Cleviston Haynes: Critical minds for critical times - economic
research as a building block for transformative growth in the
Caribbean
Speech by Mr Cleviston Haynes, Governor of the Central Bank of Barbados, at the 39th Annual
Review Seminar, Bridgetown, 25 July 2019.
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Good morning,
th
It is my distinct pleasure to welcome you to this 39 Annual Review Seminar. This seminar has
developed a rich tradition for sound economic thought and quality research on Caribbean
economies that has contributed to public discourse and the betterment of our societies. Its
success has led to the evolution of similar seminars at other regional central banks. This
seminar continues to serve as an incubator for nurturing our young economists to the practice of
economic research and has provided opportunities for us to discuss and debate research ideas,
establish collaborative relationships and to learn from each other's shared experiences. I would
also like to acknowledge other institutions in the region, such as the Caribbean Development
Bank and the IADB that are also making available their valuable research on key aspects of
economic development in the region.
At the Bank, our focus in the past year has been on implementation of Barbados Economic
Recovery and Transformation (BERT) programme. To this end, our economists have been
intimately involved in programme design and monitoring. I believe that there is a nexus between
operational work and research because research is integral to the design of good economic
policy. I wish therefore to commend our young economists who have risen to the challenge of
preparing papers for this conference.
As I reflected on this year's theme,
Critical Minds for Critical Times: Economic Research as
a Building Block for Transformative Growth in the Caribbean I wish to share a few thoughts
with you.
Firstly, the theme challenges each of us to critically think about the type of research we
undertake and how the resultant findings contribute to national economic policy initiatives
designed to drive transformative economic growth. We must, therefore, conduct relevant and
timely research that includes economic ideas and models that capture the essence of Caribbean
economies, namely small size, high import propensity and a binding foreign exchange constraint
to name a few. More importantly, we must market our research through discussion forums such
as these, on social media platforms, and on websites or in the traditional and non-traditional
media so that our publics understand our work, and any ensuing policy initiatives. The research
shows that an informed and educated public helps with the successful execution and
transmission of the national economic strategies.
Secondly, what do we mean by transformative growth and what role can economic research play
in fostering such growth. Transformational growth is a long-run phenomenon, which involves at
its core the structural transformation of the economy, the basic premise being the repositioning
and reallocation of economic activity across the broad sectors of the domestic economy. For the
majority of Caribbean countries, these sectors are services, primarily tourism and financial
services, and to a lesser extent manufacturing, mining and agriculture. In the case of Barbados,
the Government has articulated a national digitisation strategy to transform the economy. The
aim is to build a new economy that is knowledge-intensive, technologically driven, and that
promotes innovation, creativity and inclusiveness.
Indeed, technological advancements are fuelling the pace of digitisation of the global economy,
which represents the greatest potential to drive transformational growth through changes in the
economic structure of production. We at the Bank recognise that changes in technology are
transforming the way financial institutions are interacting with their customers. In particular, the
impact of technological advancements on financial regulation and supervision should be an area
of research focus, as central banks must adapt to these changes and engage with key
stakeholders to ensure the appropriate safeguards are in place to manage the inevitable risks
that the new developments present. We must also conduct more micro-based studies to
develop a deeper understanding of the behaviours our societies. The initiative to reduce the use
of cash is a prime example of how such research can help us better understand the payments
landscape in our economies.
The goal of structural transformation and ultimately the realisation of transformative growth must
be inclusive. This means that everyone benefits from or shares in the income and wealth
generation when the economy expands. From an economic perspective, research on the
strategies that increase total factor productivity, competitiveness and economic diversification
within and across economic sectors are essential. Finally, our research must examine how we
can reduce the unsustainable use of natural resources to ensure that natural disasters and
climate change do not put the prospects for transformational growth at risk.
The seminar programme reveals an interesting mix of research papers, the launch of the 2019
Financial Stability Report and a Barbados Economics Society discussion forum on the
effectiveness of the BERT programme. On behalf of the Central Bank of Barbados, welcome
once again and I wish you fruitful, stimulating and enjoyable seminar over these three days, and
may we all be inspired to conduct more research that transforms our economies.
Thank you.