Latin America Report: Suriname Attempts To Replace Dutch Aid – 7 January 1982

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International Economic & Energy Weekly

The recent suspension of Dutch aid already is prompting Suriname to look for new donors. The cutoff by the Netherlands of more than $90 million in 1983 alone, nearly all of Suriname’s anticipated bilateral aid, followed the execution of some 24 leading critics of the Surinamese regime. Army Commander Bouterse told the Brazilian press that he plans to seek immediately about $30 million from Western nations—including Venezuela and Brazil—and that he will turn to Cuba and other “socialist” countries only if the West fails to provide aid.

Without a substantial pickup in aid by midyear, Suriname—already hit by depressed bauxite exports and growing budget deficits—can expect further import restrictions and budget cuts. The government may be considering tax hikes on businesses and the nationalization of some foreign firms. These measures would lead to disinvestment and add to the emigration of skilled labor. Cutbacks necessary to weather a large decrease in aid would boost unemployment and inflationary pressures.

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