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A Question Of Rebalancing The Barbados Economy

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Prime Minister of Barbados, David Thompson

President Barack Obama has set tongues wagging by ordering federal agencies to zero in on export promotion, expanding trade-finance opportunities for small- and medium-sized businesses, and moving to overhaul an outdated export-control system. The US economy remains the world’s largest but the global recession which was engineered by the stupidity on Wall Street continues to be an albatross. The initiative by the Obama  Administration to double exports in five years will require a reformatting of the relationship with China. Obama has called for China to move to a more market-based currency as part of the Group of 20’s drive to rebalance the world economy.

During his confirmation hearing last year Treasury Secretary Timothy F. Geithner signalled a more confrontational approach toward China, bluntly stating that the new administration thinks Beijing is “manipulating” its currency and it will act “aggressively” using “all the diplomatic avenues” to change China’s currency practices. It will be interesting to watch the response of China to the pressure from Washington to label it a currency manipulator. According to a report in the Financial Times the USA will announce its position on this matter April 15.

President Obama seems to be serious in his dream to rebalance the US economy. The US Department of Energy granted a US$1.37 billion loan guarantee to Brightsource Energy last week which could help clear the way for over 15 gigawatts of solar thermal power projects in California. It seems Obama’s failure to introduce the healthcare reform he envisioned on the political campaign has spurred him to focus on some other more relatively achievable objectives. Whether Obama succeeds to rebalance the US economy it is interesting to note he sees the need to do so.

Last week the government of Barbados hosted yet another  public private sector meeting. The objective to bring the key players together who are responsible for driving the Barbados economy to brainstorm and build a cohesive approach required to lead Barbados out of the current economic recession. There is also the hope that Barbados can reposition the economy to recognize that its traditional productive sectors i.e. tourism and services maybe challenged in a post recession period. It was therefore a little disappointing to scan the Draft Medium-Term Development Strategy 2010-2014 document and to note the lack of creativity to encourage initiatives to generate foreign exchange. The continued reliance to increase foreign exchange revenues by directing significant resources at the traditional productive sectors at the expense of other strategies is disappointing. What the draft strategy signals to BU is a business as usual approach. Of course tourism and services will continue to play a significant role under the hood of our economy but the relationship between increasing foreign exchange outflow and our two main productive sectors is scary.

BU appreciate the degree of difficulty required to manage the tiny open economy of Barbados in the current global economy. To quote BU family member Bush Tea, “any idiot can sail a ship on calm waters” It is regrettable the Arthur government did not pursue an initiative like renewable energy in a serious way which would have acted to decrease the import energy bill and serve to mitigate our vulnerability to external shocks. Chief Marketing Manager Stephen Worme has been convincing in his argument that it is still cheaper to buy energy from the BL&P than to pursue alternatives. BU understand your position Mr. Worme.  It maybe cheaper if we do a product comparison BUT we have to examine the big picture of opportunity cost, hint hint.  We will revisit this point on another blog.

Making a strategy document operational is always a big challenge and we hope the Medium Term Fiscal Strategy 2010-2014 and the Draft Medium-Term Development Strategy 2010-2014 will make for an exception. A comment posted to BU may have placed the challenge to implementing the documents in perspective.

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42 responses to “A Question Of Rebalancing The Barbados Economy”

  1. freewilly Avatar
    freewilly

    Funny you should mention Timmy,here is what he and his pals have been up to while the whole world is crumbling around them.
    http://www.sott.net/articles/show/204689-Conspiracy-Fact-The-Business-Roundtable-The-Most-Powerful-Corporate-Business-Club-Most-Americans-Have-Never-Heard-of

  2. Albert Avatar
    Albert

    Tell me something, David: Is it only government’s responsibility to come up with new ideas/management in a crisis? What roles for that bright army of creative private sector souls?

    And not to mention the battalion of bloggers who – by their posts – obviously have better ideas than those in government. Do they have a duty to get from behind their computers?

    Other than PDC – which is at least original in thought by depends on winning a government – what idea in three years can a BU blogger claim he/she has produced from inception to success?

    Where does growth come from? One entrepreneur followed by another.

  3. David Avatar
    David

    @Albert

    That retort will not wash. For too long we have had that bullshit tossed back at the citizenry, tell us your solution! We have even observed the call in shows adopting that position. If we have an ordinary citizen who lives in Mile and a Quarter who believes the regulating of the PSVs needs to be improved of course Albert will ask, tell us your solution. If you have read BU for long enough you should be able to collect an arms length of suggestion. If you give us the resources we can outline a project document for you.

    There is no excuse that in this Draft Medium-Term Development Strategy 2010-2014 the words foreign exchange are mentioned 14 times with 7 related to actual foreign exchange growth initiatives.

  4. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    It is primarily because of the way how this so-called Barbados economy is structured and how it functions that Barbados will from time to time have to go through recession/depression.

