Dr. De Lisle Worrell continues to be a controversial figure in Barbados. He suffered the embarrassment of being sacked by former Minister of Finance Chris Sinckler. The blogmaster will remember him for the fact he presided as Governor of the Central Bank during a period popularly labelled the Lost Decade. He continues to be controversial in his current role sitting on the other side of the negotiating table by epresenting some of the external creditors.
The following text is posted to caribbeansignal.com and makes for interesting reading given his (Worrell) role as lead negotiator for external creditors and the current state of the Barbados economy.
Discuss for 10 marks.
-David, Blogmaster
Reproduced with permission, the full text of Dr. Delisle Worrell – former Governor of the Central Bank of Barbados – June 2019 newsletter:
The Time Has Come to Permanently Retire All Our Caribbean Currencies Caribbean currencies served a crucial purpose when they were first introduced, but they have now become a nuisance in today’s digitised world.
The world of commerce and finance today bears no resemblance to the world for which Caribbean currencies were devised. Up until the 1960s in most Caribbean countries, all retail transactions and many wholesale transactions were settled with notes and coins. The means of payment were always scarce in those days, because our countries are so distant from the European capitals that issued the world’s major currencies.
In the first half of the 20th century it became commonplace in countries of the British Empire to issue local currency notes and coins, with values fixed to Sterling (for the most part; the Bahamas and Bermuda were exceptions). These currencies were issued by special Government departments, termed Currency Boards. The Currency Board held an amount of Sterling with the Bank of England or with the British Crown Agents, and issued an equivalent amount of local currency. In this way the amount of the local currency issue could be more easily tailored to local needs.
This system worked well, so long as currencies were anchored on a single universally used reference, the US dollar price of an ounce of gold. However, the whole system of currency values fell apart when the US effectively moved off the Gold Standard at the time of the Smithsonian Agreement in December 1971.
Nowadays, currency notes and coin, mostly of uncertain value in terms of purchasing power of the everyday goods and services we need to source abroad, are little used domestically. Mostly we use electronic transfers, cheques and credit cards. Since these are all computer records, it is immaterial how they are denominated, so long as both ends of every transaction match. There is no reason to link the denomination of the electronic transactions to the value of notes and coins.
Replacing the Barbados dollar with the US dollar for all transactions, domestic and foreign, enhances the range of choice open to the country and its residents, in all international commerce. International transactions are conducted in US dollars or in currencies that are convertible to US dollars. In contrast, with Barbados dollars you cannot buy or sell anything outside of Barbados, not even in nearby St Lucia, much less in the rest of the world. The GDP of Barbados in 2018 was about US$5 billion, but the country had access to less than US$3 billion of international goods and services, because that was the total availability of US dollars and other foreign exchange from exports, tourism and other services, and foreign financial inflows. Once the economy is fully converted to US dollars and the local currency fully retired, the entire US$5 billion may be used to obtain the best value for money, in transactions anywhere in the world.
This is an executive summary of my Working Paper of the same title, issued at DeLisleWorrell.com.
@ David,
SOL has invested in Guyana after making a fortune in Barbados.
@Hants
He does business in the area and is prepared to take on the risk.
@ William Skinner June 9, 2019 3:34 PM
Guyana might have a bright economic future alright, oil or no oil.
The only thing is that it would not be for black people; either native or those migrating from ‘failing’ economies like Barbados.
Have black Trinidadians benefited significantly from the Trinidad oil wealth when ‘Money was No problem’?
Who owns and control the commanding heights of the T&T economy including its offshore subsidiary Trinbados?
What about the estimated 20 billion barrels of oil reserves off Cuba?
@ William
As you said can’t people see that if they pursue this road of closing themselves off from their neighbours it may come back to bite them long term, let me explain what I mean.
What is to stop Guyana as it’s crude money starts coming in from saying to caricom ” fellows I got the crude and willing to go to next level now and set up a refinery here to supply all of caricom and who ever want.”
Are you telling me this group of inward thinking jealous islands would turn their back on a chance to be free from international crude supply and it’s problems?
Then again maybe you right and they would say no Guyana getting too big for their boots who knows.
@ William,
Are you saying I have a target on my back? That I am not loyal enough. I am not going to buy the growth and innovation bond, give the government’s recent default.
