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Barbados

 Flag of Barbados

Last reviewed: 04 June 2009

Country information

Map of Barbados

BARBADOS TODAY

Country Facts

Area: 430 sq km; 166 sq miles
Population: 275,000 (June 2007)
Capital City: Bridgetown
People: About 80% of Barbados's population are of African descent, 4% European descent, and 16% mixed. Barbados's population growth rate has been very low, less than 1% since the 1960s.
Languages: English
Religion(s):P rotestant 67% (Anglican 40%, Pentecostal 8%, Methodist 7%, other (e.g. also small Jewish and Muslim communities) 12%), Roman Catholic 4%, other 12%, none 17%.
Currency: Barbadian Dollar (BBD) which is tied to the US Dollar. US$1= BDD1.998
Major Political Parties: Democratic Labour Party (DLP);  Barbados Labour Party (BLP); People's Empowerment Party (PEP).
Government: Barbados is an independent state within the Commonwealth. It has a bicameral parliament consisting of a House of Assembly, with 30 members directly elected to serve a five-year term, and a Senate, with 21 members appointed by the Governor General (12 on the advice of the Prime Minister, two on the advice of the Leader of the Opposition, seven by the Governor General alone). Executive power is vested in the Cabinet chaired by the Prime Minister, who is leader of the majority party in the elected Assembly. Universal suffrage was introduced in 1951. The three political parties are all moderate. The BLP is a party of the centre, but lies to the right of the DLP in the political spectrum. The parties have no major ideological differences: electoral contests and political disputes often have personal overtones. The legal system is based on Common Law.
Head of State: HM Queen Elizabeth II, represented by the Governor-General Sir Clifford Straughn Husbands GCMG KA
Prime Minister: The Hon. David J.H. Thompson, MP
Foreign Minister: Senator Maxine McClean
Membership of international groupings/organisations: Barbados' memberships include: The Commonwealth, CARICOM, Caribbean Development Bank (CDB), the Group of African, Caribbean and Pacific States (ACP), UN, UN Conference on Trade and Development (UNCTAD), UNESCO, Organisation of American States (OAS), the International Fund for Agricultural Development (IFAD), IMF, WHO, the Inter-American Development Bank (IADB), International Bank for Reconstruction and Development (IBRD).

DID YOU KNOW?

The grapefruit originates from Barbados.

HEALTH

Life expectancy (2005 est.): 76.6 years (men: 73.6 years, women: 79.3 years)
Infant mortality (2005 est.): 11 per 1,000 life births

People living with HIV/AIDS (2005): 2700 (UNAIDS)

Adult HIV prevalence (% 2005): 1.5 (UNAIDS) 

HIV/AIDS

Levels of HIV/AIDS in the Caribbean are second only to those of southern Africa. In Barbados. AIDS is now the second biggest killer in the 20 to 45 year age group and most of them are heterosexual cases.

ECONOMY

Basic Economic Facts

GDP, current prices: (US$3,49m) (2007) (EIU)
GDP per capita: US$7,350 (2007) (Central Bank of Barbados)
Annual Growth: 4.3% (2007) (Central Bank of Barbados)
Inflation: 4.2% (October 2007) (Central Bank of Barbados)
Unemployment: 7.1% (Q3 2007) (Central Bank of Barbados)
Major Economic Sectors: tourism, offshore financial services, construction and utilities, sugar, light manufacturing, component assembly for export, agriculture, information technology services.
Major export partners (2006): CARICOM 37.0%, US 10.6%, UK 12.3% (Barbados Statistical Service)
Major import partners (2006): US 37.25%, CARICOM 26.0%, UK 5.9% (Barbados Statistical Service)

After eight years of steady growth in the mid- to late-1990s, the economy contracted slightly at the beginning of the century. The downturn was mainly caused by a slump in the key tourist industry, with falling overall numbers in tourist arrivals and low hotel occupancy, made worse by the events of 11th September 2001. The Government of Barbados launched a series of tourism initiatives to increase airlift capacity and earmarked a substantial amount of money for an advertising campaign aimed at the US and European markets. This resulted in a return to growth, up to a peak of 4.9% in 2004, although this has subsequently fallen slightly to 4.3% in 2007.

