Government must turn its attention to building a more robust investment culture to resuscitate growth in the face of major economic fallout from the COVID-19 pandemic, President of the Young Democrats Kemar Stuart has suggested in an economic update.
He has proposed a reform of the public service, less dependence on tourism and the building out of new economic sectors among other things.
Stuart insisted that Prime Minister Mia Mottley must outline a new “economic reconstruction plan” at the new session of Parliament set for September 15, in light of the recent Central Bank report, which revealed a 27 per cent drop in economic output in the second quarter, that resulted in an overall decline of almost 15 per cent over the first six months of 2020.
Stuart said: “Greater innovations are needed to attract foreign direct investment in Barbados and we need to place a heavy focus on our investment policies and be able to attract foreign direct investment in Barbados as multilateral borrowing is not enough to suffice the development that we urgently need in Barbados.”
He however cautioned that any new growth would depend on the removal of complex and antiquated policies within Government’s administrative process, saying that poorly performing departments, state-owned corporations and agencies were in need of much reform because they often hindered new projects and innovation within the public and private sectors.
“A makeover of the public service is greatly needed sooner rather than later to raise the standards to that of the US, UK and Canada where our public servants are internationally competitive. Our public service needs to bid on contracts internationally where [it] earns foreign exchange and it becomes a contributor to Government’s finances,” Stuart argued.
The young democrat went on to question the Prime Minister’s failure to deliver an industrial policy as pledged in April, adding that there was a pressing need for Government to divest interest in what he called “mature industries” in the Barbados economy.
Stuart suggested: “A move away from tourism not wholeheartedly but to divest some stake in tourism is a very important point going forward in a reconstruction plan. The acquisition of equity in some profitable ventures by the state, and full nationalization of some sectors to keep our social elements intact.”
He proposed that research and development in the area of medicine, special and technical procedures, medical equipment and disease control are key areas Barbados can turn to achieve economic growth and strengthen our health sectors across Barbados and become the beacon of health and the provision of health services within the Caribbean region.
Stuart further called for Government to provide updates on the work of its Jobs and Investment Council in light of the recent passing of key member late Prime Minister Professor the Rt. Honourable Owen Arthur, as well as the recent changes to the Cabinet which he claimed would impact a key economic driver, the creative economy.
“With the reshuffling of the cabinet and the removal of the creative economy as a stand alone ministry, the Prime Minister must now make the findings of the creative sector prepared by Professor, the Most Honourable Eudine Barriteau public so that Barbadians can join the conversation on a creative service economy and the role it may play going forward in our economic survival.
“The massive void left on the council with the passing of the late former Prime Minister Owen Arthur, the question may be asked who is filling this large void to create 20,000 jobs in the Barbados economy in the medium term. This is a mammoth task and more information is needed as to how Barbadians can play a greater role in their own development. We are asking the Prime Minister of Barbados to be more open on the Jobs and Investment council so Barbadians can contribute their ideas,” he stressed.
