Central Bank Governor Advises Government To Reduce Expenditure, Modest 2% Growth Forecasted

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  1. Remember, the central bank governor subscribes to the GREECE MANDATE, LIE and hope someone believes you, the alligator though is waiting with open jaws.


  2. The Governor of the Central Bank stated that with the VAT increase of 2.5%, receipts fell by 2% for the first half of the year. You don’t need an Einstein to realise that if less money is circulating in the economy, Government will collect less money.


  3. Tell me Why…..should Barbadians mind the BLP and its cohorts propaganda ?

    Going into the second half of 2011 our economy is showing signs of growth while the effects of the global economic crisis takes it toll on more powerful countries.

    Let’s rejoice that our faithful DLP gov’t is in office and at the wheel wide awake !

    Talking about being awake…where were the opposition members during the televised debate tonight ? Surely Owen cannot be saying that Dale Assrhall & Blind Clarke can represent the BLP ?


  4. Your submission fail to answer the disparity of an increase of 2.5%, yet we came up with a 2% decline. I am not interested i Owen, Marshall or the BLP in general. I am interested in what’s happening economically in Bim. By the way the Central Bank head made the statement.


  5. The assumption of growth in the second half is flawed unless Government work with the private sector. Growth spur cannot come from visitor’s arrival since the majority of the highlighted figures are intransit visitors that enter one port and out at another port all in less than a day.


  6. Central Bank Governor Proves Moody’s Downgrade Justified

    The Central Bank Governor of Barbados has given his Review of the Barbados Economy for the six-month period: January to June 2011 and Barbadians are now in a much better position to judge for themselves whether the Internationally respected – Moody’s Rating Agency – was on a witch-hunt or whether it was justified in its downgrade of Barbados’ Credit Rating, and the forecast it gave on Barbados prospects for the next 18 months.

    The other two issues that should be on the minds of ordinary Barbadians are, the Government’s Medium Term Fiscal Strategy (MTFS) and the Budget or the economic policies the DLP Government has so far outlined. Even at this stage, it is crystal clear that the DLP is even failing to meet the targets outlined in that MTFS, while it is also painful that its economic policies are not working and will not work. In short, Barbados is in peril and on a fast free fall from prosperity to crisis and at a time when the DLP does not know what to do.

    When you compare what Moody’s said with what the Central Bank Governor has said and would not say (in the context of what future DLP Budgets and that MTFS was expected to have done but have not and will not achieve) you begin to realise that the crisis in Barbados is far worst that this global financial crisis and the one in the 1920’s combined. What is happening in Barbados was foreseeable and preventable and it was manufactured, in large part as a result of entitlements without the match creation of enterprises!

    A competent Government, with a Team who has well-honed skill, would have steered Barbados away from this – as has the Government of Guyana and that of Indonesia, which – despite that country having had several earthquakes, tsunamis’, floods and mudslides – still records some 5.5% growth.

    We now know that despite a 2.5% increase in VAT, receipts are down by 2%. Could it be that the base of the economy is shrinking (some 10,300 unemployed since January 2008) and that Barbadians are taxed to the max? Whatever the real reason, the Barbados economy is in crisis and Barbadians must be worried, especially since it is now known that neither the DLP’s best plan (it’s MTFS) nor its economic policies, are working. Barbados is adrift!

    Increase taxation was intended to close the gap between revenue and expenditure but that gap has widened. The deficit was supposed to come down but it has grown much bigger. This tells you that in circumstances where revenue is not coming in, the economy could not be growing and that in-fact, the base is shrinking. So what exactly would have spurred that alleged growth? All the Central Banks Governor has done is confirmed that the Moody’s downgrade and the Standard & Poor’s caution – are justified.

    The up-coming Budget is therefore a non-event because the economic policies introduced by the DLP did not work. The economy is not growing and the country is incapable of any further taxation. What we also know is that as was stated by Moody’s and now confirmed by the Central Bank Governor’s Report, not even the next 18 months but the next six month in Barbados, will be dread. So that, when the DLP tells you that it will now seek to do through the Budget – what the MTFS failed to accomplish, you know that it does not know what it is doing and that it (the DLP) is engaging in a mere time-wasting exercise.

    This brings me to the story of Greece and why it was finally allowed to join the EU. A few weeks ago, concern was raise that the view of the Barbados Statistical Services Department and that of the Central Bank – differed significantly, as regards true state of the Barbados economy. Whether Barbados has a Government it can trust, is one thing but a Government it can no longer afford, is an entirely different ball-game.

    This link should therefore make interesting reading:

    http://www.telegraph.co.uk/news/worldnews/europe/greece/7646320/Greece-why-did-its-economy-fall-so-hard.html


    • The upcoming budget will be interesting if only because there is little wriggle room for government to ease Barbadians and add pressure to the deficit.


  7. Bajans will have to tighten their belts tighter.

    Wunna melts gine get squeeze just like we wun up hey in Canada.


  8. Bovine Bovell if you had a second BRAIN you would still be a crooked thiefing half twit,, you seem to have more time now you don’t have access to stealing from the hampers of the old and under privileged.

    The reports says nothing more than all Barbadians already know that we are still in a very deep worldwide recession and that we have to continue on the careful path, nothing less nothing more.

