Debt Relief Possible For Caribbean Countries

[mlr710]

Obama's promise of debt relief a $29b opportunity for Jamaica
published: Friday | June 27, 2008


Democratic presidential candidate, Senator Barack Obama, is promising 100 per cent debt relief for the Caribbean if he becomes the next leader of the United States.

That would translate for Jamaica into a $29 billion write-off in central government debt to the US, a small portion of the near $500 billion of foreign debt the island is carrying, Jamaica's finance ministry figures show.

Policy to be pursued

While Obama himself did not reveal that plan for the region, his foreign policy adviser, Dan Restrepo, told the Government and tourism officials attending the Caribbean Tourism Organisation conference here that this is one of the policies to be pursued by Obama if elected to office.

"As you all well know, the poorest countries in the world, including some in the Caribbean, suffer under the weight of enormous external debt. Barack Obama wants to see a 100 per cent debt cancellation for the world's heavily indebted poor countries, including all such countries in the Caribbean," he said.

Jamaica's debt

The USAID is a a major conduit of US financing to overseas countries and groups.

Jamaica's breakout of its US debt shows that it owes the agency $5.6 billion.

The country is more heavily indebted to the US Department of Agriculture which it owes $7.7 billion and the Federal Financing Bank, which holds $14.6 billion of the country's US debt.

Restrepo also spoke about Obama's intention to facilitate trade between the US and Cuba, saying that the Democrat would personally lead direct diplomacy with Cuban officials.

He said the presidential hopeful also understood the unique security challenges of the Caribbean and that the issue of trans-national crime was of great importance to the region.

He has, therefore, promised to restore funding for drug control programmes that were cut by the George W. Bush administration and to put an end to the illegal gun trade in the south.

[mlr710]

SKNVibes.com News: Obama and the Caribbean: more of the same or a new day?

BASSETERRE, St. Kitts-PRESUMED United States Democratic presidential nominee Barack Obama is being watched very closely by policy makers in the Caribbean, not only because he would be the first black president for the global superpower, but because he has stated that he represents a “change” in relations between the region and the U.S.

In a recent interview, Dr. the Hon. Timothy Harris, St. Kitts Minister with responsibility for Foreign Affairs and International Trade, said he was hopeful that the November elections would usher in a new era for Caribbean-U.S. relations.

“We want to have a serious discourse with America and its new president. We have real issues that are affecting us and the U.S. has not always been sensitive, indeed sensible, in dealing with some of these challenges.

“[The Caribbean] is inexorably bound to the success of the USA,” he added.

Obama’s camp seemed to recognize the importance of America’s ‘third border’ when they announced on June 27th that their policies, if elected would pay more heed to the Caribbean.

Dan Restrepo, a Foreign Policy Advisor for the Obama camp, said that, “Obama wants to see a 100 per cent debt cancellation for the world's heavily indebted poor countries, including all such countries in the Caribbean.”

Restrepo added that the issues of crime and security were of major concern for the Democrat. It was promised in a conference with the associated press that if Obama were to be elected, he would “restore funding for drug control programmes that were cut by the George W. Bush administration and to put an end to the illegal gun trade in the south.”

Harris stated that the U.S. must not only look at gun trade, but also the issue of criminal deportees, as they are “responsible for a significant part of the crime wave in Caribbean countries such as Jamaica and Guyana.”

He recommended that the U.S. has the capacity to set up centers for dealing with deportees and should do so, rather than just leave the Caribbean to deal with unwanted hardened criminals.

One issue the Obama camp has failed to address is the Caribbean is the ‘Brain Drain’ that is grossly effecting smaller nations like St. Kitts & Nevis.

“We can’t stop people from moving, mobility ought to be encouraged, but we are saying that the movement of trained personnel has in fact been a back pedal,” said Harris. “More than 50% of all Caribbean trained doctors are working in the U.S. and nothing is being left for us.”

The minister said that one solution his ministry has come up with is for the United States to establish more scholarship programs so the “training pool is wider” and more persons will eventually filter back into the Caribbean employment sector.

While there is much debate on the role the Caribbean plays in American policy, top analysts are in agreement about one thing; the needs of the Caribbean must be aggressively pursued if the region is to overcome its current criminal and economic crises.

[DBlack]

Obama's an idiot.

Wholesale debt reduction of a nation means the U.S. Dollar will be further reduced in value. Lesson 1.

Obama's global attitude of open borders, especially between poorer nations into this country will undermine the quality of living here, lower wages and job availability to U.S. citizens. Particular those living in poorer neighborhoods like blacks, latinos, etc...

These are some of the same policies of the Bush Administration. Perhaps Obama is the 3rd term of Bush?!?!

A quick course in Economics 101 would show anyone that this is bad for lower income black america.

[mlr710]

Actually no...it costs more maintaining the debt as opposed to cancelling it altogether which is why the World Bank has been recommending forgiving at least portions of it for years on behalf of the poorest countries, and now even has position papers on forgiving these debts completely.

[Juice.]

I seriously doubt that he will remain true to this policy if he gets elected president. But I very much agree with it.

The only country at the G8 Summit which was opposed to wiping African debt was America. America plunders most of its goods from Africa and the developing world, so at the very least we could wipe some of the debt they "owe".

But what these countries consider as a big debt, is far surpassed by the US deficit which is at its all time high. It's not about how much you owe, it's about when and how and if you must pay it back. Developing countries, through policies of the IMF and World Bank, don't have the same loan possibilities; wholly because the biggest shareholder in the IMF and World Bank is the US (and the Constitution of those two institutions runs in a way condusive to the main shareholder). If it wasn't for the West's actions, the developing countries would be developed. They were plundered by the West. Colonized then released into poverty.

One of the first pro-Black moves I've seen on Obama's part. I'm surprised.

Oh wait...

While Obama himself did not reveal that plan for the region

No wonder. If he announced this himself, it would undermine his current objective which is to prove to white people that he does not give a damn about Black people. What a shame.