Straughn calls on stakeholders to contribute to economic progress 

Minister in the Ministry of Finance and Economic Affairs Ryan Straughn believes Barbados is making steady progress towards achieving its economic targets for 2030, but has underscored the critical importance of timely action from all players in the economy.

Addressing the nation’s progress, Straughn told Barbados TODAY: “I think for us, the sooner we can get things done, the better. And that means from the banks to the individuals, to the credit unions, to the businesses and all of that. We have seen some progress, but of course, we had a significant disruption with COVID, both in the logistics as well as the financing there.”

The minister pointed to recent government measures aimed at building resilience, such as the removal of Value Added Tax (VAT) on water tanks and electrical pumps, “so that as we seek to repair and replace more mains in a more accelerated fashion, the disruption to households will be less, but that requires people to go either through the water authority or through the persons who are actually making those tanks, to do that quickly.”

Straughn also stressed the importance of private sector participation in modernising the economy.

“We want to be able to see more uptake, not just of renewable energy, but of changing out of the digital system, the analogue systems, moving to digital payments, more e-commerce and that type of thing, putting the economy on a real 21st-century trajectory,” he said. “But that means private people, the private sector, wanting to make those changes, because if we don’t, then the rest of the world is just going to leave us by.”

The minister addressed scepticism among some businesses towards these changes, warning against clinging to outdated methods.

“If you attempt to do the same thing that you were doing in the year 2000…anybody who wants to stay in that lane, they’re really just committing effectively economic suicide, because you’re not changing with the times, putting yourself to be as competitive as the others,” said Straughn. “Amazon is a beautiful example of where people can go online now, purchase what they want, bring it into Barbados, pay duties, and it’s still less than what they may be retailing for here. [This] should be a clear signal to the business community that they need to change the way that they’re doing things. So some are doing that, some aren’t…. And we see a lot of people who want to be on the cutting edge, and you will realise that in the next 10 to 15 years, it will be those persons who have made the leap that will be the strongest in the end.”

Straughn was optimistic about the possibility of a Barbadian equivalent to Amazon: “That would be entirely possible if we understood – and that’s why we had a global supply chain forum here a couple of weeks ago – logistics. Amazon is a logistics company, full stop. They’ve layered e-commerce on top of it. They’ve brought sellers and buyers into the same space, and they have guaranteed that you will be able to get what you want in a timely manner, in a cost-effective manner, and therefore what is required.”

The minister suggested the increase in courier services during and after the pandemic as a positive trend.

“I’m happy to see that during the pandemic and post the pandemic, there’s been a lot of activity within the courier part of the economy. More people are still applying to get into that, yes, and the packages have not stopped, because people get that I don’t have to travel now to get what I want. COVID caused people to change their behaviour, so rather than going away and trying to pack up a whole set of things to hide from customs, you go on Amazon, you bring it in through the courier company, and you can get what you want in seven days. So, the reality is that people have a choice, and they’re exercising those choices.”

Straughn also highlighted the potential for Barbadian businesses to tap into international markets.

“It’s really just a function of people understanding that they’re not limited to what is available in Swan Street or Broad Street. So, you’re still seeing a lot of demand in that space, and therefore to the comment about having our own version of Amazon, it means that our people need to see, whether they are a vendor on Swan Street, whatever you’re doing, that you too can sell your goods to the rest of the world.

“It means you must take advantage of the fact that we have multiple flights to the United States, the United Kingdom, and Canada weekly, and therefore you too can sell into those markets seamlessly. You just have to take advantage of the connectivity. The logistics are already in place to be able to use the global supply chain framework to get onto the market, and that’s something that we would love to see more people do because that means more foreign exchange coming into the country, keeping the economy going.”