The report coming out of the International Monetary Fund (IMF) that it ‘failed to realise the damage austerity would do to Greece’ makes for an interesting observation as Barbados is negotiating its own brand of economic austerity. The moral of the story for Barbadians is simple, we need to solve our problems by leveraging homegrown knowledge capital – see article IMF admits: we failed to realise the damage austerity would do to Greece. .
The admission by IMF Chief Christine Lagarde brings back the memory of pre-2007 and how global credit rating agencies contributed to the global recession by feeding demand for helter skelter consumption and ignoring a financial framework built on a questionable financial market which continues today to peddle questionable securities the like of credit default swaps, derivatives and electronic trading to mention a few.
During the recent presentation of the 2015 Financial Statement and Budgetary Proposals minister of finance Chris Sinckler insisted it was a home grown effort. However a visit to the IMF website supports the position the economic prescription the government seems committed to is NOT home grown. The huge debt to GDP gives Barbados little or no wiggle room to ignore the advice of international financial agencies largely responsible for influencing credit rating agencies. Despite what the prime minister and finance manager would have us believe a good sovereign credit rating does matter. The junk credit rating of Barbados makes borrowing on the capital market an expensive undertaking. Ask the Cahill people!
The news making the rounds this week and publicized at the BLP Tyrol Cot meeting last Sunday night: the government has been ‘analysing’ an IMF report on the state of the Barbados economy for about three weeks since the delivery of the Budget, and is yet to give permission for its release to the public. It supports the widely held view the Stuart government is inclined to manipulate information and engage in a lack of transparency for political advantage. The minister of finance was forced to hurriedly confirm the IMF report story the Monday after the BLP Tyrol,Cot meeting. What should be 0f interest to Barbadians – minister Sinckler confirmed the IMF is still concerned about the level of quantitative easing being practiced by the central bank of Barbados and government.
On a related note: the industrial relations climate in Barbados is ‘hotting up’ and it makes one wonder how effective the social partnership has been in the last couple of years, and we add minister of labour Esther Byer to the mix. BU suspects both unions have not forgotten the ‘black eye’ given to them by government and private sector in recent years. NUPW must still be smarting from the NCC matter and under a new management seems to be bent on retrieving its flagging reputation. There is also the Caswell Franklyn factor whose union has been making more noise than the two which are more established. It is unfortunate both sides have reached a point where dialogue has broken down, the last thing Barbados needs at this time is a national strike and low productivity. In the case of the BIDC – the current matter which has triggered industrial protest – it seems to be one better left to the law court to determine, but any issue maybe a good issue for the union to claw back its influence and membership.
The perilous state of the economy requires Barbadians to leverage the benefit of the large investment in education by resolving our problems. The rising tension in industrial relations in Barbados is symptomatic of a dearth in leadership in all facets of society.
290 responses to “Is the Economy Improving and Why Strike Now”
If we fast forward to solutions: if the two sides remain at loggerheads what next? Do we see a role for the court, Ombusman, Governor General, ERT where the decision will be binding on all parties to the dispute?
@Caswell
Are you able to point us to the part of the law which supports the GG playing a role in such matters?
@Jeff
Some times you go to the academic stratosphere with your columns, we promise to monitor an publish using our best judgement in the weeks ahead.
@ Jeff Cumberbatch
Thanks you, Jeff, I am looking forward to seeing and reading more of your writing on BU
Donna
Since you are so convinced of what you predict…..then put um to the test tomorrow..!
As we speak…..the Greeks in the referendum …..are trending to a ‘no’ vote.
Homegrown policies are better.
The Dems are right……we do not need…
no IMF policies!
@ Fractured
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please click the above to log in
Persons working in the public service for a long period of time have a reasonable expectation to retire at 65 not 60.
They also live in little Barbados where they have very little hope of finding employment in the private sector especially in a depressed economy.
The bigger picture is that the Government and the Unions could not negotiate a workable solution before the country is brought to a stand still tomorrow.
