Prime Minister David Thompson Opposition Leader Mia Mottley
The country has been catapulted into a period of debate which the recent policy action by the government of raising petroleum prices has triggered. We expect that against the backdrop of financial volatility in the global market these discussions will continue apace. We think the dialogue is healthy for the country to ensure that the expectations of all the participants in our society are on all fours regarding the ideal path preferred for our small country to pursue given the global economic turbulence which we will have to navigate.
BU member Adrian H may not want to hear us repeat that there is not one economist in the BU household. However we do accept the point he has made previously, if economics is about the distribution and consumption of goods, then as a consumer we are qualified to speak on this heavy issue which is currently occupying the country.
Let us fast forward the discussion i.e. skip the bit about rising oil prices etcetera. Frankly we are disappointed at some of the political rhetoric which has erupted around the issue. The problem facing the country is one which must be tackled in a non-partisan manner. The truth is Barbadians have become fat cats, and have taken on a behaviour induced by a high absorption rate of materialism caused by a misplaced thinking honed over decades. Some have said it is a failure of our educational system to have inculcated a generation with the behaviour that consumption spending aligned to high personal debt is a sustainable approach to financial planning.
Leader of the Opposition Mia Mottley is entitled to her view that the shock of the high rate adjustment to the cost of petroleum products will have a negative impact on the economy. She maybe correct. Time will tell. The other side of the discussion is the need for the government to shock Barbadians to change their current consumption behaviour. Mia may want to duck her head in the sand, we do not agree with her that small incremental adjustments would address the root problem. Barbados need to create a framework which will encourage us to EARN more foreign exchange leading to improved national productivity. Supporting this approach must be an accelerated quest to uncover alternative energy solutions.
We believe the decision by the government of Barbados to raise the price of petroleum products by such a high margin was not easy for the Prime Minister. David Thompson is the member of parliament for St. John which is reputed to be the poorest parish in Barbados. Most of his constituents will be slammed the hardest by his policy to expose the country to the reality of the global financial market. Time will tell if he and his advisers made the correct decision.
It would have taken a fearless leader to have taken the decision which Thompson announced a couple nights ago. To ensure that the country navigates this challenging stage of our economic journey it will be important to do so as a collective. There is nothing wrong with with the political parties engaging the country in debate on this important issue, but it must be done “responsibly”. Key players in the country like the NGOs, media and other private sector agencies, unions and others must ensure the country is able to defeat the challenges presented in the new global economy through a high level of collaboration and partnership not seen before in Barbados.
The message embedded in this blog is targeted at our Leader of the Opposition Mia Mottley. We think that she has the opportunity to make a contribution alongside her youthful counterpart (David Thompson) to demonstrate to the world the reason why Barbados has been seen as a model country through the years. It is important that Mia unshackle herself from the approach which places uneven importance to economic equity at the expense of the incremental value to be had from policies which promote social cohesion in our country.
World news has started to report of riots in Haiti and other places. The current crisis caused by high petroleum prices is being exacerbated by a looming global food shortage. The time is now for Barbadians to show how the benefit of our rich educational system will give us a comparative advantage in the world.
The blogmaster invites you to join the discussion.