EDITORIAL
A measured approach to structural adjustment is always challenging for governments to get right. For one, there is a fine balance that has to be weighed – payments to creditors and other external parties, while still undertaking capital works projects and keeping employment numbers in good standing. While this period sees Barbados trying to cut down its worst ever debt, we are at least heartened by several things: Barbados has been through other periods of structural adjustment and bounced back each time; despite differing political persuasions, all are committed to continuing the ideals and standards of our island and playing our collective parts; and we are all agreed as a nation that our dollar must not be devalued.
As other economies in recession have proven, there can be numerous nightmares if measures aren’t put in place to ensure social stability. While countries like Greece, Spain and Portugal are examples of the extremes in economic fortunes, the human toll of economic disaster is sobering and must give pause to any government seeking to change its misfortunes. Iceland is a striking example of the rare nation that was able to pull itself out of bankruptcy after its austerity steps, but Barbados still has a long way to go before seeing clear skies after the economic storm.
As stated earlier, the challenge for any government is to balance the various concerns well enough to meet all obligations. Despite the start of austere measures, there are still pending decisions to be taken. For example, we know there will be job cuts of some kind in the public service, but it is not yet clear what the number is. Figures from 1 000 to 4 000 workers have been bandied about, with Government officials and Prime Minister Mottley denying it will be on the higher end. We appreciate that Government has its hands quite full, but in light of the reality of higher costs of fuel, water rates, increased NIS rates soon, and other hikes, it behooves the next step of the Barbados Economic Recovery and Transformation to be handled deftly to ensure the public is adequately notified and prepared for these phases. Holders of treasury bills, treasury notes and debentures, for example, were surprised recently by the abrupt notification of the change in the terms and conditions of the instruments they own. As part of the Government’s debt restructuring efforts, one can understand that tough decisions have to be taken in the name of saving the country. However, the lack of warning left much to be desired, even as the public aims to take note of the changes and adjust their lives to suit.
This is also the time that Government must lead by example by being its most efficient, not just by cutting the wages bill, but also by insisting on better utilisation of resources. The retooling and retraining exercise for pending laid off public workers is admirable, but all too often inefficiencies at the state level continue despite changes in administrations and personnel. The Licensing Authority is one example of how extraordinarily long and frustrating it can be to execute simple tasks of renewing drivers’ licences and/or registering vehicles. It is time that such inefficiencies be curtailed and eliminated.
As we all acclimatise to this new, pained reality, perhaps one of the biggest challenges is the mental readjustment that structural adjustment brings. We are, however, bolstered by long-standing Barbadian resilience, faith and determination, and a sure knowledge that better days are coming.