    We in the PDC have previously argued that it is the laws, policies, structures, cultures, etc. related to –

    1) TAXATION,

    2) INTEREST RATES,

    3) MOTOR VEHICLE INSURANCE ( OTHER KINDS OF INSURANCE TOO),

    4) ENTITIES AGREEING REPAY MONEY/VALUES THAT HAVE BEEN USED FOR PRODUCTIVE PURPOSES,

    5) EXCHANGE RATES PARITIES WITH THE BARBADOS DOLLAR,

    6) IMPORTING THE “PRICES” OF GOODS AND SERVICES (NOT THE ACTUAL GOODS AND SERVICES) FROM OVERSEAS,

    7) LOCAL GOODS AND SERVICES HAVING TO FETCH FOREIGN “PRICES”,

    8) THE SELLING AND PURCHASING OF LAND RIGHTS/INTERESTS FOR EXCESSIVELY HIGH MONEY COSTS ACROSS THE BOARD,

    9) THE RENTING OR LEASING OF THOSE SAME LAND RIGHTS/INTERESTS FOR EXCESSIVELY HIGH MONEY COSTS ACROSS THE BOARD,

    among so many other wicked anti-development anti-masses and middle classes laws, policies, structures, cultures and the actual systems/subsystems themselves ( defined as Taxation, Interest Rates, systems, etc.) and their very enormous unwholesome effects on the income, production, distribution, expenditure, investment, real savings, money circulation, debt, etc. structures and processes of the country – and which altogether outline how this so-called economy is structured and how it functions in Barbados – that are among the real causes of Barbados having to go through another severe localized political economic depression at this juncture.

    Also, the countless number of stupid decisions and policies of DLP/BLP Governments over the years and many of those equally stupid decisions and policies of the private sector relative to the above mentioned systems, structures and processes, are ones too that have tremendously contributed to Barbados going every single political economic recession/depresssion since internal self government/independence.

    However, an indepth analysis of all these above mentioned systems – except 6 and 7 – and all the other relevant systems will show that there is a very dangerous destabilizing disgusting feature running through each of them – and it is this – the dreaded providing/collecting by persons or entities within esp. various parts of the state/private sectors, including the financial private sector, and the personal sector of this country of an unverifiable amount of money/income value from out of incomes previously generated on a wekly/monthly basis in the country whilst at the same time this is being done NO ACTUAL PRODUCTION OF MARKETABLE GOODS AND SERVICES IS TAKING PLACE.

    Indeed, this is a recipe for total political economic disaster waiting to happen at any time in Barbados – as that – whenever it is seen that many people and other entities in Barbados are themselves mainly moving around mere MONEY/VALUE FROM POINT TO POINT, whereas at the same time NO ACTUAL PRODUCTION OF MARKETABLE GOODS IS TAKING PLACE, it is a disgraceful situation that will – in the final analysis – help to create a great number of disfavourable instances in the country.

    That is why too much money gambling is NOT and CAN NEVER BE good for this country, and why Barbados must move as quickly as possible to deemphasize virtually all the significances associated with this very unproductive unrationalist international financial services sector – which is as a result of the belief in and the perpetration by some people in Barbados and overseas of a grossly naked fraudulence – that money/value can make money/value and that money/value can cost money/value – we are not here talking about those who by working or doing business really earn incomes from out of the sector – but we are here talking about those who flagrantly invest hordes of money in this sector who are perpetrating that kind of vicious false ideology.

    Anyhow, some of these unfavourable instances alluded to above are to be found:

    1) where many domestic productive sectors of the country will be producing so much less in goods than desired ( as a result of TAXATION, UNNECESSARY FINANCIAL INSTITUTIONAL COSTS, PORT COSTS, EXCHANGE RATE COSTS, etc. ) and by extension so much less in money/income/value than wished for ( TAXATION, UNNECESSARY FINANCIAL INSTITUTIONAL COSTS, HIGH COSTS OF DOING BUSINESS, etc) on a weekly monthly basis, whereas those and other sectors of the country will be consuming so many imported goods and services than necessary ( which is inherently good but made unnecessary as a result of many investment conditions for manufacturing many of such goods being unfavourable, unfair international trade rules, competition) and by extension spending so much in money/income cost on such than is warranted ( TAXATION, UNNCESSARY FINANCIAL INSTITUTIONAL COSTS, PORT COSTS, etc.) on the same temporal basis;

    2) where many productive and other sectors of the country will be spending so much more money/value than necessary on overall goods and services ( which is inherently good but made unnecessary through TAXATION, PORT COSTS, EXCHANGE RATE COSTS, HIGH MARK UPS, etc. ) on a weekly/monthly basis, whilst at the same time earning far less than ought to in income from goods and services produced locally and sold locally/externally or goods and services imported and sold locally ( through HIGH MARK UPS, TAXATION/ FINANCIAL INSTITUTIONAL COSTS/ HIGH COSTS OF DOING BUSINESS LOCALLY ) on the same temporal basis;

    3) where many importing sectors will be importing so much more in money value ( not really the actual goods and services – which is inherently good however – but really the overseas “prices” of goods and services which is obnoxious ) than can properly be sustained or absorbed in the so-called local economy on, say, a weekly to yearly basis, (and added to those, there are these scandalously obscenely high port costs, exchange rate costs will help to push up the cost to the final consumers of goods and services, and which if continued means demand for many of those goods and services would drop), ( CHECK THE MOTOR VEHICLE IMPORT BUSINESS – IS THE RATE OF MONEY CIRCULATION FAST ENOUGH ANY TIME TO PROPERLY SUSTAIN THE INCREASING NUMBER OF VEHICLES AND THEIR OWNERS HAVING TO HAND OVER INCOMES FOR TAXATION, LOANS, MOTOR VEHICLE INSURANCE, FUEL, MAINTENANCE COSTS IN BARBADOS? nope ), whilst the exporting sectors will NOT be exporting as many goods and services as they ought to on the same temporal basis ( We in the PDC do NOT compare imports with exports however), ( HOW CAN MANY EXPORT MANUFACTURERS COMPETE PROPERLY FOR LOCAL MONEY/INCOMES WITH THIS STAGNATING IMPORT-DRIVEN MOTOR VEHICLE INDUSTRY?) and

    4) where there will be the leaking of too much foreign exchange by the foreign exchange using sectors (more than warranted) in the long run, whilst the foreign exchange earning sectors will be earning less foreign exchange than desired ( not comparing the activities of these sectors with each other)

    What such circumstances mean is that, et al, there will be greater and greater productive debts and investment losses coming about in the long run in this country and which will make many opportunities for doing trade and investment business within and with the country more and more difficult, depressing, and onerous. These same circumstances, of course, equate with this current localized political economic depression we in Barbados are presently experiencing, and, indeed, are such they clearly characterize clearly this very regressive stagnating stage in which Barbados is in now and will be in for a prolonged period of time.

