BERT 3.0 to ‘shock-proof’ Barbados – Central Bank Governor

Barbados is preparing to roll out an upgraded Barbados Economic Recovery and Transformation (BERT) programme as the country seeks to fortify its economic foundations amid what Central Bank Governor Dr Kevin Greenidge terms a “shock-prone world”.

Speaking during the Central Bank’s first-quarter economic briefing on Wednesday, Greenidge said the island’s ability to withstand crises – including the COVID-19 pandemic, Hurricane Elsa, the 2021 volcanic ashfall, and Hurricane Beryl – stemmed directly from reforms under BERT.

“How many shocks have we had since the start of the BERT programme? Pandemic, hurricanes, the volcano… we’ve been shocked silly,” he said. “But we’ve recovered each time.”

The BERT programme, launched in 2018 during a debt crisis, stabilised public finances through IMF support via its Extended Fund Facility (EFF). Barbados became the first Caribbean nation to include a “pandemic clause” in restructured debt, permitting payment suspensions during emergencies – a mechanism later emulated globally.

Implemented in phases, BERT 1.0 halted economic decline through fiscal consolidation and reserve rebuilding, while BERT 2.0 – adopted during the pandemic – incorporated green transformation and private sector mobilisation.

Greenidge confirmed BERT 3.0, now in development, would address climate volatility, supply chain instability, and shifting trade patterns. “This is no longer a world of globalisation. It’s a world of re-shoring, of localisation, and of persistent shocks,” he said. “BERT 3.0 is being designed to reflect that new reality.”

Though details remain limited, the upgrade will focus on institutional efficiency, digitising public services, state-owned enterprise reforms, and workforce training. “Efficiency has to be the order of the day – whether it be institutional efficiency, digitisation, or modernisation,” Greenidge stressed.

Ongoing initiatives include the Central Bank’s new payments system to improve financial inclusion. The Governor emphasised BERT 3.0’s social framework to ensure household-level resilience: “The focus must remain on public sector efficiency, training, and equipping citizens to adapt.”

The IMF recently praised Barbados for meeting all BERT targets, describing the country as a model for small island states facing climate and economic vulnerabilities. Greenidge attributed this to consistent reforms: “Our credibility today is because we stayed the course. And if we stay on that course, we’ll be ready for whatever shock comes next.” (SM)

What’s BERT?

Originally launched to address a crippling debt crisis through IMF-backed reforms, the homegrown BERT has evolved through three phases:

BERT 1.0 (2018): Stabilisation through fiscal consolidation and reserve rebuilding

BERT 2.0 (pandemic era): Growth initiatives with green transformation focus

BERT 3.0 (current): Climate-ready reforms and institutional modernisation

While full details remain undisclosed, key elements of BERT 3.0 include:

Public service digitisation to reduce bureaucratic inefficiencies

State-owned enterprise reforms to curb fiscal drains

Workforce training programmes aligned with emerging labour needs

Enhanced social frameworks to ensure household-level resilience