accounted for over 40 per cent of GDP, and although the present Administration will never accept responsibility for the collapse of the financial sector, the data suggest otherwise.
For example, the then Administration liberalised the foreign exchange market without having adequate foreign exchange reserves to support this ill-advised decision; this created severe distortions within the market. Therefafter the Government resorted to buying US dollars in an attempt to build hard currency reserves. Being a weak economy, the market could not sustain such large inflows. This situation led to a growth in the supply of money, thereby creating inflation.
For example, the then Administration liberalised the foreign exchange market without having adequate foreign exchange reserves to support this ill-advised decision; this created severe distortions within the market. Therefafter the Government resorted to buying US dollars in an attempt to build hard currency reserves. Being a weak economy, the market could not sustain such large inflows. This situation led to a growth in the supply of money, thereby creating inflation.
Furthermore, the floating exchange system was poorly managed and the rapid depreciation of the dollar began in 1991. By the end of 1991 the dollar had depreciated by 79 per cent resulting in higher inflation and interest rates. The inflation rate for 1991 was 80.2 per cent, and by 1993 interest rates were over 90 per cent; businesses could only collapse in this environment. Despite all this, prominent members of this Administration have declared that their party had nothing to do with the demise of the financial sector.
It is quite ironic that this Administration claims to love the poor, but funding to the Finsac Commission has been reduced, and no one is being pressured to deliver the report. The Finsac Association of Entrepreneurs has been imploring the Government to pay greater attention to the issue, but the present Administration continues to treat the matter with scant regard. It can be concluded that the ruling party is not interested in the report, because it will expose them.
Portia Simpson Miller has accused the former Administration of being wicked and uncaring, but based on the Finsac issue, it is apt to say that the PNP is not only cruel, but also irresponsible. The PNP should deal with the FINSAC debacle in a transparent manner in order to prove that the party's mantra is not an empty political rhetoric.
Lipton Matthews
lo_matthews@yahoo.com
Don't forget the Finsac'd
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The policies of the People's National Party in the 1990s destroyed the industrial base of the country and this resulted in the collapse of over 40,000 businesses, along with the migration of multinational corporations like Colgate-Palmolive.
Moreover, Finsac's debt accounted for over 40 per cent of GDP, and although the present Administration will never accept responsibility for the collapse of the financial sector, the data suggest otherwise.
For example, the then Administration liberalised the foreign exchange market without having adequate foreign exchange reserves to support this ill-advised decision; this created severe distortions within the market. Therefafter the Government resorted to buying US dollars in an attempt to build hard currency reserves. Being a weak economy, the market could not sustain such large inflows. This situation led to a growth in the supply of money, thereby creating inflation.
For example, the then Administration liberalised the foreign exchange market without having adequate foreign exchange reserves to support this ill-advised decision; this created severe distortions within the market. Therefafter the Government resorted to buying US dollars in an attempt to build hard currency reserves. Being a weak economy, the market could not sustain such large inflows. This situation led to a growth in the supply of money, thereby creating inflation.
Furthermore, the floating exchange system was poorly managed and the rapid depreciation of the dollar began in 1991. By the end of 1991 the dollar had depreciated by 79 per cent resulting in higher inflation and interest rates. The inflation rate for 1991 was 80.2 per cent, and by 1993 interest rates were over 90 per cent; businesses could only collapse in this environment. Despite all this, prominent members of this Administration have declared that their party had nothing to do with the demise of the financial sector.
It is quite ironic that this Administration claims to love the poor, but funding to the Finsac Commission has been reduced, and no one is being pressured to deliver the report. The Finsac Association of Entrepreneurs has been imploring the Government to pay greater attention to the issue, but the present Administration continues to treat the matter with scant regard. It can be concluded that the ruling party is not interested in the report, because it will expose them.
Portia Simpson Miller has accused the former Administration of being wicked and uncaring, but based on the Finsac issue, it is apt to say that the PNP is not only cruel, but also irresponsible. The PNP should deal with the FINSAC debacle in a transparent manner in order to prove that the party's mantra is not an empty political rhetoric.
Lipton Matthews
lo_matthews@yahoo.com
Don't forget the Finsac'd
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