GET ON BOARD

This country needs to get on with its economic recovery programme.

This position has been outlined by Professor Andrew Rose, this year’s Central Bank of Barbados’ (CBB) Distinguished Visiting Fellow, who highlighted several policy initiatives for Barbados during his presentation in the Caribbean’s Economic Forum.

The event took place on Tuesday night at the Courtney Blackman Grand Salle of the Tom Adams Financial Centre

In a 90-minute presentation that included a lively question and answer series, moderated by leading Barbadian journalist Julian Rogers, Professor Rose said that Barbadians need to do what is in their best interest.

He told the audience, which included CBB Governor Cleviston Haynes, that if Barbados wants to go forward as it should, policy making has to be on the supply side. What that means, Professor Rose explained, is enhancing productivity, removing the unnecessary red tape, and allowing young people to get involved in start-up businesses so as to enter sectors that make them well equipped by the educational system.

The official, who hails from the University of California, Berkeley, believes that Barbados should look to Latin America to broaden the country’s tourism industry in light of challenges from Brexit; raise exports, then press ahead with renewable energy and with integration in the Caribbean.

According to him, this island faces serious constraints and very little can be done on the monetary side because the exchange rate is fixed and the Central Bank of Barbados provides a very credible anchor. The Professor remarked that against this background, he does not think anyone wants the exchange rate to change, since no one knows what it would changed to. He maintained that like many countries, Barbados has balance of payments constraints.

“However, the easiest way to reduce that is to raise exports,” he said, adding that green technology is very profitable and moving the economy towards more sustainable forms of production that reduces the environmental impact can turn out to be very profitable for many businesses.

“So I expect more of that to continue,” he noted.

On the question of unemployment, Professor Rose stated that what is important is to ensure that people who have lost their jobs are able to find alternative employment in the shortest possible time.

He pointed out that the Government is already running a fiscal deficit which is being reduced, and clearly there is very little fiscal space given the debt that has been built up.
“So policy space has to be on the supply side regulation,” the economist advised.