centralbank-forum
From the left, Jewel Brathwaite, journalist, Dr. Winston Moore,Head of the Department of Economics at the University of the West Indies, Cave Hill, Governor of the Central Bank DeLisle Worrell, Donna Wellington, President of the Barbados Bankers Association and Reginald Farley, Executive Director of the Institute of Chartered Accountants of Barbados

Central Bank of Barbados Governor, Dr. DeLisle Worrell and a panel of experts comprising Professor Winston Moore, Head of the Department of Economics at the University of the West Indies, Cave Hill; Donna Wellington, President of The Barbados Bankers’ Association; Reginald Farley, Executive Director of the Institute of Chartered Accountants of Barbados; and Jewel Brathwaite, a well respected business journalist discussed a wide range of topics related to the economy.

Throughout the evening, the panel took questions from the forum’s two moderators, Dean St. Hill and Patrick “Salt” Bellamy, as well as from the studio audience and from Facebook, where the event was being livestreamed. Over the 90 minutes, issues such as the fiscal deficit, the decline in the island’s foreign reserves, the printing of money and the effects of low productivity were debated with a great deal of candor. (Central Bank website)

Watch the entire forum below :

 

124 responses to “Economic Forum Hosted by the Central Bank of Barbados”

  1. Well Well & Consequences Avatar
    Well Well & Consequences

    http://www.nationnews.com/nationnews/news/93353/dying-plea

    The David Thompson, Leroy Parris, CLICO, Fruendel Stuart, DBLP governments legacy to bajans.

  2. Well Well & Consequences Avatar
    Well Well & Consequences

    https://www.barbadostoday.bb/2017/02/09/priority-1/

    Arthur himself can be so two faced and backstabbing, now they all have to be watched.

  3. Well Well & Consequences Avatar
    Well Well & Consequences

    So the reality is, if central bank prints one more Barbados dollar…by June the fireign reverse will plummet and they will be forced to devalue the dollar……..and it will be.hello Jamaica and Guyana dollar value.

    “He further cautioned that if the current slide continued unchecked, by June the island’s foreign reserves could be fully depleted, putting the Barbados dollar in greater peril.

    “In these matters, you have to talk the country through it and it isn’t so much when the election is called, but our leaders need to start talking to the people about what the country faces, get them to understand what is before us, and build a consensus as to how to deal with it,” Arthur told Barbados TODAY, while insisting that the matter was more pressing than elections.

    He also warned both the ruling Democratic Labour Party and the Opposition Barbados Labour Party that even as the constitutional deadline for elections approaches, it was not enough for them to simply assure members of the electorate that “we will not devalue the currency” as they try to “keep the spirits of the troops high”.

    In fact, he cautioned that though the required change was neither wanted nor desired, “it was about what is going to be forced upon you.”


  4. In May 2009, it was reported by the media that then PM David Thompson was proposing to ask former Prime Ministers Sir Lloyd Sandiford and Owen Arthur, as well as Sir Richard Haynes, to partake in a series of breakfast meetings to discuss the economic crisis and its effect on the Barbadian economy.

    In December 2013, Mia Mottley suggested that Owen Arthur be included in a “group of eminent persons” to deal with the economic crisis facing the island.

    “In a strongly worded six page letter dated December 30 and printed in Monday’s edition of the Barbados Nation Newspaper, Arthur insisted he did not want to be part of the group and that his position had been ignored by Mottley.” [Caribbean360, January 14, 2014]

    “I advised Miss Mottley that I could see absolutely no merit in proposing the formation of such a group at a time. This is because the Government has already decided on the course of action it wishes to pursue and as such the advice of any such group would, at this stage, not only be meaningless, but would serve only to transfer responsibility for the consequences of any policies from this Government, where it properly belongs.” [Caribbean360, January 14, 2014]

    After refusing two requests to be included in a team of economists, where his skills could be utilized in service to Barbados, Arthur is now saying: “The time has come for a national consensus, that the Prime Minister tries to generate, as to how we are going to address the expenditure adjustments that are required,” Arthur said. [Barbados Today, February 9, 2017]

    According to RPB: “politicians playing de mas.”


