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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.


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126 responses to “Barbados’ economy on slow march”


  1. And how many times has the country been here?

    How much longer must it take to prove, on past and current trajectories, that the country can never exit these downward cycles?

    Has it not been the same regardless of the variables considered?

    And is it not a state of national madness to keep doing the same kinds of things over and over again while expecting markedly different results?

    Must death be the only corrective?


  2. Death is certainly in the air. Seems it’s the only solution offered up for everything.


  3. On point.
    —x—

    The issues are numerous with new issues appearing each week.

    The death spiral is inescapable. The attempt to treat this many items problem into a dichotomy B vs D or diaspora vs local will not solve the problem.

    Sending wordsmiths out (DC) for Drax Hall, (the old old porn guy) on the cybercrime bill and (case closed woman) on the checks will not move these items off the table.

    I suspect that even those with belly full of Kool aid know the supply has a short life


  4. @ The OG,

    Just be ready send back some Diaspora money when the next hurricane hit.

    I will do the same but hope Barbados will escape.


  5. “Sending wordsmiths out (DC) for Drax Hall, (the old old porn guy) on the cybercrime bill and (case closed woman) on the checks will not move these items off the table.”

    Nothing is moving, if anything there will be mucho additions. And a friendly advice to those who like to run interference as little fowls to redirect attention unto others and away from the biggest cockup to date, ……this time it won’t work and very likely to make what’s playing out now much, much worse…

    ..yes, there are barrels of info to choose from….. anything can be distilled PUBLICLY no matter HOW EXPLOSIVE…it’s WHO is doing the distilling.


  6. Cuba hosts debate on international economic order – Prensa Latina

    https://www.plenglish.com/news/2024/04/29/cuba-hosts-debate-on-international-economic-order/


  7. Well cited!

    There is no hiding from what is required. We must stop trying to pick peas from shiiite

    A good place to start is to get back to Keynes. The original Keynes of the 1930s, 1940s.

    Of course, the most fundamental answers could be found in the thinking of the Hammurabi, in their codes of 2500 BC.

    The Hammurabi required the cancellation of debt. Indeed, the promise of debt cancellation was often used as a means of territorial conquest.

    Barbados needs the total cancellation of all debts. Possibly excluding corporate debt. But we do the reverse.

    Paul Keynes, in his recommendations required balance of payments to balance, that elevating another currency, the US dollar to replace sterling would land us where we are today, amongst other radical ideas. However, the Americans, while crediting him as the economic guru of the period, and most economists since called themselves Keynesians, criminally misused the thinking of Keynes to install a financial empire.

    This is a system where a few countries can issue worthless paper and control it’s transfer mechanisms while occurring to themselves the real value produced by the rest of the world.

    On balance payments between countries, Keynes argued that for example, if Barbados had a balance of payments surplus with Caricom that Barbados should reinvest that surplus in Caricom countries.

    And if Barbados had a balance of payments deficit with America, then the United States should reinvest an amount equivalent to the deficit in Barbados.

    And we may go on and on. For the real work of Keynes was magisterial. Not the BS modern denuded false economy as taught at Cave Hull and preached by the CB would have us believe.

    But these two points alone, properly applied will solve, at a fundamental level, all the economic problems countries like Barbados continue to face.

    Of course, we can’t look to Keynes alone. For we must revisit the thinking more generally of classical economic thinkers of the pre neoclassical era and also Marxist theory which was a child of classical economic thought.

    Once you say Marx, some immediately are turned off, out of ignorance. However, it is impossible to fully understand Keynes unless one also reads Marx, especially Das Capital, all three volumes.

    On another point, it’s amazing to this writer still that BRICS best represents an economic thinking from which countries like Barbados would clearly benefit. Yet whether it’s Thorne or Mottley, the DLP or BLP, we’re so subsumed by false economic thinking as if an unending property is the nation’s birthright.


  8. Right now the WRONG people are managing Barbados and the other islands they will never get anything right, they never have..

  9. William Skinner Avatar
    William Skinner

    @ Pacha et Al
    We suggest that if we embark on selling all SOEs, we should abolish income tax and implement a 10 percent sales tax across the board.
    Income tax in small economies is a waste of time. We need to give people complete control of their earnings which cannot keep up with inflation.
    The price of all lands should be removed from speculation and price accordingly.
    Reduce the cost of land; and create more jobs in construction. It’s time to stop all building of hotels for the next fifteen years. We are going to be left with many white elephants if another COVID type disaster comes.


