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By Dennis De Peiza
The term the ‘lost decade’, is one that is familiarly known to the Barbadian public. In the local context, the lost decade can be described as a politically orchestrated description of the perceived failings of a past political administration. Research has revealed that the term ‘lost decade,’ has global significance, and can be applied to the period of economic recession that has been plaguing the world, ever since the year 2000.
Research would also reveal that the term originally referred to an extended period of slow to negative economic growth in Japan’s economy during the 1990s which lasted almost ten years. It is to be understood that stagnant growth in subsequent years led to the period since 1991 to be sometimes referred to as Japan’s ‘lost decades’.
Reflecting on the 1991 period, the historical evidence would show that Barbados was not spared the fallout from the economic crisis of the time. The country struggled to stave off the devaluation of the Barbados’ dollar and resorted to entering an International Monetary Fund (IMF) programme. Since the year 2000 until present, it is questionable what has changed in the Barbadian context. The country continues to engage in a programme of foreign borrowing that includes entering into IMF programmes. The government is challenged in managing the economy with little growth in production for export and for domestic consumption. Amidst all this, there remains the struggle to maintain employment levels.
Those who are prepared to put aside the political intrigue and propaganda, would want to take an objective look at global developments before commenting on the subject of a lost decade. There should be an awareness of the global shocks that have caused economies to contract, and in some instances, virtually end up on the brink of collapse.
What did this mean for the industrial societies and small islands developing states of the world? It meant the repositioning of individual economies to make them competitive, efficient and sustainable. Governments were forced to make hard decisions in order to maintain the viability of their economies. They were mainly concerned with combating the recessionary period, ensuring and maintaining the value of their currency on the global market, overseeing the growth of the economy, sustaining levels of employment, while at the same time, undertaking a balancing act of reducing expenditures. The latter held implication for maintaining sustained levels of employment.
Politicians and economists have used statistical information and analysis to convince members of the public that things are at a dire stage, that there is a need for tough decision-making, and for the populace to make inordinate sacrifices. Truth be told, the drastic changes which have been forced upon society, have been a consequence of the transition from capitalism to neocolonialism. Because of this, the most vulnerable has been placed under siege, the middle-class has virtually collapsed and those at the top have become wealthier.
It is true to say that the poor, vulnerable and middle-class, can clearly identify with what is called the lost decade. These groups which are referred to as ‘working-class people,’ continue to get poorer.
Statistics used by economists and central banks, would tend to suggest that unemployment is not an issue. If this is to be believed by those who choose not to deal with reality, then it is puzzling why world leaders under the United Nations Sustainable Development Goals 2030 programme, would place as a priority, the addressing of the matter of unemployment and underemployment.
DENNIS DE PEIZA
Labour & Employee Relations Consultant
Regional Management Services Inc.
www.regionalmanagementservices.com
