If ever we could not see that Barbados remains mired in deep economic agony, the blinkers must have fallen off yesterday.
The cold, stark reality was laid out by Director of Finance and Planning Ian Carrington in his characteristically blunt manner as the Government rolled out its debt restructuring programme.
“Let us be clear, Barbados is insolvent. This is the nature of a bankruptcy proceedings and what we are seeking to do is put our fiscal and our monetary house in order.”
But equally dire alarms were issued long before Carrington.
Rewind to the 2017/2018 Estimates of Revenue and Expenditure, when former Prime Minister Owen Arthur warned then that Barbados could not tackle its $3.3 billion debt crisis on its own.
Said Arthur: “A debt refinancing obligation of that order or magnitude cannot be accomplished without the help of the international financial community.
“And Sir, there is a powerful reason for us to engage with the International Monetary Fund. We are not going to get over the debt unless there is some institutional arrangement that gives credibility to the creditors of Barbados that the Government of Barbados is not acting unilaterally on the matter,” he said last year.
His repeated plea came to naught as the Freundel Stuart administration dithered, failing to take tough decisions, seemingly drunk on its own rhetorical Kool-Aid that the situation was under control even though the country’s economic indicators were abysmal.
The baffling inaction was vexing then and is now, especially when Stuart and his team had the lessons left by the earlier DLP administration of Erskine Sandiford (now Sir Lloyd), which faced with a fiscal dilemma in 1991.
That is perhaps why the views expressed by Minister of Finance Chris Sinckler in February 2017 about a possible approach to the IMF were especially peculiar.
Sinckler said: “We do not at this time believe it is necessary for Barbados to enter into an International Monetary Fund programme, whether stand-by or structural adjustment or whatever terminology.”
A year later, his tune had changed. Almost. “The IMF option is always on the table, it is just one of the options Government always has. That is why we joined…. If that is what the people of Barbados want, and they say that is what ought to be done, then we shall see.”
But we never turned to Washington. Now we are on an unprecedented fiscal cliff from which there is no easy escape and those who brought us to the brink are not the ones who are suffering now.
In the words of former Prime Minister Sir Lloyd Erskine Sandiford, “how did we get back here?”
And Barbadians are left to increasingly ask themselves, and each other, when will this all end?
Not for a long while and not without pain.
Government’s announced debt restructuring exercise, which has been touted as the credible way back to the path of stability, calls for major sacrifices by all.
Under the proposed arrangement, domestic creditors holding Government debt will retain the principal on their investments but they will now have to wait longer and receive a haircut on interest payments.
Already on radio and social media today, ordinary citizens were voicing concerns about the substantial losses they will face on their hard-earned investments in the full faith and credit of the Government of Barbados.
The bald facts are that there are no easy answers and no magic bullet. Government now stands between citizens and economic oblivion and is obligated to act wisely, fairly but decisively.
As the Prime Minister well knows, these are difficult times from which great leaders are sometimes forged. She therefore must ensure her Government remain frugal, talk straight to Barbadians as she has begun and where necessary, take hard decisions, even if that means putting the brakes or reversing election campaign promises that prove too costly.
This Government needs to plan its short-term fiscal objectives within the context of a broader strategy for long-term financial sustainability, and by all means it must protect the most vulnerable, eliminate inefficiencies and cut unnecessary expenses.
So we are in for a rough ride, but by redoubling our efforts to get Barbados right, we can weather the storm and make it to the other side.
Your editorial slant has gone forty-five degrees to the right of center, an insult to us who read and understand.
Who is the housewife writing these articles?
@Johnny Crow. A housewife who looked in the larder and realise it empty.
WELL SAID EDITOR…you couldn’t have put it together any better.As I have said before..since Kaymar was FIRED the EDITORIALS have been 100% BETTER.
That JOHNNY crowing above is so afraid of the TRUTH that he had to change his name from ARCHY PERCH to a JOHNNY crow to avoid having to face the TRUTH after the WASH OUT of his beloved DEMOCRATIC LABOR PARTY.
Then what do you expect from a person who then decides to call himself a CROW and to put a JOHNNY in front of it in a place like BARBADOS of all places.. then goes on to talk about a 45 degree slant to the RIGHT as though he DOES NOT know that a turn that way is akin to a POSITIVE slant
JOHNNY crow …with the emphasis being on the JOHNNY as highlighted…you need to check the URBANS’ dictionary for the TOP definition of a CROW..if you had I am sure that you would NOT have put a name such as a JOHNNY before it.
How did YOU get back here ?
The larder was EMPTIED of ALL the EXPIRED and OUTDATED products that were eventually sent back to GEORGE STREET.
FRESH products are in the BONDS and WAREHOUSES of the present Government and in the WAREHOUSES of the PRIVATE SECTOR.
Getting rid of those PRODUCTS at ALL COSTS was the PREREQUISITE for GETTING HELP.
Sandy had BARBADOS in a SIMILAR position and it took OWEN 14 years to get us out.
PM MIA INHERITED a WORST scenario…how did WE get back there ?
