AT CARICOM, IMF HEAD SAYS CARIBBEAN CHALLENGES LINKED TO GLOBAL ECONOMY

AT CARICOM, IMF HEAD SAYS CARIBBEANCHALLENGES LINKED TO GLOBAL ECONOMY

Prime Minister Golding And IMFDirector Strauss-Kahn Praise Renewed PartnershipWith Caribbean Community

Montego Bay, St. James, July 5, 2010 -- Jamaica'sPrime Minister Bruce Golding and International Monetary Fund Managing Director,Dominique Strauss-Kahn met today at the CARICOM summit at Rose Hall Resort inMontego Bay, Jamaica.  On the agenda forthe summit are matters of trade, economic and financial issues, the recovery ofHaiti post earthquake, human and social development, climate change and theenvironment, and the oil spill in the Gulf of Mexico. The regional issues theleaders are addressing are inextricably tied to broader global concerns.

Director Strauss-Kahn said that while the globaleconomic crisis  is not over, there is a positiveoutlook, saying "Caribbean countries have a chance to put an end to thenegative cycles of high debt and low growth...This is an opportunity to putpublic finances on a sustainable path and take measures to raise productivity."  Strauss-Kahn stressed his confidence inJamaica and commended Prime Minister Golding for the results achieved to dateunder the IMF program.

Prime Minister Golding acknowledged thatthe region faces significant challenges, and spoke of the vulnerabilities ofCaribbean countries.  "Our economies havebeen severely dislocated by the global recession." The Prime Minister welcomedthe additional resources provided by G20 countries through the IMF and othermultilateral agencies, but pointed out that the conditions for accessing thesefunds require deflationary fiscal and monetary policies that leave beneficiarycountries with no room to effectively address the development dimension of thefight against crime. Director Strauss-Kahn agreed that countries cannot be puton track without addressing the links between crime and the damage it does totheir economies.

Prime Minister Golding urged theinternational community to help countries like Jamaica to find more creativeways to deal with these challenges and urged that more incentives be providedto countries that manage their debt, and keep fiscal deficits down, but can'tmake the necessary investment in critical areas like education andinfrastructure. 

The 31st Meeting of theConference of Heads of Government of the Caribbean Community (CARICOM) istaking place from July 4-7, 2010 in Montego Bay, Jamaica. Heads of Governmentfrom CARICOM states and Associate Member states, and special guests are in attendance,including United Nations Secretary General Ban Ki-moon and the SecretaryGeneral of the Organization of American States, Jose Miguel Insulza.