  5. The state of foreign exchange reserves and the possibility of devaluation has been an obsession of Barbadian elites for the last 30 years.

    How about focusing on practical strategies to increase work discipline and productivity? How about focusing on practical steps to encourage the establishment of new industries, new product lines, new ways to earn export revenues? How about a campaign to discourage wasteful spending on luxury automobiles, and foreign shopping trips and vacations?


  6. I think I recognise these views……more plagiarising.


  7. Chad, take off your blinkers. It is too late for that. Should have been done six years ago.

  8. Well Well & Consequences Avatar
    Well Well & Consequences

    Lol…..did Worrell tell the people all of that in the economic forum.

    As I said, Arthur is a two faced whatever, ah sick ah cussing them, but they all played nasty political games and yardfowl games with the electorate for 50 years, all the politicians. …since the day the british saw the economic value of th idiots for politicians allowing them to offer the islands political idependence….this is just the politician’s decades of lies and deceit to the majority coming home to full roost.

  9. Calling a spade Avatar

    chad99999 February 9, 2017 at 8:40 AM #

    [How about focusing on practical strategies to increase work discipline and productivity? How about focusing on practical steps to encourage the establishment of new industries, new product lines, new ways to earn export revenues? How about a campaign to discourage wasteful spending on luxury automobiles?]

    So true Chad . The deplorable attitude to foreign investors and FDI is shocking. Every single project meets irrational resistance. It is self defeating. You cant stave off devaluation by scaring off foreign investment. . Bizzy Williams throws temper tantrums whenever an investor gets the green light to start up a project with FDI. His negrocrat ass lickers follow suit. Viola! nothing happens and we return to square one as the investors take flight.

    Strange bedfellows join billionaire Bizzy in the rejection of foreign investors. The scourge of hate for foreign investment is killing hope for jobs and improvement in the economy. Devaluation cant be far off in such a situation. Devaluation will devastate the poor. Bizzy and his money bags mates will be untouched. As Sparrow chirped’ we like it so’.


  10. This following item is only indirectly related to this topic, but it is an issue which is going to have an impact initally on the economies of Japan, the Pacific island countries, the West coast of the US and Canada and eventually the rest of us.

    Basically tne news out of Japan’s Fukushima nuclear disaster zone in recent weeks has gone from bad to worse re. the search for the lost fuel in the blown apart reactors and the anouncement of a dramatic increase in the radiation readings inside the remains of the reactor buildings. Bear in mind that the nuclear geniuses and eggheads who persuaded the world that nuclear energy was a safe, viable option to produce energy for humanity now don’t have a clue how to clean up the putrid and messy diaper their baby has created (they say the technology needed has yet to be invented), including how to stop ground water flowing into the irradiated areas under the failed plants and then the contaminated results flowing right back out the other side to contaminate the waters off the coast of Japan. And unfortunately for the rest of the planet, the contamination does not stop there as the ocean currents carry radioactive plumes of water accross the Pacific past Hawaii to the west coast of the US and Canada.

    The clean up team were so desperate at one point to try to stop this ground water contamination that they attempted to build an “ice wall” around the enire site by pumping a refrigerant underground in pipes all around the site to freeze the ground to a level of some 40ft down and prevent any exchange of water between the plant and the outside. In US football terms that is called a “Hail Mary pass”, and unsurprisningly, it turned out to be a failure. So it’s all back to square one and it is increasingly evident the “experts” in charge of the decomissioning project at this moment in time don’t know “whether to sh1t or go blind” as the saying goes

    Aside from a few stories on Fox News in the US, the mainstream media has not been covering these recent revelations. That’s understandable, as their advertisers need them to convince us “consumers” that business as usual can and will continue ad infinitum. However, The website enenews(dot)com run by a retired nuclear engineer, Arnie Gunderson, provides up to date information from Japanes media and other sources on the unfolding disaster.

