Wednesday, October 29, 2025

Articles by Shawn Cumberbatch

4 articles found

Call to prioritise national issues
Technology

Call to prioritise national issues

While Barbados can benefit from more regional unity to survive in an increasingly insular world, it must urgently fix the increasingly visible societal cracks, which if left unattended “could break our society”. That is the assessment of economist, Senator Dr Crystal Drakes. In her view, there were very few Barbadians who have an issue with regional integration. “When you go to the heart of the matter, it has always been the free movement of people colliding with the national circumstance of citizens in the country,” she said. That national circumstance which Drakes referenced recently during her contribution to debate on the Caribbean Community (Free Movement of Nationals) Bill, 2025 in the Senate included shortcomings in the economic, social and environmental aspects of the society and “even from a national consciousness position”. She noted, for example, that Barbados’ economy had annual growth averaging one per cent over the past 24 years, there was no meaningful economic diversification, the cost of living was the third highest in the Caribbean after the United States Virgin Islands and The Bahamas, wages were “stagnant”, and social, education, and health care services all need improvement. The economist also said another challenge was that about 21 per cent of the workforce was employed by Government, which was “comparable with places like the Nordic countries, without the benefit of the type of fiscal space that they have”. “So, when people have legitimate fears or concerns, this is within the context that these issues are arising as it relates to people coming to Barbados for work, jobs, [and so on],” Drakes said. “This debate has placed regionalism and national development somewhat at odds, and that may be because we feel as though there are things in Barbados that are not going the right way, and they need to be addressed in order for us to have the comfort level in the public domain and in public discourse as it relates to the free movement of persons. “My position is that we do need to have regional integration, I support it, but that has to be done concomitantly with a complete overhaul of some of the systems that we have that currently service the Barbadian public if we want to reside and live in a country that functions in a 21st Century context,” Drakes stated. Her suggestion was to consider having a “smaller Government focusing on core social issues, and leaving all of the other frills to public private partnerships or the private sector, or reduced tax regime concomitant with that reduced Government and allow a level of innovation and creativity to flourish. “This is just an alternative I’m putting out, I’m not saying this is the solution, but what I am saying is a lot of the things that we are currently doing are not working in our favour for us to compete and to continue to be the first mover in a globalised world that is becoming more insular,” she added.

