Private Sector ‘Signals’ No Recovery Until After the General Election

There is a BU commenter whose oft-repeated refrain is that ‘there will be no recovery under Fumble’s fools’. The commenter we have come to know as someone who postulates the positions of the private sector. It therefore comes as no surprise that the commenter’s observation aligns with that of the head of the private sector agency Charles Herbert who expressed the view that with a general election on the horizon it is unlikely the private sector will unleash the quantum of investment required to arrest the 9-year free fall of the the economy to have a positive economic outcome [BU’s paraphrasing of Herbert’s position]. It is not unusual for governments during the last days in office to observe a minimum regard for political ethics by refraining from implementing significant decisions that would significantly bind the incoming government.

Interesting to read the recent review of the economic performance by the former governor of the Central Bank Delisle Worrell since being booted from office. He appears to be more lucid and truthful in his delivery now that the weight of the office of governor and being a creature of the minister of finance has been jettisoned.

In recent days we have also heard from Dean Straker the head of the Small Business Association (SBA) and Eddy Abed the head of the Barbados Chamber of Commerce (BCCI), both expressed disappointment and disagreement with government policies. It is worth mentioning the view of the head of the Barbados Hotel Tourism Association (BHTA) Roseanne Myers who was scathing in her criticism about the urgent need to improve the tourism product. More immediate, the need to fix the sewage leaking on the South Coast.

It does not require above average intelligence to conclude that if key actors in the private sector are uncomfortable with government’s policies made acute by a general election on the horizon, there is a valid case to be made of a lack of confidence in the government. Ministers of government like Denis Kellman and Donville Inniss to name two engaging in verbal sparring with leaders of the private sector does not help.

Battle lines have been drawn and there will be no significant investment by the private sector until after the next general election. Will the economy survive a few months if Stuart decides to let the election period run its constitutional course? With 500 million dollars reported in foreign reserves as at September 2017 and a 100 million foreign debt commitment in the pipeline plus the outflow of the last quarter of 2017- what is the state of the foreign reserves  at at January 2018?

Here is what the apolitical among us know.

There is a crisis of confidence.

There will be ‘there will be no recovery under Fumble’s fools’ with weeks to go before the next general election.

 

46 comments

  • NorthernObserver

    Methinks it is ‘there will be no recovery under Fumble’s fools’, but, all the same.
    Yes there is a crisis of confidence, and it has been so for several years. Investment flow is not like water or electricity flow where it is turned on/off by a faucet or switch. While I do see some investment in the tourism plant, it is sadly lacking elsewhere.
    If Barbados is a world leader in one area, it maybe, political arrogance. And while as noted, the former GoCB has ceased spewing the drivel associated with his “tours with the MoF”, neither of the two have the confidence of anybody with ‘money in their pocket’.
    They (current administration) can complain all they like, but when you cannot hit your budgeted numbers (and I don’t mean ONLY on the expense side) once in 8 years, who is going to believe you? No belief = no confidence.

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  • Thanks for the correction to the refrain, will update.

    What about lack of confidence because of oozing sewage on the highway? No confidence!

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  • Freundel Stuart is a deluded man if he thinks he can do in a few months what he has consistently failed to do the past seven years and that is by his leadership,galvanize investors’ interest in such a manner that it coincides with that of his administration.An impossible task now and always was with him at the helm.Only an unbelievably stupid man would think thusly.

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  • 10 years of steeling, dem wouldn’t have time to do anything else, thats why this country the way it is, billions missing under dem, no recovery under fumble fools, because he is the biggest of dem all…he waiting for moodys to hit e now. jiggs is ah bare c@nt. i hope the electorate teach wanna ah lesson, don’t let the cornbeef & biscuits, tv, fridge, etc make u all sell ur birth right…send ah strong message to the sewer rats

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  • Where will private sector unleash its quantum of investment after elections?

    Tourism

    Agriculture

    Manufacturing

    Services

    ?????????????????

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  • NorthernObserver

    “Where will private sector unleash its quantum of investment after elections?”

    Guyana, Canada, Ecuador, Jamaica, Costa Rica, Honduras.
    Like the fella who slept home every night, then after 25 years he “eased out”, and coming back home was only for show.
    Bajans can find opportunity everywhere, but at home.

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  • There will be no recover, ever!