    By the way I noticed that your partner in theft and corruption not Arthur and Mottley but Slyvan Greenidge gone to pay his debts to the credit union, you went for your daily fix of food in parliament today ?


  9. Tell me Why, more displays from you of not know truth from lies, the arrival figures computation has never changed from the method that was used when your beloved MM Blarney B Lyncy was the Minister of tourism, are you suggesting he fondled and molested the arrival figures ? if so Minister Sealy should be made aware as I am sure he would not fondle or molest the stats as MM Blarney B Lynch was likely to have been doing to the stats and


  10. This story out of the great nation the United Kingdom and they are struggling with job losses, high food prices and phone tapping all the same things that we are struggling with,but in the eyes of that Bovine idiot we are unique, the DLP created the World recession.

    Families face £260-a-year surge in food bills as prices jump by 6.5%By Becky Barrow

    Last updated at 2:13 AM on 13th July 2011

    Comments (0) Add to My Stories Share .
    The average family has to spend an extra £260 a year on the weekly food shop, official figures showed yesterday.

    Although the overall cost of living is falling, few families will have noticed because food prices are continuing to rise at an alarming rate.

    The Office for National Statistics said the annual inflation rate dropped from 4.5 per cent in May to 4.2 per cent in June.

    Straitened times: Many of us are finding that we get less for our money at supermarket check-outs
    But over the last 12 months, food prices have jumped by 6.5 per cent, the biggest rise for more than two years.

    The ONS said meat is 7.2 per cent more expensive than last year, bread and cereals are up 8.5 per cent and soft drinks and mineral water are up 10.6 per cent.

    A typical family with two children spends £76.50 a week on food and soft drinks, according to the ONS.

    More…Inflation falls back as the struggling High Street slashes prices in early summer sales
    Millions give up on sunshine holidays as hard times and exchange rate make Europe too expensive

    But the recent rise in food prices means the same basket of goods is now costing an extra £5 a week, or £260 a year.

    To add to the pressure on cash-strapped families, the rate at which food prices are rising is far higher than the rate at which their pay is going up.

    The average private sector worker has received a pay rise of only 1.8 per cent, but this is being wiped out by the jump in their food bills. All public sector workers earning £21,000 or more are being hit by a two-year pay freeze.

    Hard choices: Some of the stuff we used to like is going to have to stay on the supermarket shelf
    Many families are being forced to make cutbacks, by buying cheaper food or simply buying less.

    And economists predict food prices may continue to rise over the next few months.

    It comes at a crippling time for families whose income is being eaten away by tax rises, such as VAT, record petrol prices and rising energy bills.

    Last week British Gas came under fire for adding almost £200 a year to the cost of heating and lighting from next month.

    Gas is going up 18 per cent and electricity by 16 per cent, taking the average annual dual-fuel bill to a record £1,288.

    Inflationary British Gas is raising its prices for home energy customers from next month
    Brendan Barber, general secretary of the Trades Union Congress, said Britons are facing ‘a toxic mix’ of attacks on their living standards.

    ‘The cost of living is still rising twice as fast as wages, so our income squeeze is getting tighter every month – and will continue for some time,’ he said.

    James Foord, from the price comparison website mySupermarket, said: ‘Although we have seen a drop in inflation, this drop has not benefited shoppers.

    ‘They will not notice inflation coming down as food prices are still on the up. Shoppers need to be as clever as possible and look for the best deals around when doing the supermarket run in order to save their wallets.’

    A report from another comparison website, MoneySupermarket, showed the extent to which people are being forced into using their credit cards to survive until pay day.

    One in four are running out of cash around a week before their next pay day.

    Kevin Mountford, the website’s head of banking, said ‘most of the population’ are ‘feeling the pinch’.

    For savers, although inflation may be falling, it is still far too high for them to have much chance of keeping up with the cost of living.

    Inflation has been above the Government’s 2 per cent target for 19 consecutive months.

    It is estimated savers have lost £72billion of interest since the Bank of England base rate was cut to 0.5 per cent in March 2009. Some banks have cut their interest rates as low as 0.01 per cent.

    Simon Rose, from the campaign group Save our Savers, said: ‘Savers are getting burned.’

    The Institute of Directors said falling inflation ‘kills any chance of a rate rise this year’, adding: ‘There may not be any rate rise next year either.’

    Read more: http://www.dailymail.co.uk/news/article-2014145/Families-face-260-year-surge-food-bills-prices-jump-6-5.html#ixzz1Rwij4snL


  11. Originally, the DLP Government attempted to reduce the deficit by increasing taxes or by making adjustment on the revenue-side. That failed in-part because of high unemployment and reduced economic activity. Therefore, its high and excessive taxation succeeded “ONLY” in reducing the spending power of Barbadians, even further.

    Now! As a final desperate move to bring the deficit under control (in circumstances where the economy is not growing or not expected by the DLP to grow anytime soon) the Government hopes to make adjustments on the expenditure-side but again – will succeed “ONLY” in taking more money out of the economy – thereby causing the economic base to shrink even further.

    This simply means that the DLP will make a bad situation worse, which is precisely what Moody’s said. The DLP will not meet the targets outlined in its MTFS.

    Barbadians can therefore brace for further unemployment and under-employment, and a further contraction in the economy. It will get a lot bumpier from here-on.


