Whether by choice or chance, we in the Caribbean have for a long period of time been searching for appropriate roles for governments to play in the economic transformation of our beautiful countries.
And if truth be told, there have been some successful cases along the way on both sides of the fence. For example, during the reign of the People’s Revolutionary Government in Grenada (March 1979 to October 1983) – a situation where the government played a significant role in the management of the country’s affairs – massive amounts of benefits were brought to the country and its citizens in areas such as education, health, tourism, and agriculture.
Similar gains are evident in Trinidad and Tobago where the private sector has emerged as a powerful driver of economic activity.
On the basis of the impressive performances of the two specific countries cited, one may very well be persuaded to conclude that the issue of the role of government is not as important going forward within the context of the Caribbean. But, times are different. And as changes take place domestically, regionally and internationally, we in the Caribbean must make the necessary adjustments in order to protect the gains we have made on the socioeconomic fronts. And if that means changing the role of governments, so be it.
You see, in a world characterised by increasing globalisation, growing demands for free trade and by extension an end to protectionism and greater freedom of choice for both consumers and producers, governments all over including those in the Caribbean must take time off to revaluate their roles in the management of their countries’ economies. And in so doing, firm decisions have to be reached in relation to exactly what changes should be made to the status quo.
Given what we know generally about the functioning of markets and the fact that markets do fail, it would be foolhardy for us in the Caribbean to suggest in a broad sense that our governments should allow the private sector to lead the way in our quest to economic recovery.
Instead, we have to be much more precise. Therefore, our approach should be one based on a critical assessment of what we honestly think are the things that our governments can do better than the private sector and vice versa. In that way, we will be able to define new roles for our governments on a country by country basis since clearly no one size could fit all.
At the practical level, then, all we have to do is look at some specific scenarios and address them one by one with simple questions. Here is a sample of what I mean: What kinds of safety nets should be provided for those among us who are unable to meet basic living requirements and what are the appropriate means of financing? Should health care be managed by the government or privatised? Should governments guarantee pensions to non-contributors to say, National Insurance Schemes? Should universal free education be a thing of the past?
Are you getting the picture? Once answers emerge to these simple questions, the role of government in the management of the country’s affairs is automatically defined and so too will that of the private sector. Why not give it a try?
Email bfrancis@uwichill.edu.bb