163 responses to “Economist Ryan Straughn Sees the Need for More Barbadians to Understand How the Macroeconomy Works”

1. 

   balance

   September 26, 2013 at 6:52 am

   
   

   Bushie before we deal with the wastage of the BLP administration between 1994-2008, do you not think that it would be informative to hear the views of others with respect to how the economy should have been restructured?

   and the advantageous difference it would have made to our present predicament

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2. 

   Bush Tea

   September 26, 2013 at 7:20 am

   
   

   @ balance
   ‘Restructuring of the Barbados economy’ would have meant the conceptualization, implementation and management of a long term sustainable development plan for the place.
   It must be obvious that tourism would not last forever
   …that economies undergo cycles….
   …that hard times would be somewhere in our future…shiite man, it is called a RAINY DAY….

   During times therefore when things were good COMMON SENSE should have guided us to:

   1 – draw up a long term national strategic plan (and not the nonsense about first world status or graduates in every house)

   2 – set aside savings while the sun shone to implement the strategic plan and to deal with anticipated rainy days

   3 – work to bring Bajans on board with some kind of common vision of their future

   4 – establish SYSTEMS (such as a meaningful university, national bank, Agricultural Agency) to support the common vision

   In short, YOU MAKE HAY WHILE THE SUN SHINES.

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3. 

   balance

   September 27, 2013 at 2:57 pm

   
   

   1. Bush Tea| September 26, 2013 at 7:20 AM |
   Thanks Bushie for your as usual erudite response but here is mine.
   @
   ‘Restructuring of the Barbados economy’ would have meant the conceptualization, implementation and management of a long term sustainable development plan for the place
   SO THERE WAS ONLY A NEED FOR THIS FARSIGHTED THINKING FROM 2000 WHEN IN YOUR VIEW THE COUNTRY WAS AWASH WITH MONEY. AND HOW WOULD THIS FARSIGHTED THINKING HELP THE COUNTRY IN ITS PRESENT DILEMMA BEARING IN MIND THAT THE SUCCESS OR FAILURE OF OUR ECONOMY IS BY AND LARGE AS SOME WOULD WANT US TO BELIEVE ONLY CONNECTED WITH THE PERFORMANCE OF THE GLOBAL ECONOMY.
   It must be obvious that tourism would not last forever
   that economies undergo cycles….
   …that hard times would be somewhere in our future…shiite man, it is called a RAINY DAY….
   Are you saying that tourism is our only major foreign exchange earner and even though I will concede that the only thing that has proven so far to last forever is Christ and death itself; I wish to know why the other Caribbean tourist oriented countries some considered in structurally inferior to us performed much better than Barbados despite the recession. If I may go further and posit the question- Was not some form of re-structuring performed with the introduction of legislation to facilitate offshore banking in the form of a proliferation of International business companies and SBC’s? Didn’t the revenues from these purported money laundering activities positively impact on the economy?

   1 – Draw up a long term national strategic plan (and not the nonsense about first world status or graduates in every house)
   What do you mean by a long term national strategic plan?
   If you mean like what is pasted below. Well I do not have much faith in such adventures. I have been around long enough with the opportunity to have been involved at some level to see those documents for what they are worth just documents for public consumption from both sides.
   But there is your strategic plan covering 2010-2025 and one prior covering 2001-2009. Whether the goals were attainable or achievable or sustainable is another matter but indeed there was a plan.
   And closer to home was there not “a medium term strategic fiscal plan when the present administration assumed office to bring down the deficit and balance the budget? Is it still in place? Plans remain just what they are, plans unless implemented.