    All is not lost though, as that – with the REMOVAL of many of the above mentioned systems, or the REFORM of the others, and their replacements with the proper systems, or their reforming with the proper objectives in mind respectively, and too with the entire removal of the DLP/BLP from the political landscape of this country, there will therefore emerge every possible indication that Barbados will NOT ONLY be able to avoid political economic recessions depressions – which take their greatest toll on the poor masses and the marginal middle classes – well, barring Acts of God, or some kind of world war, trade war or such like – BUT ALSO that Barbados will be thereafter able to achieve sustained average annual real upward growth rates in production and distribution in the region of 8 – 10 % for a very long time to come.

    So, there you have it!!

    Down with the Damned DLP and the Blasted BLP!!

    A special good morning to lip gloss.

    PDC

  5. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    A few errors – which are inadvertent really – have been made in the above post. However, only the ones that are important as to correct any false impressions of what we had intended to write shall duly be made clear as to the meaning we would have intended to convey.

    1) in number 4, it should have been ENTITIES AGREEING TO REPAY INSTITUTIONAL MONEY/VALUES THAT HAVE BEEN USED FOR PRODUCTIVE PURPOSES.

    2) Fifth paragraph – 4th – 5tth lines – It should have been NO ACTUAL PRODUCTION OF MARKETABLE GOODS AND SERVICES IS TAKING PLACE.

    Albert,

    Thanks for your observation about the ideas we are or have been promoting.

    These ideas ( like the Abolition of TAXATION, INTEREST RATES, MOTOR VEHICLE INSURANCE, EXCHANGE RATES PARITIES WITH THE BARBADOS DOLLAR etc. ) are part of our vision for this country and greater humanity.

    Actually, coming up with logical rational frameworks and arguments in support or in the advancement of these whenever sometimes can very absorbing and time-rendering and methodical.

    Many of these philosophies and principles, call them that, have come about through critical thinking and divine guidance.

    And, what has been very important too to the coming into existence of these philosophies and principles has been our coming together as a party and agreeing on how to transform these ideas – which are part of this vision – into many of the clear consistent coherent well studied philosphies and principles that many persons have seen so far.

    And we have done so in a context whereby we have critically looked and have been looking still at much of the society, polity and the so-called economy of this country and much of the history of those, and much regional and international societal, politics, and so-called economic issues and much of the history of those things too and how these aspects and how they have essentially changed or not – and still essentially change – and how they would long have positively or negatively been affecting or NOT – or do still positively or negatively affect or NOT – the life chances of masses and the middle classes in this country.

    We are of course therefore looking to the future keenly aware of positive impact of these ideas and philosophies and principles can have on the local, regional and international societies, politicies, and so-called economies.

    And during/after these intellectual philosophically demanding processes, we have been able to apply or have been applying many kinds of agreed-to-political ideational structures to them and then promulgating them – in different communication modes – to many members of the public for their agreement, acceptance, understanding, or the opposites.

    Albert, the fact is that we are so obviously keen on putting in place many of these ideas for the greater benefit of the people and the country and even greater humanity!! And, the truth too is that for us many of these ideas represent the path forwards and upwards for this country and for many productive sectors of this country too away from stagnation and decline.

    So, for us, then this entails our party doing as much as it takes to win the government, like getting the concrete support of many people, esp those individuals and groups of individuals and other entities who would be interested in them and the way forward for themselves, many others and this country, never mind their ages, social statuses, professional backgrounds, religious persuasions – with some exceptions of course.

    Therefore, it is best when we and those who have long readily identified with, who have long steadfastly supported them, who have fairly well understood their political historical bases, and even those who have recently come on board – so to speak – are seen by many people in Barbados as the ones who will continue to lead the way forward for these ideas, philosophies and such like, up to the point of time of their reaching the fullness thereof ( their being implemented), since these ideas and this wider vision invariably embody the many ways we in the PDC, our associates and supporters view and experience life in this country.

    Our course, many sacrifices have been made by us, and in the interests of the masses and middle classes and the country.

    It is like the PDC has sworn an eternal duty to help with the affairs of these people and the country and to do so in the names of many of our forbears. So, therefore, we must continue to give our best – nevermind our resources constraints – and be very selfless and dedicated to these people and in service to country. And, believe it our party never comes first in such affairs.

    PDC

  6. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    Inadvertency – paragraph 7 – lines 1-2 should have read in part, “……….looking to the future keenly aware of the positive impact that these ideas and philosophies and principles can have ….”.

    PDC

  7. Hopi Avatar
    Hopi

    Had the medical community in Barbados been honest [or maybe knowledgeable] they would be among the first at the round table advising the government on this vexing problem.

    One way in which some balance can be brought to the nation’s purse is by reducing its food import bill. If one really check, one would see that a lot of the food coming into Barbados is straight up GARBAGE. It won’t do a body any good. Perfect e.g is the so-called soft drinks imported from Trinidad [which are nothing more than hard drinks because they are loaded with enough sugar to produce mucous which is a major disease catalyst] am I correct GP? Of course the exporter will squeal and look for a way to squeeze Barbados, but this is not the time for Political Correctness, this is more about the best interest of the nation. This is where you separate sheep from goat or Leader form politician.

