US Tensions With Venezuela Could Tourism, Jamaican PM Says

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00:00I wanted to start with some of the rebuilding efforts that we're watching in your country.

00:05Prior to the hurricane, of course, Jamaica was doing well economically.

00:09What is the outlook now, especially when you consider unemployment, debt, and the like?

00:16Hurricane Melissa could only be described as an atomic bomb of wind and rain

00:23that left a trail of destruction through seven of our 14 parishes.

00:29It is estimated that the physical loss of assets would be somewhere in the region of about US$8.8 billion,

00:39amounting to approximately 40% of our GDP.

00:43900,000 persons have been impacted.

00:46150,000 homes have been impacted.

00:49We've lost 45 of our citizens, have died.

00:53And it has generated debris to the extent of about 480,000 standard truckloads.

01:00So you get a sense of the devastation.

01:05But Jamaica is not down and out.

01:07The other half of the country is functioning, doing well.

01:12And so the strategy is to keep our economy going as much as possible

01:17and to use the other half of the country to drive and support the recovery of the half that has been damaged.

01:24Have you been able to secure any additional financing or foreign aid during your trip here for rebuilding?

01:29So, to answer your question in two parts,

01:33firstly, we were prepared from a financial perspective, a fiscal perspective,

01:41by having a catastrophe bond, insurance, and contingency borrowing up to about $1.1 billion.

01:49We will have to borrow more than that.

01:55We estimate that the recovery that the government would have to support

02:00would be somewhere in the region of $4 to $6 billion.

02:04And so we are in the process of negotiating,

02:08talking to the international financial institutions about how they can support Jamaica.

02:13So my presence here today has been very successful in that regard,

02:16in mobilizing the resources and support of the international financial institutions.

02:22Do you think it might be debt issuance?

02:24Would it be foreign aid?

02:26It would be a mix.

02:27It would be a mix.

02:28It would be a mix of things.

02:29But clearly, most of it would be debt.

02:32Now, it all depends on what kind of debt.

02:33Is it concessional debt?

02:35Is it long-term debt?

02:36Is it debt that is linked specifically to reconstruction?

02:40Is it debt that we can use to support private initiative and private sector?

02:48Is it support in de-risking some of these products?

02:52So it's going to be a blend of approaches to support and finance the recovery effort.

02:58Is that something you're talking to President Ramaphosa about?

03:01What have the discussions with the leaders then been here?

03:03I've met with several leaders, and all of them have expressed solidarity with Jamaica.

03:09And we will have varying support, whether it is relief support, recovery support,

03:15long-term reconstruction support, financial support.

03:19As it relates to South African President Ramaphosa, I will be meeting with him in a few minutes.

03:24So I'll have a better sense as to what South Africa will do.

03:29Do you think there needs to be more done in terms of climate financing?

03:33That was something that was important for President Ramaphosa as part of the G20.

03:37That is something that a nation like Jamaica should push for, does push for.

03:42Do you think there's been progress on those discussions?

03:44I think a lot has been said about climate financing.

03:47But I do agree with you, much more needs to be done in terms of making funding more accessible,

03:57which has always been a significant challenge of just accessing.

04:03And in developed countries keeping their commitment to funding some of the initiatives

04:10in climate change and resilience building.

04:13Does the declaration go far enough then that we got out of this G20?

04:17I think the declaration is a strong declaration in this regard.

04:22I will say this though, the climate change movement is obviously being challenged,

04:29as is the multilateral movement.

04:33For small countries like Jamaica, we don't see climate change as an academic discourse.

04:42Climate change is a reality.

04:43We are seeing more intense, more frequent, and overlapping weather events,

04:50which could be attributed to a change in the climate, whether it is natural or man-made.

04:56The truth is that the change in the climate is having an impact on the balance sheets of countries.

05:03We could wake up one day and one event, 40% of our GDP is wiped out.

05:09So for us, climate change is a practical thing, and the way to respond to it is from the global architecture,

05:16whether it is a financial architecture or the way in which countries relate to each other bilaterally,

05:23is to build resilience.

05:26Resilience is the bridge, I believe, where both arguments and perspectives should meet.

05:32Prime Minister, I just want to finish on one point.

05:35Of course, the U.S. President is not here, but we have seen increased tensions in your region

05:39between the U.S. and Venezuela, very close to Jamaica.

05:42How do you assess the situation at this point?

05:45What are some of the risks that you see here?

05:47We always maintain that the Caribbean is a zone of peace,

05:52and we want to ensure that it is a zone of peace.

05:56Any action that challenges that or changes that view would have or could have devastating impact on tourism,

06:06which is the major foreign exchange earner for most countries in the Caribbean.

06:13Having said that, however, there must be consideration for countries in the region for rising crime,

06:21rising transshipment, and drugs.

06:24So there is need to tackle this business of drugs, transshipment, and rising crime linked to these operations in the region.

06:34So whatever is being done should be done with consideration for the economy of the region,

06:41safety, and respect for the sovereignty of the people.

06:44But Jamaica does support actions against drug cartels and other actors that create crime and violence in our country.

06:56Have you spoken to any U.S. officials about that?

06:58We're always constantly in dialogue.

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