While Government is “preying” on citizens’ fear of the International Monetary Fund to push flawed economic policies, these policies are actually pushing T&T closer to the IMF, says former Central Bank Governor Jwala Rambarran, now an Opposition UNC Senator.
Rambarran who was appointed Governor of the Central Bank under the past People’s Partnership administration, was fired in 2015 by the PNM administration.
Yesterday he surfaced in a new, political role - as temporary Opposition Senator in the 2018 Budget debate in Parliament. He replaced UNC Senator Saddam Hosein, who was ill.
Rambarran slammed Prime Minister Keith Rowley, Finance Minister Colm Imbert and his successor at the Central Bank, Dr Alvin Hilaire. (see box)
Rambarran, thanking Opposition Leader Kamla Persad-Bissessar for the Senate opportunity said, “As an economist, I’m disturbed at the direction T&T is heading under this Government, and where we could be within the next three years.”
In his career he said he’d seen foreign exchange reserves grow from zero in 1987 to highest level of US$11.5 billion “under my watch.”
“Now, they’re haemorrhaging. This is why I stand here today—I have a vested interest in the economy.”
Noting the Prime Minister’s statements on staying away from the IMF, Rambarran said, “Many citizens remember the trauma endured when we were forced into the IMF’s arms. The Prime Minister preys on our fear of being trapped by the IMF.”
“His strategy is to set the bar so low and use the fear of that low point, so anything a little higher is considered a win and you emerge looking like a hero...he’s using fear of the IMF to drive support for Government’s flawed economic policies .
“It’s ironic the economic impotence of the Prime Minister, his army of economic advisors and, engineer-turned- economist, Finance Minister is pushing us closer into the IMF’s arms.”
Rambarran added, “Our collapsing economy under the Rowley-led PNM Government shows up the glaring incompetence of having an engineer playing economic doctor and a Prime Minister who appears to prefer economic ‘jamettry’ to economic strategy,”
“This Government is hurling us back to the Flintstone age.”
He cited similarities between T&T’s situation and the late 1980s economy.
“A new incarnation of the PNM is in power, deteriorating economic conditions broadly resembling those of the 1980s. We have the strange presence of an unholy trinity of persons who continue playing leading roles in economic policy making.”
Rambarran said Dr Terrence Farrell, former Central Bank governor Ewart Williams and current Central Bank governor Alvin Hilaire featured prominently in T&T’s 1980 negotiations with the IMF
“Today, they hold senior economic positions in this administration... Despite all the negative things he’d said about me, I still have deep respect for Dr Farrell who hired me at CBTT,” Rambarran added.
“One would think with such esteemed economic firepower this Government would be firing on all cylinders in economic management. But in 2016, we experienced the sharpest economic contraction in 33 years,” he said, adding Farrell and Williams’ advice has been ignored.
He said Imbert’s implementation of new taxes all at once cancelled intended revenue benefits.
“No surprise he continues to fall short of revenue targets .... The Finance Minister doesn’t have ‘barrakat’— the ability to earn wealth and keep it.”
Rambarran added, “Just like the electorate called upon the NAR to rescue our economy from the PNM in the 1980s, so too the political storm clouds are gathering. The real paradigm shift will soon take place.”