It is now beyond argument that the local economy is confronted by some of the most persistent challenges that it has ever faced, and that political will and informed policy choices will be required as part of the mechanism for the solution to our problems.
There were some clouds hanging over the economic landscape shortly after the last decade began; but the change of administration in 2008 brought with it the prospect of new energy to tackle the threats to the economy. The voters were entitled to change the administration, but they were equally hopeful of a lower cost of living and economic improvement.
The problem now is that over the past eight years the situation and the clouds have become darker and in this, the year of the 50th anniversary of our Independence, the deficit is still too high, transfers from the central Government to the para-statal entities are still a major drain on the Treasury, and although the Government has at various times announced and modified the medium-term strategy, the expected results have not been fully realised.
The issue of privatisation remains the veritable elephant in the room, not least because it may mean some loss of jobs and no government, of any colour or kind, has any pleasure in causing the unemployment of its people. Yet the exercise of some political will is necessary if we are to bail the water out of the economic vessel.
We need to hear the Government spelling out the details of any privatisation programme, if any, that it proposes to undertake. We cannot afford to play politics with this issue.
It is true that some economic volcanoes, like the Four Seasons project and the Clico collapse, to mention two, exploded on the economic front but the job of a government is to deal with the usual and rise to the challenge of the unexpected.
As things stand now, the challenges to our economy are increasing and time is becoming of the essence. The opening up of Cuba is likely to be an exciting and enticing factor in our major tourism markets, and we must be ready for the competition before that challenge becomes a reality. We must not lose market share, especially at this time or at all, since we cannot afford the loss.
The political arguments that will be made by the Opposition are par for the course, but the emergence of proposed third political parties suggests that the concerns go beyond the ordinary limits, and is as much a statement on the perceived performance of Government as it is agitation for solutions to be found as a way out of our present predicament.
Complacency cannot be part of any menu at this time, especially since the fallout from the recent leaking of the Panama Papers is likely to put all international financial centres in the smaller developing countries under scrutiny, and we must be on guard against any collateral damage that may ensue.
To put it bluntly, our country, which once punched above its weight and which earned the praise of critics at home and abroad, is now struggling to generate sustainable growth and contain the fiscal deficit.
Yet the battle can be won, if the people are taken into the Government’s confidence, together with the exercise of political will.
Inaction is not an option and steady as she goes will not do it now.
