Caribbean L 16 ife, Feb. 22–28, 2019 BQ
Suriname’s economy in doldrums
cles about Bouterse and
some cabinet members
being upset with Gersie
for refusing government
overtures to allow
for populist spending on
projects in the run up to
next May’s elections.
Anger has risen to
such an extent in various
sectors in the Caribbean
Community nation
of about 500,000 people
neighboring Guyana that
parliament has orderedan
emergency session to discuss
the firing of Gersie
amid fears that his
replacement would be
a puppet who authorities
could manipulate as
Bouterse’s National Democratic
Party (NDP) tries
out for a third term in
office. Authorities are yet
to respond to the request
by various parliamentary
parties for a special session
in parliament, perhaps
because they anticipate
that such would be an
uncomfortable and tense
assembly. Most of rival
parties in the 51-member
assembly have called for
the meeting, saying they
were uncomfortable with
what they believe was an
attempt by government
to undermine an independent
institution in
the country. In this, the
parties have the support
and backing of business
groups like the Chamber
of Commerce. They
all said they fear state
reserves will be abused to
fund projects that could
favor the NDP’s reelection
bid.
“We expect unquestionably
calming signals
to society and the
business community in
particular that no large
monetary financing will
take place in any form
whatsoever. As a business,
we take our responsibility
in the expectation
that the executive will
take proper responsibility,”
said the chamber in
a statement.”
The move has already
resulted in a decline of
the Surinamese dollar by
30 cents to US$8-1 in the
past week. The association
of foreign exchange
cambios and related
groups asked Surinamese
not to panic in any way
so as to avoid the dollar
weakening even further,
making it more expensive
to import necessities.
The governor’s sacking
has also come in the
wake of a cranking up
of the national elections
campaign by the dozens
of parties planning
to contest for the presidency
and parliament in
2020. One of them, DA 91
said the move has shaken
the financial sector to its
foundation and staff are
stressed out.
“The government is not
accountable. The mechanism
of checks and balances
that should be normal
in every democracy
is ignored here. The government
announced on
Feb.12 that Gersie is being
replaced. There is no reason
for the dismissal. The
government has indicated
that it will not go into
details,” said Leader and
lawmaker Carl Breeveld.
“DA’91 states that unrest
has increased among the
staff of the mother bank.
This will have very negative
consequences, part
of the framework is leaving
and is seeking to find
favor with the commercial
banks, which is a very
serious situation with
serious consequences for
the entire society.”
The nation’s economy
has been in the doldrums
for much of the past decade,
shaken to the core by
the period of low prices
for gold, bauxite and oil,
its three major export
apart from agricultural
products like rice and
bananas.
US owned Alcoa has
pulled out of the country
after decades mining its
bauxite reserves leaving
a gaping hole in foreign
exchange earnings.
Central bank reserves
which had reached more
than $1 billion dollars in
recent years have declined
by half, forcing authorities
to turn to the IMF
and the Islamic Development
Bank for assistance
in shoring up the situation.
Gersie had been at the
butt of criticism from the
government about his
refusal to ‘cooperate’ and
give government some
political and monetary
space to operate. Finance
Minister Hoefdraad has
swatted away dismissal
rumors as “vote making,
lies, gossip and fake
news.’
Winston Ramataursing,
the head of the local
body of economists fears
that the independence
of the bank will now be
compromised, while the
Hindustani VHP party
agrees.
“With the elections of
May 2020 in sight, it is
clear that the government
wants to put someone in
the post of governor who
is obviously willing, as in
the previous elections,
to give the government
more money and possibly
fund monetary. The people
will then pay a high
price again. The scenario
is clear, because otherwise
you will not get away
from a well-performing
governor. People of Suriname,
watch your case,”
the VHP said. Labor leaders
also threw in their bit
of criticism.
“The dismissal of the
governor is like a bomb.
On Monday night Mr.
Gersie denounced the
rumors of his possible
departure to the staff and
reassured his employees,
24 hours later he appears
to have to leave,” said
Robby Berenstein.
Commercial banker
Jim Bousaid said that
the undermining of the
bank has consequences
for the immediate future.
“Not because we talk, the
exchange rate rises, but
it has to do with maladministration.
We do not
want a Venezuela in Suriname.”
President of Suriname,
Desi Bouterse at a
press conference in Suriname.
Associated Press / Edward
Troon
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