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! ! ! !Services!Sector! Development!Strategy!

! ! DRAFT!FINAL!REPORT! December!2013 PREPARED&BY&

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Project Recipient Project Funded by Barbados Coalition of Services Commonwealth Secretariat Industries PX/BRB/0735

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Project Implemented by

! ! ! CTA$Economic$&$Export$Analysts$Ltd$ 505#Pinner#Road# Harrow## HA2#6EH# United#Kingdom# # Tel:#(+44)#870#199#5835## Email:#[email protected]### Web:#www.ctaeconomic.com# !

Memberships

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! ! ! ! ! ! Acknowledgements!

This!report!is!based!on!research!undertaken!between!29th!April!and!30th!November!2013.!It! involved! over! 120! interviews! in! Barbados,! review! of! more! than! 80! research! papers,! policy! documents!and!statistical!reports,!extensive!market!research!on!global!services!markets,!two! stakeholder! workshops! and! close! consultation! with! the! Commonwealth! Secretariat,! Project! Steering!Group!and!the!Barbados!Coalition!of!Services!Industries!(BCSI).!The!team!is!extremely! grateful!for!the!organisation!and!guidance!provided!by!BCSI!and!the!openness!and!cooperation! of! all! participants.! However,! the! findings,! opinions! and! recommendations! expressed! in! this! report! remain! those! of! the! project! team and! do! not! necessarily! reflect! those! of! the! Commonwealth!Secretariat,!BCSI,!Government!of!Barbados!or!Project!Steering!Group.!

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Contents! 1! Executive!Summary!...... !1! 1.1! Background!...... !1! 1.2! Challenges!to!Developing!Services!...... !2! 1.3! Sector!Profiles!...... !3! 1.4! Stakeholder!Engagement!...... !3! 1.5! Immediate!Opportunities!...... !4! 1.6! Guidelines!for!Pilot!Survey!of!Education!Sector!...... !5! 1.7! Services!Sector!Development!Strategy!...... !6! 1.8! Implementation!Structures!...... !7! 1.9! Next!Steps!...... !8! 2! Background!...... !9! 2.1! Services!in!the!Economy!of!Barbados!...... !9! 2.2! Disaggregation!of!services!sector!in!Barbados!...... !11! 2.3! National!Trade!Policy!...... !13! 2.4! International!Trading!Environment!...... !16! 2.5! MediumNterm!Growth!and!Development!Strategy!(MGDS)!2013N2020!...... !21! 3! Challenges!to!Developing!Services!...... !23! 3.1! Key!Constraints!...... !23! 3.2! Institutional!Framework!for!Support!to!the!Services!Sector!...... !24! 3.3! Previous!Services!Strategy!and!Implementation!...... !31! 4! Sector!Profiles!...... !34! 4.1! Business!Process!Outsourcing!(BPO)!...... !34! 4.2! International!Business!Companies!(IBC)!...... !37! 4.3! ICT!Services!...... !39! 4.4! Tertiary!Education!Services!...... !42! 4.5! Construction!Related!Professional!Services!...... !47! 4.6! Creative!Industries!...... !50! 4.7! Health!and!Wellness!!...... !52! 4.8! Business!Support!Services!...... !57! 5! Stakeholder!Engagement!...... !61! 5.1! Inception!Phase!...... !61! 5.2! 1st!Stakeholder!Workshop!...... !61! 5.3! Validation!Workshop!...... !62! 6! Immediate!Opportunities!...... !74! 6.1! Boutique!Wellness!Product!Development!...... !74! 6.2! Business!Processing!Outsourcing!–!Medical!Transcription!...... !79! 6.3! English!Language!Training!...... !80!

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6.4! Commercial!Art!...... !82! 7! Guidelines!for!Pilot!Survey!of!Education!Sector!...... !85! 7.1! Introduction!...... !85! 7.2! Survey!Construction!...... !88! 7.3! Survey!Techniques!...... !93! 7.4! Survey!Questions!...... !97! 8! Services!Sector!Development!Strategy!...... !98! 8.1! Overall!Objectives!...... !98! 8.2! Key!aims!of!the!strategy!...... !99! 8.3! Services!Sector!Development!...... !100! 8.4! Services!Upgrading!...... !107! 8.5! Sector!brand!development!...... !113! 9! Implementation!Structures!...... !115! 9.1! Introduction!...... !115! 9.2! Implementation!structure!...... !115! 9.3! Facilitation!and!Monitoring!...... !123! 9.4! Outline!Workplan!...... !130! 10! Next!Steps!...... !137! 10.1! Strategy!set!up!phase!...... !137! 10.2! Implementation!JuneNDec!2014!...... !138! 10.3! Final!Workshop!...... !138!

Annexes!

Annex A: Terms of Reference

Annex B: List of Consultations

Annex C: References

Annex D: Acronyms Used in this Report

! ! ! ! ! Executive!Summary! !Draft!Final!Report!

1 Executive)Summary! The! following! chapter! provides! a! summary! of! the! Final! Report! including! the! draft! Services! Sector! Development! Strategy! prepared! for! the! BCSI! and! national! stakeholders! for! review,! consideration,! adaptation!and!adoption.!

1.1 Background!

SERVICES!IN!THE!ECONOMY!OF!BARBADOS!

! Services!are!an!important!component!of!the!Barbados!economy!accounting!for!65%!of!GDP!and! employing!over!80,000!people.! ! NonNtraditional!services!exports!(excluding!mainstream!tourism!and!financial!and!insurance! services)!total!US$!804.8!million!which!is!over!50%!more!than!the!export!of!goods!(US$!520! million).! ! Services!exports!in!Barbados!have!been!declining!over!the!last!five!years!with!average!growth!of!N 1.4%!per!annum,!compared!with!growth!in!global!services!markets!of!5.2%!per!annum!over!the! same!period.!

DISAGGREGATION!OF!SERVICES!SECTOR!IN!BARBADOS!

! Research!during!the!scoping!mission!has!increased!the!understanding!of!the!US$!2.8!bn!services! sector!in!Barbados!and!the!US$!1.6!bn!services!exports.!However,!even!although!figures!appear!to! closely!aligned!with!the!composition!of!each!category,!these!figures!are!not!very!rigorous!and!need! to!be!regarded!cautiously.!! ! This!is!not!a!substitute!for!a!more!rigorous!analysis!of!the!composition!of!each!service!sector!in!the! Barbados!economy.!!!!

NATIONAL!TRADE!POLICY!CHALLENGES!

! There!is!a!lack!of!“services!culture”!in!Barbados,!despite!its!importance!to!the!economy.!! ! There!is!much!duplication!amongst!agencies!in!Barbados,!which!wastes!resources.! ! Policy!and!strategy!decisions!are!not!made!on!evidence!and!therefore!government!and!its!agencies! cannot!plan!effectively.! ! There!is!a!need!for!better!monitoring!and!evaluation!of!activities!to!better!understand! effectiveness!through!strengthening!of!institutions.!

INTERNATIONAL!TRADING!ENVIRONMENT!

! Under!the!General!Agreement!on!Trade!in!Services!(GATS),!Barbados!has!made!specific! commitments!in!only!4!of!the!12!sectors,!and!21!of!the!160!subsectors! ! Barbados!is!granted!preferential!market!access!in!services!to!the!rest!of!CARICOM!under!CSME,! European!Union!under!the!EPA!and!is!in!the!process!of!negotiations!with!Canada!under!CARIBCAN.!

MEDIUMOTERM!GROWTH!AND!DEVELOPMENT!STRATEGY!(MGDS)!2013O2020!

! The!MediumNterm!Growth!and!Development!Strategy!(MGDS)!2013N2020!aims!to!sustain!private! sector!and!investment!led,!productivity!and!export!driven!growth.! ! This!strategy!was!launched!in!September!2013!and!has!four!(4)!goals!and!twenty!(20)!objectives.!! ! The!economic!growth!target!is!4.5!per!cent!GDP!growth!by!2020.!!

! www.ctaeconomic.com! 1! ! Barbados!Services!Sector! Development!Strategy!

Executive!Summary! !Draft!Final!Report!

! However,!in!terms!of!concrete!actions,!the!MGDS!is!very!vague!and!does!not!define!precise! strategies!or!activities!beyond!more!general!aims!and!the!need!to!define!activities.!! ! With!specific!regards!to!services,!there!is!reference!to!strategies!for!nonNtraditional!services! (excluding!mainstream!tourism).!

1.2 Challenges!to!Developing!Services!

KEY!CONSTRAINTS! !

! Limited!understanding,!knowledge!and!appreciation!of!the!services!sector!(outside!mainstream! tourism!and!financial!services)!and!limited!statistics!available!to!show!the!important!contribution!to! the!economy.!! ! Small!scale!of!both!sectors!and!firms!with!the!majority!of!activity!and!exports!in!each!sector! concentrated!in!a!few!firms!.! ! Limited!understanding!of!services!as!a!business,!with!firms!concentrating!on!a!narrow!focus!of!their! “profession”!rather!than!“the!business!itself”!and!general!lack!of!business!acumen!in!the!services! sector.! ! Lack!of!cooperation!amongst!the!service!providers!and!amongst!business!support!agencies,! regulators!and!policy!makers!and!between!private!and!public!sector.! ! Implementation!deficit!in!Barbados!with!strong!participation!in!planning!but!a!long!history!of!little! action!on!implementation.!

INSTITUTIONAL!FRAMEWORK!FOR!SUPPORT!TO!THE!SERVICES!SECTOR!

! There!is!a!wide!range!of!institutions!tasked!to!provide!support!and!improve!services!business,!and! wider!private!sector!in!general.!! ! However,!the!majority!of!these!have!overlapping!mandates,!are!poorly!resourced,!are! oversubscribed!and!provide!poor!levels!of!support!to!business.!! ! There!is!a!real!need!for!rationalisation!and!reform!of!some!of!these!organisations.!

PREVIOUS!SERVICES!STRATEGY!AND!IMPLEMENTATION!

! In!2005,!The!Commonwealth!Secretariat!funded!through!Caribbean!Export,!a!Strategic!Marketing! Plan!for!the!Promotion!of!Professional!Services!Exports!for!Barbados!which!was!published!in!2007.! ! The!report!recommended!the!formation!of!industry!working!groups!for!each!sector!that!comprise! leading!representatives!of!the!public!and!private!sectorsled!by!the!Barbados!Investment!and! Development!Corporation!(BIDC).! ! The!strategy!was!approved!but!no!task!force!or!working!groups!were!established!or!mechanism!to! supervise!or!monitor!implementation.!! ! BIDC!was!tasked!to!implement!the!strategy!but!did!not!follow!the!workplan!N!!it!selectively! undertook!trade!missions!and!participated!in!some!trade!fairs!in!the!six!sectors!identified.!This!was! neither!a!consistent!or!cohesive!approach.!!

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Barbados!Services!Sector! ! 2! www.ctaeconomic.com! Development!Strategy! ! ! Executive!Summary! !Draft!Final!Report!

1.3 Sector!Profiles!

! BPO! IBC! ICT! Tertiary! Construction! Creative! Health! Business! Education! related! Industries! and! Support! professional! wellness! Services! services! Global!value! US$!135! na! US$! US$!40! US$!1,700! US$!800! US$!100! na! of!sector! billion! 1,200! billion! billion! billion! billion! bllion! Value! US$!55! US$!63! US$!192! US$!150! US$!5! US$!5! US$!25! US$!49! proposition! million! miilion! million! million! million! million! million! million! (medium! term)! Employment! 2,000! 750! 800! Few! 100s! 100s! High! High! generation! direct! direct! direct! educators! 100s! 100s! jobs! jobs! jobs! with! many! indirect! jobs!! Quality!of! Medium! LowN High! Mixed! High! Medium! High! Medium! job!! medium! ! Ownership! Mixed! FDI! Local! Local! Local! Local! Mixed! Local!

Ease!of! Easy! Hard! Medium! Easy! Medium! Medium! Mixed! Hard! realisation!

Long!term! Good! Good! Good! Good! Low! Low! Good! Good! growth! prospects!

1.4 Stakeholder!Engagement!

INCEPTION!PHASE! !

! A!mission!to!Barbados!was!undertaken!in!May!2013!to!better!understand!the!capacities,!structures! and!scope!existing!services!sectors!.! ! Meetings!with!a!broad!range!of!stakeholders!including!BSCI,!government!departments,!private! sector!associations!and!government!support!agencies!and!regulators!were!undertaken.! ! An!open!discussion!on!the!key!findings!of!the!scoping!mission!was!undertaken!with!the!Project! Steering!Group!to!provide!guidance!on!the!future!direction!of!the!strategy!development.!

ST 1 !STAKEHOLDER!WORKSHOP!

! Detailed!market!research!on!the!broad!range!of!nonNtourism!services!subNsectors!present!in! Barbados!was!undertaken!to!examine!the!potential!for!each!of!these!subNsectors!as!well!as! cumulatively!for!the!services!sector!as!a!whole.!This!assessment!formed!the!Progress!Report.!!

! www.ctaeconomic.com! 3! ! Barbados!Services!Sector! Development!Strategy!

Executive!Summary! !Draft!Final!Report!

! These!findings!were!presented!and!discussed!at!two!stakeholder!workshops!in!July!2013.!The!first! stakeholder!group!comprised!associations!whilst!the!second!stakeholder!group!comprised!private! and!public!sector!organisations!on!the!Project!Steering!Group.!! ! The!discussions!on!the!findings!of!both!the!inception!and!progress!report!informed!and!guided!the! preparation!of!the!draft!Services!Sector!Development!Strategy.!

VALIDATION!WORKSHOP!!

! Stakeholder!consultations!regarding!the!draft!Services!Sector!Development!Strategy!were!held! during!October!2013.!These!involved!working!sessions!to!assess!the!options,!make! recommendations!and!changes!as!necessary!to!the!strategies.!!! ! These!were!further!discussed!and!validated!at!a!plenary!discussion.!! ! The!consultant!responded!and!made!appropriate!changes!to!the!strategy!as!a!result!of!these!inputs! from!this!workshop.!Therefore,!the!resulting!strategy!reflects!the!significant!inputs!from!all! stakeholders!in!Barbados.!

1.5 Immediate!Opportunities!

BOUTIQUE!WELLNESS!PRODUCT!DEVELOPMENT!

! The!global!market!for!destination!wellness!spa's!is!estimated!to!be!valued!at!US$!6.2!billion,! comprising!almost!1,500!wellness!spas!and!directly!employing!more!than!112,000!persons.!! ! Barbados!has!a!broad!range!of!wellness!practitioners!in!traditional!wellness!disciplines!combined! with!a!large!number!of!boutique!hotels!and!villas!(East!Coast!particularly)!with!low!occupancy.!! ! In!discussions!with!selected!wellness!sector!trade!associations!and!the!BCSI,!a!strategy!for! developing!boutique!wellness!tourism!in!Barbados!was!outlined!.! ! Guidelines!were!provided!for!the!development!of!the!“wellness!product!offering.”!!

BUSINESS!PROCESS!OUTSOURCING!–!MEDICAL!TRANSCRIPTION!

! There!is!currently!a!shortage!of!approximately!35,000!qualified!medical!transcriptionists!(MT)!and! in!the!next!several!years!there!will!be!a!26%!increase!in!the!need!for!qualified!medical! transcriptionists!.!! ! Successful!business!process!outsourcing!companies!are!always!looking!to!market!the!next!client! recognising!that!the!existing!client!base!is!usually!finite.!! ! Therefore,!the!strategy!for!existing!medical!transcription!outsourcing!companies!in!Barbados! should!be!to!improve!their!marketing!and!actively!promote!themselves!to!new!clients!through! marketing!missions!and!participation!in!trade!shows.! ! In!order!to!assist!existing!medical!transcription!outsourcing!companies!in!Barbados!maintain!and! expand!their!business,!a!list!of!over!800!medical!transcription!companies.!

ENGLISH!LANGUAGE!TRAINING!

! The!Brazilian!market!for!English!language!training!abroad!is!estimated!at!US$!255!million,! comprising!an!estimated!52,500!students!with!an!average!spend!of!US$!4,868!per!student.! ! There!are!around!1,000!full!time!equivalent!unutilised!places!at!BCC!plus!at!least!4!private!English! Language!Schools!operating!in!Barbados.!The!immediate!opportunity!would!be!in!identifying!and! appointing!education!consultants!for!English!language!training!in!target!markets!such!as!Brazil.!! ! To!support!implementation!of!the!marketing!strategy!outlined!in!this!report,!information!on! student!recruitment!fairs,!trade!magazines!and!more!than!30!English!language!training!education! agents!were!provided.!

Barbados!Services!Sector! ! 4! www.ctaeconomic.com! Development!Strategy! ! ! Executive!Summary! !Draft!Final!Report!

COMMERCIAL!ART!

! The!global!market!for!art!was!estimated!at!US$!$60.8!billion!million!in!2011,!with!approximately! 100,000!art!dealers!around!the!world,!including!a!growing!number!of!art!consultants!that!focus!on! selling!works!to!corporations.!! ! A!strategy!of!selecting!and!appointing!a!number!of!art!consultants!in!many!different!locations!is! recommended!to!maximise!Bajan!art!sales.! ! Information!was!provided!to!BCSI!to!assist!with!development!of!a!sector!strategy!and! implementation!including!trade!publications,!trade!fairs,!industry!trade!associations!and!art! consultants!listings.!

1.6 Guidelines!for!Pilot!Survey!of!Education!Sector!

INTRODUCTION!

! One!of!the!most!important!criteria!for!effective!policy!decision!making!is!the!ability!to!make! informed!decisions.!However,!the!absence!of!sector!and!subNsector!data!and!statistics!on!the! services!sector!in!Barbados!constrains!its!development.! ! Discussions!with!stakeholders!and!national!statistical!authorities!showed!that!the!most!appropriate! and!realistic!approach!would!be!for!BCSI,!in!cooperation!with!sector!trade!associations!to! undertake!this!task.!Therefore,!guidelines!and!advice!on!undertaking!a!pilot!survey!of!the!education! sector!was!provided.! ! The!World!Bank!definition!of!tertiary!education!was!used!–!“Universities!as!well!as!institutions!that! teach!specific!capacities!of!higher!learning!such!as!colleges,!technical!training!institutes,!community! colleges,!nursing!schools,!research!laboratories,!centers!of!excellence,!and!distance!learning! centers.”!

SURVEY!CONSTRUCTION!

! A!profile!of!the!sector!requires!a!number!of!metrics!to!be!measured:!total!value!of!the!tertiary! education!sector,!value!of!subNsector!and!subdivision,!total!value!of!education!exports!!and!value!of! subNsector!and!subdivision!exports.! ! Other!direct!indicators!can!be!derived!directly!from!the!sample!data!including!number!of! institutions,!size!of!institutions,!number!of!employees,!category!of!employees!(academic,! administrative!etc),!number!of!students,!number!of!foreign!students.!! ! A!critical!part!of!the!process!is!the!preNsurvey!research!to!ensure!that!there!is!a!good!understanding! of!the!total!sector.!If!the!sample!does!not!reflect!the!structure!of!the!actual!sector,!then!it!will! already!be!bias!and!less!accurate.!!

SURVEY!TECHNIQUES!

! A!sector!survey!is!not!complex,!but!it!has!many!challenges!and!difficulties!that!can!introduce!bias! into!the!process!and!lead!to!inaccuracies!in!the!results.!These!have!to!be!managed.!! ! The!solution!is!simple!in!that!a!well!organised,!managed!and!systematic!(and!sometimes!dogmatic)! approach!to!the!survey!is!required.!! ! To!be!successful,!the!survey!should!be!treated!as!a!marketing!exercise:!information!is!being!sought! from!participants!to!generate!a!sector!profile!and!they!are!buying!it!with!their!own!information.! Therefore,!the!survey!must!be!“sold”!to!them!N!selling!the!benefits.!!

! www.ctaeconomic.com! 5! ! Barbados!Services!Sector! Development!Strategy!

Executive!Summary! !Draft!Final!Report!

1.7 Services!Sector!Development!Strategy!

OVERALL!OBJECTIVES!

! Barbados!has!limited!resources.!This!includes!“services”!resources!with!the!main!factor!of! production!being!the!pool!of!available!labour.!! ! Therefore,!the!overall!objective!of!the!Services!Sector!Development!Strategy!will!be!to!create!an! environment!in!Barbados!that!ensures!the!development!and!sustained!growth!of!a!high!quality,! high!grade!and!high!value!services!sector.! ! The!target!of!the!strategy!services!will!be!to!increase!average!value!added!of!each!services! employee!in!Barbados!to!40%!per!employee!per!annum!by!2020.!

STRATEGY!1!O!SERVICES!SECTOR!DEVELOPMENT!

! !The!overall!strategy!will!aim!to!place!services!at!the!forefront!of!the!national!agenda!in!Barbados! and!create!a!service!oriented!culture!and!economy!where!high!value!services!thrive.! ! The!target!for!this!component!will!be!to!increase!nonNtourism!services!as!a!percentage!of!GDP!to! over!60%.! ! In!order!to!achieve!this!target,!a!number!of!strategies!are!needed!to:!

1)! Valorise! services! throughout! the! economy:! strategies!that!show!the!benefit!to!the!economy,!the! business! potential! and! the! personal! opportunities! within! the! services! sector! to! encourage! a! coordinated!commitment!to!developing!services!in!a!serious!way! 2)! Create! a! competitive! services! environment:! activities! to! ensure! the! domestic! and! international! environment!within!which!service!providers!operate!is!conducive!to!ensuring!all!services!in!Barbados! are!delivered!efficiently!and!competitively! 3)! Ensure!Services!are!Delivered!as!a!Business:!encouraging!the!growth!and!development!of!services! businesses!that!are!able!to!compete!globally!and!run!professionally!to!make!profits!! 4)! Provide! a! Pool! of! Appropriate! Human! Resources! for! High! Value! Services:! the! principal! factor! of! production!in!the!services!sector!is!human!resource.!This!is!limited!in!Barbados!due!to!the!relatively! small!size!of!the!country!and!so!the!existing!pool!must!be!maximised!to!enable!future!growth!and! development!of!the!services!sector!

SERVICES!UPGRADING!

! This!part!of!the!strategy!will!address!the!level!and!grade!of!services!being!provided.!Being!a! relatively!small!country!with!a!relatively!small!labour!force,!growth!in!the!services!sector!must! come!from!increasing!the!value!of!the!services!provided.!! ! A!series!of!qualitative!indicators!will!need!to!be!established!such!as!the!number!of!certified! “quality”!service!providers.!!! ! In!order!to!achieve!this!target,!a!number!of!strategies!are!needed!to:!

1)!! Valorising!the!national!brand:!strategies!that!ensure!that!domestically!and!internationally,!Barbados! provides!quality!services,!become!known!for!it!and!that!services!providers!are!able!to!benefit!and!get! a!return!from!this!“brand”! 2)!! Ensuring! quality! Government! services! (leading! by! example):! Government! is! the! largest! services! sector! in! Barbados! and! so! if! the! national! “brand”! is! that! of! a! quality! service! provider,! then! government!services!must!also!reflect!this!“image”!!! 3)!! Using! services! to! improve! efficiency! throughout! national! value! chains:! business! support! and! development!services!are!key!components!of!competitiveness!and!encouraging!the!consumption!of!

Barbados!Services!Sector! ! 6! www.ctaeconomic.com! Development!Strategy! ! ! Executive!Summary! !Draft!Final!Report!

such!services!throughout!national!value!chains!in!Barbados!will!not!only!grow!the!services!sector!but! increase!the!profitability!and!growth!of!these!sector!themselves!

SECTOR!BRAND!DEVELOPMENT!

! In!addition!to!the!more!generic!strategies!that!will!apply!across!all!services!sectors,!Barbados!need! to!focus!on!2N3!specific!sectors!that!it!will!need!to!promote!and!brand!internationally.!! ! Based!on!the!immediate!capabilities!and!opportunities!Barbados!should!develop!and!Brand!itself!as! a!quality!and!high!value!provider!of!tertiary!education,!knowledge!processing!outsourcing!and! information!communications!technology.! ! The!target!for!these!sectors!would!be!to!increase!services!exports!in!the!three!targeted!sectors! totalling!over!US$!300!m!by!2020.! ! Each!strategy!will!comprise!a!number!of!sequential!phases:!

1)!! Formulation! of! a! strategy:! based! on! national! capacity,! addressing! constraints! and! market! opportunities! 2!)!! Developing! capacity! and! quality! of! services! to! be! provided:! would! include! standards! and! quality! assurance! for! not! only! the! immediate! services! but! also! ancillary! services! needed! (such! as! accommodation! for! foreign! students),! training! and! skills! development,! research! and! centres! of! excellence!in!each!service!sector!and!export!marketing!support! 3)! Promotion! of! the! Brand! and! marketing! support:! only! when! the! capacity! of! the! sector! matches! the! brand! criteria! will! the! brand! be! marketed! and! promoted! aggressively! –! linked! to! export! market! development.!

1.8 Implementation!Structures!

! It!has!been!shown!that!success!in!countries!that!have!experienced!substantial!growth!in!services! has!resulted!from!cooperation,!both!amongst!the!private!sector,!and!between!the!private!sector! and!government.!! ! The!development!of!a!publicNprivate!Services!Sector!Development!Strategy!is!the!first!step!towards! the!required!cooperation!in!Barbados.!However,!growth!in!services!in!Barbados!will!depend!both! on!continued!cooperation!and!effective!and!consistent!implementation!of!the!strategy.!! ! The!implementation!structure!will!comprise!a!multiNtier!structure!that!differentiates!champions! (promoting!services!nationally)!with!strategic!guidance!and!practical!actions.! ! It!is!important!that!an!effective!monitoring!and!evaluation!programme!is!developed!to!first! establish!baseline!data,!and!then!monitor!outputs,!results!and!impact.! ! In!order!to!guide!implementation,!a!comprehensive!series!of!action!matrices!will!be!needed!–!a! workprogramme!for!each!component!developed!annually;!a!workplan!based!on!the!strategy!and;! higher!level!monitoring!and!reporting!tables.!

!

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1.9 Next!Steps!

Prior!to!implementation,!a!number!of!steps!are!required!to!establish!the!implementation!structure.! Therefore,!the!next!steps!for!the!BCSI!in!ensuring!implementation!of!the!Services!Sector!Development! Strategy!are:!

1. Undertake! necessary! steps! to! establish! the! high! level! implementation! structure! under! the! Social! Partnership!(as!a!new!SubNcommittee!if!possible)! 2. Undertake!necessary!steps!to!constitute!the!Task!Force! 3. Prepare!Terms!of!reference!for!Social!Partnership!SubNcommittee;!Task!Force!and!Technical!Working! Groups! 4. Prepare!terms!of!reference,!modus!operandi!and!monitoring!guidelines!for!the!Secretariat!(including!a! management!information!system)! 5. Establish!Technical!Working!Groups! 6. Facilitate!the!completion!of!the!action!matrices!at!each!tier!of!the!implementation!structure! 7. Establish!Management!Information!System!as!a!part!of!the!facilitation!and!monitoring!mechanism!

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2 Background! This! chapter! analyses! the! importance! of! the! services! sector! to! the! economy! of! Barbados! and! presents! available! data! for! both! domestic! and! export! sectors.! It! then! presents! further! estimates! of! the! relative! importance! of! the! various! subXsectors! based! on! research! undertaken! throughout! this! assignment.! An! examination!of!national!trade!policy!of!the!government!is!presented!together!with!the!international!trading! environment!within!which!services!operate.!

2.1 Services!in!the!Economy!of!Barbados!

Like!the!majority!of!the!global!economic!community,!Barbados’s!economy!and!economic!growth!remains! weak.! After! a! contraction! in! real! GDP! of! 3.7%! in! 2009,! Key!Data! Barbados’s!economy!grew!by!0.2%!and!0.5%!in!2010!and! ! 1 2011!and!unemployment!peaked!at!11.2%!in!2011. ! Population:!! 213,800! GDP!(mkt!prices):!B$!8.626!bn!(US$!4.32!bn)! Services! remain! the! most! important! component! of! the! Per!Capita!GDP:!! B$!27,800!(US$!13,900)! Barbados! economy! amounting! to! B$! 5.5! bn! (US$2.8! bn)! Labour!Force:!! 144,500! and! accounting! for! 65%! of! GDP.! Finance! and! business! Unemployment:!! 16,184! represents! 42%! of! the! services! sector,! restaurants! 19%,! wholesale! retail! 12%! and! transport! and! communications! 11%.!Employment!in!the!services!sector!totals!94,700!which!is!74%!of!all!employed!persons.!Approximately! 21%! of! services! jobs! are! in! wholesale/retail,! 19%! in! finance! and! business! and! 18%! in! personal! services! provision!(including!education!and!health).! Table!1:!Principal!Services!Sectors! ! Value!of!the!Sector! %!of!the!services!sector! Employed! %!of!the!services!sector! (B$m)!

Finance!&!business! 2321.8! 42.0%! 17,800! 18.8%!

Hotels/restaurant! 1043.5! 18.9%! 13,200! 13.9%!

Wholsesale/retail! 661.4! 12.0%! 20,300! 21.4%!

Transport! storage! and! 609.9! 11.0%! 8,500! 9.0%! communication!

Construction! 374.7! 6.8%! 14,600! 15.4%!

Personal! (incl.! private! 291.5! 5.3%! 17,400! 18.4%! health! &! education! and! other)!

Utilities! 221.8! 4.0%! 2,900! 3.1%! Total!Services! 5,524.6! 64.0%! 94,700! 73.8%!

Total!Economy! 8,626.0! ! 128,316! ! Source:!Barbados!Economic!&!Social!Report!2011!

Like!most!small!!economies,!trade!(exports!and!imports)!in!goods!and!services!are!an!important!part! of!the!Barbados!economy!accounting!for!102%!of!GDP.!Total!exports!from!Barbados!totalled!US$!2.1!bn!in! 2011,!of!which,!services!exports!accounted!for!76%.2!

1!Unless!otherwise!stated,!the!statisctics!in!this!section!are!sourced!and!calculated!from!the!Barbados!Economic!&!Social!Report! 2011!(2012)!Ministry!of!Finance!and!Economic!Affairs! 2!Calculated!from!UNCTADStat!(2013)!

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Of!total!services!exports!(US$!1.58!bn!in!20113)!tourism!receipts!amounted!to!US$706!million,!making!it!the! largest!export,!representing!around!one!third!(34%)!of!total!exports!and!just!under!half!(47%)!of!all!services! exports.!Other!business!services!exports!are!24%!of!services!exports!and!nonNtourism!travel!is!23%.!Finance! and! insurance! represent! a! further! 4.4%! of! services! exports,! transport! and! communications! 3%! and! computer!services!1%.!Although!computer!software!and!hardware!services!exports!are!only!1%!of!services! exports,!they!are!larger!than!!cane!exports!which!are!less!than!US$!10!m.!!

Barbados!Services!Exports! Note: the breakdown of services exports from ! UNCTADStat are calculated from national balance of payments (BOP) statistics are the maximum level of Tourism! US$!706!m! disaggregation from BOP. For more detailed understanding, Other!Business!Services! US$!376.8!m! statistical surveys of each individual sub sectors (such as NonNTourism!Travel! US$!365!m! Other Business Services which are 24% of services exports) Insurance! US$!50.3!m! are required. Government!services! US$!36.4!m! Communications! US$!25.4!m! Despite! its! importance! to! the! Barbados! economy,! Transport! US$!22.3!m! services! exports! have! been! performing! poorly! in! Financial!services! US$!18.9!m! Computer!and!information! US$!11.4!m! recent!years.!Services!exports!have!been!declining! Royalties!and!licence!fees! US$!3.3!m! by! an! average! of! 1.4%! per! annum! over! the! last! 5! Construction! US$!2.7!m! years.!By!comparison,!global!services!exports!have! Personal!services! US$!0.4!m! ! growing! by! 5.2%! per! annum,! with! developing! economies! growing! by! 9.2%! per! annum! and! developed!countries!by!3.5%.! Table!2:!Calculated!Annual!Growth!Rate!Total!Services!Export!(%)! ! 2007! 2008! 2007! 2010! 2011! 2012! Average! Growth! (latest!5!yr)! World! 20.1! 12.2! N9.0! 9.8! 11.3! 1.6! 5.2%! Developing! 22.3! 15.6! N9.4! 19.9! 12.3! 7.6! 9.2%! economies! Transition! 30.1! 25.3! N16.7! 9.5! 17.5! 6.6! 8.5%! economies! Developed! 19.0! 10.5! N8.5! 6.0! 10.7! N1.2! 3.5%! economies! ECONOMY! ! ! ! ! ! ! ! Barbados! 6.0! 7.2! N17.5! 9.0! N3.4! N2.3! O1.4%! Antigua!and! 10.1! 7.3! N8.8! N6.3! 3.1! 2.9! O0.3%! Barbuda! ! 8.6! 8.8! 1.1! 9.3! 1.9! N4.9! 3.2%! ! 14.0! 0.8! N7.0! N0.8! 7.3! N0.7! O0.1%! ! 2.2! 3.3! N5.2! N0.6! N0.5! 1.7! O0.3%! Saint!Kitts! N2.5! N6.9! N18.1! 21.5! 8.3! 1.4! 1.2%! and!Nevis! Saint!Lucia! 3.6! 2.2! N3.0! 10.6! N2.7! 3.5! 2.1%! Saint!Vincent!! N5.8! N4.9! N9.2! N0.3! 3.4! 3.6! O1.5%! Trinidad!and! 13.5! 1.3! N18.3! 14.3! N! N! 0.3%! Tobago! Source:!Calculated!from!UNCTADStat!(2013)!

Even! by! comparison! to! other! countries! in! the! Caribbean,! Barbados’s! services! export! performance! is! disappointing!with!some!countries!such!as!Dominica,!St!Lucia!and!Saint!Kitts!experiencing!positive!growth! over!the!same!period!and!only!Saint!Vincent!having!a!(marginally)!larger!decline.!

3!Calculated!from!UNCTADStat!(2013)!

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2.2 Disaggregation!of!services!sector!in!Barbados!

OVERVIEW!

Research!during!this!project!has!increased!the!understanding!of!the!B$5,524.6!m!(US$!2.8!bn)!services! sector!in!Barbados!and!the!B$3,160!m!(US$!1.6!bn)!services!exports!in!some!groups.!However,!even!where! figures!appear!to!closely!align!with!the!composition!of!each!category,!these!figures!are!not!very!rigorous! and!need!to!be!regarded!cautiously.!This!is!not!a!substitute!for!a!more!rigorous!analysis!of!the!composition! of!each!service!sector!in!the!Barbados!economy.!!!!

FINANCE!AND!BUSINESS!SERVICES!

For!the!finance!and!business!industry!we!are!fairly!confident!that!we!have!a!good!understanding!of!the! sector.!Finance!and!Business!is!reported!in!national!accounts!as!totalling!B$2.3!billion.!From!estimations!of! the!various!sectors!in!Barbados,!we!can!account!for!around!B$!1!billion.!If!we!assume!services!to! agriculture,!manufacturing!and!industry!is!currently!15%!of!value!added!(equivalent!to!that!of!Indonesia! and!),!then!this!would!account!for!a!further!B$300!million.!This!leaves!B$!1!billion!so!assuming!this!is! mainly!domestic!banking,!finance!and!insurance,!then!the!whole!category!is!accounted!for.!!

UNCTADSTAT!data!states!export!of!“other!business!services”!(a!subNgroup!of!finance!and!business)!amount! to!B$754!million.!However,!UNCTAD,!using!balance!of!payments!calculations!cannot!disaggregate!this! further!despite!this!being!approximately!one!quarter!of!all!services!exports!and!43%!of!nonNtourism! exports.!Following!research!and!analysis,!we!can!account!for!over!B$700!million!with!approximately!66%! attributed!to!revenue!from!international!business!companies,!27%!to!business!process!outsourcing!(BPO)! exports!and!1%!from!export!of!construction!related!professional!services.! Table!3:!Estimated!Breakdown!of!Finance!and!Business!Sector! ! Value!of! Exports!! the! (B$m)! Sector!! (B$m)!

Finance!&!business! 2321.8! 921.4!

− Other!business!services! ! 753.6! =BPO! 200! 200! =!IBCs! 500! 500! =Professional!services! 38! 4! =Business!support!services!(nonNfinancial)! 300! N!

− Insurance! 100.6+! 100.6!

− Finance! 37.8+! 37.8!

− Computer!&!information! ! 22.8! =!ICT! 91! 91! !

− Royalties!and!licence!fees! 6.6! 6.6!

DISTRIBUTION!AND!LEISURE!SERVICES!

Distribution!and!leisure!services!amount!to!B$!1.7!billion,!of!which!B$1.4!billion!is!export!comprising! tourists,!business!travellers!and!foreign!students.!This!means!the!remaining!B$!300!million!can!be!

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Background! !Draft!Final!Report! attributed!to!domestic!consumption!of!around!B$!1,400!per!capita!per!annum!on!retail!which!again,!seems! reasonable.! Table!4:!Estimated!Breakdown!of!Distribution!and!Leisure! ! Value!of!the! Exports!! Sector!! (B$m)! (B$m)!

Distribution!and!leisure! 1704.9! 1412.0!

Hotels/restaurant! 1043.5! ! Wholesale/retail! 661.4! ! − Travel! ! 1412.0! =!foreign!students! 60!

PERSONAL!SERVICES!

Personal!services!category!is!the!only!area!where!we!do!not!have!very!much!further!information.!The!total! value!of!personal!services!are!almost!B$300!million!where!we!estimate!that!around!B$16!million!(5%)!is! revenue!for!fees!from!foreign!students.!Therefore,!95%!of!this!category!remain!unaccounted!for!and!could! include!private!education!fees!from!nationals,!private!healthcare,!cultural,!recreational!and!sporting! services.! Table!5:!Estimated!Breakdown!of!Personal!Services! ! Value!of!the! Exports!! Sector!! (B$m)! (B$m)!

Personal!(incl.!health,!education!&!other)! 291.5! 0.8!

− Personal!services! ! 0.8! =!education! 16!

OTHER!

The!only!other!sectors!specified!are!transport!and!communications!and!construction!which!are! disaggregated!enough!for!our!purposes!and!valued!at!B$!610!million!and!B$!375!million!respectively.!

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2.3 National!Trade!Policy!!

POLICY!ENVIRONMENT!

The!current!political!administration!was!elected!in!February!2013!which!means!that!there!is!a!relatively! long!term!horizon!for!the!adoption!and!implementation!of!policies!within!Barbados.!The!Ministry!of! Finance!and!Economic!Affairs!developed!its!Medium!Term!Growth!and!Development!Strategy!(MGDS)!in! parallel!to!this!assignment!and!the!MGDS!will!run!in!parallel!to!this!strategy!from!2013!to!2020.!!

The!MGDS!seeks!to!address!the!slow!economic!recovery!and!high!unemployment!by!addressing!lack!of! growth!and!lack!of!exports.!However,!given!the!fiscal!constraints,!there!are!likely!to!be!limited!funds! available!for!activities.!The!strategy!will!look!at!developing:!traditional!sectors,!tourism!and!manufacturing,! but!support!will!be!provided!in!“a!different!way”;!and!non!traditional!sectors!but!not!through!an!injection! of!funds,!but!by!stakeholder!buyNin!and!consultation.!The!specific!content!and!focus!of!the!strategy,!and!its! treatment!of!services!addressed!in!section!2.5!below.!

The!Ministry!of!Industry,!International!Business,!Commerce!and!Small!Business!Development!is!the!lead! Ministry!for!export!development.!The!government!vision!for!the!Barbados!economy!is!for!it!to!become!a! sustainable!services!based!economy.!However,!the!Ministry!note!that!there!is!little!understanding!of!what! this!actually!means!and!there!is!a!need!for!a!serious!national!debate.!In!the!area!of!services,!the!Ministry! see!a!number!of!key!challenges:!

! there! is! a! lack! of! “services! culture”! in! Barbados,! despite! its! importance! and! also! includes! government!services!which!is!the!largest!employer;! ! prevalence! of! duplication! amongst! agencies! in! Barbados! which! wastes! resources! –! for! example,! several! agencies! require! companies! to! submit! the! same! financial! information! (Corporate!Affairs,!VAT!and!Inland!Revenue);! ! policy!and!strategy!decisions!are!not!made!on!evidence!and!therefore!government!and!its! agencies!cannot!plan!effectively!(not!just!limited!statistics!availability!and!understanding!but! statistics!offices!throughout!government!collect!data!without!wanting!to!know!why!and!who! needs!it);!and! ! need! better! monitoring! and! evaluation! of! activities! to! better! understand! effectiveness! through! strengthening! of! institutions! such! as! National! Initiative! for! Services! Excellence! (NISE)!which!needs!to!be!taken!more!seriously!when!it!measures!customer!satisfaction!and! absenteeism!in!services!industries.!

The!overall!perspective!of!the!Ministry!is!that!Barbados!needs!to!become!a!high!quality!services!economy! punching!above!its!weight!internationally!with!an!international!reputation!to!match!these!standards.!At!the! moment!however,!this!is!not!viable!and!lots!of!hard!work!is!needed!(not!just!talk)!to!achieve!this.!

NATIONAL!TRADE!REGULATION!

A!summary!of!the!key!features!of!Barbados’s!national!trade!policy!regime!is!summarised!in!the!table! below.4!

4!Based!on!an!analysis!of!the!WTO!Trade!Policy!Review!(2008)!

