Leadership must ‘inspire private enterprise’

THE PRESENT HIGH LEVEL of uncertainty in the country calls for a type of political leadership that would inspire confidence in private enterprise.
But economist Professor Michael Howard also warns that at the same time Barbadians have to exercise financial prudence and curb their appetites for luxurious living since “they will have to endure this crisis for an uncertain time.”
“The strategy of “watchful waiting” is necessary to ride out this recession,” he told the DAILY NATION.
Howard suggested that the only appropriate policy action government had in the present economic situation was to continue to reduce its current account deficit and at the same time maintain the level of social welfare for the most vulnerable groups in the society.
He also said government needs to deliver a financial statement rather than a budget at this time, noting that such a statement would tell the country how government was dealing with issues relating to current account expenditures such as wages, salaries, transfers and subsidies.
He said such a statement would address government borrowing and the national debt and the serious problem of Barbados’ declining credit rating.
Howard also urged Government to resist the temptation of raising additional revenue from increasing VAT and income tax at this time.