PRESENTATION FORMAT
 Brief overview of the profile of Barbados
 Overview of macro-economy (key indicators)
 Very brief overview of Barbados’ cultural profile
 Main focus is “The Barbados Competitiveness Programme”
(very broad, considered by many to be quite ambitious)!!
 Questions may be asked during and/or after presentation
BARBADOS COUNTRY REPORT
Barbados
COUNTRY PROFILE
Capital:
Location:
Climate:
Literacy :
Population:
Size (Land Area):
Currency:
Bridgetown
13.10N 59.32W
Tropical (16-31 Celsius)
97%
275,000
166 sq miles
BDS (1 us=1.98Bds)
Barbados Structural Characteristics
 Small Open Economy
 Low diversification – narrow domestic production base i.e.





production is concentrated on few goods and services
Susceptible to natural disaster and external shocks
Small market size
Limited natural resources and heavy dependence on
imports (final and intermediate goods)
Services Oriented. Tourism is the major foreign exchange
earner. Financial and Business Services also important
High Debt/GDP ratio
INTERNAL ENVIRONMENT
WEAKNESSES
STRENGTHS
•Weak Business Facilitation
•Political stability
•Loss of competitiveness
•Long tradition of economic
& social policy & planning
•Weak entrepreneurial culture
•Paucity of R&D & innovation
•Market imperfections:
commercial structure
considered to be oligarchic
•Highly trained workforce
•Competitive investment
incentive regime
•Reliable infrastructure
Macro-economic Fundamentals
Real GDP Growth (%)
Traded
Sugar
Non-Sugar Agriculture
& Fishing
Manufacturing
Tourism
Non-Traded
Mining & Quarrying
Electricity, Gas & Water
Construction
Wholesale & Retail
Government
Transportation, Storage
& Communication
Business & Other Services
Inflation
Unemployment
2002
0.7
(2.2)
(10.0)
2003
2.0
2.7
(19.0)
2004
1.4
(8.3)
(5.4)
2005
4.0
(0.8)
11.3
2006
5.7
8.1
(12.0)
2007
1.7
(7.3)
0.9
2008
0.3
(0.3)
(6.9)
2009 2010
(4.1)
0.3
(4.3) (0.4)
1.2 (20.3)
(0.6)
1.0
(2.7)
1.8
6.4
3.5
7.7
1.2
6.5
4.7
(1.7)
7.0
1.7
(15.6)
3.0
0.6
4.1
(3.8)
(8.1)
2.2
(12.8)
5.1
9.6
1.8
2.8
6.1
5.6
6.9
2.1
(5.3)
5.6
8.0
(0.6)
14.0
5.3
3.5
(2.9)
(0.7)
18.1
5.0
(3.1)
9.5
(0.4)
7.0
3.0
2.8
(1.2)
(12.9)
4.5
(5.9)
1.3
0.1
6.5
3.0
2.9
3.6
(2.2) (12.2)
0.5
(3.4)
0.5
(4.1)
(7.9) (37.3)
(0.4)
0.7
(5.2) (18.2)
(0.8) (4.7)
3.0
3.0
(2.9)
(2.3)
0.2
10.3
2.9
4.5
1.6
11.0
5.1
5.1
1.4
9.8
4.9
5.0
6.1
9.1
5.9
6.0
7.3
8.7
6.1
6.0
4.0
7.4
3.0
2.2
8.1
8.1
(2.8)
(2.9)
3.6
10.0
Annual
Average
2011
0.8
(2.5)
(7.9)
2012
0.1
(3.9)
4.4
(1.1)
(4.4)
3.6
0.4
10.5
2.1
(9.6)
2.3
1.0
(5.6)
(5.3)
(0.2)
1.7
(13.6)
(1.4)
10.4
0.0
3.0
(5.5)
(4.9)
(3.7)
1.2
(5.4)
0.9
(7.6)
1.7
1.9
(0.3)
(2.5)
(1.1)
2.1
(4.9)
1.9
(0.5)
2.6
2.7
0.3
1.0
5.8
10.8
0.6
1.2
9.5
11.2
1.8
3.0
4.5
11.6
2.3
2.6
4.7
9.8
1.2
(1.7)
(5.8)
Economic Challenges
 Continued weak economic growth (GDP contracted by 0.4 percent in Q1 2013).
 6.0% decline in tourism arrivals (end of 2012) due to weak external markets,
mainly the US and UK ( Visitor arrivals were down 9.0 percent in Q1.2013 which
led to a 2.0 percent decline in tourism output to date)
 While inflationary pressure has abated (inflation rate fell from 9.5% in 2011 to
4.5% in 2012), volatile food prices remains a concern during 2013
 While the unemployment rate at the end of 2012 rose slightly to 11.6%,
compared with 11.2% end of 2011, it still remains uncomfortably high
 Foreign reserves levels remains relatively stable at about 19 weeks of imports,
expectations are that this could fall slightly in 2013
 Increase in the fiscal deficit to 7.3% of GDP due to a 5.7% contraction in
current revenues, while total expenditures rose by 3.7%
 VAT receipts fell by 7.o for fiscal year 2012/13 due to slow down in economic
activity
Barbados Economic Performance
2002-2012
 Pre-crisis Growth Analysis:
 Prior to 2008, real gross domestic product (GDP) grew by
an annual average rate of 2.6 percent, reaching as high as
4.0 percent and 5.7 percent in 2004 and 2005,
respectively.
 Post crisis Growth Analysis:
 Since the onset of the global economic downturn in
2008, GDP contracted below pre-crisis levels (turned
negative in 2009 but regained some momentum around
2010 and has since then has remained virtually flat;
albeit below 1.0%)
Comparative Regional GDP Growth
Where are we Now?
Basic Requirements
•Institutions
•Infrastructure
•Macroeconomic environment
•Health and primary education
Factor Driven
Economies
Stage 1
Efficiency Driven
Innovation and Sophistication
Factors
•Business sophistication
•Innovation
Efficiency Factors
•Higher education and training
•Goods market efficiency
•Labour market efficiency
•Financial market development
•Technological readiness
•Market size
Economies
Stage 2
Innovation Driven
Economies
Stage 3
Problematic Factors for Doing Business in Barbados
Crime and theft
2%
Inadequate
supply of
Tax regulations
infrastructure
3%
4%
Government instability/ coups
Policy instability
1%
1%
Inadequately educated
workforce
Corruption
2%
Poor public health
1%
0%
Foreign currency regulations
5%
Inefficient Government
Bureaucracy
18%
Restrictive labour
regulations
5%
Access to financing
15%
Inflation
9%
Tax rates
10%
Insufficient capacity to
innovate
10%
Poor work ethic in national
labour force
15%
The Barbados Competitiveness
Program (BCP)
Objectives:
To increase the competitiveness of Barbados by
supporting initiatives to:
(i)
rationalise
the
incentive
system
and
regulations
to
ensure
a
coherent
framework to support business development
(ii)
rationalise the institutional architecture of
business development services and
introduce
a framework for clustering initiatives
Objective Cont’d
(iii) improve logistics and trade facilitation,
lower the cost of the
movement
of
goods and people, and enhance access to
infrastructure through Public Private
Partnerships (PPPs), among other
modalities
(iv)
strengthen public-private dialogue to
develop and implement a medium- term
competitiveness strategy
Programme Components
(i)
ensuring a coherent framework to
support business development
incentives and regulations
(ii) ensuring a coherent BDS architecture
for business development
(iii) improving trade logistics and trade
facilitation and enhancing access to
infrastructure
(iv) strengthening public-private
dialogue on competitiveness
I. Ensuring a Coherent Framework to Support Business
Development: Incentives and Regulations
(A) Taxes and Incentives
 a Computable General Equilibrium (CGE) Model
 a Tax Expenditure Budget
(B) Business Climate Reform
 the approval process for domestic and international
investments- Physical Investment Permits
 the expansion of access to credit through the
rationalisation of government-sponsored development
funds
(ii) Ensuring a Coherent Business Development Services (BDS)
Architecture for Business Development
(A) Improving BDS and Innovation
 Evaluation of existing institutions
 Institutional strengthening of Oversight Unit
 Development of a Strategic Plan, new BDS instruments and
an improved monitoring and evaluation system
 Institutional strengthening of new BDS agencies inclusive of
staff training
(B) Pilot Cluster Programme
 Design of the pilot cluster implementation unit and training
of staff
 Design and setup of a Monitoring and Evaluation System
 Cluster selection
 Development of a strategic plan and the implementation of
cluster support activities.
(iii) Improving Trade Logistics and Trade Facilitation and
Enhancing Access to Infrastructure
 Trade Logistics and Trade Facilitation
 Design of a Central Cargo Examination Facility
(CEEF);

