New economic model needed with greater private sector activity

Barbados needs to embark on a new economic model that involves greater private sector activity.

That is the view of Donville Inniss, the Minister of Industry, International Business, Commerce and Small Business Development.

Speaking at the Rockley Resort just before presentation of this year’s Fair Trading Commission (FTC) lecture, Inniss said that Barbados is engaging a reality check that is torn between the 1960 to 2010 development model that is driven by heavy state investment and involvement to aspire diversification in economic and social goods.

He revealed that from here onwards there ought to be more private sector led growth inspite of or perhaps due to a deep and prolonged recession.

“Our forward thrust into the new Barbados must readily accept a phenomenal growth in private enterprise inside and outside of the traditional areas, including areas traditionally reserved for the state,” the Minister said.

Inniss stated that such movement will demand that Barbados must have competition firmly entrenched in the national psyche. The Minister suggested as well that “we must unshackle our minds from the heavy state dependency and toss ourselves into the water of the more aggressive, decisive and visionary competitive environment.”

Inniss maintained that rivalry among firms in the local marketplace is to be encouraged rather than being discouraged.

“To do so in a civilised manner that respects the rights of consumers, clear competition policies, both in laws and in deeds in enforcement mechanisms are to be developed and sustained,” Inniss suggested.

“I boldly proclaim that we have had a solid foundation and experience with competition policy as manifested by the various pieces of legislation that governs the world of the Fair Trading Commission and the Office of Public Counsel in
particular,” according to him.

He recalled that such work has resulted in the realatively smooth break up of the telecoms monopoly here in Barbados and the sale of or merger of major players in key sectors. (JB)