    Barbados still has a little land left to produce enough food to feed herself. The body doesn’t need all that sugar and white flour. Doctors need to advise the people to eat to feed their cells and not to full their guts hence they should consume more fruits and vegetable. Eat homegrown and cut back on garbage import. And in this way you’d also reduce the medical bill of the nation and also reduce the importation and dependency on pharmaceutical poisons that are way over-priced.

    The Creator has already blessed us with everything we need.

    If one were sit around and wait on Steve Worme, it looks like one could be waiting for another umpteen yrs while BL & P find more ways to fleece. In this way he gets to stay in business and collect a fat salary. According to his language, there is absolutely no commitment and every other detail seems to be conditional on some other external & extenuating circumstance. How long was this been in the ‘talk about’ stage?
    —————

    What happen to science teachers in Barbados? What are science labs used for? Are they no longer interested in encouraging students to try out their out own thing…… hook up some wires to a couple panels and eventually after repetitive trial and error someone will find a way to make that SUN energy work for the nation.

    Or is the education system really that bankrupt only catering to the needs of the foreigner?

    ——————–

    Washington can pressure China till the cows come home, China owns the US. But what China needs to do is stave off the same blood-sucking elite that has sucked the blood out of the US economy and make sure that their tentacles never get in her veins. [I hope this is not wishful thinking]. They are mad as hell at China because she would not agree to Washington and the zionist pact to squeeze Iran. So let them continue to bark.

  8. David Avatar
    David

    Tomorrow the debate on the 2010-2011 Estimates will start up in the House of Assembly. In light of the worst global economic crisis to afflict the times this debate may signal if our politicians are serious or not.

    Please click on the links in the sidebar to follow the debate as well as see the Estimates Heads.

  9. Inkwell Avatar
    Inkwell

    Since PDC refuses to do it, I will do my best to explain some of their announced policies for running the country after they win the next election.

    1. ABOLISH TAXATION. Boy, things gine be sweet. No income tax, no VAT, no road tax, no land tax. Cost of living come down by 50%. Government gine provide all the services, free secondary education, free medicals, fix and build new roads, pay the civil servants by printing money with the new printing press they ordering from the New Nighted States. (How they paying for it explained below).

    2. INTEREST RATES. All interest rates getting abolish. The new interest rate gine be 0%. That mean that when you deposit you savings in the bank, you getting 0% interest rate. But since inflation also getting abolish, that don’t matter. If you borrow money from the bank, they got to charge you 0% interest rate. No, that wrong, if you borrowing money for productive purposes, you getting 0%. Wait, they can’t LEND you money for productive purposes, they have to GIVE it to you. I forget, you don’t have to pay back a loan, (which is really a grant) which you use for productive purposes. Wait, I getting confuse, since nobody aint depositing nuh money in de bank because they getting 0%, the bank aint got no money to lend (give). No,no, no, that wrong, we gine mek them lend (give) their own money. We passing a law for that. Better yet we gine let them import their own printing press from the New Nighted States so they can print their own damn money. Solve that problem.

    Let me skip to number five, since three and four are so simple, any idiot can understand them, and number 5 is really the one that got people confuse.

    5. ABOLISH EXCHANGE RATES PARITIES WITH THE BARBADOS DOLLAR.

    Now, dis is de biggie. Doan mind all dem foreign countries wanting to sell we tings in Euros or Pounds Sterling or US Dollars. All o dat we abolishing. Let me explain how it gine work as I promise in Number 1. to tell you. When we order the printing press from the New Nighted States to print the money to run the country and they tell we it cost $250,000 New Nighted States Dollars, we telling dem. “Right, doan tell me no shite, we paying you in Barbados dollars, 250,000 of dem, and if you will wait until after we get the printing press, we will pay you IN CASH. You can’t want it better that dat.”

    You see, We, PDC have all the country problems solve.

    Down with the Damned DLP and the Blasted BLP!!

    VOTE PDC

  10. kiki Avatar
    kiki

    @Inkwell

    1. We would and should all like to pay a zero % tax rate – Ask the jamaican rebel maroons
    2. Zero interest rates from Government owned banks for educational training and sound business investments is a worthwhile long term community orientated venture and is identical to how the the bank of mum and dad work.
    3. Foreign Exchange hedging risks and issues and transaction calculations etc would be much more straightforward with an exchange rate of 1.00000 and would stop banks ripping you off with a profit turn and high commissions for each FX Trade or Stock Transaction etc

  11. kiki Avatar
    kiki

    Grow your profits literally.
    Why do third world countries possess the worlds resource but not the wealth?
    Prevent wealth owners taking complete control of the worlds industries at home and abroad
    Stripped me Naked

  12. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    The People Democratic Congress (PDC) has long been stating that whenever it becomes at the helm of the government of this country PARTNERSHIPS will become the only multimember corporate business entities possible in Barbados, across state and private sectors. And that integral to this regime will be ensuring that the present statuses of workers, supervisors, managers and owners – that exist under a raft of different business organizational structures, will be evolved into those statuses of PARTNERS, which themselves will exist under ONLY one form of business organizational structure – PARTNERSHIPS – again for multi-members.

    As such, there shall no longer – under this dispensation – be capable of being in existence companies, public/private, in whatever forms, or any other present modes of incorporation, whether statutory or NOT.