  10. @William

    Be careful what you ask for. Barbados does not have a history of efficiently implementing anything. Abolishing direct taxation for indirect has the potential to be regressive which will negatively impact those at the low end of the income ladder.


  11. @ David

    The reality is the debt restructuring that was carried on the backs of the bond holders appears to now have been in vain, based on the deficits we continue to run. This year if you factor in the money needed to float the SOEs, we will be running a deficit in the area of $1.4 billion. That being the $1 billion outlined by the PM in her budget and the $400M that was mentioned a few weeks later, but was somehow omitted in the said budget! And what have we done to restructure or offload these said SOEs? Not a dam thing is the answer. So we will throw more money at a loosing entity while doing nothing about it, hence next year this time we will be looking for another couple hundred million to prop up the same entities.

    And how to do we plan to fund this deficit? Well we going borrow more thats all. As Sir Lloyd asked “how we get back here?” The restructung was no more than a plaster on an infected leg wound that bought us time. The leg however now needs further attention as gangrene is setting in.


  12. @John A

    The PM will say the ‘fiscal space’ created from doing the debt restructure helped Barbados to weather pandemic and other challenges we had to face. Just imagine if …


  13. William…it wont be covid this time, run away inflation, stagflation will destroy everything.

    Saw someone in US crying about a tray of 18 eggs which was no more than $2- 3.99 is now nearly 10 bucks, butter in the 90s was around 1.99 now 12 bucks….

    So imagine these islands…..prices in Barbados are out of control…..so too other isles and all the politicians do is chase shadows…..while the real ways and means they can’t access because it’s clised off to them…they are only on one trajectory.


  14. Poverty not ‘property’. In the last line! All these algos get the better of us.


  15. @ David

    Anyone can say what they like but the numbers lead to a different story. In 2024 there is no Covid and we have heard how well our economy is doing by the powers that be. If all this is true then why the $1.4 billion dollar deficit?

    The truth is we have done nothing to restructure our economy during or after covid. We continue to spend more that we earn and then persons speak of nonesense like ” fiscal space.” You devistate the NIS fund by writing off in excess of $1 billion of their assets and you coming to me talking bout fiscal space! Take that to the faithfuls them believe anything. Be Christ next relections i going to de beach!

  16. William Skinner Avatar

    @ David
    We need to go in a different direction. Recall, that citizens were fed hogwash about how brilliant the MOF because she was able to borrow money. We said the agreement with the IMF was to 2035.
    Now we learning about all the money we have to give the IMF.
    The MOF brags about billions in foreign trade but we have lost one billion Re : National Insurance and many citizens were sent to the cemetery , when their pensions were illegally garnished by the state.
    The cost of living is the second highest in the world and millions upon millions are wasted on ill conceived financial excursions.
    We bragging about foreign reserves. The fridge full with goodies but the children can’t get a sweet drink or a piece of cheese because it locked.
    @ Yolande Grant
    The lies and deception are exposing themselves. And people who were vilified for speaking the truth must now feel vindicated. Imagine our children are eating cheap ass non nutritious ramen ; these criminals increased bus fares; raked in millions pretending they were fixing water issues; poor Black children going into schools that are giving them respiratory problems; they now revisiting the minimum wage scam; gave hoteliers millions during COVID and the workers did not see a blind cent; told nothing but lies with the steal houses; etc etc
    We must abolish income tax, one ten percent sales tax, and let the people carry home something yo feed their children on the brink of starvation and malnutrition.


  17. Corruption, mismanagement, incompetence. The history is very clear and well documented. It was all deliberate….

    The Enemy Within – Marcus Garvey


  18. @ Wiilliam

    Dont forget the tens of millions collected in the new fuel tax at the pump.

  19. William Skinner Avatar
    William Skinner

    @ John A
    Exactly! Dr.Clyde Mascoll, a man who told us that he would do anything PM Arthur asked him to do; held up as a victim when in fact he was nothing but the biggest political coward post Independence, went on Brass tacks and deliberately underestimated the amount of money collected from the fuel tax and was successfully contradicted by Kemar Stuart. When he shamelessly said he would do “anything” Arthur told him to do , we trembled because Arthur could have told him to poison the the water supply and kill us all !A man who abhorred taxation but is now one of the ruthless architects of the excessive taxes being unloaded on the people.He has sat without saying a word and watched poor Black people bonds illegally stolen by the government.


