I am tempted to say the Government lost a lot of credibility, given the embarrassing volte-face on the effects of the international economic crisis on our local economy, but would concede that it actually enjoyed credibility that could have been lost.
The idea that we were so strong and powerful, that we were either immune from the negative ripple effect or somehow isolated from the web of interlocking international trade and investments, was dangerously laughable. It would have been a nice joke, but for the seriousness of the issue.
The middle class is still reeling from the impact of the hike in premium gas and the astronomical price of food. The news that it must tighten its belt again only adds insult to injury.
The socio-economic discrepancy between the high-rise buildings and mega-projects that needlessly litter the landscape and the plight of the poor and slipping middle class was always a problem.
It was bound to be the Government’s Achilles heel. It is difficult to reconcile the tangible evidence of economic prosperity with the suffering on the ground. The Government refused to develop a serious agricultural plan so that our nation can feed itself, and now we must all suffer for it.
When I walked through the constituency of Tabaquite for the last general election, I was amazed to see the quality of the abundant produce the farmers, despite the terrible conditions. They all complained about the lack of support from the State. The roads were inaccessible; the bridges had become unusable; there was no reliable water supply, and uncompensated losses due to flooding had virtually stultified their growth. Add to this, the scarcity of agricultural labour, praedial larceny, and the rising cost of fertilisers and you will understand why food prices are so high.
The Central Bank Governor has stated more than once that our 15 per cent inflation is “food-driven” or fuelled by the high price of food. Barring the welcome decrease in the price of flour, the Government has addressed the symptoms of the problem without dealing with the cause.
Smart cards and pension increases are necessary, but where is the much-needed incentive for agriculture? The ex-Caroni workers are still awaiting their promised plots, but even so, the plots are too small to make farming them a viable economic project. The economies of scale will simply not be there.
Treating the symptoms and not the cause of the problem is a peculiar characteristic of the PNM. The Prime Minister immediately makes it clear that Cepep and URP will be expanded. Why? Neither project generates income, but more importantly, weren’t we told that Cepep was meant to train and re-tool workers so that they could then find gainful employment?
And wasn’t URP supposed to provide temporary relief from unemployment? And why expand a project that Independent Senator Dana Seetahal quite rightly reminded us nurtures and sustains criminal gangs? The rush by Manning to allay the anticipated fears of his base exposes his political failure: after two terms in office as PM, he failed to create a generation of people that would not be enslaved to the dependency syndrome.
The sad part about it, though, is that the people are capable of achieving so much more if only their true potential is harnessed. There are so many who have managed to test themselves against the best, once they were able to break free from this cycle of “relax because the ‘father of the nation’ will provide!”
The middle class will be hurt by this impending recession. The progress that was made to close the gap between the rich and the poor will recede, and the gap will once more widen.
Top of the list is crime. To think it can’t get worse is wishful thinking. The unemployment that will be caused by the slowdown on the housing projects will create a social “bulge” that requires immediate attention.
Perhaps, the Government needs to review its use of foreign labour on some of the mega projects. In 1986, the recession created such disenchantment that the PNM lost the elections 3-33. The next four years of its tenure will be testing.
There is need for innovative and creative thinking to solve our problems.
Barack Obama has embraced his political enemies of yesterday because he understands the value of picking the best team possible for America, regardless of different political opinions. He also understands the danger of isolating people who may be qualified to help on the basis of their political persuasion.
Unfortunately, our petty politics makes this kind of leadership a dream. This U-turn fiasco, whereby red-faced and boldfaced government ministers had to back-pedal on their original position, shows that outside help is needed. Can Mr Manning appreciate what’s at stake and choose non-PNM people to help save our economy?
Or, will it be a case of new faces, but same old PNM ideas: feed them and they will vote for us, regardless.
By Anand Ramlogan