Barbados’ new PM, met with the private sector this week, in his first address to the business community Mr. Thompson made his first attempt to reign in some of the overly optimistic expectations that some people may have.
The admission by the prime minister, who is also minister of finance, may have been the first time that Mr. Thompson has tried to lower expectations as to his incoming administration’s performance, at least in the short term.
Mr. Thompson told his audience that the new administration was taking office at a time when the world economy was at the height of uncertainty, with analysts predicting an imminent downturn in the U.S. economy, and a slowdown in some European economies.
If economic recession occurs in those countries, which constitute Barbados’ major trading partners, he said, “it would have negative implications for the Barbados economy and the economies in the rest of the region.”
One of the direct causes of the financial turbulence around the world, said the prime minster, is that it can disrupt capital inflows into developing countries like Barbados and put more pressure on their already large current account deficits. He said the government would continue to monitor the trends and take what he termed appropriate economic action in order to keep the economy stable.”
In the heady days following an election victory, readership of the comments on many of the blogs have revealed immensely high (some of which we would say are unrealistic) expectations of the newly elected government. In fact, even here on the margin we have had comments that reflect this….
- Don’t worry Marginal, the country is in good hands.We now have a team which is interested in the welfare of the electorate nad not in their self aggrandizement.
Mr. Thompson who now sits in the big chair must manage these expectations and ensure that the Government remains fiscally prudent. The promises of the election campaign must now meet the reality our resources, and the reality of the economic environment we operate in. Those constraints DID NOT CHANGE on election day and Mr. Thompson’s comments reflect a mature appreciation of the realities of the country’s position. The tone of his Prime Ministership will depend on how successfully he can communicate this to people like our anonymous commenter.