Latin America Review – Suriname: Seeking Economic Support – 6 December 1985

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Suriname’s worsening economic plight is prompting the Bouterse regime to court virtually any country offering hope of financial support or expanded trade. As a lure to potential supporters, the regime is touting its tentative steps toward democratization. Despite disappointment over Libya’s failure to deliver a promised economic package reportedly worth as much as $100 million, Suriname appears to be expanding ties to Tripoli; a Libyan delegation recently visited Suriname to discuss increased economic cooperation.

Economic arrangements with other countries in recent months have included:

  • Taiwan has provided a $40 million credit line.
  • Brazil has opened a $20 million credit line and agreed to purchase more Surinamese alumina.
  • Colombia has agreed to a $10 million credit line.
  • China has made a $7 million, interest-free loan to finance construction of an indoor stadium.
  • Venezuela has provided a $3 million credit line and agreed to help develop Suriname’s fishing industry.
  • Czechoslovakia apparently has agreed to supply capital goods in return for bauxite and related derivatives.

Moreover, Iranian representatives reportedly have visited Suriname to explore expanding trade relations. [CENSORED]

Largely in hopes of attracting Western assistance—particularly a resumption of $600 million in Dutch aid suspended in 1982 after the execution of 15 prominent opposition leaders—Head of Government Bouterse last month gave leaders of three previously banned political parties a limited voice in his policymaking council and pledged to return Suriname to democracy by April 1987.

Suriname’s gradual progress in expanding economic relations will partially ease the country’s critical shortage of foreign exchange and enable the regime to enhance its political credibility by overcoming the external isolation that resulted after the 1982 murders. Nevertheless, Bouterse’s recent steps toward democracy are unlikely to prompt the Netherlands to release its blocked aid.

Unless Suriname’s economic situation improves dramatically—an unlikely prospect—the regime probably will continue to make at least token steps toward democratization in order to attract Western donors and boost its low domestic popularity. Meanwhile, however, the regime will also continue to seek funds from any willing quarter.

Date:
December 6, 1986
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