Local News

Newsmaker of the Week: Nigel Clarke’s IMF top job ‘jolts’ nation 

02 September 2024
This content originally appeared on Jamaica News | Loop News.
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This week's overall development as Newsmaker of the Week is the range of reactions to the pending departure of Dr Nigel Clarke as the island's Finance and Public Service Minister, and from the governing Jamaica Labour Party (JLP) as Member of Parliament (MP) for St Andrew North Western.

The political earthquake stunned most local news teams sometime after 10am on Monday, as Jamaica House issued a press release announcing that Clarke is set to take up duties as a Deputy Managing Director of the International Monetary Fund (IMF) on October 31, 2024.

It was apparent that pretty much no one locally saw this move from Clarke coming, as not even he had hinted of it.

Some social media users, however, are questioning Clarke's loyalty to the country at a time when it is recovering from July's passage of Hurricane Beryl. Others are framing the move as one of Clarke "abandoning" the country, a claim which he has vehemently denied.

Clarke stated in a radio interview that he did not apply for the position at the IMF, but was rather, called about the post. He said after much consideration, he accepted the position.

Clarke, in what was one of his first interviews since the news that his local political career is almost over for now, said he was not abandoning Jamaica.

"I wouldn't describe myself as abandoning Jamaica... It's certainly bittersweet in terms of this sort of a new challenge that has been presented to me," he said.

The minister said Jamaica's economy is in a good place and he is confident that the economic programmes will continue under his successor.

Clarke has been a key figure in Jamaica's economic development, serving as arguably the second most powerful minister in the Cabinet since 2018.

He has been instrumental in navigating the country through a number of economic crisis, including the challenges that were brought on by the COVID-19 pandemic, and leading the public sector through the contentious compensation review process, during which the island's politicians received a massive hike in their salaries, causing outrage in the public domain.

In announcing Clarke's appointment to the IMF, its Managing Director, Kristalina Georgieva, said it represents "a tremendous addition to our skills and capabilities, strongly supported by staff at the IMF".

Speaking during a virtual round table with Caribbean journalists, Georgieva said the appointment is "a testament to Nigel Clarke’s skills, experience and dedication to public service, and it is also a very important reflection of the voice, the credibility of the Caribbean region.

Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva.

"You have been on the frontline on one of the most dramatic challenges we face, the climate challenge, and you have a lot to teach the rest of the world on how to handle it.

"So thank you Caribbean region for gifting us Nigel Clarke to help us lead the fund in the next years," she said.

Georgieva said among Clarke's important responsibilities will be bringing "through his experience, the voice of small island states to us at the fund.

"And I want to add that I’m particularly excited of him joining us as I start my second term, and I know that in my second term, attention to vulnerable island countries will be even more elevated," she further explained.

Locally, Prime Minister Andrew Holness was among those hailing Clarke on his appointment.

He said “this is a historic and important development in which I take immense pride”.

Holness highlighted that the IMF plays an indispensable role in the world economy, promoting global financial stability and monetary cooperation in service of its 190 member countries.

In pointing out that the position of deputy managing director is global in scope, Holness noted that “no citizen of Jamaica, the Caribbean or Central America has ever before served at this level in the IMF in its 80-year history.”

The powerful Private Sector Organisation of Jamaica (PSOJ) extended congratulations to Clarke, commending him for his distinguished tenure as Minister of Finance and the Public Service.

Prime Minister Andrew Holness

"As we anticipate Dr Clarke's transition to his new role, the PSOJ emphasises the importance of a seamless handover of his ministerial responsibilities. We trust that the Government will ensure continuity in fiscal stability and maintain vigilant, prudent management of the critical policies within this portfolio,” the Metry Seaga-led PSOJ said.

Other public figures, including Speaker of the House of Representatives, Juliet Holness; Transport Minister Daryl Vaz; former Finance Minister and People's National Party (PNP) President, Dr Peter Phillips; noted chartered accountant and financial analyst, Dennis Chung; Businessman and Chairman of the Economic Programme Oversight Committee (EPOC), Keith Duncan; and Jamaica's Ambassador to the United States, Audrey Marks, all welcomed and congratulated Clarke on his appointment.

While also congratulating Clarke on his IMF appointment, the JLP said it intends for there to be a smooth transition of Clarke's responsibilities as MP for St Andrew North Western.

Nearly six-and-a half years after he was overlooked for the seat, Duane Smith, the son of Derrick Smith, a former long-time MP for the constituency, is to get his chance to represent the typically safe JLP constituency.

For Clarke's Cabinet post, Holness said on Monday that a successor has been found, but he did not release the name of the individual, leading to much public speculation.

The Opposition PNP also extended congratulations to Clarke, but their statement raised eyebrows and was condemned by some JLP loyalists as having been insensitive.

