Budget 2001 contribution

I WISH to continue with my contribution in the 2001 Budget debate (15 years ago) which has current relevance for the economy and good governance. I will come to Clico later.

“With regard to diversifying the economy, I merely wish to say that the dynamic for diversification is largely internally generated through influencing a diversified pattern of significant levels of private investment and associated levels of investment in public infrastructure.

“We have seen over the years the very dominant quantum of investment by foreign investors in a particular sector. The diversified economy is not a compartmentalised economy. The interrelationship between sectors and the mobility of factors of production will provide the dynamism and the sustainability for diversification.

“I want to give an example. We are saying in the Budget that we are going to provide additional disposable income by a reduction in corporation and individual income tax and that is fine. If that additional disposable income goes to purchase foreign goods and services, then you are not diversifying the economy.

“If that additional income is used in the domestic economy to create demand and to create investment opportunities and, indeed, to add to the sum total of saving and investment then, of course, you are getting somewhere towards creating a diversified economy and creating the dynamic for that.

“The Budget statement claims that people want good governance and transparency and we all want good governance and transparency.

The question, Mr Speaker, is how do we get it? In order to find out, one has to identify or define what constitutes good governance.

“In my view, good governance constitutes, among other things, adherence to a democratic ethos and acceptance of its processes and institutions. Good governance has to do with how a political party functions, for example: respect for its institutions, and opportunity for the expression of all viewpoints.

“Good governance has to do with acknowledging the diversity of legitimate interests and aspirations, but more importantly, good governance has to do with the reconciliation of those interests in pursuit of a larger public interest.

“First of all, we acknowledge the diversity of legitimate interests, and then, having done that, how do we go about reconciling those in pursuit of the national interest? What this implies, Mr Speaker, is that no one interest, no one group, should dominate in government policy formulation and thinking and in the operations of the process of government. If that happens, then the larger public interest or the larger public good cannot be served.

“At this point, if I may quote Machiavelli, who is a distinguished political philosopher, he said: ‘It is impossible to satisfy the oligarchy without doing violence to the interest of others.’” Mr Imbert: “Repeat that, man!” “Now Mr Speaker, all governments anywhere in the world are subject to a diversity of influence.

Everybody wants to get their views heard. Many individuals attempt to peddle influence. They even make substantial contributions. We have been told that he who pays the piper calls the tune, but good governance means that a government should not be dominated by any single influence, whether it is formal or informal.

“So, when the Minister of Finance talks about good governance, I want to support him.

When he speaks of transparency, I want to support him, but I also want to tell him what I conceive of those terms.

“The Budget statement notes that diversity is our strength and Government understands the diversity of our people and I hope that that is true; but the question is: Having understood that diversity, how do we manage that diversity, and to what end? That is the question — the management of diversity and to what end.