Skip to playerSkip to main content
CCNTV6
  • 7 weeks ago
Financial economist Dr. Dave Seerattan says much of the national economic conversation has been overly negative and somewhat rooted in reality but often shaped by a limited understanding of the challenges and potential solutions.

As he prepares for the pre-budget forum, Reimagining Economic Possibilities, on October 2nd, he argues it's time to think outside the box and explore innovative ways to tackle the country's economic hardships.

TV6'S Nicole M Romany has the details.
Transcript
00:00Dr. Dave Siratin says the upcoming pre-budget forum is critical.
00:06The budget could be a pivotal one, he says, not only because the country faces stark fiscal
00:12choices but because a new administration is attempting to pivot from policies of the past
00:18decade.
00:19He tells us key challenges include persistent fiscal deficits, pressures in the foreign
00:25exchange market and, at the root, the country's international competitiveness and productivity.
00:31He warns that the old ways may no longer work and fresh, bold thinking is urgently needed.
00:38I think we have to think outside the box now because some of the more orthodox approaches
00:44to dealing with our problems have not been particularly successful.
00:50In that context, some of the issues we hope to cover include the way governments make
00:55budgetary decisions, in particular the way views of exports are incorporated into the budgetary
01:04process and the lines of, and very importantly, the lines of communication that the PM and
01:09the Cabinet has with important stakeholders and this has been a problem in the past.
01:15Another key issue, Dr. Siratin says, is the salary negotiations with unions, which are expected
01:21to start at 10%.
01:22The different stakeholders might have different approaches or objectives and that, as you know,
01:29is going to be the main problems that we face.
01:34So, for example, the labour unions, of course, want higher pay and that is in direct conflict
01:39with some of the objectives that the business community may have.
01:42Those particular trade-offs and so on are going to be key to having a budget that is actually
01:48successful.
01:49In terms of the foreign exchange crisis, Dr. Siratin says, there are multiple interventions
01:55that can be explored without necessarily resorting to what he describes as the nuclear option of
02:01devaluation.
02:02Dr. Siratin warns that solving the foreign exchange challenge goes far beyond the exchange rate itself,
02:09saying, there's need for reflection on deeper issues, from competitiveness to consumption
02:15patterns and tackling the fundamentals and not just the numbers.
02:19He tells the Morning Edition, that is what will determine the country's economic future.
02:25Nicole M. Romany, TV6 News.
02:28Thank you very much, sir!
02:47So you...
Be the first to comment
Add your comment