    At lease not under neoliberal capitalism

    This country has been under austerity for 10 full years

    And this pernicious DLP government, like the BLP before it, has given every subsidy to all forces within the private sector. All these transfers were unhelpful in delivering any recovery at all.

    In fact, the more subsidies the government gives away the worse things have been getting.

    And instead of recovery. as measured by your outdated metrics, we have decline after decline.

    How is it at all possible to approach ‘recovery’ without dealing with causative reasons for chronic decline after decline. Declines in credit ratings, declines in GDP, declines in employment, decline in capital formation, declines in all the major sectors, declines and more declines.

    It is a nullity to merely blame a hapless government while not going beyond the superficial to the underlying reasons for this monumental failure.

    Countries like Japan have been under austerity economic policies for 30 years.

    The USA has been under recessionary policies for 10 years.

    In both cases, it is only financialization: printing of money; QE1 &QE2; near zero interest rates for banks; which have given a semblance of increasing economic activity but have created a number of bubbles in the economy as a critical and life threatening side effect.

    It certainly does not help having an idiot as president, The sole redeeming feature is that he has nothing to do with economy, central banking etc.

    We see these markets as bubbles soon to bust – bitcoin; leading stock exchanges and ETF; student debt; car loans; emerging market bonds, and a few others.

    Our real question, which we ask again is when will the people wake up to see that nothing the policymakers and politicians are saying about ‘recovery’ will ever come true.

    Jesus Christ, we worse than foolish Christians, believing a fictional economic gospel. How many more times must the government of Barbados fail to deliver before we wake up?

    Why must our default decision position be some nebulous election? Can we only perceive reality based on this carnival? It is not pellucid that the BLP will be as useless as the asshole currently sitting in Ilaro Court?

    We are well aware that BU has some disciples of this Charles Herbert. They say that his company has performed well. But one ‘swallow’ makes not a summer. And once a racist always a racist!

    His likes were conveniently involved in politics in the past. On that occasion they galvanized their forces to bring down the Sandiford administration. People like Herbert require a hard slap in his ass!

    But a weak, compliant, FJS would have no such appetite.

    People like Herbert seem to believe that they have, as super citizens, some kingmaker role 50 years after independence. We are warning Bushie and David especially that the likes of Herbert will be no savior and will disappear once his BLP comes to office, like happened last time.

    We know, yes we have preached to unconverted rassssssouls!

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  • @ Pacha
    There will be no recovery, EVER!
    But this is because no one EVER recovered from OLD AGE…… they die.
    Recovery shiite!!
    Out best hope is to be put on morphine until the end comes…

    Our earth is now a senior citizen of the universe. The other stars are already planning the damn funeral….if we are to believe Miller. Death is the most guaranteed aspect of life as we know it.

    To besides, albino-centric people like Money B and Trump treated the earth like parasites – exploiting its resources as if they were inexhaustible…. in their attempts to ‘gain the whole world’. No wonder our world is having such a chaotic and painful old age…
    Bushie could (but won’t) name some individual brass bowls bout here who are in the identical position due to the choices which they made during their youth….and mid ages.

    Even the previous Pope realised that the only place he will end up is in a 6 ft hole somewhere – and he dun with the “popeing shiite”…..and probably living peacefully with some nun….
    LOL
    ha ha ha

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  • I repeat, the PR roadshow is over. Bad policies, bad programmes–alice in wonderland platform. I’ve been saying it since 2008. Now, are we better off than we were in 2008?

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  • Does this mean that the “Private Sector” will loosen its purse strings after the Election provided there is a BLP victory?

    Ah mean Mia won’t even have the vaunted Private/public sector partnership that Owen had when he was PM, Shipping and Trading has gone the way of the dodo and if the local head of T&T Enterprises phone his Chairman in POS and say something along the lines like “De Boss lady down here wants us to hold strain”. The Exec may respond with “Leh dem scrunt, de meat, de rice and de pot is ours, no more Cephas saying all is mine, all belong to us”.

    How long before Fumble’s Fools become Mia’s minions?

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  • @ Sargeant
    Exactly.

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  • The Private sector is waiting for the new government ( BLP ) to redistribute government contracts.

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  • @Hants

    Didn’t Mia put Maloney on notice when she addressed the BCCI luncheon that for one entity to have received 1 billion in government contracts is unconscionable?

