Dookeran recommends public-private partnerships to boost food production

Dookeran’s comments were contained in a recent interview with the Latin America Advisor - a publication of the Inter- American Dialogue.

He was asked about those areas in which Government should focus given the Barbados- based Caribbean Development Bank’s projection of 1.7 percent regional economic growth this year among its lending countries although this country’s petroleum-based economy is expected to continue to contract in 2017.

“The ‘magic’ of steady macroeconomic metrics is losing its potency in this hydrocarbon-rich economy. Getting the balance sheet right in a period of the global financial crisis of yesteryear and the more recent price slump of oil and gas prices have stalled the growth momentum,” Dookeran said.

He said the fiscal stress has created “cash-flow bottlenecks” which, coupled with foreign exchange jitters, has placed the economy “on the edge.” “In spite of being on a cliff, fiscal space is being increased by borrowings in the capital market— possibly because of the safe debt ratios for now—which has buffered the social balance sheet and a political wage policy,” Dookeran said, adding, “To promote better growth, public policy must harness the surplus liquidity in the banks and promote private-public sector partnership in a strategic way.” “In addition, immediate action to complete a major highway that has been at a standstill, and to open credit lines for food and agricultural production, would ignite a growth path and spur diversification,” Dookeran said.

He said the state enterprise sector had to embrace a program of public offerings with a focus on productivity gains and the sharing of ownership while the energy sector had to focus on reducing the risk of shortage in gas supply which was critical for the expansion of the downstream energy sector.

Dookeran said this country has been buttressed by sound banks, credible credit ratings and a tested investment climate which has “shaped the level of business confidence, at a time when there is local fragility and global uncertainties.”