By the way, the prime hinted that she may make Rihanna a national hero. May I suggest no. We must not make any other living person a National Hero, not even Rihanna..
Pacha earlier today:
“And it matters not whether that fiat currency is a single Caribbean dollar, the US dollar or the Euro. The only answer has to be real money. Money backed by real value – gold, silver, certain food items etc.”
@ Pacha
The question I pose to you is whether Guyana is going to be in a position to have a better economy for the reasons you posited above. You state that Guyana will only get 3% out of the deals. What does 3% equate to. You know that apart from oil Guyana has gold silver and other goods and minerals to trade.
Dear Pacha it is not that regionalists are stuck in a past era; it really is that we are marching toward a new one. Get on board Pacha !!
@ Hal
You know anytime you don’t pull the party line and drink the Koolaid without even asking the flavour, you get a target on your back. Don’t worry you far away no one can’t hit you with a bajan big rock from here!
The region is far apart on a common financial arrangement. It will not happen in our lifetime if one can be willing to bet. What we will see is some form of functional cooperation, IF we are lucky. The OECS has formed a working union. They are currently in the process of enacting harmonizing legislation. A child shall lead them.
@ John A June 9, 2019 3:45 PM
“Think about it if you were the finance minister of Dubai and you could convert your entire grid to solar, thus exporting the crude you are burning at home for say even $50 USD a barrel wouldn’t you do that?”
+++++++++++++++++++++++++++++++++++++++++++++++++++
Why aren’t you proffering that ‘enlightened advice to the Bajan minister(s) of Finance and Energy?
It would mean less finished petroleum products to import resulting in Barbados not having to run to the IMF for balance of payments support to import the same oil products or even look to the UAE to become Barbados ‘friendly’ loan-shark.
Bajan politicians have been talking about the huge oil reserves off Barbados for the past 30 years. When is that black gold going to be struck and make the Bajan big payday?
It would be nice to have a war of words between the T&T callaloo and flying fish and the Bajan macaroni pie and chicken land over the imaginary river of oil that lies between them.
Sir William Skinner
3% equates to what ever the oil company says. For the country is reliant on them to say what production is, will be. Of course, there could be mechanisms to make an independent judgement.
But you’ve asked the wrong question. Why would the oil major get 97%, is more obvious?
And then, if they are controlling the bulk of Guyanese oil that control serves to strengthen the fiat currency of the United States of America. The US dollar has been based not on ownership byt control and they rely on their oil major to ensure such control. Of course, oil is priced in US dollars, mostly.
Don’t you know that that is the game being played since 1971?
And if the value of Guyanese oil serves to support the US dollar it then CANNOT act also in supporting a Guyanese currency.
More generally, the mere presence of gold and other strategic resources under Guyanese lands cannot of and by itself translate to an increase in the relative value of the Guyanese currency viz a viz other currencies.
Guyana will have to put a framework in place to show it has redeemable amounts of bullion relative to the number of dollars in circulation. More importantly, there would be geo-political issues as well. For the USA would then be likely to invade any country having real money as a competitor to its fiat dollar.
Can’t get on board. Your regional boat is leaky, and has been for far too long. Let’s patch the many holes first, lest we all drown Captain Skinner!
Sir William, Trinidad has had oil for over 100 years, has it served that country well? We now know it’s running out!
@ Miller
Everything you have said about wealth in Trinidad is practically true throughout the Caribbean . The post independence leadership fell short on true economic enfranchisement for the blacks. Guyana therefore has and will encounter this truth but it will not remain so forever.
@ David
First you must accept that leadership is the problem. Strides are being made but the political class is trapped in colonial thinking. You will note that only today right here in Barbados a new political party was launched with not one word about how it will address the economy. Vote catching is the order of the day..
@ Hal
You have been warned. They know where you are !!
@ John
Slavery left us the divide and rule concept. Note today that we were told on BU to invest in the brand new political party to split votes among the opposition party in order to ensure that the governing party wins. Nothing about policy only votes.
Even on BU silly attempts are made to divide “overseas” Bajans and those living in Bim.
Duopoly Rules
The struggle continues.
