Point 10 of the CARICOM plan calls for the cancellation of international debt held by CARICOM member states, framing this as a reparatory measure on the grounds that Caribbean debt burdens are a legacy of colonial underdevelopment.
Several CARICOM member states do carry significant debt burdens. Jamaica’s debt has been among the highest in the world relative to GDP. Barbados required IMF intervention in 2018. Several smaller island states face structural debt challenges. The debt burden is a real constraint on Caribbean governments’ ability to invest in development.
However, the debt did not arise from colonial exploitation. It arose from post-independence fiscal decisions: borrowing to fund public services, infrastructure, and sometimes simply to cover government operating expenses when revenues were insufficient. Some of this borrowing reflected genuine development needs. Some reflected poor fiscal management. Some reflected the political economy of patronage that characterises several CARICOM member states.
Debt cancellation that goes to governments rather than to people has a mixed development track record. It frees up fiscal space, but whether that space is used for productive investment or simply absorbed into ongoing government expenditure depends entirely on the governance quality of the recipient. For several CARICOM governments, the track record on this is not encouraging. Unconditional debt cancellation as a reparatory measure would likely produce limited development impact for ordinary people while relieving pressure on governments that contributed to their own debt problems.