   PREPARED BY THE RESEARCH AND PLANNING UNIT
   ECONOMIC AFFAIRS DIVISION
   MINISTRY OF FINANCE AND ECONOMIC AFFAIRS
   GOVERNMENT HEADQUARTERS
   BAY STREET, ST. MICHAEL,
   BARBADOS
   TELEPHONE: (246) 436-6435 FAX: (246) 228-9330
   E-MAIL: economicaffairs@gob.bb
   JUNE, 2005
   3
   FOREWORD
   THE NATIONAL STRATEGIC PLAN OF BARBADOS 2005-2025
   The Rt. Hon. Owen S. Arthur
   Prime Minister and
   Minister of Finance
   And Economic Affairs
   The forces of change unleashed by globalisation and
   The uncertainties of international politics today make it
   Imperative for all countries to plan strategically for their future.
   This is all the more true for small countries like Barbados.
   When historians come to review our time, they will no doubt
   Be interested in how we viewed our present circumstances
   And conceived of the way ahead. The National Strategic Plan
   Of Barbados 2005-2025, the country’s first, will without doubt
   Constitute their principal source.
   This Plan articulates a very clear vision for Barbados in 2025.
   This vision is:
   “A fully developed society that is prosperous, socially just and
   Globally competitive”.
   But no vision or plan will be successful unless the people fully
   Embrace it and commit them to its realisation. That is why this
   Plan places people at the centre of our development efforts.
   Accordingly, all the people of Barbados must pledge to work together
   To transform Barbados into a fully developed country; a model
   Democracy that is prosperous, productive, peaceful, socially just and
   Inclusive; and a centre for high quality services whose standards of
   Excellence are global and, at the same time, rooted in the best of
   Barbadian traditions.
   As a nation, we can realise our vision and achieve our strategic goals.
   We have a solid foundation on which to build. We have the confidence
   To take on tough challenges. Thirty-eight years of independence have
   Served us well.
   Indeed, we have crafted this National Strategic Plan around the
   Inspirational words of our National Anthem, from which has flowed
   Our six broad strategic goals. These are:
   1. “Inspired, exulting, free”: Unleashing the Spirit of the Nation.
   2. “Firm craftsmen of our fate”: New Governance for New Times.
   3. “Strength and unity”: Building Social Capital.
   4. “These fields and hills”: Strengthening the Physical
   Infrastructure and Preserving the Environment.
   5. “Upward and onward”: Enhancing Barbados’ Prosperity and
   Competitiveness.
   6. “Strict guardians of our heritage”: Branding Barbados
   Globally.
   4
   5
   FOREWORD THE NATIONAL STRATEGIC PLAN OF BARBADOS 2005-2025
   These broad goals embrace the essence of what we as a people need
   To accomplish in order to realise our vision.
   We, the people of Barbados, out of an oftentimes brutal history had
   The resilience, adaptability and creativity to forge a unique Barbadian
   Nation and to fashion a post-colonial society as famous for it’s political
   Stability as for its economic viability.
   We, a people accustomed to a process of gradual, orderly change, are
   Now confronted with the need to cross, in one determined leap, a global
   Chasm of progress.
   We, a people steeped in tradition and cautious in our approach to
   Change, are now being called upon to modernise our Constitution,
   Cast off the last vestiges of colonialism and take full responsibility for
   Ourselves as a Republic with a Barbadian Head of State, and with the
   Caribbean Court of Justice as our own highest court of appeal.
   We, a people nurtured largely within the confines of a small island,
   Now have to merge our singular identity in the widening circles of the
   Caribbean, the Americas and the global community.
   To do so, Barbadians of all generations, classes and races, wherever
   Located, must come together to unleash our full potential and make a
   Wholehearted commitment to building a more prosperous, just and
   Peaceful society.
   We Barbadians have all that it takes to continue to prosper in the world,
   But in doing so we must never lose our soul.
   Can we invoke the courage and wisdom that inspired and guided our
   Forefathers in order to undertake the most unprecedented and historic
   Transformation in our economic, social and physical landscape since
   Independence in 1966?
   We can, we must, we will!
   The Rt. Hon Owen S. Arthur
   Prime Minister and Minister of Finance
   And Economic Affairs
   5
   6
   ACKNOWLEDGEMENTS
   THE NATIONAL STRATEGIC PLAN OF BARBADOS 2005-2025
   The Ministry of Finance and Economic Affairs is grateful to the
   Coalition of Trade Unions and Staff Associations of Barbados, led by Sir
   Leroy Trot man; the Private Sector Association, led by Mr. Chris Deceives;
   The Non-Governmental Organisations and the officers of Government
   Ministries, Departments and Statutory Bodies for their very valuable
   Assistance in the preparation of the National Strategic Plan of Barbados
   2005-2025: Global Excellence, Barbadian Traditions. These organizations
   And institutions provided extremely useful oral and written inputs during
   The drafting of the Plan.
   The Plan benefited immensely from the intellectual advice and guidance of
   The academic community, particularly Ms Kim Tudor, and Professors Frank
   Alleyne, Hilary Beckles, Andrew Downes and Michael Howard.
   The Ministry is indebted to Dr. Peter Laurie who not only made valuable
   Inputs but assisted in the editing process.
   The Ministry of Finance and Economic Affairs expresses special thanks to
