The following article by Economist Ryan Straughn has been making the rounds in Barbados and is the source of robust debate because it highlights the perilous state of the Barbados economy. This week the hierarchy of the Caribbean Development Bank also noted concerns about the weight of debt which many Caribbean islands are presently burdened. We did not reach the current state in the last five years. Our consumption behaviour which is fed by two fickle economic drivers, tourism and foreign direct investment, will do it every time.
Dispelling Political Myths with Economic Facts
I wish to state at the outset as emphatically as I possibly could, that in a very, very, very small open economy (like Barbados) and in a very, very, very small open society (like Barbados) it is imperative that government’s current revenue always exceed its current expenditure in order to protect the social democracy to which we’ve become accustomed.
I sat down to write this article last week and got sidetracked with more pressing matters and so decided to finish it on reading Tony Best’s column in the Sunday Sun of February 3, 2013. The article shared the concerns of Charlie Skeete another Barbadian economist which are indeed very similar to mine. Elections have been called in Barbados for February 21, 2013 and the campaign has truly begun in earnest. As an economist, I eagerly wait to hear specifics from both the Barbados Labour Party and the Democratic Labour Party on how they are going to deal with the small matter of the public finances.
Read full article @Barbados Economic Society Blog