Ruling Regime of Barbados, DLP Just Pushing up National Debt But Nothing To Show For It {Devil’s Advocate #8}

According to Reudon Eversley’s version of the facts, the national debt doubled from $2.5 billion to $6 billion between 1994 and January 2008. This is simply not accurate. And as Director of News at CBC, Eversley really ought not to have made such an in-excusable blunder. So what was he attempting?

Sen. D'Arcy Boyce's address on TV the other night was almost saying if you dare question state of the economy, then you don't love Barbados

Sen. D'Arcy Boyce's address on TV the other night was almost saying if you dare question state of the economy, then you don't love Barbados

When one turns to page 72 of the Central Bank’ Economic and Financial Statistics (data) – you’ll discover in 1994 the National Debt stood at: $2,498.0 billion and by the end of 2007 it was $5,704.9 billion – an increase of $3,206.9 billion in 13 years or an average increase of $246.7 million per year.

What is surprising is that neither Eversley nor Darcy Boyce bothered to tell Barbadians that the DLP increased the debt by a whopping $1.8 billion in 2 ¼ years. At the end of March 2010 – according to the public record, the national debt was $7,573.3 billion, up from $5, 704.9 in 2007 or $1.868.4 billion at an average increase of $830.4 million a year.

But that is not all!

There is also a plan in the DLP’s 2010-2011 Estimate to borrow a further $1, 422, 367, 089. What does that mean? When added to the $1.8 billion it has already borrowed in 2 ¼ years, by the end of this Financial Year, which will be 3 ¼ years the DLP has been in office – it would have increased the national debt by an alarming $3.290.8 billion dollars or an average of $1,012.5 million per year.

Imagine, in 13 years, the Barbados Labour Party increased the national debt by $3.2 billion with a lot to show – including the Hilton, the airport, the sea port, the board walk and so on, whereas in a mere 3 ¼ years, the DLP will increase the national debt by an alarming $3.2 billion but with absolutely nothing to show.

The Devil's Advocate allows Barbadians to feely express their concerns w/o fear of reprisal and this Civil Servant's view is that her Senator has not addressed Barbados' issue of debt in the correct context

The Devil's Advocate allows Barbadians to feely express their concerns w/o fear of reprisal and this Civil Servant's view is that her Senator has not addressed Barbados' issue of debt in the correct context

Perhaps recognising that countries like Barbados have development needs – in 1967 Mr. Barrow spoke positively about incurring debt to build productive capacity as the BLP did when it was in office but he was highly critical of borrowing to pay bill or to finance consumption – as the DLP is doing, as a result of its incompetence and dangerous mismanagement of the Barbados economy.

What elbow room? Had the DLP had access to more money, it would simply have been far more reckless than it has been since January 2008 with its vote-catching entitlement programmes. Secondly, a country’s attractiveness depends on it credit rating and the confidence which investors and agencies like Standard & Poor’s and Moody’s has in it ability to manage the economy.

It is why the DLP is nervous. It knows that Foreign Direct Investment (FDI) has literally vanished, while Rating Agencies have already sent it stern warning signal.

Now with Clico posing such a serious threat to the Barbados economy – the DLP seems to be backing off commitments already given policy holders. Seems like the DLP is now telling policy holders of Clico that they should have foreseen the risk. More on that later!

Listen to the attached audio extract and you will begin to understand why the Barbados economy is in crisis. {CLICK ON FOLLOWING LINK FOR FULL AUDIO}

Reudon Eversley & Darcy Boyce get it dead wrong on National Debt (July 29, 2010)

3 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

  1. hi, damn good commentary in your post, I love that damn incisiveness, I need to know if is true about estwick & darcy?

  2. Acid thoughts here. Are you sure it’s the only way? My own personalized experience is the fact that we need to essentially dwell on the matter and enable dwelling simply because what 1 person thinks just — another particular person merely won’t. Human beings are heading to accomplish what they want to do. Inside end, they usually do. The most we can hope for is to set up a few issues the following and there that hopefully, enables them for making just a little greater informed selection. Otherwise, excellent post. You’re absolutely generating mega hits, I imagine?

Pingbacks

Comments

add a comment

Some HTML is OK

or, reply to this post via trackback.