GUEST COLUMN – An economic solution

I REFER to Dennis Kellman’s letter of yesterday’s Sunday Sun.Politicians always see constructive criticism as biased against them. This is unfortunate and is partially responsible for much of the problems we face in Barbados today.It is my opinion that adversarial politics is wreaking havoc on Barbados and the wider Caribbean. The system needs reform to produce long-term benefits.For the record, I have no political affiliations whatsoever. My opinions are my own and are always with a view to trying to do the best for Barbados in the widest sense possible.I have supported good ideas of the Democratic Labour Party (DLP), National Democratic Party (NDP) and Barbados Labout Party (BLP) and will continue to do so. I have also been critical of policies of all parties when I think they are damaging.The DLP has come in to bat on a very sticky wicket and cannot be blamed for most of the strategic issues that we must now fix. However, failure to deal effectively with the reality will determine its legacy.I favour a country where all have equal opportunity to become contributors and wealth creators.Barbados is in deep economic trouble at a time when the global economy, on which we all depend for our incomes, is also experiencing a prolonged period of major structural reform and slow growth. We also are seeing a number of very difficult social issues in our society that need to be addressed.Government has already announced its Medium Term Fiscal Strategy requiring deep cuts in both expenditure and borrowing in the next three to five years. Add to that a prolonged difficult external economic environment and weak export sectors and perhaps the picture becomes clear. We are in for tough times for several years.The good news however is that Barbados is well positioned to create a more sustainable and competitive growth economy. We have all the pieces of the puzzle, but we need to agree on the picture we want to create and then fit them together to make it a reality. It really is that simple. We need leadership and national teamwork.The picture must be characterised by:• a far less costly, smaller and much more productive Government,• a focus on global exports of goods and services produced by entrepreneurs,• much better coordinated use of all our resources – land, labour, capital (that is work as a team, as suggested by the Prime Minister), • environmental intelligence,• a modern relevant education system,• a focus on quality of life for all (and protection of the poor),• a business environment enabling steady, sustainable economic growth leading to good jobs and full employment.The transformation will be painful but is essential. What we are doing now is leading us to the precipice quickly.Creation of a non-partisan National Strategic Plan (NSP) under the umbrella of a strengthened Social Partnership might be the best way to start. The NSP should set targets for success and persons held accountable to achieve them.Government is paid for my private enterprise. By entrepreneurs who through energy, innovation, finance, labour and hard work, create businesses that employ people to deliver goods and services that the market wants at a competitive price. These enterprises and their customers pay the taxes that Government uses to provide its services to the public.Without the first the second cannot exist.I am not aware of another economic model that can compete.• Peter N. Boos is the co-founder of BusinessBarbados.com.