  20. This scheme was made a part of the economy and uprooted people’s lives unnecessarily through evil lying..destroying economies…big pharma will have to pay naturally, but the liars who sold this fraud must be prosecuted and imprisoned…no maybes…only WHEN..

    SOURCE: Yahoo News
    AstraZeneca has admitted for the first time in court documents that its Covid vaccine can cause a rare side effect, in an apparent about-turn that could pave the way for a multi-million pound legal payout.


  21. making small steps in the right direction, a 1% improvement in growth is much more likely than suddenly achieving massive bigger jumps ..

    Try to be Happy 🙂 😊 😀 😃 😁 ..

    Seems like just the moaners and groaners regulars are venting on the bu, with plenty of weeping and wailing and gnashing and kissing of teeth, perhaps this attitude is why the economy is depressed ..


  22. Those at the lowest end of the economic ladder are already exempted from paying income tax / receive reverse tax
    A sale tax will pull every person under the tax umbrella ( all including the snowcone / street vendors etc)


  23. @William

    We must be able to separate the chaff from the wheat. When this government took office it came after a rocky period for the country as you will recall. Given the unprecedented support Mottley received decisions taken were accepted as necessary to stabilize. Let us agree.

    The challenge is coming after five years we are being fed a narrative that paved roads, new buses, garbage trucks, unlocking access to credit etc is the performance metrics we should accept. These types of achievements are expected from any government as routine.

    What we want to see are visionary positions taken to catapult the country into the next 20 years. Is this what we are seeing?

  24. NorthernObserver Avatar
    NorthernObserver

    @WS
    Isn’t your 10% consumption tax with income tax abolition what GPII proposed? It didn’t get a lot of traction.
    Barbados already has a bariffle of taxes, and revenue schemes that go under names like stamp duty. The entire mess needs cleaning and simplifying.


  25. @John A

    The blogmaster’s opinion is that there is a crisis of leadership, there is a crisis of incompetence. Years of auditor general’s reports will support.


  26. when BLP came into power in 2018 they almost announced Barbados was in financial problems and needed debt reprofiling..

    .. which begs the question why didn’t DLP say anything about this problem before

  27. William Skinner Avatar

    @ David
    “The challenge is coming after five years we are being fed a narrative that paved roads, new buses, garbage trucks, unlocking access to credit etc is the performance metrics we should accept. These types of achievements are expected from any government as routine.” (David”
    We engaged in a lot of mumbo-jumbo about garbage collection and buses which in the end were the worst buses and garbage trucks ever purchased and in no time , all of our chest thumping came to nothing because the garbage collection and poor public transportation resumed. We reduced ourselves to bragging about garbage collection when we should have seen such a service as expected , the point you are making above.
    @ Northern Observer
    “Isn’t your 10% consumption tax with income tax abolition what GPII proposed? It didn’t get a lot of traction.
    Barbados already has a bariffle of taxes, and revenue schemes that go under names like stamp duty. The entire mess needs cleaning and simplifying.”
    (Northern Observer)
    Perhaps. However we concur with your position that : ” The entire mess needs cleaning and simplifying.” First step; Abolition income tax.” the economy is in a strangle hold and the masses are being forgotten. Put the money in the peoples pocket.


  28. The usual talkers. Nothing new here.


  29. @Enuff

    The issue here is the usual message from this Governor like others, preaching 4% growth achieved on the back of tourism. Then we have the PM boasting on the East Coast about wage increases for public service but when one looks at the recent estimates debated there is a deficit that has to be funded? Do you know if the PM is the person who signed off on the construction happening on the East Coast?

    https://youtu.be/PQSJpxQWnGc


  30. David

    Sir please tell me what new economy can emerge in 2 years? Furthermore, tell me what is required? When tourism does poorly, you and the usual critics say it doing badly etc etc. and cite St.Lucia, St.Kitts etc. Wunna oppose a new educational system, new planning system, everything new! Instead ask for IL, when it comes, FOI, when it comes, SEAL, when that comes LEAS etc etc. ? Just admit, you and your ilk intend to criticise and oppose everything. What construction on the East Coast?


  31. @ David

    I can list over 12 economies that have rebouded since Covid and no i will not include Guyana as their position is unique.

    So for those die hards that defend the party to the end here is a basic law of accounting. The first thing one addresses in a company or country when revenue slows is expenses. You bring your expenses to a servicable level jn relation to your income. You also go after receivables with a vengeance, you do not therefore give away $500 million of them because you dont know how to collect them.

