Jamaica is one of prior probability‘s favorite countries in the world (aside: p.p.’s wife is Jamaican and we spent our last summer in St Ann Parish and plan to return next summer), and today, 6 August, the Island celebrates her independence from Britain today, 6 August. But unfortunately for the people of Jamaica, their government is currently burdened with a huge external debt (i.e., monies owed to creditors outside the country). According to this report in The Guardian, for example, “Jamaica has repaid more money ($19.8bn) than it has been lent ($18.5bn), yet the government still ‘owes’ $7.8bn, as a result of huge interest payments. Government foreign debt payments ($1.2bn) are double the amount spent on education and health combined ($600m).”

Can a country be truly independent when its external debt is so large relative to that country’s wealth? Can a sovereign country declare bankruptcy? In the alternative, why won’t the international community agree to forgive the accrued interest on Jamaica’s external debts?