Just remember that you too have a crackable head! Although it aready seems to be more than half-cracked.
David
I have sent the act under separate cover
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Seems they should be hiring not firing.
key words. INVESTMENT & DEVELOPMENT
http://www.bidc.org/
David,
Thanks, David. Incidentally, Caswell is right. The GG may intervene, but then BOTH parties would have to agree to arbitration. Cap 360, I believe.
The following is the Trade Disputes (Arbitration and Enquiry) Act of Barbados and at Section 3.(1) says:
Thanks Caswell!
People power!
For the IMF to say that they didn’t realise the damage austerity would do to Greece is a blasted lie. Despite what the IMF would have you believe, the creation of that org. was to financially terrorize nations. They knew exactly what the Greek affects would be, because that was their initial intent….to bring nations to their knees. The IMF is a Financial Gangster Organisation. They just sit around and push keys on a computer and then you enslave your children’s children to pay bogus interest on some fake shit. DEBT is the new MONEY.
Now their biggest fear is for Greece to Exit the EU, because the other PIGS who are in deeper trouble financially would also Exit. So I think Mr. Yanis Veroufakis is the right man for them. Like he said he’d rather cut his arm off than force the Greeks into austerity. The Greek PM recently took a trip over to see big daddy Putin and and just watch how Putin show them exactly how to quietly dynamite their parasitic arses. That’s why they wanna take out Putin so bad. Greece should DEFAULT.
The reason why Russian and China along with the other BRICs have formed their own Central Bank is to get rid of the IMF and to rid the world of the nasty US Federal Reserve. The Federal Reserve does not play fair. They can just print their QE shit money at will while everyone else has to adhere to so-called ‘sound economic policies’
If the ‘leaders’ and Central bank governor in Barbados were savvy they would print their own damn money too just like the US Federal Reserve. The IMF nor US are in no position to tell anyone that they can’t print their own money. The US does it you can do it too. Greece should also just print their own Euros and take care of their people and furthermore return to the Drachma.
China and Russia are leading the way, so you Barbados can stay sucking at the calcified breast of your Queen and the stupid, ignorant, dumb,lying Americans or follow the Silk Brick Road.
Good for those Greeks. Fuck the IMF!
Agree with you Hopi the EU is worried about the contagion effect if not they would have jettisoned the Greeks a long time ago.
Hah!Jeff asks what we read on a Sunday.Wake up Jeff.I have come a long way from the days of the Advocate,Torch,Beacon,Observer,Truth,Daily News,Nation,Readers Digest,Time,Newsweek.Nowadays I selectively read most UK newspapers,BBC on line news,VOA on line news,Yahoo news,all on line Caricom newspapers from Bahamas to Guyana and the Israeli Haaretz.Sorry but I do not read the brown nosing Advocate.Never!
That’s right David. A German minister said earlier this week or last week that even if the Greeks defaulted, they could still stay in the EU…….ho..ho..ho…what a bleeping joke. I heard an elderly Greek woman said to hell with them…she’d rather die with her dignity than pay those gangsters a red cent. And its time Barbados tell them to eff off because the island doesn’t exactly have any resources that they can fly their bigs guns in and exact from them like they did with Libya, Iraq and now trying with Syria.
Good for Greece! Please don’t capitulate.
David
You might be interested to learn that I was invited to participate in Brasstacks Sunday, as a studio guess. Just as I was preparing to go to River Road, I received a telephone call advising that my invitation was revoked. Apparently, they did not want to have me in the studio with BIDC people.
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No No David, they would not have jettisoned the Greeks because they’re about keeping the EU intact because of NATO as well.
@Caswell
The logic Corey used was: the union had their turn last week and it was the turn of the BIDC this week.
Also let BU take this opportunity to confirm we will be posting the columns of Caswell, Jeff from next week, we already carry Adrian’s. You are smart enough to deduce what informs our position.
