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Belt-tightening ‘not the answer’

TIM SLINGER, [email protected]

Belt-tightening ‘not the answer’

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ECONOMIST Professor Michael Howard has rejected the Central Bank’s suggestion that additional belt-tightening measures could significantly reduce Barbados’ fiscal deficit or raise the level of foreign reserves.

Acting Central Bank Governor Cleviston Haynes, in his first press conference on the economy on Tuesday, indicated that Barbadians would have to undergo tough measures after Minister of Finance Chris Sinckler delivers the upcoming Budget.

But in response, Howard told the DAILY NATION yesterday: “If belt-tightening policies have not achieved any significant results over the last nine years, how will they miraculously do so in 2017 and beyond?”

He added: “The crux of the problem facing the present Barbadian Government is their efforts to maintain an unsustainable social welfare model and a large public sector which does not earn foreign exchange or profits or enhance productivity.” (TS)

Please read the full story in today’s Daily Nation, or in the eNATION edition.