Post-BERT questions raised

As the Mia Mottley administration inches closer to the end of its homegrown Barbados Economic Recovery and Transformation (BERT) programme, one economist says several questions should now be answered.

University of the West Indies (UWI), Cave Hill Campus Professor Dr Justin Robinson said as the International Monetary Fund (IMF) funded BERT programme approaches its end, Government should now be deciding whether it wanted to continue with another programme.

The multi-million dollar four-year IMF-funded programme is due to come to an end in about nine months’ time.

“Given that the BERT programme would have been impacted so heavily by COVID, which was a huge hit to our economy, it is really a decision whether they should consider extending the programme or exit at this time,” said Robinson.

“Has enough repair been done that they are comfortable exiting the programme? I think that is a question that needs to be asked,” he said.

Robinson was responding to a question during a Rotary Club of Barbados lunchtime webinar on Thursday held under the theme Economic Recovery In Spite of COVID.

Of equal importance to deciding whether to continue an IMF programme, he said, was the need to boost investor confidence.

“Given the hit that we have had from COVID, is continuing to hold the hands of the IMF for an extended period, we might want to consider, a way of boosting investor confidence?” he asked.

Robinson, a director of the Central Bank of Barbados, argued that beyond growing the Barbados economy despite the COVID-19 pandemic, Government needed to minimise the loss of economic growth through “large periodic fiscal adjustments that we have to make”.

“I think the solution we have on the table that we see around the world is fiscal responsibility laws, which really legislate maintaining that fiscal prudence. I think in Barbados that is one of the policy questions we need to address at this point as we come close to the end of our IMF programme. Given the shock from COVID are we ready to move beyond the programme? Should we extend this programme? But we do need that fiscal prudence to avoid giving up growth,” he maintained.

During the programme, Robinson also highlighted the need for improvement in the doing business climate to encourage more private sector investment while encouraging creativity and innovation. marlonmadden@barbadostoday.bb