See Link to Economist:
http://www.economist.com/blogs/graphicdetail/2015/05/european-economy-guide
Caswell, I am sorry your apparent ‘invitation’ was revoked.
But it is doubtful if you would been able to contribute anything of substance……after years of villifying the NUPW……after falling out with them.
Ha……ha…..
!
That is not what I was told but I will leave it at that.
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Hants July 5, 2015 at 2:41 PM #
Seems they should be hiring not firing.
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And hiring they will do. The BIDC,and no doubt others in the public sector and private sector will follow suit, are following in the footsteps of Mannings some years ago when they retrenched just about all of its long standing employees, and replaced them with much younger people ,paying them at a far lesser rate, thus saving millions of dollars on the payroll. The BIDC, may be looking at hiring young people just out of school, and like one minister ,or politician, advised, give them bus fare and lunch money.
Fractured
I know that you are sorry. Like you, VOB did not want the truth but I will say it nonetheless. Government already has a legal opinion that it is wrong in law to terminate these workers in this manner. My understanding is that they want the workers to go to court so that they would have to wait until the case is over before they can get their money. And you know that the process in the courts can take years. The Union needs targeted strikes over a sustained period to achieve its goals.
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So Gabriel. How do you obtain local news and commentary? BU? You should try Al Jazeera too!
Not sure why David Ellis had to preface his remarks on the talk show today ‘the discussion has been taking place in a vacuum’. It must have embarrassed Corey Layne the moderator. He could have intervened and asked the questions he did without the jab.
The govt did not willy nilly dismiss these employees but sought several competent legal opinion/s before hand as a seal proof requirement that would not have them being sue for any breaches of contract related to these employees, Unfortunately the NUPW who are fighting tooth and nail is green behind the ears and is trying to play hard ball with an issue that if it goes before the court they cannot Win but is clenching their muscles with the hope that govt would renege and give in. Donville Innis said that he did all he could under the law. The PM on the other hand has gave a reasonable assessment with advice
The Fact of the matter that if this problem is not resolved in an amicably manner when the dust clears no body wins ,After all we are talking about a difference in five years before these 10 employees reached retirement age( yes) it should be that a level of fairness within the law is acceptable and provides legal foundation prior to the dismissal of these employees and suffice it to say that the legal advice (given) gave way to the BIDC upon which they were able to make the decision.
as a subscriber to the advocate i enjoy the differing opinions and the reporting of the news which is not slanted and chock-full of perceptions and speculation as a matter of FACT one of the few local papers that i read on a daily basis .
David, small question for you with your deep techno knowledge.
Based on the apparent absence of in Bushie’s words a ” BROADER promulgation of intelligent, considered ideas” is it not in your technical competencies to offer a weekly or twice weekly voice stream on topical issues with a panel of smart academics, business persons and the like?
A show providing clear, crisp, direct perspectives from the Jeffs, Caswells and maybe even the Grenvilles in our midst. Perhaps a joint venture with your boy over on Bajan Reporter.
A good fast paced format (2 – 3 subjects) of eloquent, informed panelists with a witty but sharp presenter over 45 mins with a few top questions emailed/texted in added to the mix.
From a economic perspective you have already built up enough gravitas, it seems to me, that you could underwrite some of the cost of doing that show with advertising placement from some local business to ease your production cost of time and resources.
Just a thought Mr Moderator.
Running Jeff’s and Caswell’s columns is all cool but hearing them (despite any contractual obligations) could add more heft, not so!
There is much going on and you have already identified yourself as a serious agent of change so what’s next!
Well done my colleague, Donville.
The retired workers received cheques with the monies lawfully due to them.
And all the cheques have cleared the banking system!
The workers quite rightly cashed their cheques! !
Now Akani Mc do – all says……STRIKE!
These workers get unfaired! !
This is all happening in an ‘educated and responsible ‘ NUPW.