   The Working Group on Strategic Planning, chaired by the Hon. Reginald
   Farley. This Working Group drafted the “Vision Statement and Broad
   Strategy-Barbados 2021 and Beyond: Global Excellence, Barbadian
   Traditions” which was approved by the Cabinet in 2004 and was the
   Foundation on which the Plan was formulated.
   Mr. Carson Browne, in his capacity as Permanent Secretary, Economic
   Planning, Ministry of Economic Development spearheaded some extremely
   Valuable preparatory work between 2001-2003.
   The Ministry also wishes to thank Sir Courtney Blackman who’s “Towards
   A Barbados National Strategic Plan, 2001-2010” was a very useful reference.
   Acknowledgement must be made of the assistance provided by the staff of
   The Government Printer, especially Mr.DurandoToppin, the Government
   Printer and Mr. Steven Massiah, the Graphic Artist, who designed and
   Prepared the document for printing.
   Finally, the Ministry expresses appreciation to the staff of the Research
   And Planning Unit, particularly, Chief Economist, Mr. Patrick McCaskie,
   Senior Economist, Mr. Derek Gibbs, and Senior Economist, Mr.Fabian
   Griffin for their tireless dedication to the drafting of the National Strategic
   Plan.
   Bentley DeV. Gibbs
   Permanent Secretary
   Economic Affairs Division
   Ministry of Finance and Economic Affairs
   7
   TABLE OF CONTENTS
   EXECUTIVE SUMMARY ………………………………………………………………………. 8
   I. ECONOMIC AND SOCIAL OVERVIEW ……………………………………… 11
   II. ANALYSIS OF OUR PLACE IN THE WORLD………………………………..17
   III. THE THEME ……………………………………………………………………………… 25
   IV. CORE VALUES………………………………………………………………………….. 26
   V. THE VISION ……………………………………………………………………………… 27
   VI. STRATEGIC GOALS………………………………………………………………….. 29
   GOAL ONE:
   “INSPIRED, EXALTING, FREE”:
   UNLEASHING THE SPIRIT OF THE NATION ……………………………………………………………..31
   GOAL TWO:
   “FIRM CRAFTSMEN OF OUR FATE”:
   NEW GOVERNANCE FOR NEW TIMES ……………………………………………………………………..32
   GOAL THREE:
   “STRENGTH AND UNITY”:
   BUILDING SOCIAL CAPITAL …………………………………………………………………………………… 34
   GOAL FOUR:
   “THESE FIELDS AND HILLS”:
   STRENGTHENING THE PHYSICAL INFRASTRUCTURE
   AND PRESERVING THE ENVIRONMENT…………………………………..….. …. 35
   GOAL FIVE:
   “UPWARD AND ONWARD”:
   ENHANCING BARBADOS’ PROSPERITY AND COMPETITIVENESS…………………..36
   GOAL SIX:
   “STRICT GUARDIANS OF OUR HERITAGE”:
   BRANDING BARBADOS GLOBALLY….………………………….….. ………. 38
   VII. NATIONAL OBJECTIVES, STRATEGIES AND TARGETS………………… 39
   VIII. FINANCIAL RESOURCES ………………………………………………………………….90
   IX. IMPLEMENTATION ………………………………………………………………………….91
   X. PLANNING MATRIX……………………………………………………………………….. 92
   APPENDIX: SECTORAL OBJECTIVES AND STRATEGIES ………………………132
   7
   8
   EXECUTIVE SUMMARY
   THE NATIONAL STRATEGIC PLAN OF BARBADOS 2005-2025
   The Plan first presents an economic and social picture of Barbados
   As it sets out on its journey. This picture, sketched from the last
   Twelve years, shows a Barbados that has achieved remarkable economic
   And social progress. One defining indicator of this performance is its
   29th ranking among all countries in the world in the United Nations
   Human Development Report 2004 and its designation as a leading
   Developing country.
   This picture further highlights Barbados’ strengths, weaknesses,
   Opportunities and threats. The analysis supports the firm conclusion
   That Barbados can secure its desired place in the world as a fully
   Developed society that is prosperous, socially just and globally
   Competitive.
   The Plan embodies the theme “Global Excellence, Barbadian
   Traditions”.This theme conveys the message of a Barbados that is a
   Successful and globally competitive society, fully integrated into the
   World economy, but at the same time capable of preserving and
   Strengthening its own identity, enterprise, national sovereignty, and
   Traditions.
   There is also a set of core values that provides an ethical framework
   For the transformed Barbadian society we envisage.
   The Plan advances six strategic goals in pursuit of the national vision
   For 2025.
   GOAL ONE speaks to a cultural transformation that will reinforce
   Barbadian values and national identity and act as a catalyst for
   Propelling Barbados into the 21st century as a fully developed society.
   This goal will seek to create greater equity and social justice, while
   building an inclusive society with opportunities for all.
   GOAL TWO envisions vastly improved governance. It foresees a
   Barbados with, a “fully Barbadianised” constitution free of all vestiges
   Of colonialism; a modernised parliamentary and electoral system;
   Greatly enhanced political participation and the empowerment of all
   Communities. It also envisions a radical overhaul of the administrative
   Machinery of government as a catalyst for change, while also
   Strengthening civil society as a critical part of the governance for the
   21st century. It further envisages that there will be higher levels of self-
   The National Strategic Plan of Barbados 2005–2025: Global
   Excellence, Barbadian Traditions provides the blueprint for the
   Realisation of Barbados’ vision of becoming a fully developed
   Society that is prosperous, socially just and globally competitive by
   The end of the first quarter of this century.
   An excerpt From the IMF BOARD Concludes 2005 Article IV Consultation with Barbados reads thus- “The Barbados government encourages development in; Financial services, informatics, e-commerce – forms of re-structuring in my view.

