What the IMF prescribed

Marcello Estevao Leader of the IMF Mission to Barbados

Barbados has been in consultation with the IMF and the IMF issued a press release with its recommendation for the Barbados economy:

With the public debt now standing at 100% of GDP Marcello Estevao Chief of the Mission to Barbados said:

Against this backdrop, fiscal consolidation seems to be the appropriate strategy. Reducing government spending, increasing tax collection efficiency, and broadening the tax base would support the exchange rate regime and improve the government’s balance sheet. Moreover, credible and sustainable measures can actually raise medium-term growth, as better debt dynamics and lower pressure on external reserves would raise the private sector’s willingness to invest in Barbados. Thus, the authorities’ intention to push forward a medium-term fiscal consolidation strategy is very welcome.

The question that these prescriptions raise is what this will mean in actual terms for Barbadians. It certainly looks as though there will be an increase in taxes. Increasing tax efficiency is a laudable goal but Barbados already has a fairly efficient tax collection mechanism already. It is uncertain how much this would yield, especially in a situation where businesses are already suffering from severe cash flow problems and might simply not have the money.

We wait to see how this will unfold further.

A word to the wise on water

Something is fundamentally wrong with our decision-makers’ brains – there seems to be a fault in their logic and reasoning. It`s Tuesday Morning, 1:30am, yet sleep eludes me, because something is bothering me. I take my usual trip to the bathroom and without much thought depressed the tank lever to flush the toilet; a function we take for granted in Barbados and other Caribbean countries. Because of Climate Change even those with rivers like Jamaica, Trinidad and even Guyana have being experiencing dry taps and saw it fit to ration their water supply.

People, thanks to Global Warming, droughts in one area and flooding in others will be the norm – so get used to it. A Growing population, urbanisation, deforestation, global climatic changes and pollution are some reasons for the increased pressure on the existing water bodies. Population expansion is the single biggest reason behind the increased pressure on fresh water resources. Water consumption has almost doubled in the last fifty years and naturally, per capita availability of water has steadily decreased.

I have heard lots of talk on Barbados not being a water scarce country so I will inform the uninformed that water is a finite commodity. If a country has less than a thousand (1,000) cubic metres (m3) per capita per year it is designated a Water Scarce Country. Barbados’ available water resources are currently rated by the FAO at (390) Cubic Metres per person. One cubic metre is equivalent to 220 gallons. We are adjudged to be the fifteenth water scarce country in the world.

Though approximately 70 per cent of the earth’s surface is covered by water, only 2.5 per cent of it is fit for drinking. The rest is all salt water, which fills up the vast expanse of the oceans and seas — unfit for human consumption. Why then in 2010 are we are still flushing expensive potable water down our toilets and using it for agriculture.

Common sense also tells me that the BWA should have long ago been encouraging persons to conserve water and start water rationing. Logic suggests to me that the BWA is leading the Minister responsible for The BWA rather than the Minister leading the BWA. This modus operandi can only lead to poor judgment and chaos, as well as poor decision-making. Thus it’s like a case of a Private leading a troop into battle, rather than the Commanding Officer. Will it take our Hotels, Schools and Restaurants’ taps to run dry before we act?

Mr Lowe, this is an issue of National Security please show some leadership and stamp your authority. Our inability to imagine what we may be faced with and be proactive is because we have never experienced the stench from unflushed toilets. Can someone tell me if the BWA management has employed an obeah man or some seer thus the delay of a water caution decision until March? Or is this another case of poor advice from technocrats to Ministers who are afraid to manage their ministers for fear of being accused of micro-managing.
Mr Lowe can you please pilot legislation as your legacy, so that all homes can be encouraged through a tax rebate to install water tanks for water harvesting.

Finally I genuinely recommend the reading of the Biblical parable of the Ten Virgins (Matthew 25:1-13) to those responsible for the managing of our water supply.

Corruption on the Rise

Allegiance is seeking your views on (1) whether corruption is on the rise in Barbados (2) what we can do to address this problem.

Corruption is not limited to politicians and it now seems as though the most junior of public officials are getting into the act. Neither is it a feature of any particular administration. In our casual discussions some individuals think that we do not have a serious problem. We are not sure that this is true (according to Barbadian standards). We certainly can not judge ourselves by the standards of others – we have never done so.

This is a most serious issue and we look forward to your participation.

The West Indies Cricket Sector

The West Indies Cricket Team in happier times ... ...

Yes – the Cricket Sector. The cricket sector is potentially one of the most mature areas of activity in the Caribbean. We were doing well in cricket before we were doing well in tourism. We have been the best in the world and we have shown that we can continue to produce the cricketers. Like so many other areas we have failed to tap the economic benefit for the countries of our region.

This is where Government comes in – unfortunately the Governments of the Caribbean have never seen cricket as a sector for the economy. All of us would be highly critical of Government if we were sitting on minerals that we could mine and we were not seeking to do anything about it.

The idea is not for Government to throw money at cricketers or to interfere with the rules of the game. It is about building an industry in which we appear to have a competitive advantage. The region has not benefitted substantially from what can come out of a cricket industry. For example books, training, films, gear that is designed in the region and marketed as coming from the region.

Thousands of West Indians should be involved in an industry to which the region has contributed substantially in fashioning over the years. It is true that regional efforts are often cumbersome, but there is nothing to prevent Barbados from recognising this as one of the new sectors for development.

Countries with limited natural resources must create opportunities for themselves. It is possible to decide to develop an expertise in an area and just go for it!

Yes the whitewash was stark but if we were still benefitting more substantially maybe it would hurt less.