#BTColumn – On borrowed money and time

Disclaimer: The views and opinions expressed by this author are their own and do not represent the official position of the Barbados TODAY Inc.

by Dr Ronnie Yearwood

The government is embarking on the annual Estimates exercise which needs real reform, not shouting or talking down to civil servants in a “pit” trying to catch them off guard in the theatre of politics. We need an Estimates process which yields actionable results for actual governance improvement. However, ever so often, some matters are raised in the Estimates that we should attempt to assess.

History repeating

As a Barbadian first, I have no difficulty in saying that every government, in recent times, BLP, DLP has messed up. I recall saying at a Public Forum in 2017 that “… there are many instances in both the governance of this country by the Democratic Labour Party (DLP) and Barbados Labour Party (BLP) that would have contributed to the place we are at today. Let us be honest about that…”

Read the Auditor General reports, not just the recent ones. Some of the projects or policies we are only now seeing the results of or lack of results of, especially in Education. Stay around in politics long enough and your angels and demons can catch up with you in equal measure.

Though often, there is no responsibility taken for the policy failures, some of which do not become evident until many years later, decades even. By then the minister is gone; promoted to one of the three high offices of State, has passed away, working in another job or disappeared from public life. And even when the minister is still in public life, not much happens and no one is ever held accountable for the policy failures.

In fact, in Barbadian governance, history seems to repeat itself in glorious tragic comedy, and the losers are always us regular Barbadians, especially the poor. The political class always comes out ahead and always seem to find scapegoats for their failures.

Auditor General and evaluations

Read the Auditor General reports or news stories and you will cry in pain at the money wasted or mismanaged by government. Greenland landfill, Eductech, Newton Business Park on the BLP side; and NHC, Water Authority on the DLP side. As an educator, I take particular exception with Edutech.

In the International Public Management Journal (2010), Maureen Pirog and Sharon Kioko, stated that “initially, a total of $39.4 million (U.S.) was allocated for these civil works (CW) projects.

By the end of the initial seven-year loan period, two-thirds of these funds had been spent (only $13.2 million of the CW dollars remained) and only one-third of the planned CW improvements had been completed.”

On the IT component, which COVID has revealed never properly worked, the writers stated, “Overall, IT is the most expensive component of EduTech, initially budgeted at $68.9 million.

However, by the end of the seven-year loan period only 23.6 per cent of the technology had been installed (although 41 per cent of the funds had been spent).” In fact, this study showed that the initial effects of EduTech on grades for the 11-plus were negative. Yet, what are the new plans of Government when it comes to education and youth development?

Especially in light of the recent situation at the Juvenile detention centre. Have we seen a clear articulation of programmes for at-risk children in secondary and primary schools, or new opportunities for high-performing children from poor families?

This brings me to what can only be described as tragic comedy in the recent Estimates. The current government (BLP), which criticised the previous government (DLP) process for awarding house building contracts without a tendering process via Rule 239 (in the Financial Management and Audit (Financial) Rules 2011) is now using the same rule to avoid a tendering process and awarding contracts to the same company.

Rule 239 authorises the Cabinet of Barbados to suspend the tendering process. On the matter, the 2016 Auditor General special report on housing stated that, “In the absence of this [a tendering] process and other supporting documentation, the basis on which the Developer was selected could not be determined.”

The report further stated, “Even though a private company was being used to finance and build the apartments, this was no reason for disregarding the process of public tendering. Adherence to this process would have placed the Corporation [NHC] in a position to ensure that it was obtaining the most competitive bids the market had to offer in terms of price and quality.”

To laugh, cry or both

I guess the question is what has changed since 2016 to now. I am not sure if to laugh, cry or both at the same time. I remember stating at the same 2017 Public Forum I mentioned above, that “if the Barbados Labour Party forms the next government and believes it can simply continue to play the game of political musical chairs but does not seek to be drivers of real and transformative change, or if the DLP retains the government and believes it will be business as usual, then all we are doing would be exchanging six for half dozen. I say let our collective voices put them both on guard.”

Borrowed money and time

In fact, we may argue we need transparency more, especially in the Estimates, given that government debt and borrowing has increased to eye watering levels and the foreign exchange reserves are supported by borrowed money and thus borrowed time. According to the Central Bank Report (Jan – Dec 2020) the policy-based loans from 2018-2020 amounted to over a billion dollars.

Therefore, though we recognise the value and success of the debt restructuring that on its own is not an economic plan. We could also observe that borrowing at low levels, one per cent we were told by Government, is more or less fine but that is not a goal in itself and clear priorities for the use of the money have to be established as we all have to pay it back. This means that it would be fair to ask what is the government’s plan beyond COVID? Where does education reform fit in and its link to economic development? More specifically and one of my big concerns, the plan for economic enfranchisement and wealth creation for Barbadians.

Priorities

Renaming parks or changing symbols while core issues remain outstanding, such as anti-corruption laws, freedom of information acts, and justice reform is not good enough.

We will become a Republic we are told, but swapping one ceremonial Governor General for a ceremonial President, meanwhile there are no term limits for the office of the Prime Minister, no fixed dates for elections, no freedom of information act, no prevention of corruption laws, no education reform, no juvenile justice reform, and we can go on and on.

What are the priorities, window dressing or real reform? We have waited too long for these changes, government after government. We must demand them in the now, not the tomorrow. How long shall we wait, while this current sanctimonious circus continues. Will we ever get change, or should we all retreat and not be bothered anymore? Many of us are tired and disappointed.

Stay safe everyone.

Dr Ronnie Yearwood is a lawyer and currently a lecturer in law at The University of the West Indies,
Cave Hill. Email: yearwood.r.r.f@gmail.com