    MIght also be wise to abstain from eating any more fish out of the Pacific Ocean (including canned salmon or tuna) or any food products from Japan. It’s also worthwhile to note that farming areas on the US west coast and in the midwest have already been hit by the airborne radioactive fallout (including plutonium particles) from Fukushima – maybe another reason to grow our own foodstuffs as much as possible rather than relying on imported fruit and vegetables from the US.

    US states hit with “extremely large peaks” of Fukushima radioactive material – “Significant amount” of plutonium released for months – Radioactivity from plant “measured globally” and blanketed entire Northern Hemisphere

    enenews(DOT)com/video-us-states-hit-with-extremely-large-peaks-of-fukushima-radioactive-material-significant-amount-of-plutonium-released-for-months-radioactivity-from-plant-measured-gl

    Highest Fukushima Radioactivity since 2011 Produces ‘Unimaginable’ Consequences

    Moreover, the Japanese people are eating contaminated food. But as of 2014 contaminated rice mixed in with other rice has been deemed acceptable for export and human consumption all over the world. A March 2014 US FDA update gave the green light to eating food products from Japan, claiming non-harmful levels of radiation. Of course little do authorities advertise that since Fukushima, they’ve been conveniently upping the levels of what’s considered unhealthy to maintain globalized business as usual. For instance, before the nuclear accident, the limit danger was set at 1 mS per year but now it’s 20, the equivalent to 1000 chest X-rays a year. The nuclear worker limit is now 50 mS. Meanwhile, Japanese insects and birds are largely deformed and sterile with their generational mutations acting as canaries in the coalmine to demonstrate what humans are now facing. The bottom line is Fukushima remains an apocalyptic time bomb, a nightmare just waiting sooner than later to happen to the rest of us on the planet.

    http://empireexposed.blogspot.co.id/2017/02/highest-fukushima-radioactivity-since.html

  11. Violet C Beckles CUP Avatar
    Violet C Beckles CUP

    Jewel Brathwaite@
    at the 8:00 Min mark on this tape , He says he does not know what is responsible for the projects which have not started, They were to come from 2013.?

    Its Massive land fraud, No clear title to land and the coverup of the Owen and Mia, and now its on going under the DLP and the DBLP government,
    So all them wasting time as if they were not worried, because most dont know,
    Jewel need to google more and do his title work of his profession posted,
    On stage he seem he want someone else to bring it up
    We need no more taxes,
    We need no more dlp
    we need no ore Blp
    We need rule of law,
    We need the history restored and told
    White-People are not fools for Bajan whitepeople , or blackpeople,nor crook Ministers/Lawyers in Office holding crown title, Ponzi/ fraud/ laundering,

    People making comments without know what was dont behind their Backs

    CBC and ALL other media in Barbados is the cause to help ongoing PAIN, and We, I , Will say again More Pain to Come
    on the level never seen before ,

    We can not put out a fire by aiming the water hose on the smoke, SMoke SMOKE is what we will choke on Barbados.

    Remember PONZI in the Caribbean did not end at Sir Allen Stanford or Madoff,
    There are other limbs all in Barbados,

  12. peterlawrencethompson Avatar
    peterlawrencethompson

    @Chad99999 said “How about focusing on practical strategies to increase work discipline and productivity?”
    Productivity will address the long term macroeconomic problems but will do nothing to solve short term currency stability. Bajans simply need to reduce their consumption of foreign goods and services.

  13. peterlawrencethompson Avatar
    peterlawrencethompson

    @Calling a spade
    Foreign Direct Investment is not a sustainable solution to Barbados currency instability. In order to maintain the exchange rate Bajans either have to produce more that can be sold on the global market, reduce their consumption of foreign goods and services, or both. Increased production is necessary, but cannot be done quickly enough to solve our short term problems. Therefore we must cut consumption. FDI is just a bandaid which obscures the underlying structural nature of the problem.


