It is important to note that the medium-term fiscal strategy will constitute only part of a much broader Draft Medium Term Development Strategy for the similar period 2010 to 2014, and this document has also been circulated to the members of the social partnership.

This comprehensive Medium Term Development Framework will represent the blueprint for growth and development over the next five years. Let me reiterate the point that your government will not waiver in its commitment to re-balance the economy while at the same time repositioning all sectors to benefit from growth prospects when the global economy returns to buoyancy. The Medium Term Development Strategy sets out a broad framework of policies and programmes for 2010 - 2014. The MTDS also gives support to the country's long-term vision of becoming "A Fully Developed and People-centered Society, through New Development Pathways". The plan will serve as an important recovery tool that will be used to guide the country as it emerges from the current global recession.

In this respect, the theme "Recovery, Adjustment and Sustainable Development" adequately speaks to the policy framework that has to be put in-place if Barbados is to remain on an upward growth and development path.

As a strategic planning document, the MTDS will provide just the broad blueprint for recovery, adjustment and sustainable growth. In addition, the Development Strategy embraces the key component in the Short and Medium Term Action Plan, which was formulated by the Special Working Group on the economy in 2008.An important feature of the plan is its focus on maintaining macroeconomic stability through sustainable fiscal and debt management. The plan also promotes the need for new areas of growth using foreign and domestic savings.

These new areas will most likely be found in services such as health, education, sports, culture etc. On economic sectoral matters, in the area of tourism, the plan outlines measures to further develop and expand the tourism product with critical focus on market expansion and airlift.

In agriculture, emphasis will be placed on greater use of technology and ensuring food security. In terms of energy, this sector will be targeted for the advancement of alternative forms of energy such as wind, waste to energy and solar. In the international business sector, government will be seeking to expand its double taxation treaty arrangements with countries within the various continents while also engaging in other initiatives to expand the sector.

As an important pillar of development, there will be increased efforts to further develop the small business sector through technical support and ensuring that the necessary policies are put in place to assist small business persons and create employment. Regarding trade and investment, the plan speaks to the need to attract new investors and create new enterprises that can earn foreign exchange through higher exports.

On environmental matters, the water mains replacement programme and sanitation, development of special waste management projects, and coastal zone management and climate change adaptation, will be key projects.

As it relates to infrastructural development, roads enhancement and the expansion of the Bridgetown port will be part of the main priorities going forward. Concerning social issues such as housing, the programme of "housing every last citizen" will be a major initiative going forward. In the area of education, health and poverty reduction, the plan outlines a number of key strategies which government will pursue over the medium term. The further enhancement of these services will be the principal focus.

Finally, the plan speaks to a number of special development issues such as culture and sports, competitiveness and productivity, science and technology and foreign and trade policy.

Based on the current strategies outlined within the plan and the possibility for further amendments, the broad objectives going forward are to:

• 1. Become a globally competitive and productive economy capable of sustaining a rate of growth of 3.0 per cent and over. This growth will be export-led with focus paid to traditional and non-traditional sectors. It will also be driven by increased focus on science and technology.
• 2. Generate adequate levels of foreign exchange to help finance our development needs through an export led policy while also seeking to attract greater investment by ensuring that the correct fiscal, legal, and human resource environment is in place.
• 3. Keep the unemployment rates in single digits, by among other things, creating a cadre of entrepreneurs and small business persons and ensuring that the right investment climate is maintained.
• 4. Preserve a stable macroeconomic environment by:
• a) ensuring a comfortable rate of inflation while seeking to have a more sustainable fiscal and debt position;
• b) maintaining a sustainable external current account position by preventing too high a growth in imports and seeking to develop greater export potential; and
• c) Maintaining the fix exchange rate peg by ensuring that foreign exchange reserves are at adequate levels.
• 5. Work towards the alleviation of existing pockets of poverty through the improvement in governance of our resources, while ensuring that other social services such as - health, housing and education/training, are adequately provided.
• 6. Ensure environmental sustainability while seeking to address issues relating to climate change.

Conclusions and Recommendations

As stated in your Government's manifesto, for Barbados to be an active participant in the global economic and social progress of the twenty-first century it must, as a Nation, find new pathways to improving and strengthening its people. 

These two key strategy documents, the Medium Term Fiscal Strategy and the Medium Term Development Strategy for the periods 2010 to 2014 constitute the Government's strategic and developmental intent to honour its manifesto pledge of a better life for all.

Indeed, over the next ten years, the challenge for Barbados and other Caribbean economies will be to close the performance gap between itself and the rest of the world, as we seek to improve our economic prosperity.

Significant emphasis will have to be placed on indicators of international competitiveness such as productivity improvement measurement, labour cost, organisational enhancement, best practices, performance based incentives schemes and domestic price factors.

It is therefore incumbent on you, the Social Partners, to help find solutions that would enhance the output of the tradable sector.

Partners such as you must also seek to sensitise your respective constituencies to the challenges that affect the Barbados economy at this time. The role of the Trade Union Movement, in particular and in my view, must be one of support for the exercise of wage restraint and the facilitation and promotion of the productivity of its membership.     

In addition, it is now, more than ever, imperative that the Private Sector play its role. In particular, we must allow for the repositioning and full integration of Barbados into the global economy, in such a manner as to maximise the benefits and minimise the threats of recession, globalisation and trade liberalisation. It is also imperative that the necessary human and non-human resources are mobilised to provide the productive sectors with the tools necessary to compete internationally. 

Productivity must be enhanced, and social and economic barriers to further development dismantled.  I therefore wish to challenge the Private Sector to find new ways to compete in a rapidly changing global economy.  Both private sector and public enterprises will have to pay greater attention to their strengths, market challenges, identification of new opportunities and the ability to leverage human resources to create new competitive advantages.

In concluding, let me return to where I started. Some complain that they have no shoes. Until they see someone who has no legs.  We hear much about economic survival. But survival is not simply an economic concept.

Survival is a human instinct and a societal instinct. Barbados is, first of all, a society in which the sum of its parts is the whole. This exercise today is not about first philosophical principles. But if it were, I would like to say that I hope my legacy will not only be interpreted by how I run this economy. That I will do without a doubt.

I hope my legacy will be how I was able to bring the parts together in such a way as to create a safe, harmonious, inspirational, economically sound, fair, just, democratic and compassionate nation.

Thank you.