   What is wrong with having a graduate in every household? Isn’t there a certain pride in their voices when the grassroots man/woman proudly tells everyone ‘My son/daughter at UWI, yuh knows?
   Wouldn’t there be an opportunity for these graduates to export their services elsewhere like doctors from India years ago.
   Would you have preferred to hear a Prime Ministerial announcement indicating that University places would be cut because we do not want to have a graduate in every household?

   2 – Set aside savings while the sun shone to implement the strategic plan and to deal with anticipated rainy days
   Savings from where. We barely make ends meet and all of our major capital works projects -Abc highway, Dodds, Gems, Greenland, Airport expansion, Blackman- Gollop school, Baob Towers, Coast Guard station, Sherbourne, Seafoods ltd. Carsicott, carib west are financed by borrowing but excerpts from an ‘Analysis of Economic and Social development in Barbados’ 1965/66 – 998/1999 prepared by officers of the central bank reveals the following
   Wages and salaries have traditionally been a major component of the government’s current expenditure, between 45 and 60 % and my words (would of a consequence be from savings)
   Capital works projects financed out of savings generally occur in an election year my words (to buy the electorate/votes)
   But to be fair all is not negative, it positively reports that “fiscal policy has been directed towards enhancing the economic development process and providing for the social welfare of the population lest you forget my words (we punch above our weight). It further reports that through the tax- expenditure mechanism (my words- in my view aform of restructuring) the Government has been able to engage in social and economic engineering as it sought to manage short-run economic changes and provide provision of social services’ It goes on to say “The expansion of the social and economic services provided by the Government has contributed significantly to the improvement in the socioeconomic welfare of the population. (Wasn’t the above making hay while the sun shines?)
   Restructuring can take many forms and one is the shifting of tax policy such the switch from direct to indirect taxation with the streamlining of the direct (personal income) tax system and the indirect tax system with the introduction of a VAT in 1997 and the removal of several indirect taxes.
   The provision and expansion of free education could be another form.
   Surely the Tenantries Act certainly one of the most or the most farsighted pieces of social legislation which empowered a vast majority of the lower classes in Barbados as a new landowning class must be viewed in the context of re-structuring.
   And how would you view the Conversion of Casual Posts to Public Officer Posts in the 1997 budgetary presentation making all casual employees public officers and giving thousands of Government workers the same pensionable rights under the Pensions Act, Cap 25.
   Prior to the enactment of this legislation, casual employees like workers attached to MTW/ General workers /Artisans were only entitled to a year’s salary on retirement until NIS kicked in. In my view another great piece of legislation which would have as a consequence not only transforms the country socially but structurally by enabling a group of persons to engage in more constructive planning for the future.
   The reverse tax credit to minimize the negative impact on the loss of disposable income by those at the bottom as a result of the implementation of VAT must be some form of re-structuring.
   Re-organization and changing the income tax bands so lower income workers working for under $25,000.00 would no tax thus taking thousands of lower income workers off the tax payroll and placing more income at their disposal for circulation in the economy.

