(Barbados Nation) A nine-point strategy aimed at bolstering Barbados’ economy and returning real gross domestic product (GDP) growth to the annual average rate of 3.0 per cent by 2012, is to be implemented soon.
Prime Minister David Thompson, in outlining the medium-term fiscal strategy at the Barbados Chamber of Commerce and Industry’s luncheon at Hilton Barbados on Monday, said it would broadly seek to help in the country’s transition from economic crisis to recovery; to turn the page on an era of expanding fiscal deficits; and to adopt a set of policies, parameters, regulations and reforms to meet the needs of the 21st century global economy.
Noting that this 2010-2014 strategy had already been reviewed by Cabinet and would be rolled out by the ministries of finance and economic affairs, he said 2010 would feature “a new departure for Barbados’ economy”.
Specific objectives of the plan were to:
– put Barbados’ public finances back on a sustainable footing;
– ensure that a balanced budget is obtained by 2014 – 15 followed by a small fiscal surplus by 2015-2016;
– reduce central government’s debt to GDP ratio to near 70 per cent by 2017-18;
– maintain an investment grade rating for Barbados;
– provide a stable fiscal framework that will enable the Government to better achieve national goals and development;
– maintain macro-economic stability through sustainable management of the fiscal deficit and debt;
– increase productivity and international competitiveness;
– return real GDP growth to the sustainable annual average rate of about 3.0 per cent by 2012; and
– ensure that Government’s social policy enhances the social welfare, well-being and quality of life of citizens, particularly the most vulnerable people and sectors in the society.
Noting that the strategy would be part of a much broader medium-term development one for 2010 to 2014, he said the overall framework would represent the blueprint for growth and development over the next five years.
To this end, the Prime Minister said, Government would indentify new areas of growth that would generate employment, such as the cultural industries; provide incentives to empower new and existing small and medium-sized enterprises mainly via 40 per cent of Govern-ment’s procurement of goods and services; prioritise a new and genuine production enterprise culture in Barbados and entrepreneurship to enhance the country’s potential to be an export leader; and strengthen linkages between tourism and other sectors in an effort to bolster economic growth.
“This strategy has to be a series of reforms that signal change in the way we do business, the way we work, the way we think, the rewards we get and the effort we make. As [United States President] Barack Obama said during his campaign, ‘change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek’,” he told business executives, public sector officials and technocrats who packed the conference room.
“These reforms are needed now, and we are the ones who have to effect the change,” he added.