Redefining Government

As the drama unfolds in the United States over the extension of debt limits and the conflict between the Republican controlled House of Representatives and the Democrat Senate and White House, observers have become fixated on the outcome as it relates to the ability of America to meet its financial obligations. At issue is the price being extracted by the House for increasing the debt limit and a demand for meaningful and real cuts in federal expenditure and tax reform that would simplify the tax code, close exemptions, lower rates and broaden the base.

As we are regaled by TV announcers and talk show pundits on the rapidly changing kaleidoscopic scene the focus is on mechanisms of the legislative process and the power plays between individuals. While this makes for good theatre, it seems to me that the larger picture is being lost and that the fundamental argument about the role and size of government and its relationship with those that it governs is not part of the script. That is most unfortunate for it is the role of government that is the single most important factor in the health of the American economy of the future.

Today, this debate is probably the most vigorous of its kind in the past century where liberals espouse an ever more statist view of government while their opponents point to the stifling effect that it has on economic growth, innovation and risk taking that has been the driving forces of the US economy.

On one hand there is an argument for expanding the role of government in an increasingly complex economy to ensure orderly growth, protection of consumers and the environment and in the provision of social safety nets. On the other, many have come to the conclusion that government has become too intrusive and society over regulated with well intentioned programs becoming fertile fields for corruption and waste. The evils of unintended consequences swamp the benefits and escalate costs way beyond the imagination of the original concepts.

When it comes to the private sector, business leaders seem to fall into two broad categories, those that embrace corporate welfare and feast on the special benefits of the federal trough, and those who recognize that the large successful businesses that they founded a generation ago would not see the light of day in today’s regulatory environment.

Today’s drama will be played out over the next 16 months and will factor heavily in the outcome of the elections of 2012.

Perhaps it is time for us in Barbados to engage in a long overdue discussion about the role of government in a modern day Barbados, one that is largely unrecognizable from the Barbados of 50 years ago. There needs to be a greater focus on the creation of wealth and an expansion of opportunity. We pay lip service to creating an entrepreneurial society and then avail ourselves of every opportunity to stifle creativity, innovation and individual expression while constructing barriers to entry.

It is time that government sees its role as a facilitator to encourage economic activity and diversity while at the same time reducing the size of the government and eliminating programmes that no longer serve any useful purpose. In doing so we could start on the principle of last in first out and abolish the constituency councils that add much cost and little value.

We clearly have our own debt crisis with a rapid and unprecedented expansion of deficit spending over the past few years. We should not fall into the trap of curtailing current expenditure by accepting commitments of a much greater magnitude that will fall due at a later date. The post Kadooment budget should be of great interest to us all.

phillip.goddard@braggadax.com

Bookstores and eBooks

For as long as I can remember, one of my favorite pastimes has been browsing in bookstores and selecting books. From my earliest days I recall spending hours in Bridgetown at the SPCK on the second floor of Fogarty’s. In Hong Kong a few years later it was Harris Book Shop that provided an oasis of quiet and learning amidst the hustle and bustle of that remarkable city of intense entrepreneurial activity.

As I traveled the world while living in Thailand, I would come to spend hours in London at Foyles on Charring Cross Road and Hatchards of Piccadilly.  My purchase of books from these establishments quite challenged the capacity of my suitcases and would well exceed today’s meager airline baggage allowance. Even so, I had on several occasions to resort to posting some of my purchases home.

On returning to Barbados I travelled frequently to the United States at a time when the publishing industry was deregulated thus allowing retail establishments to discount the publisher’s listed price. Crown Books became my bookstore of choice though I had a special love for a standalone shop in Washington DC on Connecticut Avenue, Kramer’s.

Kramer’s is a bookstore with a difference. Not only do they carry a remarkable selection of books but the adjoining restaurant has a unique atmosphere and is a great meeting point with wholesome food and drink.

In time, a new bookstore chain came on the scene to replace Crown Books. It was Borders whose relaxed layout and comfortable reading spaces along with an adjoining coffee shop made shopping a pleasure. Many a day or evening I would spend hours at Borders in cities from San Francisco to Miami returning to Barbados laden down with books.