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Table!6:!Trade!Regulations!in!Barbados! Policy!Area! Regime!in!Force! Tax!Policies! Tariffs! The!simple!average!MFN!tariff!in!2007!was!16.2%.!!The!average!MFN!tariff!for!agricultural! products!(WTO!definition)!was!33.7%!(down!from!36.7%!in!2001)!and!12.8%!for!nonN agricultural!products!(12.6%!in!2001).!!Tariff!rates!range!from!zero!to!216%!for!agricultural! products,!and!from!zero!to!145%!for!nonNagricultural!products.!!The!145%!tariff!rate!for! nonNagricultural!products!is!applied!on!certain!fish!and!a!few!other!manufactured!products.! Import!duties!accounted!for!7.8%!of!Government!revenue!in!2006/07.! Environmental!Levy! An!environmental!levy!is!charged!on!the!c.i.f.!value!of!imported!goods!(but!not!on!domestic! products).!!The!stated!purpose!of!this!levy!is!to!defray!the!costs!of!the!disposal!of!refuse! generated!by!the!use!of!goods!imported!into!Barbados,!and!to!preserve!and!enhance!the! environment.!!Refunds!are!available!for!imported!goods!that!are!reNexported.! The!levy!is!charged!at!a!general!rate!of!1.5%.!!A!rate!of!2%!is!levied!on!the!value!of!goods! imported!in!containers!made!of!plastic,!glass!or!metal;!on!goods!imported!in!containers! made!of!paperboard;!and!on!empty!containers!made!of!plastic,!glass,!metal!or!paperboard.! Some!items!are!subject!to!specific!rates:!!motor!vehicles!(BDS$150!per!vehicle);!tyres!(other! than!motor!cycle!or!bicycle!tyres)!(BDS$10!per!tyre);!!motor!cycle!and!bicycle!tyres!(BDS$1! per!tyre);!!refrigerators,!freezers,!certain!stoves,!washing!machines,!and!dishwashing! machines!(BDS$15!per!item);!!television!sets,!mattresses,!and!electric!accumulators! (BDS$10!per!item).!! VAT! The!standard!VAT!rate!applied!to!most!goods!and!services!is!17.5%!with!8%!charged!on! room!rates.! Standards!and!Technical!Regulations! SPS! !The!main!institutions!involved!in!the!establishment!of!SPS!measures!in!Barbados!are!the! Plant!Protection!Section!and!Veterinary!Services!and!the!BNSI.! TBT! The!Standards!Act!(Part!V)!allows!the!Minister!of!Commerce!to!declare!a!BNSI!standard!as!a! (compulsory)!technical!regulation!if!it!is!intended!to:!!protect!the!consumer!against!danger! to!health!or!safety;!!protect!plant!and!animal!health!and!life;!!ensure!quality!in! commodities!and!services!produced!for!use!in!Barbados!or!for!export;!!protect!the! economy!of!Barbados;!!prevent!fraud!or!deception!arising!from!misleading!advertising!or! labelling;!!require!adequate!information!to!be!given!to!the!consumer;!!safeguard!the! interest!of!the!public;!!and!safeguard!the!national!security!of!Barbados.!!! At!March!2006,!a!total!of!45!technical!regulations!were!in!force!in!Barbados.! CARICOM!Regional! CROSQ!is!mandated!to!establish!and!harmonize!standards!and!technical!regulations!within! Organization!for! CARICOM,!and!to!promote!the!mutual!recognition!of!conformity!assessment!procedures! Standards!and! covering!goods!and!services!produced!or!provided!in!CARICOM!as!well!as!the!accreditation! Quality!(CROSQ)! and!certification!system!based!on!internationally!accepted!criteria.!Of!the!48!technical! regulations!in!force!in!Barbados,!12!have!been!adopted!to!implement!regulations! developed!at!the!CARICOM!level.! Customs!! Procedures! The!main!legislation!governing!customs!procedures,!which!remains!the!Customs!Act!(Cap.! 66)!of!1962!!and!the!Customs!Regulations!of!1963,!as!amended.!!The!Barbados!Customs! and!Excise!Department!is!responsible!for!customs!procedures.!!!Barbados!is!a!member!of! the!World!Customs!Organization.! Imports!can!be!cleared!by!the!importer!or!by!a!licensed!broker.!!Importers!must!be! registered!with!the!Customs!Department.!!No!registration!fees!are!charged.!!Import! declarations!(Barbados!Customs!Goods!Declaration!Form!C63)!must!be!accompanied!by!up! to!seven!documents:!!a!commercial!invoice;!a!carriers!bill!of!lading!or!airway!bill;!!a!

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Policy!Area! Regime!in!Force! declaration!of!value!form!(C60)!for!goods!valued!over!BDS$2,500;!!a!certificate!of!origin!for! CARICOM!goods;!!an!import!licence!if!required;!!and!a!health!and!sanitary!certificate!if! required.!!A!packing!list!may!be!required!by!customs!when!goods!are!physically!examined.! Barbados!migrated!to!the!ASYCUDA++!system!in!2005.!!! Import!Licenses! Import!licensing! Barbados!maintains!a!licensing!system!to!regulate!the!import!of!certain!goods.!!This!is! regime!! governed!by!the!Miscellaneous!Controls!Act!Cap.!329!of!the!Laws!of!Barbados!,!and! managed!by!the!Ministry!of!Trade,!Industry!and!Commerce.! Applications!for!import! licences!must!be!made!in!advance!of!importation,!and!are!granted!within!ten!days.!There! are!no!administrative!charges!levied,!and!it!appears!that!documentary!requirements!are! minimal.!!Licences!are!valid!for!up!to!three!months,!and!are!renewable.!!If!licences!are! refused,!applicants!will!be!informed!of!the!reasons!for!refusal,!and!could!appeal!to!the! Director,!Permanent!Secretary!or!Minister!within!the!Ministry!of!Trade,!Industry!and! Commerce,!or!to!seek!redress!in!a!Civil!Court! Export!Measures! Export!Procedures! Export!documentation!consists!of:!!a!customs!declaration!form,!commercial!invoice,!a! certificate!of!origin!for!exports!under!trade!preferences,!a!central!bank!form,!a!bill!of! lading,!a!shipping!instruction!form,!and!an!export!declaration!form.!!In!all!cases,!the!Central! Bank!Exchange!Control!Form!must!be!taken!for!verification!by!the!Entry!Processing!office!of! the!port!at!which!the!goods!are!being!shipped.! Exporters!are!not!required!to!register,!unless!they!wish!to!export!under!trade!preferences.!! The!Certification!Service!at!the!Barbados!Investment!and!Development!Corporation!(BIDC)! delivers!certificates!of!origin!that!allow!exporters!to!benefit!from!preferences!under! CARICOM,!CBI,!CARIBCAN,!and!for!exports!to!,!,!Dominican!Republic,!and! !under!CARICOM!trade!arrangements.!!The!Customs!and!Excise!Department! provides!certification!under!the!ACPNEC!Cotonou!Agreement.! Export!Taxes!! Barbados!applies!no!taxes,!charges!or!levies!on!exports,!other!than!a!levy!on!cotton!exports! of!BDS$0.17!per!pound.!!The!proceeds!of!this!levy!go!to!the!Barbados!Cotton!Growers! Association!(Chapter!IV(2)).! Export!Incentives! Barbados!manages!a!number!of!incentives!programmes!targeted!solely!or!partly!at! promoting!exports.!!Barbados!has!requested!the!extension!provided!for!under!Article!27.4! of!the!SCM!and!the!provisions!of!document!G/SCM/39!for!five!of!these!programmes:!!the! Fiscal!Incentive!Programme;!!Export!Allowance;!!Research!and!Development!Allowance;!! International!Business!Incentives;!!and!Societies!With!Restricted!Liability.!!!In!July!2007,! WTO!General!Council!decided!to!extend!the!date!for!the!dismantlement!of!export!subsidies! to!end!2015.! The!Fiscal!Incentives!Programme!is!aimed!at!stimulating!greater!levels!of!production!of! selected!products!required!for!domestic!use!and!in!demand!extraNregionally,!as!well!as!use! of!raw!materials!or!skills!in!Barbados.!!The!incentives!under!the!programme!are!provided! under!the!authority!of!the!Fiscal!Incentives!Act!of!1974!(CAP!71A)!and!are!administered!by! the!BIDC.!!Under!the!Act,!approved!enterprises!are!granted!an!11!to!15Nyear!tax!holiday!for! corporation!tax!and!customs!duties,!and!VAT.!!Relief!from!customs!duty!is!on!all!imports!of! plant,!equipment,!machinery,!spare!parts,!raw!materials!and!components!thereof!required! by!the!approved!enterprise!in!the!manufacture!of!an!approved!product,!where!such!articles! are!not!available!in!CARICOM.!! State!Trading! State!Owned! Barbados!notified!in!1996!that!it!maintained!two!state!trading!enterprises!as!defined!in! Enterprises! GATT!Article!XVII.4(a)!and!paragraph!1!of!the!WTO!Understanding!on!Article!XVII:!!the!

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Background! !Draft!Final!Report!

Policy!Area! Regime!in!Force! Barbados!Agricultural!Development!and!Marketing!Corporation!(BADMC),!and!the! Barbados!Dairy!Industries!Limited!(BDIL).! Intellectual!Property! International! Barbados!is!member!of!the!World!Intellectual!Property!Organization!(WIPO)!and!a! Agreements! signatory!to!a!number!of!international!agreements!on!intellectual!property!rights!(IPRS).!!!It! is!not!a!member!of!the!International!Union!for!the!Protection!of!Industrial!Property;!!nor!of! the!International!Union!for!the!Protection!of!New!Varieties!of!Plants!(UPOV)!Convention! Enforcement! The!Corporate!Affairs!and!Intellectual!Property!Office!(CAIPO)!is!responsible!for!IPRs! administration.!!!CAIPO!also!advises!the!government!on!IPNrelated!issues!and!is!responsible! for!the!grant!and!registration!of!patents,!trade!and!service!marks,!industrial!designs,!and! other!IPRs,!covering!geographical!indications,!integrated!circuits,!and!plant!varieties!

2.4 International!Trading!Environment!

GLOBAL!TRADING!SYSTEM!

Barbados!is!a!founding!member!of!the!World!Trade!Organisation!(WTO).!During!the!Uruguay!Round,! Barbados!bound!its!entire!tariff.!!Barbados!grants!at!least!MFN!treatment!to!all!its!trading!partners.!! However,!Barbados!only!made!specific!commitments!under!the!General!Agreement!on!Trade!in!Services! (GATS)!in!4!of!the!12!sectors,!and!21!of!the!160!subsectors!of!the!services!classification!list.!Barbados! undertook!specific!commitments!in!the!negotiations!on!basic!telecommunications!and!ratified!the!Fourth! Protocol!to!the!GATS.!!!However,!it!did!not!submit!an!offer!in!the!financial!services!negotiations!concluded! in!1998.!!!

A!summary!of!specific!commitments!under!GATS!(by!mode)!is!given!in!Table!3!below!based!on!the!revised! consolidated!Schedule!of!Specific!Commitments!(S/DCS/W/BRB/Rev.1!of!1!June!2005):! Table!7:!Barbados!GATS!Commitments!by!Mode!of!Supply! Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Limitations!on! National!Treatment! Sector!or!SubNsector! Limitations!on!Market!Access!

I.!HORIZONTAL!COMMITMENTS!

4)!The!Immigration!Act!and!regulations! 3)!The!Property!Transfer!Tax!Act! control!the!entry!and!residence!of!all! stipulates!that!a!foreign!investor! foreign!natural!persons!working!in! ALL!SECTORS!INCLUDED!IN!THIS! interested!in!the!purchase!or!sale!of! Barbados.! Prior!to!a!natural!person! SCHEDULE! land!or!shares/stocks!is!subject!to!a! working!in!Barbados!a!work!permit! specific!tax!on!the!value!of!settlement! must!be!obtained.! Labour!market! tests!are!conducted.! II.!!!SECTORNSPECIFIC!COMMITMENTS! 1.! BUSINESS!SERVICES! ! ! A.! Professional!Services! ! ! (a)!! Legal!services!!!(CPC! 1)!Unbound! 1)!Unbound! 86130!O!legal!documentation! 2)!Unbound! 2)!Unbound! and!certification!services)! 3)!Only!a!natural!person!can! 3)!Not!applicable! practice!law! 4)!None! ! 4)!An!attorney!has!to!be!admitted! !

Barbados!Services!Sector! ! 16! www.ctaeconomic.com! Development!Strategy! ! ! !Draft!Final!Report! Background!

Limitations!on! National!Treatment! Sector!or!SubNsector! Limitations!on!Market!Access! to!the!local!Bar!and!registered!as! required!under!the!Legal!Profession! Act! ! 1)!Unbound! 2)!Unbound! 1)!Unbound! 3)!Only!a!natural!person!can!practice! (h)!! Medical!services! 2)!Unbound! medicine! 3)!Not!applicable! (CPC!93122!O!specialized!medical! 4)!Under!the!Medical!Registration!Act,! 4)!None! services)! all!medical!practitioners!must!be! ! registered! ! B.!!! Computer!and!Related!Services! 1)!None! (b)!! Software!implementation! 1)!None! 2)!None! services! 2)!None! 3)!None! (CPC!842)! 3)!None! 4)!None! 4)!None! ! ! !

2.! COMMUNICATION!SERVICES!

1)!None! B.!Courier!Services! 1)!None! 2)!None! (CPC!7512)! 2)!None! 3)!None! 3)!None! ! 4)!None! 4)!None! ! !

C.! Telecommunication!Services:!!! ! !

For!public!use:! ! (a)! Voice!telephone!services! (7521)! (b)! PacketOswitched!data! transmission!services! 1)!Until!1!January!2012,!reserved!to! ! (7523**)! exclusive!suppliers.! 1)!None! (c)! CircuitOswitched!data! 2)!None! 2)!None! transmission!services! 3)!Until!1!January!2012,!reserved!to! 3)!None! (7523**)! exclusive!suppliers.! 4)!Unbound!except!as!indicated!in!the! (d)! Telex!services!(7523**)! 4)!Unbound!except!as!indicated!in!the! horizontal!section.! (e)! Telegraph!services! horizontal!section.! ! (7522)! ! (f)! Facsimile!services!(7521**,! 7529**)! (g)! Private!leased!circuit! services!(7522**,!7523**)! ! For!nonOpublic!use! 1)!Until!1!January!2012,!only!permitted! (i.e.!closed!user!groups,! over!networks!of!the!exclusive! on!a!nonOfacilities!basis):! suppliers;!twoN!ended!breakNout!not! (a)! Voice!telephone! permitted.! 1)!None! services!(7521)! 2)!None! 2)!None! (b)! PacketOswitched! 3)!Until!1!January!2012,!only!permitted! 3)!None! data!transmission! over!networks!of!the!exclusive! 4)!Unbound!except!as!indicated!in!the! (7523**)! suppliers;!twoN!ended!breakNout!not! horizontal!section.! (c)! CircuitOswitched! permitted.! ! data!transmission! 4)!Unbound!except!as!indicated!in!the! services! horizontal!section.! (7523**)! !

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Limitations!on! National!Treatment! Sector!or!SubNsector! Limitations!on!Market!Access! (d)! Telex!services! (7523**)! (e)! Telegraph!services! (7522)! (f)! Facsimile!services! (7521**,!7529**)! ! ValueOadded!services:! ! (h)! Electronic!mail!(7523**)! (i)! Voice!mail!(7523**)! (j)! OnOline!information!and! data!base!retrieval! (7523**)! 1)!None! (k)! Electronic!data!interchange! 1)!None! 2)!None! (7523**)! 2)!None! 3)!None! (l)! EnhancedOvalueOadded! 3)!None! 4)!Unbound!except!as!indicated!in!the! facsimile!services,!incl.!store!and! 4)!Unbound!except!as!indicated!in!the! horizontal!section.! forward,!store!and!retrieve! horizontal!section.! ! (7523**)! ! (m)! Code!and!protocol! conversion! (n)! OnOline!information!and/or! data!processing!(incl.! transaction!processing! (843**)!

Other! ! !

1)!None! 1)!None! - Internet!and!internet!access! 2)!None! 2)!None! services! 3)!None! 3)!None! 4)!Unbound!except!as!indicated!in!the! 4)!Unbound!except!as!indicated!in!the! ! horizontal!section.! horizontal!section.! ! ! O! Mobile!services!(terrestrial! and!satellite!based)! 1)!None! O! cellular/mobile!telephone! 1)!None!as!of!1!January!1999! 2)!None! services! 2)!None! 3)!None! O! mobile!data!services! 3)!None!as!of!1!January!1999! 4)!Unbound!except!as!indicated!in!the! O! personal!communication! 4)!Unbound!except!as!indicated!in!the! horizontal!section.! services! horizontal!section.! ! O! paging! ! !

1)!None,!except:!twoNended!breakNout! is!not!permitted.! 1)!None! O! Fixed!Satellite!Services! 2)!None,!except:!twoNended!breakNout! 2)!None! O! VSAT!services!(for!nonO! is!not!permitted.! 3)!None! public!use)! 3)!None,!except:!twoNended!breakNout! 4)!Unbound!expect!as!indicated!in!the! ! is!not!permitted.! horizontal!section.! 4)!Unbound!except!as!indicated!in!the! ! horizontal!section.! !

Telecom!equipment!sales,! 1)!None! 1)!None! rental,!maintenance,! 2)!None! 2)!None! connection,!repair!and! 3)!None! 3)!None! consulting!services!(7541,!7545)! 4)!Unbound!except!as!indicated!in!the! 4)!Unbound!except!as!indicated!in!the! ! horizontal!section.! horizontal!section.!

Barbados!Services!Sector! ! 18! www.ctaeconomic.com! Development!Strategy! ! ! !Draft!Final!Report! Background!

Limitations!on! National!Treatment! Sector!or!SubNsector! Limitations!on!Market!Access!

7.! FINANCIAL!SERVICES! ! !

A.! All!Insurance!and! 1)!None! 1)!None! InsuranceORelated!Services! 2)!None! 2)!None! ! 3)!None! 3)!None! (c)!!Reinsurance!(CPC!812)1! 4)!None! 4)!None! ! ! !

10.! RECREATIONAL,!CULTURAL! ! AND!SPORTING!SERVICES! !

A.! Entertainment!Services! 1)!None! 1)!None! (CPC!96191!–!theatrical,! 2)!None! 2)!None! producer,!singer!group,! 3)!None! 3)!None! band!and!orchestra,! 4)!None! 4)!None! entertainment!services)! ! ! Classifications! are! based! on! the! Services! Sectoral! Classification! List.! MTN.GNS/W/120! and! the! UN! Provisional! Central! Product! Classification.!

Barbados!is!not!a!party!or!observer!in!any!WTO!plurilateral!agreements,!or!the!Information!Technology! Agreement!(ITA).!

Barbados!submitted!an!initial!conditional!services!offer!within!the!context!of!the!Doha!Development! Agenda!(DDA)!negotiations.!However,!as!at!May!2008,!it!had!not!submitted!a!revised!offer.!!

Barbados!has!never!invoked!the!dispute!settlement!provisions!of!the!GATT!or!WTO,!nor!have!any! complaints!been!brought!against!it.!!However,!Barbados!reserved!its!rights!to!participate!as!third!party!in! four!cases:!!a!dispute!relating!to!U.S.!provisions!on!foreign!sales!corporations;!and!three!cases!relating!to!EC! export!subsidies!on!sugar.!!

Barbados!supported!a!request!by!a!number!of!developing!members!of!the!WTO!for!an!extension!period!for! providing!export!subsidies!until!2018.!!!Barbados!regards!these!subsidies!as!important!to!help!it!integrate! more!fully!into!the!multilateral!system,!given!what!it!sees!as!weaknesses!associated!with!its!status!as!a! "small!and!vulnerable!economy".!

CARICOM!

Barbados!is!one!of!the!15!member!states!of!the!Caribbean!Community!and!Common!Market!(CARICOM)! and!applies!the!Common!External!Tariff!(CET)!and!CARICOM!Single!Market!and!Economy!(CSME).!The!CSME! aims!to!integrate!all!CARICOM!member!states!into!a!single!economic!entity!allowing!for!the!free!movement! of!people,!capital,!goods,!and!services,!and!eventually!to!provide!for!a!single!economic!and!trade!policy!for! all!CARICOM!states.!CSME!became!operational!in!January!2006.!CARICOM!has!preferential!trade! agreements!with!Cuba,!Costa!Rica,!Columbia,!Dominican!Republic!and!Venezuela!but!these!do!not!contain! any!provisions!on!services!trade.!

Provisions!for!the!liberalisation!of!services!are!contained!in!Chapter!3!of!the!Revised!Treaty!of! Chaguaramas.!!Members!undertook!to!notify!the!Council!for!Trade!and!Economic!Development!(COTED)!of! existing!restrictions!to!services!in!all!four!modes!of!supply,!to!abolish!discriminatory!restrictions!on!the! provision!of!services!in!respect!of!CARICOM!nationals,!and!not!to!introduce!any!new!services!restrictions! (Table!IV.3).!Barbados!removed!all!necessary!restrictions!to!facilitate!the!CARICOM!Single!Market!and!

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Economy!(CSME)!through!the!passage!of!the!CARICOM!Single!Market!and!Economy!(Implementation)! (Miscellaneous!Provisions)!Act,!2004N24.!

Incremental!steps!have!also!been!taken!towards!the!stated!goal!of!free!movement!of!CARICOM!nationals! (Chapter!3,!Article!45!of!the!Revised!Treaty),!which!may!encourage!intraNCARICOM!trade!in!services! through!the!presence!of!natural!persons!(mode!4).!!As!at!January!2008,!nine!groups!of!persons!were! permitted!to!work!and!reside!in!any!of!the!CSME!Member!states!without!a!work!permit.!!These!are! university!graduates,!media!workers,!sports!persons,!artists,!musicians,!qualified!artisans,!nonNgraduate! qualified!teachers,!and!nurses,!and!holders!of!associate!degrees!and!their!equivalents.!

CARIFORUMOEU!PARTNERSHIP!AGREEMENT!

A!comprehensive!Economic!Partnership!Agreement!(EPA)!between!the!EU!and!15!Caribbean!states!in!the! CARIFORUM!EPA!group,!including!Barbados,!was!signed!in!2008.!This!replaced!the!expired!preferences! under!the!Africa,!Caribbean,!and!Pacific!(ACP)NEU!Cotonou!Agreement.!!The!EU!committed!to!the! immediate!removal!of!all!tariffs!and!quotas!on!CARIFORUM!exports!with!the!exception!of!sugar!and!rice,! which!gained!full!dutyNfree!and!quotaNfree!access!at!the!end!of!2009.!!

With!regards!to!services,!the!EPA!allows!mode!4!entry!to!the!EU!for!29!categories!of!professionals!from! CARIFORUM!countries,!without!numerical!limit!(quota)!but!subject!to!the!“necessary!academic!qualification! and!experience.”!In!addition,!the!EPA!provides!for!access!of!workers!under!mode!4!in!key!sectors:! contractual!service!suppliers;!independent!professionals!and!graduate!trainees.!CARIFORUM!has!not! offered!any!of!these!on!reciprocal!basis.!

OTHER!AGREEMENTS!

Caribbean!Basin!Initiative!

Barbados!enjoys!preferential!access!to!the!U.S.!market!under!the!Caribbean!Basin!Initiative!(CBI)!and! provides!dutyNfree!access!for!products!from!the!Caribbean!and!Central!America.!!However,!this!only!applies! to!trade!in!goods!and!does!not!cover!services.!

CARIBCAN!

Barbados!enjoys!preferential!access!to!the!Canadian!market!through!CARIBCAN,!a!preferential!agreement! for!trade,!investment,!and!industrial!cooperation!between!Canada!and!the!Commonwealth!Caribbean! countries,!which!extends!dutyNfree!treatment!to!nearly!all!qualifying!imports.!!CARIBCAN!is!set!to!expire! and!CARICOM!is!negotiating!a!reciprocal!trade!and!development!agreement!with!Canada!to!take!its!place.!! To!date!there!have!been!three!negotiating!rounds,!covering!goods,!services,!investment,!dispute! settlement,!competition!policy,!government!procurement!and!intellectual!property!issues.!!!

Generalized!System!of!Preferences!

Barbados's!products!are!eligible!for!the!GSP!schemes!of!Australia,!Canada,!the!European!Union,!,!New! Zealand,!Russia,!and!.!

!

Barbados!Services!Sector! ! 20! www.ctaeconomic.com! Development!Strategy! ! ! !Draft!Final!Report! Background!

2.5 MediumNterm!Growth!and!Development!Strategy!(MGDS)!2013N2020!!

The!MediumNterm!Growth!and!Development!Strategy!(MGDS)!2013N2020!aims!to!sustain!private!sector!and! investment! led,! productivity! and! export! driven! growth! based! on! an! environmentally! green! and! socially! sustainable!and!equitable!economy!while!radically!adjusting!and!reforming!the!Barbadian!economy.!It!has! four!(4)!goals!and!twenty!(20)!objectives.!This!strategy!was!launched!in!September!2013.!

The!Goals! 1)&Return&the&economy&to&a&sustainable&growth&rate&of&3&per¢&while&maintaining¯oeconomic&stability;&& 2)&Facilitate&broad&based&adjustments&and&reforms&in&the&economy;&& 3)&Enhance&social&and&human&development∧&& 4)&Enhance&energy&and&environmental&sustainability&in&the&context&of&the&Green&Economy.&&

The!Objectives!! 1) Reduce the Fiscal Deficit to below 2.0 per cent by 2020/21; 2) Achieve a more comfortable level of Sustainability; 3) Strengthen the Net International Reserves position to at least six months or 24 weeks of import reserves cover; 4) Strengthen bank and financial sector soundness; 5) Reduce the unemployment rate to 7.0 per cent; 6) Reduce the cost of doing business and the cost of living; 7) Increase the exports of services and goods; 8) Increase food production and nutritional security; 9) Enhance international competitiveness, national productivity, efficiency and service excellence; 10) Enhance business facilitation; 11) Develop the micro, small and medium-sized business sector and entrepreneurship; 12) Expand and accelerate public and private investments; 13) Reform the productive sectors and increase supply capacity; 14) Reduce the level of poverty; 15) Preserve a strong social safety net; 16) Enhance research and innovation through science and technology; 17) Reduce dependence on fossil-fuels, ensure environmental sustainability and combat climate change; 18) Build the human and social capital base; 19) Infrastructure upgrade and modernisation and; 20) Ensure more modern and efficient public and private sector institutions.

In! relation! to! GDP! growth,! sectors! with! the! potential! to! generate! the! most! GDP! contribution! will! be! identified!with!a!bias!towards!green!intensive!and!exportNoriented!investments.!In!relation!to!employment,! sectors! creating! quality! employment! with! highNincome! elasticity! remains! critical! and! will! be! pursued! especially!in!sectors!that!have!the!ability!to!earn!foreign!exchange.!!

The!Government!has!set!an!economic!growth!target!of!4.5!per!cent!GDP!growth!by!2020.!This!target!has! been!broken!down!into!two!phases,!namely!a!target!of!0.5!to!3.0!per!cent!over!2013!to!2017,!and!to!4.0!per! cent!by!2020.!!

However,!in!terms!of!concrete!actions,!the!MGDS!is!very!vague!and!does!not!define!precise!strategies!or! activities! beyond! more! general! aims! and! the! need! to! define! activities.!With!specific!regards!to!services,! there!is!reference!to!strategies!for!nonNtraditional!services!(excluding!mainstream!tourism).!

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It! states! that! Barbados! needs! to! become! a! high! quality! services! economy! internationally! with! an! international! reputation.! It! identifies! some! challenges! to! achieving! this! aim! (based! on! the! challenges! identified!in!this!project’s!inception!report!of!May!2013!and!summarised!in!chapter!3!of!this!report).!These! include:! lack! of! “services! culture”! in! Barbados,! despite! its! importance;! prevalence! of! duplication! among! agencies!in!Barbados!which!wastes!resources;!policy!and!strategy!decisions!that!are!not!made!on!evidence! and!therefore!agencies!cannot!plan!effectively!and!a!need!for!better!monitoring!and!evaluation!of!activities! to!better!understand!effectiveness!through!strengthening!of!institutions!such!as!the!National!Initiative!for! Services!Excellence!(NISE).!

Some! of! the! main! objectives! that! are! proposed! over! the! medium! term! would! be! to! increase! the! contribution! to! GDP! of! the! service! export! sector,! increase! services! export! contribution! to! overall! employment,!create!technology!intensive!jobs!and!international!partnerships,!greater!diversification!within! the! service! sector! beyond! tourism! and! financial! services! to! include! new! export! sectors;! and! increased! penetration!and!diversified!service!export!offerings!in!existing!market!destinations!and!accessing!new!and! emerging!nonN!traditional!markets.!

Specifically,!broad!strategies!to!be!pursued!are:!

• Make!Barbados!a!high!quality!services!country!by!ensuring!an!international!reputation!for!quality! service!provision!in!all!sectors.!

• Improve!the!number!and!quality!of!jobs!in!the!services!sector.!

• Encourage! “consumption”! and! “appreciation”! of! services! nationally,! which! improves! competitiveness!of!other!sectors!and!improved!provision!and!delivery!of!services!throughout!the! economy!in!both!private!and!public!sectors.!

• Create! the! environment! to! encourage! innovation! and! exploration! of! export! opportunities! throughout!the!economy!(including!outside!the!priority!sectors).!

• Ensure!the!development!of!higher!value!services!provision,!such!as!alternative!tourism!services!that! increase!average!visitor!spend!or!moving!up!value!chains!

These! align! with! suggestions! made! for! the! national! services! strategy! contained! within! Chapter! 8! of! this! report.!

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3 Challenges)to)Developing)Services! This!chapter!describes!some!of!the!key!constraints!to!the!development!of!the!services!sector!in!Barbados! that!will!need!to!be!addressed!by!the!strategy.!It!also!examines!the!institutional!framework!for!support!to! services! businesses! in! Barbados.! It! also! summarises! previous! attempts! at! implementation! of! services! strategies,!its!achievements!and!limitations.!!

3.1 Key!Constraints!

Based!on!research!and!discussions!with!key!stakeholders,!a!number!of!conclusions!that!impacted!and! guided!the!development!and!implementation!of!the!Services!Sector!Development!Strategy!were!identified:!

• Limited! understanding! of! the! services! sector.! In! common! with! many! countries,! there! is! a! limited! knowledge! and! appreciation! of! the! services! sector! in! Barbados! (outside! mainstream! tourism! and! financial! services)! and! the! important! contribution! to! the! economy.! There! are! limited! statistics! (as! presented!in!Chapter!2!of!this!report)!available!and!these!are!at!a!highly!aggregated!level!based!mainly! on! balance! of! payment! methods.! There! is! no! attempt! by! the! Barbados! Statistical! Service! to! collect! services! statistics! data! during! its! economic! survey! (although! it! could! if! told! to! by! the! government).! Alternative!sources!of!data!such!as!Corporate!Affairs!does!not!classify!firms!according!to!sector!and!in! any!case,!only!requires!financial!reports!for!companies!with!a!turnover!greater!than!B$3m!(US$1.5m)!to! file!accounts.!Similarly!the!VAT!and!Revenue!services!do!not!classify!firms!(although!there!are!plans!for! application!of!ISIC!classification!of!firms!to!existing!records!which!may!start!latter!this!year!but!would! take!a!long!time!to!be!available).!Businesses!with!annual!turnover!of!B$!80,000!(US$!40,000)!and!B$! 30,000! (US$15,000)! are! required! to! register! with! VAT! and! income! tax! authorities! respectively.! As! a! result! of! this! poor! information,! the! services! sector! (both! domestic! and! export)! is! not! accorded! high! priority!in!activities!and!policies!of!government!and!its!agencies,!despite!its!importance.!This!is!due!to! the!lack!of!identified!services!“products”!within!aggregated!groups!that!are!being!exported.! • Small! scale! of! both! sectors! and! firms.! There! appears! to! be! a! wide! variety! of! services! activities! in! Barbados! but! many! of! these! sectors! and! associated! exports,! are! comprised! of! a! few! firms.! Services! export!by!one!firm!does!not!make!an!industry,!and!does!not!necessary!mean!that!it!can!be!replicated.! Therefore,! there! are! many! “single”! service! sectors! and! very! few! broader! services! industries.! Those! sectors!that!do!constitute!an!“industry”!are!mostly!founded!on!domestic!provision,!even!if!they!export! as! well.! These! include! education,! contractors,! creative! industries! and! professionals! (architects,! engineers,!planners!and!surveyors).!Even!in!areas!where!there!is!a!relative!large!established!industry,! the!sectors!are!generally!characterised!by!a!large!number!of!very!small!firms!and!a!few!large!firms.! There!appears!to!be!a!disincentive!for!services!firms!to!grow!which!has!led!to!this!predominance!of! small! and! micro! firms.! One! sector! reported! 70%! of! firms! have! only! 1N2! employees! with! many! sole! traders.!One!of!the!factors!that!has!contributed!to!this!characteristic!is!the!approach!of!firms!to!protect! and!maintain!their!own!domestic!markets.!This!approach!limits!the!scope!for!export!development!as! firms!lack!capacity.!It!also!limits!the!quality!and!competitiveness!of!locally!available!services.!Another! factor!is!the!tax!threshold!of!B$30,000!(which!is!greater!than!the!average!wage!in!Barbados)!so!that! sole! traders! earning! below! this! do! not! have! to! register,! pay! tax! or! undertake! any! bureaucratic! procedures.!Therefore!many!service!providers!prefer!to!limit!earnings!and!fall!under!the!government! “radar.”!! • Limited! understanding! of! services! business.! The! approach! of! services! providers! is! very! insular,! concentrating!on!a!narrow!focus!of!their!“profession”!rather!than!“the!business!itself.”!Most!service! providers! seem! to! be! highly! qualified! in! their! profession,! many! registered! and! accredited! to! international!organisations.!They!then!tend!to!focus!exclusively!on!the!delivery!of!their!profession!to! the! detriment! of! any! business! approach.! This! applies! equally! to! artists! as! to! engineers;! business!

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acumen!and!a!business!approach!is!almost!ignored!and!seen!as!somehow!beneath!them.!This!means! that!there!are!a!swath!of!service!providers,!proud!and!delivering!purportedly!high!quality!services!but! only! scrapping! a! living! together.! In! addition,! given! the! foundations! in! the! domestic! market,! some! service!providers!do!not!fully!understand!the!“service”!they!provide.!In!Barbados,!the!market!dictates! that!the!supplier!“does!all”!for!the!customer,!and!so!the!services!component!is!not!well!understood! even!though!it’s!the!most!valuable!part.!!!For!example!fashion!services!include!design,!pattern!making,! sample! making! and! marketing! –! however,! when! approached! for! sale! of! designs,! or! suggestions! of! outsourcing! manufacturing,! fashion! service! providers! are! reluctant! to! give! up! manufacturing! components!of!the!industry!even!though!the!value!(profit)!is!in!the!design,!not!manufacture.!! • Lack!of!Cooperation.!In!developing!services!sectors,!especially!export!markets,!there!is!a!real!need!for! cooperation!amongst!the!service!sector!providers,!amongst!business!support!agencies,!regulators!and! policy! makers! and! between! these! two! groups! themselves.! This! is! especially! important! in! services! sectors! where! there! is! cross! ministerial! responsibility! for! services! sectors! and! services! as! a! business! such! as! education! services! under! Ministries! of! Education,! Labour! and! Commerce! and! the! numerous! agencies! that! regulate! and! support! the! sector.! Both! observations! from! group! dynamics,! and! reports! from! various! stakeholders,! indicate! that! effective! cooperation! amongst! these! stakeholders! will! be! challenging,!especially!since!each!body!will!only!work!on!issues!that!it!leads.! • Implementation! deficit.! A! recurring! theme! reported! during! this! assignment,! was! the! term! “implementation!deficit.”!That!is,!plans!and!ideas!were!abundant!in!Barbados,!but!very!little!is!done!to! enact! them.! There! are! many! willing! to! contribute! to! discussions! of! the! problems! and! even! suggest! solutions,!but!few!who!will!actually!do!the!necessary!actions.!For!the!private!sector,!work!undertaken! by!the!association!is!largely!voluntary!with!few!volunteers!(any!staff!in!some!association!secretariats! are!largely!administrative);!this!in!a!way!is!understandable!as!the!executive!of!these!associations!have! businesses!to!run,!many!of!which!are!small!and!vulnerable.!For!some!government!departments!and! agencies,!services!as!“a!business”!is!not!their!core!activity!(eg!provision!of!education!or!health!for!the! population)! and! services! are! seen! more! as! a! public! good! than! an! economic! driver.! Finally,! in! some! agencies,!there!is!a!distinct!lack!of!capacity!in!terms!of!both!human!and!financial!resources!and,!skills,! experience!and!understanding!of!services!as!a!business.!

3.2 Institutional!Framework!for!Support!to!the!Services!Sector!

There!are!a!wide!range!of!institutions!tasked!to!provide!support!and!improve!services!business,!and!wider! private!sector!in!general.!However,!the!majority!of!these!have!overlapping!mandates,!are!poorly!resourced,! are!oversubscribed!and!provide!poor!levels!of!support!to!business.!There!is!a!real!need!for!rationalisation! and!reform!of!some!of!these!organisations.!

BCSI!

The!BCSI!was!established!in!2002!following!a!CARICOM!decision!urging!the!setting!up!of!dedicated!bodies!in! the!region!to!focus!on!driving!the!region’s!agenda!for!trade!in!services.!The!overall!objectives!of!the!BCSI!is! to!“Foster!the!international!competitiveness!of!Barbadian!service!providers”!and!its!focus!is!on! “Repositioning!the!service!sector!to!meet!the!opportunities!and!challenges!ahead!and!more!importantly! making!sure!we!are!at!the!forefront!in!the!reNdevelopment!of!the!Barbados!Economy.”5!

The!main!activities!of!BCSI!are:!

! training!courses,!workshops!and!seminars;! ! advocacy!and!lobbying;!

5!BCSI!Annual!Report!2011/12!(2012)!

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! service!association!start!up!and!incubation;! ! trade!enquiries;! ! business!match!facilitation;! ! study!tours;! ! trade!shows!and!exhibitions;! ! trade!promotion!events;! ! business!information!and!advice;! ! provision!of!export!opportunities;! ! market!research;! ! market!intelligence;! ! facilitate!regional!linkages.!

The!BCSI!comprises!6!staff:!an!executive!director,!two!programme!officers,!a!research!officer!and!2! administrative!support!staff.!In!discussions!with!associations,!government!and!the!private!sector,!the! reputation!and!experiences!of!dealing!with!the!BCSI!have!been!in!all!cases!positive.!Therefore,!in!terms!of! relative!effectiveness!of!organisations,!BCSI!appears!to!be!one!of!the!strongest!in!Barbados.!

Therefore,!BCSI!should!provide!a!vital!role!as!catalyst!in!implementation!of!the!proposed!Services!Sector! Development!Strategy.!However,!in!order!to!effectively!undertake!this!role,!it!will!require!not!only!the! appropriate!resources,!but!also!has!to!focus!more!precisely!on!its!role!of!facilitator!instead!of!having!to! justify!its!subvention!through!nonNcore!activities!that!should!be!undertaken!by!other!institutions!such!as! export!development.!!

SECTOR!ASSOCIATIONS!

There!are!in!excess!of!40!sector!associations!in!Barbados.!However,!the!majority!of!these!are!extremely! weak!and!fulfil!a!social,!rather!than!professional!function.!As!a!result,!resources!(including!permanent!staff)! are!limited.!The!functions!that!are!expected!of!a!modern!professional!or!trade!association!are!rarely! undertaken!and!these!associations!rely!heavily!on!the!work!of!the!BCSI!for!both!their!credibility!and!in! many!cases!survival.!!

Therefore,!there!is!a!real!need!for!the!strengthening!(probably!through!the!BCSI)!of!sector!associations!and! development!of!best!practices!amongst!these!organisations.!By!adopting!best!practice,!these!associations! could!make!a!significant!contribution!to!raising!standards!and!improving!performance!of!service!providers! within!the!sector!that!they!represent.!

A!number!of!key!characteristics!of!an!association’s!operations!are!required!in!order!for!it!to!be!effective:!!

• Is! properly! resourced.! Successful! both! in! generating! income! from! members'! subscriptions! and! from! sales!of!services!to!members,!and!to!others.! • Is!professional!and!ethical!in!its!approach.!Attracts!and!retains!high!calibre!staff.!Pulls!in!services!of!high! level! people! from! member! companies! for! representation! and! policy! development! purposes! when! necessary.! • Has! a! business! plan! which! sets! out! its! mission,! a! clear! strategy! and! priority! areas.! Developed! in! consultation!with!members.!Monitors!progress!against!it.! • Makes! best! use! of! appropriate! information! technology! to! minimise! costs! and! improve! quality! of! its! services!to!members.!

The!services!that!an!association!should!provide!to!its!members!will!vary!according!to!the!nature!and!level! of!development!of!the!sector,!but!could!include:!

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! works!proactively!to!improve!the!members'/sector's!profitability!and!competitiveness;! ! works!effectively!to!represent!the!members'/sector's!interests!at!all!levels!of!the!legislative!and! regulatory!process;! ! supplies!information!and!advice!to!members;! ! promotes!good!public!relations!and!communications;! ! promotes!market!opportunities;! ! promotes!training!and!education;! ! promotes!standards!and!product/service!quality;! ! promotes!innovation!and!technology!transfer;! ! offers!commercial!benefits.!

