Kevin Greenidge: Economic research is the antidote to our challenges
Welcome speech by Dr Kevin Greenidge, Governor of the Central Bank of Barbados, at
the 55th Annual Monetary Studies Conference , co-hosted by the Central Bank of
Barbados and the Caribbean Economic Research Team (CERT), Bridgetown, 6
November 2024.
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Good morning, distinguished guests, researchers, academics, and all participants.
It is my great honour to welcome you to the 55th Annual Monetary Studies Conference,
which we at the Central Bank of Barbados are privileged to co-host alongside the
Caribbean Economic Research Team (CERT). This event has become one of the most
anticipated platforms for central bankers, researchers, and economists across the
region - a place where we present our work, receive insightful feedback, and engage in
valuable critiques that shape the economic landscape of the Caribbean. I enjoy and
value these sessions where our friends and colleagues from across the region can
reflect on our common challenges and provide possible solutions.
This year's theme, "Macroeconomic Management in an Era of Polycrises," is
particularly relevant. The unique challenges we in the region face today - climate
vulnerabilities, external shocks, public health crises, and economic instability - all call
for in-depth research to inform policymaking that fosters sustainable growth and
development. Caribbean economic research plays a critical role in guiding us through
these turbulent times.
As I reflect on the importance of this conference, I am reminded of the words of
renowned economist John Maynard Keynes, who said, "The difficulty lies not so much
in developing new ideas as in escaping from old ones." Indeed, it is our responsibility as
researchers to challenge the status quo, to question the effectiveness of our
longstanding economic policies, and to push the boundaries of what is possible in this
era where we face so many crises all at the same time.
Caribbean economies are small, heavily reliant on tourism, and exposed to global
shocks, which lead to vulnerabilities like low growth rates, high debt, and inequality.
Despite these challenges, we must ensure that our research is not simply an
academic pursuit. It must grapple with these binding constraints, making a
tangible difference in the lives of our people .
Permit me to share three broad benefits of the research we will unveil over the next
three days.
1. Informing Policymaking
Research helps us understand the political, social, and economic forces shaping the
Caribbean. It enables us to craft policies that are effective, sustainable, and grounded in
evidence. The power of evidence-based policymaking lies in its ability to improve the
economic welfare of all. By analysing data on unemployment, poverty, and general
economic trends, we can prescribe policies that promote inclusive growth and drive real
change. As former UN Secretary-General Kofi Annan once said, "Knowledge is power.
Information is liberating. Education is the premise of progress, in every society, in every
family." Our research is the foundation of this progress.
2. Addressing Structural Challenges
The Caribbean's low productivity and competitiveness are exacerbated by high debt
and limited fiscal space. Research plays a pivotal role in identifying these structural
barriers and proposing targeted solutions. For instance, we know from global case
studies that economic growth, job creation, and poverty reduction are interlinked. The
success stories of countries like Vietnam and Indonesia demonstrate that by focusing
on employment strategies, nations can experience significant poverty alleviation. Our
research must emphasise the importance of human capital development to drive
productivity and innovation.
3. Enhancing Economic Resilience:
We are all aware of how vulnerable the Caribbean is to external shocks. However, by
diversifying our economies and strengthening our institutional frameworks, we can build
resilience. Understanding the effects of phenomena like bank de-risking or global
supply chain disruptions is essential to crafting policies that ensure stability and
continued growth.
Yet, we are not without challenges.
Limited data access, under-resourced
institutions, and the ever-present brain drain hinder the growth of our region. But
these challenges only strengthen our resolve. As Nelson Mandela wisely said, "It
always seems impossible until it's done." Let us view these obstacles not as
insurmountable barriers but as opportunities to create innovative solutions through the
research we undertake.
In closing, Caribbean economic research is not just vital-it is the antidote to our
challenges. Through our research, we can solve our own unique problems and unlock
sustainable growth, reduce inequality, and improve the quality of life for all our citizens.
Investing in research is not merely for academic exercise; it is a key component to
unlocking a brighter future for all of us. Together, through our collective efforts, we will
chart a path to resilient, innovative, and thriving economies that strengthen our
macroeconomic management to withstand the era of many crises.
It is with the greatest pleasure that I deliver these opening remarks, and I look forward
to the fruitful discussions and insights that will emerge over the course of this
conference. Let us continue to push the boundaries of what is possible, to inform policy,
address challenges, and ensure that Caribbean research remains at the forefront of
global economic thought.
Thank you.