
By Tony Best
Things
haven’t gone as new Caribbean governments had expected when they took
office.
Some had promised the electorate a new economic day, growth in
employment and transparency in managing the economic.
But a continued slowdown in the United States and an economic nosedive
in the United Kingdom have resulted in declining numbers of tourists;
high energy prices are turning the balance of payments into a sea of red
ink; escalating food prices are taking their toll on the pocketbooks of
consumers in every country, including energy rich Trinidad and Tobago;
and the new administration which have taken office in the last 18
months, from St. Lucia, Jamaica and the Bahamas to Barbados, Belize and
Grenada have to contend with higher than projected deficits.
What has gone wrong?
“The global economy is the culprit, so to speak,” says Byron Blake, a
former Assistant Secretary of Caricom and for years the Caribbean
Community Ssecretariat’s top economist. “The result has been tough times
for Governments in the Caribbean and for the people they represent.
Undoubtedly, things will get tougher.”
Hence, the question: were the recent general elections which saw new
Governments and leaders come to office in almost half of Caricom,
elections that political parties in the opposition would have been
better off losing? Asked another way, were the recent polls elections to
lose?
When that question was put to David Thompson, who came to office in
January after his Democratic Labor Party soundly defeated a seemingly
entrenched Barbados Labor Party by 20-10 seats in parliament, he
rejected the notion that the January 15th election in Barbados wasn’t
the one to capture the Government.
“Political parties, we certainly in the Democratic Labor Party go into
elections to win, not to lose,” he said in New York where the question
was posed.
Blake, now Antigua & Barbuda’s Deputy Permanent Representative to the
United Nations in New York isn’t as sure as Thompson that the years
2007, 2008 and even 2009 were and are times to win elections?
Why?
“Given the economic climate in the Caribbean, I would imagine that those
(political parties) that have lost governments are very happy, because
they would look now like they were geniuses,” he told the Carib News the
other day. “The truth is that the new Governments are going to come
under tremendous, tremendous pressure and many of them would have made
promises that they are not going to be able to fulfill, through no fault
of theirs. It’s just that the circumstances have moved against the
region and have moved against the world in a way that would make it
tough and those who lost power are not going to make it easier for the
new Governments. They are not going to ease up.”
In other words, they are going to blame the new administrations for the
state of the economy in the respective countries.
“They will want to put the blame on the guys who have just come in,”
said Blake. “Realistically, there is not much that the new people can
do.”
But there is another school of thought on this issue and it is that if
new ruling parties criticized the former Governments for everything that
went wrong in prior years, then the new Prime Ministers and their
cabinet ministers must also expect similar treatment now that they are
in charge.
After all, argue critics and independent analysts alike, what’s good for
the goose is just as good for the gander and if the political parties
knew that much of what was happening at home could be traced to external
economic conditions but still held the governments up to public
ridicule, thereby causing a loss of public support, they shouldn’t
expect a soft landing now that the tables have turned and they are n
charge.
For instance, critics assert, the then opposition parties should have
known that oil prices were going through the roof; that the U.S. economy
was heading for a recession; inflation was galloping ahead at a quick
pace; and that unemployment in all of the countries, with the exception
of Trinidad and Tobago would rise. Yet, they went full steam ahead and
committed themselves to planks in their platforms that would be
extremely difficult if not impossible to implement.
But as Dr. Denzil Douglas, St. Kitts-Nevis’ Prime Minister, who will be
going later this year or in 2009 for his St. Kitts Labor Party’s fourth
consecutive term in office and as Thompson in Barbados insisted, parties
go into elections to win, not to lose and they do whatever it takes to
gain the favor of the electorate. And once in office, they can take the
necessary action to keep the political tigers at bay.
Blake contends there are some economic and political realities new
Governments and their leaders must face.
And high on that list is the fact that pragmatic economic policies are
required and that in turn should lead to Governments that can’t pad the
public payroll with new employees.
“To hold the budget line, Governments can’t do their usual amount of
employment in the public sector and in most of our cases the Government
is the main employer,” he said. “Once you recognize that you are bound
to have difficult times ahead.”
Even before Blake articulated his assessment of what may be ahead for
the region, including Barbados, Jamaica, Grenada, Belize, the Bahamas
and St. Lucia, countries that changed Governments, fully expecting
brighter days, Standard & Poor’s, the Wall Street credit rating giant
which monitors the economies of a host of Caricom countries said two
things: harder days are in store for the region and the economic
problems which most Governments face these days were not homemade but
were imported from the U.S., the U.K. and Europe.
Exactly four weeks before the government changed in Bridgetown and
several months ahead of the emergence of Dean Barrow as the new leader
of Belize and at least half year before Tillman Thomas succeeded Dr.
Keith Mitchell as Grenada’s Prime Minister, the Economist magazine
warned that the days of “cheap food” were numbered around the world.
“Rising incomes in Asia and ethanol subsidies in America have put an end
to a long era of falling food prices,” was the way it put it. But the
Economist didn’t give politicians a pass.
It blamed them for creating most, if not all of the problems in the
first place, especially those in the United States.
As it saw it, the rise in food prices was “self-inflicted result of
American policies. Just as important, Governments and politicians could
do something to solve the problems, it insisted.
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