Independent Senator and senior economist Dr Dhanayshar Mahabir says it is critical to ask why in 2013 economic growth should be the country's number one economic pressing matter.He said the growth of the economy has been problematic.
Mahabir said the period 2000 to 2008 saw rates of economic growth that were enviable in the developing world. He said in some instances there was growth in excess of five per cent. "But from 2009, we have seen growth in negative territory, stagnation, malaise, recession and depression and we need...if we are to proceed in addressing our economic problems, to really analyse the cause of this malaise, this stagnation.
"While we argue there's been a positive growth in the economy, I think members across the isles in this honourable chamber will all agree that there is a level of stagnation in the economy which we all find unacceptable.
'How did it arise'
Mahabir was making his contribution to the budget debate in the Senate on Friday.Nine members contributed to the debate. The sitting of the Senate was adjourned until tomorrow at 10.30 am.Mahabir said history needed to be reviewed to determine "how we have gotten to this point."He said: "An economy is not something that is akin to a machine.
"It has evolved over time and if we are experiencing errors, difficulties now, it has to be that there was some good reason."He said when the financial crisis emerged in September 2008, few people held the view that the event would have a long-term impact on society and the economy."There was a view that we were immune of the global crisis."Five years later we have seen that we are no where near full recovery."
Mahabir said there was need to examine why the error was an error made for projecting a short recovery, when in fact the signs were there that stagnation was going to be long.He said from 2001 to 2008 the budget of $13 billion grew to $18 billion in 2004 and then in 2005 to $32 billion and by 2008 the figure was $52 billion.