    As for foreign business entities or single persons, these will have to enter into PARTNERSHIP arrangements with local partnership enterprises if there are to remain in existence or doing business in Barbados, or if they wish to operate in Barbados at the time. These foreign entities will only be allowed to have a maximum ownership of 51% in the eventual partnership business entity of which the requisite model will be found under the national legislation giving rise to this entire national partnership dispensation in the country.

    Anyhow, such PARTNERS forming these PARTNERSHIPS will be remunerated in PROFITS/DIVIDENDS at what ever agreed amounts and agreed to times, as broadly set out within the national legislation establishing such partnerships. These PARTNERS shall have great say – as PARTNERS – in the direction in which these partnership business enterprises go and head and shall be privy to ALL important information affecting or coming out of the partnerships.

    Also, these PARTNERS shall be the SOLE OWNERS of these enterprises – which – for purposes of clarification herenow – will mean that even though a person or an entity may, if required, still be permitted to invest in financial shares of these enterprises – they shall in the final anaysis only be entitiled to dividends/share of profits based on the number of shares taken up – NOT PART OWNERSHIP IN OR OF THESE FUTURE PARTNERSHIP ENTERPRISES. Only those who are the real producers and facilitators of the production of many goods and services – and those who have any other internal roles to play – within these partnerships will be so entitled to such statuses. NO ONE ELSE.

    Two major reasons for making PARTNERS the SOLE OWNERS in the existence of this national partnership dispensation will be:

    1) to make sure that those who are the real producers and facilitators of many goods and services in these enterprises are able to PART OWN such enterprises without having to be subject to the very UNSCRUPULOUS UNCONSCIONABLE UNSAVOURY PARASITIC conduct or behaviour, overt or covert, of those local or foreign persons or entities who otherwise would be thinking that because they have so much money – more than anything else – that they can come/go and buy up any number of local business enterprises whatsoever – thus their riding rough shod over or attempting to diminute, or not even being in sympathy ever so much with the previous contributions and feelings of the real producers and faciltators of these organizations and without whom such enterprises would NOT be possible because of the very indispensible contributions and efforts that are made by such persons – as well as some others too – to these organizations.

    Had such legislation been already in place since about 20 years ago, does any one think that Sir Allen Fields would have been able to do the stupid foolishness that he and some others did with BS&T recently – deliberately playing the latter right into the hands of Neal and Massy? NO!! Had such legislation been in place every since about the same 20 years ago too this egregious CLICO DISASTER would certainly NOT have been befalling us now!!

    2) to make sure that those who are the descendants of those who really helped to build this country many many years ago and that those who are to come from this stock of people in future generations ahead – that the present progenies – time permitting – would still be able to benefit significantly from the fruits of those previous substantial inputs made then, and that those who are the future progenies of present generations of our forbears would still be able to substantially benefit from the fruits of these large fundametal inputs that are presently being made into many present business enterprises.

    So, making those persons the SOLE OWNERS, and by extension making sure that this partnership regime comes about is essentially about the necessary logical progression and continuity and expansion for the broad masses and middle classes, and NOT the further continued degradation, exploitation and marginalization of them by an elite few.

    And these real producers and facilitators cum partners must get the feeling and pride that associate with being in common ownership of real stakes in commercial enterprises and in common ownership and responsibility of commercial enterprises that they would almost every day seriously contribute to – to these enterprises’ own existence and development in this Barbados, and NOT a continued sense and feeling of being exploited and alienated and deprived by commercial enterprises.

    Finally, these partnerships will seek to reinforce and replicate through out the business society in Barbados -a set of already established fundamental principles – normally found within small businesses in the country – wherefore there shall be, as it were, the TOTAL elimination of the money cost of human services inputs ( contrast these with present labour input costs ) and wherefore with that, the value of the human services inputs of each partner being treated as if they are “free” or have attached zero-money cost values – but which for income purposes would have to be measured in dollar values ( in several ways ) according to his or her own worth – but which too would in the final analysis be measured as money costs incurred against the overall sales revenue made by these partnership enterprises. Such a set of principles will seek to make sure that each partner will get satisfactory dividends remunerations constantly since the amount of returns/profits would therefore help to determine such dividends – as real money/income costs realized after the fact of doing business for a given period of time – and would help make sure that the costs of living and doing business would be kept quite low – all things remaining equal – through out the country – since what is got as dividends will NOT be presumed by what “prices” the markets will be presumed to bear, but presumed from what the markets, political or commercial, “say” they will most likely be.

    Contrast these few principles with those principles that are found and practiced in almost all of the current business ownership structures in this country, that make sure that what is now referred to as labour costs are incorporated into the total operational costs of the businesses in a presumed manner and wherefore these labour costs are NOT ONLY ADDED as part of the final “prices” that the final consumers of goods and services pay when purchasing or using them – thus making them so high – BUT ALSO where these labour costs cum incomes to workers in real terms have to be placed after certain interests or on a lower scale, as that, at the same time, the owner of the business presumes that he/she must get premiums on recovering costs on their investment to cover part of investment costs per whenever ( which would be disportionate to these labour costs cum incomes to workers anyhow).

    Such abominable principles thus help make sure that the owners or the big executives of such commercial enterprises remain at the top in this country, whereas those who are the real producers and facilitators in such structures are – through these said principles – helped made worse off, are helped made to help pay for their own maintenance whilst working, and are made to help make sure that the masses of consumers – many of whom are the same workers – must continue to play a great part in maintaining the luxuries of these owners and big executives.

    So, there you have it!!

    Down with the Damned DLP and the Blasted BLP!!

    VOTE PDC Next Elections.

