

by TONY BEST
BARBADOS is not in dreadful economic straights even though its rating outlook has changed, says Olga Kalinina, Standard & Poor's (S&P) credit analyst.
While unemployment is on the rise, the fiscal deficit is widening and there is a decline in economic activity, Kalinina, who monitors Barbados and most of the Caribbean for the credit rating giant, said the island's economic picture wasn't ominous by any means.
"The situation is not dire. From the rating you can see that the rating remains in the investment grade category, and that is one definition of not being dire. More than that, the rating itself has not been lowered. We simply changed the outlook on the rating, simply signalling that the risks to the credit rating are increasing," she told the DAILY NATION.
However, Kalinina was quick to add that the David Thompson administration must become more proactive in grappling with the economic situation in the country, especially the fiscal deficit, and it was the delay in outlining its counter-cyclical policies that was causing the most problems.
"Timeliness in the action of the Government in dealing with the situation is important and the risks are increasing for a downgrade of the credit rating," Kalinina said yesterday from her Wall Street office. "We do understand that the Government is working on a medium-term programme. We do understand that the Government has shown the discipline and the commitment to reverse the fiscal expansion and correct the problem. It is taking the Government nowadays much longer (than expected).
"Admittedly, it is a very difficult situation but we don't see the Government as pro-active and we see the risks increasing. We needed the highlight the risks, just to show that the balance is shifting somewhat."
Barbados has a BBB credit rating but S&P last Friday changed the outlook from stable to negative. Earlier this year, S&P downgraded the rating from BBB+ to BBB. Barbados is among four Caribbean countries with an investment grade rating, the others being Trinidad and Tobago, The Bahamas and Montserrat.
In announcing its action, S&P said it expected the Barbados economy to contract by 4.8 per cent, about twice the original forecast of 2.5 per cent it had made earlier this year. It expects the economy to decline by at least one per cent in 2010 but any reversal of fortunes would probably occur in the second half of next, Kalinina said.
NOT INTEREST IN YOUR DINNER OR LUNCH : 11/22/2009
OH please ease off the DLP popagranda. I will gave some facts here that help retarted local economic growth in the last 2 years.
1. INCREASE Taxation on business, land, Prfessional fee, and transportation in 2008: those thing help jack u the cost of doing business here........................................
2.Ending the explanation of the ABC HIGH WAY, WHICH KILL OFf A SIGNIFICANT local ECONOMIC Engine drive, ......................
3 ENDING SUBSIDES ON OIL, FLOUR AND ANIMAL FEED, RESULTs = Local cost of food production when up in 2008, then water by 60 % in 2009
4. Lack of proactive Tourism policy i.e encouraging airlift mainatinace with a similar BLP post 9/11 proggramme which worked well.bUT NO,THE result off not do it HAS BEEN,= increased lay off and short time employment for workers in the tourism sector., The prime minister Thompson has failed to provide numbers as to how many hotels applied to the tourism sector fincanical loans scheme, which indicate that the programme structure and content was not found to be attracttive to many of the hotels and restaurts owners....5 fAILURE OF THIS DLP GOVERNMENT TO IMPLYMENT A MARCO ECONOMIC STIMILUS PROGGRAMME IN MID TO LATE 2008,
SOME NOW THIS dlP GOVERNMENT BELIeVES THAT BUILDING TWO 10 STORY BUILDINGs AND TWO ROUND ABOUT WOULD QUAILIFILE AS STIMULUS PACKAGES
How laughable. LOL
THE THING IS THE BRIHISH economy is report( sept 2009 as still in recession , which means our major tourism market will be in the simalar region of arrival as last year.
If the BLP was in power, none ot this nonsense that this DLP government is doing , like waiting and seeing , would be happening.
look on CBC, thOMPSON WAS INCAPABLE OF GAVING JUST HOW MUCH tourism NUMBERS were said to have increase since jet blue came along, Some how, REALITY OF DOING airline BUSINESS IN IN THE REGION WILL hit jet blue some time next year. THE BLP BETTER FOR BARBADOS . dlp ALWAYS RETARTING BARBADOS SINCE ERROL BARROW HAS PASSED AWAY.
VOTE BLP in 2013 or Earlier
I WON'T BE SUPPORTING THIS dlp goverment, so do ask or expect it, Barbados has a better team right there in the waiting(THE BLP)CORRECT THE CHANGE AND
VOTE BLP NEXT TIME AROUND
My Dinner : 11/22/2009
Last Friday I had one serving of green vegetables, one serving of sweet potatoes
and one serving of egg salad for dinner. I did not eat all of the sweet potatoes and I put it in the fridge. I was able to eat the potatoe on 2 occasions as desert. I know that we were taught to throw-away - We can live healthier lives if we eat less, grow our food and dig in the dirt, and love our neighbors.
Hate and unforgiveness are causing many of us to spend much time at the Doctor.
Dont Blame DLP : 11/21/2009
It is mind boggleing with an world financial crisis the likes of which we have never seen before that reckless BLp members and supporters would want to blame this on David Thompson and the DLP. Additionally the defecit was one inherited from the BLP and was not created by this administration. The patriotic thing to do would be rally behind the government, band together with our government and let us see how we can improve our lot. Thank God for a sir Lloyd when we faced a major challenge in the past that made tough decisions and provided a good platform from which owen can govern. Now thank God that in these tough times we are blessed with a visionary prime minister who truly cares about the country and its citizens. let us rally behind him and our great country and put politics aside as we work our way through this world financial crisis.