Training Visit to a regional CCEF
 Establishment of an Electronic Single Window (ESW)




Update of the Port’s Management Information System
Update of Customs Management Information System
Implementation of a document Management System and IT
upgrades for all agencies related to the ESW; and
Training of the public and private sector to use the ESW
(iii) Improving Trade Logistics and Trade Facilitation and
Enhancing Access to Infrastructure - Cont
 Transportation Sector Improvements
 Overall transport sector study

will include the development of a transport sector strategy
document that will assist in establishing strategies and
priorities over the medium to long term
 Road infrastructure analysis

An analysis of the medium- to long-term plan will be
carried out with respect to the major highways, and
secondary, feeder and link roads, considering the
possibilities of extending, widening, upgrading and
improving them
(iii) Improving trade logistics and trade facilitation and
enhancing access to infrastructure -Cont
 Enhanced Access to Infrastructure through
Public-Private Partnerships
 The adoption of a Public-Private Partnership (PPP)
procurement methodology
 Evaluation of potential PPP projects and submission of
a recommendation of the PPP project candidates to the
Cabinet Committee on Infrastructure
 Provision of “hands on training” to the public
stakeholders involved in the PPP project cycle; and
 Design of a robust monitoring and evaluation system
(iv) Strengthen public-private dialogue to develop and
implement a medium-term competitiveness strategy
(A) Design and strengthening of the
Commission on Competitiveness and
establishment of its Technical Unit
 Redesign of the Commission on Competitiveness; and
 The establishment of the Commission’s Technical Unit
(B) The development of a National
Competitiveness Strategy and Action
Plan.
 Provide support to the services inputs required for
developing an integral/systematic Medium Term
National Competitiveness Strategy (NCS)
Institutional Context
Social Partnership Agreement
Barbados National Standards Institution (BNSI)
Financial Services Commission (FSC)
Fair Trading Commission (FTC)
Port Expansion
THANK YOU!