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LIFE AND debt : A movie debrief - let’s break this down!

LIFE AND debt : A movie debrief - let’s break this down!. 1655: English occupied Jamaica and created agricultural- based economy (slave labour) to support industrial revolution in England 18th Century: sugar cane export flourished

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LIFE AND debt : A movie debrief - let’s break this down!

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  1. LIFE AND debt: A moviedebrief- let’s break this down!

  2. 1655: English occupiedJamaica and created agricultural-basedeconomy (slave labour) to support industrialrevolution in England 18th Century: sugar cane export flourished 1807: abolition of slave trade= no more sugar cane exports, followed by seriousdrought 1865: social, economicprogressfrom English including new technologies (irrigation) Jamaica: A briefhistory

  3. 1920: sugar cane increase; increase in land size 19th century: rise in banana trade, 1890= banana replacedsugar cane as major export Great Depression (1930s): demand for economicdevelopmentfrom British rule= 1 million pounds/ yr for 20 yrs on development BUT… fundswere not implemented to deal withJamaica’sstructural problems

  4. Jamaica’sindebtedness to international lenders, especially the IMF= structural adjustmentpolicies and forced free trade The weakness of the Jamaican dollar= due to a series of devaluationsimposed by the IMF Abstract

  5. The IMF isonlyconcernedwith short-termborrowing to meetimmediateneeds of a country- the effectismore $ in the pockets of 1st world nations (U.S., Great Britain, etc.) because of highinterest rates The World Bank wasestablished to help rebuild countries after WWII (i.e. England)- Jamaicaunder British rule 1962: Jamaican Independence after 300+ yrs What’s the deal with the imf?

  6. Post independence, countries likeJamaicaquicklyrealizedtheyhadfinancial troubles becauselack of economicstrength= theyneededtime to buildtheireconomy! 1973: hike in oilprices= a large $$ impact Jamaicaisoil importer- went to privatebanks for loans IMF: try to cutbackspending, THEN come to us Post- independence: whatdidthismean?

  7. Manley: feltpressured to approach IMF becauseJamaicaunable to pay for imports Wantedrepayment plan compatible for long-termdevelopment IMF:developmentisJamaica’sproblem IMF: loaned $$ short termwithhighinterest rates, imposedheavy conditions Pressure from the imf

  8. 1. Budget cut-backs 2. Devaluations in currency ($$) 3. Interest rates undertheir control 4. Free trade 5. Privitization = vicious cycle, because thereis no money allocated for development of Jamaicaneconomy IMF’s conditions

  9. IMF restrictedspending to healthcare & education Initially, IMF: decreaseimports, increaseexports Imports: whatcomes INTO the country Exports: whatgoes OUT of the country Jamaicaisdependent on imports fromother countries: oil, medicine, books, food, etc. Debtreaches$7 billion Imports and exports

  10. Jamaicancrops are rotting, because U.S. crops are cheaper to buy in Jamaica (CRAZY!) IMF put pressure to open up to imports: previous measuresprevented imports, ensuringJamaicanfarmers theirownmarket (toosmall to be self-supporting) crops

  11. Jamaicanproduceis more expensive ($$) becauseitisnot mechanized- “Can a machine compete with a machete?” Produce doesn’t meet standards “Free trade flows in one direction: toward the U.S.A.” Produce (think: honeydew melons)

  12. Dairyindustryhad been growing in Jamaica 1992: government took out loan of $50 million from Inter-American Development Bank to support dairy industry Condition: had to abandon local subsidies (additional financial support to farmers, i.e. tax cuts), and abandon restrictions on imported milk products Dairyindustry

  13. Abandon restrictions on imports= U.S.A. startedimportingpowderedmilk Powderedmilk: cheap (affordable), does not spoil(for longer transportation), easierstorage Result:Jamaicanfarmers went out of business= could no longer keep up with imports of powderedmilk; cut back on business dramatically

  14. Jamaicaproduces90, 000 tonnes of bananas- exported to UK (former colony) Europeanswhohad colonies in the pastwanted to givethem extra help The LomeAgreement is an agreement of African, Caribbean, and Pacific (ACP) countries with the European Union, which gave former colonies extra help in trade= guaranteed market, tariff free Banana industry: The LOME agreement

  15. U.S. (on behalf of Chiquita) went to the WTO and charged that this preferential treatment of certain countries was against WTO rules of free trade Chiquita, Dole, and Del Monte (U.S. owned) control 95% of world banana market= most grown in Latin America under repressive and exploitive regimes; very low wages (sometimes $1/day).   Is the lome agreement fair?

  16. In Honduras, Chiquita banana workers went on strike; they were forced back to work at gunpoint: there are no unions to protect workers!! Under these conditions, the multinationals can bring their produce to market more cheaply. Banks won’t invest in Jamaican bananas

  17. In the free trade zones, workers paid less than what American workers would be paid.   Kingston Free Trade Zone (FTZ), encircled with fencing and barbed wire, rows of factories, assembly of garments FTZ not part of Jamaica= not subject to things like income tax, duties, not subject to any other Jamaican laws. Don't meet the quotas= don't get paid for the work you did.  $30/week wages.  On the job, one can't talk or go to the bathroom freely.  Workers have to pay many taxes (where is the $$ going?!) Free trade zone

  18. ForeigncompanieswerepromisedthatJamaicanworkerswould not form unions Chineseworkersimported= tension betweenJamaicanworkers and Chineseworkers- WHY? Chinesegettingpaid in US $$! FTZs are counterproductive- factoriesnowmoving to Mexico= cheaper labour, loss of 18,000 jobs How isJamaicagoing to repayloanstheytook out to open the FTZ?

  19. Director of IMF says: key to growth is to attract foreign investment (private investors) Manley says that private foreign investors won't provide money for some of the things the country needs: infrastructure, education, healthcare, food self-sufficiency= they are only interested in making a profit Whatwas the IMF’sresponse?

  20. Votes in IMF are proportional to the size of the country in the world economy, so U.S. has 17.5% of the vote, then Japan and Germany. To change an IMF policy, need 80% of the vote (can't be done without the support of U.S. and W. Europe).  Does Jamaica really have a “say” in changing policies? How is this ironic? How canjamaica change imfpolicy?

  21. McDonald’s couldbepurchasingJamaicanproducts- instead, theyimportthem (Why?) McDonald’s usingcheaperimportedbeef American ranchers use an anabolic steroid Stilbestrolthat isn't sold in Jamaica, enabling them to produce more meat more quickly (and therefore, more cheaply)= “Cancer-causing agent” Mcdonaldization

  22. In slavery, the master would take the best part of the food.  Similarly, today in America, only the best parts of the chicken are sold (the back, neck, feet, etc.), are dumped into Third World countries.   Dark meat from U.S. being sold into Jamaica at 20 cents/lb., even though it costs 50 cents/lb. to produce, simply because it can't be sold in the U.S= Jamaican chicken farmers are suffering Slavery?

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