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IMF Rebuke: Urgent Call for President Santokhi to Address Social Challenges

Suriname Economic Crisis: President Santokhi Under Scrutiny

IMF Rebuke: Urgent Call for President Santokhi to Address Social Challenges

For over three years, the government led by President Chandrikapersad Santokhi has squeezed the people too much without offering any compensation in return. This succinctly summarizes the message delivered by Anastasia Guscina of the International Monetary Fund (IMF) to the Surinamese leaders last week. Nearly everyone in the country has been experiencing this firsthand for a long time, but Santokhi chose not to listen. However, now he must take action to bring relief, and not promise false light at the end of the tunnel, as he previously claimed.

The government’s structurally reformative program has failed, putting at risk all the sacrifices made by the people in recent years. This was the core of Guscina’s harsh message. She believes that the Santokhi government has treated social protection as a secondary concern and allocated insufficient funds for it, resulting in disappointing outcomes for the people.

Since the implementation of the IMF-supported economic recovery program, the government should have done much more to financially assist those severely affected by the measures. However, according to the IMF, this has been neglected, causing measures such as the abolition of various subsidies and the introduction of the value-added tax (VAT) to weigh heavily on many households.

Tightening the Purse Strings

Despite the IMF’s emphasis on spending more to prevent a significant decline in purchasing power, the government kept a tight grip on the purse strings, especially for incentives that could alleviate burdens. Often, this was justified under the false claim that the IMF program did not allow such flexibility, which is untrue. Furthermore, spending was not restrained for the government’s own expenses, such as numerous travels, subsidizing the national airline (SLM), and appointing many officials, consultants, and advisers from personal networks, especially family and friends.

Santokhi remained deaf to criticism for three years, proceeding despite increasing resistance. While he initiated a social program to mitigate the effects of the measures, its execution was considerably lacking. This remains the case. The funds reserved for strengthening purchasing power, for example, are only partially spent and reach some individuals who are not entitled to them.

Consciously Inadequate Funding

It has now come to light that the government deliberately allocated insufficient funds for distressed compatriots. Finance and Planning Minister Stanley Raghoebarsing admitted on the radio over the weekend that funds designated for social benefits were used for other purposes. “As long as the rules (of the IMF, … red.) are not violated, the money can be used differently,” he casually stated. This implies that the social program was consciously not fully implemented. Minister Uraiqit Ramsaran of Social Affairs and Housing (Abop/Pertjajah Luhur) is particularly criticized for this. Ironically, the IMF has to point out to Santokhi that his social program is falling short on all fronts. Part of the population is currently facing hardships due in part to the stringent measures imposed by the government to receive 52 million US dollars per quarter for three years. Suriname has missed several tranches because it did not meet the conditions.

Regrettable Subpar Performance

However, Guscina hopes that the government’s policy will significantly improve in the coming period. “The regrettable subpar performance and efforts must be stepped up to achieve the objectives before the end of the year and ensure that the money reaches the right people. And that the value of these benefits is not eroded by inflation. We have had this conversation with the president, and he intends to take this situation to heart,” she said sternly.

It is hoped that Santokhi not only heard all the recommendations but also takes concrete actions. He may have a listening ear, but he often makes promises that he barely fulfills. This has been the case for three years: groups of people with various grievances regularly knock on his door, usually without significant results.

Unprecedented Proportions

Pre-talks for the canceled national dialogue have brought little change and tranquility to the country. As a result, parts of the country are currently at a standstill, unrest is increasing daily, and there is anticipation that protests will reach unprecedented proportions. The fact that the head of state has traveled to Saudi Arabia to attend a “necessary” Caricom meeting indicates that domestic unrest does not concern him. His cluster ministers are expected to resolve it.

Guscina – and the rest of the IMF – is likely aware of this. However, the president must be aware that Washington is closely monitoring Suriname, and there must be genuine improvement by the end of the year for those who genuinely need it; otherwise, the funding may be cut off again

Source: https://dwtonline.com/imf-reprimande-santokhi-moet-nu-wel-luisteren/

Date: 20 november 2023

Categories:  Columns, Economische Crisis, Economische Nieuws 

Tags:  Economic Challenges, ExxonMobil, Government Spending, Inflation, International Monetary Fund, National Debt, President Chandrikapersad Santokhi, Uraiqit Ramsaran 

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