Dookeran

UNC POLITICAL leader Winston Dookeran and former PNM finance minister Wendell Mottley have warned that the current state of politics in Trinidad and Tobago could conspire to undermine the long-term health of the national economy.

Addressing a seminar at the TT Manufacturers Association’s (TTMA) headquarters in Barataria, Dookeran slammed both the ruling PNM and warring factions within his own party for continuing to embroil TT in “small political battles of no real consequence to our people.” Explaining the symbiotic relationship between politics and economics in any society, Dookeran said the incentives in TT to “get the politics wrong” are more pronounced than incentives to the contrary, the country is in a state of political crisis and now “on the edge of a social explosion.”

Recalling recent statements by Prime Minister Patrick Manning about current and projected economic growth in TT, Dookeran said it was unfortunate that Government’s public policy prescriptions failed to understand the real meaning of de-velopment and construction was not development.

“Most of the Prime Minister’s announcements are still to be realised. Anything you hear in Parliament, you need not believe,” he added.

While Dookeran said there was no doubt that the nation’s macroeconomical indicators were excellent, there was considerable debate as to whether this meant the nation’s long-term economic health could be sustained. He questioned whether Government was doing enough to strengthen the non-energy sector of the economy and expressed concern that rising public expenditure could be indirectly fuelling the levels of crime and the breakdown of law and order in the society.

Noting Manning’s comments about new jobs being generated from an expected US$11 billion wave of investments in the energy sector, Dookeran expressed concern that this was placing greater pressure on the manufacturing sector and there was a high level of consumer spending in TT which could lead to inflation. He claimed that the current levels of inflation in TT could be between 12 to 14 percent. The last repo rate announcement from the Central Bank in April placed core inflation in TT at around two percent.

Dookeran added that having “lots (of money) in the kitty does not mean responsible fiscal spending.” He said the loss of confidence in TT’s political system may have contributed to a situation in TT today where people have been “seduced by the glitter of high finances” and are living in an illusion of an affluent society.

Mottley said it was politically challenging for a government in any democracy “to do the right thing” during periods of economic prosperity and TT was no exception.

He said floating the exchange rate was one of the best decisions the PNM ever made in government but said that measure worked because the other fiscal policies at the time were “in lock step” with each other.

Mottley advised Government to “take its foot off the accelerator” slightly in terms of its developmental thrust and the Revenue Stabilisation Fund could be the key to “its electoral success.” “You can sell Heritage (Funds). Government can get political credit by selling it hard,” he said.