FORMER PRIME MINISTERÂ Owen Arthur occupies a privileged position. As the man who led Barbados for 14 years and now sits in Parliament as an Independent member, he has a good grasp of many things and his voice should be considered one of reason.
His primary concern must be about the direction of this country when he speaks on the economy, which he does with authority.
So when Mr Arthur joins the debate on the need for reform of Government-owned businesses, his views should not be glibly dismissed by opponents. He may very well be rightly accused of not instituting the necessary reforms of these businesses during his tenure and also before the great recession which hit the world seven years ago from which Barbados is still struggling to emerge but that is history.
The call for reform has come from various quarters: the International Monetary Fund, private sector leaders, the Institute of Chartered Accountants of Barbados, economists and former Central Bank governor Sir Courtney Blackman amongst others. The Government understands this, as evidenced in the talk and initial action from Minister of Finance Chris Sinckler. But, this promised reform has simply been too slow while the economy continues to reel under excessive debt.
The message of reform is not one trade unions will necessarily welcome. It is also one politicians, especially those with an eye on continuing in elective politics, may not want to confront. But the greater gain must be the country and not the individual, or a political party.
At this stage it must be about legacy; one for which a politician will be remembered for doing what’s right. It must not be one about leading the country into a long-lasting freefall. We need not look any further than Jamaica for such an example.
There can be no real economic reform programme in Barbados without seriously looking at the state-owned businesses as the evidence has consistently shown most of them to be a drag on the country’s resources. The era when these statutory corporations functioned to provide jobs for the ruling political directorate is no more. These businesses cannot be permitted to record negative returns – always below the cost of capital – on a consistent basis.
Neither must there be the practice of upholding state-controlled businesses by offering them preferential treatment or putting up barriers to hinder competition from the private sector.
The footprint of the state’s business in the economy will have to shrink and it must not only be talked about but acted upon, if we are to have a meaningful transformation of the economy.
Mr Arthur is correct by recommending that Prime Minister Freundel Stuart address all Barbadians on the urgent need to reform state-owned businesses. It is about the very economic well-being of this country. And, time is running out.
