BU has defended the need for the Central Bank of Barbados to zealously guard its reputation. The Governor of the Central Bank has suffered from the tongues of fellow economists Owen Arthur and Clyde Mascoll over his method of communicating on the economy. In light of the recent decision by the Central Bank of Barbados to depart from the trusted approach of using statistics produced by the Barbados Statistical Service (BSS) – in this instance the unemployment number – it has inflicted serious harm to its reputation.
In the current climate the decision has provided political fodder for the struggling Barbados Opposition Party to raise it’s voice. What we have in Barbados these days is smoke and mirrors politics. On the government side we are witnessing the distasteful promotion of the late David Thompson’s memory to deflect focus on its economic performance to date. On the side of the Opposition every opportunity to gain political mileage is being seized. The political scientists explain that this is Westminster politics at its brilliant best, others suggests the counter view that extraordinary times call for extraordinary action by our leaders; a no show to date.
The decision by the Central Bank of Barbados to report a lower unemployment figure to that of the BSS was mischievous to be generous in description. Whether the number is 11% as reported by the Central Bank after completing its additional research or the BSS’s 12.1 %, the statistical methodology used by the BSS number is a margin of error +/- 1.9%. The conclusion therefore is that the revised number by the Central Bank falls within the range of 12.1% +/- 1.9%. More and more very simple issues are becoming highly politicised at the expense of the national interest. The Governor using a modicum of commonsense should have anticipated how his decision to depart from the BSS reported number would confuse an already fickle political climate in Barbados. What value has the Central Bank’s decision lend to the economic performance of Barbados?
In the same way our import cover has taken a one week dip so too the reputation and integrity of the Central Bank. It must be said that an error in judgement by the Governor of the Central Bank in this instance could have been ameliorated if our media practitioners and political animals would have taken the responsibility of apprising the public of the statistical possibility both numbers could be correct given the margin of error. Instead what we have witnessed since the economic 9-month review is smoke and mirrors stuff. The people like sheep assume party positions and in the midst of it all the truth of the matter is sacrificed at the altar of political expediency.
Could it be the Governor felt some political pressure to intervene given the political stakes?
The blogmaster invites you to join the discussion.