But there was a new shop on the horizon that sought my custom and in 1995 I bought my first book from Amazon.com. It was the first of hundreds more to follow over the next 16 years and in all that time I must have only bought ten or twenty books from Borders. This week, after a period of time in chapter 11 and several unsuccessful bids to rescue the chain, Borders closed all of its shops across the United States.

The book trade has now evolved into large online internet shops and stand alone specialty shops that focus on unique characteristics of their customer base and special attractions. Those late to adapt to the new technological realities or who fail to continue the process of innovation that heralded their early success quickly become an endangered species. Further evolution is clearly on the cards as electronic books can be purchased online and downloaded in a matter of seconds onto a reading device such as a Kindle, iPad or NookBook. One of my granddaughters already has all of her text books and work books downloaded on her electronic reading device for the next school year.

The history of the book trade is a cautionary tale for many business models that are slow to adapt in a world where change continues to take place with increasing velocity. Few buy a compact disc when they can download music directly to an iPod or computer. No shipping cost, no duty and infinite selection with delivery straight to the home. Three dimension printers are the new manufacturing wave that will similarly leap national boundaries and revolutionize distribution of many physical products from tools to automobile parts.

I will continue to enjoy browsing in bookstores but my shopping habits have already changed, today’s generation may well ask “what was a bookstore?” and “why did they print books on paper?” Whatever the answer, I still hope that Kramer’s will be around for a very long time.

phillip.goddard@braggadax.com

Productivity is Working Smarter

After two and a half years it seems as though it has finally dawned on the government and its institutions that we are faced with a serious long term financial crisis that requires extraordinary leadership and creative measures for us to weather the storm. It will also demand a discipline and a measure of fiscal restraint that has not been the hallmark of this administration. The continuous widening of the fiscal deficit is unsustainable and cannot be solved by additional taxation but must be addressed by reining in the expenditure of government and stimulating the productivity of all sectors of the economy.

When it comes to productivity it seems as though we do not understand what it is and how poor productivity has a negative cascading effect on the quality of life and waste of our financial resources. We are often regaled with exhortations from political and business leaders as well as academic observers about the need to improve our productivity in a way that suggests that people need to work harder. Instead people need to work smarter and organize their work to minimize disruptions. We need to see increased productivity in a positive light as something that is measurable, attainable and a benefit to society. It takes someone with a visceral feel for the issue of productivity to put systems and incentives in place to encourage significant improvements in productivity.

Instead we get lip service with the repetitive mantra of the need to be more productive while we continue to tolerate mediocrity, featherbedding and mountainous overtime work. It is long past time for us to do better.

One example of poor scheduling of work was the painting of road markings at Six Cross Roads on the weekend which is the busiest time of the week for that intersection. To compound matters the work was done between 9am and 2pm when, at this time of year, work could well have commenced at 5am and completed by 9am. By scheduling an early start to the work it would have been done at a cooler time of day and completed in less time with much less traffic disruption. A win win situation for workers and motorists alike.

Another instance was being informed that a product would be available at a supermarket on a specific day only to find out at midday that they were waiting for customs officers to open the container after 4:30pm when they were paid overtime to do so. Not only did this add cost to consumers but it necessitated an additional 10 mile round trip to get the item that I needed. Thus the scheduling of overtime for a couple of customs officers inconvenienced scores of customers and wasted gallons of petrol by consumers who were forced to make multiple trips to obtain a scarce commodity.

The above are small issues in the overall context of the national economy but big things are made up of many small things and if we take care of the small things the big things will take care of themselves. We were promised greater transparency and better governance by this administration; instead we have been served with a sense of denial, smoke screens and drift. Perhaps it is just as well that they are embarking on a sunset cruise to nowhere this weekend.

phillip.goddard@braggadax.com

Bridgetown a World Cultural Site

All Barbadians should take great pride in the announcement that the United Nations Educational, Scientific and Cultural Organization (UNESCO) has designated Bridgetown and its Garrison as a cultural heritage site. Our thanks should be extended to many who have contributed to the effort that achieved this recognition of our capital city and its garrison complex as one of the thousand world heritage sites. Those that worked long hours at home and abroad must take deep satisfaction in a job well done.

In particular, the Ministry for Foreign Affairs must be singled out for the professional and diligent support in this effort over the past decade and more. Kudos must also go to Ms. Mia Mottley, who as Minister of Culture guided the process for many years and to Ms. Alessandra Cummings whose expertise and lobbying skills were invaluable.

