WHEN FACED WITH DIFFICULT economic and financial times, it is sometimes quite easy for individuals, businesses, trade unions, other key stakeholders and governments to react in a manner that suggests the difficulties being encountered are beyond their control and hence insurmountable. The relatively weak responses that follow by way of economic policies to solve the problems plaguing the country are testimony to a case of “giving up”.
When I examine the experience of the Barbadian economy for the past seven to eight years, he is left with one conclusion: that those in authority simply do not have the ideas to deal with the economic crisis facing the country and are left wondering what next is possible. But what is the basis for that conclusion?
Having listened to several budgetary presentations and reports on the performance of the economy by the Central Bank, it has become obvious that despite all of the taxes imposed on individuals and businesses, pronouncements that the economy is on the verge of recovery and hence take off, suggestions that the economic policies of the Government are working and “are the right measures for the times”, the fiscal deficit is yet to be brought under control, unemployment continues to rise, confidence in the economy is fading and the prospects for tomorrow look gloomy.
Under those circumstances, what, then, is the way forward for Barbados economically? If you were to hold a short discussion with a psychologist, he would be the first to suggest that solutions to problems faced must begin with acceptance by the individual seeking help that a problem does in fact exist and he is willing and able to do what is required to fix the problem. Anything short of that strategy will have no beneficial effects to the individual. In short, the problems linger.
Hence, to begin to resolve the economic problems facing Barbados, those in authority must come clean with the public and admit once and for all that the economy is in real trouble and that the problems to be resolved would require significant sacrifice and contributions from all those who are capable of so rendering. The political tribalism that has been on display for so long must be brought to an abrupt end so that fences can be mended and the country can begin the process of restoring economic order.
The ploy of telling the public, inter alia, that the economy is “stable” and “balanced” and that our international reserves continue to remain strong, preventing any potential threat to the stability of the local currency; and that Barbados is the leading country in the region when it comes to international competitiveness has not worked to date and has no real chance of succeeding either because the pillars upon which this economy stands are as scrawny as can be.
Once those in authority declare their hands and tell the public what precisely is the true state of the economy based on current data residing at the Statistical Department, they can then seek the services of capable local economists who will then map out the way forward economically based on sound economic principles, theoretical constructs and solid statistical evidence.
All of the strategies, policies, plans, and programmes must be first discussed with key stakeholders and the public for complete endorsements. In short, the way forward for Barbados economically will be decided by the people and not dictated to us by an external body, period. Do you, Mr John Public, have a better and more feasible plan of action?
Email: bfrancis@uwi.edu.bb