  14. Last week OSA was calling the PM a liar and for Worrell to be fired, he aslo wanted Jepter fired. This week he is calling for national consultation. HE HAS FINALLY PLAYED HIS HAND AND NOT IN A MOMENT TOO SOON AS LYNETTE EASTMOND AND MARIA AGARD LAUNCH THEIR PERPETUAL LOSERS PARTY (PLP) TONIGHT.

  15. Well Well & Consequences Avatar
    Well Well & Consequences

    Peter…..for years they have been told cut out the imports….they are not necessities, they can source food around the Caribbean. ..ground provision, that is a necessity to maintaining good health in the population. ….along with what they grow….10 years or more they have been told, they refuse to listen.


  16. The problems of the Barbados economy are structural. We talk talk talk, government after government, yet we import more and product less. Our debt to GDP is now over 150%? At the end of the video the close by the Governor is instructive. We can politicize this as usual but the proof of the pudding is in the numbers -10 weeks of imports and falling.


  17. On a question of the sustainability of grow put forth by the moderator on the video, Jewel Brathwaite enounced his reply by saying: ” And as I has said earlier.” Talking about the state of education in Barbados!


  18. @ David who wrote “-10 weeks of imports and falling.”

    Time will soon come to restrict imports of everything except medicine and food.


  19. Agree Arthur is about to show his hand. The timing is not by accident.


  20. Well Well

    Do you really believe that cutting imports and producing locally would ameliorate the problem regarding the balance of trade deficit, if it is cheaper to import rather than to produce locally?


  21. David, have you given any thought at all as to the cost and consequences of producing locally versus importing regionally, as well as internationally? And the quality of what is produced locally as well as regionally? I remember helping my mother pick the Guyana rice back in the 1970s, and the experience still haunts me today because it took hours to picked out the loads of bad grains in that rice.

  22. Well Well & Consequences Avatar
    Well Well & Consequences

    Dompey….so what do you suggest instead.


  23. David

    Think about it seriously though: who really want to pay an arm and a leg for a pineapple the size of a mango produced locally, versus one produced internationally the size of a watermelon? Gone are the days to trade protectionism because we now confronted with a global economy in its modern context!

  24. Bernard Codrington. Avatar
    Bernard Codrington.

    @ Chad @ 8:45 AM

    Very good. Congratulations! We all know these things. The problem is the implementation deficit. Not the Foreign Reserve deficit. Not the Fiscal Deficit. It is the lack of productivity. Those the Tax Payers and Consumers pay to deliver are not delivering.

    The much debated deficits are the symptoms not causes of the underlying failure to restructure the economy. It is never too late to do so. One has to start some time. Why not now.
    Keep thinking straight. You should read the CFA and the FRM textbooks even if you do not have contact with the Tutors or attempt the exams.. You are old enough to do your own thinking. The objective at this stage of your life is to learn something useful.


  25. Well Well

    The solution to the problem would be to do as Adam Smith has stated long ago: “If you can import a commodity at a cheaper rate rather than to produce it as an exorbitant rate, then do so and vice versa.


  26. OSA wants to win the big prize from in the middle. This is game of piggy-in-the-middle and he is hoping to make one big perfectly timed leap and grab the ultimate prize. Maria and Lynette are not quite ready so he needs to buy them more time, hence the call for putting the elections back to after addressing the economy.


  27. By all reports the BLP is 100% ready if and when the elections are called and are spending their time (unlike OSA in 2011-2012) sharpening their political tools and picking their battles very carefully.
    Some close to the BLP are already calling it Operation Avalanche as Owen’s initials.


  28. @Bernard

    Why are you allowing your former work place to print 50 million a month to support government borrowing?


  29. Harold

    After witnessing the general election in US a few weeks ago, it would be ill-advisable on the part of the BLP prognosticators to arrive at any conclusion before the final votes are tallied.

  30. Well Well & Consequences Avatar
    Well Well & Consequences

    Dompey…ya quoting a dead man who had no clue as to what woukd transpire in these times.

