CBA involved with economics.

Antilliaans Dagblad published a news item, on page 12, following stakeholders talk in Aruba.

As you know, coalition partners MEP & RAIZ, have been conducting discussions with diverse stakeholders, in an effort to find out what hurts and what should be fixed by the next government. They will be writing their joint-governing program, for the next 4 years, based on these conversations.

The news item from 7/27, announced that CBA, Central Bank of Aruba will be involved with economic development, from now on, no more business as usual.

My diligent friends who have been following CBA activities, think it’s a terrible idea.

Why?

The bank’s primary purpose is to watch our country’s financial household, so to speak, and guard against inflation, because inflation makes the cost of living even more expensive, we get less for our money, and as the value of our currency declines, the elderly are squeezed even further with their small pensions. Inflation helps those on the borderline of poverty, cross over.

CBA has not explicitly pushed against GOA, not now, and not in the past, to reduce debt and wasteful spending of future tax revenues.

CBA doesn’t encourage anyone to save.

On the contrary, in 2020, it lent GOA money, which was very nice for the bottom line of secondary banks but terrible for our country as it diverted resources away from our roads, healthcare, education, social care and justice systems.

Remember? The bonds? Sure, you do, it was good for the banks, not for the country.

The news item in Antilliaans Dagblad did not mentioned this primary task of CBA.

Transforming our economy?

Not their job.

CBA should focus on its reason for being, offer pushback against GOA and its wasteful financial habits. Especially since there is NO OTHER control instrument, with our dysfunctional parliament, where the ministers rule.

And don’t you get insulted. You just approved the budget 7 months into the year, a delay which regularly paralyzes all GOA’s branches.

Must we now be worried that instead of serving as the only buffer against inflation, CBA, by its inaction and freshly hatched plans for economic development, may aid the onset of the curse.

My diligent friends think this demonstrates CBA’s disconnect, and simply illusory behavior instead of being focused on their work and strive for a financially healthier country, they decided to switch lanes.

We are paying for an expensive luxury institution without getting value from it in return, they conclude.

One could even argue we would be much better off without it.

Dollarization would take CBA out of business.

The Dutch are examining the option.

Is that why CBA is creating alternative jobs for itself.

 

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July 29, 2021
Rona Coster