Prime Minister Owen Arthur of Barbados, who is also the Minister of Finance, recently told Barbadians that the country was entering a period of economic turbulence due to the slowdown in the global economy. Presenting his second Statement of Economic and Financial Policies of the Government to parliament he announced measures that he indicated were designed to restore Barbados to a sustainable path of development.

The measures include new incentives for tourism, manufacturing and agriculture. There will be an additional B$20m (US $l0m) to market Barbados as a tourist destination, a fund to create at least 30 new industrial companies over the next few years and additional financial support for sugar cane farmers.

The Prime Minister also proposed a l0 year tax holiday for investment in the cotton industry, and outlined plans to reduce corporate tax by 2.5% from next year until it gets down to 33%. He said existing tax levels placed local businesses at a disadvantage with their competitors in Caricom and internationally.

The economy in Guyana is also suffering from the global slowdown, noticeably in the timber industry. There is talk of gold prices being further affected, indeed the outlook can't be bright for exports generally in the short term. Many leading businessmen have been publicly complaining that business is bad. It would seem desirable, therefore, for government to announce some short term measures. We suggest three for consideration.

First, push eco-tourism. Try to get any airline that acquires the route rights held by GA2000 to develop packages with Shanklands, Timberhead, Baganara, Iwokrama, Baracara and other resorts to bring tourists here. Give incentives for other resorts to start. Get the Tourism and Hospitality Association of Guyana involved. Mr Richard Humphrey has also done a lot of work in this field and could be asked to help. If air travel is reliable and the price is reasonable people will come. This will provide some jobs and earn foreign currency. This entire sector should be put on the front burner.

As an example of what is possible, a consortium of French, US and United Arab Emirates companies will be investing US $l.8 billion in a commercial and tourist project in the Dominican Republic that will include an international airport a free trade zone, a l,500 unit housing development, a l000 room hotel complex and a marina.

Secondly, start a crash programme in housing along the lines of the programme defined in the National Development Strategy (NDS). Dr Kenneth King had outlined it in his column in Sunday Stabroek in which he summarises various crucial aspects of the NDS. This will create jobs and economic activity as well as a sense of hope.

Thirdly, prioritise six manufacturing industries based on our resources that are likely to be feasible ranging from canning to wood products other than furniture and give Mr Geoffrey da Silva the new Chief Executive Officer of Go-Invest and some businessmen a mandate to go looking for investors in appropriate places.

Prime Minister Arthur has shown the way in an economy that is functioning much better than ours. One can't sit waiting and hoping things will change. Governsment should try to involve the private sector in formulating some crash programmes perhaps along the lines suggested above to create momentum and jobs.