BUSINESS MONDAY: MISSING OUT

THE authorities in Barbados could very well be missing out on opportunities to drive more domestic equity and other investments  in this country.

So says Professor Justin Robinson, CEO of the Sagicor Cave Hill School of Business at The University of the West Indies, Cave Hill.

His comments came as the School is about to launch a six-month course in Stock Market Investing.

Professor Robinson said he believed the previous administration with its fiscal policy challenges; and the current one which has an agreement with the IMF, have missed out on reforming public assets and then offering for sale some of those assets to Barbadians.

He reasoned that once this is done it can drive wealth creation, and that in fact investing should be included in financial literacy programmes being offered. He suggested that the experience of Jamaica in going that route could be emulated in Barbados.

Referring to that situation, Professor Robinson revealed that one of the most significant developments there came when the Government invited private participation in the Trans Jamaica Highway, which is listed on the stock exchange in the country.

Conceptualised and started by the Government, Robinson recalled that shares were sold to the public and the latest word from the stock exchange is that the enterprise continues to do well.

“So the state assets (enterprises) here can be restructured and be packaged in a way that small investors are able to get involved, along with other major investors,” he reasoned.

He believes such an approach could spur more interest in investing and buying shares on the local stock market.

The UWI official indicated that the programme they are launching on May 29 this year will last for at least six weeks. He explained that they have had feedback from persons suggesting that the stock market remains a mystery and querying how it works.

“So it will be a basic course with part of the programme featuring a platform that will allow the participants to ‘trade in stocks’ although no money will be involved,” Professor Robinson said.

According to him, the situation right now in Barbados is that  companies here have tended not to list their shares on the exchange, and local financial intermediaries have not been doing it in the same way as in some other markets, including the same Jamaica.

“Some people lack the investment knowledge and how to look at investments and to get returns,” he said while adding that these issues will form part of the course.