By: Omar Silva, NP Staff Writer

Belize City: Friday, 3rd March, 2023

The global issue of inflation has sharply increased the cost of living, commodities and supplies including the cost of goods and services in Belize. As Belize imports just about everything it consumes, constructs, or seeks to reproduce, rising import costs have contributed to the challenge of inflation. In addition, wages of the common man remain low, exacerbating the negative impacts of inflation on all Belizeans.

To address this issue, the government has established a sub-committee chaired by Minister of Agriculture and Food Security, Jose Abelardo Mai, to develop a short-term framework that could effectively reduce the high-impacts of inflation on those most affected, and also enforce a mechanism to stop what is being reported as rampant price gouging.

However, a comprehensive plan is needed to genuinely bring down inflation in Belize. This would involve identifying the root causes of inflation through a thorough analysis of both internal and external factors, including the country's monetary policy, fiscal policy, productivity, global economic trends, currency exchange rates, and trade policies.

Once the root causes have been identified, the taskforce needs to develop a comprehensive plan that includes short-term and long-term measures. This plan should be based on a clear understanding of the economic realities in Belize and should take into account the country's limited resources and dependence on imports.

Collaboration with stakeholders from all sectors of the economy, including the government, private sector, unions, and civil society, is also critical to ensure that the plan is inclusive, transparent, and widely accepted. The stakeholders should be involved in the process of developing the plan, and their input should be considered in the final version.

To prevent price gouging and other forms of exploitation by merchants, the taskforce needs to strengthen the regulatory framework. This may involve introducing new regulations, enforcing existing regulations more rigorously, and increasing the capacity of regulatory agencies to monitor and enforce compliance.

In addition, promoting local production of goods and services is key to reducing Belize's dependence on imports. This may involve providing incentives to local producers, investing in infrastructure, and supporting research and development.

Finally, educating the public about the causes and consequences of inflation and the measures being taken to address it is critical. This education should be targeted to different segments of the population and should be delivered through various channels, including traditional and social media.

In summary, a multi-pronged approach is needed to combat inflation in Belize. By addressing the root causes of inflation, strengthening the regulatory framework, promoting local production, and educating the public, the taskforce can offer a sustainable solution to bring down inflation and improve the standard of living for all Belizeans.