Domipeem: “Huh, what a tough day it is; my sinuses are swollen and I can nationfeel an intense pain in my chest!” Finsec: “You perhaps need some rest; how much sleep had you taken over the past week?” Domipeem: “I never thought of that really! Do you think I need to see the doc after all I spent the last few years injecting so much I expected to feel better now!”
In Economics 101 we learn that the economy is a function of people and business consumption (C), government spending (G), the net of exports over imports (NE) and of course the constant we can refer as the level of technological progress made (g); The economy is often measured by the Gross Domestic Product (GDP) in any country. As our GDP increases we say that our country is experiencing economic growth and economic growth is the basic solution to the vast majority of our country’s economic problems. Where an economy is growing, personal incomes grow. And when personal incomes grow, people can avail themselves of better health care, better educational opportunities and training, and can give better opportunities to their children.
For Domipeem the policy problems appear as a common cold, a headache, or congenital chest pains indicative that something is seriously wrong within. His conversation with Finsec earlier alludes to a similar occurrence in Dominica whereby the symptoms of inner economic turmoil started to surface after years of ‘injections’! The nature of these injections is therefore the subject of enquiry for any medical practitioner or economist in his/her overall diagnosis of the ‘underlying problem’.
The economic symptoms in Domipeem appear latent; this complicates both the diagnostic process and the ensuing treatments or recommendations for cure. The challenges of finding policies to promote economic growth lie in the center of every debate over the politicians we choose to rule the nation. Unfortunately the ordinary layman is neutral to the nature of the ‘diagnosis’ undertaken and the quality of discussions held about his/her condition. In this passive knowledge base the patient or layman depends on the experience, training, knowledge (logos), goodwill or feelings (pathos), and philosophy or culture (ethos) of the practitioner/politician and responses in good faith by subjecting his/her self to the prescription. It is so often a matter of faith!
It is unfortunate albeit a common occurrence for the ordinary layperson to remain ignorant or uninformed about their condition much less to actively participate in choice of prescription. Such has been the case against the International Monetary Fund (IMF) for years. It is portrayed as an international financial institution (IFI) which creates serious woes within the countries it operates in. It is sometimes mind bugling to understand the basis for the presence of the IMF in any country save that the symptoms of economic stagnation has begun to surface. Therefore in response to the already existing malady the IMF perfects the information flow allowing what was not noticed by the ordinary layman to become common knowledge. This is unarguable!
Prior to the existence of this common knowledge we must note that the condition diagnosed did not come about as a result of the IMF’s presence. It is not promising to read the words of individuals who want to rule the country convey such messages. The IMF is disliked as a solution finder more so because it does not set ‘earmarks’, that is, it is in the business of telling people what they ‘should hear or need to know’ and not what they ‘want’ to hear. Instead the IMF sets a number of benchmarks to measure any progress or lack thereof from the policy solutions they prescribe to (in this case) a knowledgeable patient.
Sometimes we want to remain comfortable and feel relieved (temporally) by the utterances of Finsec, who honestly and unwittingly informs Domipeem that ‘perhaps’ he ‘needs some rest’. The problem persists and escalates and becomes more sophisticated by policies base on the assumption of an absence of economic problems. Flirting responses does not help! With certainty we argue that there are top economists who dislike the IMF; of what importance is this information to the general public.
We have learnt that Lucifer envied GOD in Heaven and it is ironical that he felt he could accomplish the feat again in an attempt on earth when he tempted Jesus according to the scriptures of the first Sunday of Lent. Many policies and approaches in finding economic solutions are disliked by many top economists; so what? Is that new, will this piece of information help us find economic solutions? As a matter of fact, the IMF mandate involves just that therefore the government is not doing something unusual. An honest criticism of the IMF’s work in the world should allow for some balance discussion from any intellectual discourse.
Education Ministers present and wanna -bes must lead by example always conscious that their words should stimulate discussion and should not be heralded as matters of fact when it comes to public policy issues. To suggest that every country the IMF intervenes is a disaster is misleading and unbecoming. The IMF did similar work in Barbados under the Labor Party government; today Barbados is experiencing economic progress incomparable to its OECS neighbors. We learn of the Asian Crisis and the IMF involvement and we saw what happened in Argentina. As any institution the best and the worst are borne. This is true to the IMF equally.