    Any country or company that runs a 1.4 billion dollar LOST with total recenue of say 6 billion can not expect to service it out of cashflow.

    In other words in Bajan terms if we dont dam well stop spending more than we make by such large amount another debt restructuring will be in our future.

    David tell the fowls come and argue different based on accounting as opposed to yardfowlism.


  32. Pacha..i guess it’s really over when the quiet parts are said out loud…many will be asking now what??….but i guess they SHOULD have been PREPARING in the last decade.

    Source: RT

    Liberal world order must be destroyed – Orban

    Western liberal hegemony has failed and must be destroyed, Hungarian Prime Minister Viktor Orban stated on Thursday, suggesting it could end as soon as this year.

    Addressing the Conservative Political Action Conference (CPAC Hungary) in Budapest, Orban criticized the existing “world order based on progressive liberal hegemony,” saying it has spawned numerous figureheads who are “not fit to be leaders,” with even “beauty pageants” knowing more about peace then they do.

    He accused liberal politicians of building “hegemonic ideological control to which everyone must submit” instead of actual governing, while turning “state bodies into tools of oppression.” Such forces are a dangerous enemy whose time is coming to an end, Orban claimed.


  33. @ William

    Your points are sound and based on our economic reality. Unfortunately we live in a very forgiving society and the politicians can always come back and tax we tail more.


  34. Enuff you need to read with understanding. The point was made that a new economy cannot emerge at the snap of fingers but we need to be sold a vision and see green shoots by now of policies even at a nascent stage. There is no aggressive policy to build infrastructure for HEV and EVs, there is no policy effectively reducing court case work load, there is no smooth regulatory system e.g. FTC and EMERA. The AG writes about the same level of mismanagement, incompetence and hint of malfeasance in his last 4 reports, most recent the special audit about steel houses.

    Truth be told there is no confidence that your government is prepared to introduce disruptive changes how it governs. We have to criticize because we have been debating some of these issues from BEFORE this government took office. Is there any government including yours that take criticism? The blogmaster cites the last parish speaks in st. Joseph.


  35. Step by step the feds are decriminalizing…looking forward to see it taken off the schedule and the full benefits made available.

    U.S. states where recreational marijuana is legal
    By Reuters
    April 30, 2024
    3:26 PM AST
    Updated 26 min ago

    A 4/20 event in Denver
    Large crowds of people gather to smoke cannabis during the informal annual cannabis holiday, corresponding to the numerical figure widely recognized within the cannabis subculture as a symbol for all things related to marijuana, in Denver, Colorado, U.S., April 20, 2023. REUTERS/Kevin Mohatt/File Photo Purchase Licensing Rights,

    April 30 (Reuters) – The U.S. Department of Justice is moving to make marijuana use a less serious crime, taking a step to reclassify the drug out of a category that includes heroin.
    Reclassifying marijuana represents a first step toward narrowing the wide policy chasm between state and federal cannabis laws, with the drug legal in some form in nearly 40 states.

    Currently, Marijuana falls under the same classification as heroin and LSD. A successful reclassification would include marijuana in the schedule three list alongside drugs such as Tylenol with codeine and ketamine.


  36. Yesterday we wrote a little about economic and social history. A subject few teach these days.

    Today we propose to connect a central force within social and economic history to the student uprisings which started at Colombia University a few weeks ago and have now spread globally, especially to elitist institutions like the Pantheon-Sorbonne of Paris, the alma mater of Macron. All institutions which are controlled by the same oligarchs who dictate that foolishness taught as modern economics.

    This critical link makes people like the governor of the central bank, ministers of finance and other officials no less threatened than the way these oligarchs who control these academic institutions now seek to unleash police forces against students who believe, wrongly, that they have some democratic right to peacefully protest the genocide in Palestine.

    Even in Ancient Greece these oligarchs were purposefully shut out of government. And this was done to make sure that the system was not tilted towards minority interests. Indeed, for a time, one had to be rooted at the other end of the social order to be elevated to leadership.

    Not so now. Everything is upside down!

    And though we support the student demonstrations now and always. This must be balanced against the consideration that students have tended to keep a lot of noise when students, when they have no bills to pay, but once graduated a different or real world appears.

    This cohort maybe different, given the radically changing environments. Entrapped in student debt, unable to find a standard of living better than their parents, within a social order more and more about the survival of the fitest.

