Overseas Business Risk - Barbados

We aim to provide information on this page on the key security and political risks which UK businesses may face when operating in Barbados

Political and Economic

Political risk is low on the island. Barbados is an independent state within the Commonwealth with over 300 years of parliamentary democracy. There exists a bicameral Parliament similar to that of the UK. General elections are held every five years and have been relatively free of violence over the years. Barbados boasts a small open economy that is largely dependent on tourism, light manufacturing and International Business. Economic risks are low.

The Democratic Labour Party (DLP) won the January 2008 General Elections, securing 20 of the 30 seats in the House of Assembly to the Barbados Labour Party’s 10 (since reduced to 9 as one of its members crossed the floor to become a member of the ruling DLP). The Barbados Labour Party (BLP) had been in office for 14 years prior to the January 2008 elections. The current Prime Minister, Hon. Freundel Stuart took over the reign of leadership in October 2010 following the untimely death of the former Prime Minister David Thompson.

Barbados has one of the most prosperous and highly developed economies in the Eastern Caribbean with a well educated, skilled work force and a transport and telecommunications infrastructure that is among the best in the Region. The population is estimated at 284,000 (January 2011).

The economy is experiencing some recovery after two years of negative growth, the resultant fallout from the worldwide recession that commenced in 2008. Growth of approximately 2.5 % is predicted for 2011 by the Central Bank of Barbados. International reserves stood at Bds$1.47 Billion at the end of March 2011, Bds$20.0 Million above that recorded at the end of 2010, and equivalent to about 20 weeks worth of imports of goods and services. The average rate of inflation at January 2011 increased to 6%, due mainly to the rise in international oil and commodity prices. The unemployment rate at December 2010 was 10.5%.

The tourism sector remains the leading sector for foreign exchange earnings. However, financial services, light manufacturing, construction and agriculture continue to be important contributing sectors to the economy. Activity in the energy sector (particularly renewable energy) has become a priority for the Government.

Business meeting in the British Embassy

The UK accounts for the main source of visitors to Barbados (about 35%). A total of over 536,000 (stay over) tourists came to Barbados in 2010. This tourism sector accounts for about 15 % of total employment and 60% of foreign capital inflows.

Although Barbados is a small island, the UK has enjoyed long established trading links with the island and it remains an important market for UK exporters. The main UK exports to Barbados include chemicals, vehicles and parts, farm machinery, pharmaceuticals and foodstuff. The main imports to the UK from Barbados comprise sugar and other agricultural produce.

More information on political risk, including political demonstrations is available in FCO Travel Advice.

Bribery and Corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

In 2010, Barbados was ranked 17th out of 178 countries in the Transparency International’s corruption perception index. (CPI)

There exist low levels of bribery and corruption in Barbados. Government’s commitment to providing an efficient social services network, has contributed to mitigate the risks involved..

Visit the Business Anti-Corruption portal page providing advice and guidance about corruption in China and some basic effective procedures you can establish to protect your company from them.

Read the information provided on our Bribery and corruption page.

Terrorism Threat

The threat of terrorism in Barbados is low. A well-trained police force, defence force and a Regional Security System facility have all helped to minimize this risk.

Read the information provided on our Terrorism threat page

Protective Security Advice

Barbados is generally a safe country. However, it is advisable that you do not let your guard down and that you maintain the same level of personal security as you would in the country that you are domiciled (e.g avoid beaches and unlit streets at night).

Read the information provided on our Protective security advice page

Intellectual Property

Infringement of copyright and intellectual property is low in Barbados. The Department of Corporate Affairs and Intellectual Property (CAIPO) is responsible the administration of these intangibles on the island. Modern legislation and conventions are adhered to by CAIPO (e.g The Copyright Act 1998-4; The Convention Establishing the World Intellectual Property Organisation).

Read the information provided on our Intellectual Property page.

Organised Crime

This is not considered a major threat in Barbados. Organised crime tends to be limited to the transhipment of illegal drugs (mainly marijuana) via small boats throughout the Eastern Caribbean island chain, including Barbados.

Read the information provided on our Organised crime page.