Be Fair : 11/20/2009
I find it very difficult to believe that anyone can find a positive correlation between the DLP and having to apply economic adjustments. Let us be absolutely fair and transparent. In 1991 their was a recession and presently there is also a world wide recession. BIM is pegged to the USA dollar so it stands to reason that as a lagging economy that is pegged to the US currency there is only but so much that BIM can be insulated from the present economic environment. I will admit that the manner in which the two parties might navigate through this period might be different but that does not take away from the existing world wide necessity to find ways to manage.
The DLP could not have been all bad, if they were BIM could not see prosperity after 1991 under any administration, an economy can be destroyed in months but is can take years to rebuild. The other thing is that we do not know what a new administration inherits from the last one.
I anit surprise : 11/19/2009
Well,Well,well, Look at that, S&P saying the same very THING that the BLP has been telling this CONFOUNDED dlp GOVERNMENT to do all aLong.And I reading about some one telling us to tighen our Belts?, HA HAHA HAH A oh ohohHha hahha ha
Nope , I anit doing that. To all those dlp govermentt supporters. Nope, I AM Not doing it,EVERY single Time These dlps get power it the same thing over and over again, Tighten your Belt, just like 91 , bAJANS WERE SUPER ERROROUS TO VOTE THEM IN, noW LOOK AT how THINGS are?, I anit tighen Nothing,.;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;Ifd you want the good nice day of strong economic grow to return, then its clear now just which party has the brains and skill to do it, THE BLP. SO next time you all now know what to do, VOTE OUT THIS INCOMPETENT DLP GOVERNMENT and return The Barbados lABOUR PARTY TO POWER. SIMPLE, ;;;;;;;;;;;;;;;;;;;;;;;;;;;;we have all now seen the CHANGE and now WE know what it is. So It Is time now TO CORRECT THE CHANGE.
VOTE IN THE BLP Next Election
Use our leverage : 11/19/2009
I completely agree with the idea that each and everyone could do something to help the economic situation, however I believe that the time has past where subsistence agriculture could even come close to addressing the global economic issues. I personally think that the way forward consist of utilizing the strengths that Barbados has and adding a few twist to them. I am referring to ideas such as health tourism, eco-tourism, developing a world class (accredited) culinary art school etc. I am suggesting that our tourism and education equity could be leveraged to help deal with the present and future challenges.
THEY ARE ALL CLUELESS : 11/18/2009
i am a bajan living in the usa ,in 2004 i sent out letters and emails to just about every congressman ,senator ,oprah ,all the news stations trying to beg them to help the lowerclass working people .I tried to warn them this was going to happen no one cared 5 years later here we are .
Island people we all seen hard times before much harder than these times but we made it and we improved .Why we had the help of our friends ,neighbours ,grandparents ,parents ,sister ,brother .You get my point we all help each other to get better .Although we had our problems at times we still were always there for each other .Unfortunately the american do not live like this and this is where the problem stem from .Its every man for himself families cutting up one another .Unfortunately we as island people are loosing our culture the one thing that seperate us for others ,the things that made us better we have grown from it .Unless we get back to our roots the worst is yet to come .So i beg you as a bajan - lucian who loves my culture please get get back to our roots .
: 11/18/2009
Maybe S&P are only good at understanding the economic situation of small countries with little fragile economies. It is only from a small country that they guage its standard towards determining its economic out look. After all Standards and Poor is their name.
Cut back : 11/17/2009
I don't want to hear from all these experts.
Barbados can make it if every body tighten there belts.Every one could do something to help. Grow a little garden around you house.
Keep four chickens in the back yard.Keep the import bill down. Cut back on driving up and down unnecessarily.Car pool you have ten people in a house and every body have a car. Car pooling would save you gas.Watch what you eat.Eat in more than out.Cut back on everything. We had hard times before and this is what we had to do,and we made it.
Rating : 11/17/2009
A word to the wise is sufficient. Abusing the messenger is certainly not a sign of wisdom!
S&Ps : 11/17/2009
Brampton and BajanB are so right. If you examine how S&P earns its monies and from whom, alot of things would be clearer. S&Ps assume the same fundamentals for the entire Caribbean, ignoring differences or management approaches. How much time do you think our 'country analyst' spends examining our structure, or indeed any of the other Caribbean countries. It's about time that an alternative is developed.
Not all gloom : 11/17/2009
What do they know? They could not see the collapse of Enron, Worldcom,Lehman Brothers, Bear Stern, Citigroup,etc. They should stop with the predictions and prognosis they make.
Be very careful : 11/17/2009
The S&P was one of the credit rating agencies that give the derivative related to the sum-prime housing market in the U.S a clean bill of health. Time has manifested that those investments were not only risky but just plain bad. S& P either did not understand the nature of those derivatives or did nor evaluate them properly. The point that I am making is that by no means does the credit rating agencies have all the answers but unfortunately they seem to be the gatekeepers between the government and the capital markets. The price of them being wrong could be so very serious for BIM.
Standard & Poors Rating : 11/17/2009
It's truly amazing how these so called experts stand in their offices in Wall Street and make these predictions,the US economy was sliding for years and nothing was mentioned by them,yet they put out these reports ever so often,frightening the folks back home,they need to leave their ivory towers & come to see how the other half lives.Right now most of the states are in dep financial trouble,what is S&P saying.It is those folks on Wall Street that has the world economy in the state that it is.
Ponga-Brooklyn.




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