@ Pacha
“Can’t get on board. Your regional boat is leaky, and has been for far too long. Let’s patch the many holes first, lest we all drown Captain Skinner!”
I guess you can fix the leaks by telepathy !!!
“Sir William, Trinidad has had oil for over 100 years, has it served that country well? We now know it’s running out!”
You know that Trinidad was a virtual ATM for the region during its boom years. The wealth of Trinidad was badly managed.
Historically my people went from the abolition of slavery in 1835 to political independence in the 1960s. It saddens me that you are only seeing leaks. Everyday ordinary citizens are pressing ahead. I can see you now relaxing on the deck with your favorite drink after the work is done.
Let’s face it, dear BU community!
How many times have you been in Guyana in recent years to have a say here?
The oil quality in Guyana is definitely better than in Venezuela. The quantitative potential is very high.
If all goes well, enough will be left for Barbados. However, the Guyanese will then determine what will happen in Barbados. The Guyanese are no longer as stupid as they used to be to elect an economic illiterate and caveman like Burnham as president. When they hear the name Burnham, even the blacks spit blood to the ground in front of you.
Once the Guyanese have bought up all the hotels in Barbados, the question of casinos and brothels is no longer necessary. So I advise all islanders to practice with the Vaseline.
Tron the Globalist
Something on Guyana’s oil……..https://www.kaieteurnewsonline.com/2019/06/09/no-party-that-refuses-to-correct-illegalities-of-exxon-contract-deserves-to-hold-office-chartered-accountant/
These public official love to play the a**.
@ David
Now you and all the others who cussed Worrell would recognize why he was fired. No Minister of Finance has to accept the advice of a Central Bank Governor.
It is known that Sinckler was refusing Worrell’s advice. Governors prefer to be fired than resign. I think only one person on BU actually said Worrell’s firing was better for the country than a resignation.
Read the articles carefully and you would discover that Sinckler is the person to be blamed not Worrell. When a Governor resigns it affects the institution and governance. When he is fired they get another Governor but everybody knows that it would have been occasioned by a policy difference beyond compromise.
Duopoly Rules
@William
You are therefore saying that when Worrell was sacked he took the matter to court because he expected to lose?
@ David
As I said , I don’t know why he chose court. I can only think that he felt such a move would have exposed the real reason he was fired and perhaps bring some reform such as what you Johnn A and others have suggested.
My main position all along is that Worrell like all the ones before him could give advice but no Minister of Finance is obligated to follow it.
BTW I never support IMF programs. I don’t care who recommend them !
@William
You may want to refresh your mind to the court documents Worrell vs Sinckler.
https://barbadosunderground.net/2017/04/01/chris-sinckler-vs-delisle-worrell-court-appeal-document-available-board-of-the-central-bank-expressed-concern-about-the-falling-foreign-reserves/
@ William,
The central bank governor is not responsible for policy. His/her job is to give advice. I assume the governor wet to court to pressure for higher compensation.
Sir William
Maybe you are getting too old and toooooo set in your ways.
Your logic about the acceptance or non-acceptance, of same, is truncated.
The next logical step was for him to have resign when the instructions from the political masters was deemed untenable.
The final step would then be a press conference to say why he was resigning.
People are talking about whether it is the job of the GoB or the bank itself to give advice or determine policy.
There has never been any firewall in Barbados and most small developing countries between these two.
Certainly, it has never been the tradition in Barbados to construct or maintain such a wall between economic policymakers and mere advisers.
GoCB
@ Hal
You are correct. This is the exact point I am trying to make.
@ Pacha
“People are talking about whether it is the job of the GoB or the bank itself to give advice or determine policy.
There has never been any firewall in Barbados and most small developing countries between these two.
Certainly, it has never been the tradition in Barbados to construct or maintain such a wall between economic policymakers and mere advisers.”
You again come with this familiar refrain; ” There has never been any firewall in Barbados and most small developing countries between these two.”
The Governor of a Central Bank is no “mere” adviser because a Central Bank is no “mere” institution. You are quite within your rights to posit why you think he should have resigned and how he should have done it; press conference etc. I was asked by David why I think he went to court and I simply gave my opinion.
What you need to admit is the fact that Worrell gave the minister advice; he did not take it and Worrell was fired. By your own argument if indeed there was no firewall; he certainly would not have been fired !