Due!to!the!size!and!resource!constraints!of!sector!associations!in!Barbados,!it!has!been!suggested!by!this! consultancy!that!the!administration!of!these!associations!be!“outsourced”!to!an!association!management! service!(which!it!is!suggested!be!operated!by!the!BSCI)!that!would!work!like!association!management! companies.!An!association!management!company!(AMC)!provides!a!specialist!service!to!trade!associations! by!undertaking!the!management!functions!that!are!normally!done!by!paid!staff!or,!in!the!case!of!some! smaller!associations,!volunteers.!There!are!only!a!few!AMCs!in!the!UK.!In!the!USA!there!are!a!large!number,! some!of!which!are!huge!organisations.!

By!providing!the!same!service!to!a!number!of!different!associations,!an!AMC!can!offer!the!benefits!of! economies!of!scale!and!also!wider!expertise!than!an!individual!association!could!command.!For!example,! an!AMC!running!ten!associations!can!afford!to!have!specialists!in!production!of!newsletters,!website! management!and!event!organising,!whereas!an!association!with!just!one!member!of!staff!cannot!expect!to! have!all!of!this!expertise.!

Set!out!below!is!a!very!broad!list!of!services!which!BCSI!(acting!as!an!AMC)!could!provide:!

! ! Phone/fax/address! ! Committee!support!! ! Website! ! Association!administration!! ! Meeting!rooms! ! Representation!and!press!work!! ! Events! ! Training! ! Newsletters!etc! ! Strategy! ! Financial!administration!! ! Database!management!Elections! ! Company!secretariat!! ! Virtual!office!

A!list!of!Association!Management!Companies!in!the!UK,!as!well!as!a!Guide!to!Association!Management!by! the!UK!Trade!Association!Forum!was!provided!by!the!consultancy!to!BCSI.!

INVEST!BARBADOS!

The!Barbados!International!Business!Promotion!Corporation!was!established!as!a!statutory!corporation!on! November!10,!2005!and!became!operational!in!2006!as!Invest!Barbados.!Invest!Barbados!therefore!now! assumes!the!responsibility!of!the!promotion!of!international!business.!Invest!Barbados!is!an!economic! development!agency!responsible!for!attracting,!winning!and!sustaining!international!investment!for! Barbados!and!is!also!responsible!for!helping!to!develop!and!manage!the!Barbados!international!business! brand.!

Its!stated!vision!is!"To!be!recognized!as!a!leading!investment!promotion!agency!by!virtue!of!our!success!in! winning!and!facilitating!international!business"!and!its!mission!is!"To!secure!and!facilitate!sustainable!

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foreign!direct!investment!and!international!business!that!result!in!increased!jobs,!technology!and!skills! transfer,!foreign!exchange!earnings!and!tax!revenues!for!Barbados."!

Invest!Barbados’s!services!include:!

! Promoting!and!landing!foreign!direct!investment! ! Providing!relevant,!timely,!current,!quality!information!to!investors! ! Ensuring!that!the!Barbados!environment!is!conducive!to!foreign!direct!investment! ! Developing!new!investment!products! ! Collaborating!with!stakeholders!to!manage!the!Barbados!business!brand!

Whilst!there!is!a!clear!role!in!delivering!elements!of!the!national!services!strategy,!the!majority!of! stakeholders!consulted!during!the!research!of!this!project!expressed!concerns!over!the!effectiveness!of! Invest!Barbados!in!terms!of!both!resources!and!skills.!

BARBADOS!INVESTMENT!AND!DEVELOPMENT!CORPORATION!(BIDC)!

BIDC’s!mission!is!to!“be!a!high!performance!organisation,!the!catalyst!for!innovative!and!productive! endeavours,!moving!companies!from!new!enterprise!status!to!international!competitiveness”.!Despite!its! name,!BIDC!does!principally!focuses!on!business!development!and!export!promotion!of!national!private! sector,!providing!support!in!terms!of!grants!and!services.!

! Small!Business!Support:!special!assistance!programmes!(grants,!mentorship,!incubators)!advisory! services!and!training!and!seminars.! ! General!Business!Services:!branding!and!marketing,!fiscal!incentives!(tax!rebates!for!manufacturers! only!–!services!not!included),!export!development!programmes!(trade!fairs!and!missions),!factory! space!and!market!information!services.!

Again,!there!is!a!clear!role!for!BIDC!in!support!export!development!in!the!services!sector.!However,!in! discussions!with!stakeholders,!the!reputation!of!BIDC!is!focused!more!in!administering!grants!and!financial! assistance!rather!than!any!real!value!in!business!support!services.!Even!where!export!development!services! are!provided,!business!was!more!interested!in!the!subsidy!element;!for!example!for!trade!mission! participation,!business!was!interested!in!obtaining!mission!costs!rather!than!the!skills!and!potential!in! arranging!meetings!with!potential!buyers.!!

NATIONAL!INITIATIVE!FOR!SERVICE!EXCELLENCE!(NISE)!

The!National!Initiative!for!Service!Excellence!(NISE)!is!an!organization!created!by!the!Social!Partnership!(the! trade!unions,!the!private!sector!and!government)!and!is!designed!to!lead!the!nationwide!effort!to!help! Barbados!consistently!deliver!service!excellence!and!be!recognised!internationally!for!this.!Its!mission!is!to! promote!and!facilitate!the!achievement!of!sustainable!excellence!within!organisations!and!to!assist! individuals!in!developing!excellence!as!an!ethic.!

Its!stated!goals!are:!

! To!create!a!national!culture!of!service!excellence;! ! To!help!Barbados!become!known!worldwide!for!service!excellence;! ! To!motivate!and!provide!the!tools!for!all!Barbadians!to!become!involved!in!the!achievement!of! service!excellence.!

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NISE!works!in!schools,!the!public,!private!and!nonNgovernmental!sectors!towards!the!achievement!of!a! sustainable!Barbadian!brand!of!worldNclass!service!excellence.!

NISE!aims!to!establish!a!National!Framework!for!Service!Excellence!through!seven!strategic!pillars!of! activities!that!will!provide!for!sustainable!service:!

• Research! N! NISE! provides! research,! benchmarking! and! comparative! analyses! of! service! excellence.! Studies! such! as! the! National! Customer! Satisfaction! Index! (NCSI)! is! used! as! a! base! for! service! improvement,!focusing!and!energizing!organisations!in!their!efforts!to!enhance!service.! • Leadership! N! NISE! prepares! leaders! of! organisations! across! all! economic! sectors! through! leader! to! leader!programmes!and!conferences;!and!study!tours!to!recognised!international! centres! of! service! excellence.! Given! Barbados’! engagement! in! the! Caricom! Single! Market! and! Economy,! NISE! also! provides! regional! leadership! in! service! excellence! by! spearheading! projects! with! partner! regional! institutions!such!as!CARICOM,!UWI,!CROSQ!and!CTO.! • Innovation!N!NISE!encourages!other!organisations!to!pursue!continuous!improvement!and!to!engage!in! process! reNengineering.! NISE! has! already! implemented! the! “100! Improvements! in! 100! Days! Programme”!which!takes!a!“bottomNup”!approach!to!process!improvement,!unleashing!the!innovation! and!creativity!of!Barbadians!at!all!levels!in!and!outside!of!the!workplace.! • Training! and! Development! N! NISE! undertakes! national! measures! of! service! quality! such! as! the! NISE! Employee! Engagement! Index! (NEEX)! which! assists! organisations! in! understanding! the! levels! of! and! drivers!of!employee!engagement.! • Accreditation!N!International!accreditation!and!certification,!to!be!undertaken!primarily!with!CXC!and! the!TVET!Council,!and!in!addition,!NISE!will!develop!the!National!Excellence!Framework,!awarding!the! NISE!stamp!of!service!excellence!to!outstanding!businesses.! • Partnership! with! Office! of! Public! Sector! Reform! N! Success! of! Barbados! also! depends! on! service! excellence! in! the! public! sector.! NISE! partnerships! with! the! OPSR! to! leverage! synergies! and! opportunities!for!developing!a!more!citizen!centred!public!service.! • Communication! N! NISE! will! build! its! repository! of! information! on! service! excellence,! sharing! and! disseminating!this!information!to!stakeholders!on!a!sustained!basis!through!mass!and!social!media!and! Community!Outreach!programmes.! • The!National!Service!Excellence!Awards!N!NISE!will!create!Barbados’!most!prestigious!service!awards!to! publicly!acknowledge!and!reward!organisations!and!individuals!who!consistently!achieve!the!highest! levels!of!service!excellence.!

There!are!clear!and!close!synergies!between!the!work!of!NISE!and!the!Services!Sector!Development! Strategy.!NISE!must!be!a!key!partner!with!BCSI.!Moreover,!the!reputation!of!NISE!is!strong.!However,!the! resources!available!are!limited!and!any!expansion!of!role,!will!require!additional!resources.!

PRODUCTIVITY!COUNCIL!

The!Productivity!Council!is!an!organization!established!under!the!Social!Partnership.!The!Productivity! Council!(formerly!the!National!Productivity!Board)!was!established!by!an!Act!of!Parliament!on!August!31,! 1993!to!further!the!objectives!of!the!Protocol!for!the!Implementation!of!a!Prices!and!Incomes!Policy!which! was!signed!by!Government,!employers!and!workers!representatives.!

The!stated!objectives!of!the!Productivity!Council!are!to:!

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! create!and!develop!methodologies!for!productivity!measurement,!management!and!improvement! in!the!public!and!private!sector;! ! provide!technical!advice!and!assistance!for!devising!productivityNrelated!payment!schemes.! ! engage!in!consultations!with!any!factNfinding!body!or!arbitration!tribunal!on!any!matter!relating!to! the!functions!of!the!productivity!council;! ! promote!and!monitor!all!aspects!of!productivity!growth;! ! assist!in!the!development!of!improved!methods!of!work!organisation!geared!to!the!enhancement! of!productivity!levels;! ! design,!advise!on,!and!conduct!educational!programmes!on!productivity;! ! disseminate!information!to!stimulate!public!awareness!and!promote!understanding!of!the!need!to! improve!the!quality!of!work!performance!nationally!and!in!the!context!of!international!trends!and! standards.!

The!experience!and!skills!of!the!Productivity!Council!mean!that!potentially!they!could!play!a!significant!role! in!implementation!of!the!National!Services!Strategy.!Moreover,!they!have!more!resources!than!both!BSCI! and!NISE!(both!of!whom!have!around!6!staff!each)!with!a!full!complement!of!17!full!time!staff!plus! associates.!During!the!research!however,!business!did!not!refer!to!the!Productivity!Council!at!all!–!this! indicates!that!traditional!focus!on!manufacturing!sector!rather!than!services.!Therefore!work!and! reorientation!based!on!national!priorities!could!be!beneficial!to!national!growth.!

BARBADOS!CHAMBER!OF!COMMERCE!AND!INDUSTRY!

The!Barbados!Chamber!of!Commerce!and!Industry!is!the!oldest!business!support!organisation!established! in!1825.!It!aims!to!support!local!businesses!prosper!and!grow!by!facilitating!a!more!enabling!business! environment!in!Barbados!and!the!CARICOM!Single!Market.!Its!goal!is!to!be!a!source!for!local!business!(trade! and!industry)!information!and!to!enhance!the!social!development!of!Barbadian!communities.!It!participates! in!policy!development!and!implementation!that!enhances!economic!development!in!Barbados.!

Its!services!include:!

! representation!N!members!are!represented!in!public/private!sector!fronts!such!as!the!social! partnership!between!government,!the!private!sector!and!the!trade!union!movement;!! ! network!N!assistance!and!information!on!potential!joint!ventures!and!facilitating!direct!links!with! key!local!and!regional!business!leaders!and!organisations;!! ! business!facilitation!N!lobby!government!for!improvements!in!stateNrun!mechanisms!that!influence! productivity!and!efficiency!of!businesses,!such!as!VAT,!international!transport,!customs!and!excise! and!commerce.!Also!promotional!activities!such!as!trade!missions!are!organised!for!business.!

The!Chamber!of!Commerce!and!Industry!could!have!a!role!in!implementation!of!the!Services!Sector! Development!Strategy!as!it!represents!some!key!stakeholders!that!may!not!be!represented!elsewhere.!

SMALL!BUSINESS!ASSOCIATION!

The!Barbados!Small!Business!Association!represents!micro,!small!and!medium!enterprises!and!incorporated! on!March!31,!1982.!!The!company!was!reNestablished!in!1993!following!a!dormant!period!during!the!midN 1980s,!and!officially!opened!its!Secretariat!in!December!1995.!!It!seeks!to!expand!business!opportunities!for! its!members,!provide!education!and!development!services!and!lobby!to!ensure!an!enabling!environment! for!the!growth!and!sustainability!of!the!SME!sector.!

Its!main!activities!are:!

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! training!courses!N!for!small!business!persons!to!better!equip!them!to!manage!their!businesses! (courses!in:!basic!accounting,!customer!service,!Microsoft!Office,!Quickbooks!(basic!to!advance),! small!business!management,!supervisory!management,!maximising!social!media!for!small!business,! strategic!planning!for!small!business);! ! SME!SMART!N!launched!in!2012!to!sensitise!the!public!and!increase!their!patronage!of!local!Micro,! Small!and!Medium!enterprises.!The!programme!focuses!on!galvanizing!the!support!of!the!general! public!to!SMEs!in!their!weekly!purchases!of!goods!and!services;!!! ! Small!Business!Week!N!2013!marked!the!tenth!consecutive!year!that!the!Small!Business!Association! (SBA)!hosted!a!week!of!activities!in!the!month!of!September.!Small!Business!Week!is!held!to! celebrate!the!achievements!of!members,!award!those!who!have!contributed!to!the!SME!sector!and! raise!the!consciousness!of!the!public!about!the!importance!of!small!businesses!to!economic! development.!

PRIVATE!SECTOR!ASSOCIATION!

The!Barbados!Private!Sector!Association!(BPSA)!is!the!umbrella!agency!of!private!sector!organisations!in! Barbados.!!The!role!of!the!Association!is!to!promote!and!defend!the!interests!of!the!private!sector!at!the! national!level.!The!BPSA!provides!these!organisations!and!their!members!with!representation,!information! and!counsel,!and!also!contributes!on!their!behalf!to!national!policy!and!social!development.!

The!BPSA!represents!the!private!sector!in!the!tripartite!mechanism!N!the!Social!Partnership!N!which!is! comprised!of!the!Government!of!Barbados,!the!Congress!of!Trade!Unions!and!Staff!Associations!of! Barbados!(CTUSAB)!and!the!BPSA.!

The!Barbados!Private!Sector!Association!contributes!to!national!policy!and!social!development!through! dialogue!with!its!social!partners!by:!

! providing!a!unified!voice!for!the!Barbados!private!sector!as!informed!by!its!membership;! ! leading!the!national!debates!on!economic!and!social!policy!issues!within!the!social!partnership;! ! influencing!national,!regional!and!international!trade!policy!to!ensure!private!sector!interests!are! represented;! ! leading!the!private!sector!in!influencing!local!and!regional!(i.e.!CARICOM!Single!Market)! government!policy!so!that!it!will!be!equitable,!workable!and!will!contribute!to!the!national!wellN being;! ! communicating!and!collaborating!on!national!development!issues!through!the!Social!Partnership! and!other!stakeholder!interest!groups!(including!opposition!parties!and!nonNgovernment! organisations);! ! influencing!private!sector!reform!and!development!in!order!to!maintain!national!economic! competitiveness! ! cultivating!the!climate!for!investment!and!sustainable!growth! ! promoting!the!further!development!of!industrial!relations!within!the!Social!Partnership;! ! articulating!the!private!sector’s!agenda!within!the!social!compact!in!such!a!way!as!to!make!the! work!of!the!Social!Partnership!relevant!to!the!needs!of!private!sector!business!in!the!globalised! economy;! ! being!positioned!to!respond!to!current!and!future!needs!of!affiliates;!and! ! furthering!the!development!of!a!mutually!beneficial!relationship!between!the!business!community! and!the!general!public.!

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BARBADOS!EMPLOYERS’!CONFEDERATION!

Barbados!Employers’!Confederation!was!established!in!1956!and!its!membership!is!private!sector! employers!that!represents!its!members!on!an!array!of!issues.!These!issues!include!Industrial!Relations,! Human!Resources!Management!and!Occupational!Health!and!Safety.!!Its!main!aims!are!to!assisting! businesses!with!their!people!management!strategy!through!the!development!and!promotion!of!good! industrial!relations!practices!at!the!macro!and!micro!levels.!

As!well!as!representing!its!members!at!national!fora!and!boards!(these!include!the!National!Insurance! Board,!the!National!HIV/AIDS!Commission,!the!Technical!Vocational!Education!and!Training!(TVET)!Council,! and!the!National!Advisory!Committee!on!Occupational!Health!and!Safety!(NACOSH),!providers!members! with!a!newsletter,!open!forums!and!numerous!training!programs!throughout!the!year.!!

As!a!social!partner!in!Barbados,!the!Barbados!Employers’!Confederation!is!actively!involved!in!developing! and!strengthening!relationships!with!government,!employee!representative!bodies,!and!private!sector.!This! includes!representation!at!the!regional!and!international!community!as!well,!through!alliances!with! organisations!such!as!Caribbean!Employers’!Confederation,!International!Organisation!of!Employers!and! International!Labour!Organization.!

3.3 Previous!Services!Strategy!and!Implementation!

In!2005,!The!Commonwealth!Secretariat!funded!through!Caribbean!Export,!a!Strategic!Marketing!Plan!for! the!Promotion!of!Professional!Services!Exports!for!Barbados!which!was!published!in!2007.!

OVERVIEW!OF!THE!STRATEGY!

The!report!concluded!that!Barbados!has!already!established!a!foot!hold!in!the!export!of!all!the!six! professional!service!sectors!examined!and!that!it!should!be!able!to!develop!a!market!offer!that!will!allow!it! to!succeed!in!what!are!huge!and!rapidly!growing!international!markets.!

However,!Barbados!has!little!profile!in!international!markets!and!lacks!the!scale!that!is!necessary!for!the! cluster!formation!and!specialisation!that!are!important!success!factors!in!these!markets.!This!lack!of!market! presence!makes!it!difficult!for!domestic!businesses!to!market!their!services!abroad!and!to!attract!significant!! foreign!investment.!Further,!the!country’s!export!and!investment!promotion!efforts!are!still!oriented! towards!agriculture!and!manufacturing.!

The!potential!of!promoting!professional!service!exports!to!benefit!Bajans!and!the!economy!is!yet!to!be! appreciated!fully!by!policy!makers.!!

Thus,!the!marketing!strategies!for!all!six!sectors!comprised!a!set!of:!i)!brand!awareness!raising!activities! including,!in!some!sectors,!foreign!direct!investment!promotion!to!increase!scale!and!access!to!customers;! ii)!direct!marketing!support!to!SMEs!and;!iii)!enabling!environment!reforms!specific!to!the!industry.!These! measures!need!to!be!accompanied!by!actions!to!reduce!generic!constraints.!Market!access!issues!are!not!a! major!constraint!to!the!growth!of!professional!service!exports!but,!in!all!sectors,!there!are!a!set!of!issues! that!should!take!up!in!appropriate!negotiating!forums.!

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In!summary,!the!prospects!of!individual!sectors!were!identified!as!follows:! Health! and! Wellness:! Barbados! is! wellNplaced! to! benefit! from! the! exponential! growth! of! health! care! tourism,! particularly!from!the!US!market!where!rising!health!care!costs!are!creating!unstoppable!drivers!to!seek!lower!cost! services! abroad.! Whilst! not! the! cheapest! in! the! region,! Barbados’s! offer! of! lower! cost,! high! quality! treatment,! provided!by!internationally!trained!professionals!in!an!English!speaking,!holiday!destination!is!competitive.!A!target!of! exporting! US$! 45N50! million! worth! of! exports,! encompassing! medical! treatment,! spas! and! alternative! medicine,! diagnostic!and!research!services!and!nursing!and!elderly!care,!is!achievable!over!a!5!year!time!horizon.! Education:! The! primary! opportunity! for! Barbados! is! in! English! Language! Training! (ELT).! Public! and! private! sector! training!facilities!exist!and!are!exporting!to!students!in!the!region!(Martinique,!Venezuela).!Large!markets!in!the!region! (Brazil)!and!the!large!and!growing!demand!from!Asia,!especially!,!Japan!and!South!Korea,!remain!untapped.!A! target!of!increasing!educational!exports!by!US$!20!million!over!5!years!appears!realistic.! Business!Outsourcing:!The!global!market!for!outsourcing!of!business!development!services!(BDS)!is!large!and!growing.! The!best!opportunities!for!Bajan!firms!are!to!strengthen!their!already!strong!position!in!the!regional!market!where!the! country’s!large!numbers!of!professionals!and!a!few!large!firms!provide!it!with!competitive!advantage,!particularly!over! the!smaller!.!It!may!also!be!possible!to!attract!to!Barbados!specialist!outsourcing!firms!looking!for!nearNshore! presence!in!finance!and!accounting!services.!The!Bajan!diaspora!could!help!in!the!process!of!export!promotion.!A! modest!target!of!increasing!BDS!exports!by!US$!5!million!over!5!years!would!appear!realistic.! ICT:!It!should!be!possible!to!attract!new!foreign!investment!in!this!field,!especially!if!financial!sector!firms!based!in! Barbados!can!be!motivated!to!establish!joint!ventures.!For!the!immediate!future,!the!IT!industry’s!export!prospects! will! lie! in! serving! the! regional! market! where! its! better! trained! work! force! and! distributorships! for! international! companies! will! provide! it! with! competitive! advantage.! A! target! of! growing! exports! by! US$! 15! million! over! 5! years! appears!realistic.! Construction!Related!Services:!The!best!prospects!lie!within!the!CSME!in!the!near!future.!There!are!good!prospects! also!in!the!UK!market!for!engineering!services.!The!UK!is!short!of!engineers!and!Barbados!has!a!substantial!number!of! engineers!that!are!members!of!the!UK!Institute!of!Civil!Engineers!which!will!help!to!overcome!potential!resistance! over!the!quality!of!service.!Barbados!is!cost!competitive.!A!target!of!increasing!exports!by!US$!7.5!million!over!5!years! appears!feasible.! Production!Services!for!the!Entertainment!Industry:!The!world’s!music!and!film!production!and!event!management! industries! are! large! and! increasingly! international.! With! an! increasing! reliance! on! production! services! for! special! effects! and! the! use! of! digital! production! technology,! they! have! become! capital! intensive.! Dubai! and! India! have! invested!in!state!of!the!art!film!cities.!Barbados!cannot!compete!against!such!facilities.!The!primary!opportunity!for! Barbados! in! this! sector! is! in! exporting! music! and! video! production! services,! based! on! the! reputation! of! its! music! industry,!the!image!of!the!island!and!its!video!production!facilities.!A!target!of!increasing!exports!by!US$!7.5!million! over!5!years!appears!feasible.!

PROPOSED!ACTIONS!AND!STRATEGIES!

The!report!recommended!the!formation!of!industry!working!groups!for!each!sector!that!comprise!leading! representatives!of!the!public!and!private!sectors.!These!should!have!been!mandated!by!cabinet!to! implement!and!exercise!oversight!over!the!marketing!strategies!for!each!sector.!It!was!recommended!that! the!Barbados!Investment!and!Development!Corporation!(BIDC)!should!serve!as!secretariat!for!each!working! group!and!take!responsibility!for!implementation!of!the!strategy.!

To!coNordinate!and!support!the!implementation!of!individual!working!groups,!it!was!recommended!that!the! formation!of!a!small!task!force!reporting!to!Cabinet.!!

The!BIDC!would!require!help!and!guidance!from!Caribbean!Export!in!promoting!professional!service! exports,!attracting!foreign!investment!in!these!sectors!and!undertaking!enabling!environment!reforms.!!

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EXPERIENCE!OF!IMPLEMENTATION!

It!is!understood!that!the!then!Minister!of!Planning!approved!the!strategy!and!called!for!its!full! implementation!starting!end!2007.!However,!no!task!force!or!working!groups!were!established!or! mechanism!to!supervise!or!monitor!implementation.!The!task!was!simply!given!to!the!BIDC!(Service!Unit).! Moreover!BIDC!did!not!fully!implement!the!strategy!as!defined!in!the!workplan!but!examined!the!research! and!selectively!undertook!trade!missions!and!participated!in!some!trade!fairs!in!the!six!sector!identified.! This!was!neither!a!consistent!or!cohesive!approach.!At!the!time!of!this!mission,!there!was!no! documentation!available!on!the!number,!frequency!and!results!of!such!activities.!!

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Sector!Profiles! !Draft!Final!Report!

4 Sector'Profiles! This! chapter! provides! a! summary! of! the! key! services! sector! (excluding! mainstream! tourism)! in! Barbados,!including!an!overview!of!the!global!market,!the!structure!of!the!industry!in!Barbados,!an! estimation!of!the!potential!(based!on!a!number!of!assumptions)!the!challenges!to!be!met!in!order!to! realise!the!opportunities.!

4.1 Business!Process!Outsourcing!(BPO)!

DEFINITION!

The!definition!of!Business!Process!Outsourcing!is!a!broad!term!to!include!the!hiring!(outsourcing)!of! an!outside!company!to!undertake!specific!business!functions.!The!most!common!BPO!functions!are:! customer!services!and!sales;!finance,!accounting!and!payroll;!human!resource!management!and! procurement!and!logistics.!It!also!includes!Knowledge!Process!Outsourcing!(KPO),!which!is!defined!as! activities!which!require!greater!skills,!knowledge!and!education!to!handle!(essentially!higher!value! BPO!across!the!main!sectors).!BPO!does!not!generally!include!ICT!and!software!development.!

GLOBAL!MARKET!

The!global!BPO!industry!(including!outsourcing!business!services!to!national!and!foreign!companies)! was!estimated!at!US$!135!billion!(B$!270!billion)!in!20116,!of!which!some!US$!25!billion!(19%)!is! outsourced!to!foreign!countries.!The!BPO!market!is!fast!growing!with!average!annual!growth!rates!of! 6.6%!over!recent!years!and!a!rise!in!offshore!outsourcing!(from!only!10%!in!2008!to!19%!in!2011).! The!main!market!segment!is! KPO! customer!services!and!sales!which! Figure!1:!Global!BPO!Market! 2%! accounts!for!over!50%!of!total!BPO! Logistcs! 3%! services.!

Almost!75%!of!US!and!European! multinational!companies!now!use! Human! BPO!services.!Overall!29%!of!US!and! Resource! 18%! European!companies!expect!to! increase!their!use!of!BPO!in!the! Customer! near!future.!! Finance/ Services! Accounts! 54%! India!has!by!far!the!largest!share!of! 23%! the!world’s!BPO!with!over!50!per! cent!of!world!exports!and!more! than!245,000!people!employed!in! exporting!BPO.!Ranked!second!is! China!with!an!estimated!14!per!cent!of!exports!followed!closely!by!the!,!which!has!a! further!12!per!cent!and!over!200,000!employees.!Malaysia!is!the!fourth!largest!supplier!of!BPO! whilst!developed!countries!such!as!Canada!and!Ireland!have!8.5!and!7.5!per!cent!of!global!exports!

6!Market!Share!Analysis:!BPO!(2012)!Gartner!

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respectively.!Other!relatively!new!countries,!are!developing!offshore!BPO!industries!including! Eastern!Europe,!Morocco,!Egypt!and!South!Africa.!

The!global!market!for!end!users!of!BPO!is!dominated!by!the!USA!which!represents!59!per!cent!of!the! market.!Europe!follows!with!27!per!cent!and!is!set!to!grow!rapidly!over!the!next!few!years!as!it! catches!up!with!the!US!and!tries!to!become!globally!more!competitive!through!reducing!costs.! Table!8:!Principal!BPO!Market!in!2010! Market Market Share%

USA 59%

Europe 27%

Asia Pacific inc Japan 9%

Other 5%

The!driving!factor!behind!the!development!of!offshore!outsourcing!has!been!the!need!to!cut!costs! (especially!now!during!the!global!)!while!the!enabling!factor!has!been!the!global!electronic! internet!network!that!allows!digital!data!to!be!accessed!and!delivered!instantly,!from!and!to!almost! anywhere!in!the!world.!

THE!BPO!INDUSTRY!IN!BARBADOS!

Business!process!outsourcing!sector!is!part!of!business!and!finance!services!valued!at!B$!2.3!billion! and!part!of!export!of!“Other!Business!Services”!valued!at!B$!750!million.!Data!on!the!BPO!sector!in! Barbados!is!not!readily!available.!Discussions!with!a!variety!of!associations!and!operators!suggest! that!there!are!perhaps!around!20!companies!in!Barbados!involved!in!customer!service!call!centres,! finance!and!accounting!back!office,!insurance!claim!processing!and!pharmacy!prescription! processing.!It!is!also!claimed!that!5,000!persons!are!employed!across!the!sector.!! Table!9:!Average!wages!and!revenue!per!employee!in!BPO! India Scotland US

Average per agent labour costs per US$400 US$ 1,500 US$ 2,000 month Labour costs as percentage of total 33% 67% 67% costs Average revenue per employee US$ 16,000 US$ 24,000 US$ 34,000

Assuming!that!costs!and!revenue!per!employee!equate!to!a!level!averaged!between!that!of!Scotland! and!India!(at!US$20,000!for!both!voice!and!nonNvoice!BPO)7!then!the!sector!in!Barbados!could!be! valued!at!US$!100!million!(B$200!million).!This!indicates!that!BPO!represents!9%!of!the!business!and! finance!services!group!and!given!it!is!likely!that!the!majority!(if!not!all)!of!BPO!is!export!oriented,! then!BPO!could!be!around!27%!of!“Other!Business!Services”!exports.!

BPO!POTENTIAL!IN!BARBADOS!

There!is!no!doubt!that!BPO!is!an!important!sector!to!the!services!industry!in!Barbados.!However,! high!staff!turnover!rates!across!the!global!industry!(averaging!40%!in!Indian!call!centres)!and!the!size! of!Barbados’s!“graduate”!workforce!will!limit!growth.!However,!much!of!Barbados’s!BPO!sector!is!

7!India’s!ITeS!and!BPO!Industry!(2013)!Dunn!and!Bradstreet!

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Sector!Profiles! !Draft!Final!Report!

“low!end”!and!therefore!any!growth!is!likely!to!derive!from!movement!up!the!BPO!value!chain!to! KPO!activities.!The!global!KPO!market!has!grown!by!46!per!cent,!from!US$1.2!billion!in!2003!to! US$17!billion!in!2010!and!there!has!been!a!move!in!some!outsourcing!companies!towards!jobs!for! jobs!for!doctors,!engineers,!chartered!accountant!and!architects.8!A!move!towards!KPO!has!several! benefits!for!Barbados!with!lower!staff!turnover!rates!(as!low!as!4%!per!annum)!and!much!higher! revenue!per!employee!at!an!average!US$!55,000.!!

So!for!example,!attracting!an!additional!2,000!KPO!jobs!to!Barbados,!could!generate!around!US$!110! million!(B$220!million)!in!revenue,!contributing!an!additional!2.5%!to!GDP.!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific! context!of!Barbados.! The!main!decision!criteria!for!selection!of!offshore!BPO!providers!by!international!clients!are:!! • Availability!of!qualified!workforce! • Costs!! • Information!Communications!Technology!infrastructure! • Time!Zones!! • Language! • Quality!Assurance!! • Track!record!(Brand!reputation)!

• Confidentiality! The!types!of!constraint!to!be!addressed!are:! 1. Availability!of!qualified!workforce.!Sufficient!high!level!graduate!and!post!graduates!will!be! required!if!Barbados!is!to!over!up!the!value!chain!to!KPO!services.!The!availability!(numbers!and! qualifications)!of!potential!workers!will!have!to!be!examined!and!any!necessary!policies!put!in! place!to!address!this.!The!universities!and!community!colleges!offer!well!reputed!IT!and!business! programs.!The!current!problem!however,!is!that!“they’re!graduating!a!lot!of!workers,!but!those! workers!don’t!have!the!requisite!experience,”!according!to!KM2!Solutions!(in!Barbados).!“In!our! own!business!we!haven’t!been!that!successful!at!finding!qualified!tech!workers,!and!the!lack!is! not!in!terms!of!education!but!in!terms!of!concrete!IT!work!experience.”!9! 2. Costs:!Costs!are!a!key!criteria!for!any!outsourcing!(it’s!the!main!motivation).!There!needs!to!be!a! significant!cost!difference!between!the!original!and!outsourced!countries!in!wages,!rentals,! communications!and!energy.!Costs!in!Barbados!are!generally!high,!but!this!becomes!less! problematic!as!business!is!sought!higher!up!the!BPO!value!chain.!Nevertheless,!costs!are!still! important!and!need!to!be!investigated!further.!! 3. ICT!infrastructure:!The!quality!of!ICT!infrastructure!available!(reliability!and!bandwidth)!can! severely!affect!competitiveness!in!KPO!provision.!In!addition,!the!availability!of!ICT!equipment! will!also!affect!competitiveness,!as!will!the!servicing!and!maintenance!of!ICT!systems.!Where! equipment!has!to!be!imported!and/or!serviced!by!foreign!providers,!ease!of!entry!to!Barbados! of!service!providers!and!products!(eg!import!duties!treatment)!could!be!a!factor.!

8!Knowledge!Process!Outsourcing!(KPO)!Services!(2013)!KPOExperts! 9!Caribbean!IT!Talent!Supply:!Can!Dominican!Republic,!Jamaica!and!Barbados!Go!Higher!Value?!(2011)!NearshoreAmericas!

Barbados!Services!Sector! ! 36! www.ctaeconomic.com! Development!Strategy! ! ! !Draft!Final!Report! Sector!Profiles!

4. Time!Zones:!NearNshoring!(use!of!neighbouring!countries!for!outsourcing)!is!particularly! important!for!KPO!services.!Therefore,!Barbados!has!is!well!suited!for!North!American!markets.! 5. Language:!Again,!language!proficiency!is!important!and!becomes!increasingly!important!as!KPO! services!are!developed.!For!voice!BPO,!accent!is!also!a!key!determinant!(for!example,!US!Indian! accents!have!been!seen!to!be!unacceptable!whereas!Philippines!accent!are!not.!! 6. Quality!Assurance.!Services!delivery!is!not!“physical”!in!the!sense!of!being!able!to!provide!clients! with!samples,!as!with!a!product.!Therefore,!“quality!assurance”!of!services!becomes!vital!to! provide!clients!with!the!confidence!that!the!services!provided!will!be!consistent!and!of!a!high! standards.!Development!of!industry!standards,!codes!of!practice!and!quality!assurance!schemes! are!areas!to!develop!(this!may!also!include!ethics!and!labour!standards).! 7. Track!record:!Allied!to!quality!is!experience!working!with!other!organisations!to!a!satisfactorily! level.!The!use!of!sector!organisation,!case!studies,!promotion!and!branding!may!be!considered.!! 8. Confidentiality:!One!of!the!most!important!issues!is!to!keep!the!customer’s!data!secure!at!the! providers’!site.!!This!relates!to!both!security!(protecting!information!from!unauthorised!access)! and!disclosure!of!information.!These!issues!can!be!addressed!through!development!of!standards! and!an!enforced!legal!framework.!

4.2 International!Business!Companies!(IBC)!

DEFINITION!

International!Business!Companies!(IBCs)!are!limited!liability!companies!registered!by!international! corporations!in!tax!efficient!jurisdictions!outside!their!normal!country!of!operation.!The!ownership! and!business!activities,!in!general,!lie!outside!the!country!of!registration!(outside!Barbados).!

GLOBAL!MARKET!

IBCs!have!grown!in!recent!years!due!in!part,!to!the!growth!of!global!value!chains!that!mean!that!a! company!based!in!one!country!can!produce!in!one!or!more!other!countries!and!supply!goods!to!a! third!country!without!ever!involving!its!own!country!of!origin.!Therefore,!for!efficient!legal!tax! planning,!offshore!companies!provide!an!important!vehicle!to!support!and!manage!these! international!global!value!chains.!Statistics!on!the!number!of!IBCs!worldwide!and!the!value!of!the! industry!to!host!countries!globally!are!not!available!as!there!has!been!a!degree!of!secrecy!and! confidentiality!surrounding!the!sector!in!general.!However,!in!recent!years,!with!the!growth!of!antiN terrorism!financing!and!antiNmoney!laundering!initiatives,!greater!regulation!and!transparency!is! being!introduced!to!the!sector,!especially!through!standards,!guidelines!and!best!practise!issued!by! the!Organisation!for!Economic!CoNoperation!and!Development!(OECD)!and!the!Financial!Action!Task! Force!on!Money!Laundering!(FATF).!FATF!issues!a!list!of!"NonNCooperative!Countries!or!"! (NCCTs),!commonly!called!the!FATF!Blacklist.!The!effect!of!the!FATF!Blacklist!has!been!significant,! and!arguably!has!proven!more!important!in!international!efforts!against!money!laundering!than!has! the!FATF!Recommendations.!While,!under!international!law,!the!FATF!Blacklist!has!no!formal! enforcement!or!sanction,!in!reality,!a!jurisdiction!placed!on!the!FATF!Blacklist!has!often!found!it! difficult!to!attract!any!legitimate!IBCs!which!has!led!many!OECD!countries!to!place!financial!pressure! on!these!states.!

The!driving!factors!for!the!sector!are:!

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! exemption!from!local!corporate!taxation!and!stamp!duty,!provided!that!the!company! engages!in!no!local!business!(annual!agent's!fees!and!company!registration!taxes!are! still!payable,!which!are!normally!a!few!hundred!U.S.!dollars!per!year)! ! preservation!of!confidentiality!of!the!beneficial!owner!of!the!company! ! wide!corporate!powers!to!engage!in!different!businesses!and!activities! ! abrogation!or!restriction!of!the!requirement!to!demonstrate!corporate!benefit! ! the!ability!to!issue!shares!in!either!registered!or!bearer!form! ! an!abrogation!of!any!requirements!to!appoint!local!directors!or!officers! ! provision!for!a!local!registered!agent!

THE!IBC!INDUSTRY!IN!BARBADOS!

The!IBC!sector!is!part!of!business!and!finance!services!valued!at!B$!2.3!bn!and!export!of!other! business!services!B$!750!million.!Data!on!the!IBC!sector!in!Barbados!is!not!readily!available.! Discussions!with!a!variety!of!associations!and!operators!suggest!that!there!are!approximately!4,000! IBCs!registered!in!Barbados,!employing!around!3,000!full!time!employees.!The!value!of!this!sector!to! Barbados!is!determined!by!registration!fees!(US$450!pa),!local!taxes!(sliding!profit!tax!from!2.5N 0.5%),!salaries!to!local!staff!and!agents!as!well!as!other!business!services!provided!to!these! companies!such!as!banking,!legal!and!audit!and!accounting!services.!If!it!is!assumed!average!1!full! time!staff!member!of!US$!12,000,!fees!of!US$450!and!other!agent,!legal,!financial!services!of! US$!50,000!per!business!per!annum,!then!the!value!of!the!sector!would!equate!to!US$250!million! (B$500!million)!+!profit!tax.!

IBC!POTENTIAL!IN!BARBADOS!

The!size!of!Barbados’s!IBC!sector!is!relatively!small!compared!with!others!in!the!region!such!as! Cayman!and!BVI!(BVI!for!example!has!600,000!IBCs!registered).10!!Therefore,!there!is!scope!to! increase!the!number!of!registrations.!By!targeting!large!“legitimate”!corporations,!a!25%!rise!in! registrations!and!associated!salary!and!business!servicing!revenues!could!for!example,!create!an! additional!750!direct!jobs!in!Barbados,!could!generate!around!US$!62.5!million!(B$!125!million)!in! revenue!to!GDP.!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific! context!of!Barbados.! The!main!decision!criteria!for!selection!of!IBC!by!international!corporations!are:!! • Competitiveness!(Tax!rates!and!BDS!costs)! • International!reputation!! The!types!of!constraint!to!be!addressed!are:! 1. Competitiveness!(Tax!rates!and!BDS!costs).!The!“legitimate”!reason!for!establishing!an!IBC!is! founded!in!efficient!tax!planning!to!save!the!business!money!for!its!shareholders.!Therefore,!the! tax!regime!compared!to!global!competitors!(BVI,!Seychelles,!Channel!Islands!etc).!In!addition,! the!quality!and!cost!of!management!agents!and!other!business!development!services!providers! also!affects!competitiveness!of!destinations.!

10!BVI!Offshore!Advantages!(2013)!Fidelity!Corporate!Services!

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2. International!reputation:!The!majority!of!business!in!the!IBC!comes!through!referrals!from! source!country!tax!and!business!advisors.!Reputation!as!a!safe,!secure!and!credible!destination! with!internationally!recognised!rigorous!regulation!and!supervision!of!the!sector.!Therefore,!the! legal,!regulatory!and!enforcement!of!international!standards!(especially!those!set!by!FATF,!OECD! and!Global!Forum!on!Transparency!and!Exchange!of!Information!for!Tax!Purposes.!!

4.3 ICT!Services!

DEFINITION!

The!global!ICT!industry!comprises!computer!hardware,!software,!computer!services!and! communications.!Therefore,!ICT!services!is!a!specific!subset!of!ICT!industry!as!a!whole!and!includes! computer!software!and!computer!services.!Computer!software!includes!the!value!of!purchased!or! leased!packaged!software!such!as!operating!systems,!database!systems,!programming!tools!and! applications.!It!excludes!expenditures!for!internal!software!development!and!outsourced!custom! software!development.!Computer!services:!includes!the!value!of!outsourced!services!–!domestic!or! offshore!–!such!as!IT!consulting,!computer!systems!integration,!outsourced!custom!software! development,!outsourced!web!design,!network!systems,!network!systems!integration,!office! automation,!facilities!management,!web!hosting,!and!data!processing!services.!It!would!not!include! IT!helpdesks!which!would!be!part!of!the!BPO!sector.&

GLOBAL!MARKET!