    Where are the demonstrations at universities in the. Caribbean? Where are the denunciations of Mottley and Thorne about the civil rights of global students? Where were the critiques of Netanyahu, a man said to be the subject, of a arrest warrant from the Western controlled ICC, International Criminal Court? Where is Mia Mottley, the childish conscience of mankind, cussing Netanyahu, the same way she cussed Putin?

    In short, we argue that the oligarchs have long controlled our world and as long as that is, justice will remain a fleeting elusión,


  37. Do you really expect the self absorbed always on the hunt for an angle to self promote to actually see let alone have the mental wherewithal to do anything useful at such a level..

    …talk is cheap…..anyone can talk, not many can turn it into positive energy.


  38. David

    I have no problem with the criticism but talk about what you know, not what you feel. What EV infrastructure is required? What has been put in place to address the backlog? If anything has been done, has it achieved its objectives to date and if no, why? How do you clear the backlogs? This is how you raise public debate, not by just saying oh the government lacks the cojones. As for the steel house, I’ll await RAT’s PAC hearings. I don’t speak everything I know, as sometimes it’s good to let the BU intelligentsia rant.


  39. @Enuff

    Ask Avi Persaud. He is the one who explained why government’s EV policy has been pedestrian because of the lack of infrastructure charging stations etc. there is the high cost to buy said vehicles. There has been the lack of planning to facilitate storage etc.


  40. Weee can’t call this a transformation because the world as we know it has not evolved in 7,000 years, therefore until it does we are in transition.

    In an article am reading, call centres “could soon be replaced by AI with chatbox, making the need for human agent, “minimal” within the year….that would be this year…

    Translation: dem int need no humans…..soon come….no employees…been hearing reading and seeing documentaries on this for a while..


  41. boss lady.


  42. Mia is a sell out to people and country
    The IMF press release is a slap in the face to all right thinking barbadians
    Time and time again Mia has said that the IMF loans were the best thing since slice except the IMF are chewing on all the big slices while bajans push the bread cart containing ridiculous fees and surcharges that add up in the millions
    Just another rich man heist off the backs of the poor aided and abetted by the PM
    Mia cares


  43. @ David

    Not only the steal buildings but how bout the HOPE Housing Project! That is a dam embarassment to the PM. Anyhow the Boss Lady says she will get back to us on HOPE after a full investigation! The question like with Savvy, is when?


  44. @John A

    To much stuff to rummage around the red bag. We the people, will have to wait on those elected to serve us say when.


  45. Anyhow the Boss Lady says she will get back to us on HOPE after a full investigation! The question like with Savvy, is when?

    xxxxxxxxxxxxxxx

    OVER 5 YEARS AND NO PROSECUTIONS OF MARK MALONEY OR DLP FORMER MINISTERS FROM THE PROMISED RED BAG BY THE BOSS LADY.

    WHAT IS YOUR DAMN RUSH?


  46. What new economy in yuh dreams it would be the same ole left over politics of warm soup handed to the people
    When that has run it course that shuffling of the deck comes a priority
    Like world cup cricket revenue spending where govt thinks it matters most to impress
    How about that 5 million shuffled into one section of the economy while the other section is left to hang out and dry
    Then when the coalation of hoteliers cry poverty the taxpayers money goes to feed the greedy beast
    Now pray tell how can an economy improve or grow in a political environment of such lopsidedness


  47. Did any one notice or care to notice those long lines wrapped inside and outside BRA
    That is an example of barbados economy at work meanwhile those people some of who.are elderly do their diligence in paying taxes after which govt would decided who gets the lion share
    Mia cares


  48. All designed to keep the Afrikan population perpetually trapped in poverty, deliberately….IT IS A PATTERN over half century old….. once that is innerstood….maybe those with the inner strength will move themselves away.

    Then the weaklings can continue to sit their slaveminded selves down waiting on politicians.


  49. Yeap.the people know that there are being dismmised rejected and abused
    But look who is doing all the damaged to the people
    Those who looks just like them
    The people got to understand that sitting in silence is like digging their own grave
    The blp led by the PM Mia Mottley had extravaganza of food and drinks and spinning of the political wheel at Barclay’s Park everybody or mostly had an enjoyable time
    But look what happens the lines at BRA are almost equal to the crowds at Barclay Park but with two differences govt belly was filled ..while the people’s pocketbooks were emptied
    Mia knows how to strstegize monuments fetes and nuff nuff promises some that don’t materialize some costing the country millions

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