   Exempting to my mind hundreds of persons like myself from paying land tax by making land at a value of $190,000.00 tax free and offering persons over 65 tax rebate is a form of restructuring because it places more income at the disposal of the average person
   The rainy day was taken care of by borrowing to keep our foreign reserves intact and this much maligned policy apparently according to the experts was what kept us floating even if dangerously in these purported perilous times.

   3 – Work to bring Bajans on board with some kind of common vision of their future
   Bushie- this is idealistic to say the least when our system of governance is fuelled by entrenched political partisanship and patronage and stifles vision unless seen from a partisan eye and no one wants to lead the charge to dismantle this iniquitous system which encourages cronyism and sycophantic behaviors to the detriment of the country. How therefore under our present system of governance can this vision be promulgated? I can understand your point about vision but in a different context because where there is no vision, the people eventually perish.
   I hold no brief for Mr. Hilary Beckles but when compared to previous Principals, would you not describe Mr. Beckles as visionary?
   B
   4 – Establish SYSTEMS (such as a meaningful university, national bank, Agricultural Agency) to support the common vision
   What do you mean by ‘a meaningful university- hasn’t the UWI produced outstanding scholars of world repute in medicine, law, economics, engineering- Can the university be blamed for their lack of progress and/or contribution after passing through the doors of the UWI.
   What can a national bank do that the credit unions cannot do? They operate more stringently than the recognized commercial banks. They no longer offer generous concessions. A national bank under our system of governance would fall prey to the same cronyism to the detriment again of the taxpayers and those familiar with the workings of our former National bank and the Barbados Development bank know that only too well. “Tell so and so I send you”. Other than the nostalgia which something indigenous represents and its popularity probably stemmed from a desire to patronize an institution Bajan but surely not good service. The BNB never influenced banking in Barbados.
   There was once an institution in Barbados called ‘the Agricultural Credit Bank’ created with the noblest of intentions to facilitate agriculture. Guess what happened. The politicians and their cronies raided the coffers by taking advantage of the concessions offered and some hardly repaying and some not at all.
   Alas, what a vision!
    .
    With regards to wastage, it occurs under all Administrations. Even our own best laid plans formulated with the best of intentions sometimes cause us grief.

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4. 

   Inkwell

   September 28, 2013 at 6:43 am

   
   

   A well argued case, balance, in refuting the charge that the previous administration did nothing to restructure the economy “in times of plenty”. The facilitation of the massive growth and contribution of the offshore banking industry and Foreign Sales Corporations stands out as a major plank of those efforts, along with with major tax reform as you have pointed out.

   Reduction of corporation tax and the setting up of various funding agencies to facilitate private sector innovation and expansion are other facets not generally recognized.

   A Government’s mandate is to put in place an infrastructure, a framework and an atmosphere of confidence in which the private sector can operate and expand. With growth in the private sector, there inevitably follows growth in Government revenues. Increases in taxation achieve the opposite, stagnation and contraction in the private sector.

   Given the charges of wastage and poor governance against the former Government, why would the present administration proceed on a five year program of outspending revenue by such massive amounts. “Misguided” is perhaps the most charitable comment that can be applied.

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5. 

