Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.---- Woodrow Wilson

"They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."

Government in Economy. What is its role?

The inconsistency with respect to the economic policies of the present government coupled with the unexpected announcement of a State of Emergency has resulted in an atmosphere of 'uneasiness' throughout the general public but mainly within the business community of Trinidad and Tobago. One year into the administration of the Peoples Partnership, the nation finds itself in a 'State of Emergency' and on the brink of industrial unrest. However, one of the most important concerns that many Trinbagonians have failed to give due attention to is the issue of State participation within the nation's economy and its overall impact on the economic and social condition of its citizens.

    Numerous influential individuals and organizations have publicly begun to question the government's competence with regards to the formation of economic policy. Labour Unions have clearly shown their frustration and disgust toward the government's propositions through protest action; furthermore, others have claimed that the negotiation process within private enterprises and the overall climate itself is much more conducive to cordial relations between employer and employee and on this basis in addition to others, the government should systematically reduce its participation within the economy.

    In an attempt to express her sentiments concerning the role of the State in the nation's economy and its present condition, the Prime Minister is quoted as stating that (Express Business issue 15^th June 2011) "The Government has been competing with the private sector in every regard and it has not worked…in housing, in looking for employment, for jobs." In agreement with the Prime Minister's stance the Chamber of Commerce also stated that they therefore expect that the "Government will immediately conduct a scrupulous review of its entire asset base with a view of applying criteria driven by this philosophy of the Prime Minister, the objective being divestment, mergers, acquisitions and where no feasible alternative is workable, closure so long as this is in the interest of the country."

    The statement of the Prime Minister makes clear that a shift is taking place with regard to the fundamental economic policy that has been consistent within Trinidad and Tobago regardless of political party. Eric E. Williams considered as the Father of our nation espoused his economic philosophy in the following statement, "The PNM perspectives reject both liberal capitalism (with its concomitant of penetration and take-over of the economy by multi-national corporations) and the communist organization of the economy and society. Instead, we follow the pattern that is being increasingly developed in developing countries, of State participation in the economy, to the extent of up to 51 percent in particular enterprises, to ensure that decision making remains in local hands."

    State participation within the economy is a critical aspect in ensuring that the government fulfills its most important mandate of serving the collective interest of the people. The Prime Minister in her assessment however has failed to acknowledge the many Trinbagonians (who in most cases occupy the lower echelons of society) who have benefitted from numerous government programs in diverse fields. With respect to employment, the M.U.S.T, O.J.T, C.E.P.E.P, and Y.T.E.P.P. programs have been critical in ensuring that many citizens are employed and educated. The Housing Development Corporation has also allowed for affordable housing to reach those who would otherwise be left-out.

Throughout the history of Trinidad and Tobago the State has maintained a presence within the economy for the purpose of contributing to the improvement of citizens and to also provide an alternative to the services provided by private enterprises. This must be continued. The government should not attempt to escape their responsibility to the citizens of this country but should work side-by-side with private enterprises to ensure that the highest quality of service is afforded to the public in all areas.

     Within a democratic nation the role of the State is sometimes negatively construed by those who support the prominence of private enterprise within the economy. However, State presence within the economy and various fields such as housing and education is simply the manifestation of a government's commitment to its people; the expression of its desire to contribute to the development of the 'small-man' within the society. Elected officials must be made to ensure that the wealth of the Nation is directed towards the people of the nation, and social programs are essential in guaranteeing this. It must be ensured that private enterprises are not allowed to control and dictate the economy of a nation to the extent that their influence creates an ever-growing gap between the rich and poor.

 

                                        Mikhail E.D. Byng