Sunday, March 18, 2012

Public Policy and Expediency


The need for predictability and for protecting reliance on settled rules is vital to promoting a vibrant investment climate, stimulating economic growth, and creation of a vibrant opportunity for employment. At the same time we must not become so rigid that we find ourselves so unreasonably shackled by precedent that we cannot respond effectively to crisis or new threats as they emerge.

The response to the existential threat of HIV/AIDS at the end of the last century is a case in point. With the growing awareness, that left unchecked, the HIV virus would wreak havoc on our society it was evident that a new multifaceted approach was necessary to combat this deadly disease. It was not just a health issue but an economic one as well, that challenged the structure of our society and had grave national security implications.  We had to devise new responses to check the spread of infection and decrease the mortality rate caused by this unparalleled assault on the immunity systems of those that were infected with the HIV virus.

New systems of free diagnosis, confidentiality and free treatment were implemented for all and a public information programme was launched to sensitize the public about sexually transmitted diseases with an emphasis on the HIV virus. The programme has evolved and continues to do so with some levels of success that is in large part due to dedicated medical staff who are involved in the diagnostic, counseling and treatment services to the Barbadian community.

Another seminal event in our recent history was the financial shock following the attack on the United States on September 11, 2001. Once again, the government of the day responded swiftly and decisively. Immediately taking the whole nation into its confidence, a national consultation was swiftly held to outline government’s immediate plans and to facilitate inputs from a broad cross section of the community to generate a response that would protect our key economic interests and prevent a collapse of the economy. It acted with dispatch and transparency to analyze the situation and develop solutions. 

Alas, these past few years, as we have endured the deepest global economic crisis in nearly a century, the government’s response has been to largely ignore the severe recession and to engage in series of bewildering responses to significant business failures that largely consisted of corporate cronyism and significant dollops of corporate welfare. The long delay in addressing the Clico affair with the collapse of CL Financial and the gaps in supervision of the company in subsequent months as well as the abnormally long delay in appointing a judicial manager are inexplicable. It speaks of gross incompetence or worse.

The failure of the Four Seasons venture has been another national nightmare with a slow bleeding of the public purse to sustain a questionable business model at massive expense. Now there are calls for government intervention in Almond Beach after years of mismanagement and neglect.

The public good would have been best be served by a quick response to protect the Clico customers and to allow failing companies to go bankrupt.
There is a growing unpredictability in policy formulation, and more importantly, its administration. It is increasingly driven by ad hoc political expediency and political patronage rather than by a consistent application of corporate law. This creates an environment that extends the business community’s envelope of risk to unsustainable levels and endangers our economic future.

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