Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

12 costs lower than those which a “cumbersome” central bank would necessitate. He also felt that Barbados’ withdrawal from the ECCA and the Sterling Agreement would lead to some readjustments in the country’s trading patterns. When he addressed the Annual Meetings of the IMF and the World Bank in Washington, D.C. on September 28, 1971, Barrow again sought to justify the decision to establish a central bank. He said that it was “... an indication of the importance which we attach at this stage of our development to an active monetary policy in assisting progressive and orderly economic development.” 10 In the meantime, technical work had started on the relevant legislation. During the Throne Speech of October 14, 1971, Governor-General Sir Winston Scott indicated that the Central Bank of Barbados Bill was being prepared for presentation to Parliament before the end of that year with a view to launching the Bank early in 1972. The work was coordinated by a committee chaired by the financial secretary and included Director of the Economic Planning Unit, Stephen Emtage (later Sir Stephen), Charles Skeete, Cecil Clarke, Neville Nicholls (later Sir Neville), the legal draughtsman, Assistant Secretary (Budget Section) Ministry of Finance, Kenneth Brathwaite and two advisers from the IMF. Brathwaite was appointed secretary to the committee. Under Neville Osborne’s direction, a Cabinet Paper on the establishment of the Central Bank was prepared by the Ministry of Finance. The Cabinet Paper spelt out in precise language the main considerations that informed the administration’s decision to establish a central bank. For example, in Paragraph 5, it was noted that, “The form of organisation of the East Caribbean Currency Authority does not permit it to exercise any power of control over the operations of the commercial banking system in which seven large international banks operate.” Paragraph 6 stated that “... the Government's commitment to an overall development of the economy of Barbados compels it to establish an institution whose main function would be to assist in such development of the economy.” The concluding paragraph underscored how much was resting on the new institution inasmuch as it stated that Government was