   Adrian Loveridge

   September 28, 2013 at 7:13 am

   
   

   According to Reuters, the Government plans to issue new 12 year US$ Bonds next week at 8.75 per cent interest. How high can interest rates go on further borrowings?

   http://www.reuters.com/article/2013/09/27/barbados-bonds-idUSL5N0HN2Q620130927

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6. 

   Bush Tea

   September 28, 2013 at 7:15 am

   
   

   @ Inkwell
   All you and balance have demonstrated is that the governments that we have had in the last generation are exactly reflective of our population – characterized by mendicancy, lack of wisdom, and no vision. Wunna would have done exactly as they have done…amen.

   A people always get exactly what they deserve.

   Clearly neither of you are capable of grasping Bushie’s position… So let us agree to disagree in peace.

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7. 

   David

   September 28, 2013 at 7:24 am

   
   

   Fyi…please note BU asked Ryan Straughn to comment on the incongruity of his graphs caused by below line items included. He has not responded to date but BU remains hopeful

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8. 

   Inkwell

   September 28, 2013 at 7:36 am

   
   

   It isn’t that neither of us IS capable of grasping your position, Bush Tea. It is that people like you who think that they know everything are really, really annoying to those of us who do. LOL

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9. 

   Bush Tea

   September 28, 2013 at 8:52 am

   
   

   @ Inkwell
   “It is that people like you who think that they know everything are really, really annoying to those of us who do. LOL”
   ************
   No doubt.
   Some of us have even been crucified for that shit.
   However you may note that even when crucified, the TRUTHS that were the source of such ‘annoyance’ continues to be established as intractable.

   …besides, how do you explain Bushie’s overflowing cup 🙂

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10. 

    balance

    September 30, 2013 at 5:30 am

    
    

    “So let us agree to disagree in peace”
    I could live with that but was just beginning to enjoy the rumble. but just one further elucidation before I take my seat on the backbench and i am not professing to know everything but rather searching for information myself- this talk about ‘wastage’ which we attribute to both parties and use as an election mantra.
    Now I sincerely believe and I might be naïve but I do believe that projects and policies are conceived firstly with the expectation that the concomitant political mileage would redound to the benefit of the administration and political party if the project is successful and consequently to the benefit of the party.
    I do not believe that the DLP conceptualised such projects like SEAFOODS /CARSICOTT/COAST GUARD STATION AT OISTINS/ CREMATORIUM AT WARRENS/ CARIB WEST/ CARIBBEAN AIRWAYS TO NAME A FEW WHICH WENT WRONG WITH BAD INTENTIONS.
    similarly, I do not believe that the BLP conceptualised such projects as GEMS / GREENLAND/ URBAN COMMISSION/ CRABHILL POLICE STATION/BARRACK BUILDING TO NAME A FEW WHICH WENT WRONG WITH BAD INTENTIONS.
    I think that that the failure of most of the above mentioned projects would have been as a result of poor policy decisions perhaps as a result of bad advice.
    Yes, there are some projects particularly those initiated through STATUTORY CORPORATIONS where accountability from birth to completion of the project can be manipulated to suit the interest of the primus inter pares Minister who controls the grants and subsidies and the partisan appointed boards ; but the systems for manipulation of expenditure obtained through loans from international organisation or for large sums of money from the CONSOLIDATED FUND are more complex and strident as Hammie-la would attest.
    It is far easier to pressure the accounting office of a STATUTORY CORPORATION to pay ten thousand to cut down a tree that to obtain those funds from the consolidated fund. ask barrack or persons whose land is acquired compulsorily from Government.
    I would concede that since the introduction of the iniquitous 1974 constitutional amendments ascribing to the political directorate the power to appoint and disappoint; the system of governance has suffered through lack of quality either because some of those appointed at the highest levels in recent times at the behest of the politician has not been sufficiently schooled in the nuances of government administration to offer their political masters that quality of advice or in an effort to please their political masters serve up what is politically expedient rather than what is necessary for effective and efficient governance.

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    nomorecouchpotato.com

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    sport betting odds

    March 31, 2014 at 1:07 pm

    
    

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13. 

    Dompey

    March 31, 2014 at 1:56 pm

    
    

    Jusk Asking

    I my entire family supports the DLP because it is the party of the common folk in Barbados.

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