    • Barbadians don’t seem to be in the mood to absorb any more taxes, a consideration which a government with a general election looming will be cognizant.

      The government is on record as stating that its strategy to reduce the deficit will be a gradual one to avoid a draconian affect on Barbadians.

      Minister Sinckler has promised middleclass that the removal of the travel support would be for 18 months, many are looking forward to its reinstatement.

      It seems as Hants suggested Bajans should draw their belts tighter.

      The reality is that tourism is slacking and this is the problem.

      The question BLPites will argue is that they are better equipped to manage the economy with better result.

      The next few months leading to an election may provide a good opportunity to sell their case.


  12. What have we done to upset the Germans LOL?

    Is the person responsible for the 94% drop in visitors, also auditing their drive-in vault?

    Are such graphs used to illuminate the governor’s solemn pronouncements indicative of the casual approach taken towards all official figures?


  13. @ david… belt tightening should be an automatic reaction to less money flowing but it alone will get us out of this mess. The time wasted on this blog, in particular, in name calling , nation bashing, flag raising and a host of other dead brain activity, is getting everyone no where.. we are all in the same boat and our reality has not changed one bit. The government is responsible for chartering the course of the nation.. period.. buck stops there.Forget the label of B or D or what ever We need to hold those in positions to be accountable.. ie if there is drop in visitors from Canada,”why ” in an analytical(not political) manner and attempt a solution. Step by step, sector by sector . Our economy is not truly a multi dimensional one, so this should not be a difficult task for a large (overly) civil service .
    The devil is in the details and we are not detailed oriented. We are too grand in our general overview. Too much attention is focused on the larger projects… the more money, the better it looks to us and how the outside world would perceive us .. every time and everywhere in this world when there is a recession, it has been the small business, with innovation that has powered economies and created employment.


    • @why

      You are wrong, it is ALL Barbadians et al healthily participating in our democracy which will get us where we need to go.


  14. While waiting for Government to solve the economic problems and for North America and Europe to recover,

    Bajans need to ignore the political propagandists like Bovell and work on your personal economic crisis.

    Elections will come and you can vote how you choose but remember every healthy adult is responsible for him/her self and their children.

    Tighten wunna belts and pelt some pumpkin seeds in de yard and water them.
    If GP and Hants can shop in Walmart wunna can shop in swan street.


  15. the arrival figures computation has never changed from the method that was used when your beloved MM Blarney B Lyncy was the Minister of tourism.
    ……………………………………………………………………………….
    Pooposition Is At Sea: you made the above submission.

    If you thing these figures are flawed, why not separate Cruise tourism figures where we see bus loads of passengers traversing the harbourairport route on one hand and visitors spending from two days and up on the other hand. This will give us a true figure of arrivals and the Central Bank Governor will not have to make continuous excuses of visitors arriving, yet not spending any money. The only business that benefit from this transaction is Foster & Ince who have the contract and a slight pittance will go to Government for air/seaport taxes. Broad Street or any other businesses will not benefit from in-transit passengers.


  16. The Air sae transfers are shown as a seperate item on the reports of arrivals it only shows how uninformed you are on the subect, people like you know little but pretend to know all, you are misleading the public with your stupidity of the matter and are not relating the facts nor are you being honest.


  17. @ Pooposition Is At Sea

    The Coalition government like the DLP suffering with the same problem–incoherent policy and plenty u-turns.


  18. Minister Sinckler confirmed today there will be no rolling back of the VAT rate or travel allowance removal implemented from last budget.


  19. Sinckler is galloping to the cliff’s edge and does not even know it. If he does know it, then he’s too foolish to know the peril Barbados faces and is proceeding anyway.

    Debt reduction and expenditure reduction never created a job yet. All that these policies and measures of the DLP are doing is depressing, still further, the economic activity of Barbados with the consequent fall in yields of taxes collected.


  20. @ David

    Why not carry out a simple poll on BU during the next week? He is the question:-

    1. Do you think the DLP administration is doing a good job managing the economy of Barbados.


  21. My prediction is that the poll would result in findings that Barbadians, by a margin of two to one would say that the DLP administration is not doing a good job managing the economy.

    The next week do another poll, here is the question:-

    Is the the DLP administration doing a good job managing the country?

    Your poll would be very insightful into how Barbadians feel and how there are likely to vote if things remain the same.


  22. @The Viper

    Your suggestion is noted.

    Can you clarify how the government should go about debt reduction in a climate where there is revenue contraction given the global condition?


  23. The Viper;

    Suggest that the idea of a BU poll is a good one but the results might be far from what you seem to imagine will be the case. BU’s contributor population is heavily skewed towards vocal DLP supporters who, imho, outnumber BLP supporters and middle of the road thinking persons by at least 2 to 1. If this is true the results may be diametrically opposite to what you expect.

    Also the present administration considers that Barbados is not just an economy but it is moreso a society. Hence, it is possible that the economic aspects might have been downplayed somewhat. In such a case it might well be best to ask 1) is the current administration doing a good job in managing the Barbadian society? and 2) Is the current administration doing a good job in managing the Barbadian Economy?