    And way pray tell would the Barbados government import all this cheaper and mostly unheathy food from.


  31. @ peterlawrencethompson

    Excellent contribution!!! I’m sure you realized that “Calling a spade” was spouting the usual “rhetorical political diatribe.”

    As I have mentioned in previous contributions, government’s current fiscal and monetary policies are not consistent with a fixed exchange rate system. On February 12, 2014, The IMF reminded government that:

    “Monetary policy has not been consistent with the fixed exchange rate framework. Monetization of the debt has made uncertainty and confusion in defining the objective of monetary policy.”

    “The authorities face the challenging task of raising foreign reserves and reducing the fiscal deficit in an environment of low growth, high debt and a fixed exchange rate.”

    Running persistent fiscal deficits will have a direct and indirect contribution to an increase in consumption, thereby resulting in higher imports and outflows of US$.
    If Barbados’ current debt servicing capacity requires approximately 25% or 26% of total fiscal revenue, this creates some difficulty, fiscally, for government to invest in strategies/initiatives to spur economic growth.

    One of government’s policies to REDUCE the DEFICIT was to retrench over 5,000 employees from an already INEFFICIENT public sector. With a reduced workforce and no significant improvements in TECHNOLOGY or EFFICIENCY, the public sector remains “inefficiently unproductive and uncompetitive.” This evidenced by the amount of time it takes to undertake simple tasks such as renewing a driver’s license, applying for a driver’s permit or police certificate of character.

    I also believe government needs to implement new, innovative policies to improve PRODUCTIVITY and COMPETITIVENESS, which are important factors in generating net foreign exchange inflows and influencing economic growth.

  32. NorthernObserver Avatar

    Hmmmm….GoCB’s swan song?
    He talked about elimination, not reduction of the current account deficit, he slammed bureaucracy for the lack of construction jobs, (he formerly referred to administrative delays) and after the professor had grouped government spending into 3 categories, the Gov chose to highlight twice, public wages as the main culprit. He avoided any reference, as he has done in the past, to the measured success of government fiscal policy initiatives.
    When Ms.Wellington suggested the BRA capture net possibly had in too many holes. the Gov didn’t bite. He ignored the revenue side and focused on costs/expenditures, suggesting his opinion is the revenue generating tools are maxxed out.


  33. Govt expenditure in health and education
    Terrible in need of a drastic fiscal overhaul


  34. Any feedback on the contribution by Donna Wellington who represented the banks? It is clear the banks have no problem moving to very low interest rates in response to ‘supply and demand of cash’ as she referred to it. On the flipside the Governor -having ignored the question from Dean St.Hill that the savings bonds represent borrowing by government -was happy to market the bonds on prime time viewing. A reminder this is a ‘collusion’ effort by all concerned.

    Somebody should have asked Donna Wellington to explain what the banks did with the windfall profits the banks benefitted when the central bank removed the the minimum savings rate.


  35. Do we want this advice as a region ??

    Money and action.
    Africa can become a global economic powerhouse. This is how
    To achieve the UN’s Sustainable Development Goals, Africa must industrialize, writes Li Yong, Director General of the United Nations Industrial Development…
    weforum.org
    http://wef.ch/2lu9Hqq

  36. NorthernObserver Avatar
    NorthernObserver

    @David
    “A reminder this is a ‘collusion’ effort by all concerned.”
    I disagree. While the GoCB did not make any distinction, in the past, it has been made that Savings Bonds are issued by the Central Bank, they are not called Government Savings Bonds as can be found elsewhere. Whereas Treasury Notes and Debentures are called Government Treasury Notes and Government Debentures. He did not push, nor even mention the latter, which are not bought at a discount like Savings Bonds.
    So while the funds from SB end up in the CBB, and the CBB loans money to the GoB, funds from a SB sale do not automatically end up in GoB account. Hence why he was clear that HE (the GoCB) backed and was responsible for SB.


