TT must go the ‘Norway’

The Central bank governor is virtually admitting that inflation is a real problem and has fears for the future. As such, he is cautioning trade unions about making wage demands. He is suggesting that trade unions should not peg their wage demands on the increase in food prices which over the last year to the present is between 22 to 40 percent.

The reality is that workers wage demands are not the cause of the present inflationary spiral. It is mainly being driven by the massive expenditure of the Government. This is the view of economists like Dr Dhanyshwar Mahabir and businessmen like Paul Quesnel.

Yet Ewart Williams does not want to lay the blame of inflation squarely on the lap of Government expenditure. He seems to be an apologist for the Government. One must disagree firmly with the Central Bank Governor when he stated that “one has to be reasonable in the sense that any government in any country that finds itself with windfall revenues, in the context of a situation where there are still needs to be met... there is a tendency and an understandable tendency to meet these needs. It is legitimate.” Isn’t this an admission that the main cause of inflation is state expenditure which will continue into the new fiscal year as staged by one Finance Minister. There is also a tendency for many oil -rich countries to destroy themselves in the process. One wants to suggest that attention be paid by the Government, the private sector, the university and the press, on what I wish to term

“The Norwegian Model” for the use and administration of our oil wealth. Norway, like Trinidad, is an exporter of oil. It is presently experiencing a tremendous windfall in revenues. Yet it is doing exactly the opposite to what we are doing with our oil revenues.

There are many “needs” in Norway. However, the government is scrupulously guarding and investing its oil wealth which will be to the benefit of generations yet unborn. The oil money, placed in a fund, is invested abroad adding to the wealth of the country; there is no oil revenue driven inflation in Norway. Norway is careful to avoid its oil revenue “heating up” or even destroying its economy as is the case with other countries ie Nigeria, Venezuela. The Norwegian government is not engaged in any mass construction activities and unproductive state welfarism. The Norwegian citizen enjoys a high standard of life – it is one of the richest countries in the world.

The experience of the 1973-1983/4 period is repeating itself even though we are being assured that we have learnt valuable lessons and this would not reoccur. The reality is history is repeating itself. We suggest that “The Norwegian Model” be used as an alternative path to prosperity and development.

THE HINDU WRITERS’ FORUM

Chaguanas