Close examination of the current "stand-off" in the relationship between Jamaica and...

Close examination of the current "stand-off" in the relationship between Jamaica and the IMF shows that at the heart of our current predicament is the continued mismanagement of the country’s economic affairs by the Government and the Minister, especially in relation to structural economic reforms, which are central to the Agreement, which have not been implemented in the prescribed time: 1. For example, there has been the continuing violation by the Government of its commitment under Fund Programme to cease granting discretionary waivers of taxes. This is a particularly significant violation given the shortfalls in budgeted revenue collection. 2. Similarly, the delays in proceeding with Public Sector Transformation represent a further breach of commitments under the IMF programme. 3. The Government has continued its dithering on the implementation of comprehensive tax reforms. 4. The delay in implementing public sector pension reforms months after the World Bank Report on this issue has been completed is also particularly telling since this represents a major and growing part of the cost of government’s operations.