  37. The point about collusion is that by the CBB making savings interest rate unattractive read elimination of the savings rate, it has acted as a push factor to the SB.

    This was orchestrated in the view of many.


  38. Where would all the money come from to implement these glorious strategies
    First the govt needs to tackle the burdensome expenditure that is cause for recurring debt and low revenue savings
    It seems that in this country people with high expectations cannot see the forest for the trees.


  39. David

    Have you been able to hear anything of the press conference of Lynettes new party? It was posted on fb but could not hear a thing.


  40. The following link exposes central government debt 2005 to 2013.

    http://data.worldbank.org/indicator/GC.DOD.TOTL.GD.ZS


  41. @Vincent

    No.

  42. NorthernObserver Avatar
    NorthernObserver

    I read the thread you had on here weeks ago about that, but I do not buy that.
    Banks operate on spread. If they cannot find loan takers at the currently low rates, what are they to do? Push UP the loan rates? That is the only way they can afford to pay more at the savings end?
    The question to be asked, is since removing the “rate control” why is the SB Rate at 5.5%? Shouldn’t SB’s be a golden investment opportunity at 3.5%?
    The answer you want to hear is 5.5% is a lot cheaper than the GoB can borrow money anywhere else?


  43. The more pertinent question is why have the banks still been increasing fees and at the same time making greater profits.


  44. ac February 9, 2017 at 2:01 PM #

    “Where would all the money come from to implement these glorious strategies. First the govt needs to tackle the burdensome expenditure that is cause for recurring debt and low revenue savings…”

    I shall provide you with four (4) examples:

    1) REDUCE THE SIZE OF THE CABINET.
    This administration can boast of maintaining the LARGEST Cabinet in the HISTORY of Barbados, perhaps because the DLP felt it necessary to reward their political colleagues who lost their seats or failed to win a seat.

    Esther Byer-Suckoo is an abysmal failure as Minister of Labour and as the minister responsible for the NIS.
    What significant contributions Irene Sandiford-Garner, Harry Husbands, “Jester” Ince and Patrick Todd have made so far to the development of Barbados other than being burdens on the Treasury?

    2) AMALGAMATE the OPERATIONS of the Urban and Rural Development Commissions and ALLOCATE SERVICES to the National Assistance Board (NAB).

    Prior to the establishment of the UDC and RDC, the NAB, through its Housing Welfare Program, offered the services now being rendered by both these statutory corporations. There isn’t any evidence to suggest delivery of services is more efficient than they were under the NAB.

    3) CLOSE THE NONSENSE CALLED CONSTITUENCY COUNCILS. With the Welfare Department, UDC, RDC, NAB, Child Care Board, Community Development, MTW, etc, why is there a need to finance Constituency Councils to act as intermediaries between constituents and those agencies, especially when constituents can apply directly to the agencies for services required.

    4) PRIVATIZE the Transport Board or allow market forces to determine bus fares. Government is continually issuing PSV permits to private concessionaires, not only saturating the market, but affecting the viability and profitability of TB. As a result, government is forced to increase transfers/subsidies to TB.

  45. NorthernObserver Avatar
    NorthernObserver

    You know they are not in business to lose money? If they aren’t making what they forecast on loans, then they shove up the user fees until people refuse to pay them? They will take your money, anyway they can get it.


  46. Government here in my state has privatized/ outsourcing the Transit System to privately owned bus companies from different areas of the state -while maintain a small Fleet of bus drivers who are paid an hourly wage beyond those private bus drivers, however, market value does not allow for the dictates of an increase in bus -fare, the state government determine the increase as demands dictates. But the problem with privatizing the bus system present some challenges because the privately owned bus companies pay their workers poor hourly wages, in comparison to the small number of bus drivers who still work for the city government, and this causes a high turnover which results in inadequate service to the public.


  47. Ad someone who is living the realities of a privatized bus system, which sounds good in theory, but the hard truth is, are you sure that privatization is in the best interest of the public due to the potential possibility of inadequate service due to little or no governmental oversight?

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