Annual Meetings of the IMF and World Bank

BARBADOS' DELEGATION TO IMF/ WORLD BANK MEETINGS HOLD TALKS WITH THE FUND, RATING AGENCIES AND INVESTMENT BANKERS
 

The Barbados delegation to the Annual Meetings of the IMF and World Bank, led by Finance Minister Chris Sinckler, met with representatives of the IMF and ratings agencies Standard and Poor's and Moodys, to explain Barbados' economic strategy in depth. The delegation pointed out that the balance of external payments had been stabilised, and as a result there was no decline in the foreign reserves of the country, and the exchange rate remained secure. Mainly because of weak economic performance in the UK and US, there has been little real growth, and government has increased taxes and cut spending to ensure that Barbadians' imports do not exceed the available foreign exchange inflows. The growth prospects for the economy rest with actual and projected private investment in tourism, and with marketing initiatives in tourism and international business services. These initiatives are supported by government investment in the ongoing upgrade of infrastructure, and by programmes to further increase the productivity of labour and the quality of services.

The delegation also met with a number of investment bankers' representatives. They all indicated that Barbados continued to have good access to international capital markets despite the downgrade by Standard and Poor's, and that the prices of Barbados bonds have not been affected by the downgrade.

Minister Sinckler and Central Bank Governor, Dr. DeLisle Worrell participated in a meeting of IMF Managing Director Christine Lagarde and World Bank President Jim Yong Kim with Caribbean delegations. That meeting welcomed the interest of the management of the Fund and Bank in the development of small states, and the establishment of small states fora in both institutions. The Caribbean delegations pointed out that it is especially costly for small nations to build resilience to their vulnerabilities, and suggested this should inform criteria for eligibility and the design of funding facilities. They also pointed out that the resumption of economic growth in the Caribbean depends on the resurgence of the foreign exchange earning activities, and that the devaluation of exchange rates is to be avoided, because it depresses living standards and does not promote growth.

For the plenary session of the Annual Meetings, Finance Minister Nasim Burke of Grenada tabled a statement on behalf of Caribbean countries, outlining the Caribbean priorities for the work of the IMF and World Bank. The statement may be downloaded from https://www.imf.org/external/am/2012/speeches/pr26e.pdf.

Members of the Barbados delegation participated in a number of seminars that were hosted by international institutions on the occasion of the Annual Meetings. They included the 44th meeting of the Governors of the Latin America and Caribbean Monetary Studies Association, CEMLA, at which Dr. Worrell made a presentation on economic policies for small open economies. The paper on which the presentation was made, which was recently published by the Group of 30 at www.group30.org, was distributed at the International Banking Seminar, which was addressed by the Managing Director of the IMF, the Chairman of the US Federal Reserve, and the Governors of the Bank of England, the Bank of Canada and the Central Bank of Mexico.

The Annual Meetings of the IMF and World Bank are a unique opportunity for Barbados and the Caribbean to speak directly to the international financial community. Thanks to the efforts of the offices of the Executive Directors who represent Caribbean countries on the Boards of the World Bank and the IMF, the region now has an effective voice at these meetings. The issues raised will be followed up at forthcoming meetings of the regional central bank governors, and at the level of the CARICOM Council of Finance and Planning Ministers (COFAP).

The Barbados delegation to the Annual meetings comprised the Minister, the Governor, Mr. Grantley Smith, Director of Finance and Economic Affairs, Ms. Michelle Doyle-Lowe, Director of Research and Economic Analysis Department at the Central Bank, and Mr. Patrick McCaskie, Director of Research in the Ministry of Economic Affairs. Sir Lloyd E Sandiford, Ambassador of Barbados to Beijing, joined the delegation for some discussions.

October 18, 2012