Abrahm Lustgarten wrote about the economic and climate challenges facing Barbados and the country’s first female Prime Minister, Mia Mottley, for the New York Times Magazine.
Mottley got to the point: Barbados was out of money. It was so broke that it was taking out new loans just to pay the interest on the old ones, even as its infrastructure was coming undone. Soon the nation would have no choice but to declare itself insolvent, instigating a battle with the dozens of banks and creditors that held its $8 billion in debt and triggering austerity measures that would spiral the island into further poverty. There was another way, Mottley said, but she needed Lagarde’s help.
Mottley, the first woman to lead Barbados, had been working toward this conversation for nearly two years, consulting expert financial and legal advisers to develop a plan that would restructure the country’s soaring debts in a way that would free up money to invest in Barbados’s economy. Then, nine months before voting day, that plan took on new urgency as two powerful hurricanes ripped through the Caribbean 12 days apart; they missed Barbados, but one of them obliterated nearby Dominica.
In Mottley’s view, that obliteration was “like a nuclear event.” It was increasingly clear that climate change would make all the projects that Barbados already could not afford more necessary — and more expensive. The storms revealed that even the most heroic economic planning could be laid to waste in a moment. It was already obvious that every climate crisis was an economic crisis; but going forward, she realized, every economic crisis would effectively be a climate crisis. For Mottley, this meant the money she needed the I.M.F. to help her recoup wasn’t just for her people’s prosperity but for their survival.
