THE RECENT ESTIMATES DEBATES have confirmed that there is no workable national plan to improve the national economy.
Therefore, it seems that the “society” of Barbados is being prepared to be sent over the economic cliff. Those of us who are old enough have seen this movie before. It is instructive that we watch it again in the hope that we can avoid it from being our reality.
After its Independence in 1966, Guyana embarked on a socialist experiment. Socialism essentially means that the government, and not the private sector, manages major industries.
By the 1970s, Guyana was one of the most prosperous countries in the Caribbean with GUY$2.55 to US$1. However, two decades after Independence, the fatal flaws in the socialist experiment had damaged the economy and the International Monetary Fund (IMF) was repeatedly warning it to change course. Following are two of Prime Minister Desmond Hoyte’s blustering responses in 1985.
“We have concluded that the standard IMF prescription is not only palpably irrelevant and useless, but also positively dangerous and counter-productive in our particular situation. We must resist, with all our might, the pressures that might be exerted to force us on to the IMF’s procrustean bed.”
“But let me make our position clear on this issue. While the People’s National Congress remains in office, the bauxite industry, the sugar industry and the other strategic industries which we have nationalised in this country, will never, never, never be denationalised [privatised]. For one thing, to do this would be an admission that we are abandoning the socialist ideal, and we have no intention of doing that.”
By 1988, Hoyte finally admitted that his party’s 19-year socialism experiment idea had failed, and he surrendered the Guyanese people to an IMF programme. In 1989, the IMF stabilisation programme had resulted in a 70 per cent devaluation of the dollar, doubling of the income tax rates, a ruined economy, dilapidated infrastructure, lack of supplies, reduced social services, mass emigration of professionals and 75 per cent of the population in poverty.
In addition, the government-managed industries were privatised, including mining (bauxite and gold), rice, timber, sugar, fishing and telecommunications. In the aftermath, Guyana’s citizens learned three simple lessons the very hard way.
1. Politicians rarely tell citizens the true state of a poorly performing economy.
2. Industries are not toys for politicians.
3. Politicians are prepared to ruin the economy for the sake of their socialist philosophical ideals.
Barbados also embarked on a structurally deficient socialist experiment after our Independence, and like Guyana, our politicians seem determined not to correct the fatal flaws in our system. Whenever the IMF gives us similar warnings to the ones that they gave to Guyana, the Government’s blustering response is that they do not understand Barbados’ economy.
During the recent Estimates debates, Democratic Labour Party (DLP) politicians found themselves unable to provide any meaningful solutions to the national economy. However, to their credit, they requested solutions from Opposition Barbados Labour Party (BLP) politicians, who were also elected to govern. The Opposition reportedly noted that it was not their responsibility to offer solutions.
If we intend to elect either of these at the next general election, then we are truly sunk.
Since neither the DLP nor the BLP is solving the nation’s critical problems, then the time has come for Barbadians to put their houses in order and prepare for the foreseen dangers. Proverbs 22:3 advises: “The prudent see danger and take refuge, but the simple keep going and pay the penalty.”
– GRENVILLE PHILLIPS II