But the greatest satisfaction for the recognition of Bridgetown and its Garrison must be that of Dame Billie Miller whose vision and untiring work as the representative of the City and as a Minister of Government for many years has resulted in a renewed and invigorated Bridgetown. Dame Billie was at the forefront in supporting both public and private initiatives to improve the city’s infrastructure and preserve its historic buildings. Her energy, vision and hands on approach ensured that plans on parchment were translated into bricks and mortar. It was not easy sailing and there were setbacks along the way but her perseverance was legendary.

We now have the potential to do much more, further transforming and rehabilitating Bridgetown and its Garrison while marketing the area as a special attraction for visitors. This calls for the development of knowledge based material and the development of historical information and specialty items that would interest Bajans and visitors alike.

A unified approach to promoting the many attractions of the Garrison that would harmonize and integrate the many various entities that operate there. The Barbados Museum, George Washington House, the Military Cemetery, The Main Guard and clock tower and the great iron gun collection.

We have the potential and now it is time to turn it into kinetic energy. The combined efforts of the business community, NGO’s, and Government need to be marshaled to develop programmes that will realize the full economic potential while strengthening the social fabric of the city. There are signs that this is being done in an ad hoc way but there is a sense that the several strands of activity need to be pulled together, coordinated, sustained and woven into a meaningful tapestry for the benefit of all.

Now is not the time to sit on our laurels and say “o what a wonderful thing it is that we have done”. It is time to get cracking and capitalize on the great work that has resulted in achieving global recognition of the value of our heritage. Let us all now capitalize on it by coming together and supporting the development, use and enjoyment of a remarkable World Cultural Site on our own door step.

phillip.goddard@braggadax.com

The American 21st Century

Tomorrow, The United States of America celebrates its 235^th Anniversary of Independence at a turbulent time in its history with foreign wars, deep economic recession and a skyrocketing national debt. Many observers are predicting the decline of American power and influence and many do so with relish.

The critics of America are legion. They swamp the airwaves with hostility to all that they perceive to be wrong with U.S. foreign policy and American dominance of the global economy. In their view nothing could be better than the decline of American power and the ascendancy of China as the super power of the 21^st Century. One should be careful for what they wish lest they get it.

The United States is a work in progress, far from perfect but still an exceptional melting pot of mankind where the rule of law and protection of individual rights and freedoms are unparalleled. The continuous transformation of the society has brought about great change for the better and continues to do so. Much remains to be done, but that does not lessen the remarkable achievements of the 20^th Century.

America is the most charitable nation on earth and this charity stems not from its government alone but is dwarfed many times over by the direct contributions of its citizens. Disaster relief, medical aid, schools and meal programs are delivered by private charities who ask nothing in return. Volunteer workers provide technical assistance, immunization programs and education around the globe, often exposing themselves to rigorous hardship and grave personal danger in countries riven with civil war.

America is the country that we love to criticize but remains the destination of choice for advanced medical care, education and work. There are more Barbadians residents living and working in the United States than there are on the rest of the planet.

Above all, America is the champion of freedom and democracy as it stands against tyranny and oppression. This is something that should resonate with us as it is the same values that we cherish for ourselves. That is not to say that we will not have differences of opinion from time to time but the underlying bond of championing human rights and the rule of law is a foundation that cannot be shaken.

While the economic and military power of China expands, it does so in the context of a rising India and robust economic Southeast nations on its periphery. This is complimentary to the growth of the United States as it faces the many challenges of the 21^st Century. The openness of the American society and the seeming chaos of the political ferment create an environment of problem solving through good old fashioned Yankee ingenuity and the inputs of countless first and second generation Americans from every corner of the earth.

While challenged, no one should be persuaded that America is weak or in decline. She remains the hope of all freedom loving people around the globe and a bastion against the oppression of tyranny. May we in Barbados and Caricom continue to strengthen our relationship, as we develop a liberal capitalist democratic society that continues to improve the lot of all our people.

May God bless America and Caricom this 4^th of July, may we continue to build our economies and strengthen our security, emphasizing our common objectives and minimizing our differences.

phillip.goddard@braggadax.com