Weekly Column

Irrespective of what the Dems might have you believe, they inherited a country that by all economic indicators was doing extremely well.

An unprecedented number of Bajans were employed, construction was booming, tourism was flourishing, agriculture was on the verge of a major restructuring, a regime was in place to attract major investment in a new offshore oil and gas industry, foreign investment was at an all time high, our foreign reserves were better than healthy and the national debt was manageable.

Today after only two years of David Thompson’s inept leadership every single one of the key economic indicators is down.

Our leader, Mia Mottley has tried her best from the floor of Parliament to show the Government the error of its economic policies and the danger in the extraordinary ‘wait-and-see’ strategy adopted by the Thompson. The old saying that you can lead a horse to water, but you can’t make it drink - was never more aptly applied than to this government.

Well the Central Bank’s Report is now out and quite apart from the dismal 2009 performance of the economy, there is another interesting set of comparisons provided in that Report. That is the 2007 figures and their comparison to 2008. They make very interesting reading.

Great store has been set in the Report on the impact of the global financial crisis on the local economy and while there has undoubtedly been fall-out, we must reiterate again that the crisis had only part of its roots in the collapse of Lehman Brothers in October 2008, the repercussions of which were not truly felt until 2009.

If it is only the international crisis as the DLP contends, how then does the Prime Minister explain the slide in the Barbados economy in 2008? He may wish to have Bajans believe that the global economic crisis is responsible, but the truth is that he taxed us into a recession long before the average Bajan had even heard about Lehman Brothers or sub prime mortgages. He then compounded it by having no growth strategy.

It is somewhat curious that the Central Bank is joining him in this defense, for unless and until the Government admits that the strategy of its first Budget was the wrong medicine at the wrong time then they are unlikely to be able to help in the recovery of the patient.

Miss Mottley warned Thompson that the 2008 Budget would prove contractionary, but he was so caught up with balancing the budget while running a small fiscal deficit, that he could not see the forest for the trees.

Again in 2009 she warned him that the Estimates were flawed and that they would not realize the revenue he was predicting. Our Leader also expressed grave concern about the foreign reserves. She predicted in the same Estimates Debate that the 5.5% deficit Thompson was forecasting would in reality be closer to 8.5%. The Central Bank Report now records the deficit as 8.4% of GDP.

Miss Mottley also predicted that unemployment would rise to over 10%, with which the Central Bank also now agrees. You be the judge as to who has a better handle on the economy, Mottley or Thompson. Like you, I maintain that Thompson and the DLP do not know what they are doing.

The Central Bank Report makes clear what every Barbadian already knows – our economy lives and dies on the strength of the tourism industry. We are calling on the Prime Minister to put someone in charge of tourism - even through the Senate, who will bring results. Richard Sealy is a cheerful enough fellow but he is an abysmal failure as a tourism strategist.

Our future well-being depends on it.
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