    To even out the poll, if David could do it, all posters who have evinced a consistent bias towards either the BLP or DLP in the past should have their contributions to the poll set aside. It might give david a lot of extra work to remove the whet from the chaff but it could probably be done. Alternatively poll answers by known BLP or DLP sympathizers could be weighted at say 10 percent of a full vote either way.


  24. @ David

    Your mistake is the presumption that Barbados or for that matter any country should or must embark on debt reduction during revenue contraction.

    Is debt reduction not a policy better pursued during good economical times?

    If you want to stimulate an economy you don’t do it by taxing the people and the businesses. The key in recessionary times is to keep as many people gainfully employed with a pre-recession level of discretionary spending income.

    You tax the people, they spend less. You tax the businesses they hire less and fire some and now you have less people employed and those who are employed are spending less because the have less and fear being fired.


  25. I don’t understand all of the noise about debt reduction, that just the IMF looking for someone to make money off of.

    The IMF tells Barbados it’s debt is too high, it needs to reduce is debt and all this at a time when Barbados and the world is in recession. The IMF says, don’t worry though, today is your lucky day, we have money to lend you so as to reduce (refinance) you debt, the only problem is our money is going to be at a higher interest rate but don’t worry when you cut spending (reduce benefits and entitlements and fire some civil servants) which is alot needed, then you will have money to pay our increase interest rate.

    What the hell was the point and more importantly the need to reduce debt?


  26. I forgot to add above that David would be the sole judge of the orientation of any poster who voted based on the history of the poster. Eg. If he is on record as saying that he supports the BLP or DLP: remove or weight his vote. If he proclaims that he is impartial but consistently supports one side only: remove or weight his vote, If he sometimes support one side and also supports the other side sometimes: Let his vote stay.

    eg. Some of the posters on BU that appear to be politically impartial to me are: Why; Chris Hallsall; The Viper; BFPBPF; Rosemary Parkinson. The others don’t come to mind right now.


  27. @The Viper

    You need to complete your argument i.e the fact 70 cents of consumption expenditure leaves the country in forex. Isn’t one of the challenges in a recession managing an open economy which is externally driven protecting the foreign reserves? This is very important given our peg to the USD.

    @checkit-out

    Why would BU tamper with an unscientific poll? You should not make conclusion based on those who are most vocal.


  28. @ David

    You’ve moved the goal post however now that we have established that there is no need to reduce debt in a recession lets talk foreign exchange reserves.

    Do Barbados have a major foreign exchange reserve problem? How does the present situation compare the previous benchmarks?

    This economy is not recovering because those empowered to manage the affairs of the country including the economy does understand simply economics and are compounding that by implementing measures and polocies which will only further slow the economic activity and the consequent fall off in tax revenue.


  29. David;

    The poll would be unscientific if there is no “tampering”. It would still be unscientific if there is “tampering”. What I’m suggesting is a way to perhaps get some unscientific conclusions that might be a bit sounder than letting the partisan denizens of BU vote on the partisan questions posed by the Viper. In the end it would still be unscientific. In other words, I’m agreeing with you that one should not draw conclusions based on those who are most vocal.


  30. @The Viper

    There is no need to do debt reduction if we are willing to ignore the influential rating agencies and other international financial institutions. A good example is Moodys giving Ireland junk status rating.

    On the forex matter the fact remains the thrust of policy is to protect the BBD dollar. The conservative approach of this government is to manage spend which heavily correlates with forex outflow. This is our view of it anyway.


  31. The conservative approach of this government is to manage spend which heavily correlates with forex outflow.
    (0)(0)_(0)(0)_(0)(0)_( 0)(0)_(0)(0)

    Which sector is responsible for the most outflows?
    What percentage of that outflow is for productive purposes?
    Remind again, what exactly has this administration done so far to manage this non-productive outflow?


  32. @Raw Bake

    Is it not clear the government by increasing VAT, removing travel allowance support, pass through fuel cost etc has used taxation to dampen demand for consumer durables. Would suggest though that forex generating business’ should have enjoyed waivers.

    The reality: we are an import based economy and along with the protracted nature of the economic slowdown Barbados finds itself in a bad place.

    Contrary to what all the economists are preaching there is no magic wand to solve this problem. If you don’t believe it do a google of what is happening around the world. taxation to dampen demand for consumer durables. Would suggest though that forex generating business’ should have enjoyed waivers.

    The reality: we are an import based economy and along with the protracted nature of the economic slowdown Barbados finds itself in a bad place.

    Contrary to what all the economists are preaching there is no magic wand to solve this problem. If you don’t believe it do a google of what is happening around the world.


  33. Is it not clear the government by increasing VAT, removing travel allowance support, pass through fuel cost etc has used taxation to dampen demand for consumer durables.
    (0)(0)_(0)(0)_(0)(0)_( 0)(0)_(0)(0)

    High international oil and commodity prices contributed to a widening of the current deficit. Up to April 2011, imports of clothing more than doubled, while imports of food and beverages, and other manufactures grew by 13% and 32%, respectively. Fuel imports grew by 37%, while those of machinery increased by 25%.

    David, that came straight from the horses mouth.


  34. The point is the real recession has not ended. The world is in economic turmoil.

    I don’t study economics but I live in the Country with the best performing economy among the G8 countries and we are dealing with ever increasing food,gas and electricity prices.

