The Central Bank’s report on the state of the economy for the first quarter of this year has generated quite considerable debate, especially since the political parties had much to say on the topic during the recent general election.
Politics being what it is, matters of the economy will merit the closest attention from politicians, simply because such matters affect the people directly, and naturally partisan views will occupy much of the rhetoric bruited about concerning our fiscal affairs and the health of the economy in general.
But it is significant that at least there seems to be some kind of consensus emerging, albeit in small ways, about some aspects of our economic condition. Professor Michael Howard of the University of the West Indies, Cave Hill campus, has written a letter to the Press in which he declares boldly that he has disagreed in public with Mr Clyde Mascoll on occasions in the past, but that “one issue he has admired him for is the consistency and correctness of his position on the dynamic of the present fiscal crisis in Barbados”.
At least two of our more prominent economists have now agreed, publicly, on a key aspect of our economic condition; and if we can correctly diagnose the problem, then the chances of applying and finding the correct economic medicine is the more likely.
What may now be desirable is to know whether the Freundel Stuart administration agrees with the Mascoll/Howard view on the fiscal crisis, because whatever may be the opinions of others, the duty to manage the economy has been placed in the hands of Prime Minister Stuart and his Cabinet, and their economic advisers, although advice rendered does not have to be followed and the ministers only are answerable to the public.
So that even if the Governor of the Central Bank has spoken on the economy, it will be important to hear the views of our ministers on the policies to be followed to manage our economic problems.
In this context, we note that in his review, the Central Bank Governor said the “fiscal consolidation strategy must be brought back on track, and a new medium term adjustment strategy must be implemented using the current deficit as the point of departure”. Now this declaration is important. Dr DeLisle Worrell is at the centre of the economic pivot and would have a clear view of the situation. But it makes it all the more imperative that we hear from the administration on this key aspect of the Government’s policy, for, as always, economic confidence will be generated once policy is clear.
We need to restore growth to our economy and to generate jobs for our people, and we therefore await ministerial information on the new fiscal strategy, if there is to be one; so that the country as a whole can put its collective hands to the plough and pull Barbados up with pride and industry.
In the final analysis, in tandem with the policymakers, it is the people who reinvigorate economies. Technocratic solutions alone will not do, and it is the broader and essentially human touch of the politician, elected by the people and answerable to the public, that matters more.
