US President George W. Bush gave a sympathetic hearing to the plight of small countries in relation to the impact free trade and globalization would have on their economies.
This was disclosed by President Bharrat Jagdeo yesterday at a press conference. President Jagdeo was one of the four Caribbean Heads of State that met with President Bush at a breakfast meeting last Wednesday in Washington.
He said he told the US President that small countries under the present global situation would find it extremely difficult to adjust and cope with the challenges of free trade in arrangements such as the Free Trade Area of the Americas (FTAA) and other similar free trade blocs. Consequently, he called on the US administration to provide support to the concept of differential treatment for small countries in order for them to cope with the new dispensation of free trade, which will bring an end to preferential markets.
Another key issue that was plugged by President Jagdeo at the meeting with the US President was the enhanced Highly Poor Indebted Countries (HPIC) Initiative, which according to President Jagdeo when implemented would provide annual savings of US$30M in debt servicing for Guyana.
Consequently, he lobbied at the meeting the support by the US administration for an early completion date for the enhanced HPIC Initiative.
He noted that the mid-term review of the programmes to ensure qualification to benefit from the HPIC Initiative has been completed and approved by the International Monetary Fund/World Bank, on which US Treasury officials sit.
The Executive Board of the International Monetary Fund (IMF) on September 5 this year completed the first review of Guyana's economic performance under its three-year SDR 54.55 million (about US$75 million) Poverty Reduction and Growth Facility (PRGF) arrangement, which was approved on September 13, 2002.
This decision entitles Guyana to the release of a further SDR 5.97 million (about US$8.2 million) under the arrangement. The IMF Executive Board also approved Guyana's request for waivers on the non-observance of the end of December 2002 quantitative performance criteria on the net foreign assets and net domestic assets of the Bank of Guyana, and the end of December 2002 structural performance criteria.
In addition, the Board approved an extension of the program period for six months through March 19, 2006, as well as Guyana's request for additional interim assistance under the Heavily Indebted Poor Countries (HIPC) Initiative of SDR 5.07 million (about US$7 million) to help the country meet debt service payments on its existing debt to the IMF.
During his address to the 58th Session of UN General Assembly the President charged that: "The HPIC Initiative, which was conceived as a means of assisting seriously indebted poor countries, has been unconsciously delayed. Meanwhile, the poor of our countries must face continuing hardship and suffering. They cannot be held hostage for much longer."
President Jagdeo expressed skepticism that in the face of hurdles and difficulties poor countries may not be able to achieve the UN's Millennium Goal of reducing poverty by half by 2015.
At the UN General Assembly the President said he made a pitch for the reform of the international body, in particular the Security Council, to have greater representation and an increased role by developing countries.
In this regard he said Guyana is prepared to support Brazil, India and an African country for permanent seats on the UN Security Council, as well as a number of non-permanent seats for other developing countries.
With respect to the latter he said he a held a bilateral meeting with South African President Thabo Mbeki in New York.