    PDC

  13. Hopi Avatar
    Hopi

    The gov’t can also put a steep tax on cigarettes [since they are not manufactured in Barbados] and alcohol.

    ‘Temporarily’ stop all contributions to the UN. Its a tool of the Oppresser.

    If you do any business with Israel, stop it.

  14. Adrian Hinds Avatar
    Adrian Hinds

    The truth is that succesive goverments do not have the backbone to restructure our economy.

    Owen Arthur is playing politics as usual.

    Owen Arthur for 14 years knew the urgent need to restructure the Barbados economy when said the following on Februrary 25th

    “For it is my judgement that the forces which have bombarded the Barbados
    economy, and have necessitated policy response of the most far reaching kind
    in the last decade, been those which have emanated from changes in
    international trade laws and relations”

    Yet he did nothing.

  15. Adrian Hinds Avatar
    Adrian Hinds

    As far back as 2006, the BLP’s policy position was taken that, given our debt profile
    Barbados, could not afford any new social entitlement programmes, unless
    they could be paid for from a sizeable surplus in Government’s Current
    Account.

    To a people who have been, since independence, encouraged to become recipients of Government welfare, of one kind or the other, Bajans did not take too kindly to the BLP’s cuts on social programs. People saw their local needs ignored and being cuss by Owen Arthur for not accepting the new approach. “People want to go to heaven but don’t want to die” he said.

    Now out of power in government and at the party level he is faced with removing Mia Mottley and then to remove Thompson who intends to solidify is control of power by meeting the local needs of the people via the old dispensation of socialist policies no matter the cost.

    Owen sees this and know the risk of being out of power for a very long time should Thompy be successfull in his social programmes.

    Over the past two years, despite the existence of a significantly high current
    account deficit, Government has introduced new social entitlement
    programmes such as free bus fares, expanded summer camps, and
    Constituency Councils, for which it has had to borrow.

    The kind of social programmes that the DLP has entered into will have far reaching and long lasting positive effect on the Barbadians society.

    Restructuring the Barbadian economy will require a change in thinking amongst Barbadians after being encourage to be government dependents for decades. But no government has the “balls” to institute such an approach and hope to remain in power for very long.

    Owen Arthur know this, and is seeking to bamboozle Barbadians into forcing the Government into attempting to use this current recession to attempt restructure of the economy thus paving the way for a better Barbados, and one that he can benefit from.

  16. Fair and Balance Avatar
    Fair and Balance

    Again Adrian Hinds that is politics and Arthur understand it well. He is the best at it in this era and can be compared only to the likes of Barrow, (Cammie Tudor who I believe is the best political tactician) and Tom Adams.
    I see in today’s Nation Newspaper Arthur is at it again using some very robust language and timed right before the estimates debate. I wonder is Arthur on his way back?

  17. Adrian Hinds Avatar
    Adrian Hinds

    Indeed it is politics. That is the non partisan’s conclusion to Arthur’s Feb 25th speech. You do know that he agrees with us that the current global economic situation has never been seen before? This is why his entire speech was about what could be the approach and what could be the possible outcomes of these missing approaches. He is as blind as the rest of us on the way forward and more importantly on what the global economic outlook will look like in the future.

    What is his criticism of the Medium term fiscal policy? That it does not attempt to restructure the economy, and that it does not take into account several activities due to affect Barbados in 2015.

    Owen Arthur is NOT demonstrating the political tactics of a master tactician, he is lying plain and simple, and easily indentifiable lies at that.

  18. Enuff Avatar
    Enuff

    “The kind of social programmes that the DLP has entered into will have far reaching and long lasting positive effect on the Barbadians society. ”

    Really?

  19. Bush Tea Avatar
    Bush Tea

    What re-balancing what economy what??!!

    It would be extremely difficult – even for proactive, intelligent people who had, over the past 40 years, live through a period of unprecedented prosperity and progress- to fully understand what is about to hit our world – and our country.

    It is not therefore surprising that it seems near to impossible for Bajans to contemplate the enormity of the challenges that we are about to encounter. so we deny, deny, deny……

    Placed in historical perspective, the period from 1960 to 2000 has been without equal for Barbados. The average Bajan who also lived through the 50s and 60s would have looked on in awe at how this country has moved during this period.

    Unfortunately, the generation who were born and raised during his period seems to have concluded that this level of existence is ‘normal’ and is in fact the default situation.

    NOTHING CAN BE FURTHER FROM THE TRUTH.

    Wiser heads would have expected an eventual return to historical normalcy and would have made strategic plans for the country to be ready for this inevitable reality.
    Instead we AT ALL LEVELS OF OUR SOCIETY have structured our lives as though the ‘good times will roll forever…..
    – high debt;
    – external dependency for basic necessities;
    – embracing the American ‘throw-away’ culture
    – etc

    Now that the bubble have burst, we continue to behave as if somehow things will work out, and get us back to the good days….once things ‘balance’ out.

    Wait for that!!

    What we will have to do is IDENTICAL to what a household needs to do when the breadwinner is laid off from a high paying job. We will have to CUT BACK our spending to match the reduced level of income. In other words, WE WILL SCRUNT.

    And we have few savings…..

    It will start with layoffs, as employers – especially Government ,run out of money to pay salaries while trying to repay that money borrowed to pay these same salaries over the past 15 years.

    Unlike the 1950’s when poor people were poor but debt free, we are now highly indebted to our mortgages, credit cards, cars and hire-purchase accounts.

    In the 1950’s poor Bajans knew how to look after themselves. We now need to see a doctor for every perceived ailment; We need a Gym for exercise; a Computer and flat screen TV for entertainment A fueled up SUV to get around and modern utilities for everything else.