The!global!market!for!computer!software!and!services!(excluding!software!embedded!in!devices)! amounted!to!an!estimated!US$1.2!trillion!in!2011,!comprising!US$844!billion!in!computer!software! and!US$!357!billion!in!computer!services.11!Developed!countries!account!for!the!largest!share!of!the! global!market.!North!America!and!Europe!account!for!80%!of!the!total!market!in!2011!(figure!2).!The! remaining!share!is!mainly!accounted!for! Figure!2:!ICT!Services!Region! by!Asia,!while!markets!in!the!developing! Middle! regions!of!Africa,!Latin!America!and!the! Africa! East! 1%! 1%! Middle!East!corresponded!to!only!4!per! Latn! cent,!well!below!their!share!of!world! America! 2%! GDP!(10!per!cent).!This!suggests! AsiaN significant!scope!for!market! Pacific! development!of!the!computer!software! 16%! North! and!IT!services!in!developing!countries.! America! Growth!is!much!higher!in!these! 46%! economies,!growing!by!40%!between! 2008!and!2012!compared!to!only!15%!in! North!America.12!!! Europe! 34%! Exports!of!computer!and!information! services!amounted!to!US$215!billion!in!

11!Information!Economy!Report!(2012)! 12!European!Information!Technology!Observatory!(EITO)!Survey!(2011)!

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2010,!and!have!doubled!since!2005!reflecting!strong!growth!in!outsourcing!ICT.!!

In!value!terms,!Ireland!is!the!leading!exporter!with!exports!rising!from!US$7!billion!to!US$37!billion! between!2000!and!2010.!In!Costa!Rica,!India!and!the!Philippines,!computer!and!information!services! account!for!1–2!per!cent!of!GDP.!The!main!developing!country!exporters!of!computer!and! information!services!among!exporters!are!all!Asian!and!include!India!(15.7%),!China!(4.3%),!the! Philippines!(0.9%)!and!Singapore!(0.8%).! Table!10:!Principal!ICT!Suppliers!Market!in!2011!(US$!bn)! Market Value of ICT Market Services Share% Export

Ireland 37.2 17.3%

India 33.8 15.7%

Germany 16.0 7.5%

US 13.8 6.4%

UK 10.9 5.0%

China 9.3 4.3%

Total 215.2

The!European!Union,!US!and!Japan!are!the!top!three!importers!while!the!BRIC!countries!are!among! the!top!ten.!

Current!demand!drivers!of!software!industry!development!include!mobile!communications!and! social!networking!growth!as!well!as!cloud!computing!and!demand!for!national!content.!The!growth! of!freelancing!and!crowdsourcing!services!is!also!a!key!future!trend.!

THE!ICT!INDUSTRY!IN!BARBADOS!

The!ICT!sector!is!part!of!business!and!finance!services!which!are!valued!at!B$!2.3!billion.!ICT!services! exports!from!Barbados13!total!B$!22.8!million!and!industry!observers!and!participants!estimate!that! exports!represent!only!25%!of!the!value!of!the!sector.!Therefore,!it!is!estimated!that!total!sales!of! ICT!services!in!Barbados!are!B$!91.2!million.14!There!are!approximately!100!firms!in!the!sector,!the! majority!of!whom!(65%)!are!small,!employing!an!average!of!5!people,!30%!medium!sized!employing! an!average!of!20!and!5%!large!firms,!employing!an!average!of!40!people.!Therefore!it!is!estimated! that!around!1,125!persons!are!employed!in!the!sector.!!

The!main!constraints!reported!by!the!sector!are:! ! Lack!of!professional!standards! ! Lack!of!legislation!for!data!protection!(improper!and!careless!use!of!data)! ! Lack! of! understanding! of! the! sector! amongst! financial! institutions! and! venture! capitalists!resulting!in!low!levels!of!investment!!

13!calculated!from!balance!of!payments!data!by!UNCTAD!(2013)! 14!Note!the!Barbados!Association!of!ICT!Professionals!estimated!the!total!value!of!the!sector!in!Barbados!for!B$10!million,! but!this!is!less!than!half!of!official!ICT!Services!exports.!!

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ICT!POTENTIAL!IN!BARBADOS!

Global!markets!for!ICT!services!are!growing!rapidly!and!given!the!relative!success!of!exports!to!date! and!the!numbers!of!local!ICT!graduates!producing!upwards!of!400+!graduates!per!year!(BCC!100!and! UWI!300)15!there!is!scope!to!develop!upstream!ICT!services!for!the!global!market.!ICT!jobs!are!higher! paid!than,!for!example,!BPO!jobs,!reflecting!the!high!revenue!per!employee!potential.!!! Table!11:!Salaries!and!Income!in!ICT!(US$)! Market Average Revenue per Salaries employee

Ireland 54,000 650,000

India 9,000 55,000

Germany 47,500 209,000

UK 50,386 214,000

Barbados - 40,500

So!for!example,!if!Barbados!could!increase!the!number!of!large!firms!in!the!ICT!sector!by!an! additional!20!firms,!creating!an!additional!800!jobs!and!increase!earnings!per!employee!to! US$!60,000!then!Barbados!could!generate!around!US$!48!million!(B$!96!million)!in!revenue.!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific! context!of!Barbados.! The!main!criteria!for!development!of!a!competitive!ICT!sector!are:!! • Capacity!of!ICT!Firms!! • Securing!access!to!relevant!skills! • Fostering!software!demand!!

• A!modern!legal!framework!! The!types!of!constraint!to!be!addressed!are:! 1. Capacity!of!ICT!Firms:!Encouraging!quality!of!firms!through!certification,!standards!and! certification!schemes.!!! 2. Securing!access!to!relevant!skills:!Skills!development!through!the!education!system!and! specialised!institutions!(linking!industry!to!education!provision!to!ensure!supply!meets!demands! of!business)!and!inNhouse!training!to!develop!graduates!into!productive!employees.! 3. Fostering!software!demand:!Public!procurement!as!a!tool!to!boost!domestic!demand!and! promoting!greater!ICT!use!in!the!private!sector!will!help!develop!and!broaden!skills!in!the! domestic!market!that!can!then!be!transferred!to!international!markets!(based!on!experience! and!skills)!! 4. A!modern!legal!framework:!Intellectual!property!regulation!and!enforcement!and!electronic! transactions!are!some!of!the!legal!frameworks!that!need!to!be!develop!to!support!the!software! sector.!

15! Strategic! Marketing! Plan! for! Professional! Services! Exports! –! Barbados! (2007)! Caribbean! Export/Commonwealth! Secretariat!

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4.4 Tertiary!Education!Services!

DEFINITION!

The!World!Bank16!defines!tertiary!education!as!including:!!universities!as!well!as!institutions!that! teach!specific!capacities!of!higher!learning!such!as!colleges,!technical!training!institutes,!community! colleges,!nursing!schools,!research!laboratories,!centres!of!excellence,!and!distance!learning!centres.!!

Within!the!context!of!Barbados,!a!further!subNsector!breakdown!to!include!higher!education! (undergraduate,17!post!graduate!and!research),!technical!vocational!education!and!training!! (including!Beauty,18!ICT,!business!and!management!and!hospitality,!tourism!and!catering),!English! Language!Training!(ELT)!and!Professional!Qualifications!(such!as!Accounting,19!Nursing!training20!and! Medical).!

GLOBAL!MARKET!

Tertiary!Education!sector!

The!global!market21!for!education!exports!is!estimated!at!over!US$40!bn.!An!estimated!3!million! students!study!full!time!higher!education!outside!their!home!countries!(this!excludes!exchange! students)!with!an!estimated!value!of!US$30!bn.!In!addition,!over!1.3!million!students!travel!to!study! English!as!a!foreign!language!with!an!estimated!market!value!of!US$!10!billion.22!There!is!also!a! growing!market!for!travel!for!technical!and!vocational!education!and!professional!education!(such!as! nursing!and!accounting)!although!no!figures!are!readily!available!for!these!segments.!

Higher!education!

Of!the!US$!30!billion!market!for!higher!education!services!export,!the!top!destination!remains!the! EU!(with!UK,!Germany!and!France!alone!32%)!accounting!for!about!one!third!and!US,!accounting!for! just!less!than!one!quarter!(22%)!of!the!market!! Table!12:!Global!Higher!Education!Destinations!! Top Host Destinations Global Market Share

United States 22%

United Kingdom 12%

Germany 10%

France 10%

Australia 7%

16! http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION/0,,contentMDK:20298183~menuPK:617592~pageP K:148956~piPK:216618~theSitePK:282386,00.html#what_why! 17!Excludes!medical!and!nursing!qualifications!that!would!be!recognized!for!practice!nationally!or!internationally! 18! Excludes,! in! the! context! of! Barbados! training! in! massage! and! alternative! therapies! such! as! Reiki.! Although! strictly! speaking!these!would!fall!into!this!or!“other!education!services”!categories,!it!is!more!relevant!from!a!policy!perspective!to! include!it!in!any!survey!of!the!wellness!sector!as!any!policy!decision!to!promote!wellness!would!include!wellness!skills!and! training.! 19!This!would!not!include!degrees!but!would!comprise!professional!qualifications!such!as!Association!of!Chartered!Certified! Accountants!(ACCA)! 20!This!would!include!degrees!and!associate!degrees!required!for!international!or!national!registrations! 21!OECD,!Education!at!a!Glance,!2007! 22!Language!Travel!Magazine!(2011)!

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China 6%

Japan 5%

Canada 3%

Other 25%

Total 100%

Source:!OECD,!Education!at!a!glance,!2007!

The!number!of!students!studying!abroad!is!rising!at!over!15%!per!annum!and!the!places!available!in! the!traditional!global!education!destinations!(US,!UK,!Germany,!France!and!Australia)!are!declining! and!visas!are!ever!more!difficult!to!obtain,!even!for!genuine!students.!Therefore,!there!is!an! increasing!opportunity!for!new!destinations!to!emerge!and!attract!these!students.!

English!Language!Training!

The!global!market!for!ELT!is!estimated!at!US$!10!billion!per!year.!More!than!twoNthirds!of!ELT! students!travelling!for!study!originate!from!Asia!(China,!Korea,!Japan!and!Taiwan).!Following!Asia,! Europe!(Russia!and!)!and!Latin!America!(Brazil)!represent!significant!markets!for!ELT.!!

The!UK!is!the!largest!exporter!of!ELT!representing!over!50%!of!the!global!market!followed!by!US,! Canada,!Australia!and!Ireland.! Table!13:!Global!ELT!Destinations! Top Host Destinations Global Market Share

United Kingdom 54%

United States 16%

Canada 13%

Australia 8%

Ireland 6%

New Zealand 2%

Malta 1%

South Africa <1%

Total 100%

Source:!Language!Travel!Magazine!(2010)!

The!British!Council!has!undertaken!research!into!global!markets!for!ELT,!including!those!taking!ELT!in! their!home!country!as!well!as!travelling!for!ELT.!Over!the!next!10!years,!it!estimates!the!increase!in! market!demand!for!ELT!at!over!45!million!students!per!year!comprising!China!22!million,!India!16! million,!Russia!4!million,!Brazil!3!million!and!!2!million.!If!only!5%!of!these!elect!to!travel!for! ELT,!then!an!additional!2.25!million!ELT!students!will!be!looking!for!destinations!around!the!world! with!the!ELT!export!market!tripling!over!this!period.!!

TVET!

A!growing!number!of!firms!and!students!are!electing!to!undertake!vocational!and!technical!training! overseas!to!obtain!better!skills!and!qualifications,!especially!where!these!are!not!available!locally.! This!is!an!extremely!new!segment!and!market!research!has!not!been!undertaken!specifically!on!this! segment.!However,!anecdotally!evidence!shows!that!there!is!potential!(often!combined!with!ELT).!

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The!government!of!Germany,!for!example,!has!been!actively!promoting!its!technical!training!service! providers!through!events!in!its!embassies!throughout!the!world!including!in!US,!India,!UK!and!China.!!

Professional!Qualifications!Training!

The!global!demand!for!professional!qualifications!is!being!fuelled!by!the!acceptance!and!recognition! of!certain!qualifications!through!mutual!recognition!agreements!and.!Professional!qualifications! training!cuts!across!both!higher!education!and!TVET.!For!example,!global!standards!and!norms!in! professions!such!as!accounting!means!that!if!an!accountant!is!qualified!in!ACCA,!it!does!not!matter! where!the!student!studies,!the!qualification!is!recognised!and!accepted!throughout!the!world.!!

Shortage!of!places!and!demand!for!subsequent!entry!by!the!student!to!third!countries!to!work!also! drives!demand!for!professional!qualifications.!For!example,!studying!medical!and!nursing!training! abroad!is!now!an!established!segment!as,!for!example,!for!every!one!place!available!at!medical! schools!in!the!US,!there!are!4!American!students!with!the!required!qualifications!competition!for! each!place.!Added!to!this!shortage!of!training!places,!there!are!global!shortages!of!medical!staff! throughout!the!world!which!is!predicted!to!continue.!A!final!driver!is!third!country!students!studying! for!professional!qualifications!to!of!a!particular!country!(eg!US)!as!a!means!to!access!and!work!in!this! country.!For!example,!In!Antigua,!there!is!a!medical!school!providing!training!in!USMLE1!(entry!level! qualification!to!residency!in!US!hospitals)!with!2,000!students!of!only!Indian!origin.!

THE!TERTIARY!EDUCATION!SECTOR!IN!BARBADOS!

The!tertiary!education!sector!in!Barbados!(direct!income!from!fees!and!subventions)!is!part!of! personal!services!category!valued!at!B$!292!million,!of!which!B$!800,000!is!export!of!personal! services!(other!personal!services!include!private!health,!amongst!other!services).!In!addition,!for! foreign!students,!the!revenues!attributed!to!provision!of!tertiary!education!will!also!be!part!of!the! travel!(expenditure!by!foreign!parties!in!Barbados)!valued!at!B$!1.4!billion.!Data!on!the!tertiary! education!sector!in!Barbados!is!not!readily!available!and!there!is!limited!sector!organisation.! Therefore,!there!are!no!estimates!readily!available!(especially!given!the!level!of!training!in!small! private!facilities!for!TVET).!However,!discussions!with!a!variety!of!institutions,!regulators!and! Ministries!suggest!that!there!are!a!large!number!of!operators!(in!excess!of!100)!and!a!degree!of! exports!already.!In!addition,!there!appears!to!be!large!capacity!available!with!for!example!a! relatively!new!ELT!building!at!BCC!with!capacity!for!1,000!students!and!currently!only!100!students! enrolled.!There!are!also!some!private!ELT!schools!operating!in!Barbados.!

!Based!on!estimates!from!the!larger!education!institutions!(BIMAP,!BCC,!UWI!and!poly)!Barbados! already!attracts!around!4,000!foreign!students!per!year!(mostly!from!other!Caribbean!islands).!Based! on!an!assumption!of!fee!of!US$!2,000!(across!long!and!short!term!courses),!then!fees!from!foreign! students!to!education!institutions!would!amount!to!US$!8!million!or!B$!16!million!(this!is!20!times! the!official!B$!0.8!million!in!the!statistics!for!export!of!all!personal!services!indicating!either!the! estimates!of!foreign!students!is!wrong!or,!more!likely,!the!BoP!statistics!are!wrong!and!some!of! these!fees!are!in!“other!business!services!exports”).!In!addition,!assuming!spend!per!annum!in!the! wider!economy!is!US$!15,000,!and!an!average!stage!of!students!of!6!months,!the!revenues!from! foreign!students!could!amount!to!US$!30!million!(B$60!million)!making!the!total!value!of!the!sector! B$!76!million.!

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POTENTIAL!FOR!TERTIARY!EDUCATION!BUSINESS!IN!BARBADOS!

Barbados’s!economy!will!generate!revenue!not!only!from!tuition!fees!but!also!(and!probably!more! importantly)!from!living!expenses.!Whereas!a!mainstream!tourist!stays!two!weeks,!an!education! tourist!stays!for!one!month!to!one!year!(or!more)!spending!every!day.!!

For!higher!education!and!professional!qualifications!training,!the!annual!average!level!of!spending! and!contribution!to!the!economy!differs!by!exporting!country,!origin!of!the!foreign!student!and! length!of!course.!!In!South!Africa,!the!average!spending!per!graduate!student!is!US$7,500!pa! whereas!in!Antigua,!US!medical!students!average!spending!(including!fees)!amounts!to!US$!25,000.!! Therefore,!in!Higher!Education!and!Professional!Qualifications!Training,!attracting!mainly!nonN Caribbean!students!of!an!additional!2,000!per!annum,!would!generate!US$!50!million!(B$!100! million)!revenues!based!on!annual!spend!on!fees!and!living!expenses!of!US$!25,000!per!student!per! annum.!!

English!Language!Training!(ELT)!and!Technical!and!Vocational!Education!and!Training!(TVE)!generally! comprise!shorter!stays!ranging!from!6N12!weeks.!Again!weekly!spend!and!fees!differ!by!country:! Table!14:!Average!spend!and!Stay!for!Foreign!ELT!Students! Top Host Destinations Spend per week (excl. Average Fee per Week Length of Stay fees) US$ Weeks US$ United Kingdom 594 405 6

Ireland 546 373 6

United States 330 309 13

Canada 518 237 15

Australia 368 234 17

South Africa 390 149 9

Source:!Language!Travel!Magazine!(2009)!

If!Barbados!simply!matched!South!Africa,!then!average!ELT!students!may!generate!up!to!US$!5,000! to!the!economy!(fees!and!spend).!In!is!estimated!that!similar!revenues!(if!not!higher)!could!be! gained!from!TVET.!Therefore!attracting!20,000!TVET!and!ELT!students!per!annum!(averaging!9!weeks! stay!each,!that!is!5,000!full!time!equivalent)!could!generate!an!additional!US$!100!million!(B$!200! million)!to!the!economy.!

Combined,!tertiary!education!services!in!Barbados!could!generate!an!additional!US$!150!million! (B$!300!million)!in!revenue,!adding!4%!to!GDP.!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific! context!of!Barbados.!! The!main!decision!criteria!for!selection!of!foreign!students!travelling!for!education!are:!! • Quality!of!education!! • Costs! • Ease!of!entry!

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• Life!experience!! • Safety/security! The!types!of!constraint!to!be!addressed!are:!

1. Quality!of!education:!!For!all!tertiary!education!services,!the!key!criteria!that!students!assess!a! destination!on!is!the!quality!of!education.!Quality!is!measured!by!students!in!terms!of!portability! of!!the!qualification!(the!qualification!is!internationally!recognized!in!either!the!home!country!of! a!third!country!where!the!student!wants!to!work)!and!pass!rates.!!

2. Costs:!the!cost!of!courses!in!terms!of!fees!and!living!costs!are!important!decision!criteria.!This! determines!the!value!for!money!for!the!same!qualifications!available!elsewhere.!

3. Ease!of!entry:!!how!easy!it!is!for!the!student!to!apply,!the!availability!of!the!course!the!want!and! facilitation!support!in!obtaining!work!permits,!accommodation!and!general!information!and! confidence!on!living!in!an!unfamiliar!country.!!

4. !Life!experience:!increasing!in!a!competitive!workplace,!students!are!looking!to!differentiate! themselves!from!the!competition.!Therefore,!studying!abroad!can!provide!a!new!dimension!and! saleability!in!the!job!market!post!qualification.!There!is!scope!to!link!education!with!these!other! experiences,!adding!value!through!alternative!experiences!(work!experience,!leisure!experience! and!volunteering).!For!ELT,!often!the!lure!of!learning!combined!with!vacation!or! vocational/academic!learning!can!be!key!drivers.!

5. Safety/security:!especially!in!higher!education,!the!safety!and!security!of!both!the!campus!and! country!are!a!final!consideration!–!this!is!both!actual!and!perceived!reputation!of!the!country!in! the!country!of!origin.!Where!the!actual!country!is!not!well!known,!it!could!be!adversely! associated!with!others!(eg!Barbados!with!Jamaica!would!be!a!reputation!to!dispel)!

!

!

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4.5 Construction!Related!Professional!Services!

DEFINITION!

Professional!services!within!the!context!of!this!report!refer!to!construction!related!services!that!are! provided!by!firms,!practises!and!consultancies!that!require!a!professional!membership!and/or! qualifications.!These!include!architecture,!engineering,!project!management,!planning!and!surveying! services.!Other!professional!services!such!as!accounting,!other!engineering,!management! consultancy!and!legal!services!are!part!of!“Business!Support!Services”.!

GLOBAL!MARKET!

The!global!market!for!construction!related!professional!services!is!estimated!at!US$!1.7!trillion! (construction!related!professional!services!are!approximately!20%!of!global!construction!market,! currently!estimated!to!be!US$!8.5!trillion)23.!Professional!services!in!the!EU!account!for!21%!of! construction!costs!so!to!approximate!any!national!market!for!construction!related!services,!it!could! be!reasonable!to!calculate!20%!of!construction!sales.!

Civil!engineering!services!represent! 90%!of!the!global!market,!valued!at! Figure!3:!Global!market!for!Professional! Planning! Services! US$!1,530!billion,!with!surveying! Services! Architectur US$!102!billion,!architecture!US$!51! Surveying!1%! al!Services! billion!and!planning!and!management! Services! 3%! US$!17!billion.!However,!it!reported! 6%! that!in!engineering!services,!only! US$!31!bn!(or!2!per!cent)!is!sourced! offshore.!

Asia!is!the!largest!market!for! Engineering! construction!related!professional! Services! 90%! services,!accounting!for!40%,! followed!by!Europe!accounting!for!a! further!20%.!This!represents!a! significant!change!in!construction!spending!away!from!traditional!development!markets!to! developing!and!emerging!countries).! Table!15:!Share!of!Global!Construction!Services!Industries!(construction!and!professional!services)! Share of Market (2004) Share of Market (2014P) Europe 32% 20% Asia 30% 40% North America 11% 9% Middle East 10% 16% Latin America 9% 7% Africa 8% 8% Source: UNCTAD (2010) and Business Monitor International (2013)

23!Global!Infrastructure!&!Construction!Themes!for!2013!and!Beyond!(2013)!Business!Monitor!International!

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This!trend!reflects!the!changes!in!growth!rates!in!recent!years!where!growth!in!construction!services! in!developing!countries!has!averaged!8%!per!annum!compared!with!only!2%!in!Europe.!This!trend!is! likely!to!continue.!

Public!procurement!is!the!biggest!driver!for!construction!markets,!especially!in!developing!and! emerging!markets!and!on!average,!global!spending!by!governments!on!infrastructure!development! is!estimated!to!average!between!5N7%!of!GDP.24!However,!in!Africa,!for!example,!infrastructure! spending!averages!15%!of!GDP.!

THE!CONSTRUCTION!RELATED!PROFESSIONAL!SERVICES!INDUSTRY!IN!BARBADOS!

Construction!related!professional!services!form!part!of!business!and!finance!services!valued!at! B$!2.3!billion!and!part!of!export!of!other!business!services!valued!at!B$!750!million.!Data!on!the! professional!services!sector!in!Barbados!is!not!readily!available.!Based!on!global!norm!that! construction!related!professional!services!are!valued!at!approximately!20%!of!construction!sector,! this!would!mean!that!in!Barbados,!the!sector!was!valued!at!B$!37million.!However,!this!is!far!higher! than!industry!estimates25!of!B$!21!million!comprising!B$!6!million!in!civil!engineering,!B$!10!million! architecture!and!B$5!million.!This!may!be!a!combination!of!factors!(under!estimation!by!in!particular! engineers!and!use!of!“imported”!professionals).!Exports!of!services!are!reported!at!10%!or!B$!3.7! million!across!the!industry.!

There!are!approximately!30!firms!in!the!engineering!sector,!90%!locally!owned!with!6!large!firms,!10! medium!firms!employing!an!average!of!5!persons!and!the!rest!small!firms!employing!1N2!specialists.! There!are!93!registered!architects!in!Barbados!with!a!few!large!firm!employing!25!persons! (architects!and!draftsman)!but!the!majority!of!firms!are!small!employing,!on!average,!4!people.! Information!on!other!professionals!was!not!available!at!the!time!of!this!research.!

POTENTIAL!FOR!PROFESSIONAL!SERVICES!IN!BARBADOS!

The!vast!majority!of!construction!related!work!and!services!is!awarded!through!public!tenders.!In! Europe!and!US,!these!are!not!open!to!third!countries!unless!that!country!has!signed!the!WTO! General!Procurement!Agreement!(Barbados!is!not!a!member).!However,!under!the!EPA,!Cariforum! professionals!can!in!theory,!access!the!EU!market.!However,!in!practise,!given!the!size!of!firms,!it!is! likely!that!access!would!only!be!available!through!cooperation!with!EU!firms.!

All!international!aid!contracts!are!subject!to!international!open!tendering!procedures!which!would! allow!direct!bidding!for!these!services.!Moreover,!pressure!from!the!international!community!on! governments!throughout!the!world!has!seen!the!gradual!opening!of!all!public!procurement!to! international!competition!and!the!reduction!of!local!price!preferences!(a!usual!barrier!to! participation!for!foreign!firms).!Therefore,!opportunities!in!growth!markets!such!as!Latin!America! and!Africa!could!see!opportunities!for!Barbados!professionals.!

Exporting!of!such!services!depends!upon!networking,!partnerships!and!participating!in!public! procurement!for!both!donor!and!national!government!contracts!in!foreign!markets.!!Given!that!the! majority!of!firms!are!small,!the!average!contract!(or!subNcontract)!for!exports!is!likely!to!be!relatively!

24!UNCTAD!(2007)! 25!Discussions!with!a!engineering,!surveyors!and!architecture!associations!

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small!at!around!US$!250,000!per!annum.!Say!20!contracts!per!year!across!the!different!construction! related!professionals!could!generate!around!US$!5!million!(B$!10!million)!in!revenue.!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific! context!of!Barbados.! The!main!decision!criteria!for!selection!of!construction!related!professional!by!international!clients! (governments,!development!banks!and!private!clients)!are:!! • Qualifications! • Liability!and!professional!indemnity!insurance! • Capacity!and!experience! The!types!of!constraint!to!be!addressed!are:! 1. Qualifications:!Recognised!qualifications!and!memberships!of!internationally!recognised! professional!bodies!are!a!prerequisite!to!participation!in!international!tenders.!Therefore,! affiliation!and!membership!by!national!bodies!of!internationally!recognised!organisations,!plus! mutual!recognition!agreements!are!key!areas!to!explore.! 2. Liability!and!professional!indemnity!insurance:!Professional!insurance!is!often!a!requirement!of! contracts!and!even!if!not,!the!willingness!of!an!insurance!company!to!insure!a!professional! provides!confidence!in!clients!as!to!the!abilities!of!the!firm.! 3. Capacity!and!experience:!firm!size!is!a!major!constraint!to!international!tenders!which!often! require!asset!base!and!turnover!requirements.!In!addition,!on!taking!on!larger!assignments,!a! larger!and!diversified!(including!all!professions)!practice!may!find!it!easier!to!compete! internationally.!Therefore!partnerships!established!across!firms!for!export!only!business!may!be! an!option!to!pool!skills!and!resources!for!export!markets.!!

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4.6 Creative!Industries!

DEFINITION!

The!scope!of!creative!industries!covers!sound!recording!and!distribution!(calypso,!reggae,!soca,! modern!pop!etc),!film!locations,!film!production!(including!animation),!live!performance!(theatre,! dance,!music,!pan!and!carnival),!fashion!(design!of!clothing,!jewellery!and!accessories)!and!artists.!!!!

GLOBAL!MARKET!

The!market!for!the!creative!industries!services!(music,!film!and!live!performance)!is!estimated!at! over!US$!800!billion.!The!vast!majority!of!this!is!comprised!US$!650!billion!for!events,!meetings!and! festivals26!(with!the!UK!alone!estimated!at!US$!36!bn!and!even!emerging!markets!such!as!India! valued!at!US$!450!million!and!rising!by!24%!per!annum).!The!film!industry!is!valued!at!US$!84.2! billion27!and!comprising!distribution!sales,!production!and!editing.!Music!industry!is!valued!at! US$!62.8!billion28!comprising!US$!24.0! billion!(digital!and!retail!sales),! Figure!4:!Global!Market!for!Creamve! publishing!royalties!US$!7.7!billion,! Industries! synchronisation!licensing!fees!(music! for!films!and!compilations)!US$!1.1! billion!and!live!music!performances! Music! Film! 8%! US$!20.0!billion.! 11%!

Increasingly,!live!events!and!festivals! are!being!organised!through!event! management!companies.!Event! management!is!“the!application!of! project!management!to!the!creation! Events!and! and!development!of!festivals,!events! Festvals! 81%! and!conferences.”!!

Event!Management!is!a!multiNbillion! dollar!industry,!growing!rapidly,!with! mega!shows!and!events!hosted! regularly.!Surprisingly,!there!is!no!little!research!conducted!to!assess!the!size!and!growth!of!this! industry.!Increasingly,!event!management!companies!are!joining!international!networks!to!work! together!(similar!to!advertising!agencies).!In!the!UK,!one!online!web!directory!lists!over!700!event! management!companies.!!!

CREATIVE!INDUSTRIES!IN!BARBADOS!

The!creative!industries!sector!cuts!across!the!services!sector!comprising!personal!services,!business! and!finance,!royalties,!leisure!and!retail.!Data!on!the!creative!industry!sector!in!Barbados!is!not!

26!Meetings!and!Events!Market!(2012)!Travel!Management!Institute! 27!Global!Media!and!Entertainment!Outlook!2011N2015!(2010)!PWC! 28!World!Music!and!the!Global!Music!Industry:!Flows,!Corporations!and!Networks!(2012)!Dave!Laing!Institute!of!Popular! Music,!University!of!Liverpool!

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readily!available!but!there!examples!of!artists!selling!music!over!the!internet!and!performing! worldwide.!However,!the!majority!of!this!is!aimed!at!diaspora!events!(both!Barbadian!and!wider! Caribbean!diaspora).!In!addition,!there!are!also!over!200!galleries!in!Barbados!selling!art,!primarily!to! tourists.!!

CREATIVE!INDUSTRIES!POTENTIAL!IN!BARBADOS!

Film!and!music!sales!are!unlikely!to!generate!huge!sales!worldwide!and!profits!and!would!cost!much! in!promotion.!However,!there!would!be!potential!in!exploiting!digital!distribution!more!effectively! and!then!promoting!links!to!downloads.!!Film!and!music!production,!processing!and!editing!is! unlikely!to!become!an!industry!in!itself,!although!individual!studios!may!be!able!to!develop!niche! markets!but!this!will!be!based!on!individuals,!rather!than!a!serious!sector.!

However,!there!is!greater!potential!for!creative!performers!to!export!their!services!to!festivals,!and! events!worldwide!beyond!the!diaspora.!The!UNESCO!project!in!Barbados!has!shown!that!there!is,!for! example,!interest!in!North!America!for!Bajan!performers!who!are!performing!on!the!college!circuit.! However,!this!is!not!commercially!viable!without!UNESCO!grant!finance!so!a!more!professional! approach!to!higher!value!market!segments!is!required.!The!Caribbean!Creative!Cluster!(which!has! 50%!Bajan!performers)!has!been!a!success!in!regional!and!diaspora!events!with!3!full!time!marketing! and!promotional!staff!and!over!100!artists!on!their!books!–!they!act!as!a!export!agent.!Similar! models!could!be!developed!aimed!at!supplying!event!management!companies!worldwide.!If!100! performers!from!Barbados!were!able!to!get!contracts!worth!US$!50,000!per!year,!then!exports! would!rise!by!US$!5!m!(B$!10!million).!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific! context!of!Barbados.! The!main!decision!criteria!for!selection!of!event!management!and!agents!are:!! • Quality!of!performer!

• Access!to!performers! The!types!of!constraint!to!be!addressed!are:! 1. Quality!of!performers.!This!does!not!only!include!the!professionalism!of!performance,!but!also! professionalism!in!business!aspects!(dealing!with!clients,!touting!for!business,!contract! negotiations,!and!reliability/timing).! 2. Access!to!performers:!A!major!issue!for!potential!clients!such!as!agents!and!event!managers!is! knowing!about!the!performers!in!the!first!place.!Therefore,!exposure!to!networks!of!event! management!organisations!is!key!so!when!a!certain!type!of!performer!is!required,!they!can! directly!access!them.!

!

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4.7 Health!and!Wellness!Tourism!

DEFINITION!

The!health!and!wellness!sector!covers!mainstream!medical!tourism!(people!travelling!overseas!for! medical!treatments,!including!elective!surgery,!cosmetic!surgery,!dentistry!etc),!spa!and!wellness! (including!pamper!spa!and!wellness!retreats),!rehabilitation!(including!orthopaedic,!additive! conditions!and!brain!rehabilitation),!palliative!care!(for!onNgoing!conditions)!and!assisted!living! (mainly!geriatric).!

GLOBAL!MARKET!

The!global!health!and!wellness!tourism!sector!is!valued!over!US$!100!billion!comprising!medical! tourism!valued!at!US$!40!billion,!wellness!and!spa!at!US$!44.8!billion,!medical!rehabilitation!ay!US$!4! billion,!palliative!care!less!than!US$!1!billion!and!assisted!living!US$!1!billion.!

Medical!Sector! Figure!5:Health!and!Wellness!Tourism! According!to!estimates!of!Tourism! Assited!palliatve! care! Research!and!Marketing!(TRAM),!the! living! Rehabilitat 5%! 1%! global!value!of!medical!tourism!in! on! 2010!was!over!US$!40!billion.!! 10%!

The!most!dominant!market!segments! Wellness! are:!complex!specialized!surgeries! 6%! Medical! such!as!joint!replacement!(knee/hip);! Tourism! cardiac!surgery;!dental!surgery!and;! 39%! cosmetic!surgeries.!!

Many!developing!countries!are! already!benefiting!from!this!new!type! of!tourism,!especially!in!Asia!where! Singapore!and!Thailand!are! Spa! 39%! estimated!to!receive!around!US$!900! million!per!annum!from!medical! tourism!with!India!and!Malaysia! growing!quickly!with!earnings!of! US$!333!million!and!US$!400!million! respectively.!! Table!16:!Main!Sources!of!Medical!Tourists! Country Number of Medical Tourists Principle Destinations

Germany 500,000 (2007) Thailand, India, , Poland.

US 400,000 (2006) Costa Rica, Mexico, Thailand, Philippines and India

Middle East 350,000 (2007) India, Singapore, Thailand, United Kingdom, Turkey

Canada 230,000 (2007) Cuba, Costa Rica, , India, Israel, Jordan, , Malaysia, Thailand, Belgium, Poland and Singapore

UK 100,000 (2007) India, Hungary, Turkey, Germany, Malaysia, Poland and

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With!current!costs!of!healthcare!in!home!countries!of!most!medical!tourists!growing,!it!is!expected! that!the!number!of!medical!tourists!from!Europe,!North!America!and!the!Middle!East!will!grow! significantly!over!coming!years.!Similarly,!the!number!of!“overseas”!purpose!built!facilities!is!also! expected!to!grow!with!this!demand.!!

In!the!US,!emerging!policies!and!trends!are!fuelling!the!demand!for!medical!tourism:!

! US!Healthcare!reform!act!has!added!millions!of!Americans!to!the!Medicaid!program,! which!does!not!cover!the!true!cost!of!care!

! Increased!demand!for!outpatient!surgery!(75%!of!all!medical!tourism!treatments)!

! Increased!access!to!low!cost!travel!

! Shortage!of!physicians!and!primary!care!workers!in!the!US!

! Millions!of!baby!boomers!will!be!turning!65!in!the!near!future,!qualifying!for!Medicare!!

! Increase!in!numbers!of!Americans!with!chronic!diseases!

! Governments!of!host!countries!setting!up!initiatives!such!as!fast!track!visa!and!tax! breaks!

! Medical!!at!3.6%!outstrips!retail!inflation!of!2.1%!in!the!USA!!

The!key!to!attracting!foreign,!and!especially!US,!medical!tourists!is!JCI!accreditation.!There!are! currently!more!than!255!Joint!CommissionNaccredited!hospitals!outside!the!USA,!this!is!the!same! accreditation!that!more!than!4,800!hospitals!in!the!US!receive!and!the!same!accreditation!that! Medicare!recognises.!According!to!JCI!surveys,!patient!experience!and!satisfaction!at!JCI!hospitals! abroad!is!generally!more!favourable!than!the!USA;!surgical!complication!rates!!compare!favourably! and;!cost!savings!on!most!surgical!procedures!can!exceed!50N80%!of!the!US!cost.!

With!these!factors!in!mind,!US!corporations!and!medical!insurers!are!increasingly!funding!medical! tourism.!Some!medical!insurance!companies!have!explicitly!added!international!travel!options!as! “extras”!for!any!nonNcovered!services!and!preNexisting!conditions.!!

Spas!and!Wellness!

In!2007,!the!global!market!for!spas!was!valued!at!US!$46.8!billion29!from!an!estimated!71,762!spas! operating!around!the!world.!The!global!wellness!tourism!market,!comprises!1,485!destination! resorts!and!is!estimated!to!be!valued!at!US$!6.2!billion!and!employs!around!112,000!persons.!These! destination!spas!account!for!13!per!cent!of!revenues!from!2!per!cent!of!facilities!indicating!this!is,! with!medical!spas,!a!high!value!segment.!

Latin!AmericaNCaribbean!is!the!fourth!largest!spa!region!in!the!world,!but!its!industry!is!significantly! smaller!than!those!of!the!top!three!regions!(Europe,!North!America,!and!AsiaNPacific).!It!had!an! estimated!5,435!spas,!with!revenues!of!$2.5!billion!and!employment!of!82,694!persons!in!2007.!

Health!and!wellness!tourism!is!now!an!international!trend!set!by!the!health!conscious!consumers! seeking!to!enhance!their!well!being!through!their!travel!experiences!(Still!Pampering?!Opportunities! and!Challenges!Facing!the!Global!Spa!and!Beauty!Industry!Euromonitor!International!Ltd!Date:!Apr,!

29!Global!Spa!Summit!2010!(SRI!International)!

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2010).!Wellness!tourism!means!travelling!across!borders!for!spa!and!wellness!treatments.!The!focus! of!wellness!tourism!is!on!prevention!and!helping!people!facilitate!lifestyle!changes.!The! opportunities!for!development!are!enormous!as!wellness!tourists!seek!out!“mindful”!and!not! “mindless”!travel!opportunities,!with!a!higher!benefit!to!themselves,!their!bodies!and!their! environment.!

This!type!of!consumer!seeks!to!look!and!feel!better,!to!lose!weight,!to!slow!the!effects!of!aging,!to! relieve!pain!or!discomfort,!to!manage!stress,!or!to!partake!in!the!use!of!natural!supplements!like! vitamins!and!minerals!to!improve!their!health.!A!distinction!is!made!between!the!health!and!the! wellness!aspects.!Health!tourism!refers!to!those!clients!with!medical!conditions!who!would!travel!to! experience!healing!therapies.!A!person!who!seeks!a!wellness!travel!experience,!is!generally!healthy! to!start!with,!and!seeks!therapies!to!maintain!his!or!her!well!being.!!

The!top!trends!in!wellness!tourism!are:!

o Prevention,!rather!than!pampering!!

o Spa!Goes!are!seeking!“!Tradition!and!Authenticity”,!for!example!the!Turkish!Haman!

o Integrated!human!body!vision!with!holistic!treatments!–!“Pure!Spa”!concept!in! decline!

o “!SilverNSpaNing”!78!million!baby!boomers!set!to!hit!60!

o Sanctuary!–!from!our!ever!increasing!stressful!technological!world!

o International!Spa!Tours!will!replace!Spa!treatments!N!Guests!wish!to!enjoy!a! “package”!of!treatments!rather!than!“!a!massage”!

Rehabilitation!!

Rehabilitation!centres!are!driven!by!costs!and!specialisms.!For!some!centres,!people!travel!for! cheaper!rehabilitation!after,!for!example!spinal!injury!(learning!to!walk)!or!strokes,!whilst!others! attract!foreign!medical!tourists!due!to!some!unique!specialism!or!rehabilitation!processes!that!are! not!readily!available!in!their!countries,!these!could!include!sports!medicine!or!drug!rehabilitation! (Eric!Clapton’s!Crossroads!Centre!in!Antigua).!

With!the!growing!acceptance!of!medical!tourism,!people!who!need!specialist!rehabilitation! treatment!after!an!illness!or!surgery!are!considering!treatment!abroad!as!a!low!cost!option.! Rehabilitation!is!the!term!used!to!describe!the!process!of!physically!restoring!to!health!sick,!injured! or!disabled!people.!Various!types!of!treatment!are!available,!including:!Orthopaedic!rehabilitation,! Drug!and!Alcohol!rehabilitation!and!Brain!Injury!rehabilitation.!

Assisted!living/geriatric!care!

There!is!globally!a!market!for!providing!assisted!living/nursing!and!geriatric!care!for!the!elderly! which!is!international.!The!motivation!for!obtaining!such!services!outside!your!country!of!origin!is! climate,!cost!and!returning!to!roots!(Diaspora).!The!services!provided!can!range!from!retirement! villages!to!full!nursing!care!facilities.!!

Investors!throughout!the!world!are!increasingly!taking!stock!of!this!rising!demand!and!are!making! serious!investments!in!the!retirement!care!industry.!The!US!market!is!the!largest!globally!and!is!

