IMF blueprint

blp prepared to follow Washington model, Mascoll suggests

If the Opposition Barbados Labour Party’s (BLP) economic advisor Dr Clyde Mascoll had his way, Barbados would not be subjected to a full-blown International Monetary Fund (IMF) financing arrangement at this stage.

However, a very cautious Mascoll said today he was prepared to follow an IMF blueprint in terms of crafting an appropriate “homegrown” economic solution for the island.

“I am suggesting that the IMF model can be used. This model here, as a model to measure economic progress,” Mascoll said while pointing to an economic equation he said was not widely used but could be effective during a presentation at the Cave Hill Campus of the University of the West Indies on the topic Which Way Out? Homegrown Strategy or IMF Plan.

Opposition economic advisor Clyde Mascoll (left) in discussion with Troy Lorde (centre), senior lecturer in Economics at the University of the West Indies, Cave Hill, and Professor of Economics Nlandu Mamingi (right).

While rejecting the current homegrown fiscal strategy of the Freundel Stuart administration as an abysmal failure, Mascoll was adamant that “we can do something about finding an economic plan for Barbados.

“You need first of all to establish structural relationships in the economy, between the fiscal deficit, the investment gap and all the liquidity issues here in order, first of all, to be able to analyze the influence of increasing tax [and] increase in expenditure,” the economist said, while warning that without such an understanding “we are going to run aground and that it is precisely what is happening [now].

“So it has to be a much bigger issue than what we have been treating to. We have seen only the issue and not tried to understand the relationships,” he stressed.

With Government currently struggling with a six per cent deficit and a massive overall debt of about 140 per cent of gross domestic product, there have been several calls for various quarters for Government to enter into a formal programme with the IMF.

There have also been several warnings, including those of former Prime Minister Owen Arthur that given Government’s slim financing options and failed or slow fiscal policies, an IMF programme may be inevitable, even though the ruling Democratic Labour Party (DLP) administration, whose current five-year electoral term expires next year, has been very reluctant to heed any such advice.

However, Mascoll, who is a key advisor to the Mia Mottley-led Opposition and a former BLP political candidate, today stayed clear of making any such commitment, even though he appeared quite more than willing to borrow freely from the advice of the Washington-based fund.

While stressing that Government’s medium-term fiscal strategies had failed, he pointed to some “unintended consequences” such as “persistently large current account deficits, galloping Government debt and excessive printing of money and little or no growth.

“So going forward I am hoping therefore that we could have a homegrown economic plan . . . that can work,” the Opposition spokesman said.

“You cannot have a fiscal strategy alone because there are other agents in the economy – households, businesses. Government cannot focus on itself and itself alone,” he cautioned, while accusing Government of only focusing too heavily on taxation as a means of raising revenue.

marlonmadden@barbadostoday.bb

18 Responses to IMF blueprint

  1. Milli Watt October 27, 2017 at 10:56 pm

    three the hard way……..got no words for this pic, well maybe that i am a bit worried.

    Reply
  2. Ras October 28, 2017 at 1:21 am

    Sounds like Mallett taking DLP homegrown fiscal strategy and fine tuning it

    Reply
  3. Saga Boy October 28, 2017 at 2:29 am

    He stopping short of saying full blown because he knows the IMF wants the number of workers in the public sector reduced significantly. To say full blown would be to say send them home and privatize some of the entities like Transport Board.

    Reply
  4. archy perch October 28, 2017 at 4:17 am

    My ass cold think bajans stupid. What kind of double talk is he using? He is prepared to follow an IMF blueprint which is home-grown. Huh??? Would that be the answer to our economic woes?
    The answer to our many problems is for those BLP supporters – the private sector- to pay-up the Vat money owed, and cut their nonsense out.
    900 million which Charles Herbert NEVER talks about. My good friend – the actuary – can talk alot about the NIS, but not one word about how this VAT money could pull Barbados out of its financial situation.
    PARASITES!

    Reply
  5. Carson C Cadogan October 28, 2017 at 7:09 am

    The crooked Barbados Labour Party keep criticising the Govt. but they have no credible alternatives.

    The best they can offer is to borrow and attempt to fine tune The Govt. home grown financial policies.

    They are now belatedly admitting what the Govt. has been saying all along, that Barbados is more than an economy, it is a society and solutions to our financial challenges must be multi faceted and not financial alone as the Barbados Labour Party has been pushing. Wholesale privatisation is not the answer as being advocated by the private sector. Destruction of the social services is not the answer. A few days ago the IMF suggested to the Jamaica Govt. that they have to lay off public sector workers and use the savings on public sector payroll for other purposes. Are we prepared to do such here in Barbados?

    Don’t fool yourselves, any IMF program will be very painful for Barbados and Bajans. And we will be in any IMF program for the next 40 years.

