Respostas para a crise in Barbados Advocate 28 Abri

Rescue plan 4/28/2009 By Katrinah Best MINISTER of Econo-mic Affairs, Empower-ment, Innovation, Trade, Industry and Commerce, Dr. David Estwick, has outlined an extensive action plan which puts Government at the helm of steering Barbados out of troubled waters and called on the public to position themselves as part of the response plan. This past Sunday’s Democratic Labour Party St. Peter branch meeting allowed Estwick to communicate the far-reaching policies. The package of recovery was defined as serving the desperate need to “hold Barbados together” with an early warning automated system put at the forefront of predicting the effects of recession. “What I want this evening is to be brutally honest with you. I want not to frighten you, but I think that if we are to come out of the next budget with a Barbados which is not going to be one with significant unemployment... it is important to get your country to buy in, to understand what the challenges are so you can marshal yourself to deal with the challenges,” he stressed. A set of operational responses were indicated, driven by the Prime Minister and comprising a Cabinet Economic Committee, which Est-wick chairs; and a Council of Economic Advisors made up of eminent professionals in the area of economics. The main features of the plan include the maintenance of employment; sustenance of the private sector through spending and concessions; and the protection of the balance of payments. Further government spending was stated as necessary for stimulating economic activity. A housing programme, as well as further spending on school buildings, were described as part of that schedule with enhanced renovations indicated for Harrison College and the Lodge School.  “This is Government spending money trying to keep the Barbados economy afloat so we would not lose as many jobs, [a problem] which is now crippling the United States and other countries within the region,” Estwick explained. Thus far, US $150 million has been borrowed with a view to tapping into the sustainable liquidity fund to the tune of anywhere between $300–400 million in the event that the balance of payments position requires further assistance.  Cognisant that additional borrowing and spending may worsen the fiscal deficit, Minister Estwick explained that Government had already identified that it could expand its expenditure by a maximum of $150–200 million. Spending is already close to that limit. Praise was given with regard to the innovative ideas of the economists trusted to carry the country forward and limit the impact of the economic difficulties. However, of great concern to the Minister is the fact that Barbadians continue to conduct their financial affairs based on a cycle of credit with the means falling far from the standard of living being sought. This, he saw as responsible for the US financial crisis and once Barbadians are pulled out of recession, he deemed it absolutely necessary for them to re-consider those ways of living and to demonstrate greater prudence with their spending and borrowing habits