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constantly!expanding.!The!US!Census!Bureau!estimates!that!the!national!nursing!and!residential!care! industry!is!worth!over!US$!26!billion!a!year.!As!an!indication!of!the!industry's!growth!potential,!in! 2004!the!National!Investment!centre!also!estimated!that!a!total!of!33,000!professionally!managed! properties!existed!in!the!United!States,!with!a!capacity!to!hold!over!3.6!million!seniors,!a!figure! which!represents!less!than!5%!of!the!potential!US!target!market.!A!large!proportion!of!the!major! retirement!care!communities!are!geographically!concentrated!around!the!Southern!United!States! and!the!Caribbean.!This!is!largely!due!to!the!affluence!of!the!US!population!of!retirees!as!well!as!the! yearNround!favourable!climate!that!already!draws!people!to!the!region.!

A!growing!number!of!Americans!aged!50+!are!now!actively!considering!relocating!outside!the!USA!to! retire.!Due!to!its!close!proximity!to!the!United!States!Mexico!remains!the!number!one!destination! for!Americans!retiring!abroad.!It!is!estimated!that!over!one!million!Americans!are!living!in!Mexico! but!there!are!no!exact!statistics!for!retirees.!The!recent!growth!of!gated!retirement!communities!in! Mexico,!in!the!costal!area’s!targeting!US!and!Canadian!second!home!buyers!and!retirees!indicated! that!this!is!a!growth!market.!It!is!estimated!that!between!200N300,000!Americans!reside!in!these! coastal!areas.!With!an!increase!of!retiree’s!there!becomes!an!increase!in!the!need!for!reliable,!costN effective!healthcare.!Already!the!majority!of!Americans!residing!in!Mexico!obtain!some!healthcare! insurance!in!Mexico!as!they!are!not!covered!by!US!health!insurance!when!living!abroad.!!

Palliative!Care!

A!growing!area!of!medical!tourism!is!palliative!care!which!includes!management!of!adverse!health! conditions!such!as!dialysis,!cancer!management!and!care.!There!are!few!statistics!available!for!the! global!export!services!trade!in!this!area!but!the!prime!motivation!is!usually!cost!savings!–!providing! similar!or!better!service!for!lower!costs.!

THE!HEALTH!AND!WELLNESS!TOURISM!IN!BARBADOS!

Health!and!wellness!tourism!in!Barbados!cuts!across!both!personal!services!and!mainstream! tourism.!However,!specific!breakdowns!are!not!available.!Little!is!known!about!this!sector!in! Barbados!but!anecdotal!evidence!shows!that!there!is!some!activity!across!the!wellness,!spa,!medical! and!assisted!living!subNsectors.!The!majority!of!medical!healthcare!in!Barbados!is!public!so!that!any! growth!in!this!sector!is!likely!to!come!from!foreign!investments.!With!regards!wellness,!there!are!a! range!of!wellness!providers!in!Barbados!including!reiki,!reflexology,!yoga,!aryeveda,!herbal!and!other! practitioners.!!

POTENTIAL!FOR!HEALTH!AND!WELLNESS!TOURISM!IN!BARBADOS!

Medical!tourism!development!is!likely!to!come!from!foreign!investments!rather!than!local!facilities! (as!the!majority!of!the!domestic!sector!is!public!and!the!private!facilities!are!limited).!!According!to! Joint!Commission!International!(the!US!medical!facility!accreditation!body)!there!is!one!institution! accredited!in!Barbados!(a!foreign!owned!fertility!clinic).!There!is!also!a!plan!for!a!foreign!investment! to!build!a!US$!100!million!hospital!for!medical!tourism!by!2014.!!

Such!facilities!could!attract!a!1,000!foreign!patients!who,!with!a!companion!stay!on!average!for!3! weeks!and!spend!US$400!per!day.!!Combined!with!an!average!treatment!cost!of!US$5,000,!this!subN sector!could!contribute!US$!20!million!(B$!40!million)!to!the!economy.!

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There!is!potential!to!develop!wellness!and!retreat!tourism!in!Barbados,!especially!given!the!higher! spend!rates.!For!example,!if!5,000!wellness!tourists!were!brought!in!for!14!days!at!US$1,000!total! spend!per!day,!then!the!sector!would!be!worth!US$!5!million!(B$!10!million).!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific! context!of!Barbados.!

The!main!decision!criteria!for!selection!of!health!and!wellness!destinations!by!international!clients! are:!! • Accreditation!and!recognition! • Insurance! • Reputation!! The!types!of!constraint!to!be!addressed!are:! 1. Accreditation!and!recognition.!In!terms!of!medical!tourism,!international!accreditation!is!a! must.!For!US,!this!is!JCI!accreditation!and!for!Europe,!Middle!East!and!Asia,!either!JCI!or!Trent! International.!For!alternative!therapists!in!the!wellness!sector,!national!standards!and/or! industry!self!regulation/codes!of!practise!are!important!to!provide!quality!guarantees!to!clients.! 2. Insurance:!Liability!insurance!for!both!medical!and!wellness!subNsectors!are!important,! especially!when!dealing!with!higher!end!clients.! 3. Reputation:!This!is!again,!is!key!to!both!subNsectors.!For!medical,!experience!of!doctors!and! success!rates!play!an!important!role!in!decision!making.!For!wellness,!a!well!put!together!“story”! of!the!wellness!philosophy!and!difference!in!Barbados!is!key!–!this!concept!is!essentially!what!is! being!sold.!!

!

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4.8 Business!Support!Services!

DEFINITION!

Business!support!services!(sometimes!also!referred!to!as!business!development!services)!are!services!that! support!and!improve!competitiveness!within!the!value!chains!in!Barbados!–!can!be!services!to!producers! for!domestic!and!international!markets,!for!product!manufactures,!agricultural!producers!as!well!as! industry.!

THE!ROLE!OF!SERVICES!IN!COMPETITIVENESS!

The!key!constraints!and!challenges!facing!the!competitive!production!in!Barbados!(agriculture,! manufacturing!and!industry)!are!scale!and!vulnerability.!As!a!result!the!approach!to!supporting!the!business! sector!in!Barbados!must!necessarily!focus!on!higher!value!niche!products!and!services!for!both!the! domestic!(through!supply!to!major!value!chain,!tourism)!and!export!market.!To!promote!the!development! of!a!more!competitive!and!higher!value!production!base,!a!strategy!of!improving!provision!of!business! development!and!support!services!can!help.!

Higher!value!production!requires!higher!quality!of!manufacturing!and!service!delivery.!It!has!been!shown! consistently!throughout!the!world!that!higher!quality!comes!from!quality!and!sustained!provision!of! business!development!and!support!services.!For!manufacturing,!the!US!Government30!has!recently!linked! its!sector’s!resilience!and!competitiveness!through!the!current!global!economic!crisis!to!US!manufacturers! spending!on!business!services.!US!firms!spend!30%!of!value!added!production!on!business!services.!This! compares!to!only!23%!in!the!UK!and!Italy,!18%!in!Spain!and!Mexico!and!13%!in!Indonesia.!Therefore,!there! is!a!strong!case!in!increasing!the!availability!of!business!services!to!manufacturers,!agricultural!producers! and!industry!in!Barbados!to!improve!their!competitiveness!and!help!them!grow.!!In!parallel,!this!will!create! amore!vibrant!domestic!market!that!will!strengthen!local!suppliers,!making!them!more!capable!to!export! these!services,!both!regionally!and!internationally.! The! scope! of! business! support! services! required! depends! upon! the! individual! value! chains! involved,! but! generically!business!support!services!can!include:! • Market!information!services:!Access!to!market!data,!including!for!international!trade;!targeted!market! research;!customer!segmentation;!customer!feedback!surveys.! • Product! development! and! access! to! technology! services:! Product! design! and! adaptation;! technology! information;! technology! transfer! and! commercialisation;! equipment! upgrade;! relevant! technical! skill! development.! • Procurement! and! sourcing:! Information! on! input! supply! features,! pricing! and! sources;! facilitation! of! input!supplier!–!entrepreneur!linkages;!facilitation!of!bulk!buying!(joint!procurement)!groups.! • Training,! technical! assistance! and! advisory! (strategic! and! operational! aspects! of! business):! Business! incubation! for! startNups;! feasibility! studies! and! business! plans;! business! counselling;! twinning! and! mentoring!of!existing!MSMEs;!small!business!management!training!(including!business!and!production! process!management);!technical!training!related!to!production!or!service!delivery;!legal!and!taxation! advice;!accountancy,!bookNkeeping!and!inventory!management.! • Distribution,!transport!and!communicationNrelated! services:! Storage! and! warehousing;! transport! and! delivery;!ICT!services.!

30!U.S.!Manufacturing!in!International!Perspective!(2013)!Congressional!Research!Service!

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• Marketing! services:! Trade! fairs,! product! exhibitions! and! buyerNseller! meetings! (businessNtoNbusiness! matchmaking);! advertising;! packaging! and! labelling! design;! facilitation! of! subcontracting! and! outsourcing.! • Facilitation!of!access!to!finance:!Linking!businesses!to!banks,!microNfinance!institutions!and!other!nonN banking! financial! institutions! serving! SMEs! (leasing! and! factoring! companies,! export! credit! agencies,! etc.);! providing! information! on! credit! schemes! and! conditions;! assist! in! business! planning! for! loan! applications.! • Policy!advocacy!and!industry!representation:!Industry!platform,!representation!of!industry!interests!in! publicNprivate!dialogue.!!

The!potential!impact!on!productivity!of!business!support!services!can!be!extremely!significant!for!firms.! Even!mandatory!services!such!as!auditing,!if!undertaken!effectively!and!efficiently!can!save!business!in! terms!of!tax!optimisation!and!investment!planning.!Again,!the!specific!impacts!and!effects!of!business! services!on!productivity!and!cost!savings!depend!upon!the!industry!but!a!few!illustrations!are!provided! below:! ! Energy! auditors! and! consultants! could! save! energy! costs! of! 30N35%! 31! In! sectors! where! energy!costs!are!high!(some!sectors!energy!costs!are!20N40%!of!total!costs)!!this!could!have! a!big!impact!on!competitiveness.! ! Total! quality! management! (TQM)! and! quality! assurance! 5N30%32! of! total! costs! through! adoption!of,!for!example!ISO!9000.!! ! Technical! training! to! farmers! could! increase! productivity! by! 187%33! if! continuous! over! 2! years.! ! Sales!and!marketing!Training!can!increase!sales!by!80%34! ! Technology!engineering!and!consulting!could!increase!productivity!by!over!100%35! ! ICT! services! to! manufacturers! have! a! positive! return! on! investment! in! terms! of! revenue! increases!of!5N20%36! ! Procurement!and!sourcing!consultancies!typically!save!15N25%!of!procurement!costs!which! can!be!30N60%!of!a!firms!total!costs.37!

THE!BUSINESS!SUPPORT!SECTOR!IN!BARBADOS!

The!nonNfinancial!business!support!services!are!part!of!the!business!and!finance!services!group!valued!at! B$!2.3!billion.!Data!on!the!sector!in!Barbados!is!not!readily!available.!To!understand!the!market!potential!in! Barbados,!an!audit!of!agriculture,!manufacturing!and!industrial!firms!is!required!to!list!the!services!they! currently!procuring!(including!imported!services!from!foreign!providers)!and!services!they!would!like!to! procure!(but!cannot!due!to!lack!of!availability!or!high!costs).!Then!through!benchmarking!industries! examine!the!services!that!could!improve!business!competitiveness!throughout!the!value!chain!(although! firms!may!not!know!they!need!these!services.!Finally,!an!audit!of!all!business!support!providers!in! Barbados,!their!services,!qualifications!and!capacity!must!be!undertaken!to!better!understand!and!match! supply!with!demand!for!business!support!services.!

31!Global!Energy!Efficiency!Benchmarking!!(2010)!UNIDO! 32!Impact!of!Quality!Management!in!the!US!(2008)!Deloitte's! 33 Davies,!K.!et.!al.!(2011).!Impact!of!Farmer!Field!Schools!on!Agricultural!Productivity!and!Poverty!in!East!Africa.!World! Development!Volume!40,!Issue!2,!September!2011.! 34 Bruhn,Miriam,!Dean!S.!Karlan,!and!Antoinette!Schoar.!(2012)!The!Impact!ofConsulting!Services!on!Small!and!Medium! Enterprises:!Evidence!from!a!Randomized!Trial!in!Mexico.! 35 The!World!Bank.!KickStart!Irrigation!Pumps:!Adapting!Technology!to!Development!Challenges.! 36!ICT!solutions!and!labor!productivity:!evidence!from!firmlevel!data!(2007)!JuhaNMiikka!Nurmilaakso! 37!A!fresh!look!at!procurement!(2011)!By!Clinton!Anderson,!David!Fleisch,!Greg!Gerstenhaber!and!Sam!Thakarar!

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BUSINESS!SUPPORT!POTENTIAL!IN!BARBADOS!

An!increase!in!the!level!of!business!support!services!of!an!additional!5%!of!value!added!would!increase!the! national!market!for!business!support!services!by!B$!307! Table!17:!Increase!in!Business!Support!Services!as!a!percentage!value!added! 38 ! Value!added ! Increase!in! Business! (B$!m)! Support! Services!

Agriculture! 184.0! 9.2!

Manufacturing! 357.4! 17.9!

Industry! 1,425.6! 71.3!

TOTAL! ! 98.4!

CHALLENGES!TO!BE!ADDRESSED!

The!challenges!for!sector!development!need!to!be!analysed!in!more!detail!within!the!specific!context!of! Barbados.! The!main!constraints!to!the!development!of!business!support!services!are:!! • Understanding!the!Value!of!services!and!willingness!to!pay! • Quality!of!services!needed!

• Availability/range!of!services!available!(market!size)! The!types!of!constraint!to!be!addressed!are:!

1. Understanding!the!value!of!services!and!willingness!to!pay:!One!of!the!biggest!constraints!to!the! development!of!the!business!support!services!sector!is!the!appreciation!by!the!private!sector!of!the! value,!importance!and!benefit!of!business!support!services.!Often!business,!especially!small!business,! with!limited!resources,!will!elect!not!to!pay!for!business!services,!either!doing!without!or!trying! undertake!the!service!delivery!inNhouse.!Even!when!they!do!procure!external!services,!they!simply!look! for!lowest!cost,!not!best!quality!(often!a!business!will!only!procure!services!it!has!too!by!law,!eg!legal! and!audit!services).!This!leads!to!ineffective!delivery!of!these!services!which!does!not!benefit!the! business.!Greater!understanding!of!the!benefits!of!the!business!services!amongst!the!private!sector!is! needed,!as!well!as!incentives!to!encourage!procurement!of!services.!Another!important!factor!in! willingness!to!pay!is!the!provision!by!public!providers!of!certain!business!support!services!(such!as! export!promotion!or!agricultural!extension!services).!In!general,!public!providers!are!less!efficient!than! the!private!sector!but!this!can!create!a!culture!of!“nonNpayment”!for!business!services!by!businesses! who!simply!expect!not!to!pay.!

2. Quality!of!services!needed:!The!willingness!to!pay!is!also!linked!to!the!quality!of!the!business!support! services!available!and!price!of!those!services!(value!for!money!so!services!have!a!“return”!on! investment).!The!skills,!experience!and!qualification!of!business!services!providers!will!affect!the! benefits!to!be!derived!from!these!services.!Therefore,!in!order!to!make!the!expected!gains!from! provision!of!business!services!there!needs!to!be!“quality”!providers!available!in!the!market.!

38!Barbados!Metadata!(2013)!World!Bank!

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3. Availability/range!of!services!available!(market!size):!Given!the!relative!small!market!and!number!of! businesses!in!Barbados,!there!may!not!be!sufficient!demand!to!sustain!a!full!range!of!competitive! business!support!services!subNsectors.!Therefore,!the!range!of!business!support!services!available!may! be!limited.!Even!where!the!market!demand!!is!sufficient!to!sustain!a!market,!the!market!may!be!so! small!that!monopoly!positions!may!lead!to!higher!prices!and!lower!quality!of!services.!

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5 Stakeholder*Engagement! This!chapter!briefly!presents!the!activities!undertaken!during!this!consultancy!assignment!and!specifically! the! engagement! throughout! the! process! with! the! various! stakeholders.! Most! important! are! the! inputs! during!the!validation!process!which!shows!not!only!the!consultations,!but!also!a!response!that!is!addressed! within!the!final!strategy!itself.!

5.1 Inception!Phase!

A!mission!to!Barbados!was!undertaken!in!May!2013!to!better!understand!the!capacities!structures!and! scope!existing!services!sectors!and!to!inform!the!planning!for!subsequent!missions!to!maximise!the!benefits! of!those!visits!in!terms!of!research!and!capacity!building!as!necessary.!Meetings!with!over!75!persons!were! undertaken!across!a!broad!range!of!stakeholders!including!BSCI,!government!departments,!private!sector! associations!and!government!support!agencies!and!regulators.!

Discussions!were!also!held!with!the!Project!Steering!Committee!to!foster!ownership!and!buyNin!and!also! promote!greater!understanding!of!the!institutional!requirements!for!effective!implementation,!cooperation! and!coordination!of!the!strategy!(including!resources!available!and!sources!of!each!institution,!government! and!private!sector).!

A!list!of!those!met!at!this!phase!and!during!subsequent!missions!is!provided!in!the!annex!to!this!report.!

FEEDBACK!FROM!THE!STEERING!COMMITTEE!

An!open!discussion!on!the!key!findings!of!the!scoping!mission!was!undertaken!with!the!Project!Steering! Group.!A!list!of!comments!and!guidance!provided!during!the!meeting!is!summarised!below:!

! National! ownership! is! important! for! implementation! and! working! alongside! and! in! close! consultation! with! stakeholders! throughout! the! development! of! the! strategy! is! key.! A! seminar/workshop!in!July!with!the!broader!stakeholder!group!could!be!beneficial.! ! It!is!also!important!that!each!institution!that!will!be!tasked!with!implementation!also!feels! ownership!and!has!the!mandate!from!line!Ministers.! ! Political!buyNin!is!also!important!and!it!was!agreed!that!a!paper!be!submitted!to!the!Cabinet! SubNCommittee!on!Economic!Development.! ! Leadership!is!often!lacking!so!the!steering!committee!members!must!act!as!a!champions!of! the!services!sector!and!be!prepared!to!undertake!actions.! ! The! strategy! should! identify! niches,! not! just! replicate! strategies! and! focus! of! other! countries,!especially!those!in!the!region!–!it!must!be!specific!to!Barbados’s!capabilities.! ! Monitoring!and!evaluation!framework!needs!to!be!established!to!show!the!benefits.! ! Constraints!in!the!services!sector!in!Barbados!include!lack!of!standards,!access!to!finance! and!lack!of!demonstrable!success!stories.!

5.2 1st!Stakeholder!Workshop!

Following!the!inception!phase,!detailed!market!research!on!the!broad!nonNtourism!services!subNsectors! present!in!Barbados!was!undertaken!to!examine!the!potential!for!each!of!these!subNsectors!as!well!as! cumulatively!for!the!services!sector!as!a!whole.!This!assessment!formed!the!Progress!Report.!These!findings! were!presented!and!discussed!at!two!stakeholder!workshops!in!July!2013.!

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The!first!stakeholder!group!comprised!associations!whilst!the!second!stakeholder!group!comprised!private! and!public!sector!organisations!on!the!Project!Steering!Group.!!

FEEDBACK!FROM!THE!STEERING!GROUP!AND!ASSOCIATIONS!

The!steering!group,!during!the!workshop!made!the!following!points:!

! The!steering!group!should!prepare!a!paper!for!Cabinet!based!on!the!Inception!and!Progress!Report;! ! For!the!implementation!part!of!the!strategy,!there!needs!to!be!a!clear!distinction!between!the!roles! of!champions!and!the!“doers”!who!will!actually!implement!the!strategy;! ! There!needs!to!be!a!clear!connection!between!the!National!Services!Strategy!and!the!National! development!policy!in!the!form!of!the!Medium!Term!Growth!Strategy!which!is!being!prepared;! ! It!is!important!to!create!the!ecoNsystem!(enabling!environment)!for!services!to!flourish!–!this! includes!both!business!and!investment!climate.! ! The!associations!during!the!workshop,!made!the!following!points:! ! Education!reform!is!important!and!should!be!made!part!of!the!national!agenda! ! Barbados!as!a!services!destination!is!constrained!by!attitude!nationally!from!policy!makers!and! business! ! Customer!services!is!a!real!challenge!in!Barbados!and!has!to!be!placed!at!the!forefront!of!education! and!the!national!curricula! ! Government!services!are!poor!and!adversely!affects!business!performance!–!government!and! officials!need!to!be!accountable! ! Business!is!risk!adverse!so!business!incubators!run!by!government!are!needed! !

5.3 Validation!Workshop!

Following!the!second!mission!to!Barbados!and!feedback!on!the!inception!and!progress!reports!from! stakeholders.!A!draft!strategy!was!prepared!and!distributed.!Stakeholder!consultations!regarding!the!draft! National!Services!Strategy!were!held!during!October!2013.!These!involved!working!sessions!to!assess!the! options,!make!recommendations!and!changes!as!necessary!to!the!strategies.!!These!were!further!discussed! and!validated!at!a!plenary!discussion.!The!following!details!the!consultants’!response!and!highlights! changes!made!to!the!strategy!resulting!from!this!workshop.!

RESPONSES!TO!STAKEHOLDER!WORKSHOP!

Strategy!1.1!Valorise!services!throughout!the!economy!

Additional!suggestions!as!to!strategies!were!presented!by!stakeholders:!

! Data!sharing!amongst!statistical!agencies!–!this!is!addressed!specifically!in!strategy!1.1(A)!below! and!will!be!more!a!task!for!the!workgroup!than!part!of!the!main!text!of!the!strategy.! ! To!establish!a!service!specific!research!tool.!The!need!for!consistent!data!is!eluded!to!in!strategy! 1.1A(1).!Some!guidelines!have!already!been!provided!to!BCSI!and!these!could!be!developed!by!the! working!group!assigned!for!strategy!1.1A.! ! Sensitisation!of!“gatekeepers”!of!data!should!be!undertaken!to!promote!sharing!and!cooperation.! Again!this!is!more!task!specific!than!strategic!and!should!be!dealt!with!at!a!working!group!level! during!implementation.!

STRATEGY!1.1!A!IMPROVE!RESEARCH!AND!ANALYSIS!OF!SERVICES!

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A!number!of!additional!actions!(4)!were!suggested!by!stakeholders.!These!principally!looked!at!the! “culture’!of!data!collection!in!Barbados!namely:!sensitisation!of!the!public!on!the!need!to!provide!data! developing!a!legal!and!regulatory!regime!for!data!collection!and!data!protection!(with!watchdog!on!use!of! data)!and!cooperation!amongst!statistical!agencies.!Whilst!these!activities!would!indeed!improve!the! services!data!quality,!they!are!not!specifically!issues!for!services!data!collection!alone.!Therefore,!it!is! believed!that!they!do!not!belong!in!the!services!strategy!itself.!However,!during!implementation,!activities! such!as!encouraging!inter!agency!cooperation!may!be!specific!tasks!that!are!defined!by!the!relevant! workgroup.!

A!related!suggestion!is!the!sensitisation!of!the!public!on!the!need!for!statistics.!This!again!is!non!specific!to! services!but!a!more!targeted!action!to!sensitise!service!providers!would!be!useful!in!this!regard.!Therefore,! a!further!Action!under!Strategy!1.1A!has!been!added!to!the!strategy!is!response!to!the!issue!raised!by! stakeholders!1.1!A!(3).!

STRATEGY!1.1!B!RAISE!THE!PROFILE!OF!SERVICES!NATIONALLY!

Stakeholders!suggested!that!the!to!inspire!and!change!services!culture!in!Barbados,!activities!should!also!be! targeted!at!primary!and!secondary!schools.!Therefore,!this!was!added!to!the!strategy!1.1B(1).!

Similarly,!as!well!as!including!services!delivery!and!export!as!part!of!business!and!finance!courses,! stakeholders!suggested!that!business!and!finance!be!included!in!services!related!course!(for!example!a! compulsory!business!module!for!all!ICT!students).!This!was!therefore!added!to!strategy!1.1B(2).!

A!further!suggestion!was!to!involve!trade!unions.!This!is!not!rejected!as!an!idea,!and!in!fact!should!be! encouraged.!However,!the!definition!and!inclusion!of!lists!of!stakeholders!are!not!to!be!included!in!the! strategy,!but!form!part!of!the!implementation!structure!and!workplan.!

STRATEGY!1.1C!REDRESS!THE!FREE!SERVICES!CULTURE!

Stakeholders!suggested!that!in!addressing!the!“free”!culture!with!presumption!of!“rights”!should!be! extended!to!schools!to!show!that!everything!that!is!consumed!has!a!cost!(books,!teaching!etc).!This!would! form!part!of!strategy!1.1C(1)!‘Systematic!costing!of!services!throughout!the!country’!and!would!also!include! prescriptions,!medical!and!other!public!goods.!Therefore,!it!was!felt!that!specific!mention!of!education! services!here!was!not!essential.!

Strategy!1.2!Create!a!Competitive!Services!Environment!

Additional!suggestions!as!to!strategies!were!presented!by!stakeholders:!

! Stakeholders!emphasised!the!need!for!human!resource!development!to!ensure!the!quality!of! outsourced!services.!Moreover,!the!skills!required!should!be!delivered!and!certified!to!international! standards.!This!is!indeed!important!and!the!quality!and!skills!of!services!persons!are!addressed! elsewhere!in!the!strategy!in!strategy!1.4A!and!2.1.!A!note!linking!these!has!been!added!to!Action! 1.2C(1).!

STRATEGY!1.2A!OPENING!OF!ALL!SERVICES!MARKETS!

The!break!out!group!wanted!to!amend!this!strategy!with!the!caveat!that!there!should!be!phased!or!gradual! opening.!It!also!recognised!that!the!majority!of!sectors!are!already!open,!so!that!the!remaining!ones!should! only!be!liberalisation!when!legal,!regulatory!and!human!resource!capacities!were!in!place.!However,!during!

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the!plenary!session,!there!was!a!clear!argument!and!even!split!between!stakeholders!that!believed!that! openness!of!all!sectors!was!essential!and!that!this!should!happen!soon.!In!light!of!this,!the!strategy!has! been!maintained.!However!caveats!under!this!action!to!study!and!put!in!place!appropriate!legal!framework! and!improved!competitiveness!of!the!sector!would!be!undertaken.!

STRATEGY!1.2B!ENCOURAGING!THE!DEVELOPMENT!OF!SIZABLE!FIRMS!

Whilst!stakeholders!agreed!with!the!actions,!they!suggested!that!the!title!of!the!strategy!be!amended!to!be! the!‘development!of!export!ready!firms”!was!a!better!articulation!of!the!issue!being!addressed.!Small!firms! are!generally!unable!to!address!the!needs!of!international!clients,!this!is!the!motivation!for!growth!and! therefore,!the!title!of!the!strategy!has!been!changed!accordingly.!

STRATEGY!1.2C!OUTSOURCING!SERVICES!

Stakeholders!suggested!that!the!proposed!training!should!be!sector!specific.!Therefore,!Action!1.2C(1)!has! been!amended!to!emphasise!this!need.!

Strategy!1.3!Ensure!Services!are!Delivered!as!a!Business!

Additional!suggestions!as!to!strategies!were!presented!by!stakeholders:!

! Stakeholders!also!suggested!that!public!education!should!start!at!an!early!age!at!schools.!This!is! already!addressed!in!strategy!1.1B.! ! There!was!also!a!suggestion!to!provide!awareness!and!education!of!international!standards! amongst!services!providers.!This!is!already!addressed!in!strategy!2.1.! !

STRATEGY!1.3A!PROVIDING!BUSINESS!SUPPORT!TO!SMALL!SERVICE!PROVIDERS!

Stakeholders!stated!that!the!provision!of!services!within!incubators!is!important!but!critical!is!the!quality!of! support!services!delivered!to!services!providers.!Therefore,!the!incubator!programme!(strategy!1.3A(1))!has! now!emphasised!the!need!to!incorporate!“quality!support”!into!programme!design.!In!addition,!brand! management!services!is!considered!important!by!stakeholders!so!this!is!added!to!the!list!of!indicative! services!to!be!provided.!!

In!terms!of!business!support!clubs,!stakeholders!considered!that!it!would!be!important!for!these!to!have! clear!outputs,!objectives!and!clearly!defined!roles.!This!is!important!but!would!be!part!of!the!tasks!to!be! defined!during!elaboration!of!workplans!within!each!working!group.!

Stakeholders!also!suggested!that!case!studies!show!relevant!case!studies,!and!also!show!service!providers! that!have!transitioned!from!poor!to!good!quality!provision.!

STRATEGY!1.3B!IMPROVING!BUSINESS!AND!SERVICES!MARKETING!SKILLS!

Stakeholders!suggested!that!business!skills!training!be!flexible!in!hours!and!delivery!to!take!account!of! existing!business!persons.!This!is!more!an!implementation!issue!but!to!emphasise!this!need,!strategy! 1.3B(1)!now!states!that!full!use!of!after!business!hours!and!online!modules!will!be!used.!

In!terms!of!including!business!in!education,!stakeholders!emphasised!the!need!to!include!extra!curricula! education!such!as!investment!clubs,!junior!achievers!and!other!“competitions.”!This!has!been!added!to! strategy!1.3B(2).!

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Strategy!1.4!Provide!a!Pool!of!Appropriate!Human!Resources!for!High!Value!Services!

Additional!suggestions!as!to!strategies!were!presented!by!stakeholders:!

! Stakeholders!thought!that!the!key!to!increasing!HRD!in!services!is!more!education.!Whilst! education!and!training!in!focused/market!skills!is!important,!education!levels!are!already!an!asset! so!need!to!be!targeted.!Hence!changes!to!strategy!1.4A!in!particular.!

STRATEGY!1.4A!CONTINUING!VOCATIONAL!TRAINING!AND!UPGRADING!

Stakeholders!suggested!that!an!additional!action!should!be!to!strengthen!the!links!between!national!and! international!training!organisations!to!ensure!that!the!training!is!based!on!international!standards.! Therefore,!an!additional!action!has!been!added!to!the!strategy!at!strategy!1.4A(2).!Stakeholders!also!stated! that!a!stronger!regulatory!and!accreditation!framework!is!in!place.!This!could!be!necessary!but!is!broader! than!services!alone!and!outside!the!scope!of!a!services!strategy.!

STRATEGY!1.4B!INCREASING!THE!POOL!OF!AVAILABLE!LABOUR!FORCE!FOR!SERVICES!

Stakeholders!emphasised!that!the!training!of!unemployed!should!be!matched!to!the!labour!market!needs.! This!emphasis!was!added!to!the!strategy!1.4B(1).!Additional!approaches!to!supporting!migration!of!public! workers!to!the!private!sector!such!as!exchanges!and!secondments.!These!suggestions!have!been!added!to! strategy!1.4B(2).!

In!terms!of!redundant!occupations,!stakeholders!stated!that!these!should!be!private!sector!led!based!on! market!demands!and!that!there!is!a!need!for!cultural!change.!These!are!tasks!rather!than!strategy!level! issues!that!should!be!addressed!during!implementation.!

Strategy!2.1!Valorising!the!Brand!

Additional!suggestions!as!to!strategies!were!presented!by!stakeholders:!

! The!need!for!a!services!champion!for!this!strategy!was!highlighted,!together!with!a!strong! monitoring!and!evaluation!body.!This!is!a!real!requirement!not!only!for!this!component!of!the! strategy,!but!the!strategy!as!a!whole.!This!however,!is!part!of!the!implementation!structure!that! has!been!suggested!and!therefore,!there!is!no!need!to!emphasise!the!need!in!this!part!of!the! strategy.!

STRATEGY!2.1A!STANDARDS,!QUALITY!ASSURANCE!AND!CERTIFICATION!

Stakeholders!highlighted!the!importance!of!developing!quality!assurance!and!standards!schemes!across! sectors!that!are!based!on!a!common!set!of!criteria!to!allow!for!“effective!gap!comparisons.”!This!is!an! important!point!not!only!for!the!reasons!highlighted!by!the!stakeholders,!but!also!to!ensure!consistency!in! the!brand!message.!Therefore,!the!explanatory!text!to!strategy!2.1A!has!been!elaborated!to!include!this! point.!

In!terms!of!linking!to!international!standards,!stakeholders!agreed!but!wanted!a!caveat!added!to!ensure! that!these!were!also!relevant!to!local!capacities!and!circumstances.!As!a!result,!strategy!2.1A(2)!has!been! edited!to!include!this.!

STRATEGY!2.1C!DEVELOPMENT!OF!A!NATIONAL!SERVICES!CULTURE!

Stakeholders!suggested!an!additional!action!to!promote!services!through!business!level!incentives!such!as! awards!for!delivery!of!excellent!quality!and!service.!

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Strategy!2.2!Ensuring!quality!Government!services!

Additional!suggestions!as!to!strategies!were!presented!by!stakeholders:!

! The!majority!of!suggestions!from!stakeholders!regarding!this!component!look!at!the!need!for! private!sector!validation,!publication!of!targets!and!independent!monitoring.!These!issues!were! already!foreseen!for!this!component!and!are!already!addressed!in!the!preamble!text!to!this! strategy!component.!

STRATEGY!2.2A!PUBLIC!SECTOR!QUALITY!PROGRAMME!

Stakeholders!emphasised!the!need!for!collaboration!between!NISE!and!Public!sector!reform!agency.!This!is! important!and!will!form!part!of!the!implementation!workplan!and!structures.!Adequate!resources!for!these! bodies!was!also!highlighted!as!key!to!ensuring!they!are!able!to!function!properly.!Again,!this!is!agreed!with! and!financing!must!be!addressed!more!broadly!by!the!workplan!process,!linking!results!to!budgets.!

In!the!area!of!public!sector!reform,!stakeholders!highlighted!the!need!for!training!of!public!servants!in!both! professional!service!skills!as!well!as!customer!service.!This!is!relevant!and!therefore,!an!additional!activity! strategy!2.2B(4)!has!been!added!to!the!strategy.!

Strategy!2.3!Using!services!to!improve!efficiency!throughout!national!value!chains!

Additional!suggestions!as!to!strategies!were!presented!by!stakeholders:!

! Accreditation!of!BDS!providers,!especially!within!a!broader!CARICOM!context!is!essential.!!

STRATEGY!2.3A!IMPROVE!THE!STANDARD!AND!QUALITY!OF!BUSINESS!DEVELOPMENT!SERVICES!

Stakeholders!emphasised!the!need!to!not!only!audit!available!BDS!and!its!capabilities,!but!also!to!identify! gaps.!This!has!been!added!to!strategy!2.3A(1)!as!a!result.!Stakeholders!also!agreed!with!the!need!to! develop!value!chains!to!increase!efficiency!and!that!training!was!required!of!BDS!providers!to!ensure!these! gains!would!result.!

STRATEGY!2.3C!INCENTIVES!FOR!CONSUMPTION!OF!KEY!BUSINESS!DEVELOPMENT!SERVICES!(BDS)!

Stakeholders!suggested!a!amendment!to!the!wording!of!this!strategy!away!from!consumption!to!utilisation! of!business!services.!This!has!been!amended.!

Stakeholders!were!also!concerned!with!the!quality!of!implementation!agents!that!affect!the!effectiveness! of!design,!implementation!and!roll!out!of!this!programme.!This!is!indeed!critical,!but!is!also!true!of!all!the! strategy!and!will!be!addressed!during!implementation!planning!at!a!working!group!level.!

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RESPONSE!TO!COMMENTS!FROM!MINISTRY!OF!EDUCATION,!SCIENCE,!TECHNOLOGY!AND!INNOVATION!

PAGE! COMMENT! POSSIBLE! Response!for!Consultancy!team! ACTION! 1! Did!any!reports!of!the!Barbados!Statistical! Some! The!strategy!is!designed!as!a!guide!for! Service!and! Central!Bank!referred!to!in!this! benchmarking! implementation!and!is!not!meant!to!be! draft!report.! needed! heavy!on!statistics,!methodology!etc.! What!model!was!used!for!the! However,!this!was!already!provided!in! statistics?!More!statistical! the!inception!and!progress!report.!These! examples!are! needed! will!be!provided,!with!additional! information!in!a!consolidated!final!report! to!accompany!the!strategy.! 3! The!team!thought!that!the!phrase!“limited! Change!“limited! Barbados!does!have!limited!human! resources”! should!be!reconsidered!as! Resources”!to! resources.!The!limitation!is!the!number!of! Barbados!sees!people!as! resources.! limited!natural! people,!not!the!level!or!quality.! Statement!could!be!viewed!negatively! resources! 4! There!is!a!danger!attached!to!using!the!value! added!per! worker!of!services!because!N!it! ! This!indicator!does!not!show!the! gives!no!indication!of! distribution.! Large! distribution!of!VA!per!services!worker,!but! companies!earning!a!high!percentage! of! at!a!high!level!indicator,!it!is!sufficient.!A! foreign!exchange!will!skew!that!value.! series!of!other!indicators!would!be!needed! 6! Who!are!the!key!stake!holders?! There!should!be! to!ensure!benefits!are!distributed!evenly.Stakeholders!are!not!specified!in!the! ! Query!the!need!for!Cabinet!presentation! the!addition!!of! strategy.!However,!in!the!implementation! ! member!of!Trade! process!it!is!noted!that!trade!unions!and! Who!will!make!up!the!Technical!Working! Union/! Social! the!social!partnership!should!be!included.! Group?! partnership!as!part! This!has!been!reflected!in!the!updated! of!the!Commission! version!of!the!strategy!(replacing!the! independent!commission!idea).!! 9! ACTIONSN!Some!entities!already!exist!for!the! Do!these!agencies! After!interviewing!these!agencies,!their! collection!of! statistical!data.!There!is!the! also!process! current!structures!and!lack!of!flexibility!led! Barbados!Statistical!Service,! Central!Bank,! private!sector!data?! to!the!conclusion!that!they!were! Ministry!of!Finance!and!Economic!Affairs.! inadequate!for!the!task!required.! 10! ACTIONS/POINT!2:!Gradual!Introduction!of! The!document! This!would!be!a!point!of!principle!that!all! Service! Charging!in!BusinessN!Needs! should!offer! business!services!should!be!reviewed,! Articulation!to!a!higher! degree.!We!are! suggestions!as!to! assessing!the!implications!of!introducing! heavily!taxed!so!will!this!be!lowered.! What! which!service! will! charging,!This!is!an!implementation!task.!! are!these!services!for!which!Barbadians!will! be!free,!if!any.! have!to! pay?! 11! RATIONALE:! Give!an!example!of!these! List!of! Noted,!GATS!and!other!abbreviations! sectors.! What!is!GAT?! Could!see!no! abbreviations!need! will!be!specified!in!the!text!as!WTO! reference!made!to!this! abbreviation! to!be! updated! General!Agreement!on!Trade!in!Services.! 13! Are!the!Barbados!Manufacturers’! Association,!Small! Business!Association,! ! During!implementation,!all!relevant! Youth!Entrepreneurship!Scheme,!Barbados! stakeholders!should!be!part!of!this!strategy.! Youth!Business!Trust!and!Barbados! Entrepreneur!Foundation!as!part!of!these! actions?!

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PAGE! COMMENT! POSSIBLE! Response!for!Consultancy!team! ACTION! 14! ACTIONS:! ! Again,!we!need!not!want!to!specify! 1. Government!incentives!for!training:! through!subsidies,!tax!breaks!and! individual!implementing!partners!as!the! Government! development!of!state!sponsored!training! most!appropriately!qualified!ones!will!have! institutions!like!the! programmes.! to!be!assessed!during!implementation.! ! Samuel!Jackman! ! Prescod!Polytechnic!,! ! Barbados!Vocational! ! Training!Board!and! ! Barbados!Community! ! 16! 2.How!will!this!rationale!be!accomplished!and! “Strengthening!international!links:! College!can!be! encourage!twinning!and!affiliation!with!will!the!Barbados!National!Standard! includedThere!is!the!need!to!! BNSI!is!likely!to!be!an!important!partner! global!professional!associations,!training!Institution!(BNSI)!be!the!driver!of!this! identify!Human! here!and!can!undertake!such!a!task!(to! institutions.”rationale!and!! action! Resource!capital!for!! date,!it!concentrates!ore!on!product!than! Does!the!BNSI!address!these!issues?! this!initiative! services!standards).! There!is!work!done!in! 18! Public!Sector!Quality!Programmes!–!Is!this! this!area!with!City!and! entity!setting!the!rules,!criteria!incentives! Guilds!UK.!Relations!! The!implementing!body!is!yet!to!be! and!penalties!government!or!nonN exist!with!Singapore,! decided.!This!is!an!implementation!issue! ! governmental.!If!so,!the!suggestion!of!the! India,!through! that!would!need!to!be!resolved.!Office!of! Civil!Service!Commission!or!national!audit! !Commonwealth! Public!Sector!Reform!was!added!to!this!list! body!does!not!appear!“independent”.! initiatives.! for!consideration.! How!will!this!entity!differ!from!the!Office!of! ! Public!Sector!Reform?! ! ! Monitoring!and!Consequences!for!NonN Performers! !

