THE RECENT DECISION to get the private sector involved in the collection of garbage, and the gradual expansion of private operators in the public transportation sector, is a clear message from the Freundel Stuart administration. It is promoting a greater role for free enterprise in the economy without shouting the merits of privatisation. After all, this would be contrary to much of what it opposed during the last general election.
Yet, no one can denounce an expanded role for the private sector in aspects of the economy, especially since the Government has neither the money nor the capacity to do the most efficient job. The stark reality is that the welfare system promoted by the social democratic political parties which have governed Barbados since Independence, is no longer financially affordable.
This is why it makes no sense dipsy-doodling on the issue of privatisation. It is not a bad word, and is something which has been successfully undertaken by many governments especially when the public purse is under pressure, as is the case with the Stuart administration, which must still raise revenue.
What is required from all businesses, public or private, is improved efficiency, lack of political interference and competition. Government should place its emphasis on being a strong regulator.
Not every state agency should be sold since there is a clear case for Government to be involved in the provision of health care, low-income housing and overseeing urban and rural renewal. But there can be no justification for it to remain in media, as a provider of natural gas or even the ownership and management of stadia.
While most Barbadians know a range of state agencies which should be sold off, it is the process of divesting them which must be undertaken transparently. It should also be seen as giving a new class of business people the opportunity to own a stake in these privatised enterprises. The nation must not be left with a feeling that the system is unfair, biased and even corrupt. Neither does it want cronies primarily to benefit from the proceeds of divestment.
It would therefore be good if Government publicly outlines a written strategy which can clearly state the social and economic criteria for dealing with state enterprises which ought to be disposed of in the quickest possible time. The argument as advanced by some, including Minister of Finance Chris Sinckler, that these enterprises must be made financially sound before being placed on the market, should be debunked since the reality is that some will never reach such a state, given their level of liabilities and inefficiencies.
Given the dire financial straits in which Government finds itself and the need to end continued transfers to too many burdensome operations, there can be no incremental approach to the issue of privatisation. Clearly, no one should try to maintain the status quo.