Some focus by the public will return to the economic performance of the economy next week when Governor of the Central Bank Kevin Greenidge is scheduled to deliver his Review of Barbados’ Economy in the First Quarter of 2024 on 30 April 2024.
One does not have to be Adam Smith to anticipate Greenidge’ talking points. It will be that the post-COVID economy continues to rebound on the strength of tourism performance and world cup cricket events to be held in Barbados in a few weeks will fuel the current trend. Further, he will mention the Pierhead and Bay Street development expected to boost construction activity and encourage Barbadians the importance of investing in BOSS bonds.
In recent weeks Barbadians have been distracted by recurring political shenanigans in George Street and understandable concern there was a plan hatched by government to purchase Drax Hall plantation from Richard Drax, a plantation recorded in our history to be at the centre of slave activity in Barbados. Not to forget concerns about the cybercrime bill sent to a Joint Committee of Parliament to accommodate public concerns that some aspects of the proposed legislation is an overreach.
It is unfortunate a vast majority of Barbadians are unable to walk and chew gum. We are too easily swayed by singular issues and unable to decouple from narrow personal perspectives. What an opportunity for the Democratic Labour Party (DLP) to engage the many issues on behalf of a public easily swayed by opinion shapers and social media influencers. What a waste of significant resources allocated to education in the national budget year after year.
The blogmaster is concerned that a new economy has not emerged after the experience of the pandemic. Obviously transforming an economy from an over reliance on tourism cannot be achieved on wing and a prayer. However, we should be able to spot green-shoots of a new economy in policy formulation and nascent project implementation to gain the confidence of onlookers we are committed to leaving a tired economic model behind.
As we continue to celebrate National Heroes’ Day, Errol Walton Barrow is one who will be remembered for being part of establishing Caribbean Free Trade Association (CARIFTA) AND his commitment to raising the standard of living in Barbados through access to ‘free’ education. Sixty years later are we happy with the return on education (ROE)? We have become a people intoxicated on consumption reflected in high household debt and debt to GDP. Ignore the government’ boast that debt to GDP has fallen from 180 in 2018 to 115 in 2024. The debt restructure was mainly responsible for the decline, Barbadians and bondholders (domestic and international) had to accept a premeditated ‘haircut’ by the Mottley administration. The decline is not the result of national projects EARNING foreign exchange or quantum level increase in domestic productivity.
Barbados’ economy has stabilized since the junk credit rating era of the so called lost decade, however, there is the saying “a rising tide lifts all boats”. Our economy has improved because the world economy has improved so that it has facilitated demand for world travel. However, the fickle nature of tourism should be a major concern. We need to do more, more quickly to mitigate all risks associated with being overly dependent on tourism.
The blogmaster invites you to join the discussion.