The economy certainly doesn’t seem to be out of control. In these uncertain times, you can’t really realistically expect Barbados’ economy to grow by about three to four per cent. After all, very seldom did the economy grow by more than five per cent and as long as it is growing, you have to be thankful. – Sir Courtney Blackman, former Governor of the Central Bank of Barbados.
The recent interpretations by Sir Courtney Blackman of the island’s economic review by the Central Bank is extremely telling. This country has responded to the financial meltdown in a manner that has not seen austerity measures implemented, as was the case across some of the Euro zone member states.
In the Euro zone, we witnessed the cut backs in public service workers and a roll back of welfare services. We saw the massive dislocation and protest that erupted across Europe.
This option is one that we have guarded against despite the many pleas from the Opposition to cut back on public expenditure.
Instead, we are pressing ahead with the construction of new schools and the upgrade of existing plants. While, in health care we are upgrading and building new polyclinics. We are pressing ahead with the construction of a new hospital. There will be NO advice sought from the Opposition in this respect. We are clear, as a party that people must come first.
We have put a plan in place from Day 1 and we have stuck to the script. Our Medium Term Fiscal Strategy is working, as we continue to pay close attention to our spending without compromising the quality of life.
The recent comments by the Central Bank Governor, Dr Delisle Worrell, indicate that our fiscal debt reduction is in line with the targets set in the Medium Term Fiscal Strategy.
Minister of Finance Christopher Sinckler in an address to the Accounting Professionals recently indicated our country had risen from a four per cent decline in the gross domestic product [GDP] in 2009 to a 0.3 per cent growth in 2010 with a potential 0.5 per cent growth output. Our deficit was reduced from nine per cent of GDP in 2009 to around 5.3 in the last quarter.
In the area of tourism, we saw in the last two years a record increase in tourist arrivals after a dip in 2009. Of course, these facts mean nothing to the pundits.
The picture painted comes against the background of the International Monetary Fund’s (IMF) recent comments that “the world economy was in a danger zone”.
The IMF have had to recast some of their outlook for growth in the world economy. The new forecast speaks to a growth rate of 3.25 per cent in 2012, down from an earlier forecast of 4 per cent, while in Britain the growth forecast has also been cut.
What then of the prospects for Barbados?
According to the Governor our immediate policy priority will be to ride out the international economic storm and keep our economy stable. He further opined the growth prospects will be tempered by the unsettled international climate and that our expected rate of growth may be one per cent or less. Our drivers are anticipated to be tourism and the construction of new houses.
The discourse that is taking place in public policy space is eluding the Opposition. They have continued in their calls for cuts in the welfare expenditure without spelling it out. But we are aware, the Opposition is bent on peeling back the act of free bus fares, Constituency Councils and the current structure of the catered summer camp programmme.
We implore Barbadians, don’t be hoodwinked by a voter padding party. Stay the course with the Democratic Labour Party as we continue to put people first.
