Short Story
Among the long list of experts from St. George’s University to present to the SGU community and wider Grenadian public on a variety of topical issues is Dr. Wayne Sandiford, economics expert and professor of Economics at SGU. Speaking at Bourne Lecture Hall on Tuesday, March 27 on the topic “The Budget: Can it Cure Our Economic Ills?” shortly following the presentation of the 2012 Grenada Budget, Dr. Sandiford sought to not only answer this question but to discuss the importance of the budget, noting that it is the expression of Grenada’s fiscal policy. He also discussed some salient features of the Grenada economy, the country’s revenue structure and expenditure patterns and the ills afflicting economy.
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Full Story
In his presentation Dr. Sandiford explained that: “The budget is the instrument of fiscal policy, bearing in mind that it is only fiscal policy that the [Grenadian] government has at its disposal to influence the level of output, employment and inflation.” He noted that, of the 2012 budget expenditure of EC$1.023B, 44.0% will be devoted to debt repayment while 23.0% will go to capital expenditure (projects). He also indicated that with an unfinanced overall fiscal deficit of approximately EC$400.0M it is unlikely that the government would be able to do anything to significantly influence the current lackluster economic growth and reduce unemployment; two of the major economic ills afflicting Grenada. He therefore suggested that “What we need is to look at a set of policy tools that may be unconventional. Government only has fiscal policy at its disposal and there is a limit to fiscal policy especially when you are up to your neck in debt. There isn’t much you can do.”
He then went on to suggest a variety of such unconventional measures which included, among others, the establishment of an incomes policy linking wage increases to productivity growth, realigning incentives, concessions and exemptions granted to companies with measurable performance targets, and reengineering the public service to allow for performance based pay. The lecture sparked lively discussion and was very well received by attendees, who described it as “interesting”, “enlightening” and “stimulating”.
Dr. Wayne Sandiford is a Grenadian and professor of Economics within the School of Arts and Sciences at SGU. He holds a Bachelor’s degree in Economics and Political Science from Carleton University in Ottawa, Canada, a law degree from the University of London and Master’s and PhD degrees in economics from the New School University in New York. He came to SGU in 2006 with a wealth of experience having previously worked at the OECS Secretariat in St. Lucia, the Eastern Caribbean Central Bank (ECCB) in St. Kitt’s and the University of the West Indies (UWI) Mona, Jamaica. Dr. Sandiford has made several presentations at regional and international meetings and conferences and is the author of four books, two on the banana industry, one on Value Added Tax (VAT) and another on the Organisation of Eastern Caribbean States (OECS) Economic Union.
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