New funding models, development of the human capital and good governance must be essential features of any plan for Barbados and other regional states to effectively develop their economies and build resilience coming out of the COVID-19 pandemic.
The points were raised on Tuesday as experts outlined an extensive list of recommendations while examining the topic Rebuilding Economies for the Future: Opportunities for Resilience Through Diversification, during the opening of the Central Bank of Barbados 41st annual review seminar.
Governor Cleviston Haynes said it was generally accepted that recovery from the social and economic disruptions caused by the COVID- 19 pandemic required a concerted policy action.
He also pointed to the need for more resilient buildings, improved building codes and property insurance, given the island’s vulnerability to hurricanes and other hazards.
“As we seek to rebuild our economies, we need to place emphasis on enhancing our resilience against future shocks by taking advantage of opportunities to prioritise the environment, encouraging innovation and building buffers. Our research needs to cover these critical issues,” said Haynes.
“Financial innovation, as the pandemic has demonstrated, is also central to more resilient economies, providing important opportunities for development,” he added.
During the panel discussion, Advisor to the Governor of the Central Bank Michelle Doyle emphasised the need for countries to have access to new financing models that took climatic events into consideration and for greater development of digital payment systems to ensure financial inclusion.
She also stated that recovery will depend on how technology is being leveraged in key business sectors, the development of human capital “to adapt to the new normal” and how the region is able to develop new business processes.
Meanwhile, Director of Research at the Caribbean Development Bank (CDB) Ian Durant said governments needed to optimise domestic savings and build infrastructure with climate change and disaster risk management in mind.
“We have to strengthen public sector accountability and budgetary procurement systems so that public sector programmes are properly assessed and the country gets value for money in its spending. We also have to mobilise resources for development through financial institutions such as CDB, where there are low cost resources that can be accessed,” said Durant.
He also reiterated calls for regional leaders to diversify their economies in order to become more competitive.
“Competitive and innovative economies have good infrastructure, good institutions. That is what building back better is about. So we need good infrastructure that allows for the efficient exchange of goods and services. This includes roads, ports and IT infrastructure.
“We need efficient regulatory institutions that protect property rights, facilitate trade and provide the right incentives. We need good public financial management systems that reduce wastage and properly assess government programmes and projects so that there is a strong relationship between those projects and the country’s development goals,” said Durant.
While agreeing with the areas for improvement, President and Group Chief Executive Officer of Massy Holdings Gervase Warner questioned whether leaders in the region had the will and “appetite” to make the necessary institutional and programmatic changes.
He also foresaw some challenges that could limit the region’s ability to rebuild stronger including the seeming lack of cohesion among Caribbean Community member states and tight fiscal space.
“We can expect we will get a little lift coming out of this COVID-19 pandemic and we must be prepared to take advantage of that. We must be prepared to take the spoils of that and not waste, but invest for the growth and competitiveness of our countries,” advised Warner.
“But there is a part of me that says this is a big challenge ahead. Often times we lack the resources and the will to be able to pull it off,” he added.
(marlonmadden@barbadostoday.bb)