    I am not prepared to support that and impose such suffering on our children and grandchildren.

    Reply
  6. Carson C Cadogan October 28, 2017 at 7:31 am

    The problem with Barbados is the fact that it is living above its means. A country with no natural resources and is almost totally import driven.

    An export oriented country is not on any one’s agenda. With the exception of Tourism, rum exports, and the financial services sectors fuelling foreign exchange generation, the private sector in Barbados is basically a buy and sell private sector. Gobbling up huge amounts of foreign exchange to pay for imports and earning not a single dollar of foreign exchange. Hence when foreign exchange levels fall below a certain amount in Barbados, there is general pandemonium in Barbados within our buy and sell private sector as we are witnessing right now. So every 15 years or so we will find our selves in this situation.

    Also we have the mistaken belief that we can borrow our way to prosperity. Borrow to sure up foreign exchange reserves, to finance capital works projects, etc., etc. This can not go on forever. But no one seems to notice this.

    Just kick the can further down the road.

    Reply
    • Oliver Smith October 28, 2017 at 7:40 am

      So what did you do to restructure the economy? Oh wait I forgot you ruined it.

      Reply
      • Carson C Cadogan October 28, 2017 at 7:50 am

        In what way?

        Reply
  7. Lee October 28, 2017 at 8:24 am

    It seems that Dr Mascoll hasn’t seen the tsunami on the horizon either. The ocean of credibility that once caressed our balmy shores has drawn back, and he is dreaming of structural reform? It’s time to head for higher ground !! Stronger coasts than Barbados have been flattened by homegrown structuralist dallying.

    Reply
  8. Vad50 October 28, 2017 at 8:57 am

    Recommending that you take a look at the destruction of Africa by the IMF. The richest continent of natural resources in the world. The IMF do not give a damn about Barbados or its citizens. It is an institution set up to keep what they called third world countries poor. As far as the former colonists go, no country that was the product of slaves should prosper. Barbadians of African descent need to get into entrepreneurship, begin business that will benefit Barbadians of African Descent. And Barbadians of African Descent need to begin supporting those businesses.
    In my opinion, the IMF is a modern day slave master.
    Start taking an inventory of who owns the businesses in Barbados and see who is prospering off of Barbadians of African Descent. That is all I have to say on this matter.

    Reply
    • Carson C Cadogan October 28, 2017 at 9:04 am

      Well said.

      I don’t understand how BLACK Bajans don’t see this. Holding hands with the Mongoose and marching down Broad Street, what could be worse?

      Reply
      • Big man October 28, 2017 at 9:23 am

        Easy Carson Easy killer Bees in here
        Bajans not 100% literate anymore
        I saw the 20,000 being led blindly like sheep to the slaughter by the BWU holding a Plantation owner hand marching up Broad St. and the Stores owner’s laughing at them and saying looka thee Black Cattle, we got them good now.

        Reply
  9. Big man October 28, 2017 at 9:14 am

    Is this the best the want to be Governor of the Central Bank can do
    Take the DLP homegrown fiscal strategy and go through it with a fine tooth comb and make changes to it and call it his own
    Copy Cat
    No new Ideas, clue less, just power hungry and looking for a job of importance

    Reply
  10. Milli Watt October 28, 2017 at 9:35 am

    this election going be bruising

    Reply
  11. Ras October 28, 2017 at 11:32 am

    BLP pulling the Wool over bajans eyes so they can’t see that we will be taken back to Slavery by the Plantation owners the BWU and Merchant class.
    BWU Gen Secretary could not march with Mia as they are BLP and DLP members in the Union but could hold hands with a Plantation Owner and march up Broad Street the seat of the Merchant class making mock sport at the workers in this country.

    Dwayne Paul should be the BWU Gen. Secretary hope the members make this know sooner than later.

    Reply
  12. Ossie Moore October 28, 2017 at 1:42 pm

    Now here what the problem is my dear good people!! Barbados is now likened to a fifty one year old man whose house needs repairs, his furniture is broken and bathroom water is not flowing. His hair is nappy and fullof hair lice, and Lord mek peace, his toe nails are a hotel of chiggas. Please call N. Moore’s

    Reply
  13. Alex Alleyne October 28, 2017 at 2:21 pm

    Wait , he still alive ?, he is an “outsider” in the BLP so he is being treated like a “boy-in-the-yard”.

    Reply
  14. Jus me October 29, 2017 at 7:46 am

    Well we a D mockery.
    We A joke!
    We have freedom.of speach as long as what we say don mean jack sh**
    50percent people say DLP is Crooks
    En
    50 per cent say.BLP is Crooks.
    Niether will admit being wrong.
    So I guess we have a pretty solid Concensus.that

    100 per cents.of Politicians IS CROOKED in we Country.
    Agreed!!?

    Reply

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