    Barbados is in for a rougher ride so brace wunna self. Instead of blogging wunna should be outside planting in de kitchen garden.


  35. Crop Over, Independence and Christmas.
    Traditionally periods of high consumption. Talk bout between a rock and a hard place. The Fin Min must be rueing the day.


    • @Raw Bake

      It is truly a bad time to be in government and especially to be Chancellor of the Exchequer.


    • The other point being raised is why wouldn’t the Governor wait until he has the stats to June to have the review.

      His presentation was supported in the main with first quarter numbers.


  36. You eva see macaroni and cheese, cream potatoes or chicken and chips growing in a kitchen garden?

    You really expect people to eat sweet potato, pumpkin, yam, eddoes and breadfruit. Even if duh had somewhere to plant dum, duh still can’t keep nuh stocks to get lil manure which mean duh gots to buy fertilizer whichin gine cost money duh ain’t got. Next yuh got to look fuh pesticides to keep way de lotta pests duh got nowadays. More money again. Don’t talk bout if de rain doan fall, you think people cud pay BWA fuh wata to wet a kichen garden during the dry season, if some malicious body doh report duh for wasting wata. Then if you get pass dem hurdles, you think people able to break up the night rest peeping to see who trying to cah wey duh things. It ain’t worth de lotta trouble.

    When de supermarkets and de cook shops run out of food or we run out of money, which eva one come fuss, we gine deal with it or reconsider the kitchen garden thing.

    Easy wid de gloom and doom predictions nuh man. You like you forget that God is a Bajan.


  37. @Raw Bake wrote, “we run out of money, which eva one come fuss, we gine deal with it or reconsider the kitchen garden thing.”

    You know Bajans real good.lol

    I am not preaching doom and gloom. Just personal survival methodologies.


  38. well owen claim the june number make april & may look great. He claims they where omitted for that reason. it does seem rather weird they would toss in estimates for the full quarter and only supply figures for 2 months. the best part of those two months are people pay the remain of their income tax late or early, Now june is also suppose to be good corporate tax month which is surprising since they left it out. filings where due june 15. In the transfers and subsidies grant to individuals have been cut in 1/2


  39. Many utilities will be cut-off next month, school clothes can’t buy,sardines on the table instead of chicken, pork or fish. Rihanna $500 tickets sold out. And Bajans wanted to kill the government for an additional 50c in busfare…smh. Priorities!!!


  40. @Pooposition Is At Sea

    Your posting
    quote

    ”This story out of the great nation the United Kingdom and they are struggling with job losses, high food prices and phone tapping all the same things that we are struggling with,but in the eyes of that Bovine idiot we are unique, the DLP created the World recession etc. etc.”

    end quote, ……makes very interesting reading

    You forgot increase in University fees , higher traveling costs, cut-back
    in health services and pension reform.

    How can you argue with people who read only the Nation Newspaper and listen only to VOB 92.9?


  41. Faced with the same global financial condition that the people who now rule Barbados, which was once considered the number one Developing Country in the World, (Barbados was always ahead of the pack) Guyana NEVER went into recession, while, despite having been faced with tsunamis, earthquakes, hurricanes, mudslide and volcanoes – INDONESIA was still showing growth of 5.5%.

    There are 213 countries in the world. Did we move along with the pack? No. Not 50, not 100, not 150 but 188 countries are performing better than we are. We were 189th in the world in terms of economic performance. 110 countries actually expanded their economies last year.

    There is much smart government policy can do to change our position in the pack. Surrendering our fate to the shifting winds of the global economy will only relegate us to the back of the race, as we now are, but instead of taking action, the new rulers bellyache, blame and complain.
    And with Barbados on a fast free fall, the Central Bank and the DLP tells the country: “don’t worry…be happy” because some are worse off than Barbados. Certainly not GUYANA!!!!

    The Central Bank Governor maintains that despite everything, the country is doing better than most as it battles the worst global economic downturn in recent memory. Really! In its report, the Financial Crisis Inquiry Commission said that the global financial crisis was “foreseeable and preventable.” But, that thing called: “RECKLESSNESS,” is dangerous.

    http://dealbook.nytimes.com/2011/01/27/everyone-was-to-blame-crisis-commission-finds/

    Here are people who actually predicted this crisis, whereas none predicted the one of the 1920’s: These people predicted the crisis BUT NO ONE WOULD LISTEN TO THEM, MUCH IN THE SAME WAY THAT NO ONE IS LISTENING TO WHAT BRAVE BUT WISE PEOPLE IN Barbados, are warning about:

    http://rommeldak.wordpress.com/2010/06/19/no-one-predicted-this-financial-crisis-did-they/


  42. It is a pity that Barbados does not have a properly functioning parliament. For if it did have such a parliament, the Governor of the Central Bank of Barbadois would have been required to go before a relevant committee of the said parliament, and explain to this committee and by extension the public, supposedly via live broadcast from parliament, some aspects of this first half review of the performance of the so-called Barbados economy for 2011, for the committee’s and the public’s benefit of understanding or NOT.

    So, rather than the Governor holding this outdated method of presenting this supposed analysis – called a review of the economy, which comes every quarter in Barbados – to the public, via the internet and public broadcast media, from the confines of the Central Bank itself, and then a day later having a group of supine journalists ask some of the most innocuous questions possible about the review itself and about some other things concerning the so-called Barbados economy, at an event called a media conference, he would not now be in a position to tell the public via the said media that he would not be having any verbal exchanges with the present Opposition Leader on issues pertaining to the said review.

