IMF clash

Governor of Barbados’ Central Bank Dr DeLisle Worrell (left) and IMF managing director Christine Lagarde were in a heated exchange at a meeting in Japan. (FP)

By Dawne Parris | Sun, October 28, 2012 - 12:10 AM

CENTRAL BANK GOVERNOR Dr DeLisle Worrell has gone head-to-head with the International Monetary Fund (IMF) boss, telling her that her agency has been giving “bad advice” to countries like Barbados and, like it or lump it, devaluation is not an option for this country.

A tough-talking Worrell gave IMF managing director Christine Lagarde a blunt assessment of the IMF approach to Barbados and other small economies, saying that its model was simply wrong, at a breakfast meeting with Caribbean delegates attending the recent IMF/World Bank Annual Meetings in Japan.

A transcript of the meeting, which the SUNDAY SUN accessed, showed a vigorous debate between Worrell and Lagarde, a former French minister of finance, over the merits of devaluation, and how economic growth could be achieved.

Barbados’ currency has been pegged to the United States dollar at two to one since 1973.

Please read the full story in today’s SUNDAY SUN, or in the eNATION edition.

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Posted by Mark Walkes 6 months, 3 weeks ago: Too right. Devaluation should not be on the table as an option. Devalutaion does nothing in the medium to long term to the economy, and further more how man IMF driven currency devaluations have recovered?

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Posted by Tony Webster 6 months, 3 weeks ago: Hmmm...curiouser and curiouser... while some folks of the left hand are over-and-away, soothing the rating agencies, and (as I recall, also some arm of the IMF) and rather stridently proffering that our currency peg is "safe"…the right hand is playing hard-ball in Japan, with the Top Lady herself. We cannot of course overlook our PM's recent and highly significant "courtesy call" on Miss LaGarde herself, so one must assume that we have exhausted our stock of calming and soothing words and entreaties, and that there is nothing now to be lost or gained by calling Lagarde out-of-order, publicly! I wonder, just who holds the high cards? Why, with all such milk and honey pablum about, am I nervous? Looka, ring de bell please. Dis gine pas' joke now. RING DE BELL.

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Posted by Harold Harris 6 months, 3 weeks ago: Thanks, Dr. Worrell, I think it's time that Barbados speak out and let the IMF, whose leaders act as though they are/were despots, know that we do not have or had flibbertigibbets--but responsible, intellectual and adept persons in charge of our government. Just because Barbados is a small nation does not mean that we must take everything the IMF or any international financial establishment or government throws at us. The managing director of the IMF should perhaps see if she can get France, who without a doubt is in denial of the problems facing it, to put into effect some sensible policies to strengthen that country's economy. Come on Barbados' politicians, let's put aside our party-politics and rancor, and focus more on ameliorating our country's economy and moreover its international standings!

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Posted by young dennis 6 months, 3 weeks ago: TELL MADAME LAGRADE WE ENT DEGRADING ..WE EN TEKING HER LONG TAWK...WE ARE NO MODERN DAY SLAVES..SO GIVE JAMAICA UH CHANCE TO UPRIGHT ITSELF..WE COLLECTIVE ISLANDS, YOU SEE , USED SEMI-COLONS IN WRITING..BUT ARE NO LONGER SEMI-COLONIES IN YOUR SPEECH.

UPLIFT YOURSELF CARIBBEAN PEOPLE..

Guv Worrel lead us.