Trade uncertainty threatens economy
Technology

Trade uncertainty threatens economy

The International Monetary Fund (IMF), which has slightly lowered its 2025 growth forecast for Barbados from three per cent to 2.7 per cent, is advising the island and other Caribbean economies to diversify their import sources geographically “as a strategic way to bolster economic resilience over time”. This advice comes with a warning that “persistent trade policy uncertainty – particularly if it translates into elevated shipping and import costs – can increase inflation and erode the region’s tourism competitiveness, primarily by disrupting supply chains”. IMF experts are also recommending that Caribbean countries prioritise tax reforms to bolster government revenues and another suggestion is to improve the efficiency of public spending. “Taken together, these reforms will support a more sustainable public debt trajectory while safeguarding public investment and targeted social protection for the most vulnerable,”the IMF said in its new Regional Economic Outlook for the Western Hemisphere. The advice for Barbados and other Caribbean countries is shared in an analysis titled The Caribbean: Navigating External Uncertainties with Fiscal Resilience. Noting that the region was affected by geographic isolation with difficult production and trade logistics and a heavy dependence on imported goods, the IMF assessment said that “so far, high-frequency data through July indicate that import volumes are broadly comparable to 2024 levels, suggesting a still-limited impact of policy changes on the region’s international trade”. “Nevertheless, persistent trade policy uncertainty – particularly if it translates into elevated shipping and import costs –can increase inflation and erode the region’s tourism competitiveness, primarily by disrupting supply chains,” it stated. “As a result, diversifying import sources geographically emerges as a strategic way to bolster economic resilience over time.” The report suggested that Barbados and the rest of the Caribbean should try to navigate external uncertainties by introducing measures to make them more fiscally resilient. “Global policy uncertainties also underscore the need for stronger policy buffers. Although several Caribbean countries have made notable progress in reducing debt-to-GDP ratios since the pandemic, public debt levels remain elevated, constraining the authorities’ ability to respond effectively to external shocks,” the IMF said. “Moreover, debt sustainability concerns may limit growth-enhancing investments – particularly in education, health, and infrastructure – which are vital to reversing the region’s decline in potential growth. “In this context, strengthening fiscal policy frameworks and rebuilding fiscal buffers are critical to safeguard macroeconomic resilience.” This included improving governments’ tax collection while improving public spending. The report shared that “IMF staff analysis suggests that the region – excluding Guyana and Haiti – is currently operating approximately 8.5 per cent of GDP below its estimated tax potential, highlighting ample scope for tax revenue mobilisation”. “Priority reforms could include broadening the tax base, reducing distortionary tax exemptions, and strengthening tax administration capacity,” the IMF advised. “At the same time, improving public spending efficiency – by streamlining overlapping expenditures and prioritising capital investments – can elevate the quality of fiscal adjustments.” Similar policy suggestions came during the recent IMF and World Bank annual meetings in Washington, DC from outgoing director of the IMF’s Western Hemisphere Department Rodrigo Valdés. Speaking during a press briefing, he said that “over the past months, Latin America and the Caribbean have been navigating through shifting winds of a changing and uncertain global environment”. “Against this background, macroeconomic policy calibration remains a challenge in several countries. While most countries are expected to strengthen their fiscal positions, structural primary balances are projected to be lower than anticipated, indicating unwelcome delays in fiscal consolidation,” he stated. “In fact, with public debt ratios rising, fiscal consolidation is increasingly important to mitigate risks of decompression in risk premiums. Insufficient fiscal effort complicates not only debt sustainability but also the effectiveness of monetary policy.” Valdes added that “on the monetary policy front, inflation remains above target in some countries, amid relatively balanced risks. While robust labour markets and fiscal concerns slow disinflation, recent exchange rate appreciation is helping in some cases”. “Looking ahead, the region’s potential growth remains stuck in its low historical average and lagging its peers. This reflects slowing labour force expansion, low capital accumulation, and stagnant productivity,” he said. The IMF Regional Economic Outlook said that excluding Guyana and Haiti, the Caribbean’s best and worst performing economies, regional economic growth “is projected to rise to 1.9 per cent in 2025, after a slight easing in 2024 following the strong post-pandemic recovery”. Tourism-dependent islands like Barbados “are expected to experience broadly stable growth – supported by expanding tourism capacity, increased construction activity, and a rebound from the storm-related slowdown” this year. However, the IMF report added: “Risks to growth are tilted to the downside, whereas inflation is subject to upside risks. For tourism-dependent countries, key risks include a potential slowdown in major tourism source markets, particularly the United States.” (SC)

Government pushing digital ID
Technology

Government pushing digital ID

Digital trust is the foundation for transforming Barbados into a modern, inclusive and resilient smart nation and the establishment of a new Barbados identity ecosystem will enable secure, seamless transactions for people and businesses. This message from Minister of Innovation, Industry, Science and Technology Senator Jonathan Reid, came as he delivered his keynote address on day one of the Global Business Conference, hosted by BIBA – The Association for Global Business at Wyndham Grand Barbados Sam Lord’s Castle, as part of Global Business Week 2025, last Thursday. Reid announced that Government is launching a new communications campaign to strengthen public trust in its technology-driven national projects, beginning with the rollout of the digital identification (ID) cards. He acknowledged that some Barbadians remained apprehensive about the digital ID initiative, a sentiment he said was typical with most new technology-based products. However, the minister assured citizens that the digital ID cards are a secure, advanced, and efficient means of verifying identity while enabling a wide range of seamless digital services. Reid emphasized that it was “fundamental to build an advanced system of trust. That’s the only way digital identification and the digital economy is going to work.” He reminded delegates that the old, laminated identification cards – introduced nearly 50 years ago –are now outdated, easily forged, and inadequate for today’s demands. Noting that the original cards were designed four decades ago primarily for voter registration, he said the new digital IDs can do much more. Still, he acknowledged, “you have a lack of trust” and “you have issues [with] whether what is being told to you is the truth.” To address this, the ministry will, in the coming months, roll out a nationwide communications campaign to explain clearly and simply how the digital ID system benefits Barbadians and enhances convenience in everyday life. Reid underscored that participation would remain voluntary. “You can choose. And that’s fundamentally the message that we want to be bringing to the country over the next few months, that it’s just a simple thing of verifying who you are, what you have, what you own, what’s your responsibilities, what are your opportunities. . . That’s all. And it’s a place that can store those things, whether it’s on your phone, whether it’s a card, whether it’s a website,” he outlined. Reid noted that significant investment in cybersecurity will be essential to underpin the government’s expanding use of digital platforms. He also expressed confidence in Barbados’ ability to respond effectively to the complexities of digital transformation, drawing lessons from Singapore’s approach to industrialisation and innovation. “One of the things I think they do astronomically well is the idea of building an industry, looking at new industries, but also leveraging the previous industries that they’ve done well in that category . . . and bringing that into the future categories of the economy,” Reid said. (PR/SC)

