WILLEMSTAD - The intended coalition parties MFK and PNP want the International Monetary Fund (IMF) to be engaged to take care of Curaçao's reform program. According to the parties, a yet to be established Caribbean body for Reform and Development, the so-called COHO, does not have the experience and knowledge that the IMF has. That can lead to a waste of time. And that is why the parties argue in favor of involving the IMF in the major reform program that the Netherlands and Curaçao have in mind.
The two parties have sent a letter to the parliaments of the Netherlands, Aruba and Sint Maarten to present the plans in the upcoming coalition agreement.
It is hoped for fruitful cooperation in the Kingdom and it is argued that the new coalition wants to put the well-being of the citizen at the center of the policy for the next four years.
In the document of 28 April 2021, that was send to Curaçao Chronicle last night, MFK and PNP recognize the need for reforms and can largely agree with the objectives of the National Package, but see no room or role for Coho in this.
Moreover, according to the parties, such a 'far-reaching reform program' can only succeed if it is managed within the framework of a tailor-made program, with a rigorous monitoring regime and performance criteria (milestones) against which progress can be measured and in case of deviations corrective action can be taken.
“The MFK and the PNP are of the opinion that a body yet to be established such as COHO does not have the necessary experience and knowledge to successfully guide and manage such a program, with the risk that this will accompany the program with unnecessary loss of time. Something that Curaçao cannot afford in the current precarious situation.”
“Financial programming and policy development are not a science, but more of an art that requires experience. Financial programming is a framework to analyze the current state of the economy, predict where the economy is going and identify economic policies that can change the course of the economy.”
It follows from the foregoing that discussions about the magnitude of the financial need, the funding sources and modalities will form part of this financial programming and will be addressed in that process, the parties said in the document.
Both political leader say that the World Bank and the IMF in particular "have unparalleled experience in the field of recovery and structural adjustment, the latter of which is already familiar with Curaçao".
The MFK and PNP therefore prefer to formally call in the IMF as soon as the new cabinet takes office.
“Reasons why the upcoming government is strongly committed to structuring the Landspakket (Country Package) in an adjustment program with the seal of the IMF. Not only is the IMF the appropriate institution to prepare, guide and monitor such a reform program; it also gives the program the necessary credibility that Curaçao needs to get out of this deep economic trough.”
The leaders of the upcoming government parties count on the support of the Kingdom government and refer to article 25-29 of the Statute. "We would therefore appreciate it if the Dutch government will support Curaçao in entering into discussions with the IMF with a view to reaching an agreement with the IMF on a" fund supported "program."