2 weeks Ago By Indera Sagewan
The decision by the Minister of Finance to maintain a line of US-dollar credit (albeit reduced and refined) for basic items speaks volumes for the power of the pen, the power of the media. Reporter Anna Ramdass and the Express newspaper must be commended for breaking the story of the woes of the importers of basic food items such as garlic, onion, potato and more. In true myopic Colm Imbert form, his initial response was to attack the messenger rather than focusing on the real issue in a reasoned manner.
But continued pressure from the media and “real economists” forced his hand. Minister Imbert was impelled to back-pedal. From saying that these importers were being irresponsible by ordering containers of food without ensuring they had the forex to pay suppliers, and going even further to say to them, “Go to the banks,” he did exactly what I, for example, called on him to do.
I feel proud of us. It is not passing interesting that Covid ended in 2021 and this facility, according to the minister, has been under active review. For over two years, Minister? Yet public pressure via the media brought a decision to the table in two weeks.
Does the fact that we are entering an election year have anything to do with it? Regardless, I am pleased that there are those who are willing to take on the establishment, the bullies, for country. This win should inspire continued action in the best interest of the public. That said, this credit facility remains only a quick fix.
The forex supply in T&T will continue to worsen as the supply of natural gas and oil further declines. There is no relief in sight. Dragon 2027 is the only game in town and that’s three years from now, if it happens! That’s pretty scary! We are left with little option at this stage save to pray that the Dragon flows gas into our LNG and petrochemical plants in 2027.
But what if it doesn’t? What if the outcome of the US election changes the terms of the engagement? What if the Maduro government changes its mind? What if gas comes, but the market crashes and the price of gas makes little dent to our forex crisis? There are too many uncertainties for comfort. Yet this is all the current Government can offer an increasingly weary society. People are scared for their future, Mr Minister, and it’s not just the worsening crime situation any more.
Middle-level managers, people we need to grow this economy, are packing up and leaving. Not because they want to, but because they feel helpless. When they look into the future, other things being equal, they see a dismal picture.
These experienced professionals are willing to sell everything, take their money, take two steps back in terms of a job, standard of living, to secure their children’s future. Basically, this Government is failing them. They are asking the right questions.
Why are we not diversifying our sources of foreign exchange? Why aren’t forex-earning sectors like tourism, agriculture, non-energy manufacture being prioritised more aggressively? There is little I can say to them expect, “you are right”. But now, even diversification has become more challenging than it was ten years ago. Climate change, and its negative impact, is real! We need to plan now with this as a major factor.
Traditional agriculture, tourism, manufacturing are no longer the way to go, we must strategise differently, build climate-resilient sectors. Mr Prime Minister, it is time to either take responsibility for growing this economy. If you and your ministers are not up to the task, then, accept defeat and step aside.
Raging at those who do not hold the reins of power is childish, at best. Give the country, the people a chance at a better future. —THE AUTHOR is an economist.
