Judging from what has been happening in Caribbean countries that have followed the International Monetary Fund’s (IMF) prescription of devaluation, the results have been poor. More often than not, devaluation has led to more devaluation with devastating consequences for especially the poor, and dire consequences for the country itself. This has happened in countries despite their natural resources. Now we have an IMF prescription without getting foreign exchange help.
When devaluation is considered in the context of Barbados, the prospects are even more catastrophic. People in Jamaica, Trinidad and Guyana have been able to survive because they resorted to feeding themselves, but with the exception of Trinidad, oil was a factor contributing to their detriment – as a matter of fact, oil accounted for almost all of Jamaica’s foreign earning capacity.
Thus when we look at other Caribbean countries, devaluation is not the preferred route. For us devaluation would be suicidal. Our food bill that is already high would be unsustainable since we would be chasing after the same goods with less Barbados dollars. There would be the never-ending race to catch up. A different formula has to be worked out in order to approach the crisis that has overtaken us.
To survive we must feed ourselves. That is a priority. Any negative associated with tilling of the soil, cane-cutting or cotton-picking must be gotten rid of now. Agriculture is paramount. More resources have to be assigned to that ministry, even if you defer paying Clico policyholders. Full steam ahead for sugar cane so as to reduce the importation of sugar; make ethanol, animal feed, energy, enhance the landscape.
The present drive towards alternate energy is a step in the right direction, a factor that Emera must understand.
Now we have to work on priorities. The Civil Service has to be dealt with. Rationalization by early retirement, people taking packages or reduced hours. The hospital crises must be resolved as it concerns life or death. The Wild Coot is not convinced that the problem is the elimination of waste. When outstanding bills have accumulated to the extent that is now current, something is wrong with management of the inventory. And if the inventory has been properly handled, up-to-date payments for orders may be the case.
In order to develop a strategy, you must confront the problem(s).
Funds to run the hospital have been cut. Complaints from doctors are coming fast and furious; we are told not to panic, all is well.
The $500 million bond offer has been withdrawn long before the United States Congress/Senate latest crisis, yet the impasse has been touted as causing the lack of interest in our junk bonds. Let us wait and see who will lend us money to finance negative growth for the next two years. Investors are looking to see if we will do something sensible; if we will cut employees from the Civil Service, if we will cut the size of the Cabinet, if the parliamentarians will take an uppercut. The minister announced that he is prepared to do these things. Let us see if he will be contradicted by a higher-up.
Already we see what people perceive as a fractured Cabinet but in reality may be a ploy feeler to show that some people in the Cabinet still have progressive ideas; that while the citizens are thinking that the Cabinet is sedulously going down the wrong path, there are clear and level heads still within. Maybe it is a power struggle, and there will be a future vacancy in the leadership with people positioning themselves for consideration.
The open deviation from the Scripture text may be deliberate. Such a ploy would only be stupid because most people have been saying for the longest time, since 2008, that we must cut costs. If there is confusion at the top, didn’t the preacher John the Baptist lose his head at the request of a lady?
 Harry Russell is a banker. Email [email protected]
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