22! How!do!we!achieve!this!indicator!(3.1)! ! Can!small!institutions!survive!this!initiativeN! ! This!is!necessary!and!to!compete! are!we!saying!there!will!be!enough!students! ! internationally!a!preNcondition!–!there!is!no! ! choice.! This!calls!for!intuitions!speaking!with!“one! ! voice”!and!marketing!each!other.! ! This!programme!can! Having!followed!accreditation!and! be!implemented!but!it! registration!standards!set!by!national! will!be!challenging!to! Barbados!Accreditation!Council!(BAC)!which! maintain!given!our! has!proven!challenging!for!most!educational! societal!norms.! institutions!in!Barbados;!how!do!we!garner! compliance!locally?! ! 23! Hopefully,!there!will!be!the!“buy!in”!in!All!sources!for!statistics/monies!mentioned! “Sufficient”!should!be! This!is!a!task!for!the!working!groups!to! regards!to!Regional!and!International!and!projections!should!be!included.! Accreditation!Bodies! ! quantified!as!to!the! justify!monies!required!that!are!tied!to! The!use!of!the!term!“sufficient”!is!vague! number/!percentage! outputs!and!results.!There!is!then!a!clear! of!graduates!needed! link!–!if!resources!are!not!available,!then! 24! References!should!be!included!for!all! to!realize!this.! results!will!not!be!forthcoming.! statistical!data.!How!was!the!US!$40!500.00! ! A!sector!specific!strategy!is!required!so!the! calculated! overall!strategy!as!revised!will!no!longer!detail! individual!sectors.!

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RESPONSE!TO!COMMENTS!FROM!MINISTRY!OF!LABOUR,!SOCIAL!SECURITY!AND!HUMAN!RESOURCE!DEVELOPMENT!

Page!1:!Explanation!of!statistics!

These are based on available statistics at the time of the field missions (April-Aug 2013)

Pages!2N3:!MLSD!would!wish!to!suggest!that!a!limited!legislative!and!regulatory!framework!could!also!be!regarded!as!a! significant!constraint!impeding!the!performance!of!the!services!sector!in!Barbados.!

This was examined but no significant evidence from legislation and/or the private sector showed this to be the case.

Page!4:!World!Bank!statistics!on!labour!force!appear!to!be!overestimated!and!as!a!consequence,!this!would!result!in! the!service!valueNadded!per!worker!figures!being!underestimated.!

When developing a monitoring system, an accurate and consistent baseline will need to be developed by those responsible for monitoring.

The!figure!provided!in!the!third!row!of!the!table!is!presented!in!thousands!of!dollars.!Consequently,!the!“m”!should!be! removed!from!the!row.!!

Noted and corrected in text.

Page!5:!more!detail!requested!on!statistics!and!goals,!particularly!by!sector!

The strategy should be read in conjunction with the inception and progress reports which provide this level of detail.

Page!6:!MLSD!is!in!agreement!with!the!multiNtiered.!As!an!appendix!to!the!document,!a!preliminary!list!of!possible! members!each!with!representatives!of!government,!the!private!sector!and!unions.!!

This is agreed and an implementation structure is being developed as a separate paper to accompany the workplan.

Page!8:!In!the!second!paragraph,!remove!the!reference!to!“the!mindNset!of!politicians”!and!replace!with!the!term! “Government!officials”!

I think that we do want to change the mind-set of politicians so have kept this the same.

Page!9:!Under!point!#4,!it!is!suggested!that!the!first!sentence!read!“the!principal!factor!of!production!in!the!service! sector!is!the!human!resource”!

Agreed and amended accordingly.

For! all! of! the! strategies! mentioned! in! the! document,! it! is! suggested! that! as! an! appendix,! the! organisation(s)! responsible!for!implementing!each!action!be!stated.!

Agreed. This was always intended as part of the workplan to be developed.

Page!10:!MLSD!would!wish!to!suggest!that!an!additional!action!be!inserted!under!the!“Raise!the!profile!of!services! nationally”!segment.!This!action!could!read:!

“Formulate! a! national! media! campaign! that! continuously! communicates! the! services! development! message! and! tailors! that! message! to! different! audiences! such! as! schools,! workplaces,! nonNgovernmental! organisations! and! communityNbased!organisations.!

Agreed. This is now added as Strategy 1.1B(3)

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Page! 18:! The! “national! programme! of! public! sector! service! performance! targets”! To! a! large! extent,! mechanisms! already!exist!and!take!various!forms!such!as!Ministerial!Strategic!Plans,!Programme!Budget!Documents!and!in!national! planning!documents!such!as!the!Medium!Term!Development!Strategy!(MTDS)!2011N2014.!!

These were looked at. There are however a few subtle differences. This would only apply to individual units of governments or agencies. It would be voluntary and finally, entered into agreement with private sector with external monitoring.

Page!21:!The!MLSD!would!wish!to!suggest!that!Wealth!and!Hedge!Fund!Management!be!considered!as!a!viable!fourth! option!for!sector!brand!development!

This is noted. However, after consultation with stakeholders, it is now believed that although these sectors may be the first low hanging fruit, the strategy should not actually specify any sector at this stage. This would allow for alternatives such as Wealth and Hedge Fund Management to be considered during the implementation process.

Page! 24:! Under! strategy! 3.3! “Branding! Barbados! as! a! quality! service! provider”! it! is! noted! that! the! report! makes! reference! to! over! 400! ICT! graduates! being! produced! on! an! annual! basis! by! two! of! the! island’s! major! tertiary! institutions.!A!critical!action!step!under!this!strategy!would!be!a!constant!review!of!all!ICT!curricula,!to!ensure!that! curricula!remain!on!the!cutting!edge!of!technology!and!are!in!sync!with!the!ICT!programmes!offered!by!institutions!in! industrialised!countries.!!

Agreed. But in light of the above changes, this is no longer relevant for the main overarching strategy but would certainly need to be included in the specific sector strategy for ICT that needs to be developed.

General!Comments!on!the!Strategy!

THE!MLSD!NOTES!THAT!NO!REFERENCE!IS!MADE!TO!THE!CARIBBEAN!SINGLE!MARKET!AND!ECONOMY!AND!THE!ROLE!IT!CAN!PLAY!IN!HELPING! TO!DEVELOP!THE!SERVICES!SECTOR.!!

It is mentioned several times. However, in terms of market focus, we have deliberately not focused on specific markets. However, a sectoral approach would likely differentiate – for example TVET is likely to focus on CSME.

NO! REFERENCE! IS! MADE! TO! THE! NEED! TO! ESTABLISH! LINKAGES! WITH! ORGANISATIONS! SUCH! AS! THE! NATIONAL! INITIATIVE! FOR! SERVICE! EXCELLENCE!(NISE)!AND!THE!BARBADOS!NATIONAL!STANDARDS!INSTITUTION!(BNSI).!!THESE!ARE!KEY!STAKEHOLDERS!WHOSE!INPUTS!ARE! CRITICAL!TO!ENSURING!THAT!THE!OBJECTIVES!OUTLINED!ARE!SUCCESSFULLY!REALISED.!!!

Coordination is key and will be referred to more extensively in the implementation structure recommendations to be developed.

RESPONSE!TO!COMMENTS!FROM!THE!ECONOMIC!AFFAIRS!DIVISION!OF!THE!MINISTRY!OF!FINANCE!AND!ECONOMIC! AFFAIRS!

(1)! Broadly,! the! general! layout,! content,! suggested! policy! options! and! analysis! throughout! the! document! are! encouraging.! However,! some! Annex! detailing! the! methodology! on! how! such! statistics! and! findings! as! the! services! sectors!share!of!GDP!and!services!value!added!per!worker!for!example,!are!derived.!

We recommend that the strategy is formed as a guidebook and is light and easy to read. We have therefore not overburdened it with annexes. However, we recognise the importance of have a more robust basis upon which these strategies have been developed. These are currently provided in the inception and progress reports. These will be amalgamated and will form part of a final report that will provide backup to the strategy itself.

(2)!The!essence!and!seriousness!of!services!sector!issues!are!well!captured!in!the!body!of!the!document,!however,! given!that!there!are!both!public!and!private!sector!services!components!which!are!both!locally!provided!and!exported,! it!may!be!of!great!utility!to!differentiate!between!the!two!(public!services!and!private!services)!and!approach!these! with!separate!strategies!since!the!orientation!of!both!are!founded!on!vastly!different!principles.!!

At the heart of the strategy is developing an international reputation for Barbados as a quality services destination. This applies equally to public and private sectors and so we have purposely linked and include both together in this strategy.

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(3)!The!key!constraints!to!Barbados’!services!export!performance!(page!2)!may!have!been!arrived!at!through!a!process! of!consultation!and!is!all!well!and!good!however,!what!the!Government!would!also!need!to!build!on!would!be!the! relative!opportunities,!weaknesses!and!strengths,!most!appropriately!designated!in!a!COWS!Matrix!clearly!identifying! the!relevant!information!in!all!four!of!these!quadrants.!Any!studies!referenced!as!background!information!should!also! be!stated.!

Again, the constraints and opportunities have been arrived at based on extensive research that has been presented in the inception and progress reports.

(4)!The!objectives!stated!(pages!3!and!4)!are!noble,!but!would!offer!greater!utility!if!they!are!cast!as!SMART!objectives! and!especially!in!the!context!of!the!GOB!MGDS!2012N2020!strategy.!

These are high level objectives. For the purposes of implementation, a workplan will be developed which will include indicators that are “SMART” (specific, measurable, attributable, result oriented and time bound) and more importantly, aggregatable so that output indicators are shown to contribute to results indicators that lead into objective indicators. The development of the workplan takes care of these. It is felt that as we want the strategy to be widely read and accessible, the targets and associated indicators should be simple.

(5)!With!respect!to!the!overall!target!of!employeeNvalueNadded!(page!4),!the!table!indicates!that!this!is!measured!in! millions,!this!may!be!an!error,!we!have!however!assumed!that!this!is!supposedly!measured!in!thousands!of!USD.!!

This is correct and the table changed accordingly.

FURTHER!WITH!RESPECT!MOVING!THE!KEY!INDICATOR!OF!EMPLOYEE!VALUEOADDED!FROM!18,376USD!TO!25,000USD,!WE!WOULD!WISH! TO! KNOW! THE! TIME! FRAME! IN! WHICH! THIS! TARGET! CAN! BE! ACHIEVED! OR! ESTIMATED! TO! BE! ACHIEVED! (AGAIN! THE! USE! OF! A! SMART! OBJECTIVE!FRAMEWORK).!!

Timeframes have now been added in the text, as has a relative target to increase services VA per employee by 40%.

WHILE!IT!IS!ADVISED!IN!THE!DOCUMENT!(PAGE!5)!THAT!THE!TARGET!REPRESENTS!GROWTH!OF!5%!P.A!AND!THE!FIGURES!ARE!ILLUSTRATIVE,! IT!MUST!ALSO!BE!RECOGNISED!THAT!IT!IS!ON!THE!BASIS!OF!THESE!FIGURES!THAT!THE!STRATEGY!HAS!BEEN!CRAFTED!AND!THEREFORE!THESE! FIGURES!WOULD!HAVE!TO!BE!AS!RELIABLE!AS!POSSIBLE!IF!THE!DOCUMENT!IS!TO!BE!CONSIDERED!CREDIBLE.!

Statistical bases in Barbados are poor. We have tried to use relative percentages as much as possible to allow for a major first task of the monitoring team to obtain a credible and reliable baseline and then further monitoring indicators.

(6)!Page!5!also!refers!to!very!attractive!additions!to!inflows!to!the!Barbadian!economy!of!USD800!million,!and!actually! increasing!employment!by!10,000!workers!which!would!bring!the!country!to!almost!near!full!employment.!However,! the!analysis!around!this!issue!is!too!vague!and!even!if!it!is!only!an!estimate,!some!methodology!showing!how!these! numbers!were!arrived!at!would!help!the!reader!to!understand!the!analytical!point!of!departure.!

Again, reviewing the inception and progress reports goes into much detail on these types of figures.

(7)! With! respect! to! the! strategic! approach! (page! 6)! and! the! recommendation! of! an! independent! commission…to! promote! the! cause! and! support! implementation….,! it! is! recommended! that! the! existing! forms! of! institutional! collaboration!already!existing!in!Barbados,!for!example,!the!social!partnership,!the!Cabinet!subNcommittee!framework,! the!Growth!and!Efficiency!Committees!and!the!various!other!public/private!mix!technical!committees!across!Barbados! be!analytically!examined!as!a!possible!methodology!for!coordination.!!

Agreed. Based on discussions with stakeholders, the implementation structure has been adapted to replace the independent commission with a sub-committee of the social partnership. However, the task force should be dedicated to this strategy. There is no point diluting the strategy implementation by adding it to the mandate of an existing committee. This is part of the issue of non-recognition of the importance of non-tourism services to the economy. It needs and deserves specific attention.

THE!CALL!FOR!A!SECRETARIAT!NEEDS!ALSO!TO!BE!ANALYTICALLY!PROCLAIMED!IN!TERMS!OF!ITS!ORIENTATION! AND!A!DEFINITION!OF!WHO! WOULD!FUND!IT.!THE!GOB!HAS!MADE!A!NATIONAL!COMMITMENT!TO!CONTAIN!EXPENDITURE!THROUGH!THE!CONTAINMENT!OF!HIRING!IN! THE!PUBLIC!SERVICE!AND!THIS!RECOMMENDATION!MAY!BE!CONSIDERED!COUNTERFACTUAL!TO!THE!NATIONAL!INTENTION.!

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Without a secretariat to facilitate this process it will fail. If government wants the benefits, it will need to invest in these strategies which will include facilitation of the process.

(8)!With!respect!to!chapter!3!–!Services!Sector!Development,!the!overall!aim!is!noteworthy,!in!fact!there!may!have! been!some!oversight!in!how!the!services!sector!and!its!development!over!the!planning!period!were!cast!in!the!MGDS! 2013N2020,!so!therefore!this!aim!resounds!well!with!respect!to!raising!the!recognition!of!the!viability!of!this!sector!as! part!of!national!strategy.!Again!the!target!of!moving!nonNtourism!services!to!60%!needs!to!be!defined!within!a!SMART! context.!!

This framework will be development within the overall workplan.

(9)!Chapter!3!goes!on!to!define!strategies!that!again!are!bereft!of!the!SMART!objective!and!target!methodology!and! could!benefit!from!some!estimation!of!these!as!well!as!cost.!Costing!in!itself!is!extremely!important!to!this!exercise! over!time!as!value!for!money/cost!effectiveness!needs!to!be!proven,!and!financial!entry!and!exit!points!also!need!to! be!defined.!

Costings of activities will have to be undertaken by working groups when they elaborate the overall workplan. Within our project, we do not have time and resources to complete this task.

(10)!With!reference!to!the!strategic!actions!on!page!9,!and!Strategy!1.1!in!particular,!the!question!has!to!be!asked! whether!sufficient!due!diligence!was!executed!with!respect!to!the!ongoing!development!on!the!ground!in!Barbados.! The!Barbados!Statistical!Service!is!currently!undergoing!a!modernisation!project!for!which!it!has!informed!will!be!a! comprehensive! repository! of! statistical! data,! systems! and! methodologies! across! Barbados,! and! therefore! had! due! diligence!been!done,!an!entry!strategy!into!this!comprehensive!and!modernised!statistical!system!would!have!been! defined!as!an!action!in!the!services!strategy.!The!same!goes!for!research!centres,!with!respect!public!knowledge!about! research!centres!across!Barbados!that!might!be!able!to!accommodate!research!on!services!as!part!of!their!mandate! for!example,!UWI,!BIMAP,!BCC!etc.!

All the organisations met were consulted several times during the missions and these also participated in several workshops. However, the capacity and understanding and specific attention to services per se has been limited. A services strategy would not have modernisation of all statistics as its strategy – as it is focused on services statistics. Moreover, a public private sector strategy does not have to rely on government statistics alone. We would envisage statistics being collected by different organisations in both public and private sector.

(11)!While!there!is!no!disagreement!with!raising!the!profile!of!services!nationally,!there!may!be!some!unease!in!the! public!domain!to!face!a!consequence!of!a!higher!cost!of!living!and!that!of!doing!business!brought!on!by!the!gradual! introduction!of!service!charging!for!business!services.!For!this!to!be!credible,!we!would!need!to!know!what!can!be! substituted!to!ensure!that!the!cost!of!living!is!not!impacted!negatively!in!Barbados,!and!what!would!be!the!overall! return!to!the!GOB,!(whether!it!be!taxation!or!exemptions).!

We only recommend that business pay (gradually) for its business related services. We then suggest that the public is only made aware of the cost of services (public goods) such as medical, education etc – we are NOT suggesting these are paid for.

(12)!It!seems!as!if!this!strategic!document!could!have!benefited!from!a!quick!institutional!analysis/assessment!of!some! of! the! agencies! responsible! for! business! development! in! Barbados! (BIDC,! Invest! Barbados,! the! Small! Business! Association!etc)!to!ascertain!how!well!a!services!sector!focus!as!prescribed!in!the!strategy!could!be!adopted!within!the! various!agency!mandates!and!some!critical!definition!of!how!the!identified!agencies!could!embrace!responsibilities!for! the!roll!out!of!some!of!the!strategies!going!forward.!A!crafting!and!defining!of!strategic!partnerships!would!have!been! of!significant!use!in!this!regard.!Without!this,!the!strategy!could!only!be!calling!for!significant!resources!to!achieve!the! objectives,!resources!that!may!not!be!available!due!to!the!limited!fiscal!space!in!the!country.!Chapter!4!–!Services! Upgrading!also!follows!in!the!same!vein!as!above.!!

At institutional review was undertaken and will be detailed in the final report. Existing resources will be utilised as far as possible but there is also an issue of capacity, competence and resources. If absolutely no resources are made available for implementation then benefits and gains are likely to be stifled and minimal (or at least realised over the long term).

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(13)!It!should!be!stated!that!within!the!“Barbados!Growth!and!Development!Strategy!2013N2020”!(available!online)! there! is! specific! reference! to! Institutional! Reform! that! speaks! specifically! to! rationalizing! the! existing! public! stateN owned!enterprises!to!generate!greater!efficiencies!in!the!areas!of!human!resources,!technology,!cost,!productivity!and! service!delivery.!

Cognisant of difficulties in public sector reform experience in Barbados, we have made a different approach in terms of scale and ownership of reform. It will be up to service units to join the scheme (bottom up approach). We see that this actually compliments other efforts as then units within government will request support in reform rather than being forced upon them.

(14)!Chapter!5!offers!the!most!promise!in!terms!of!how!it!defines!Brand!Development!in!Barbados,!however,!SMART! objectives!and!targets!should!be!applied,!entry!and!exit!tactics!defined.!This!chapter!should!definitely!be!built!out! more!in!terms!of!a!“lowNhanging!fruit”!or!“quick!win”!strategy,!particularly!the!internationalization!of!the!education! sector.! Singapore! has! done! well! in! this! area! and! could! be! used! as! a! guide.! http://www.adbi.org/files/2012.10.12.wp388.internationalization.tertiary.educ.singapore.pdf!!.!

We are not providing short term sector strategies in this project but a medium to long term vision. We have, however, provided extensive support and advice on quick wins outside these TORs. However, it is important that Barbados first has a portable product to sell first before it runs off marketing.

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6 Immediate(Opportunities!

At!the!very!first!conversation!with!BCSI!at!the!start!of!the!project,!it!was!emphasised!that!specific!services! subXsector!strategies!were!not!desired!in!this!assignment.!What!was!required!was!a!“visionary”!medium!to! long!term!strategy!to!move!Barbados!towards!a!services!oriented!economy.!However,!over!the!course!of!the! work!with!stakeholders,!a!number!of!opportunities!and!requests!were!made!to!support!short!term!strategy! of!specific!services!subXsectors.!Although!these!were!outside!the!terms!of!reference,!support!and!advice!was! provided!across!a!number!of!subXsectors!detailed!in!this!Chapter.!

6.1 Boutique!Wellness!Product!Development!

THE!OPPORTUNITY!

The!global!market!for!destination!wellness!spa's!is!estimated!to!be!valued!at!US$!6.2!billion,!comprising! almost!1,500!wellness!spas!and!directly!employing!more!than!112,000!persons.!Barbados!has!a!broad!range! of!wellness!practitioners!in!traditional!wellness!disciplines!(yoga,!reflexology,!reiki,!detox!treatments,! dieticians,!fitness!etc)!as!well!as!authentic!Caribbean!wellness!practises!(Rastafarian,!Bush!Medicine).!In! addition,!there!are!a!large!number!of!boutique!hotels!and!villas!(East!Coast!particularly)!with!low! occupancy!that!could!be!available!to!host!wellness!tourism!retreats.!To!develop!this!sector!practitioners! need!to!develop!"wellness"!programmes!for!wellness!tourists!and!come!together!with!suitable!boutique! hotels!and!villa!owners!to!package!and!promote!these!programmes.!Barbados!has!the!second!highest! number!of!centenarians!per!capita!in!the!world!and!this!statistic!could!provide!the!anchor!for!a!very! credible!and!unique!product.!

In!discussions!with!selected!wellness!sector!trade!associations!and!the!BCSI,!a!strategy!for!developing! boutique!wellness!tourism!in!Barbados!was!outlined!and!guidelines!provided!in!May!2013!for!the!first! activity!–!development!of!the!“wellness!product!offering.”!!

THE!STRATEGY!

Activity!1!Development!of!wellness!programme!guidelines!

In!order!that!boutique!wellness!providers!are!able!to!market!and!sell!wellness!tourism,!they!need!a!defined! product.!Therefore,!themed!wellness!programme!guidelines!should!be!developed!and!made!available!to! the!private!sector!for!adaptation!as!necessary.!These!programmes!would!be!used!by!the!boutique!wellness! providers!to!organise!wellness!holiday!packages!and!sold!to!wellness!tourists.!

Activity!2!Foster!cooperation!and!partnerships!amongst!wellness!practitioners!

Regardless!of!the!support!and!interventions!by!government,!boutique!wellness!tourism!will!succeed!or!fail! on!the!alliances!made!between!and!amongst!the!various!stakeholders!in!the!wellness!sector!including! wellness!practitioners,!boutique!hotel/villa!owners,!wellness!product!manufacturers!and!local!food! providers!(especially!organic,!smallholder!farmers!etc!to!ensure!inNkeeping!with!wellness!philosophies).!

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Activity!3!Wellness!management!training!!

To!ensure!that!boutique!wellness!spa!tourism!operators!and!their!staff!provide!a!genuine!"wellness"! experience!to!wellness!tourists!on!all!aspects!of!their!experience.!This!will!include!training!and!provision!of! information!to!inform!operators!to!encourage!best!practise!in!the!wellness!tourism!sector.!Training!should! also!be!provided!in!marketing!of!the!wellness!follow!up!products!such!as!supplements,!sprint!water!and! other!wellness!products!(for!example!in!setting!up!websites!to!on!sell!the!change!of!life!after!the!tourist! return!home).!

Activity!4!Marketing!and!promotion!of!established!wellness!“product”!

To!directly!support!the!marketing!activities!of!the!boutique!wellness!tourism!operators!and!to!increase!the! profile!of!Barbados!as!a!premier!wellness!tourism!destination.!Direct!marketing!activities!including! boutique!wellness!listings!at!national!tourism!website/directories,!participation!in!exhibitions/trade!fairs,! promotion!of!unique!wellness!products!(e.g.!Centenarian,!Rastafarian!lifestyle,!Bajan!lifestyle,!herbal!and! bush!medicines!etc)!through!articles,!book!publications,!lectures!and!dedicated!events!and!most! importantly,!selection!and!registration!with!wellness!travel!agents!abroad!(including!online!agents).!

DEVELOPMENT!OF!WELLNESS!PROGRAMME!GUIDELINES!

Guidelines!could!be!developed!with!stakeholders!and!made!freely!available!or!(if!sufficient!level!of!detail!is! provided!as!to!the!philosophy,!standards,!treatments!etc)!sold!to!the!private!sector.!The!wellness! programme!guidelines!would!be!developed!on!key!themes!including!specific!Barbadian!themes!(longevity,! healing!waters,!energy!points,!Rastafarian);!sanctuary!(deNstress!and!detox);!lifestyle!(holistic!N!mind,!body! and!spirit);!and/or!specific!themes!(yoga,!sports,!weight!loss!etc).!An!onNgoing!plan!of!wellness!programme! development!is!envisaged,!ensuring!refreshed!products,!reflecting!global!trends!and!market!requirements.!!

Objective!

In!order!that!boutique!wellness!providers!are!able!to!market!and!sell!wellness!tourism,!they!need!a!defined! product.!Therefore,!themed!wellness!programme!guidelines!will!be!developed!and!made!available!to!the! private!sector!for!adaptation!as!necessary.!These!programmes!would!be!used!by!the!boutique!wellness! providers!to!organise!wellness!holiday!packages!and!sold!to!wellness!tourists!through!wellness!“tour! operators”!and!general!promotion.!

Output!

Guidelines!for!themed!wellness!programmesThe!Barbados!Coalition!of!Services!Industries!should!form!a! broad!based!Wellness!Stakeholder!Group!to!develop!the!Barbadian!Wellness!“product”!based!on!a! consistent!and!high!quality!of!service.!This!will!provide!the!focus!for!national!promotion.!

Actions!

TASK!1!O!IDENTIFICATION!OF!WELLNESS!STAKEHOLDERS!!

The!Wellness!Stakeholder!Group!should!create!a!database!of!wellness!stakeholders!including!communities,! practitioners,!associations!and!existing!wellness!centres.!!

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Develop!an!itinerary!of!wellness!providers!by!type!of!therapy.!For!each!type!of!therapist,!describe!the! therapy!and!benefits!in!a!paragraph!and!profile!practitioners!including!number,!qualifications!(as! applicable)!and!price!ranges!for!treatments.!

Create!a!database!of!practitioners!(excel!spreadsheet)!detailing!name,!contact!details,!qualifications!and! checklist!of!therapies!offered.!

Develop!an!itinerary!of!locally!produced!wellness!products!including!description,!properties,!benefits!and! approvals.!

TASK!2!O!OUTLINE!PROGRAMMES.!!

The!Wellness!Stakeholder!Group!will!outline!programme!content,!philosophy!(history!and! evidence/benefits)!and!treatments,!ensuring!comprehensive!approach!including!types!of!treatments,! lecturers!(e.g.!lifestyle!changes!at!home),!workshops!(e.g.!cookery!classes),!exercise!programmes!and!other! activities.!!

Workshop!concepts!for!wellness!packages,!detailing!concept,!outline!content,!venue!and!costs!

Develop!detailed!programme!content!providing!more!details!on!philosophy!behind!each!treatment!linking! back!to!overall!theme,!standards!and!quality!of!each!item!required!(including!qualifications,!experience!of! practitioners)!!

TASK!3!O!DEVELOPMENT!OF!WELLNESS!TOURISM!PROGRAMME!GUIDELINES.!!

The!Wellness!Stakeholder!Group!should!prepare!detailed!operations!manual!for!each!selected!wellness! theme!regarding:!

Expanded!history,!concept!and!philosophy!behind!the!theme,!linking!it!to!a!unique!“point!of!difference”! including!linkages!to!Barbados.!

Details!of!the!programme!content!and!treatment!practises,!including!history/story!behind!each!–!during! treatments,!these!ideas!are!what!the!clients!are!buying.!

Required!standards!and!qualifications!for!each!of!the!key!elements!of!the!wellness!tourism!spa!programme! (accommodation,!treatment!areas,!practitioners,!products)!

Operational!guidelines!including!record!keeping,!confidentiality,!recommended!threshNholds!of!liability! insurance!and!whether!medical!assessments!are!required!prior!to!certain!treatments.!

TASK!4!–!PREPARATION!OF!PROMOTIONAL!BROCHURE.!!

Marketing!material!promoting!the!concept.!Since!clients!buy!the!concept!as!much!as!the!treatment!itself,! this!much!be!of!the!highest!quality!“marketing”,!professional!and!well!written.!

TASK!5!O!DRY!RUN!AND!REFINING!GUIDELINES!AS!APPROPRIATE.!!

The!first!time!the!programme!is!run,!many!teething!programmes!can!be!expected.!Therefore,!to!improve! professionalism!and!any!feedback,!dry!runs!with!feedback!would!be!beneficial.!

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TEMPLATES!TO!GUIDE!PROGRAMME!DEVELOPMENT!

Outline!Concept!Template!

Title/Programme!Objective:!For!example!centenarian,!detox,!weight!loss,!distress!or!lifestyle!change.! Concept/Philosophy:!Paragraph!describing!the!concept!behind!the!concept! Programme!Content:!List!programme!content!N!for!example!(http://www.kamalaya.com/index.htm)!specifies!Detox!&! Rejuvenation!packages:! !! |!!Accommodation!(7,!9!or!14!nights)! !! |!!Full!board!(3!meals!per!day,!à!la!carte!or!set!detox!menu)! !! |!!1!x!Body!BioNimpedance!Analysis!(BIA)! !! |!!1!x!Initial!Wellness!Consultation! !! |!!1!x!90!minute!Vital!Essence!Oil!Massage! !! |!!1!x!90!minute!Traditional!Thai!Massage! !! |!!Detox!Herbal!Remedies!and!Supplements! !! |!!Specific!treatments!/!components!as!listed!in!the!package!descriptions!! !! |!!Use!of!steam!cavern,!swimming,!plunge!pools!&!fitness!centre! !! |!!Complimentary!attendance!to!scheduled!daily!holistic!fitness!activities!! !! |!!One!Wellness!gift!pack! !! |!!Roundtrip!airport!transfers! Venue/accomodation:! Describe!the!type!of!venues!appropriate!for!this!themed!concept!(such!as!remote!location,! seaside!etc! Costs:!Estimate!costs!and!price!based!on!“activities”!listed!in!programme!content.!Note:!low!end!wellness!retails!at! around!US$400!per!person!per!night!with!higher!end!at!US$1,000.!Given!this!excludes!flights!and!Barbados!is!a!new! entrant,!but!would!be!aiming!for!a!quality!end!“product”,!it!should!aim!in!US$600!range!(retail)!–!so!a!retreat!with! average!20!persons!(10N30!range)!@!US$!84,000!revenue!range!for!7!days.!An!onNsite!course!coordinator!is!required!–! this! could! be! one! of! the! practitioners,! but! will! take! responsibility! for! the! course/retreat! and! should! be! costed! (its! 24/7).!

Outline!of!Detailed!Programmes!

1.!PROGRAMME!CONCEPT/PHILOSOPHY!

Expansion!of!the!paragraph!to!several!pages!regarding!philosophy!with!relevant!history!and! De evidence/benefits!of!the!overall!approach.!This!is!really!crucial!as!this!is!what!the!clients!are!“buying”!the! idea!that!will!change!their!lives,!either!temporarily!(detox)!or!more!permanent!lifestyle!change.!As!much!as! possible,!it!should!be!linked!to!the!destination!(they!can’t!get!this!anywhere!else)!such!as!energy!points,! more!centenarians!etc.!Any!claims!should!be!substantiated.!It!should!also!be!professional!with! photographs,!illustrations!(perhaps!using!local!pen/ink!artists!to!differentiate!in!some!cases).!It!should!be! well!articulated!by!professional!writers!such!as!journalists!or!historical!writers.!

2.!PROGRAMME!SCHEDULE!

This!should!be!a!grid!timetable!detailing!the!specific!activities!to!be!included!in!the!programme!including!1N 2N1!appraisals,!lectures,!treatments,!exercise,!related!tours!and!free!time.!

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Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 7-8 8-9 9-10 Merge timeslots as 10-11 necessary 11-12 12-1 Don’t forget Ensure that meals treatments 1-2 are spread to enable 2-3 treatment of all clients – 20 3-4 massages in one go is a 4-5 challenge!! 5-6 6-7

The!programme!must!be!structured,!but!not!over!packed!with!plenty!of!room.!

3.!PROGRAMME!DETAIL!

For!each!activity/therapy!in!the!programme,!detail!the!following!in!1N2!pages!for!each!activity!in!the! programme!including:!introduction,!1N2N1!consultation!(data!protection!and!medical!assessment),! workshops,!meals,!exercise,!tours,!treatments!and!products!(including!how!people!can!purchase!at!the!end! of!the!programme!and!afterwards):!

! Philosophy!behind!activity!(link!to!overall!concept)!–!a!consistent!story,!including!benefits!(eg!if! using!sugar!cane!oil!in!massage:!where!does!it!originate,!benefits,!history!of!use!etc)! ! description!of!activity!(what!clients!will!receive!and!how!it!will!work!–!that!is,!individual!basis,!small! groups,!large!groups)! ! Standards,!quality!and!qualifications!required!(details!of!any!assurance!that!should!be!applied!to! these!activities!–!for!example,!standards!if!treatment!such!as!international!spa!standards!for! hygiene!etc,!qualifications!required!(formal!and!experience)!insurance!requirements!and!specific! trainings!(including!on!this!specific!programme.!

Once!developed,!these!details!should!be!reviewed!by!groups!of!practitioners!in!workshops!and!refined! accordingly.!

The!following!examples!of!programmes!and!marketing!materials!were!provided:!

! Canyon!Ranch! ! The!Ranch! ! Masters!of!Wellness! ! Life!Enhancement!programme! ! Chiva!Som!!

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6.2 Business!Processing!Outsourcing!–!Medical!Transcription!

THE!OPPORTUNITY!

The!US!Department!of!Labor!estimates!there!is!currently!a!shortage!of!approximately!35,000!qualified! medical!transcriptionists!(MT)!and!in!the!next!several!years!there!will!be!a!26%!increase!in!the!need!for! qualified!medical!transcriptionists!.!With!the!move!towards!electronic!health!records,!this!need!will! increase,!providing!more!opportunities!for!qualified!medical!transcriptionists.!Growing!numbers!of!medical! transcriptionists!will!be!needed!to!amend!patients'!records,!edit!documents!from!speech!recognition! systems,!and!identify!discrepancies!in!medical!reports.!!

The!Caribbean!has!proven!to!be!an!ideal!location!for!this!industry!because!English!is!the!primary!language,! technologies!exist!to!develop!the!infrastructure!to!support!medical!transcription!service!organizations,!and! there!is!a!desire!among!the!people!to!learn!the!profession.!MT!has!been!established!in!Antigua,!the! Bahamas!(employing!roughly!1000!people),!Barbados,!!and!Trinidad!and!Tobago.!

THE!STRATEGY!

However,!it!should!be!noted!that!the!medical!transcription!industry!is!like!any!other!BPO!business!–!that!is! it!is!transactional!–!payments!are!made!by!the!client!for!each!completed!transaction.!Therefore,! competitiveness!depends!upon!the!ability!to!complete!transactions!to!the!clients!specifications!in!the!time! required.!For!MT,!successful!transcribers!are!those!that!are!not!only!qualified,!but!are!experienced!and!able! to!hit!time!bound!targets!on!the!number!of!transactions!completed!satisfactorily.!Moreover,!it!is!important! to!recognise!that!MT,!like!all!BPO!is!very!mobile!and!clients!switch!–!securing!a!client!is!likely!only!to!last!for! a!few!years.!Successful!BPO!companies!are!always!looking!to!market!the!next!client!recognising!that!the! existing!client!base!is!usually!finite.!This!has!been!a!fundamental!error!in!the!approach!to!BPO!taken!in! Barbados!–!securing!one!client!is!not!the!end!and!constant!marketing!in!the!BPO!sector!is!required.!

Therefore,!the!strategy!for!existing!MT!outsourcing!companies!in!Barbados!should!be! to!improve!their!marketing!and!actively!promote!themselves!to!new!clients!through! marketing!missions!and!participation!in!trade!shows.!

ADVICE!PROVIDED!

In!the!US,!there!are!reportedly!more!than!1,000!medical!transcription!companies!and!24!approved!training! institutes!listed!by!Association!for!Healthcare!Documentation!Integrity!(AHDI),!formerly!the!American! Association!for!Medical!Transcription.!In!order!to!assist!existing!MT!BPO!companies!in!Barbados!maintain! and!expand!their!business,!a!list!of!over!800!medical!transcription!companies!listed!on!the!website!MT! Daily!N!Medical!Transcription!Networking!Centre!was!provided!as!a!tool!to!marketing.!These!were!listed!by! US!state.!The!following!are!the!first!listings!as!an!example:! Alabama: 1. Emerald Transcription, Inc., 22262 Saratoga Drive, Athens, AL 35613, http://www.emeraldtranscription.com, (256) 233-3312 or toll free 1-888-239-7750, [email protected] 2.Orion Medical Transcription, Inc, 10004 Allison Drive, Huntsville, Alabama 35803, 205- 620-5602, fax 205-419-0992, http://www.oriontranscription.com

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6.3 English!Language!Training!

THE!OPPORTUNITY!

The!Brazilian!market!for!English!Language!Training!abroad!is!estimated!at!US$!255!million,!comprising!an! estimated!52,500!students!with!an!average!spend!of!US$!4,868!per!student!(ranging!from!US$!1,500!to! US$!16,000).!The!average!stay!in!foreign!countries!by!Brazilian!English!Language!students!was!8.5!weeks! with!70%!of!students!staying!with!families.!The!majority!of!students!travel!to!North!America!with!60%! travelling!to!Canada,!11%!the!US,!10%!US!and!9%!Ireland.!

Around!74%!of!students!are!aged!18N30,!with!20%!up!to!17!years!old.!The!main!motivations!for!studying! English!Language!are!for!current!work!(33%),!future!work!(31%),!as!a!requirement!for!further!study!in!Brazil! (16%)!and!as!a!requirement!for!further!study!overseas!(15%).!The!majority!courses!selected!by!students! were!general!(37%)!and!intensive!(28%)!English!language!courses!with!a!growing!trend!(12%)!towards! combined!language!and!work!courses.!A!further!8%!chose!Business!English!courses.!The!key!criteria!for! selection!of!destination!were!ease!of!visa!access,!portable!qualification!and!security!at!destination.!!

THE!STRATEGY!

There!are!around!1,000!FTE!(full!time!equivalent)!unutilised!places!at!BCC!plus!at!least!4!private!English! Language!Schools!operating!in!Barbados.!The!immediate!opportunity!would!be!in!identifying!and! appointing!education!consultants!for!ELT!in!target!markets!such!as!Brazil.!ELT!marketing!channels!of!Agents! (which!account!for!on!average!60%!of!student!ELT!recruitment!in!UK,!Canada,!Australia,!Ireland!and!South! Africa);!Advertising!(which!account!for!11%!of!ELT!recruitment)!and!recruitment!fairs!(which!account!for! 13%!of!ELT!recruitment).!It!should!be!noted!that!in!the!UK,!schools!spend!on!average!7%!of!income!on! marketing!

Task!1!–!Audit!of!ELT!Organisations!!

Once!the!scope!and!operations!of!the!organisations!have!been!defined,!a!cluster!organisation!needs!to!be! legally!established.!The!precise!legal!formalities!in!cooperating!and!joint!marketing!will!depend!upon!the! type!of!institution!itself,!(corporation,!public!body!or!a!nonNprofit!organisation!such!as!an!umbrella! association).!Part!of!this!process!will!be!to!develop!a!business!plan!for!the!organisation!which!includes! identifying!the!sources!of!its!income!to!adequately!resource!it,!ensure!its!sustainability!and!recruit!staff!as! required.!

Task!2!–!Develop!Systems!for!Facilities!Management!and!Marketing!

Once!the!organisation!is!established,!the!basic!tools!of!its!operations!will!need!to!be!developed!and! designed:!webpage;!social!media;!directory!of!“client”!institutions!defining!services,!costs!etc.;!audit!and! register!of!accommodation!and!other!available!activities!in!Barbados,!as!necessary.!

Task!3!–!Development!of!Standards!for!Education!and!NonNEducation!Facilities!

Such!schemes!could!cover!standards!for!education!facilities!(buildings,!classrooms,!technical!equipment! etc.)!as!well!as!nonNeducational!facilities!and!services!(accommodation,!transport,!pastoral!care,!student! services,!dealing!with!arrivals!etc.).!!These!standards!would!be!voluntary!so!as!not!to!restrict!business,!but! should!be!encouraged!to!be!adopted!to!ensure!“quality”!of!the!national!product.!

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Task!4!N!Identification!of!Potential!Agents!in!Target!Markets!

This!will!involve!internet!research!to!list!ELT!agents!in!each!target!market!(for!example,!one!international! directory!alone!registers!more!than!30!in!Brazil).!A!set!of!criteria!for!reducing!the!list!to!a!manageable! number!is!needed!(such!as!student!testimonials,!specialisms!in!ELT!etc.).!Such!research!would!include!(but! not!restricted!to)!ELT!Schools!and!Agents!Directory!and!Federation!of!Education!and!Language!Consulting.! Cost!will!be!another!factor!but!it!should!be!noted!that!on!average,!agents!charge!20%!of!ELT!fees!for! recruitment.!

Task!5!–!Mission!to!Agents!in!Target!Markets!

Initially,!trips!to!visit!potential!agents!will!be!needed!during!the!vetting!process!to!decide!on!which!agents! to!appoint!for!Barbados!ELT!schools!through!the!Joint!Marketing!organisation.!Once!these!have!been! selected,!annual!visits!to!these!(and!alternatives!to!ensure!always!the!best!ones!are!used)!will!need!to!be! undertaken.!It!should!be!noted!that!UK!schools!spend!on!average!27%!of!their!total!marketing!budget!on! visits!to!agents.!

Task!6!–!Agents!Workshops!

Once!agents!have!been!appointed,!most!schools!and!organisations!invite!all!their!agents!to!an!event!in! country!(all!expenses!paid)!to!view!the!facilities!and!schools!and!better!understand!course!outlines.! Therefore,!the!joint!marketing!organisation!would!organise!this!on!behalf!of!all!the!schools.!

ADVICE!PROVIDED!

There!are!80!education!agents!in!Brazil,!and!under!half!of!these!are!members!of!the!Brazilian!Education!and! Language!Travel!Association!(BELT).!In!a!recent!survey!by!the!Language!Travel!magazine,!most!Brazilian! agents!identify!new!business!partners!(foreign!language!schools)!through:!language!fairs!and!exhibitions! (30%),!workshops!delivered!by!foreign!language!schools!(29%)!and!internet!(14%).!!