We got back here by not identifying the real problems with the economy and finances. We have a HIGH TOURISM LEAKAGE RATE, poor management, economic and financial systems and too much PRIDE.
“How did we get back here?” Did we ever leave??? should be the other question.
How did we get back here?: Simple: Over the years both administrations failed to pursue programs that would have enable Barbados to “earn” foreign exchange. For years we have been borrowing money to run the country. During the nineties and early twenties the world had an abundance of “paper dollars” that was readily available to all and sundry. In 2007/8 the world suffered the worst financial crisis since the second world war. As a result all hell broke loose in the entire world and Barbados suffered. Politically it would have been suicidal for the DLP Administration if they had taken the kind of drastic measures as being done now. They tried their effort best not to go to the IMF. At the same time they tried to preserve jobs. When they were “kicked” out of office the country was on a growth path.
Thanks for a totally realistic summary of where we stand, Ed. : yet in Rocky Gully, but at least we now discern a path leading out of this hellish place.
My remaining concern, is how to we ensure the next generation is sufficiently sensitised and educated so as not to return here? Hmmmm….cud erect a statue of former Minister of Finance….in a special below-ground level pedestal…the easier for the pigeons…stray dogs…and folks caught short in Bridgetown.
TD
When they were “kicked” out of office the country was on a growth path.
What growth path??
the last two quarter under DEM recorded negative growth in gdp!
TD
Politically it would have been suicidal for the DLP Administration if they had taken the kind of drastic measures as being done now.
* so what you call 30-0?
Bs committed murder on DEM?
all DEM were concerned about was holding on to power and not doing what was best for Barbados. but it back fire on DEM
td
They tried their effort best not to go to the IMF. At the same time they tried to preserve jobs.
Stop trying to fool the public!
DEM tried to save jobs?? or you mean DEM try to save when it was politically beneficial for DEM?
remember after the 2013 elections DEM send home over 3000?
then hire DEM supporters before the last election
@JOHNNY THE CROW/TENNYSON THE DRAKE; are you for real? Stuart and the MOfailure were playing with empty pockets for a long time and any one with a half of their brains tied behind their backs knew that for a long time and this is the end result, the country is broke, broke, broke and if they had retain the government, all hell would have broken loose. Barbados would have being finished, never to rise again.
@JOHNNY THE CROW/TENNYSON THE DRAKE; are you for real? Stuart and the MOfailure were playing with empty pockets for a long time and any one with a half of their brains tied behind their backs knew that for a long time and this is the end result, the country is broke, broke, broke and if they had retain the government, all hell would have broken loose. Barbados would have being finished, never to rise again.
…but of course Jenny..you and I and know that OWEN and the BEES were NOT kicked out because of BAD performances with the economy.
I remember back then a DLP candidate came to my window and asked me to VOTE FOR A CHANGE …that was their campaign slang back then….and the masses fell for it hook ,line and sinker.
Are you saying that SANDY doesn’t know what he is talking about ?
Tennyson Drakes…man you are something else..sometimes I have to read your comments for the end and come forward in an effort to UNDERSTAND what you are saying…your comments MAKE ABSOLUTELY NO SENSE WHATSOEVER…what growth are you telling yourself?….10 years and 90 days of NO GROWTH but just before election DEM says there is GROWTH and just after elections…the CENTRAL BANK REPORTS NO GROWTH and WORSENING CONDITIONS…yet you continue to talk about GROWTH as though your words carry more weight than the CENTRAL BANK and the IMF.
They had BAD CREDIT ALL around…what do you mean that they tried their best not to go to the IMF ?…you got FOOLED with that one too ?the IMF will NOT give ANYONE a LOAN with a KNOWN and PROVEN record of BAD CREDIT WITHOUT having first to DEVALUE their dollar..you mean to tell me YOU doan know that?
I have read all the comments and everyone dance around the the real issues that Barbados, is currently facing. And blaming former administrations for Barbados economic chaos. The real question what does export to generate revenue?
So who are you going to blame when ALL was WELL when people like you removed the BEES in 2008 just for a change?
You need to do your OWN research from 1994 ALL the way to 2018 and you will get the REAL issues and stop repeating what the Democratic Labor Party yard fowls on this forum continue to tell DEMSELVES in their darkest days which will no doubt escalate into YEARS.
TRUE to the saying that the DEMOCRATIC LABOR PARTY has NO VOICE.
That JOHNNY above has NO ANSWER to the headline ” how did we get back there”…instead he criticizes the EDITOR whenever there is a BALANCE question or an editorial laced with PROOF.
Note,whenever the BLP is mentioned in their efforts to clean up their MESS,he is first out of the blocks with his attacks…now he is rendered USELESS this time with NOTHING to say.
JOHNNY ya CROW or CROW ya JOHNNY or simply JOHNNY CROW…you and your clique here need to see an otolaryngologist about YOUR voice problems where all ya could be referred for VOICE THERAPY …in the meantime make use of SIGN LANGUAGE and ignore any FISHY smells or the stench of decaying rats to stop you..it didn’t stop you in reference to me back then ,so it shouldn’t stop you now that it is closer..much closer.