Over the last two months, what matters most switched its focus to some social issues, along with a commentary on the success of the Barbados cricket team.
Apparently, my views on some of the issues offended some people – which I expected; indeed, that was the intention. But the most astonishing comment came from a former teacher, who told me that the article on the 11-plus examination was the first with which he agreed since I have been writing the column. I was shocked but not surprised.
The truth is that Barbados is much more politically polarized than most care to admit. Therefore, the notion that well reasoned argument will suffice in winning the confidence of reasonable individuals is a pipe dream.
No matter how well prosecuted a case is against a Government, rest assured that between 35 and 40 per cent of those who vote will ignore the evidence. In short, it makes no difference on either side of the political fence.
The question is why? The answer is self-interest. There are 30 candidates but thousands of party members and even more party supporters. The reason for choosing a particular party is predominantly our socialization and this is where the polarization starts.
This leads to the reality in politics that the messenger is as important as the message. The messenger could literally be an empty vessel who keeps the most noise that is properly packaged. The packaging varies from having parochial to national appeal.
As happened in the recent general election, it is possible to win without addressing any significant issues of national importance. This is especially so when one issue now dominates at the parochial level. In the case where what ought to be the real national message is suppressed or virtually ignored, the messenger becomes even larger at the constituency level.
Not surprisingly, the country has gone into an even deeper sleep. It has also gone into a greater state of economic confusion, where the country’s chief economic spokesmen are contradicting each other. In the meantime, the private sector continues to feel the pressure caused by uncertainty and insecurity.
On the one hand, the home-grown private sector was told that concessions can only be given to businesses earning foreign exchange. Yet, foreign enterprises have been granted concessions to sell and compete in the local market without any focus on earning foreign exchange.
On the other hand, Government is denying that its fiscal strategy has failed; however, all the evidence indicates failure. None more so than evidence which surfaced in September of 2011, when the Central Bank admitted that commercial banks have expressed little appetite for further investment in Government’s long-term instruments.
In essence, the banks have lost confidence in holding long-term Government paper because the economic future is uncertain.
For this year alone, $350 million of debentures (long-term paper) is expected to mature and it is uncertain whether or not the paper will be rolled over or purchased again. Given the uncertainty, the banks may prefer to buy short-term Government paper, that is, Treasury Bills.
This is why Parliament recently approved increasing the limit for Treasury Bills by $1billion.
Furthermore, the decision to force credit unions to put money back into the commercial banking system is about financing Government spending and nothing more. It is a sad day in the management of the Barbados economy.
In addition, the recent change to the interest rate policy is also designed to make purchasing Government paper more attractive. This is all part of the strategy that is passing as monetary policy. The only intent is to find a way to help finance the Government’s excessive spending.
These kinds of issues are not sexy in the political sense but they are dangerous and deceiving. It’s just a matter of time! The words to a very popular song which also has the following words “after I gave you everything I had, you laughed and called me a clown. Remember in your search for fortune and fame what goes up must come down”.
No matter how politically polarized this country is, the most partisan among us must recognize that the country needs leadership and management now rather than later. Unfortunately, some normally very reasonable people will argue otherwise.
Time has brought the facts into all households where they matter most. The crisis is no longer about the economic data; it is a crisis of confidence.
• Clyde Mascoll is an economist and Opposition Barbados Labour Party spokesman on the economy.