    Even without recognizing some of the very valid reasons why the Governor of the Central Bank would not wish to have what would amount to be political wranglings between himself and any other so-called economists over national economic issues, and which would then lead to accusations by some that this most prestigious most “independent” of government bodies would be spoiling its reputation by diving into the political cesspool , we in the PDC proffer the view still that the Governor of the Central Bank seems so entirely out of place and “out to sea” in his professional capacity, in view of his apparent inability to respond to many of the various charges – some entirely reasonable – that are being levelled by some at him pertaining to the quality, or lack thereof – of his reviews of the so-called economy.

    Yet, amazingly Dr. Worrell is the only Governor of the Central Bank so far to have been significantly stressing the need to have timely information/data packaged and presented concerning the functioning of the so-called economy to the public, so that certain critical decisions can be properly taken by various stakeholders in the so-called economy on the basis of such!!!

    Yet, increasingly the PDC is moving to that point where we will have ABSOLUTELY NO CONFIDENCE in the present Governor of the Central Bank based on the fact that much of the review information, including some statistics, presented to the public via the internet and public broadcast media IS CONTRADICTORY, SHALLOW, DEFICIENT, UNPROVABLE, and worst of all seems PROPAGANDISTIC and DELUSIONAL.

    Case in point, the Governor of the Bank can NEVER PROPERLY explain how there was a turnaround in tourism arrivals for the period under review, yet explain the confusion surrounding the belief that there was less spending taking place ( by how much? in which places? what was the trickle down effect to the average person? etc) in tourism, and can NEVER PROPERLY explain how is it that with so much discounting taking place in the fourth largest sector – Tourism – Tourism could still grow by a claimed 5 %, yet explain how could it have led all other sectors – including the bigger sectors like Retail, Wholesale And Distribution, Financial Services, and the Government Sector – which, though, all perfomed unsatisfactorily under the period of review – in this impossible 2.1 % growth rate for the country.

    Moreover, the Governor must tell the public what year is the base year for holding tourism “prices” constant over and above nominal tourism GDP “prices”, that the Central Bank, or the Barbados Statistical Service, is using to help measure for growth or decline in the tourism sector?? Are they bigger than ought to be?? And he must tell the public too about the real reasons for implementing the remeasured parameters of the Barbados economy in 2009/2010, in this current period of decline.

    We have to say it again that there has been NO comparative growth taking place in the Barbados economy since 2007. None whatsoever!!!

    So, who the Governor of the Central Bank of Barbados thinks he is fooling about growth??

    PDC


  43. LOL no he can’t wait to thief from ther old peoples hampers !!! When a person such as this Bovine ass can stoop so low to thief from those he was put there to help really does send chills down my spine, nasty piece of low life some may say that he is sediment as that sinks to the bottom and that is where he resides and the bottom of the life cycle.


  44. @Henderson Bovell

    Can you state what are the indicies you are using to support your argument that Guyana is growing compared to Barbados. Is it on the basis of GDP only? Have you considered Guyana is a country which is driven by internals i.e sugar, gold, bauxite etc. On the flipside Barbados is built out on services (externals).

    Don’t let us insult the audience.


  45. @DAvid
    No joke re Moodys. The window of opportunity for resolving the debt-ceiling debate is shrinking fast. If we think things are bad now, if these guys can’t reach an agreement we’ll all be in ducks guts. August 2nd is D-Day.

    http://www.politico.com/news/stories/0711/58942.html

    As for B’dos the middle class is bawling for blue murder as they should. Ironically this is where most willing voters lie. It’s hard to see how the DLP can convince this bloc that their budgetary policies are deserving of a re-election when the financial pressure and strain felt here is so real and personal.


  46. @ David: What about the Offshore Oil Exploration Programme? What is the status as regards, converting the Sugar Industry to a: Sugar Cane Industry, i.e, pharmaceuticals, ethanol, electricity and so on? What about Barbados’ investment capital into Guyana?

    We need to finish the reforms in the telecommunications sector if we are truly to benefit from the technological gains. If we were to redefine universal access in the telecommunications sector from basic wired telephony to free basic access to the Internet up to 512K we would guarantee a platform for equality of opportunity while enhancing our competitiveness both domestically and as a domicile of choice significantly.

    Then there is the issue of factoring which this Administration promised to introduce some 16 months ago. I wonder how many businesses have had to tighten their belt and lay off workers simply because they could not survive the prolonged delays in cash flows. How many have suffered while waiting for Government or private enterprise to pay?

    no enterprise should be brought to the brink of disaster because it cannot get a VAT refund in a timely manner. It is counterproductive. If government cannot refund the returns in a timely manner then it needs to look at easing the situation for enterprise. I would like to hear your views on a Refund Certificate that can be used as collateral to extend an overdraft, secure a loan or enter into a factoring agreement.

