What makes up our debt?

I often wonder what it requires to be able to deflect or distract. I often wonder what it takes to present an image which people can live with. What it takes to provide comfort to a public which is wary or weary of economic ‘doom and gloom’ prophetic claims which have miraculously evaporated as we have somehow through divine intervention wandered from the dry river bed to the land of plenty. I often wonder what that would be like.

Sometimes when I sit back one can hear voices. It is something which analysts would argue embraces the notion of knowing when something just does not pass the smell test but rather than engage the realities of the information, we allow for slogans rather than a fulsome debate on what drove this country to the overindulgence in debt.

That is the reality of the results of the 2018 General Elections. No Opposition was elected into the House of Assembly, which has allowed for an expected virtual one-sided presentation of bills within the lower House. The normal concoction of the opening of debate when Government M.P.s engage in what is becoming a noxious ongoing assault on the ‘last decade’.

Forgive me, the ‘lost decade’ even as a country is burdened with the pain of an International Monetary Fund (IMF) series of measures, under which Barbados has only gone through year one, with a minimum of three more to come.
Despite all of this, the public is not treated to debates on the critical issues in what is the most economically perilous times in our nation’s history. What we get are pre-packaged presentations on selected information or slanted pieces of what passes for journalism which have lost their appeal in a citizenry which has lost patience.

The recent debate on the deal which Government has struck with foreign debtors must fall into this new alternative reality. The marco-economic discussion failed to explain to the public what drove this 166 square miles into the economic ditch in which we find ourselves.

The debate failed to address who and what we owe. The Credit Suisse loan which was at the forefront of the no-confidence exercise against then Minister of Finance Chris Sinckler back in 2013/2014, was used as a cudgel against the former administration, yet in the most recent debate, this island would have been provided with the notion that the majority of our debt obligations focused on this maturing debt. That simply is not true. When this island suspended debt payments since June 2018, all debt repayments have been stopped. The question remains who do we owe and how much? That question has been side-stepped most effectively by the Government, making me wonder if they can patent this talent and give the public to help navigate these pot-holed infested roads or uneven surfaces which the public has to traverse.

The Credit Suisse loan is interesting. Borrowed in 2013, allegations were made that this country defaulted on its loan repayments back in 2017, which was debunked fairly quickly, but this island owes for so much more, so why has the reality of revealing the scope of the exposure been so clearly avoided?

Any realistic and fulsome debate on our economic conundrum must take 50 plus years of development into the scope of investigation. To do otherwise is self-serving and undervalues the intelligence which Barbadians have.
Look at debt like some activity which you do monthly. Think about a haircut for example. I get one every two weeks, simply because my hair grows really quickly. So imagine forgoing twice monthly for once, and taking the savings and applying it to another cost which has accrued, or in Bajan, to a debt which you owe.

You can only continue to do that as long as finances dictate. Imagine going to an important event, such as an appointment where ID is used. Some people appear darker when their hair grows uncut for a while. This island has to accept an argument that savings will provide cover from the economic storm, but what about the game of ‘what ifs’?

What if Brexit is not done effectively and one of our key tourism source markets is impacted? What if the US economy heads into recession? What if the US-China trade battle impacts trade? The prevailing arguments being advanced are too simplistic.
We need to know what was maturing debt, aka, what was due within the next financial year and what other long term debt and liabilities does this country still have? We expect answers.

This whole exercise requires Barbadians to pay attention. The whole Queen Elizabeth Hospital debacle should be a wake-up call for the country to pay attention to what their elected leaders are doing. From this exercise with the creation of three senior level posts within the QEH, where the vacancy notices for the posts have not been seen, to the suggestion that a new structure was needed, even as the same Board struggles to handle ongoing issues within the QEH makes me question what is going on within the institution.

The public should also question the crime situation in Barbados. Three deaths happened on Independence Day, which forced a response finally from the Attorney General. We are approaching 50 murders for 2019 and precious little has been said from Government to re-assure Barbadians that all is being done to provide security.

This does not escape the correlation between the economic conditions in this country and its impact on public life and discourse. Disputes have escalated to the point where callous acts and a basic disregard for human life trumps the need to apologise for any perceived ill and move on. This represents a dangerous phase in our development and we need to act now or I fear it will be too late to effectively deal with it.

Barbados Advocate

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