‘Gov’t, can do better’: Howard on economy job

From getting a passing mark in the first year, the Mia Mottley has slumped to near failing grade over its handling of the economy in its second year in office, according to emeritus economics professor Michael Howard.

But he gave Government “high marks” for its response to the COVID-19 pandemic.

Professor Howard told Barbados TODAY while the administration had done a satisfactory job in their first year, they had dropped the ball this time around.

He made the comments just days after the Barbados Labour Party (BLP) celebrated their second year in office on May 24.

Professor Howard said: “If I had to evaluate the BLP in terms of the two separate years I think the performance was different. In my opinion, if I had to grade them I would give them a B+ for the first year and a D for the second year.

“In the first year they did well and they had a right to boast of having restored confidence in the Barbadian dollar, they went to the IMF [International Monetary Fund] which I felt was necessary, and it helped to raise the level of foreign reserves and I complimented Ms Mottley in the way she went about it. The way in which she brought stability to the economy was the hallmark of the first year.

“In the first year even though the level of taxation rose I think that Barbados was rescued from the previous years under the DLP.”

He also pointed to the debt restructuring which he deemed as necessary and which helped to reduce the level of debt.

But in evaluating the Government’s second year, the Professor Emeritus in Economics at the University of the West Indies at Cave Hill said Government’s performance left a lot to be desired.

He told Barbados TODAY: “In the second year I think things went downhill. The economy remained in recession, there were more draconian taxation; the water tax continued, heavy taxes on tourism; there was a decline in sanitation, poor water management.

“Somehow they lost track of the course and perhaps one of the main problems was the failure to restore economic growth. The taxation was very heavy and a lot of people especially the poor suffered a loss in welfare during that second year.

“Despite the income tax reform people were burdened by the increase in direct taxation. But I wouldn’t give them a failure because the fact that they achieved the six per cent IMF surplus meant that something was achieved.”

But on the Mottley administration’s handling of the COVID-19 crisis, Professor Howard said while he did not agree with everything that had been done he was impressed by Government’s handling of the challenges it faced.

He told Barbados TODAY: “I would give them some high marks, although they have been some blemishes. But I would give them some high marks for the way they approached especially the health aspect of this crisis because this was a new area and even though there were one or two slipups at first I think that they did a good job in restoring confidence in people.” randybennett@barbadostoday.bb