Barbados deserves better……
Jeff
Al Jazeera,CCTV,Msnbc,Zimbabwe,Kenya,Nigeria,S.Africa,Japan.Local content from a mix of Nationnews,Bdos today CBCTV,VOB and PHoyos commentaries.
@De Word
Thanks for the suggestion.
Do you think advertisers would want to be associated with BU given our fearlessness in taking on the status quo?
Hopi, you speak of the Greek/IMF situation as if the Greek people and successive governments have no part in the current crisis.
The draconian and onerous IMF/creditor conditions are a function of overall lax management. The IMF did not break down the coliseum walls in Greece and impose harsh rules; the Greeks came seeking aid and solace again and again and with that came harsher and more strident penalties.
There something to the old parent’s tale to their daughters bout mekking sure they got vex money when on a date.
Firstly if your parent has to warn you then the daughter definitely dating wrong type of man or that daughter dating the right men with whom she is most comfortable– her class of man. Either way she knows what she getting into.
The Greeks knew who they were dating. And Tsipras is a now the big fox. His country dated those with whom they were comfortable and she appears to have her vex money in hand ; In this case a new suitor Putin provided more than vex money. So now Greece can walk away from that old date!
Is there a saying, beware Russians bearing gifts, or am I mixing my countries here! lol.
Akani McDowall said in a letter to Brasstacks today that tomorrows actions is not a strike but it will be a demonstration.
The NUPW obviously sees implication for eroding its membership with other statutory corporations waiting to see how the BIDC compulsorily retirement matter settles.
And yes some have negotiated their settlement cheques, not all however.
David, its about driving business. So yes of course you could.
It’s about clicks and audience. You have a better feel of your demographics than I do but I would hazard it’s trending older like 40+, with good disposable income and most with good discretionary income.
You have a good product and although not easy a practical price point can entice the mum and pop shops about BIM to put an image and ad on the site (or voice ad during discussion) specifically during topical national policy debates touting their business.
After all we speak oftem about growing small businesses.
I would not expect the Massy’s or COWs to be here although with all the stick Bizzy and his crew get here a smart marketer in his company would be proactively sound to run ads on your site depicting what they do and have done for B’dos. Not to stop the criticism but to give critics a better perspective than they may actually have. But of course they don’t have to do that so make the big bucks so they could care less what BU says.
In sum David this site is a good vehicle for ads if you were so inclined.
What credibility does the prime minister have to advise the NUPW after promising the NCC workers and the NUPW the ERT would have been easily accessed to hear their matter?
A Quick Guide to the Employment Rights Act
Section 31 (4)8……….Where 10% or more of a workforce is being reduced, the employer must consult with the employees or recognized trade union and write to the CLO not later than 6 weeks before the affected employees are dismissed.
@ De igrunt Word……….you’re not only mixing up countries but ur also spewing shite.
Contrary to your ‘popular’ belief, the banksters set up Greece and many others. Go back to the so-called sub-prime mortgage lending that started the financial avalanche in 2008. This was perpetrated by the banks like Goldman Sack et clique. Rating agencies like Moody & F… gave these financial time bombs excellent ratings when they knew that they were rotten to the core. These were invested in by Greece and other. Then the engineered collapsed came to fruition and the Greek people were on the receiving end of those bombs. The Greek people saw their investments go up in smoke and the Banksters made out like the bandits they truly are.
The Greek banks (which are owned by the International Gangsters) got their 1st heist from the people to the tune of about $20-$30b. That’s their 1st pound of flesh.
Then the banksters downgraded the Greek bonds and this made borrowing tres cher. Then around 2009-10 the gangsters robbed them yet again because of the bond manipulation.
Then in 2011 they wanted Papandreou to accept another bailout but he refused and was forced out of office by the banksters and replaced with Papademos one of their nice little choir boys. He then went onto to sign the life blood of the Greek people to every bailout that was forced upon them as in 2012. He accepted these loans which came with the condition that the country’s most profitable assest be privatised…these assests included water, electricity, port authority and a few more. Now this is the height of humiliation for any proud country but especially for Greece who after sitting at the Black Masters’ feet in Kemet, then returned to the western world and ‘civilized’ them.