The tourism sector, which depends to a high degree on the UK (provides approx. 38% of long stay visitors), performed strongly in 2004 with an 8.8% increase in long stay visitors and a 25% increase in cruise ship passengers but experienced a 3.8% decline in 2005 (0.8% fall in long-stay, 21.6% fall in cruise ship arrivals).  But 2007 saw the industry rebound, growing by 3.3% (cruise ship passenger arrivals rose by 12.3% in the first 11 months of 2007)

2006 saw a slight recovery in the tourism sector - output grew by 2.5% compared to the decline in 2005. The industry grew by 3.3% in 2007, with cruise ship passenger arrivals being up by 12.3% on 2006 figures, with the added benefit of a new direct flight between Florida and Barbados. Visitor numbers from other Caribbean countries have fallen due to high regional airfares. However, high fuel costs, shorter cruise ship itineraries and fewer cruise ship visits to Barbados remain of concern to industry operators, along with uncertainties over UK consumer demand. Similar slowdowns in mainland Europe will have a slight impact, but they are much less important to the economy in comparison with the British market.

Despite plans to restructure and diversify the sugar industry in the face of EU price cuts, output rose by 3.1% in the 2007 crop season. However, revenues were the same, with the fall in the EU price offset by the increase in the value of the Euro. Further price cuts will be made next year, with 36% cuts to be made by 2010. Proposals for restructuring the industry remain under development. The future of the EU banana regime is also uncertain, with the tariff and quota system being challenged in the WTO by Ecuador, Colombia and the USA. Without some form of protection, the regional banana industry is unlikely to survive.

Offshore oil and gas exploration has seen high levels of interest from foreign companies.  While there is no guarantee of finding reserves, initial indications are that this could be worth pursuing.  Any success would have the potential to transform the economy, moving it away from a significant reliance on tourism.

Inflation in October 2007 was down to 4.2% compared to 7.6% in October 2006. Strong capital inflows and increased deposits boosted bank sector liquidity. The country’s largest conglomerate, Barbados Shipping & Trading (BS&T) has been taken over by Neal & Massy, a Trinidadian company, significantly reducing the proportion of production capacity controlled from within Barbados. There are therefore raised concerns over the creation of semi-monopolies in some sectors.

The government recorded a fiscal deficit in the first half of 2007 after a period of surpluses. Total government expenditure has increased by 9.7% compared to the previous year, although capital spending is down following the completion of many major investment projects. An IMF Article IV mission in July stressed the need for fiscal consolidation to help reduce the current account deficit and public debt.

Barbados was taken off the OECD's list of tax havens in January 2002.

HISTORY

The original inhabitants of Barbados were Arawak Indians, who were driven off the island around AD 1200 by invading Carib Indians from Venezuela. The Carib Indians in turn abandoned the island around 1500. Portuguese explorer Pedro a Campos in 1536 named the island Los Barbados (Bearded Ones), presumably after the long, hanging aerial roots of the island's fig trees, which resemble beards. English settlers established the island’s first European settlement in 1627. In the 1640s the colonists planted their fields with sugarcane and brought slaves to the island to work on the sugar plantations. The sugar industry continued to boom until the 19th century. Even after the abolition of slavery, large estates owned almost all the arable land and most black islanders had to stay working on the plantations, for lack of better opportunities. Barbadians emigrated to other countries in the Caribbean and to work on the Panama Canal. Barbados gained internal self-government in 1961 and became an independent nation on 30 November 1966. Since independence, Barbados has been a stable democracy.

BBC News Country Timeline: Barbados

INTERNATIONAL RELATIONS

Relations with Neighbours

Barbados has generally good relations with its CARICOM neighbours, especially with the Eastern Caribbean countries. It can be seen as a role model for small developing countries. Barbados is one of the three countries that have ratified the establishment of a Caribbean Court of Justice (CCJ). The CCJ, which has come into force with these three ratifications, but is not yet operational, will be a Court of First Instance for the Caribbean Single Market and Economy. It will also replace the Judicial Committee of the Privy Council as highest Court of Appeal of Barbados.

