Imf Review of the Bank of Jamaica
Essay by Shanya Knox • November 10, 2017 • Lab Report • 346 Words (2 Pages) • 1,050 Views
Shanya Knox
20122595
In the caption : “IMF says the public sector reforms needs urgent attention”, posted in the Jamaica Observer on Sunday September 17, 2017 outlines the IMF review of Jamaica which place great emphasis on the need to reduce the size of the public sector in order to achieve IMF target and economic growth.
Uma Ramakrishanan, a member of the IMF delegation outlined that the oversize public sector employment as lead to Jamaica’s inefficiency economy. She elucidate on the fact that money spent in paying special benefits, compensation and wage increase for government staff could be allocated in different areas of the economy to aid in achieving substantial growth. The IMF team also admits that despite obstacles faced by the economy Jamaica was still able to achieve remarkable performance in different sector of the economy.
The IMF team conclude their review by commending the Bank of Jamaica on the measures imposed to stabilize the exchange rate and increase the reserve of foreign currency. Subsequently Miss Ramakrishanan reiterate the fact that once approval has been granted Jamaica will be able to access a total of USD$ 790 Million from the International Monetary Fund.
In the United Kingdom in 2012 it was reported that the government cut senior positions within the "top-heavy" military by a quarter which projected to save the country £3.8m a year. Based on the recommendation by the IMF if Jamaica was to follow suits as the United Kingdom then significant economic growth could be achieved. I believe a down sized in the public sector and privatization of some services offered by the government will increase growth as this will facilitates new and expansion of small and medium sized business in Jamaica. In a statement made by the Most Hon. Prime Minister Andrew Holness he referred to those businesses as the “Bedrock of Jamaica economy”. On that note economic growth will be inevitable as more funds will be allocated in struggling sectors of the economy such as Agriculture and an expansion of the private sector which plays a vital role in Jamaica.
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