Anyone in the Caribbean who is honest about the present state of our economies and serious about the economic prospects of our countries would have to admit that we face significant challenges that necessitate critical interventions from governments, the business community, trade unions, other non-governmental organisations and generally all stakeholders if the region is to bounce back.
In short, as it now stands, most Caribbean economies are in real trouble and it will require transparent, aggressive and inclusive action to overcome our current economic burdens.
What is probably even worse is that too many of our governments are demonstrating that they have little clue as to how to resolve the economic difficulties facing their countries. Admittedly, our countries are burdened with huge and rising fiscal deficits, clearly unsustainable public debt, low and in some cases negative economic growth rates, high unemployment particularly among our young people, mounting frustration among the population, cries of despair from several quarters, and above all governments with no real leadership at many levels!
Unmistakably, therefore, something has to give and to me the way forward is obvious. We the people have to come to the rescue of our countries and economies by getting directly involved through, for example, greater participation in the political process; by holding those in authority responsible for their actions and inactions; but, above all, by becoming more self-reliant, entrepreneurial, productive and innovative. We cannot continue to rely on our governments to solve our countries’ economic problems. We have to take bold steps to force change – change that will lead towards growing our economies in a sustained manner.
But how do we secure sustained levels of economic growth in the Caribbean? Once more, a huge question with no straightforward answer. Why? The challenge for economists in relation to this matter is generally the lack of consensus on what precisely constitutes a growth-enhancing mix of policies. Indeed, some theories emphasise the domestic resource base; others underscore the openness of markets and the extent of international trade; still, some stress the importance of factors such as human capital, infrastructure of the economy, the “quality” of government, domestic and foreign investment, and the level of international debt. The bottom line, therefore, is that we have to grow our economies based on those economic policies, plans, programmes, and strategies we know have worked in the past.
Additionally, we have to become more innovative, invest more in developing and fully exploiting our human resources, practise good governance and harness good government, construct institutions to facilitate growth and development, and practise learning-by-doing!
Taking all of these issues on board, and sooner rather than later, is critical because it is only through economic growth that our countries can really begin to raise tax revenues without increasing tax rates, ease our debt burdens, and tackle our massive unemployment problems!
To our governments, all stakeholders and the people of the region who are concerned about the future of our Caribbean economies and interested in resolving our major economic challenges, I ask, humbly: Are we on board with my suggestions for growing our economies?