There has, in the past, been tension between Barbados and Trinidad and Tobago over a disputed maritime area. Arbitration hearings in the matter were heard in London in October 2005 and a ruling was given in April 2006 broadly in Barbados' favour. This has enabled the country to move ahead with plans for oil exploration within its own territorial waters. Both countries claimed victory but Barbados is seen to have come out on top.

Relations with the International Community

Barbados is an influential player in CARICOM, the Commonwealth and the ACP. This was emphasised in August 2002, when CARICOM Heads of Government gave then Prime Minister Owen Arthur the task of setting up a regional stabilisation fund to mitigate the economic effects of external shocks to the region. Barbados is also a centre for regional organisations, being the location of UN House, the new Eastern Caribbean offices of six UN agencies. These include the Development Programme, Food and Agriculture Organisation, the International Telecommunications Union, the Children's Fund, the International Drug Control Programme and the Development Fund for Women. Prime Minister David Thompson holds the CARICOM Portfolio for the CARICOM Single Market and Economy (CSME) which is now up and running with six CARICOM countries.

Relations with the UK

UK-Barbados relations are good. There are about 4,500 British citizens resident in Barbados and about 250,000 British tourists visit annually.


Transforming the Caribbean Economy, January 2007

Cultural Relations with the UK

Cultural links are strong and varied with many exchanges.

Recent Outward Visits

Deputy Prime Minister John Prescott, paid an official visit to Barbados in April 2007. Meg Munn, FCO Minister for the Caribbean, visited Barbados in April 2008.

Recent Inward Visits

PM David Thompson visited London in April 2009 when he met FCO Minister Lord Malloch-Brown and spoke on "The Caribbean and the Global Crisis" at Canning House.

GEOGRAPHY

Barbados is the most easterly of the Caribbean islands. Most of the island is relatively flat, with low, gentle hills in the interior, except for the north-east, which rises up to 340 metres. The west coast has white sandy beaches and calm turquoise waters. The east side of the island faces the more turbulent Atlantic. Coral reefs surround most of the island.

TRADE AND INVESTMENT


Trade and Investment with the UK


Barbados is a small market in global terms yet remains a key market for UK companies doing business in the region. The following trade figures do not take into account the considerable levels of invisible trade such as banking, insurance, consultancy, property investment and tourism (out of which 38% comes from Britain) or British goods reaching Barbados via entrepots.


UK/Barbados Visible Trade (£m)

 

2004

2005

2006

UK Exports

42.2

55.6

47.0

UK Imports

20.0

23.0

19.9


Main UK exports to Barbados are transport equipment, manufactured articles, food and beverages and chemicals. The UK's primary import from Barbados is sugar, accounting for over 50% of the UK's imports from Barbados. The Barbados authorities are keen to attract foreign direct investment into the country, particularly in manufacturing, tourism, information technology and construction. An Investment Promotion and Protection Agreement (IPPA) and a double taxation agreement are in force between the 2 countries. There has traditionally been a strong programme of trade promotion activity between Barbados and the UK. The Trade and Investment Section of the British High Commission, Bridgetown has hosted several trade missions in recent years.


Money Laundering


Anti-money laundering legislation has been passed and a Financial Intelligence Unit established.

POLITICS

The Environment

The Barbados Government takes environmental issues seriously and is pressing for the Caribbean Sea to be recognised internationally as a Special Area in the context of sustainable development.

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Contacts

Barbados, Bridgetown, British High Commission

Address:

British High Commission
Lower Collymore Rock
PO Box 676
Bridgetown

Telephone:

(1) (246) 430 7800

Fax:

(1) (246) 430 7851 Chancery
(1) (246) 430 7860 Management/Consular
(1) (246) 430 7826 Trade & Investment/Information

Email: britishhcb@sunbeach.net

Office hours:

Mon-Thurs: 1200-2000;Fri: 1200-1700 GMT
Mon-Thurs: 0800-1600; Fri: 0800-1300 Local Time

Website: http://www.ukinbarbados.fco.gov.uk

Barbados, Bridgetown, Department for International Development


Barbados