LIFE AND DEBT SIH

This paper aims to explore the elements as shown in the documentary Life and Debt. The core theme of this documentary is to point out and highlight the impacts of globalization, international lending, a nd free trade, implication of different policies as doctored by various powerful institutions such as the international monetary fund together with superpower nations such a s the USA, on minor and underdeveloped nations such as Jamaica. The documentary has been finely directed and in my perception is an excellent medium to depict how the strategies adopted by the Jamaican people for survival in their daily lives are actually influenced by the US and the other economic institutions. Scenes from the documentary stated that the mechanism of debt was a major factor for brining drastic changes to the fiscal policy status in Jamaica. Increasing levels of imports and less dependency on self production of commodities had been responsible for fuelling the crisis further. Pressure from the IMF to opt for debt financing in order to bring the fiscal policy under stable condtions and instigate economic growth had been longing for a considerable time period. For instance, in a post-independence speech during 1996 the former prime minister actually condemned the IMF and stated that they will not seek anyone’s intervention and assistance. However, gradually due to a lack of other viable alternatives debt contacts had to be signed with the IMF. Such a trend can be rather said to be global trend for all the third world nations. Such developments had led to the need for generation of ex cess amounts of forei gn exchange funds to meet the interest payments which was not very much feasible. And under such circumstances, the IMF prescribed the imposition of high interest rates, devaluation of the local currency and redefined wage guidelines. However, such initiatives were having a more demoralizing effect on the local economy and in the end the country was giving out more than it was receiving. The latter segments of the documentary highlights the effects of high interest

LIFE AND DEBT SIH

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