Prime Minister of Barbados David Thompson
The BU household continues to struggle to understand some of the tactics being used by some developed countries in the tizzy of the prevailing global financial crisis. The United States remains the mother of all free markets and in the thrust to sustain its thirst for profits it created the trade phenomenon, globalization.
BU family members maybe aware that there is an initiative on the way in the USA to entice Americans to buy local which Obama intends to attach to his stimulus plan: how ironic!
Among the world’s financial analysts there is the majority opinion that the USA is responsible for triggering the economic tailspin the world finds itself, yet they seem so willing to implement protectionist measures as a strategy to stimulate homespun industries. Conversely developing countries like Barbados and others have had to expose themselves to the brunt of WTO policies, EPAs and all, by dismantling national trade boundaries.
Where is the logic?
Where is the equity?
If the USA moves ahead with its Buy American program will it trigger a response by world nations? If there is a response by world nations will it threaten the concept of free market as the USA has practiced?
The impact of the global crisis is beginning to take root in Barbados as pre-bookings promising tourist dollars for the treasury dwindle. BU family member Bush Tea has been consistent in his cry for LEADERSHIP to be demonstrated to lead and sustain Barbados morally and economically. The current global economic crisis which will present the sternest test for Prime Minister Thompson does not remove the pre-existing requirement to effectively manage the day to day business of government.
It is against the foregoing that BU joins with others who are asking Prime Minister David Thompson to detail the economic plan which is to be rolled out to cushion the impact of the global financial crisis on Barbados. A national debate on such a plan is important to invite the opportunity to fine-tune such a plan. The BU household believes that that the signs are very visible that a structured response is warranted, the time has come to LEAD. From the snippets we have had from Prime Minister Thompson it seems that he will be going the route of expanding government spending i.e. reflation. The economists say that there is always a lag effect when economic initiatives are rolled-out.
Is the Prime Minister waiting to introduce the measures in his early budget presentation?
Prime Minister Thompson has done an excellent job so far to engage Barbadians on the issues compared to his predecessor. However, on the issue of a Barbados economic stimulus package many Barbadians are concerned and fearful that we may have gotten the timing all wrong.
What are the areas of the economy that are retracting or are set to retract as a result of the global economy, and that would need government initiated sitmulation?
Where would the money come from? The US feds are stimulating the US monetary sytstem (printing money) and this will have more of an affect than the current 900 billion stimulant package. Can the GoB print money? credit is a global issue, our reserves and the NIS cannot sustain any significant draw down, where is the money going to come from? Tourism reciepts are likely to suffer, Remittances will also. American cities with the population size much larger than the island of Barbados are facing bankruptcy because they can’t print money and do not have the resources to keep things the way they are, and their locol unions do not want to cooperate. NY city just told the Unions to work with them or face 20,000 job cuts. The City of Vallejo in California filed for Bankruptcy in 2008. What are the options facing Barbados, should this credit crisis continue? Can we continue at current wages, and levels of employment, honor existing wage agreements with the unions etc?
@Adrian H
May your friend LivinginBarbados can answer better that we can but Barbados has always run a small budget deficit but the PM has previously stated the government will be running a deficit this financial period.
Also remember Barbados has a healthy foreign reserve. A couple months ago the Governor of the Central Bank suggested that Barbados external rating is excellent and the government intended to go to the capital market to pad its position. Also she indicated that the local banking system is still very liquid so watch out for the government to soak it all up by bonds and debentures.
Ok David I forgot that deficit spending is not against the law in Barbados as it is in many cities in the US. But deficits can hurt bond ratings not? And that can hurt your chances in the capital markets no? But aren’t the capital markets at near lock down becuase of fear of what lurks on the balance sheet of consumers, companies, corporations and Countries? I am not sure how debentures work, but would it not require a willing citizenry both public and corporate to BUY the Debentures? I wouldn’t want to attempt to stimulate the economy with my reserves. no way.
Haven’t seem much in the form of solutions from LivingInBarbados, todate he is very detail on explaining a lot of the economic jargon, and critiquing others points of view, but solutions? and or approaches in dealing with this issue? not much.
SEC Officials Can’t Find Their Own Backsides: Lawmaker
Rep. Gary Ackerman (D-N.Y.) attacked SEC officials testifying before the House Financial Services committee for failing to detect Bernie Madoff’s $50 billion Ponzi scheme on Wednesday.
“What the heck went on? Your mission, you said, was to protect investors and detect fraud quickly,” he said. “You couldn’t find your backside with two hands if the lights were on.”
http://www.cnbc.com/id/29017683
Believe it or not Antigua and St. Vincent have announced stimulus packages:-)
i suggest bring back owen arthur!!!!
Miller i agree with yourself…thats the first best thing anybody has said on this…..
Dear crocs:
Why don’t you you go jump back in your swamp?
Owen Arthur made a lot of mistakes but he still has currency, with the people. Mia has none. A BLP under her isn’t likely to recapture power.