The current condition which Barbados faces is not an ordinary cyclical crisis. Instead, the country faces a deep structural crisis, the transcendence of which will necessitate an overhauling of the entire edifice of the post-colonial social contract.
That social contract had witnessed the creation of a welfare state which cushioned the poor and vulnerable, it provided avenues for the development of a middle class through the access to free tertiary education, and it provided protection for the growth of private capital through he development of a supportive legislative framework and non-antagonistic, pro-business governmental policy.
It was sustained through trade protection by Britain, which created space for earning foreign exchange and gave political legitimacy to the independence project. That was the Errol Barrow model.
The Barrow Order began to unravel in the early 1990s when Britain ended its protection due to European integration and the emergence of the neoliberal world order as seen in the rise of the WTO. It was premature then to speak of a structural crisis, since a mere “adjustment” to these realities was what was required.
Indeed, it was Barbados’ successful adjustment to the new realities that accounted for its economic recovery and growth between 1994 and 2008. In that period, Barbados opened itself to global integration, facilitated the free market and foreign direct investment, and repositioned itself as a player in international financial services. In short, Barbados had embraced neoliberalism. That was the Owen Arthur model.
Different now is the fact that global neoliberalism is itself in crisis, and the space for further adjustment has diminished. Barbados has lurched from adjustment to neoliberalism to adjustment to neoliberal crisis.
Despite the evidence of failure, policymakers stubbornly pursue more vigorously more of the same strategy responsible for the crisis.
A clear indication of a structural crisis is often seen in the bankruptcy of ideas. Barbados witnessed such a moment when the neoliberal finance minister (pot) was calling the neoliberal opposition leader (kettle) black. There was no alternative available, since none existed.
A structural crisis, however, cannot be resolved by governmental policy alone. It cannot be resolved by higher taxes, since there are limits to which a population can be taxed. It cannot be resolved by waiting for an improvement in the global economy, since that would leave the symptoms of structural weakness untouched.
History has shown that in such moments, only a complete reordering of society upon new foundations can bring resolution. The last time there was such a moment, the disenfranchised working class entered the political stage, after much upheaval. The fledgling university too was there to provide philosophical guidance.
So far, our thinkers have not filled the current intellectual void. They must re-emerge, otherwise the poor and working class will be the main losers. The signs are already there. History is waiting.