To!support!implementation!of!the!marketing!strategy!defined!above,!the!following!information!was! provided!to!BCSI!in!July!2013:!

Exhibitions!

! International!Education!Brazil!EXPO!Roadshow:!The!Roadshow!attracted!over!13,000!students!in! 2010,!76%!of!these!being!fully!funded.!The!majority!of!students!were!interested!in!languages,! business!courses!and!postgraduate!study.!

!Industry!Trade!Association!

! The!Brazilian!Educations!&!Language!Travel!Association:!http://www.belta.org.br!

Education!Agents!

A!list!of!30!agents!was!provided!to!BCSI!in!the!following!form:!

! Experience!International:!www.expeinter.webnode.com.br! ! Silvia!Utrini!Intercâmbios:!www.silviautrini.tur.br! ! One!Life!Intercâmbio!e!Viagens:!www.onelife.tur.br! ! Upward!Study!Abroad!&!Travel:!www.upward.com.br!

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6.4 Commercial!Art!

THE!OPPORTUNITY!

The!global!market!for!art!was!estimated!at!US$!$60.8!billion!million!in!2011,!comprising!50%!sold!through! auctions!and!50%!through!galleries!and!private!sales.!The!largest!market!is!China,!accounting!for!30%!of! sales!followed!by!the!US!(29%),!UK!(22%)!and!France!6%.!

There!are!approximately!100,000!art!dealers!around!the!world,!including!a!growing!number!of!art! consultants!that!focus!on!selling!works!to!corporations.!Art!consultants!(a!mix!of!agent,!private!dealer,! gallery!dealer,!interior!designer,!curator!and!salesman)!sell!art!to!a!variety!of!clients,!such!as!hospitals,! hotels,!corporations,!restaurants,!resorts,!and!any!other!business.!They!work!with!both!corporate!and! private!clients!and!usually!handle!a!wideNrange!of!art!styles.!

In!the!1990’s!corporate!art!programs!consisted!of!framed!photographs,!canvasses,!and!posters.!!With!the! recent!advent!of!digital!printing!the!whole!scope!of!art!offerings!has!expanded!consisting!of!threeN dimensional!works!and!digital!printing!on!substrates!such!as!acrylic,!bamboo,!tile,!and!fabric.!Often!an! entire!art!program!will!consist!of!these!types!of!pieces!in!various!sizes!requiring!no!framing.!Currently,! approximately!75%!of!corporate!programmes!are!framed!pieces!and!25%!of!pieces!not!needing!framing.! Healthcare!clients!usually!demand!more!dimensional!work!while!law!firms!and!commercial!real!estate! businesses!purchase!more!framed!work.!Corporate!decision!makes!are!very!open!to!seeing!all!kinds!of! artwork!and!they!understand!the!significance!artwork!plays!in!the!overall!design!of!the!facility.!

THE!STRATEGY!

There!are!an!estimated!100,000!Art!Dealers!and!Consultants!active!in!selling!art!works,!each!averaging! annual!sales!of!290!items!each!with!around!1,900!having!sales!in!excess!of!US$!50!million.!Unlike!a!gallery! that!generally!represents!a!few!artists,!art!consultants!represent!the!corporate!clients.!Consequently,!art! consultants!seek!to!contact!100s!of!artists!at!a!time!in!order!to!meet!any!needs!and!demands!of!their! clients.!!Art!consultants!are!looking!to!form!relationships!with!artists!that!are!professional!and!who!present! themselves!as!business!people.!That!is,!can!produce!volumes!of!work!on!demand!(quick!turnaround!times)! and!are!flexible!(sizes,!colours!and!styles)!to!the!needs!of!the!client.!A!strategy!of!selecting!and!appointing!a! number!of!art!consultants!in!many!different!locations!should!be!pursued!to!maximise!Bajan!art!sales.!

Task!1!–!Audit!and!registration!of!Artists!to!promote!!

Once!the!audit!of!artists!(across!the!different!physical!forms!canvas,!sculpture,!photography!etc),!the! grouping!needs!to!be!legally!established!as!a!cluster!to!market!and!sell!pieces!–!this!could!be!through!the! Arts!Council.!Part!of!this!process!will!be!to!develop!a!business!plan!for!the!organisation!which!includes! identifying!the!sources!of!its!income!to!adequately!resource!it,!ensure!its!sustainability!and!recruit!staff!as! required.!

Task!2!–!Develop!Systems!for!Marketing!

Once!the!organisation!is!established,!the!basic!tools!of!its!operations!will!need!to!be!developed!and! designed:!webpage;!social!media;!directory!of!artists!and!their!portfolios.!The!portfolio!should!not!be!public! access!and!restricted!for!use!by!selected!art!consultants!in!selling!to!their!clients.!It!will!also!be!necessary!to!

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train!and!raise!awareness!amongst!artists!on!selling!and!pricing!of!commercial!art!–!discounts,!commissions! and!bulk!sales.!

Task!3!N!Identification!of!Potential!Agents!in!Target!Markets!

This!will!involve!internet!research!to!list!art!consultants!in!each!target!market!and!select!the!consultants’! whose!client!profile!fits!the!type!and!style!of!art!available!in!Barbados.!Art!consultants!represent!lots!of! artists!so!loyalty!is!limited!to!the!commissions!they!can!make!so!it!is!important!to!appoint!art!consultants! on!a!nonNexclusive!basis!–!although!they!are!regionally!based!so!you!may!give!exclusive!representation!for! a!single!city!only.!However,!it!is!important!that!you!have!many!representatives!so!select!many!consultants! (1!per!major!city!in!US!for!example!may!be!a!target).!Cost!will!be!another!factor!but!it!should!be!noted!that! on!average,!Art!Consultants!charge!40N50%!Commission!so!you!need!to!be!clear!on!pricing!(prices!on!the! website!should!include!the!Consultant’s!Commission)!

Task!4!–!Mission!to!appoint!Art!Consultant!in!Target!Markets!

Initially,!trips!to!visit!potential!consultants!will!be!needed!during!the!vetting!process!to!decide!on!which! consultants!to!appoint.!Once!these!have!been!selected,!annual!visits!to!these!(and!alternatives!to!ensure! always!the!best!ones!are!used)!will!need!to!be!undertaken.!If!a!consultant!is!not!working!for!your!artists,!it! may!be!that!he!is!the!wrong!agent!or!you!are!doing!something!wrong!–!engage,!dialogue!and!learn.!!

ADVICE!PROVIDED!

The!following!information!was!provided!to!BCSI!in!October!2013!to!assist!with!development!of!a!sector! strategy!and!implementation.!

Trade!Publications!

! Art!Calendar!Magazine!N!enNgb.facebook.com/ArtCalendarMagazine! ! Art!World!News!N!www.artworldnews.com/! ! American!Art!Review!N!amartrevsecure.com/! ! Art!News!N!www.artnews.com/!

Trade!Fairs!

! Art!Expo!New!York!N!Artexpo!is!an!annual,!juried!expo!that!has!400+!exhibiting!artists,!galleries!and! publishers!from!across!the!globe,!showcasing!exciting!original!artwork,!prints,!paintings,!drawings,! sculpture,!photography,!ceramics,!giclee,!lithographs,!glass!works!and!more.!It!has!been!operating! for!35!years.!artexponewyork.com/! ! Maastricht!Art!Fair!N!Over!the!years!TEFAF!Maastricht!has!established!an!unrivalled!reputation!as! the!world’s!leading!fair!for!art,!antiques!and!design!since!1975.!In!2013,!there!were!266!dealers! from!twenty!countries!with!more!than!70,000!people!came!to!TEFAF!Maastricht!2013.! www.tefaf.com/DesktopDefault.aspx?tabid=1!

!Industry!Trade!Associations!

! Association!for!Professional!Art!Advisors!N!Provides!guidelines!and!standards!for!professional!art! advisors!and!a!network!for!communication!among!art!advisors,!curators!and!art!service! professionals.!www.artadvisors.org!

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! International!Facility!Management!Association!N!A!nonNprofit!organization!dedicated!to!serving! facility!management!professionals,!many!of!whom!are!decision!makers!for!purchasing!art!for! corporate!facilities.!www.ifma.org! ! Set!Decorators!Society!of!America!N!Maintains!a!list!of!art!consultants!and!prop!houses!involved!in! art!placement!for!use!in!film,!television!commercials!and!other!media.!www.setdecorators.org!

Art!Consultants!Listings!

! Association!for!Professional!Art!Advisors!N!Provides!guidelines!and!standards!for!professional!art! advisors.!A!membership!list!is!published!online.!www.artadvisors.org/membershipNdirectory/! ! The!Art!Consultants!List!N!An!annotated!list!with!names!and!street!addresses!of!more!than!375!art! consultants!nationwide!who!sell!work!to!corporations!and!individuals.!Organized!by!state.! Annotated!to!include!street!addresses,!phone!and!fax!numbers,!eNmail!addresses,!Web!sites,!and!in! some!cases,!a!description!of!markets!and!disciplines!of!interest.!Updated!on!an!onNgoing!basis.! www.carollmichels.com/index.php/resourceNlists! ! Public!Art!Administrative!Consultant!Directory!N!The!PAN!Public!Art!Administrative!Consultants! Directory!2009!includes!a!descriptive!summary!of!each!firm,!arranged!alphabetically.!Next!to!each! firm’s!name!is!a!number!in!parentheses,!which!corresponds!with!the!Services!Offered!at!the!end!of! the!directory.! www.artsusa.org/pdf/networks/pan/PAN%20Public%20Art%20Administrative%20Consultants%20 Directory%202009.pdf! ! Art!Consultants!UK!N!This!is!a!free!to!use!web!site!for!arts!organisations!and!artists.!We!have!been! here!for!more!than!fifteen!years!to!give!you!a!trustworthy!source!of!information!on!arts! consultants!and!other!art!services.!www.artsNconsultants.org.uk/! ! The!Art!Network!N!List!of!corporate!art!consultants,!art!reps!and!artist!coaches!updated!monthly.! Contact!details!are!provided!for!a!small!fee.! http://artmarketing.com/corporate%20art%20consultants.html!

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7 Guidelines)for)Pilot&Survey&of&Education&Sector!

One!of!the!most!important!criteria!for!effective!policy!decision!making!is!the!ability!to!make!informed! decisions.!However,!the!absence!of!sector!and!subXsector!data!and!statistics!in!the!services!sector!in! Barbados!constrains!the!potential.!Conditional!on!the!development!of!the!sector!is!the!need!to!develop!a! firm!statistical!base.!Discussions!with!stakeholders!and!national!statistical!authorities!showed!that!the!most! appropriate!and!realistic!approach!would!be!for!BCSI,!in!cooperation!with!sector!trade!associations!to! undertake!this!task.!Therefore,!guidelines!and!advice!on!undertaking!a!pilot!survey!of!the!education!sector! was!provided!and!details!given!within!this!chapter.!

7.1 Introduction!

OBJECTIVES!

The!following!provides!guidelines!for!the!survey!of!the!education!services!sector!in!Barbados.!It!is!not! intended!to!be!a!template!for!surveys!in!other!sector!or!in!other!countries!as!it!has!been!specifically! designed!for!the!business!of!delivering!education!services!in!Barbados.!This!was!developed!as!a!guideline! for!a!pilot!survey!to!demonstrate!how!to!bridge!the!knowledge!gap!of!the!relative!importance!to!the! economy!of!the!different!services!sectors!in!Barbados,!about!which,!very!little!data!is!available.!

The!objective!of!the!survey!is!to!assess!economic!development!situation!not!the!quality!of!provision!of! education!services.!In!this!regard,!the!information!to!be!collected!will!be!used!to!provide!evidence!to! economic!policy,!not!education!policy.!The!survey!will!examine!both!domestic!and!export!of!education! services!in!Barbados.!For!exports,!the!economic!benefit!will!go!beyond!the!“business”!benefit!of! educational!fee!income!from!foreign!students!and!employment!in!the!education!sector!(direct!benefits)!to! the!wider!benefits!to!the!economy!of!having!foreign!students!in!residence!(temporarily)!spending!in!retail,! entertainment,!housing!and!transport!sectors,!which!will!add!to!economic!growth!prospects!(indirect! benefits).!

DEFINITIONS!

The!first!challenge!in!collecting!statistic!and!undertaking!surveys!in!the!services!sector!is!the!definitions!to! be!used.!This!is!especially!important!to!ensure!that!the!subNsector!breakdown!provides!useful!enough,!and! disaggregated!enough!to!be!useful!for!policy!makers!to!make!informed!choices.!

By!comparison!to!goods,!the!level!of!disaggregation!and!the!definitions!in!international!services!sectors!are! not!very!useful!in!a!national!context.!For!example,!the!World!Customs!Organisations’!Harmonised!System! of!classification!of!goods!traded!comprises!10,300!individual!product!categories!compared!with!the!WTO! services!sectoral!classification!list!comprises!only!158!categories.!For!export!of!services,!which!is!calculated! by!analysis!of!Balance!of!Payments!the!data!available!has!a!very!high!level!of!aggregation.!The!11!main! BPM5!standard!services!components!are:!

1. Transportation.! 7. Computer!and!information!services.!

2. Travel.! 8. Royalties!and!license!fees.!

3. Communications!services.! 9. Other!business!services.!

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4. Construction!services.! 10. Personal,! cultural,! and! recreational! services.! 5. Insurance!services.! 11. Government! services,! not! included! 6. Financial!services.! elsewhere!

Therefore,!to!identify!export!of!specific!services!it!is!not!possible!to!ascertain!any!specific!data!using!the! balance!of!payment!statistics!will!never!be!appropriate.!For!education!services,!these!are!not!possible!to! estimate!as!it!is!part!of!Other!personal,!cultural,!and!recreational!services!comprising!not!only!Education! services,!but!Health!services,!and!Other!personal,!cultural,!and!recreational!services!as!defined!in!both!WTO! classification,!which!corresponds!to!the!UN!Central!Product!Classification!(CPC)!and!the!UN!International! Standard!Industrial!Classification!of!All!Economic!Activities!(ISIC).!!

In!the!context!of!services!as!an!economic!sector!in!Barbados,!the!potential!areas!of!interest!for!policy! making!decisions!are!based!on!post!18!training;!that!is,!higher!education,!technical!and!vocational!training! and!English!Language!Training.!!

The!World!Bank39!defines!tertiary!education!as!including:!

!Universities!as!well!as!institutions!that!teach!specific!capacities!of!higher!learning!such! as!colleges,!technical!training!institutes,!community!colleges,!nursing!schools,!research! laboratories,!centers!of!excellence,!and!distance!learning!centers.!

Within!the!CPC!and!ISIC!definition,!the!following!subNgroups!are!defined:!

Higher!Education:!This!class!includes!the!provision!of!postNsecondary!nonNtertiary!and!tertiary!education,! including!granting!of!degrees!at!baccalaureate,!graduate!or!postNgraduate!level.!The!requirement!for! admission!is!at!least!a!high!school!diploma!or!equivalent!general!academic,!training.!Education!can!be! provided!in!classrooms!or!through!radio,!television!broadcast,!Internet!or!correspondence.!This!class! includes:!

! first!stage!of!tertiary!education!(not!leading!to!an!advanced!research!qualification)! ! second!stage!of!tertiary!education!(leading!to!an!advanced!research!qualification)!

PostNsecondary!nonNtertiary!education!services:!This!group!includes!general!continuing!education!and! continuing!vocational!education!and!training!for!any!profession.!Instruction!may!be!oral!or!written!and!may! be!provided!in!classrooms!or!by!radio,!television,!Internet,!correspondence!or!other!means!of! communication.!This!group!also!includes!the!provision!of!instruction!in!athletic!activities!to!groups!or! individuals,!foreign!language!instruction,!instruction!in!the!arts,!drama!or!music!or!other!instruction!or! specialized!training.!

Other!Education!Services:!This!group!includes!general!continuing!education!and!continuing!vocational! education!and!training!for!any!profession.!Instruction!may!be!oral!or!written!and!may!be!provided!in!

39! http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION/0,,contentMDK:20298183~menuPK:617592~pagePK:14895 6~piPK:216618~theSitePK:282386,00.html#what_why!

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classrooms!or!by!radio,!television,!Internet,!correspondence!or!other!means!of!communication.!This!group! also!includes!the!provision!of!instruction!in!athletic!activities!to!groups!or!individuals,!foreign!language! instruction,!instruction!in!the!arts,!drama!or!music!or!other!instruction!or!specialized!training.!

In!the!context!of!Barbados,!it!is!appropriate!to!disaggregate!these!classifications!further!to!ensure!evidence! based!policy!decisions!are!relevant.!For!example,!English!language!training,!which!is!part!of!“other! education!services”,!is!potentially!more!prominent!that!and!needs!to!be!isolated!for!policy!purposes.!

It!is!important!to!define!the!Tertiary!Education!sector!in!subNsectors!and!subNdivisions!that!are!most! relevant!to!Barbados!that!capture!and!describe!the!majority!of!the!sector!itself!in!order!that!the!survey! increases!knowledge!of!precisely!what!the!education!sector!is!comprised!of.!Therefore,!for!the!purposes!of! this!survey,!the!following!classification!for!the!tertiary!education!sector!will!be!used:! Table&1:&Classification&of&Tertiary&Educations&Services&Sector&in&Barbados&

Sector - Tertiary Education

Higher Technical English Professional Other education Education Vocational Language Qualifications services (not

Education and Training elsewhere (ISIC ex 8530) (ISIC ex 8530) Training specified) sector

- (ISIC ex 8549) (ISIC ex 8530) (ISIC 8541, Sub 8542 and ex 8549)

Undergraduate40! Beauty41! English! Accounting42! Other! Language! Post!graduate! ICT! Nursing! Training! 43 training ! Research! Business!and! Management! Medical! Other!higher!

! education! Hospitality,! Other! tourism!and! professional! ! catering! training! divisions N Other!TVET! ! Sub

The!subNdivisions!selected!are!purposely!few!as!to!make!them!manageable!in!the!survey.!Since!there!are! few!subNdivisions,!they!have!been!carefully!selected!as!the!most!relevant,!with!economic!development! potential!in!Barbados.!Over!time,!addition!subNdivisions!could!be!added!as!relevant!(for!example!if!there! are!large!values!from!the!survey!in!a!category!that!is!defined!“other”!then!it!is!necessary!to!address!this!in! future!surveys).! !

40!Excludes!medical!and!nursing!qualifications!that!would!be!recognized!for!practice!nationally!or!internationally! 41!Excludes,!in!the!context!of!Barbados!training!in!massage!and!alternative!therapies!such!as!Reiki.!Although!strictly!speaking!these! would!fall!into!this!or!“other!education!services”!categories,!it!is!more!relevant!from!a!policy!perspective!to!include!it!in!any!survey! of!the!wellness!sector!as!any!policy!decision!to!promote!wellness!would!include!wellness!skills!and!training.! 42! This! would! not! include! degrees! but! would! comprise! professional! qualifications! such! as! Association! of! Chartered! Certified! Accountants!(ACCA)! 43!This!would!include!degrees!and!associate!degrees!required!for!international!or!national!registrations!

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7.2 Survey!Construction!

OVERALL!APPROACH!

A!survey!in!itself!does!not!produce!statistics!required!for!evidenced!based!policy!making.!A!survey!will! collect!data!on!a!specific!representative!group!of!service!provides!in!the!sector!and!its!subNsectors!and!sub! divisions!to!provide!an!indication,!of!the!characteristics!of!the!whole!sector.!Survey!data!will!then!be! collated.!Collation!of!the!data!collected!in!the!survey!will!be!of!two!types,!quantitative!and!qualitative.! Quantitative!data!will!be!entered!into!a!database!(can!be!a!spread!sheet)!for!processing.!All!data!that!is! either!numerical!or!Boolean!(yes/no!answers)!in!nature!can!be!aggregated!and!presented.!Qualitative!data! is!much!harder!to!process!and!has!to!be!reviewed!manually,!but!also!can!be!much!more!valuable.!For! example,!if!the!survey!has!missed!a!significant!sub!division!of!education!services!so!that!the!value!of! “other”!is!proportionally!high,!adding!supplementary!qualifier!questions!“please!specify”!would!assist!in! understanding!what!these!significant!other!education!services!were.!!

Moreover,!the!aggregate!quantitative!data!calculated!is!not!the!final!statistics!for!the!sector.!These! statistics!are!estimated!through!generalising!the!sample!aggregates!to!the!total!sector!(statistically!referred! to!as!generalising!sample!data!to!that!of!the!population)!and/or!calibration!of!data!(using!sample!date!to! calculate!impacts!and!then!generalising!to!the!sector).!These!methodologies!are!the!metrics!for!the!survey.!

Once!the!sector!statistics!have!been!estimated!and!verified,!a!profile!of!the!sector!will!be!prepared!to!both! increase!understanding!and!knowledge!of!the!sector!itself!(to!enable!better!development!of!investment! and!strategy!decisions!of!service!providers)!and!to!inform!policy!makers.!

It!is!important!that!the!sector!statistics!are!collected!annually.!This!will!enable!the!generation!of!time!series! data!and!trends!(which!are!as!important)!as!the!more!static!current!situation!data.!In!order!for!this!to!be! relevant,!consistency!in!the!questions,!collection!and!sample!participants!is!required.!This!is!not!to!say!that! improvements!should!not!be!introduced,!nor!additional!participants!to!replace!failed!providers!and!new! subNdivisions.!However,!these!should!be!introduced!slowly!over!time!in!order!to!avoid!large!discrepancies! in!sample!composition.!

METRICS!TO!BE!ESTIMATED!

In!order!to!prepare!a!useful!profile!of!the!sector,!a!number!of!metrics!will!be!used.!The!resulting!sector! statistics!will!be!determined!by!applying!appropriate!weights!and!assumptions,!some!calculated!themselves! from!other!sources!and!others!attributed!based!on!evidence).!!

Total!value!of!the!tertiary!education!sector!

This!will!include!all!turnover/expenditure!by!tertiary!education!providers!from!both!domestic!and!foreign! students,!as!well!as!the!indirect!benefits!derived!from!foreign!students;!that!is,!spending!in!the!wider! economy!(spending!in!the!wider!economy!by!domestic!students!is!not!regarded!as!additional!economic! benefit!as!arguably!they!would!spend!this!anyway).!This!calculated!by!the!sum!of!plus!sum!of!foreign! student!spending!in!the!economy!!

Ved!=!(Σvi!+!ΣI).f! Where!

Ved!is!the!total!value!of!tertiary!education!services!in!the!Barbados!economy!

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vi!is!the!turnover!of!each!education!institute!in!the!sample!denoted!i! I is the total indirect benefit (value) of foreign students to the Barbados economy f is the generalisation factor – that is the proportion of the service providers sampled to total sector (where all institutes are surveyed, this is 1)

Value!of!subNsector!and!subdivision!

The!value!of!each!subNsector!and!subdivision!of!tertiary!education!can!be!calculated!as!follows:!

Vj!=!(Σvij!+!ΣIj).f! where:

Vj!is!the!total!value!of!education!services!in!the!particular!subsector!or!subdivision!j! vij!is!the!turnover!of!each!subsector!or!subdivision!j!in!each!education!institute!in!the!sample!denoted!i! Ij is the total indirect benefit (value) of foreign students in!the!particular!subsector!or!subdivision!j f is the generalisation factor

Total!value!of!education!exports!!

Xed!=!(Σxi!+!ΣI).f! where:

Xed!is!the!total!value!of!tertiary!education!services!in!the!Barbados!economy! xi!is!the!turnover!of!each!education!institute!in!the!sample!denoted!i! I is the total indirect benefit (value) of foreign students to the Barbados economy f is the generalisation factor – that is the proportion of the service providers sampled to total sector (where all institutes are surveyed, this is 1)

Value!of!subNsector!and!subdivision!exports!

The!value!of!each!subNsector!and!subdivision!of!tertiary!education!can!be!calculated!as!follows:!

Xj!=!(Σxij!+!ΣIj).f! where:

Xj!is!the!total!value!of!education!services!exports!in!the!particular!subsector!or!subdivision!j! xij!is!the!exports!of!each!subsector!or!subdivision!j!in!each!education!institute!in!the!sample!denoted!i! Ij is the total indirect benefit (value) of foreign students in!the!particular!subsector!or!subdivision!j f is the generalisation factor

l!=!Nj!x!avg!spend!

where:

I is the indirect value of foreign students spending in the wider economy in each subsector or subdivision Nj is the number of foreign students in each subsector or subdivision j Avg spend is the estimated average spending each foreign student spends in the economy. This can be based on evidence from other sources or from specific separate surveys of foreign students (by subdivision)

Direct!Indicators!!

Other!statistics!that!can!be!derived!directly!from!the!sample!data!for!the!sector,!subsector!or!subdivision! could!include,!amongst!others:!

! Number!of!institutions! ! Size!of!institutions! ! Number!of!employees! ! Category!of!employees!(academic,!administrative!etc)!!

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! Number!of!students! ! Number!of!foreign!students!!

YΣj,j!=!Σyij.f! where:

Y!Σj,j!is!the!education!services!indicator!for!the!total!sector,!Σj!and!the!particular!subsector!or!subdivision!j! yij!is!the!indicator!for!each!subsector!or!subdivision!j!in!each!education!institute!in!the!sample!denoted!i! f is the generalisation factor

Time!Series!

Assuming!that!the!survey!is!undertaken!periodically!(for!example,!on!an!annual!basis)!and!that!the!sample! and!questionnaire!remain!consistent!and!relatively!stable,!then!a!time!series!database!of!statistics!will!be! generated.!This!will!enable,!new!statistics!on!growth!to!be!generated!for!each!indicator.!

Gyt!=!(YtXYtX1)/!Yt! where:

Gyt!is!the!growth!rate!of!the!education!services!indicator!! Yt!is!the!indicator!the!current!time!period!t!

Yt-1 is the indicator for the previous time period t-1

POPULATION!DATA!

A!critical!part!of!the!process!is!the!preNsurvey!research!to!ensure!that!there!is!a!good!understanding!of!the! total!sector.!If!the!sample!does!not!reflect!the!structure!of!the!actual!sector,!then!it!will!already!be!bias!and! less!accurate.!Ideally,!this!would!include!an!estimated!value!of!the!sector,!number!of!institutions!operating! by!subNsector!and!concentration!of!the!sector!(number!and!size!of!institutions!accounting!for!market! share).!By!virtue!of!the!fact!that!data!is!not!readily!available,!this!will!be!based!on!“best!guess”!estimates.!

Task!1:!Database!of!services!providers!

The!first!task!is!to!create!a!database!of!the!entire!sector!in!Barbados!listing!the!institution,!subNsectors! (noting!some!will!be!multiNsectoral),!contact!details,!whether!public!or!private!and!turnover/expenditure.! Once!established,!this!database!will!need!to!be!updated!periodically!noting!those!new!entrants!to!the! sector,!as!well!as!those!leaving!the!sector.! & &

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Table&2:&Database&template&

Name!of! Contact!Details!! Ownership! SubOsector!of! Turnover! Institution! Activities! (Expenditure)! ! B$!m! !

A! B! C! D! E! F! G! H! I! J! K! L! M! N! ! ! ! Web! ! Address! Tel! Fax! email! Public! Private! !

address! ! ! Higher!Education TVET ELT Professional! Qualifications Other!education! services!(nes)

1.! ! ! ! ! ! ! ! ! ! ! ! ! ! 2.! ! ! ! ! ! ! ! ! ! ! ! ! ! 3.! ! ! ! ! ! ! ! ! ! ! ! ! !

Potential!sources!of!information!on!name,!contact!details!and!ownership:!

1. TVET!council! 2. Accreditation!council! 3. City!and!Guilds! 4. Yellow!pages! 5. Internet!Search! 6. The!Ministry!of!Education,!Youth!Affairs!&!Culture!! 7. Ministry!of!Labour! 8. Corporate!Affairs!Department! 9. Educational!Support!Unit!

Potential!sources!of!information!on!activities:!

1. TVET!council! 2. Accreditation!council! 3. City!and!Guilds! 4. Yellow!pages! 5. Internet!Search! 6. Educational!Support!Unit! 7. Contact!with!institutions!

Potential!sources!of!information!on!turnover/expenditure!

1. The!Ministry!of!Education,!Youth!Affairs!&!Culture! 2. Corporate!Affairs! 3. Ministry!of!Education! 4. Ministry!of!Labour! 5. VAT!Office! 6. Revenue!Office! 7. Contact!with!institutions!

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Task!2:!Analysis!of!database!

Based!on!the!sector!database,!it!will!be!possible!to!estimate!the!overall!structure!of!the!tertiary!education! sector!in!Barbados:!

! Estimated!total!revenue!of!tertiary!education!institutions,!ΣN! ! %!of!sector!public!(that!%!of!estimated!sector!revenue!generated!by!the!public!sector),!ΣG/ΣN! ! %!of!sector!private!(that!%!of!estimated!sector!revenue!generated!by!the!private!sector),!ΣH/ΣN! ! %!of!sector!revenue!by!subNsector! o %!Higher!Ed.,!ΣI/ΣN!! o %!TVET,!ΣJ/ΣN! o %!ELT,!ΣK/ΣN! ! o %Professional!Ed.,!ΣL/ΣN! ! o %!Other,!ΣM/ΣN! ! Concentration!of!sector!in!large,!medium!and!small!institutions! o %!Large!(that!is!turnover!>!B$!10m),!ΣNN≥10m/ΣN! o %!Medium!(that!is!turnover!between!B$!1!and!10m),!ΣNN!≥1m,!N≤10m/ΣN! o %!Small!(that!is!turnover!less!than!B$!1m),!ΣNN≤1m/ΣN!

Task!3:!Verification!

The!overall!structure!of!the!sector!will!be!based!on!the!database!information!collected.!The!quality!of!this! will!be!based!on!the!degree!of!rigour!and!how!comprehensive!the!database!is!compared!to!the!sector!in! reality.!To!verify!that!the!analysis!reflects!reality,!discussions!of!the!structure!estimated!will!be!undertaken! with!key!persons!in!the!sector.!Where!there!are!potential!discrepancies,!further!research!and! improvements!to!the!database!should!be!made.!

Task!4:!Sample!Definition!!

The!final!stage!of!the!preNsurvey!research!is!to!define!the!sample.!This!is!a!process!of!selection!of! participants:!

! the!sample!size!should!be!as!large!as!possible!(the!larger,!the!more!accurate)!but!has!to!be!within! resource!limits!and!undertaken!within!a!comparable!and!relatively!short!time!window!(eg! maximum!3!months)! ! the!sample!must!reflect!accurately!the!structure!of!the!sector!estimated,!therefore,!the!metrics!of! the!sample!should!be!calculated!and!compared!with!the!population!(that!is!the!whole!sector)! ! the!potential!participants!should!be!contacted!to!gain!agreement!to!participant!prior!to!the!survey! –!where!there!are!refusals,!alternatives!should!be!selected!to!maintain!the!structure!comparisons! of!the!sample!–!for!best!results!(agreement!to!participate),!working!through!associations!and/or! direct!telephone!conversation!is!preferable!to!a!simple!letter.!

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7.3 Survey!Techniques!

OVERVIEW!

A!sector!survey!is!not!complex,!but!it!has!many!challenges!and!difficulties!that!can!introduce!bias!into!the! process!and!lead!to!inaccuracies!in!the!results.!These!have!to!be!managed.!The!solution!is!simple!in!that!a! well!organised,!managed!and!systematic!(and!sometimes!dogmatic)!approach!to!the!survey!is!required.! However,!it!is!important!to!remember!that!the!information!provided!by!participants!is!often!regarded!as! sensitive,!and!is!given!on!a!voluntary!basis.!This!means!participants!do!not!have!to!respond,!respond! accurately!or!even!engage!with!the!process!at!all;!the!survey!therefore,!relies!on!good!will.!

To!be!successful,!the!survey!should!be!treated!as!a!marketing!exercise:!information!is!being!sought!from! participants!to!generate!a!sector!profile!and!they!are!buying!it!with!their!own!information.!Therefore,!the! survey!must!be!“sold”!to!them!N!selling!the!benefits.!The!benefits!will!include!evidence!based!policy!making! by!government;!ammunition!for!BCSI,!institutions!and!associations!to!lobby!government!and;!information! upon!which,!institutions!can!based!business!development!plans.!Therefore,!access!to!this!information!for! participation!(free!if!profiles!are!sold,!or!early!access!if!not)!could!be!a!lead!into!cooperation.!Above!all,!it!is! in!the!interest!of!the!participants!to!cooperate.!

METHODOLOGY!

Once!you!have!selected!the!sample!from!the!sector!database,!the!options!for!conducting!the!survey!fall! into!two!categories:!an!active!survey!or!passive!survey.!The!active!survey!involves!initial!contact!to!alert!the! participant!of!the!kind!of!information!that!will!be!required,!followed!by!the!researcher!completing!the! questionnaire!in!person.!The!passive!survey!relies!on!distribution!of!the!questionnaire!to!participants!to! complete!themselves.!The!advantage!of!an!active!survey!is!that!the!researcher!controls!the!timing!and! accuracy!of!responses!as!these!are!completed!by!the!researcher!rather!than!participant.!The!passive! approach!usually!leads!to!a!greater!number!of!“nonNresponses”!even!with!prior!agreement!to!participate.! In!addition,!the!accuracy!of!responses!is!sometimes!questionable!and!can!lead!to!false!answers!and!bias! data!(for!example,!if!participants!do!not!understand!the!meaning!of!a!particular!question,!during!an!active! survey!the!researcher!can!explain!exactly!what!is!meant!and!required!whereas!during!a!passive!survey,!the! participants!either!ignore!this!question!or!fill!in!inaccurate!information.!!

The!active!survey!is!obviously!the!preferred!approach!but!there!are!higher!costs,!timing!and!resources! required.!The!passive!approach!is!much!cheaper,!but!much!higher!risk!of!low!response!making!the!survey! results!less!accurate!and!sometimes!statistically!insignificant!(unusable).!A!third!approach!would!be!a! hybrid!approach!where!the!questionnaire!is!distributed!first,!with!a!specific!time!period!for!response.!After! this!response!time,!follow!up!in!person!can!be!undertaken!to!complete!questionnaires!of!nonNresponders! from!the!sample.!The!hybrid!approach!improves!response!rates!but!does!not!address!accuracy.!

Task!1:!Decide!on!survey!delivery!method!

Depending!on!the!resources!available,!and!any!time!constraints!and!survey!deadlines,!the!appropriate! survey!approach!needs!to!be!selected:!active!survey;!passive!survey!or:!hybrid!survey.!Wherever!possible,! the!active!survey!approach!should!be!selected!(especially!if!the!survey!is!new!and/or!for!new!participants! into!the!survey!in!future!years).!This!is!especially!important!in!the!first!year!of!the!survey!to!ensure! participants!fully!understand!the!questions.!In!subsequent!years,!with!a!consistent!sample!base,!the!survey!

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could!move!towards!a!hybrid!approach!and!ultimately!a!passive!approach!with!only!active!involvement! with!new!participants!into!the!sample.!

Task!2:!Survey!Methodology!

Whichever!approach!is!selected,!a!number!of!options!remain!for!undertaking!the!actual!survey!in!two! phases:!

Active Survey Passive Survey Hybrid Survey

Phase 1: Initial contact to pre warn Distribution of the questionnaire Distribution of the questionnaire Distribution participants of the type of directly to the sample participants directly to the sample participants questions to be asked to enable through: through: them to prepare: a covering letter • Post! • Post! with either a list of questions, or • Email! • Email! • OnNline!! • OnNline!! the actual questionnaire could be • Text! • Text! distributed in advance by one of the following methods: • Post! • Email! • Webpage!reference!

Phase 2: Completion of the questionnaire by Reminders sent to non-responders Completion of the questionnaire by Follow-up the researcher through direct through: the researcher with non- contact with participants through: responsive participants through: • Post! • Telephone! • Email! • Telephone! • InNperson! • Text! • InNperson! • Telephone!

Note: technological options such as web surveys and text surveys look attractive and often seem the easiest option. However, in most countries, these options attract the lowest response rates.

SURVEY!CHALLENGES!

The!following!highlights!a!number!of!challenges!researchers!will!face!in!undertaking!the!survey.!These!are! highlighted!so!that!they!can!be!anticipated,!mitigated!and!avoided.!

Issues!with!Participants!

8. Willingness.!Willingness!to!participate!in!the!survey!beyond!the!initial!agreement!is!often!a!challenge.! These!are!businesses!(even!if!its!public!sector,!they!are!in!the!business!of!teaching)!and!therefore!the! survey!is!an!extra!task!and!once!the!extent!of!the!survey!data!required!is!understood,!participants!may! be! reluctant! to! actually! respond.! Enthusiastic! and! persuasive! determination! is! the! key! skill! of! the! researcher.! 9. !Truthfulness.!The!accuracy!of!the!survey!depends!upon!participants!providing!accurate!and!truthful! information! in! the! survey.! However,! there! are! many! motivations! for! participants! to! be! less! than! truthful!in!their!responses.!This!can!be!both!deliberate!and!pragmatic.!For!example,!participants!may! fear!that!information!will!be!past!on!to!tax!authorities!to!be!used!for!investigations!of!their!business.! This!can!be!addressed!through!building!relationships!and!trust!(and!through!confidentiality!agreements! –!see!below).!In!other!cases,!the!data!requested!may!not!be!readily!available!in!the!format!required.! For! example,! if! export! and! domestic! sales! are! not! differentiated! in! accounts,! a! laborious! manual! calculation!may!be!required.!This!can!be!addressed!through!persuasion.!In!extreme!cases,!businesses! may!even!want!to!purposely!distort!the!figures!for!the!sector!for!“market!position”!reasons.!

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10. !Understanding.!The!participants!understanding!of!the!questions!can!affect!and!bias!the!results.!This! may!be!due!to!the!use!of!ambiguous!language!or!use!of!jargon!(for!example!talking!to!services!modes! of!delivery!by!number!mode!1,!mode!2!etc!will!be!meaningless!to!most!services!providers!although! quite!obvious!to!researchers).!This!is!best!addressed!through!clarity!of!questions!in!the!questionnaire,! extent!of!explanation!on!the!questionnaire!or!in!an!accompanying!leaflet!and/or!guidance!provided!by! the!researcher!in!person!

Researcher!Issues!

1. Consistency.! It! is! important! that! researchers! pay! particular! attention! in! both! completing! the! questionnaires,! and! in! analysing! them,! to! timeframes! ensuring! answers! to! questions! relate! to! specific!timeframes!for!example!calendar!years,!not!financial!year!of!the!company.!Similarly,!clarity! on!the!currencies!used!is!important,!especially!when!talking!about!exports!(that!is!B$!not!US$).!! 2. Public! sector.! Public! sector! institutions! are! not! usually! business! orientated! and! will! need! coaxing! to! understand! and! adapt! the! questions! to! their! situation.! For! example,! where! a! business! will! clearly! understand! turnover,! a! public! institution! may! say! it! does! not! have! turnover.! In! this! case! total! expenditure!of!the!institution!is,!in!effect,!its!turnover.! 3. MultiNdisciplined!businesses.!Many!institutions!will!provide!services!in!a!number!of!services!subNsectors! and! subNdivisions.! Regardless! of! whether! or! not! they! perceive! themselves! as! operating! in! several! sectors!or!not.!For!the!purposes!of!this!survey!it!is!important!that!careful!distinction!by!subNcategory!is! observed!(especially!for!the!larger!public!bodies!who!offer!a!range!of!courses).! 4. Mixed!service!providers.!Care!also!needs!to!be!taken!over!the!distinction!between!the!services!we!are! examining!and!other!activities!of!the!business.!In!some!sectors,!this!can!include!production!or!services,! especially!in!the!private!sector.!For!example,!a!training!institute!providing!training!in!production,!may! also!produce!and!sell!the!product!too.!A!beauty!training!centre!may!offer!treatments!as!well.!In!both! these!cases,!we!want!to!isolate!data!on!revenue,!employment!etc!from!the!“training!and!education”! aspects!of!businesses!and!care!must!be!taken!in!accurate!attribution!of!this!component.!

Confidentiality!Concerns!

1. Data!protection!and!storage.!Surveys!collect!commercially!sensitive!data!on!individual!businesses.! Although! the! published! results! and! findings! do! not! relate! to! any! specific! entity,! the! process! to! obtain! sector! summaries! involve! the! analysis! and! storage! of! individual! entities! information.! For! credibility! and! reputation! of! BSCI,! and! confidence! of! participants,! the! data! collected! must! be! adequately!protected.!A!secure!system!of!data!protection!and!storage!is!required.!

! At!each!site!where!survey!information!is!processed!or!maintained,!all!confidential! records!that!will!permit!identification!of!individuals!shall!be!kept!in!a!locked!room! when!not!in!use!or!personally!attended!by!BCSI!staff.!! ! When!confidential!records!are!not!locked,!admittance!to!the!room!or!area!in!which! they!reside!shall!be!restricted!to!staff!sworn!to!confidentiality!on!this!survey.! ! All!electronic!data!shall!be!maintained!in!secure!and!protected!data!files,!and! personally!identifying!information!shall!be!maintained!on!separate!files!from! statistical!data!collected.!All!data!files!on!network!or!multiNuser!systems!shall!be! under!strict!control!of!a!database!manager!with!access!restricted!to!BCSI!staff!sworn! to!confidentiality,!and!then!only!on!a!needNtoNknow!basis.!! ! All!data!files!on!singleNuser!computers!shall!be!password!protected!and!all!such! machines!will!be!locked!and!maintained!in!a!locked!room!when!not!attended!by!BCSI! staff!sworn!to!confidentiality.!! ! External!electronically!stored!data!files!shall!be!maintained!in!a!locked!storage!device! in!a!locked!room!when!not!attended!by!BCSI!staff!sworn!to!confidentiality.!!

