Caribbean & Central America - August 2012 (ISSN 1741-4458)

*** ST KITTS & NEVIS GETS DEBT RELIEF AND IMF SUPPORT. In mid-July, the British government informed St Kitts & Nevis (SKN) Prime Minister Denzil Douglas of “the full cancellation of all your government’s debts to DFID [Department for International Development]”. The UK’s Minister of State for International Development, Alan Duncan, wrote to Douglas saying that the decision had been taken on the basis of SKN’s “sound economic management, good governance, and commitment to poverty eradication”.

This welcome news for SKN was followed up on 3 August by the successful completion of an IMF review of a 36-month Stand-by Arrangement (SBA). The completion of the review enabled the immediate disbursement of US$4.76m, to bring the total disbursed under the SBA to US$60.21m. The total SBA, agreed in July 2011, is for US$79.15m.

The IMF review noted: “While the outlook for the St Kitts & Nevis economy is for a moderate recovery, weaker domestic activity and the persisting difficult global environment pose challenges...”

After three years of declining economic activity (with contractions of 5.59% in 2009, 2.69% in 2010, and 2.00% in 2011), SKN is expected to show growth in 2012 of just under 1%. It is targeting a debt/GDP ratio of 89.3% for 2012.

*** IMPROVING CRIME RATE FOR THE BAHAMAS. The crime rate in the Bahamas for 1 January-24 July was down 9% compared with the same period in 2011. The murder rate was down 14%, rape down 11%, and attempted rapes were down by 65%. The improvement in robberies was less dramatic, with a 2% fall. There was also, within that figure, a 21% increase in armed robberies from 512 to 617.

Not surprisingly, the new Progressive Liberal Party (PLP) government of Prime Minister Perry Christie, which swept to power on 7 May beating the Free National Movement (FNM) by 29-9 seats in the 38-seat parliament, has sought to take the credit for the improvement. On 1 August, National Security Minister Bernard Nottage told parliament: “The prime minister was sworn in on 8 May. Between 8 May and the end of this month [July]...murders are down by 24%, rapes are down by 6%, attempted rapes by 56%, unlawful sexual intercourse by 43%...robbery is down by 20%...As the prime minister said, we are trending in the right direction.” Nottage had to concede, however, that armed robbery was up during this period by 49%.

*** GRENADA RULING PARTY TO HOLD CONVENTION. Grenada’s ruling National Democratic Congress (NDC) is to hold its 2012 convention, originally scheduled for 8 July, on 30 September. The party has been in turmoil due to internal splits, often seen as between the rural supporters of Prime Minister Tillman Thomas and the ‘urbanites’. Thomas must call an election by next year at the latest, and the September convention is the NDC’s last opportunity to put its house in order.