IT’S QUITE interesting to note that last week, while a senior representative of the International Monetary Fund (IMF) was expressing “willingness to listen” to national and regional development strategies, leading decision-making voices in Barbados were questioning the relevance of the financial institution’s austerity driven policy. This was in contrast to the immediate needs identified for this nation.
Coming near to deeming the IMF as outdated – which is more a reflection of frustration with the institution than a reality – Minister of Finance Chris Sinckler was virtually dismissive of the IMF’s seemingly traditional, hard line approach for quick corrective measures for economic recovery.
Put that down to a clash of ideas.
Participating in an economic forum in Port-of-Spain last week, hosted by the IMF in collaboration with the Caribbean Development Bank and the Trinidad and Tobago Central Bank, the Fund’s deputy managing director Min Zhu gave the assurance of “willingness” to listen to the views/concerns at national and regional levels.
There is, of course, a sharp difference between “listening” and “responding” to strategies being pursued within the framework of national and/or regional perspectives as conditions demand.
Governor of the Central Bank of Barbados, Dr Delisle Worrell, who was among the participants, made clear his own determination to influence the IMF into some “positive thinking” on why Barbados must stick with its current five-year economic strategy.
Detractors of the current administration in Bridgetown may not wish to concur with the tough talking of both the governor and the minister in their contention that, too often, the IMF is bent on pursuing “a one-size-fits-all prescription” for countries – irrespective of nature, size or circumstances.
Nevertheless, this is a reality that several of the so-called Third World countries, including those in CARICOM, have had to battle against at varying periods of economic adjustments, that at times resulted in social and political disturbances.
In this context, it is to be hoped that the CDB succeeds in its efforts, as a partner with the IMF, the Eastern Caribbean Central Bank and the World Bank to “fully understand”, as president Dr Warren Smith said, “the dimensions of, the “unholy trinity” affecting regional economies – namely financial sector fragility, lack of fiscal sustainability and low economic growth.
The IMF’s deputy division chief Therese Turner-Jones who attracted the ire of both Worrell and Sinckler for urging speedy “corrective action” to turn around the struggling Barbados economy should, well meaning as she may be, also find time to assess the various perspectives from leading local stakeholders as reported in our Saturday Sun edition.