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  • @ David
    …and where will Mia get $1B from to distribute otherwise?
    By the time she is finished settling CLICO, Cahill, Pier head, Andrews, Hyatt and other legal settlements the only beneficiaries will be the BLP lawyers who will be getting the wuk.

    There is no way out for Bajans.

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  • Talking Loud Saying Nothing

    I’ve just read that some of those Caribbean nations whom were hit by the most recent hurricanes have reduced the cost of their citizenship-by-investment programmes. Nothing, absolutely nothing, surprises me with this vision-less region.

    “The top three nationalities that contributed to this spike in demand are Yemenis with 31 per cent, followed by Syrians by 15 per cent, and Lebanese by 8 per cent, according to Arab News, the Middle East’s leading English Language daily.”

    http://www.nationnews.com/nationnews/news/117575/hurricane-hit-caribbean-countries-slash-cost-citizenship-investment-report

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  • A country relying 80 % on tourism and 20 % on a declining offshore sector to generate forex will never get rich. Do not mix up the mansions for the happy few and the barracks of Barbadian Tom, Dick and Harry.

    Time for the political class to tell the clueless masses that all what they can expect is stabilization of the dire situation, but no prosperity.

    The Barbadian middle class is a myth built on high debts to copy the lifestyle of the North.

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  • Speaking of Passports for sale, those ME citizens may look closer to home and they are cheaper too.

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  • @ David who wrote “Mia put Maloney on notice”

    Maloney will be busy in hurricane ravaged islands.

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  • @ David,

    ” A prominent Barbadian has been named in the leaked papers relating to the investigation of offshore companies.”

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  • Barbados needs to forget the offshore business bs and find a new viable industry to replace it.

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  • @Hant

    You may recall that BU questioned Trevor Carmicael‘s role as Director in a company called BNB Capital Corporation along with Jepter Ince. The time has come for Barbadians to demand information to satisfy transparency, it does not mean there is wrong doing but the right to know in the public interest must be paramount.

    Chris Sinckler and David Estwick Saga Continues – Money is Sweeter than Sugar

    by David on November 14, 2014 in Barbados News, Politics

    BU understands the Minister of Finance & Economic Affairs Chris Sinckler will play hardball with the sugar industry deal unless Minister of Agriculture David Estwick appoints BNB Capital Corporation to provide the financing for the new sugar factory. It is being discussed in certain circles that the minister of finance arranged for BNB Capital Corporation […]

    234 CommentsContinue Reading →

    Like

  • Well Well & Cut N' Paste At Your Service

    These companies do not file the required infomation at corporate affairs and what they do file is often bogus….that is what their lawyers/directors do…it was just a matter of time before real journalists from international countries investigated.

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  • David

    We have told you previously that no amount of integrity legislation will achieve your aims

    There is no time in the past where such actions have been taken seriously in Barbados and your just aims were achieved

    You have laws against stealing and they can’t stop the criminals in this government or the ones on the way in

    What Bajans need is a clear right to recall all public officials at short or little notice. A constitutional right not encumbered by bureaucratic nullifications.

    Yuh know how the two-step political process works. Nuff pretty laws but also countervailing actions/inactions to maintain political slavery.

    And what about our guillotine. Don’t we need a law for that sacred instrument as well!

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  • Everybody seems to forget that a guillotine is incapable of harming an innocent person

    We invite FJS and MAM to prove this.

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  • @Pacha

    In medieval times when the use of guillotine was the preferred option didn’t innocents die or you would write them off as collateral damage.

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  • @ David
    Pacha is saying that..
    If they died …..then they were not innocent.

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  • Carmichael tail expose!

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  • Bushie

    Thanks

    Like

  • millertheanunnaki

    @ Gabriel January 7, 2018 at 9:25 AM

    We shall se if he has the ‘moral’ indecency as to continue sitting in that so-called higher chamber.

    Someone has become a multimillionaire out of facilitating tax ‘avoiders’ and those of the Greenverbs order of launderers.

    We know the local BRA will not audit him. All we can hope for is that the Revenue Canada and the US Treasury pay him a timely visit.

    But he is a man with both feet well planted on both sides of the political divide.
    And we know that money makes the political mare fly in both directions.

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  • You agree with the statement Bushie?

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  • Do you know of any ‘innocent’ persons David?