Others said it appeared that the PNP was admitting that Clarke has led the Jamaican economy well, a position that an Opposition party would tend to refrain from publicly stating.

In its statement, the PNP had questioned whether Clarke's departure "signals the abandonment of a sinking ship, leaving the Jamaican population to grapple with... unresolved issues."

Among the "serious economic challenges" the PNP claimed the country is facing at this time were "the spiralling cost of living and negative growth impact of the recent hurricane".

At the same time, the party noted that Clarke's prestigious role as IMF's Deputy Managing Director is a notable achievement for Jamaica on the global stage.

Holness did not directly respond to the PNP's position on Tuesday, but dismissed any chatter from various sections of the society on the move by the finance minister to call an end to his career in the Jamaican Government.

"So, I am not concerned. I am happy that one of my Cabinet members (was appointed to a post in the IMF), which validates (that) our efforts can be tapped for such a high position," Holness remarked.

Fayval Williams

He added: "If ever there was an endorsement of a government's policy, that is it."

To the viewpoints on who will take on the finance and public service portfolio, the prime minister said the Administration is not a "shallow institution", and "we don't depend on one man alone".

He said the governing JLP has a diverse and deep leadership pool.

"But more than that, every political organisation must be able to attract new talent," Holness stated, recounting how he recruited Clarke to the political arena.

In what might be a hint that Holness is not ruling out recruiting someone else from outside the Government to replace Clarke, he said: "My job as prime minister is to continue to scout the country for the incredible talents that exist, and not just bring them into the Jamaica Labour Party.

"That's important, but bring them into the Government for the benefit of the people," the prime minister shared.

Added Holness on that point: "We need to create more people like Minister Clarke, (and) find the talents."

As the news of Clarke's departure continues to sink in, Jamaicans are eagerly awaiting the announcement of his successor.

Political observers have pointed to current Education and Youth Minister, Fayval Williams, as the frontrunner. She is a former Minister without Portfolio in the Ministry of Finance and the Public Service.

Others have pointed to current Minister without Portfolio in the Office of the Prime Minister (OPM) with responsibility for information, skills and digital transformation, Senator Dr Dana Morris Dixon, as a likely contender, given her background in banking and finance.

However, other political observers have opined that Holness could look outside the Houses of Representatives and the Senate, recruiting an individual to the political arena like he did with Clarke. Such names being called include businessman Keith Duncan, chartered accountant Dennis Chung, and economist Dr Damien King.

Another option has been banded about, that of Holness relieving himself of his other portfolio responsibilities and taking on the mantle of finance minister, as was done by his political mentor and former Prime Minister, Edward Seaga.

Social media users have also been speculating on who should be considered as for position of finance minister, as well as their general thoughts on Clarke's 'sudden' departure.

"This news is bittersweet. But, we Jamaicans want to wish him (Clarke) well, and congratulations on achieving the position of Deputy Managing Director of the IMF. Jamaica to the world. One love," a man wrote on Facebook.

"Dr Clarke is one of the best finance minister's ever in Jamaica, but I can't help but wonder if he is abandoning us for greener pastures," another opined.

"My personal views are that he should have stayed and see us through the next elections, but only Dr Clarke can decide what's best. Still wondering though," the man further commented.

Said another man: "A big blow to Jamaica, perhaps he was preparing someone to fill his 'large shoes’!"

On that point of Clarke's replacement, a woman said: "I don't see anyone in Parliament now who can fill Nigel's shoes. Better dem give it to Mr (Keith) Duncan."

Shared another: "Talent to replace Dr Clarke is not an issue. Fayval (Williams) is my top pick for the job, and remember Aubyn Hill can be given a seat (in the House of Representatives through a by-election) because he has expertise in finance."

On Instagram, a woman said that, "In light of Fayval's (perceived) poor performance in Education (Ministry), I can't give her the post as Finance Minister.

"If my mind doesn't deceive me, (Dr Christopher) Tufton has some financial background, right? Probably him could take over, and give him a state minister from the Senate with a financial background," she opined.

In response, a man said that viewpoint is "ludicrous".

"Jamaicans lack reasoning enuh. Yuh can't move yuh best minister send him a one place he never been! That's ludicrous! Let's just work with Fayval until the next election when we can get someone new in Parliament with the talent like Nigel (Clarke)," he contended.

Meanwhile, a woman opined that Clarke's decision has possibly left Holness with a hard decision to make.

"I wouldn't be surprise if PM Holness decides to take on finance (ministry). I don't see any choices in Parliament (the House of Representatives) who can fill Nigel's shoes. Fayval not to my liking at all," she stated.

Shared another: "Right now it hard on Holness (because) a don't see (the) smaddy yet to replace Mr Clarke. Holness have to go just tek finance under OPM (Office of the Prime Minister)."