#BTEditorial – Training our guns on the cost of living

The spiralling cost of living is a persistent refrain that haunts Barbadians like a bad but unforgettable tune.

Every trip to the supermarket, corner mart or village shop is more costly, prices at the pump have been up more than down, and many who have been battling to keep their heads above water face more financial hardship and abject poverty.

A little under a week ago, Prime Minister Mottley made clear that more “discomfort was on the horizon as Russia’s continued invasion of Ukraine triggered record inflation by driving up prices on food and oil.

“That is going to lead to discomfort in many of our countries with respect to prices or with respect to access to those commodities. It is going to lead therefore to the potential risk of us having to be able to settle our populations and to get them to understand that the world is going through a difficult moment, but it is not the first time it has gone through and it will regrettably not be the last because of the nature of just human civilization and our natural made environment”.

Yet it was a jolt no less powerful than an electric shock when the Barbados Light and Power at the weekend served notice that surging global oil prices will affect the Fuel Adjustment Clause on the electricity bill.

“Light & Power advises that customer bills issued this month will be affected by this 22 per cent rise in the fuel portion of customers’ bills and will result in a notable impact on monthly electricity costs,“ a statement said.

Chairman of the Barbados Private Sector Agency, Trisha Tannis, cautioned that should this crisis drag on for much longer, not just affecting the price of fuel but also the accessibility of core inputs like wheat and so on, then we are looking at price hikes on practically everything that we consume. “This is something that is not going to augur well for the price of goods and services on the island,” she said.

World economists have warned that the Ukraine conflict which shows no signs of abating could tip a fragile global economy into recession.

And they tell us that the situation will likely get worse before it can improve. Prices will continue to rise and we must cut back our spending, stretch what we must spend and adapt to lean times.

But then, if you have little or nothing, what can you stretch?

The most vulnerable will continue to suffer disproportionately. Smaller firms and entrepreneurs are more likely to go out of business.

These developments no doubt are foremost on the minds of Barbadians and the Mottley administration.

But there are no magic wands or godfathers with deep pockets to the rescue. Lamenting the situation will get us nowhere. But a comprehensive, flexible plan that protects the vulnerable, revives productive sectors and  reignites economic activity is what we need.

Strong, decisive action by a government that has virtually no wiggle room, in an economy still to  emerge from the crippling impact of COVID-19 pandemic, is critical. But the alternative is too grim to consider. 

Scores of Barbadians are still unemployed or underemployed. The National Insurance Scheme remains under pressure. Government’s welfare services are stretched .

But yet again! Government and key stakeholders must rise to the occasion. Inertia will result in severe consequences and Barbadians need leadership that will help families to ride out this tide of economic uncertainty.

We expect that Government will lead by example, with prudent fiscal management with no room for wastage

We expect that as time goes on the Government must find a way to provide more targeted support for those who are simply unable to absorb the cost of living increases into their household budgets. Monetary and fiscal support must be funnelled towards engendering  economic growth.

Households too, those who can still function, should seriously take stock of  their own affairs and make changes no matter how small.

But while the bombs drop and the missiles fly in Ukraine, the battle against economic stagnation and runaway inflation requires our own arsenal of growth, self-sufficiency, ingenuity and adaptation is yet to be joined.