Browne Pushes Back on US Financing Model, Says Antigua Must Retain Ownership
— Prime Minister Gaston Browne says Antigua and Barbuda will consider financing from the U.S. International Development Finance Corporation but will resist arrangements that place national assets under foreign control and allow profits to be transferred overseas.
Browne’s comments come as the DFC seeks to expand its involvement in the Caribbean and provide regional governments with alternatives to Chinese-backed infrastructure financing.
According to a July 13 Miami Herald report, the agency sees opportunities to support projects aimed at strengthening energy security, transportation networks and digital infrastructure across the Caribbean.
Browne said DFC representatives recently visited Antigua and Barbuda and indicated that the agency had billions of dollars available to finance development. He said the government initially hoped to secure about US$100 million to expand the country’s port and support transshipment operations.
However, Browne said the agency explained that it does not lend directly to governments and instead finances private-sector investment.
“What they’re seeking to do is look for opportunities for their private sector to invest in your country,” Browne said during his weekly radio programme.
The prime minister argued that such arrangements could result in foreign companies controlling important assets and repatriating the profits generated in Antigua and Barbuda.
“We may still use it, but it is not our preferred model,” Browne said. “I believe in domestic ownership. Ownership is empowerment.”
He compared the approach with concessional financing received from China for major infrastructure, including the airport and seaport. Browne said Antigua and Barbuda retained ownership of those assets and the revenue they generated while repaying the loans.
“Our development model is one of ownership and retention of profits,” he said, “not one for opportunistic investments to facilitate the repatriation of profits.”
Browne described foreign-controlled development as an “extractive” model that reminded him of the Caribbean’s colonial experience, when productive assets were owned abroad and profits were removed from the region.
He said the government’s preferred model allows Antigua and Barbuda to own investments, retain the income and reinvest the profits in further social and economic development.
Despite his concerns, Browne said discussions with the DFC would continue. He indicated that the government could consider a joint arrangement if the interest rate and other terms were favourable.
Regional leaders also discussed investment opportunities during the recent CARICOM Heads of Government meeting in Saint Lucia. Government and private-sector representatives examined ways to improve transportation and logistics, strengthen tourism connections and reduce barriers to regional trade, according to the Miami Herald report.
The DFC’s wider push places Browne’s concerns within a growing competition between the United States and China over infrastructure financing and economic influence in the Caribbean.
This article was originally published by Antigua News Room. Read the original article here: VIDEO: PM Browne Tells US Financing Agency Antigua and Barbuda Prefers Local Ownership and Retained Profits.