Industrial Activity Grinds to a Halt
Former Prime Minister Ralph Gonsalves has raised alarms over a significant industrial and economic slowdown, claiming that the nation’s productivity has stalled under the weight of new government policies and IMF-backed austerity measures.
Describing the current state of the country as “dead,” Gonsalves highlighted a sharp decline in industrial activity, particularly within the construction and transport sectors.
He noted that the “big trucks” that once frequented the roads are now largely absent, and traffic at Rabacca a primary source for construction materials has dwindled to almost nothing. “The workers who used to have to work late and get overtime, none of that available now, you know, because things gone slow, slow, slow,” he stated.
Gonsalves attributed this industrial stagnation to a shift in fiscal policy that prioritizes debt reduction over economic growth. He argued that the government’s plan to “slash capital projects” has removed the primary engine for job creation and development.
According to Gonsalves, the administration is pursuing a policy of “wage moderation” and “natural attrition” allowing public sector roles to go unfilled which further reduces the circulation of money in the economy.
He specifically took aim at the IMF’s recommendation to discourage public investment in “marketable assets,” such as Vinlec, the port, and the airport.
Gonsalves countered this by citing a 2008 World Bank “Growth Report,” arguing that public investment in infrastructure “crowds in” private sector activity rather than displacing it. Without these state-led projects, he warned, the private sector including contractors, plumbers, and electricians will continue to suffer.
While the IMF has projected a growth rate of 2.7% for the year, Gonsalves expressed deep skepticism, suggesting the actual figures will be much lower due to the current industrial climate. He characterized the government’s approach as “anti-developmental” and warned that imposing austerity on a small island nation would lead to “chaos and disorder”.
“The only way out,” Gonsalves maintained, “is to grow out of any challenges we have” through fiscal enterprise and public investment, rather than the “bitter medicine” of the IMF.