    The next twelve months are going to be eye-opening, and the following 12 will be ‘eye popping’ ….This has nothing to do with BLP, DLP or PDC, and if we continue to approach the challenge from that perspective, we will certainly make a bad situation many times worse…..

    Our first step will be for us to face reality……

  20. Fair & Balance Avatar
    Fair & Balance

    Well said Bush Tea. Well said

  21. David Avatar
    David

    Any comment on MP William Duguid’s presentation in parliament yesterday?

  22. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Why no comment on the clico and british american saga that was revealed in today’s nation.

  23. Albert Avatar
    Albert

    Duhnald … Duh?! No one is interested in Mia’s grand-standing! (Other than you)

  24. Avatar
    Anonymous

    Donald Duck

    to comment on CLICO would require information … no one wants to be told that critique suggests lack of patriotism (yuh know “not being part of team Barbados yaddah yaddah etc”!

    “Patriotism is the last refuge of a scoundrel” – Samuel Johnson (1709 – 1784)

  25. Wishing In Vain Avatar
    Wishing In Vain

    Any comment on MP William Duguid’s presentation in parliament yesterday?

    The VISITING MP as per usual if given five minutes to make a presentation he wil talk utter nonsense for two and a half minutes and go into decline and be abusive for the next two and a half minutes, just his childish ways coming to the fore.

    As per usual he is an empty vessel devoid of substance and sense much like Muttley.

  26. Hopi Avatar
    Hopi

    The gov’t should also put a freeze on the selling off of land to foreigners and use it to cultivate more food for the nation because right now its not about the accumulation of money its about the welfare of the nation.

    Whitey is buying up more of Barbados because he needs some where to run to when the shit hits the fan and what better place than an island that’s blessed with sunshine.

    Your average person can build a storehouse for food and get some tanks to store your water in time of plenty. Bajans don’t have to live in fear of the economic shenanigans that’s going on in the world. It is all man made. And the same way a few criminal can disrupt the world economy, you too can adjust your own life and tell them where to shove it. Barbados is blessed with year around sunshine. You don’t have to fight for oil to warm your homes in winter. This sunshine allows you to grow food and maintain health. When BL & P decides that it can no longer provide you service, you still have the SUN & the MOON. The Creator blessed you with them and no man nor beast can take that away. You are also blessed with a sea of fish.

    So Barbados don’t live in fear, just prepare. All this need is a shift in Konsciousness.

    ——————————

    and btw since when could Pinnochio scare the Dragon?

  27. Hopi Avatar
    Hopi

    To the science teachers in Barbados, look into Sand & Silicone as a way of providing energy. Had I been able to do it I won’t be here talking, I’d be bringing it home.

    SAND & SILICONE.

  28. Avatar
    Anonymous

    This is not meant to be a criticism of the government, but rather an attempt to understand the whole logic of some aspects of the Medium Term Development Strategy. We are seemingly projecting relatively high real GDP growth rates- It would be good to have an explanation.

    Also it is a little beyond my understanding that we could project a decline in real GDP of 0.2% for 2010 and yet expect unemployment to fall from 10.2% to 8.1%.

    The more I read this and the Fiscal Plan the more I am convinced that the numbers are not very realistic.

    Well, at this stage we are still in draft and hopefully many of the inconsistencies will be sorted out . We have already seen changes being reflected in the Estimates laid before parliament compared to what we can find in these two medium term planning documents.

  29. David Avatar
    David

    So far the debate has been below par, to be honest only Stephen Lashley from those presentations heard has been worthy.

  30. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    We read in the Barbados Today, 16th March, 2010, comments attributed to Mr. Dennis Kellman – the Parliamentary Representative for St. Lucy – that Low Value Added Tax Rates and technologically driven society are partly to blame for Barbados high deficit.

    We dont know if that is what was really said by Mr. Kellman in a contribution of his to the ongoing debate in the House of Assembly on the 2010-2011 so-called Estimates of Revenue and Expenditure, but if those comments were really stated by this veteran DLP parliamentarian, then the PDC has no other option but to remark that those comments are clearly very unstudied, downright nonsensical and totally unworthy of a parliamentarian of his stature.

    No wonder that our long standing nemesis – Mr. Owen Arthur – has termed much of what is debated in the Parliament of this country as “poor rakey”.

    For, what has been reported to be said by Mr. Kellman is so insensate and stupid that were it NOT for our having a profound interest in making sure that TAXATION is Abolished in Barbados and getting thousands upon thousands of Barbadians to realize that TAXATION must be Abolished in order that hordes of individuals, businesses and other entities are freed from this dreaded hellish bondage and so that greater productive energies are unleashed for the greater benefit of this country, we would NOT have worried to pay Mr. Kellman’s reported comments any attention.

    But, coming from a parliamentarian who has a good measure of political influence in the north of the country and being that he is a member of the party in government, we are the more hastened to respond with thunder bolts of our own to such shocking disgraceful nonsense.

    Mr. Kellman must be told that it is this same VAT and all other so-called forms of TAXATION that are greatly the cause of much long term stagnation and decline in industry and commerce in Barbados. And the facts are there to prove such.

