Central Bank Governor Advises Government To Reduce Expenditure, Modest 2% Growth Forecasted
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Bajan News, Barbados, Barbados Press, Blogging, Caribbean, Caricom News, Central Bank of Barbados, Governor Delisle Worrell
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Here is the video of the Governor’s press conference who is very clear that he will not become embroiled in exchanges with Opposition leader Arthur.
mms://multimedia.centralbank.org.bb/6mth_News_Conference_edit.wmv
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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/
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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
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@Henderson
You casnt wait to enjoy the sweets from power. Greedy hot will cool.
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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.
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@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.
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@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.
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@ 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!!!!
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@ 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. -
@ 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 performancehttp://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 themBarbados’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. -
@ Enuff
What is the political ideology of a coalition government? This is 2012. Are you up-to-date on UK politics?
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@ Chuckles
You for real? WTF!!
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@ 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?
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@ Enuff
Nobody in UK knows what the Liberal Democrats stand for in terms of policies and beliefs. Do you? -
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!!!!
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@ Chuckles
For sure it’s not the same as the Tories.
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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.
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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
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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.
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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.
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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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