So ‘NATURALLY’ under privatisation the country’s revenue decreased and the debt increased.
So you see my friend before you repeat the drivel that is spewed from the craws of the same media that’s owned by the same bankster gangsters, do a little research or better yet do a little thinking outside the ‘box.’
So Barbados should be very cautious with all this privatization talk like the shite Granville Phillips is purporting,
The following extracted from a Hopi comment is worth a highlight:
The Greek situation is an interesting one. What are the implications for IMF programs If Greek voters can reject an austerity package that comes with IMF financing?
David
Your 7.03pm post is right on the money.Stuart is an artful impressionist and does not carry through with his promises.This here NUPW,BWU,CTUSAB,BSTU is to show Stuart they have had more than enough of his style or lack of it.Mrs Byer is in the same category.All talk and no movement.Always status quo ante.
An interesting view from the Business Insider:
http://uk.businessinsider.com/greece-referendum-result-and-the-meaning-of-debt-2015-7?utm_source=googleplaynewsstand&utm_medium=referral?r=US
Extracted from the Business Insider link:
@ Justin Robinson
It just like a man rejecting and ejecting his children and their mother that live with him at his mother house because he has to study for a Phd, you should know ,
The implications for such austerity predicated IMF programs is that the IMF will go back to the drawing board and think up another scam because you can guarantee that the dominoes will fall. People are sick and tired of these International Gangsters who make profit off the suffering of others. The IMF works with Goldman Sacks and many other looters who are so intellectually bankrupt that their only way of making money is to undermine the economies of sovereign states and make war. This is the same Goldman Sucks that props up wall street with crack cocaine money.
Now Angela Merkel must look like the biggest fool in Europe. Maybe she’ll soon be forced out of office.
You GO GREECE! Verafackis you f’d them well. Good Boy! Good Boy!
@ Caswell Franklyn July 5, 2015 at 4:59 AM #
“By now this country should realise that we should take anything that Mr. Sinckler has to say with a pinch of salt. He has demonstrated over and over again that his word cannot be trusted. This nonsense of a 19 month home grown programme has been debunked long ago but he still kings to his script. This programme was designed by CARTAC which, even though its offices are located in Barbados, is an IMF agency”.
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You are right Caswell, I met the guy and he told me he was the IMF person stationed here. Home grown programme my eye…..
On to the BIDC saga……………..how could those two women sit there today and justify hurting people……..they did not prove their case…..they were quoting regulations and Delcia Burke was counter-quoting.
I had to wonder how would the said women like to be treated the way like the way they treated these workers under instructions from their political masters.
Where is the heart? But were these same workers not promised in 2013 that not one public worker would go home?
This is the worst bunch of people ever to govern this land……………worst!
I will be giving up my daily routine to be part of the march…………..Bajans come out and show this wutless indifferent government that we are fed up with them!
This is a politically motivated strike and has NOTHING to do with BIDC workers . That is why all the BLP yardfowls on the blog supporting the action and cannot be too concerned about whether the BIDC is on sound footing.
That is why yardfowls like Malcolm Gibbs – Taitt on the radio encouraging a government shut down because they think party first before country.
The last thing this economy needs is a National strike. Unfortunately Caswell Franklyn does not have the balls to say that as he is too busy trying to do Mia Mottley’s job.
Caswell wrote “The shackles have been broken and NUPW is feeling freedom after years of subjection to their political masters.” Caswell, you are so naïve , Can you not see that this new NUPW executive was bought and paid for to serve political masters in Roebuck Street.
Caswell has lost all independence and credibility in his analysis.
caswell talking sh.t as usual and the blp yardfowls sucking it up.
no right thinking bajans going to follow that immature bajan doodle dandy on a death march. so far the most support he got is moral