    For lack of wisdom, our society has adopted the mantra of ‘Innocent until proven guilty’.
    Then we created an animal (a shiite hound) called a ‘lawyer’ who is able to ensure that even lepers who steal openly and have $3.3M cheques paid to them via their personal shiite hound… CANNOT be proven guilty ‘for technical reasons’.

    What kind of society did we think would result – except for one where the very shiite flows free along the main streets?
    What became of the Wilkinson car scam case?

    Pacha’s proposal may be a case of too far east is west, but at least it gets us moving in the right direction.

    As it is right now, we could SAFELY try the guillotine test on 60% of Bajan brass bowls …without ANY fear of an injustice being done.

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  • OK Boss…
    Wunna keep on doing the same things …and looking for different results

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  • Archmaester Bushie

    Right again.

    We know that you know that we are both vegans. And vegans almost always have a deep respect for live, all live.

    You also know that neither one of us has any innate or abiding commitment to violence, per se

    But it is David who should be asked to explain how the hell are we ever going to bring these people to heel, except with an ‘executable’ and clear threat of extreme legal violence.

    All of David’s pleadings and begging for better governance from the wicked just opens us up to more cynical exploitation.

    The politicians are laughing at us!

    The economy is a clear example

    We have politicians and other public officials who have not a clue what’s going on but are satisfied to try to make us believe they understand these circumstances when it is clear they don’t.

    Should there not be the most severe public sanction for 10 years of national misguidance, treason?

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  • @Pacha

    Nothing wrong with comic relief on a Sunday, a day of rest!

    One has to ensure all perspectives are steeped in pragmatism.

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  • David

    We have never been necessarily guided that ‘pragmatism’ is the sole way of being,

    Like

  • Well Well & Cut N' Paste At Your Service

    “Someone has become a multimillionaire out of facilitating tax ‘avoiders’ and those of the Greenverbs order of launderers.

    We know the local BRA will not audit him. All we can hope for is that the Revenue Canada and the US Treasury pay him a timely visit.”

    Guaranteed…but someone will get him.

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  • Barbados 2023;

    A new billionaire now controls all contracts
    The private sector remains in retail mode
    Hundreds /thousands of civil servants have been sent home
    IMF calling all the shots

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  • NorthernObserver

    @WS
    2023? ya mean 2019 repeating itself all ovah again?

    Like

  • Another island wide power outage takes its toll on the private AND public sectors.

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  • Oh Emera, a monkey again?

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  • @William Skinner stuuuuupse. #depositloser 🤣🤣

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  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    I don’t understand why there was ever any doubt when I started typing this 8 years ago.

    Barbados has no natural resources for a gov’t to plunder, we have only ever existed on commerce.

    Inarguable 375-year-old fact.

    ‘Plunder’ of private sector profits in the form of taxes is what pays for our particular form of socialism.

    Anything that hinders commerce therefore threatens our way of life.

    Poor gov’t economic policies, lack of business facilitation, stupid taxation designed to shrink the economy, no civil service communication, poor infrastructure, corruption, contract favouritism, overt bribery solicitation, constipated court system, inefficient bureaucracy, business frustration etc. are all hallmarks of this DLP administration.

    We could have weathered some of these difficulties as we have always done. What this gov’t created after Thompson’s death was the ‘perfect storm’ of anti-commerce.

    Never has Barbados been as cash-rich as it is now. Gov’t printed money, BS&T share sales, Banks Holdings share sales, returned corporate deposits etc. Why then are we not experiencing hyper-inflation? Why isn’t all that cash being spent on consumer goods, real estate etc. and driving prices up?

    Come on people, this is simple rum shop economics, no UWI fantasy degree necessary to understand.

    There was never any chance of economic recovery under Fumble’s Fools. No one holding purse strings, from the highest corporate chairman to the lowest BS&T ex-shareholder, trusts these fools.

    When the gov’t changes and the cash dam breaks there will be serious pressure on ForEx reserves. Mia better be ready with some serious ForEx earning incentives.

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  • @FrustratedBusinessman

    To be fair you should have included that the world has changed the way it do s business read removal of protections/preferential treatment. As a country-this applies to others as well- we have not adjusted well.

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  • @Enuff

    Why make fun of Skinner? At least he had the cojones to put his money where his mouth is, many people talk the talk but are unable to find their footing when it comes to taking action in support of their beliefs.

    Like

  • @Sargeant

    Many who post on here using monikers looking for their deposits as well😁.

    Like

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