    You must see Guyana, Suriname and Belize in the context of the CSME as legitimate destinations for investment, especially in manufacturing and agriculture. Barbadian-based companies must lead the opening up of western Guyana (the Pomeroon known as the bread Basket of Guyana and the vast Rupununi prairies) and through investment to the greater opportunities of the phenomenal growth rates in northern Brazil – it will change the economics of the southern and eastern Caribbean for the next thirty to forty years! If we do not do it, others will.

    THIS IS WHY THE HON. MIA AMOR MOTTLEY, Q.C., M.P., IS BRILLIANT AND WHY SHE IS THE LEADER BARBADOS NEEDS AT THIS TIME.

    Let’s talk!!!!


  47. @ David

    So why buy the argument that compares Barbados to the PIGS?

    @ Chuckles
    The cuts in Britain are based purely on political ideology, the Conservatives are just happy to use the deficit and all that talk to support their long-held belief in the market. The result has been the same as the DLP, as I said before, a flat-lined economy and numerous u-turns on policy.


  48. @ David
    I know nothing about economics apart from juggling the coppers on Tuesdays and Fridays to determine whether to buy a single Super Lotto or 2 Mega Sixes. lol. I hope you can open the following url’s to do a comparison of the wonderful Guyana economic performance vs Barbados’ poor performance

    http://www.heritage.org/index/country/Guyana
    http://www.heritage.org/index/country/Barbados
    You can read the two articles but here are two extracts from them

    Barbados’s economic freedom score is 68.5, making its economy the 42nd freest in the 2010 Index. Its score is 0.2 point better than last year due to improvements in its freedom from corruption and monetary freedom scores. Barbados is 6th out of 29 countries in the South and Central America/Caribbean region, and its overall score remains well above global and regional averages.

    Guyana’s economic freedom score is 49.4 , making its economy the 151st
    freest in the 2011 Index. Its overall score is one point higher than last year, mainly as a result of improvements in fiscal and monetary freedom. Guyana is ranked 26th out of 29 countries in the South and Central America/Caribbean region, and its overall score is well below the world and regional averages.

    I suppose that some smart economist will say that the above statements are
    meaningless.


  49. @ Enuff

    What is the political ideology of a coalition government? This is 2012. Are you up-to-date on UK politics?


  50. @ Enuff

    Typing error. Above should have read

    What is the political ideology of a coalition government? This is 2011. Are you up-to-date on UK politics?


  51. @ Enuff
    Nobody in UK knows what the Liberal Democrats stand for in terms of policies and beliefs. Do you?


  52. A character using the alias: “Pooposition Is At Sea,” has been making some nasty comments about a citizen of Barbados on this blog and despite sound advice from David that: “You need to back off,” he has been proceeded arrogantly.

    Permit me to set the record straight, as regards: “The Christmas Food Gift Programme” before called the: “Hamper Programme,” executed by the National Assistance Board (NAB), under a Barbados Labour Party Government.

    One of the first things done when I became Chairman of the Board of the NAB in 2003 was to get the Board to agree to a written policy, which would change the name and regulate what was to become: THE ANNUAL CHRISTMAS-FOOD- GIFT PROGRAMME.”

    That policy reads in part:

    “The annual Christmas-food-Gift Programme, or the Christmas Barrel Programme as it is affectionately referred – shall be a needs-based programme of the Board, and is provided for at Section 5. (1) (d) of the National Assistance Act, which states: “The function of the Board shall be to carry out such duties and functions in connection with assistance to poor and needy persons (medical and non-medical) as may be imposed on it by this Act… .”

    Accommodation is also provided within the spirit of Section 5. (1) (e) of CAP. 48 of the Laws of Barbados, which states: “The function of the Board shall be to accept and administer gifts of money and property from individuals or organizations donated to it for the benefit of poor and needy persons.” THE SECOND THING THAT THE BAORD DID WAS THAT IN 2004, IT CHANGED THE PERSON WHO COORDINATED THAT PROGRAMME.

    Page 3, Item 4. of the official Minutes of the National Assistance Board, of Meeting N0.2/2006 held on February 22, 2006, confirms that in 2003, the NAB distributed a meager 454 hampers. By 2004, that number jumped to 750 and in 2005 to a whopping 1024.
    In fact by the 2007 the NAB was distributing a massive and breath-taking 2,500 Food Hampers. Where food items were inefficient to give a hamper to the Board’s high standards, those items were given to the Church and credible Civil Society Organization who had a ‘Meal on Wheels Programme.’

    ANALYSIS
    How is it that in 2003, when according to the DLP – Barbados was a land of plenty – a time when a thousands were employed, so much so that according to the DLP – thousands were brought in to Barbados to do work bajans did not want to do; A time when people felt good that their jobs was not under threat; the economy was sound; OIL AND FUEL PRICES WERE LOW so too inflation and the cost of living – and yet – the NAB was only able to give-out a mere 454 Hampers?

    How is it that with me as the CHAIRMAN of the Board of the NAB and despite the cost of living going through the roof by then; oil prices and food prices galloping through the ceiling and yet – the NAB was able to distribute 2,500 Hampers by 2007?

    From 454 Hampers to OVER 2,500? Here is where it got interesting. The person, who was removed from coordinating the progamme, told Sinckler that BLP politicians were getting hampers. What she did not tell both he and Thompson – who rushed and held a Media Conference – was that DLP politicians were getting too. Not for themselves but to distribute to poor people in their constituencies.
    What the DLP Operative did not explain to Sinckler nor Thompson – is: why is it that when food prices were extremely high in Barbados, the National Assistance Board (with Henderson Bovell as the Chairman of the Board) was able to distribute FIVE TIMES AS MANY HAMPERS TO POOR PEOPLE than when she and her DLP friends coordinated the Programme in 2003.