    Also, the fiscal deficit of the government ( and if he said Barbados he should more than ever NOT be returned to parliament if he presents himself as a candidate in the next election) is primarily as a result of gross and reckless management of the affairs of government by DLP/BLP Administrations over the years and as a result of their unwholesome beliefs and activities pursuant to those beliefs that government deficits must be racked up in this country. Check the present so-called Estimates that are currently being debated in the House of Assembly – So-called Estimated Expenditure at around $ 4 Billion and Estimated so-called Revenue of $ 2.4 Billion. A WHOPPING DEFICIT of $1.6 Billion. ( We agree with him on deficit financing – how strange his position given his reported arguments in the story)

    And finally it is known that almost all newer technologies in the long term lower the cost of doing business and other things in Barbados. Yes, techological development is a necessary component of the further overall growth and development of Barbados, and even though there is an on-going financial cost to such to be borne by many in this country, much of the supposed unnecessary HIGHER financial cost of using and having these technologies are caused through this same evil wicked TAXATION process. So, Mr. Kellman stop arguing circular nonsense.

    PDC

  31. Avatar
    Anonymous

    As we battle with what is to be done in agriculture, we fail to recognize that the technical persons in the Ministry of Agriculture lack the scientific sophistication to lead the way in applying science to agriculture in order to increase productivity.

    The whole emphasis is on protection and subsidies rather than on productivity increases. The technical wing of the Ministry of Agriculture needs to be led by scientists and not public relations persons.

  32. X-man Avatar
    X-man

    @ Hopi
    It’s not just whitey who is buying up Barbados. Rest assure there are many nationalities from around the world looking for their piece in Barbados. I have argued, continuously, that Barbados is like a mistress who has many suitors. She will have to disappoint them and just refuse their advances.

    I pray to God that the exodus of the many foreigners dwelling in Barbados will commence. It is up to you the people to set this train in motion. Don’t look for your government to set the wheels in motion. Only you can decide your fate.

  33. micky Avatar
    micky

    David, I heard the Prime Minister on the radio from parliament today. He has a clear vision and is not caught up in empty philosophy/rhetoric. It was excellent.

  34. David Avatar
    David

    The information that Mia Mottley is acting as attorney for the Four Seasons project makes for interesting analysis.

  35. Wishing In Vain Avatar
    Wishing In Vain

    David, it is worst than that re Muttley working with Persaud and Four Seasons, they expect the Gov’t to sign their loan paper and be only given one directorship on the board, further the salary that Mr Persaud has worked out for this deal and his completition commission is unbelieveable, and Muttley is send messages to people asking if the think Persaud is stupid, well let me tell Muttley, Persaud, Pemberton and Patterson I think they are all silly to believe the Gov’t are people are fast asleep, to put their turst in a deal brokered by the part time Leader of The Opposition and Perasud to screw the goodly taxpayers of this island and then for them to walk away and say look I told you so, my advice the shareholders odf the Four Seasons project is to FIRE MUTTLEY AND PERSAUD and wheel and come again.

  36. Wishing In Vain Avatar
    Wishing In Vain

    Also bear in mind that Persaud was contracted to work with BLP in talks with the World Bank, do you believe that this Gov’t should nilly willy accept anything pushed down its throat by Muttley and a paid contractor of the BLP without doing its owed background work ?

    This Prime Minister is nobodys fool as Muttley would have you believe, her frustration is showing because the Gov’t advisers are unravelling their scam to rape the taxpayers once again.meanwhile it is stalling her commission cheque and that is what is hurting.

    Some even suggest that the developers profits may already have been used up in their first stage of the development, that is the extent of the mess that Muttley has been an adviser on.

  37. David Avatar
    David

    @Fair and Balance

    Noticed you have ignored the question about the annuities which CLICO popularized in recent years. Wasn’t this a financial product approved under the BLP’s tenure? It seems this is the very product which has soured the deal for the life insurance company as far as blocking its sale.

  38. Hopi Avatar
    Hopi

    Gov’t should also get rid of CON-sultants and EX-perts.

    @XMan……You’re correct. But my eyes are usually blinded by whitey who is usually the leader of this pack of wolves.

    ———————–

    Is this the prelude to Rawdon John Herbert Adams’ run for Prime Ministership in Barbados? If CLICO is his spring board, he has a head start because this horse ripe for whipping. But who is Rawdon Adams other than being the descendant of two former leaders? Are Mia and Owen willing to accommodate him?

  39. Fair and Balance Avatar
    Fair and Balance

    @ David
    I thought i answer that question in a previous blog. From my own experience once an insurance company is authorize to sell a particular product (i.e. annuity) they do not have to go back to the supervisor’s office everytime they launch a new version of that product. ( I know that to be the case in the past but since the Clico Fiasco the supervisor’s office is vigilent). The product was launch within the 14 year period the BLP was power.
    David are you saying that the Minister of Finance is to micromanage the supervisors office? The insurance act gives the supervisor teeth to ensure that the Insurance Company functions within the law and to take action where necessary to protect policyholders.
    Or David, are you saying that the supervisor’s office was not allowed to take action by the then minister of Finance?

  40. Albert Avatar
    Albert

    Cardinal rule in the Westminster system: A Minister has to take responsibility for those acting under him. Simple.

  41. littleboy Avatar
    littleboy

    1% fee of 170 million is 1.7 million. Do you think Persaud stupid? He will make sure that he courts the public sentiment to assure himself of a good pay-day.
    Mia is there in the slips to collect a similar paycheck, so all pressure will be put on the Government to “quckly re-start Four Seasons”.
    Transparency? What is that word to those 2?

  42. isis Avatar
    isis

    We all know that the jews on wall st done robbed everyone, this is their mess let them clear it up, they steal ,cheat lie and start wars that is costly in terms of lives, finance and weapons. Look how many wars we have seen, but they put their bases in our countries to make us a target and furthermore tell us its for our security and further tax us. Tell them to go and f**k themselves.

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