The co-Executive Director of the Caribbean Policy and Research Institute, CAPRI, Dr. Christopher Tufton, is warning that some Jamaican businesses are likely to fail under the current IMF programme.
Speaking last night at a meeting of the Rotary Club of East Kingston and Port Royal, Dr. Tufton likened some of the measures under the programme to shock therapy and amputation.
We have more in this report from Kalilah Enriquez.
[Cart No: <Carts>KALILAH WRAP ( TUFTON ON IMF PROGRAM ) JULY 15,2014.mp3
Time: 147s
Out-cue: ]
————————–
Dr. Tufton is rejecting the wholesale condemnation of the IMF programme, noting that the government had to renew its relationship with the multilateral lender.
But the former Industry and Investments Minister says he has a problem with how the programme is being implemented.
He says there’s a disconnect between the programme targets and the realities facing the people on the ground.
Dr. Tufton says the government cannot appear insensitive to the challenges that people and businesses are facing.
Nor can it add to their burdens.
Of particular concern to Dr. Tufton, is the government’s recent change in tax policy, requiring an up front payment from manufacturers for raw materials.
This means businesses now have to find significant lines of financing in order to clear their imported production inputs.
Dr. Tufton says government must allow companies to either expand or fail based on their ability to compete.
He says companies must be allowed to innovate, rather than be stifled by an unjust burden.
Meanwhile, Dr. Tufton is also advocating for the privatization of some government functions, including the school feeding programme and examination depots.
Dr. Chris Tufton, co-Executive Director of CAPRI, addressing Rotary Club meeting in Kingston last evening.
