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What's the IMF got to do with it? Cricket and the Caribbean economy Wisden CricInfo staff - January 1, 1999
IN 1989, Michael Manley marked his return as Jamaica's prime minister by proclaiming his fondness for American football. For Manley, the author of a lengthy history of West Indies cricket, his new-found passion reflected a desire to build relations with the US and western financial institutions such as the World Bank and the International Monetary Fund. This switch in emphasis, from a man who once spoke of taking capitalism apart `brick by brick', highlighted the political and economic shift that has shaped this generation of West Indian cricketers. The socially oriented rhetoric of left-wing leaders such as Manley and Cheddi Jagan, former premier of Guyana, has been largely replaced by a bankers' orthodoxy of public spending cuts, free trade and the aggressive pursuit of economic growth. Jamaica, Guyana and Trinidad & Tobago have all introduced IMF-inspired economic reforms in return for loans from overseas institutions. All three nations have been under pressure to make large annual payments, restricting the money available for health and education. Their problems are rooted in the colonial era, which left their economies heavily dependent on crops and other commodities such as aluminium, gold and oil. The revenues from sales of these products are volatile and unpredictable, making economic planning extremely difficult. Trinidad & Tobago was made into an oil-based economy under British rule earlier this century. When the price of Brent crude tumbled in the mid-1980s from $30.75 a barrel to $8.75, Trinidad was forced to seek assistance from the IMF. The government introduced reforms typical of the IMF's `structural adjustment' programmes – wages were cut and state companies privatised. By 1993, unemployment was almost 20 per cent and Trinidad was spending an amount equivalent to nearly one third of its annual export earnings on payments related to its foreign debt. A similar tale unfolded in Guyana, which became a republic in 1970, and soon distanced itself from the philosophy of its colonial rulers. The constitution of 1980 described it as `in the course of transition from capitalism to socialism'. However, the socialist experiment failed to survive the death in 1985 of President Forbes Burnham, a former ally of Jagan and a leading figure in Guyanese politics since the 1950s. His successor, Desmond Hoyte, introduced IMF-style reforms that yielded predictable results: while the economy grew strongly, average life expectancy fell from 70 in 1985 to 64 in 1996. The political turbulence has been most striking in Jamaica, which was demonised by the US during Manley's socialist premiership of 1972–80. The Economist Intelligence Unit (EIU), typically a strong supporter of IMF reforms, blames Manley (in his first incarnation) for causing `recession and rampant inflation', while acknowledging that `improvements to healthcare and popular housing were achieved'. When the leader of a small country takes on prevailing western economic philosophy, there is only going to be one winner. Manley duly signed an agreement with the IMF in 1977 and, after his defeat in the 1980 general election, his replacement set about cutting jobs and public spending. As debt-related payments ate up more and more of the government's tax revenues, public opposition grew. `The social effects of the IMF conditionalities caused severe popular discontent, manifest in demonstrations, strikes and sporadic violence,' says the EIU. The Jamaican experience typifies the wider changes that have taken place in the West Indies. A generation of flawed but inspirational leaders who argued for social justice has given way to an ideology oriented around economic growth. Placed in context, the team's strike at Heathrow seems quite understandable. The political emphasis has shifted firmly towards business, leaving nebulous notions of community spirit and national pride to fight for survival. © Wisden CricInfo Ltd |
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