Quality infrastructure getting a boost
Technology

Quality infrastructure getting a boost

Barbados is one of 15 CARIFORUM members that will benefit from a new 3 million Euros (approximately BDS$7 million) initiative to strengthen their quality infrastructure (QI). The support includes the development of QI-related policies, regulations, and frameworks that align with international best practices, preparation of enterprises and institutions for accreditation and certification, training for public and private sector organisations to strengthen technical expertise, promotion of QI services to increase awareness and uptake among businesses, and the implementation of national quality awards programmes to showcase excellence. The project is being implemented by the Barbados-based CARICOM Regional Organisation for Standards and Quality (CROSQ) in collaboration with the German National Metrology Institute (PTB) and the Dominican Institute for Quality (INDOCAL). Funded by the European Union (EU), through the Economic Partnership Agreement (EPA) Support Programme, the programme will run until November 2027. Termed the Technical Barriers to Trade (TBT) Phase III Project, its initiative will strengthen regional and national QI frameworks and institutions, enhance the competencies of private and public sector QI organisations like the Barbados National Standards Institution, and raise awareness of the value of QI to the region’s development. In addition to Barbados, the project will benefit CARIFORUM members Antigua and Barbuda, The Bahamas, Belize, Dominica, the Dominican Republic, Grenada, Guyana, Haiti, Jamaica,St Lucia, St Kitts and Nevis, St Vincent and the Grenadines, Suriname and Trinidad and Tobago. CROSQ chief executive officer Dr Sharonmae Smith-Walker explained that through this initiative, businesses will gain greater ability to meet international standards, expand exports, and gain consumer trust. Governments and institutions will also benefit from stronger regulatory systems, improved policy alignment, and greater capacity to deliver QI services. She further noted that consumers will benefit from safer, higher-quality goods and services across the region. Sheldon Jackman, project manager with the EU Delegation to Barbados and the Eastern Caribbean said that “by empowering businesses, governments, and institutions to meet international standards, this initiative will boost trade, enhance competitiveness, and deliver safer, higher-quality goods and services to Caribbean consumers”. PTB and INDOCAL are serving as project managers and project implementers, respectively. “By supporting quality infrastructure and strengthening regional trade and economic cooperation in the Caribbean, this follow-up project will have a significant impact on the improvement of trade opportunities, creating new possibilities for enterprises and enhancing their integration into the world economy,” noted Moritz Ackermann, PTB’s head of subsection institutional partnerships. Nestor Julio Matos Urena, director general of the Dominican Institute for Quality, stated: “This initiative reflects our commitment to continuous improvement and further reinforces the strong ties of collaboration established with organisations such as CROSQ and PTB, whose support has been essential to the development of our capabilities and services.” Those involved in the initiative said that it builds on the achievements of the EPA TBT Programme, which successfully advanced QI in CARIFORUM. Like its predecessor, TBT Phase III is designed to support intra and extra-regional trade and boost the competitiveness of CARIFORUM products in global markets. (SC/PR)