Please tell us when in the history of Barbados, you have ever heard a Governor of the Central Bank publicly oppose government policy while in office. You are saying there is no firewall but tradition suggests there is.
For the record I don’t support IMF programs.I don’t care who recommends them.
Please tell us when in the history of Barbados, you have ever heard a Governor of the Central Bank publicly oppose government policy while in office. You are saying there is no firewall but tradition suggests there is.
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Sir William:
There is no record of this. You well know it. But yours is the proverbial strayman defense. Maybe, you have found too often a convergence with your English friend.
That was certainly not a case we made. But in the strawman defense you have learnt well from your erstwhile colleague. We have never ordered the series of events you first outlined. Yuh catching at straws.
We contend that there is no firewall expressly because of tradition and law. And we can quite easily justify.
Courtney Blackman is the man who built the cultural framework of the CBoB. He not only gave advice to Barrow but also determined policy, at least in part. The formative policies of the bank. A bank whose primary responsibilities are to control the health of the economy. Where is the firewall between advice and policy? CBs make policies for banks and others every day.
There have been members of the board, and senior employees, of the CB who, we known with certainty, and you should too, who were involved in writing budget speeches and election manifestos. Are these no longer policy instruments? Where is the firewall advice and policy?
Worrell was required to resign once his position became untenable!
David
What shiiite party is this?
The Socialist Democratic Peoples’ Party – are we right?
What duopoly thingah mehee is this this?
Socialist to bring in BLPites
Democratic to bring dead Dems
And People’s for the rest, or Eric Fly’s former party members.
What de shiiiite is this? Not one seat for dem!
These jokers carrying a joke toooo far, much tooo far! LOL
@Pacha
Waiting to hear and learn more.
@ Pacha
I never thought that you would set up Courtney Blackman as a straw man! Pacha you really out to sea.
As for me and my English friend; I consider you both to be brothers in the struggle. Neither of you is a cool aid drinker.I think we three have a lot in common philosophically.
David’s articles showed beyond a shadow of any reasonable doubt that Worrell gave the advice as his job description outlined and Sinckler said no to him and then fired him.
You are very close to Worrell with your world view. Just go and read some of his papers.
You and Hal are not like the cool aid drinkers that come on this blog pulling down people who have this country at heart.
No man is perfect but the nasty cussing that Worrell got was totally undeserved and you know that. There is not an academic in the country with the humility of Delisle Worrell and you know that.
More to come
“You are therefore saying that when Worrell was sacked he took the matter to court because he expected to lose?”
David BU
According to reports in the news media, then minister of finance Christopher Sinckler ordered then Central Bank Governor Dr. Delisle Worrell to resign by Monday, February 13, 2017 or be fired, “at the insistence of other senior Central Bank executives who have been critical of Governor’s management style.”
“Relations between the Minister and the Governor also deteriorated on the heels of public warning by Worrell that the Government had to live within its mean and stop the practice of printing money.”
Worrell went to Court on Sunday, February 12, 2017, to file an injunction during an emergency hearing at the High Court, to prevent Sinckler from terminating his services, which was granted by Justice Randall Worrell.
Acting Chief Justice Sandra Mason, who along with Justices Andrew Burgess and Kaye Greenidge presided over the four-hour long hearing, dismissed a case in which Worrell CHALLENGED the right of Finance Minister Chris Sinckler to FORCE him out of office. Less than 24 hours after the Appeal Court lifted the injunction against his removal from office, Dr. Worrell was fired, which was confirmed by his lawyer, Gregory Nicholls.
I’m surprised that someone mentioned Worrell went to Court “to pressure for higher compensation.”
@Artax
It is called group think.
@ Willam,
May suggest that one of our newspapers or phone-in radio shows interview Dr Worrell or/and Chris Sinckler and put tough questions to them. If Dr Worrell had signed a non-disclosure agreement, he has been out of the central bank for over a year now so should be free to speak of his time there.
Where I live we call that journalism. But, may be, Bajans get a kick out of the speculation.
Is there something magical about one year?
Why not two, or three or four or five?
Why not for as long as you are collecting a tax payer funded pension?