    CONCLUSION:
    I will consider any further and similar comments from Senator Peter Gilkes: a hostile act of malice, as well as an unprovoked and unjustified attack on me – hence an act of war, by an “unlawful combatant.”

    Peter Gilkes, you were warned!!!!


  53. Not sure how many heard Clyde Mascoll today on the talk show? He suggested Barbados has a fiscal (spending) problem and not an economic one. Interesting to note he agreed the other indicators in the economy like fx reserves, unemployment etc were not that bad in the present circumstances.

    Here is the point we don’t get: hasn’t Mascoll criticized the level of transfers and subsidies by this government? Isn’t this the reason unemployment has been kept stable? We can’t have it both ways .Mr. Mascolll.


  54. David,

    Mr. Clyde “the Glyde” Mascoll, good man he is, THOUGH HE IS IN THE WRONG DAMN PARTY, is known for making many strange but questionable distinctions in many of his writings/mouthings, like, it is not the size of the gross government debt but the structure of it, and his most recent one that some political analysts are obssessed with identifying who should lead rather than how we should lead (In his column – What Matters Most – Daily Nation, Thursday, July 14, 2011).

    So, get accustomed to such Mascollonian conduct, if you have not, David.

    But, on the more important question of your belief (posted above) that Mr. Mascoll has suggested that the problem that Barbados faces is a fiscal one rather than an economic one ( plus his supportive trailers of foreign exchange, unemployment being not bad in the circumstances – according to what you are saying) this still does not seem to hold any water if one were to have simply just read Mascoll in his said Thursday column – without one actually listening to him on Getting Down to Brasstacks yesterday ( one hopes that you are not attempting to minimize in your own mind the massive country-wide problems this so-called economy of Barbados faces at this stage).

    (This particular member of the PDC writing this present contribution did not happen to hear what Mascoll would have said, so one can only go on what you allege about Mascoll)

    However, any possibility of Mascoll having really said what you are alleging must be a real problem then for Mascoll himself to correct given some of what has been reported to be stated otherwise by him in his column.

    But from your stand point, we believe that Mr. Mascoll ought to himself become more aware of the possible inconsistencies that he might be making at any given time when he is communicating multiple times with the public on the same day/period, given that in truth and in fact some of the things that has been attributed to him in his column, are theoritically at variance with what you have said that he said on Brasstacks yesterday.

    Nevertheless, on the day that he went on the particular radio call in program, interestingly enough then in his column he writes that the excessive borrowing of the government over the last three years has not contributed to ECONOMIC GROWTH AND THIS IS WHERE THE PROBLEM LIES (IN EXCESSIVE GOVERNMENT BORROWING – a failure to properly MANAGE PUBLIC SECTOR RESOURCES, which leads to the ECONOMY BEING COMPROMISED, says he) …….. Furthermore Mascoll has identified such in the context of the proverbial fatted calf getting thinner at the same time as this year is the fourth (successive) year of national ECONOMIC DECLINE.

    He goes on to highlight that NOT ONLY has the local borrowing limit been increased on four occasions, but there has also been more foreign borrowings and yet there are no major projects to show for the excessive borrowing.

    So, clearly Mascoll in his column is writing things which – when placed purely against what you are attribituing to him, from his making certain points on the calling program – are inconsistent with your claims – which might too be a case of it not really being your fault – but his.

    PDC


    • One gets the clear impression that Mascoll is being a devil’s advocate, a political provocateur and operating out of a sense of political opportunism.

      This is our opinion.


  55. Even without the Moody’s downgrade, it is crystal clear that the out-going Democratic Labour Party Government has failed to: “ensure domestic and external confidence, in the ability of the Government to manage its resources in an efficient and balanced manner.”

    The point is: everything the DLP does from here – up to the time it calls elections – will be pure “time-wasting.” Its best is simply not good enough and the DLP is functioning way below the standard required, to put this country back on track.

    It is clear that Moody’s is not “waiting to see,” but for some strange reason and even with 10,300 already on the bread-line, some Barbadians seem to be, despite the disorder created by the DLP, as regards Barbados public finances!

    The DLP is yet to explain why despite saying to public servants that they should hold strain – there is an allegation that the Government’s wages bill still managed to increase by some 20% or by some $32 million.

    Subsidies and transfers is money from central government to statutory boards. The entity Sir Courtney cautioned, employs people. So, with an economy shrinking and public finances D’ minishing – the government increase expenditure as regards entitlements and the engagement of more dlp-people but to do what is UNKNOWN, since it is merely paying utilities, accommodation AND NIS but not executing PROGRAMMES.


  56. Hants | July 12, 2011 at 11:05 PM |
    Bajans will have to tighten their belts tighter.

    Wunna melts gine get squeeze just like we wun up hey in Canada.
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXThe Central Bank Governor has also advised all Bajans to go out and support Rihanna Loud Concert………….even if it costs $500 a ticket .
    Nero fiddled while Rome burnt.

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