Renowned economist Jeremy Stephen has called on the private sector to abandon its risk-averse mindset and embrace bolder investments, emphasizing that over-reliance on government spending is hampering economic growth and perpetuating unsustainable public debt levels. Speaking in response to the Latin American Economic Outlook 2025 report by the Organisation for Economic Co-operation and Development (OECD), Stephen highlighted the urgent need for governments to prioritize mobilizing private investment and move away from ineffective tax incentives. He stressed that innovative financing mechanisms, such as green bonds, could play a pivotal role in attracting both local and foreign investors. Stephen argued that excessive dependence on government initiatives fosters complacency, stifling the economy’s potential. He pointed to Barbados’ weak private sector participation as a key factor behind its unsustainable debt, urging businesses to take calculated risks despite the challenging environment. The OECD report underscores Barbados’ heavy reliance on tourism, which leaves the economy vulnerable to external shocks and limits inclusive growth. It advocates for diversification into sectors like creative industries, renewable energy, and digital services to build resilience. Stephen also criticized the lack of private initiatives in exploring new tourism markets, citing the absence of self-funded roadshows to regions like China and the Middle East. He emphasized the need for a stronger enabling environment to encourage risk-taking and innovation. The report recommends a comprehensive strategy to mobilize private investment, reduce government dependency, and improve fiscal space. Stephen concluded that redefining the public-private partnership model is essential for reducing Barbados’ debt and securing sustainable growth.