You are asking for people to be “freed-up?”
Why not free the tax payers from paying pensions?
Do you know whether Dr. Worrell or Chris Sinckler have made themselves available to the press?
If a person does not wish to speak how do you make them?
You must know as well as I do that Bajans are notoriously closed mouthed.
David, I don’t know that I would consider it embarrassing to be “sacked” by Chris.
@ Simple Siimon,
Are you OK? Have you taken your Green Tea this morning? You invite Dr Worrell and/or Chris Sinckler for an interview. They can either agree or say no. End of story. Simple.
@ Hal
Don’t hold your breath! No need for that. Who will risk that? Journalists can’t even get information on White Oak. They can’t get a proper interview with any of the ex ministers. And just yesterday a minister in the ministry of finance told a senior journalist that he (the minister) did not know that people were questioning the White Oak agreement.
Same old same old.
Duopoly Rules
It is no secret Chris Sinckler and several of his former colleagues
prefer to operate below ground for the moment. This has been discussed many times in the public space. Why would Worrell get embroiled in this kind of a conversation given his role in the Bermuda economic council for example?
The opposition raises its dirty head: Clown Jester Ince complains about the late payment of foreign debt. Wasn’t it this reckless clown who once said the Barbados dollar was a piece of s***, worth nothing?
DLP means return to slavery, stench on the south coast, criminality, nepotism and any other nonsense and backwardness that is unfortunately so typical for many developing countries. Whoever chooses DLP chooses the economic neck iron and the sale to Arab slave traders.
Our honoured Prime Minister must now be steadfast like Stalin during the Great War. She must not be distracted by the high treason of the opposition and must be smart in the negotiations with the creditors and prove her legendary endurance.
Better doom than a new Sinckler.
Robert Lucas
Will Lucifer (Satan) on the day of reckoning be forgiven by his creator for the part he played in the Adam and Eve story and countless other atrocities througvout history’s pages? Worrell proved himself to be compromised until someone shone a light in his head and he started to rebel against the crook show that was Dem. Guess you will forgive the DEMs and let dolittle Stuart and his idiots come back to redeem themselves.
It is no secret Chris Sinckler and several of his former colleagues
prefer to operate below ground for the moment. This has been discussed many times in the public space. Why would Worrell get embroiled in this kind of a conversation given his role in the Bermuda economic council for example?(Quote)
Oh please!
@Hal at 7:56
Yes I had my green tea. That is why my head was so clear, so early in the morning.
Well , well look at the Worrell apologists Austin and Skinner looking for all kind of foolish excuses , in my view for the ex Govenor.His behaviour was self serving and unethical full stop and no amout of window dressing will change that in my view so why don’t you two quit making youselves look like jackasses.
“TheOGazerts June 6, 2019 7:28 PM
Small brain one-track mind here
Can one of you big brain guys tie this to a single Caribbean digital currency and to Bitt…
Don’t fall for the psuedo-adversarial role and a repackaging of the pork.”
https://barbadostoday.bb/2019/06/12/bajan-bitcoin-bites-the-dust/
You all are so busy with your big talk and advance ideas that you all miss the sleight of hands.
I saw a next story that made me think of a Caribbean digital currency. They are feeding your egos and running their scams ….
Hal Austins
Worrell laid with the dogs that had fleas. How can he be flealess? He missed his window of opportunity. He sold his soul for 12pieces of silver. Rather he is making sense or not, his voicings are cries from the wilderness. He is infirmed by a DLP that laid waste for a solid foundation. He would do well to come clean ask for forgiveness and admit that he was a shite. He can also spill the beans on whatever hemight know about underground workings of the stinking DLP so that Rougue Works would have the evidence she needs to start investigations into DLP corruption. BUT we done know that two face Mi Mottley aint gine do one shite to dem.
@SSS
Your use of language is different to mine, more flowery. However, you are right. Dr Worrell damaged his own professional reputation by taking instructions on economics from Chris Sinckler. Given that, I am still keen to debate his ECONOMICS, and not politics. I think his economics are flawed.
Who is listening to Dennis Johnson on Brasstacks?
Hal Austin
I have no pretty talk for these two parties. They both are responsible for a lot crookery and deceit. In or out, the shite is still brown.
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