Jamaica, the United States and the International Monetary Fund
From the document:
This paper looks at Jamaica’s ongoing relationship with the International Monetary Fund (IMF) and other multilateral development banks, its recent economic performance, and the impact on development of a persistently high debt burden. It finds that after 20 years of negative average annual per capita GDP growth, Jamaica continues to be plagued by high debt and low growth.
Now in the third year of an IMF-backed economic program, Jamaica is running the most austere budget in the world, with a primary surplus of 7.5 percent. This is enormous; even Greece, which is facing a tense standoff with the IMF and European authorities over its debt, is only expected to run a primary surplus of 3.0 percent of GDP this year and 4.5 percent for years thereafter – and this is
widely considered politically unsustainable...
After having multilateral loans cut off in 2012 following the breakdown of Jamaica’s previous IMF agreement, net flows from the multilateral banks turned negative for two consecutive years. Even after the signing of the new IMF agreement, Jamaica paid $138 million more to the IMF than it received last year.
Jamaica still owes the World Bank and Inter-American Development Bank over $650 million through 2018. This paper finds that multilateral debt relief would likely free up more resources than continuing to issue further loans. Finally, the paper finds that without hundreds of millions in financial support from Venezuela and China the impact of IMF-led austerity would likely be far worse and, ultimately, politically untenable.