Therefore if the government Press Secretary finds it fitting to sound the accomplishments of the IMF in Dominica we expect the opposition or those with opposing view points to reveal something otherwise. By criticizing the IMF through exposure of perceived failure or lack of popularity among renowned economists is an attempt to undermine the people’s view of the institution. As we say if the pot is unclean the water in it must be unclean too. So by association Hon. Ron hopes that the efforts and successes of the IMF in Dominica are not possible because the IMF in itself is not successful.
By triggering such comments we expect the typical Dominican to respond in defense of their political party or to feed fire into the offensive. For me it is a matter of the middle road; Dominican’s need to assess what has transpired in our economy over the past twenty (20) years. What are the significant investments made that promotes economic growth? What kind of advice and ideas are our politicians/parliamentarians proposing and counter proposing? Are we bent on outdoing each other in rhetoric setting ‘earmarks after earmarks’ with a false sense of that’s what the people ‘wants’ to hear.
Taking a leaf from Hon. Ron perhaps he is right, Sean’s article fails to provide measured impacts of the mentioned accomplishments. However one must be cognizant of the fact that Hon Ron has the responsibility of providing alternatives and for seven (7) years these are not forthcoming. We need ideas to inform the government; individuals who think that by orchestrating decadence in the Parliament will win them sympathy are being downright disrespectful to Dominicans. We do not pay our politicians to use the media as sounding boards for their personal dislikes or feelings of disenfranchisement; instead we look forward to the generation of ideas, formal discussions and counter proposals on policies, directions and plans of the ruling government.
We need to stop being a crisis country; we need to learn the most important message of the martial art student: your physical training is perfected when you succeed in avoiding fights; you are trained violently to beware of violence! A mirage or a real challenge… can our opposition take a leaf and understand that advance of the law should make one recognize that its avoidance of legal battles is truly the desirable stance! So what kind of message is warranted here!
The policies that promote growth must be explored and suggestions and ideas discussed in a respectable and mature form. We need parliamentary debate on the level of savings among our people; do we encourage unhealthy consumption thereby creating the false need to have ‘money in the pocket’ rather than saving in the bank! How can we improve the rate of savings: simple the government and the people must operate on budgets in surplus… one must not spend more than one collect or earns in income. By balancing the budget the Government is fulfilling the role of the economy’s saver since the people’s behavior is not to save.
Then there is the issue of investments. What is the nature of public investments (PSIP)? Are they in response to priority needs or are they base on ‘vote-getting’ schemes. One of the biggest wastes in Government spending is the allocation of funds to finance projects that appear to give political points within constituents. Only when projects response to the people’s need does it provide the political leverage desired by every politician. Therefore a true politician who understands the need of the people will not criticize any important government project and would recognize that the function of government transcends the basal party-political or personal needs. This phenomenon places pressure on government finances particularly in a situation where prioritizing is not a common practice.
There is the issue of technological progress; every public policy is designed to stimulate technological progress. Research and development are key facets of technological progress. Some governments promulgate industrial policies that promote specific industries or sectors that are critical for rapid technological progress. The public debate on which industries/sectors are selected is the material that needs both sides of the bench input. For example the government gave the Hotel sector a 5% reduction on the 15% Value Added Tax introduced in March 2006. This move from a government viewpoint is in keeping with their focus on Tourism development.
It is absurd to hear the Calypso Association PRO propose a similar treatment for their organization under the guise of promotion of the culture based on a four show event annually. Where is the opposition’s view point? Blankly stating that the VAT is an added burden on tax payers fails to provide alternatives or a ‘reengineered’ version? Making the shows less expensive is not going to advance the calypso art form; however developing a programme to encourage the art form and negotiating sponsorship or partnering with government is a more practical approach. Not everyone can have the biggest piece of the small pie, we must put our efforts in enlarging the pie first and by association we receive a bigger piece.
Our economy is small and we need to accurately measure its performance, improve the productivity or quality of the labor force, and generate new ideas to feed technological progress. Our positive contribution today is what will determine the outcome of elections tomorrow. By trying to use ‘put down’ tactics in today’s politics is a little short of being naïve and disrespectful.
Let us all in one faith accept that our economy is on the balance and it requires the skills and heart of all to ensure that when it tips we are on the top. Stop wishing for the opposite hoping that this will give you a chance at power again. This is just too imaginary…after all we are in 2009!
Let’s just take Frank Luntz, a corporate communications adviser, words “But if I were still in the thick of it, my guidance would be just 20 words long: Be bold, return to basics, stop telling, start asking, focus on results, abolish “earmarks” and embrace a permanent balanced budget.” As recommended by d eye m f!
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