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! Any!data!released!to!the!general!public!shall!be!appropriately!masked!such!that! linkages!to!individually!identifying!information!are!not!possible!and!individual! identification!cannot!be!disclosed.!! ! Data!or!copies!of!data!may!not!leave!the!authorised!site!for!any!reason.!

2. Confidentiality!Agreements.!Confidentiality!in!data!surveys!may!be!required!by!participants.!This!can!be! addressed! in! three! ways,! either! a! statement! on! the! questionnaire,! a! letter! from! BSCI! assuring! confidentiality!or!a!formal!legal!agreement.!

QUALITY!CONTROL! 1. Responsibility.!Consistency!and!control!of!the!whole!process!is!key!to!success!in!such!a!survey.! Therefore,!for!each!survey!undertaken,!it!is!recommended!that!a!single!person!at!BCSI!be!assigned! overall!responsibility!for!the!supervision!of!population!data,!sample!selection,!survey,!analysis!and! preparation!of!the!resulting!sector!survey.!This!is!not!to!say!this!person!should!do!all!the!tasks,!but! should!be!closely!involved!and!understand!each!step.!! 2. Randomised!checking.!Another!technique!that!should!be!employed!to!ensure!quality!control!is! randomised!checking!of!survey!research!data.!For!10%!or!the!sample,!a!few!selected!questions! from!the!survey!can!be!checked!by!a!nonNresearcher!to!ensure!accuracy!of!the!completion!of!the! questionnaires.!Where!discrepancies!are!identified!remedial!actions!to!check!batches!of! questionnaires!and/or!the!methodology!(if!passive!approach!taken!for!example)!should!be!put!in! place.! 3. Benchmark!Comparison.!Once!the!generalisation!of!the!sample!data!to!sector!has!been!completed,! this!should!be!checked!versus!benchmark!data,!for!example!for!exports,!if!balance!of!payments! data!for!export!of!services!including!education,!is!less!than!the!estimate!of!education!exports!from! the!survey,!then!it!could!indicate!an!issue.!The!results!should!also!be!discussed!with!industry! experts!to!gauge!opinion!on!the!accuracy.! !

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7.4 Survey!Questions!

OVERVIEW!

The!survey!questions!are!aimed!primarily!at!collecting!data!on!the!metrics!but!other!elements!are!equally! important!in!informing!policy!making!and!promoting!related!to!the!sector.!These!may!include:!constraints! to!business!development!(domestic!and!international);!marketing!success!(what!works!domestically!and! export)!and!case!studies!(success!stories!are!vital!for!illustrating!the!potential!of!the!sector).!

CONTENT!

PART!I:!Basic!Data! 1.!Age!of!the!business?! 2.!Turnover!of!the!business,!of!which!the!percentage!which!relates!specifically!to!education!services?! 3.!Income!from!education!services!by!sub!sector!and!sub!division?! 4.!Accreditation!of!courses!and!recognition!of!courses!internationally?! 5.!Total!employment?! 6.!Staff!qualifications?! 7.!Average!duration!of!study?! 8.!Do!you!currently!have!foreign!students?! ! PART!II:!Exports! 9.!Number!of!Foreign!Students?! 10.!Fee!Income!from!Foreign!Students?! 11.!Origin!of!foreign!students?! 12.!Number!of!foreign!students!by!subNsector?! 13.!Mode!of!delivery!of!education!to!foreign!students?! ! PART!III:!Regulations!and!Constraints!! 14.!National!Constraints!that!limit!business!development?! 15.!Constraints!in!foreign!markets?! ! PART!IV:!Export/Marketing!Experience! 16.!Existence!of!export!marketing!plan?! ! ! ! ! ! ! 17.!Size!of!marketing!budget?! ! 18.!Previous!Marketing!Experience?! ! ! ! ! ! 19.!Marketing!Materials!for!foreign!students?! ! ! ! ! ! 20.!Marketing!and!sales!team?! ! ! ! ! ! ! ! 21.!Current!marketing!Activities?! ! CASE!STUDY!–!SUCCESS!STORY! !

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8 Services(Sector(Development!Strategy!

The!following!Chapter!outlines!the!Services!Sector!Development!Strategy,!its!overall!aims!and!components.! This!chapter!should!be!used!as!the!Strategy!Document!which!is!short!and!easy!to!read!and!can!be!used!to! guide!the!actions!and!implementation.!

8.1 Overall!Objectives!

Barbados!has!limited!resources.!This!includes!“services”!resources!with!the!main!factor!of!production!being! the!pool!of!available!labour.!Therefore,!growth!in!services!will!be!limited!by!this!pool.!Therefore,!any! strategy!for!the!development!of!the!services!sector!must!fully!utilise!the!existing!labour!force!and!then!aim! for!high!value!added!sectors!as!a!way!of!increasing!the!services!growth!with!a!small!fixed!labour!force.! Therefore,!the!overall!objective!of!the!Barbados!National!Services!Strategy!will!be:!

“…!to!create!an!environment!in!Barbados!that!ensures!the!development!and! sustained!growth!of!a!high!quality,!high!grade!and!high!value!services!sector!…”!

If!Barbados!is!able!to!create!such!an!environment,!its!services!sector!will!not!only!grow,!but!create!more! jobs!with!higher!wages!(better!jobs!and!opportunities!in!line!with!the!level!of!education!of!its!citizens).!!

To!measure!whether!or!not!the!correct!environment!for!quality!high!value!services!is!a!reality,!the!strategy! needs!to!target!a!single!indicator.!There!is!not!a!suitable!indicator!to!measure!the!“conducive!environment! for!services”!so!a!close!proxy!would!be!the!value!added!per!worker!of!services.!The!higher!quality!and!high! value!services!being!provided!would!lead!to!an!increase!in!overall!“value”!that!services!workers!add.! Therefore,!services!value!added!per!services!employee!in!the!economy!will!provide!a!proxy:!

“….!to!increase!average!value!added!of!each!services!employee!in!Barbados!to!40%! per!employee!per!annum!by!2020...”!

! in!the!latest!figures,!each!employee!in!the!services!sector!generates!net!US$!18,376!(2009)!to! overall!GDP44.!Increasing!average!value!added!per!employee!by!40%!would!equate!to!US$!26,000.!! ! the!target!represents!a!little!over!5%!growth!per!annum!(average!for!5!years)! ! This!target!should!also!be!adjusted!for!inflation!and!a!monitoring!mechanism!should!be!put!in!place! to!track!this!absolute!figure.!For!example,!5%!average!inflation!over!five!years!would!result!in!an! end!target!of!US$!33,000!average!value!per!services!worker!!

By!targeting!value!added!by!services!employee,!it!will!not!only!ensure!growth!of!services!and!GDP,!but! growth!from!the!“right”!kind!of!services!jobs!(higher!quality,!grade!and!value).45!

44!This!compares!with!value!added!per!worker!in!agriculture!in!Barbados!of!US$!15,621! 45!Growth!in!lower!value!services!could!increase!services!contribution!to!the!economy!but!the!target,!especially!given!the!relative! small!resource!base!(small!pool!of!employees),!growth!must!necessarily!come!from!higher!value!services.!

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Increasing!the!quality!and!value!of!services!provided!by!existing!workers!will!raise!the!value!added!and! overall!value!of!services!in!the!economy,!as!well!as!GDP.!If!this!is!then!combined!with!a!growth!in!those! employed!in!the!services!sector,!further!growth!in!the!value!of!services!will!be!gained.!!

As!a!result!of!meeting!this!target,!a!number!of!economic!indicators!will!be!improved:!

! A!rise!in!contribution!of!services!to!the!economy!(services!share!in!GDP)!resulting!from!new! services!sectors!being!developed,!growth!in!existing!services!and!increase!in!the!value!of!services! provided!(moving!up!the!value!chain);! ! Increase!in!services!exports!(contribution!to!GDP,!growth!rates)!as!Barbados!becomes!more! competitive!in!services;! ! Increase!in!services!employment,!combined!with!higher!average!wages!in!the!services!sector!and! higher!value!services!sector!develop;! ! A!rise!in!GDP!and!GDP!growth.! ! If!the!nominal!target!is!achieved!without!any!increase!in!employment!in!the!services!sector,!this! would!add!US$!800!million!to!the!economy.!Increasing!employment!in!the!services!sector!by!10,000! would!further!contribute!an!additional!US$!250!million.!!

8.2 Key!aims!of!the!strategy!

The!key!aims!of!the!strategy!will!focus!on!improving!the!services!environment!in!Barbados!and!will!feature! horizontally!throughout!the!strategy!are:!

…!focus!on!strategic!aims!that!will!feature!throughout!the!strategy! ! ! O!improving!understanding!of!the!services!sector!(research!and!analysis!to! enable!policy!development!and!strategy!implementation!decisions!to!be!based!on! evidence)!

! O!maximising!the!available!resource!base!in!support!of!services!(this!includes! the!required!infrastructure!–!ICT!O!but!more!importantly,!ensuring!the!availability!of! appropriately!qualified!and!skilled!people!for!the!services!sector)!

! O!ensuring!open!and!competitive!services!sectors!(competitive!domestic! markets!lead!to!more!efficient!and!innovative!services!sector,!able!to!compete! nationally,!and!more!importantly!for!long!term!growth,!exports)!!

! O!encouraging!domestic!consumption!of!quality!services!(increased! appreciation!of!the!value!of!services!and!efficiency!gains)!….!!

These!aims!will!be!addressed!through!three!strategic!components:!

1) Services Sector Development

2) Services Upgrading

3) Service Sector Branding

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8.3 Services!Sector!Development!

OVERALL!AIM!

This!part!of!the!strategy!will!address!the!more!generic!elements!of!the!strategy!which!will!aim!to!improve! the!environment!within!which!services!can!thrive.!It!will!also!address!the!change!in!national!mindNset!and! recognition!of!services!as!an!important!component!of!the!economy.!!

Therefore:!

“…!the!overall!strategy!!will!aim!to!place!services!at!the!forefront!of!the!national! agenda!in!Barbados!and!create!a!service!oriented!culture!and!economy!where!high! value!services!thrive!…”!

If!services!become!more!prominent!in!the!economy!and!the!mindNset!of!politicians,!government,!business! and!wider!society!focus!on!services,!then!services!(excluding!mainstream!tourism)!will!increase.!Therefore,! the!target!for!this!component!of!the!strategy!would!be!to!increase!the!share!of!nonNtourism!services!as!a! percentage!of!GDP.!NonNtourism!services!are!currently!48%!of!GDP.!The!target!for!this!component!of!the! strategy!will!be:!!

“…!to!increase!nonOtourism!services!as!a!percentage!to!over!60%!of!GDP!…”!

This!target!would!represent!an!average!relative!growth!in!services!of!5%!more!than!agriculture,! mainstream!tourism!and!industry.!In!order!to!achieve!this!target,!a!number!of!strategies!are!needed!to:!

1) Valorise!services!throughout!the!economy:!strategies!that!show!the!benefit!to!the! economy,!the!business!potential!and!the!personal!opportunities!within!the!services! sector!to!encourage!a!coordinated!commitment!to!developing!services!in!a!serious! way! 2) Create!a!competitive!services!environment:!activities!to!ensure!the!domestic!and! international!environment!within!which!service!providers!operate!is!conducive!to! ensuring!all!services!in!Barbados!are!delivered!efficiently!and!competitively! 3) Ensure!Services!are!Delivered!as!a!Business:!encouraging!the!growth!and! development!of!services!businesses!that!are!able!to!compete!globally!and!run! professionally!to!make!profits!! 4) Provide!a!Pool!of!Appropriate!Human!Resources!for!High!Value!Services:!the! principal!factor!of!production!in!the!services!sector!is!human!resource.!This!is!limited!

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in!Barbados!due!to!the!relatively!small!size!of!the!country!and!so!the!existing!pool! must!be!maximised!to!enable!future!growth!and!development!of!the!services!sector!

STRATEGY!1.1!VALORISE!SERVICES!THROUGHOUT!THE!ECONOMY!

Overall!Approach!

There!is!limited!appreciation!throughout!the!country!of!the!value,!importance!and!costs!of!services!in!terms! of!not!only!the!contribution!to!the!economy,!but!consumption.!Therefore!activities!that!show!the!benefit!to! the!economy,!the!business!potential!and!the!personal!opportunities!within!the!services!sector!will!be! undertaken!to!encourage!a!coordinated!commitment!to!developing!services!in!a!serious!way.!With!an! increased!profile,!services!activities!will!increase.!To!improve!the!valorisation!of!services!through!activities! that!aim!to:!

• Improve!research!and!analysis!on!services:!to!ensure!informed!evidence!based! discussions!! • Raise!the!profile!of!services!nationally:!to!demonstrate!the!opportunities!and! possibilities!to!encourage!greater!participation!in!the!services!sector! • Redress!the!free!services!culture:!to!ensure!a!wider!appreciation!of!the!value!of! services!in!the!economy!

Improve!research!and!analysis!on!services!

RATIONALE!

There!is!little!known!about!the!size!and!extent!of!individual!services!in!the!economy.!OnNgoing!collection!of! basic!data!is!required!to!make!informed!decisions.!This!will!also!be!required!so!that!Barbados!can!establish! itself!as!a!services!leader!and!maintain!that!position.!!

ACTIONS! 1. Establishment!of!comprehensive!statistical!system:!for!the!collection!(including!surveys)!and! analysis!of!services!information.!This!would!include!publication!and!widespread!dissemination! of!this!database!by!use!by!others.!It!is!not!necessary!that!these!surveys!are!undertaken!only!by! public!sector!entities,!nor!exclusively!by!one!entity.!However,!the!methodological!basis!should! be!consistent.! 2. Establishment!of!research!centres!for!services:!it!is!important!that!more!than!one!centre!for! research!is!established!in!Barbados!to!ensure!a!broad!range!of!opinions,!innovation!and! recommendations!on!developing!the!services!sector!nationally.!These!could!include!a!research! centre!in!UWI,!BCSI,!government!agency!and!private!sector!organisations.! 3. Sensitisation!of!services!providers!to!need!and!use!of!statistics:!an!awareness!campaign!to! encourage!service!providers!to!be!more!open!and!cooperate!in!the!provision!of!services! statistics.!This!will!be!achieved!through!increasing!the!understanding!of!how!they!will!be!used,! the!benefits!to!the!sector!and!the!protection!of!identity!of!those!providing!them.!

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Raise!the!profile!of!services!nationally!

RATIONALE!

To!raise!the!national!profile!of!services!in!Barbados,!putting!services!on!the!national!agenda!of!policy! makers,!business,!support!institutions!and!wider!society.!!

ACTIONS! 1. Develop!a!series!of!media!promotion,!national!seminars,!conferences!and!workshops:!on! services!to!detail!the!current!services!trade!and!recent!trends,!discuss!problems/issues!which! need!to!be!addressed!and!make!recommendations!to!government!on!future!policy!direction.! Target!groups!would!include!business,!wide!society!and!communities!(including!church! organisations)!and!schools.! 2. Ensure!that!services!exports!and!delivery!form!part!of!education!courses:!!This!would!include! services!in!business,!finance!and!management!so!that!new!and!future!entrepreneurs!and! professionals!understand!services!and!also!the!inclusion!of!business,!as!part!of!services!related! courses!such!as!ICT.!In!order!to!achieve!this,!stakeholders!should!discuss!and!review!course! contents!with!academics!and!professional!training!bodies.! 3. Media!and!press!exposure:!Formulate!a!national!media!campaign!that!continuously! communicates!the!services!development!message!and!tailors!that!message!to!different! audiences!such!as!schools,!workplaces,!nonNgovernmental!organisations!and!communityNbased! organisations.!

Redress!the!free!services!culture!

RATIONALE!

The!majority!of!services!in!Barbados!are!seen!as!free,!whether!these!are!public!services!such!as!education,! health!or!business!support!services.!This!has!a!number!of!unintended!consequences!including!a!culture!of! “right”!to!these!services!(undervaluing!them)!and!high!levels!of!consumption!(since!its!free,!more!people! than!needed!consume!them!stretching!resources!and!lowering!quality).!Through!explaining!the!costs!to! consumers!of!services,!more!appreciation!and!efficient!use!of!these!services!will!result.!

ACTIONS! 1. Systematic!costing!of!services!throughout!the!country:!Government!and!private!sector!institutions! should!costs!all!services!that!it!provides!and!“bill”!consumers,!regardless!of!whether! government/private!sector!policy!is!to!actually!charge!for!these!services.!For!example,!government! services!that!are!free!should!always!state!the!real!cost!(eg!medical!service)!so!consumers!can! appreciate!the!cost!of!the!service!they!have!received.!Even!within!the!private!sector,!in!for!example! business!associations,!volunteers!provide!executive!services.!These!need!to!be!costed!to!develop!a! real!cost!of!association!membership,!even!if!a!lower!actual!membership!to!charged.! 2. Gradual!introduction!of!service!charging!in!business!services:!Following!the!introduction!of!costings! for!business!development!services,!the!principle!of!payment!for!such!services!should!be!gradually! introduced!in!order!to!filter!for!those!that!really!need!and!want!it.!This!should!be!introduced! gradually!over!time!and!subsidies/discounts!offered!for!developmental!purposes!for!new!sectors,! small!business!etc.!Payment!of!public!business!development!services!will!lead!to!more!effective! allocation!of!resources!and!also!enable!emergence!of!private!sector!competition!in!this!field.!

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STRATEGY!1.2!CREATE!A!COMPETITIVE!SERVICES!ENVIRONMENT!

Overall!Approach!

If!services!are!to!drive!the!economy!in!a!sustained!way!over!the!long!terms,!then!there!needs!to!be!a! competitive!environment!within!Barbados!that!promotes!efficiency!in!delivery!of!services,!as!well!as! innovation!and!excellence.!Therefore,!activities!that!create,!promote!and!open!competition!are!necessary!if! Barbados!is!to!become!a!global!“brand”!in!delivery!of!high!value!services!(Barbados!will!never!be!a!large! share!of!the!global!market!but!can!gain!an!international!reputation!that!means!that!it!attracts!customers! and!investment!from!throughout!the!world).!To!achieve!this,!activities!aimed!at:!

• Opening!all!services!markets:!ensuring!that!all!services!sectors!are!open!to!the! global!economy!! • Encouraging!development!of!sizable!firms:!encouraging!growth!and!cooperation! amongst!firms!that!enable!them!to!export!globally! • Outsourcing!services:!improving!efficiency!of!government!and!private!sector! through!increasing!outsourcing!of!services!

Opening!all!services!markets!

RATIONALE!

Barbados!cannot!be!expected!to!gain!an!international!reputation!for!delivery!of!competitive,!quality!and! high!value!services!if!it!restricts!access!to!certain!sectors.!Moreover,!firms!in!these!sectors!should!not!shy! away!from!international!competition!if!they!are!to!ultimately!aim!to!flourish!grow!and!export.!Moreover,! international!competition!will!raise!the!quality!and!value!of!these!services.!!

ACTIONS! 1. Opening!of!markets!in!all!services!sectors:!Barbados!should!open!up!its!services!markets!to!imports! from!around!the!world.!This!should!include!both!market!access!and!national!treatment!across!all! modes!of!supply.!This!could!start!with!existing!agreements!such!as!CSME!(Caribbean!Single!Market! and!Economy)!but!also!extend!to!GATS!(WTO!General!Agreement!on!Trade!in!Services)!schedules! but!ultimately,!a!unilateral!approach!should!be!taken.!Whilst!opening!up!sectors!that!are!currently! restricted,!appropriate!legal!and!regulatory!framework!should!be!in!place,!as!well!as!support!to!the! development!of!national!services!providers!to!face!greater!competition.!

Encouraging!development!of!export!ready!firms!

RATIONALE!

The!number!of!firms!in!the!services!sector!that!are!of!a!size!to!be!capable!of!exporting!globally!is!limited.!By! encouraging!cooperation!amongst,!and!growth!of,!services!firms!the!potential!for!export!development!will! grow.!Also,!in!general,!larger!firms!gain!economy!of!scales!and!become!cheaper!and!more!efficient.! However,!there!are!a!number!of!challenges!that!will!have!to!be!addressed!in!terms!of!attitude!towards! collaboration,!partnership!and!ownership.!

ACTIONS!

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1. Encourage!and!promote!the!use!of!partnerships:!ensure!the!legal!framework!for!partnerships!is!in! place!to!enable!services!providers!to!group!together!whilst!still!retaining!income!from!existing! customer!base!(also!gains!from!shared!support!services!and!well!as!marketing).! 2. Establishing!sector!export!companies/clusters:!encourage!the!establishment!of!export!firms!that! have!ownership!by!a!number!of!domestic!firms!that!invest/group!together!and!work!exclusively!on! export!markets!only.!

Outsourcing!services!

RATIONALE!

Efficiency!in!business!has!seen!the!global!trend!towards!outsourcing!of!nonNcore!business!services!to!save! costs!and!applies!to!both!the!private!sector!and!government.!This!also!creates!a!services!market!in!itself.! However,!very!little!outsourcing!is!undertaken!in!Barbados!and!there!is!the!opposite!trend!so!that!as!firms! grow,!they!develop!inNhouse!service!provision!of!services!(courier,!travel!services!etc).It!should!also!be! noted!that!success!in!outsourcing!will!also!depend!on!the!ability!of!the!service!providers!to!deliver!high! quality!services.!Therefore,!this!strategy!should!be!linked!with!other!components!of!this!strategy,!notably! strategy!1.4A!and!strategy!2.1A.!

ACTIONS! 1. Training!and!awareness!programme!on!outsourcing!and!contract!management:!the!benefits!of! outsourcing!should!be!promoted!in!Barbados.!In!addition,!it!should!be!recognised!that!a!particular! set!of!skills!will!be!required!to!manage!the!procurement!and!operation!of!these!outsourced! services.!Therefore,!training!in!contract!management!will!need!to!be!undertaken;!this!should!be! sector!specific!and!based!on!international!best!practise.! 2. Government!programme!of!outsourcing:!Government!can!take!the!lead!by!undertaking!an!audit!of! services!that!it!could!outsource!and!instigate!tendering!of!those!services!across!government!and!all! its!agencies.!! 3. Development!of!sectoral!outsourcing!programmes:!A!programme!to!support!both!“contractors”!(eg! through!training)!and!primary!firms!at!a!sector!level.!For!example,!working!with!the!hotel!industry! to!identify!services!that!could!be!outsourced!and!support!to!entrepreneurs!(financing!start!ups)!to! deliver!such!services.!Such!outsourcing!schemes!would!call!for!voluntary!participation,!perhaps! with!incentives.!The!results!and!impact!will!be!measured,!internationally!benchmarked!and! benefits!promoted!to!the!rest!of!the!sector.!

STRATEGY!1.3!ENSURE!SERVICES!ARE!DELIVERED!AS!A!BUSINESS!

Overall!Approach!

It!is!important!that!services!are!seen!as!a!business!and!a!viable!opportunity!for!new!entrepreneurs!and! citizens!to!pursue!as!a!career.!Many!of!these!opportunities!and!businesses!will!not!form!“sectors”!in! themselves!but!collectively!provide!an!important!contribution!to!services!and!economic!growth.!Moreover,! many!existing!services!providers!do!not!operate!as!a!business,!but!more!as!a!hobby!(for!example,!especially! in!the!creative!sector)!or!as!a!part!time!“side”!business.!!!!!

• Providing!business!support!to!small!service!providers:!to!encourage!and!support! growth!in!a!wide!range!of!services!!

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• Improving!business!and!services!marketing!skills:!providing!service!providers!with! business!skills!!

Providing!business!support!to!small!service!providers!

RATIONALE!

Individuals!and!small!firms!that!specialise!in!services!provisions!may!be!technically!competent!but!are!not! necessarily!able!business!people!(for!example,!individual!web!designers!app!developers!who!have!ideas!and! abilities!but!do!not!know!how!to!get!clients!or!sell).!By!providing!a!support!mechanism!for!small!and! “infant”!service!providers,!it!will!enable!many!budding!entrepreneurs!to!develop!a!services!business!whilst! they!focus!on!service!delivery.!

ACTIONS! 1. Develop!a!system!of!service!incubators:!to!provide!subsidised!(not!free)!facilities!for!service! entrepreneurs!to!gain!access!to!facilities!and!infrastructure!(registration!of!business,!accounts,! brand!management,!IT!equipment,!internet!equipment).!These!incubators!could!be!based!at! education!institutes,!business!associations.!Critical!to!the!success!of!these!incubators!will!be!the! quality!of!support!provided.!Therefore,!as!part!of!the!programme!to!develop!these!incubators,! training!and!selection!of!“quality”!support!providers!will!be!built!in.! 2. Business!support!clubs!for!small!service!providers:!establish!small!clubs!of!services!providers!to!pay! a!membership!for!shared!business!support!services!such!as!accountancy,!tax!advisers,!legal!advice,! training,!IT!support!etc.!These!could!either!be!sectoral!specific!(although!due!to!confidentiality!and! competition!concerns,!cross!sectoral!clubs!may!be!more!viable!if!less!efficient).!Clubs!could!also! have!a!manager!that!acts!as!a!mentor/business!adviser!to!members!positions!could!be!part!or!full! time!depending!upon!the!size!of!the!club).! 3. Develop!and!promote!a!portfolio!of!case!studies:!!Demonstration!effect!of!people!who!have! succeeded!in!services!exports!has!the!best!impact!on!encouraging!and!inspiring!others!with!a!“can! do”!attitude!towards!services!entrepreneurship.!These!case!studies!should!then!be!widely! promoted.!To!maximise!the!benefits,!the!case!studies!should!be!combined!with!a!“how!to”!guide! for!others!in!the!sector!to!provide!practical!information!and!guidelines!on!how!to!start!a!business!in! that!sector,!how!to!develop!and!market!it!and!move!from!a!micro!business!to!a!more!serious!one.! This!will!build!a!databank!of!best!practise!guidebooks!by!sub!sector!as!a!reference!for!those! wanting!to!start!a!new!business.!!

Improving!business!and!services!marketing!skills!

RATIONALE!

In!order!that!services!providers!are!better!able!to!grow!as!a!serious!business,!not!only!becoming!more! profitable!but!increasing!employment,!there!is!a!need!to!assist!service!providers!become!businessmen!with! improved!business!and!marketing!skills.!

ACTIONS! 1. Development!of!services!business!and!marketing!training!programme:!A!comprehensive!training! programme!(certified!programme)!of!basic!business!skills!(profit!and!loss,!bookNkeeping,!

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administration)!and!marketing!(selling,!market!research,!online!promotion).!Full!use!of!after! business!hours!and!online!modules!will!be!used.! 2. Mainstream!services!business!and!marketing!into!education:!providing!skills!and!opportunities!to! future!entrepreneurs!by!developing!business,!services!and!marketing!curricula!throughout! education!including!pre!16,!post!16!and!post!18.!In!addition,!extra!curricula!education!such!as! investment!clubs,!junior!achievers!and!other!“competitions”!will!be!promoted!to!further!educate! students!in!business.!

STRATEGY!1.4!PROVIDE!A!POOL!OF!APPROPRIATE!HUMAN!RESOURCES!FOR!HIGH!VALUE!SERVICES!

Overall!Approach!

In!the!medium!to!long!term,!the!available!pool!of!human!resource!will!limit!the!potential!development!of! services!sector!and!so!it!is!vital!that!an!abundance!of!qualified!personnel!are!made!available.!The!required! pool!of!human!resources!that!is!required!in!terms!of!both!qualifications!and!numbers!to!sustain!services! growth!through:!

• Continuing!vocational!training!and!upgrading:!providing!continuous!training!to! services!providers!to!enable!them!to!maintain!and!move!up!the!services!value!chain! • Increasing!the!pool!of!available!labour!force!for!services:!drawing!in!and! converting!workers!from!other!sectors!to!increase!the!pool!

Continuing!vocational!training!and!upgrading!

RATIONALE!

It!is!important!that!training!is!offered!continuously!to!services!providers!to!enable!them!to!maintain!and! move!up!the!services!value!chain!especially!as!the!labour!pool!is!reduced,!it!is!important!to!increase!the! value!of!services!provided!through!training.!!

ACTIONS! 1. Government!incentives!for!training:!through!subsidies,!tax!breaks!and!development!of!state! sponsored!training!programmes.! 2. Promoting!links!between!local!and!international!training!organisations:!to!ensure!that!training!is! appropriate,!portable!and!based!on!international!standards!to!ensure!that!the!skills!and! qualifications!are!recognised!and!demanded!internationally.!

Increasing!the!pool!of!available!labour!force!for!services!

RATIONALE!

It!is!important!that!the!size!of!the!pool!of!workforce!is!maintains!and!increases!gradually!to!meet!the! growing!demand!from!a!vibrant!services!sector.!Therefore!innovative!ways!of!increasing!the!pool!will!be! needed.!!

ACTIONS!

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1. Training!programme!for!the!unemployed:!Currently,!there!is!a!significant!number!of!unemployed! persons!in!Barbados!that!could!be!retrained!for!services!sector!work!so!they!are!prepared! upcoming!opportunities!(matching!skills!with!future!needs!in!Barbados).! 2. Migrating!civil!servants!to!the!services!sector:!Based!on!the!need!to!streamline!the!government! service,!a!future!source!of!entrepreneurs!and!service!sector!employees!could!come!from!the! government!sector!(especially!given!the!higher!qualifications!required).!Incentives!could!be! designed!for!retraining!and!new!business!start!ups!to!encourage!occupational!migration.!In! addition!secondment!and!exchange!programmes!could!also!be!considered.! 3. Redundant!occupations:!there!are!a!great!number!of!redundant!occupations!in!Barbados!that!add! costs!and!inefficiencies!to!local!business!and!services!that!could!be!phased!out!(supermarket! baggers,!petrol!pump!attendants).!These!simply!raise!costs.!As!services!sectors!grow!and!require! more!labour,!discussions!with!unions!and!employers!should!be!held!to!gradually!disband!these! jobs,!undertake!retraining!and!encourage!up!skilling!to!higher!value!employment.!!!

8.4 Services!Upgrading!

OVERALL!AIM!

This!part!of!the!strategy!will!address!the!level!and!grade!of!services!being!provided.!Being!a!relatively!small! country!with!a!relatively!small!labour!force,!growth!in!the!services!sector!must!come!from!increasing!the! value!of!the!services!provided.!Therefore:!

“…!!the!aim!of!this!component!will!be!to!improve!the!quality,!grade!and!value!of! services!that!are!available!and!provided!in!Barbados!and!that!consumers!appreciate! the!value!of!these!services,!and!demand!this!quality!…”!

The!“value”!of!services!needs!to!be!recognised!throughout!the!economy!and!appreciated!so!an!increase! use!of!quality!services!providers!in!other!nonNservices!sectors!would!be!encouraged!(services!inputs!to! manufacturing!and!agriculture!which!would!increase!competitiveness).!Therefore,!there!are!two!targets! required:!that!high!quality!services!are!available!and!that!consumers!discriminate!and!select!these!higher! quality!services.!However,!measurement!of!these!two!targets!is!difficult!given!quality!does!not!necessarily! mean!an!increase!in!price!(often!quality!producers!of!goods!and!services!are!generally!more!efficient!and! lower!cost)!so!an!increase!in!quality!does!not!necessarily!lead!to!an!increase!in!services!consumed,! especially!in!a!limited!domestic!market.!Therefore,!a!series!of!qualitative!indicators!will!need!to!be! established!such!as!the!number!of!certified!“quality”!service!providers.!!!

1)!Valorising!the!national!brand:!strategies!that!ensure!that!domestically!and! internationally,!Barbados!provides!quality!services,!become!known!for!it!and!that! services!providers!are!able!to!benefit!and!get!a!return!from!this!“brand”! 2)!Ensuring!quality!Government!services!(leading!by!example):!Government!is!the! largest!services!sector!in!Barbados!and!so!if!the!national!“brand”!is!that!of!a!quality! service!provider,!then!government!services!must!also!reflect!this!“image”!!!

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3)!Using!services!to!improve!efficiency!throughout!national!value!chains:!business! support!and!development!services!are!key!components!of!competitiveness!and! encouraging!the!consumption!of!such!services!throughout!national!value!chains!in! Barbados!will!not!only!grow!the!services!sector!but!increase!the!profitability!and! growth!of!these!sector!themselves!

STRATEGY!2.1!VALORISING!THE!BRAND!

Overall!Approach!

If!Barbados!is!to!promote!itself!(domestically!and!internationally)!as!a!provider!of!high!value!quality! services,!and!thus!attract!a!premium!for!those!services,!consumers!must!be!assured!of!this!quality.! Therefore,!a!comprehensive!system!is!needed!that!guarantees!this!quality!so!that!consumers!know!what! they!are!paying!for!–!a!quality!standard!backed!by!certification.!In!order!to!achieve!this,!a!number!of! activities!are!required:!

• Standards,!quality!assurance!and!certification:!the!development!and!adoption!of! national!standards!for!services! • International!recognition:!!wherever!possible,!aligning!services!provisions!with! internationally!recognised!standards!! • Development!of!national!services!culture:!to!create!a!culture!of!high!quality! throughout!the!country!so!that!it!is!expected!and!demanded!in!all!aspects!of!life!!

Standards,!quality!assurance!and!certification!

RATIONALE!

In!order!to!establish!Barbados!as!an!internationally!recognised!provider!of!high!value!and!high!quality! services,!all!services!provided!within!the!country!must!be!encouraged!to!adhere!to!the!brand!by!setting!and! applying!standards!for!grade!and!quality!of!services!provision.!These!standards!should!not!only!be!linked!to! international!norms,!but!also!have!common!criteria!to!provide!a!consistent!brand!message!and!allow!for! comparison!on!progress!across!sectors.!

ACTIONS! 1. Audit!of!services!standards!available:!an!audit!of!available!standards!(self!regulated,!regulated,!self! accredited!schemes!and!nationally!accredited)!for!all!services!in!the!economy!(from!taxi!services!to! software!development).!These!would!then!be!critically!reviewed!to!assess!the!grade!of!services! provided.! 2. Develop!and!improve!level!of!standards:!introduce!and!improve!existing!standards!for!all!services! sectors!(progressively!to!take!account!of!local!constraints!and!capacities)!based!on!international! best!practise!(where!available)!that!importantly!reflect!the!level!of!“ambition”!of!Barbados!as!a! high!value!services!provider.! 3. Development!of!a!comprehensive!scheme!for!quality!assurance!of!services!delivery:!a!national! quality!scheme!for!delivery!of!services!should!be!developed!and!certified!to!not!only!provide!

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guarantees,!but!also!to!assure!consumers.!These!will!include!both!generic!delivery!criteria!as!well! as!sector!specific!requirements.!

International!recognition!

RATIONALE!

In!order!to!export!effectively,!the!standards,!qualifications!and!quality!assurance!programmes!wherever! possible,!aligning!services!provisions!with!internationally!recognised!standards.!Not!only!should!standards! be!aligned,!but!also!recognised!through!international!membership!or!equivalence!agreements.!

ACTIONS! 1. Signing!Mutual!Recognition!Agreements:!For!key!export!sectors,!the!government!or!national!body,! as!appropriate,!should!negotiate!and!sign!mutual!recognition!agreements!for!standards!and! qualifications!in!key!markets.!This!will!raise!domestic!standards!and!quality!and!enable!service! providers!access!to!foreign!markets!where!these!international!standards!are!recognised.! 2. Promoting!international!memberships:!encouraging!domestic!service!providers!to!register!with! international!bodies!to!gain!international!recognition!(where!MRAs!are!not!existence!or!applicable).! This!obviously!has!a!cost!attached!so!should!be!strategic!in!sectors!for!export.! 3. Affiliate!with!international!bodies:!for!both!qualifications!and!certification,!international! recognition!becomes!easier!if!standards!and!qualifications!gained!in!Barbados!are! certified/approved!by!an!international!body!or!accreditation!organisation!(such!as!City!and!Guilds).! A!review!of!key!export!sectors!and!qualifications!and!standards!required!should!be!examined!and! targeted.!!!

Development!of!national!services!culture!

RATIONALE!

If!delivery!of!high!value!and!high!quality!services!are!imbedded!into!the!national!psyches!then!it!becomes! easier!throughout!business.!This!is!a!long!term!objective!that!will!take!time!to!realise!through!normalisation! and!expectation!–!people!expect!to!receive!high!quality!as!a!norm.!This!can!be!achieved!through:!

ACTIONS! 1. Promotion!and!education:!actions!such!as!national!advertising!campaigns,!training!in!communities! and!schools!that!relate!high!services!quality!not!only!to!business!but!to!every!day!and!quality!of!life,! that!is!making!it!relevant!to!everyone.!Once!this!is!understood,!it!becomes!more!readily!accepted!as! a!norm.! 2. Creating!the!demand!for!quality!service!delivery:!the!more!people!and!consumers!demand!quality,! the!more!service!providers!are!likely!to!change.!Therefore,!promoting!the!use!and!demand!for! quality!assurance!programmes!will!increase!the!use!of!such!schemes!(eg!if!a!national!taxi!quality! scheme!is!in!operation,!widespread!promotion!of!its!use!to!encourage!consumers!to!discriminate!in! favour!of!quality!services!–!this!would!extend!to!tourists!too).! 3. Innovative!guarantees!of!quality:!as!appropriate,!quality!programmes!should!be!backed!by!a!system! of!guarantees!!that!ensure!quality!is!adhered!to!–!so!for!example!using!complaints!systems,! publicised!performance!(such!as!NISE!customer!satisfaction!surveys)!will!help.!Such!schemes!could! also!involve!a!true!value!such!as!services!backed!by!insurance!(such!as!a!national!building!guarantee! scheme!so!that!if!an!insurance!company!insurances!your!construction!for!10!years!–!regardless!if! the!builder!is!still!in!business,!the!insurer!will!make!sure!the!build!is!quality!and!the!consumer!is!

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assured!that!the!insurance!will!cover!defects!–!quality!construction!that!is!backed!not!only!by! quality!standards!but!insurance);!other!schemes!in!other!sectors!could!be!development.! 4. Development!of!National!Award!for!Services!Excellence:!to!encourage!and!reward!services!quality! and!excellence,!a!national!award!prize!could!be!established!based!on!set!criteria!conforming!to!the! Barbados!services!brand.!This!would!not!only!raise!awareness!and!promote!services!culture!in! companies!trying!to!win!the!prize,!but!also!act!as!a!marketing!tool!for!the!winning!businesses!and! the!country!as!a!whole!(support!to!the!brand).!

STRATEGY!2.2!ENSURING!QUALITY!GOVERNMENT!SERVICES!!

Overall!Approach!

Given!that,!delivery!of!quality!services!is!needed!throughout!Barbados!if!it!is!to!gain!an!international! reputation!and,!Government!is!the!largest!services!sector!in!Barbados,!then!its!services!must!also!be! quality.!In!order!to!do!this,!a!national!programme!of!public!sector!service!performance!targets!should!be! introduced!that!has!Guarantees!for!the!public!(as!previous!public!policy!reform!programmes!have!failed)! through!greater!transparency.!Activities!will!include:!

• Public!Sector!Quality!Programme:!the!design!of!the!rules,!criteria,!incentives! and!penalties!will!be!set!independently! • Reform!programme!and!revision!of!the!“government!service”:!the!units! signing!up!will!develop!a!reform!package!based!on!achieving!targets! • Monitoring!and!consequences!for!nonOperformers:!open!and!transparent! monitoring!of!performance!with!carrots!and!sticks!!

Public!Sector!Quality!Programme!

RATIONALE!

A!programme!will!be!developed!that!encourages!government!ministries,!departments,!agencies!and!state! owned!companies!and!authorities!to!sign!up!to!the!scheme.!This!will!allow!the!gradual!adoption!and!the! reforms!will!come!from!within!the!individual!service!delivery!units!signing!up!(this!could!be!for!example,! the!whole!department!or!smaller!units!such!as!a!licensing!department).!By!making!in!voluntary,!it!will!make! reform!more!management!and!more!likely!to!succeed!as!the!reforms!are!proposed!and!owned,!by!the!unit! itself.!

ACTIONS! 1. Appoint!an!independent!organisation!to!oversee!the!programme:!this!would!likely!be!an!existing! body!such!as!civil!service!commission,!Office!of!Public!Sector!Reform!or!national!body.!Resources! will!be!needed!o!staff!and!operate!it.! 2. Design!of!a!certification!and!independent!monitoring!programme:!the!organisation!would!develop! the!criteria!for!application!and!approval.!!

Reform!programme!and!revision!of!the!“government!service”!

RATIONALE!!

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The!units!signing!up!will!develop!quality!performance!indicators!and!an!associated!reform!package!based! on!achieving!specific!targets.!These!will!improve!the!quality!of!services!provided!by!that!unit.!

ACTIONS! 1. Develop!and!agree!targets:!each!unit!will!develop!its!own!indicators!and!targets!within!the!criteria! set!out!by!the!scheme!(and!approved!by!the!supervisory!body)!! 2. Public!contract:!The!indicators!and!targets!will!be!discussed!and!validated!by!stakeholders!and!a! public!contract!or!promise!will!be!developed!and!published!to!agree!to!the!targets.!! 3. Reform!Programme:!a!programme!of!reforms!and!system!of!monitoring!will!be!put!in!place.! 4. Public!sector!Training!Programme:!as!part!of!the!reform!package!for!government!units,!training! programmes!that!address!service!delivery!in!terms!of!both!professionalism!(continuous!vocational! training)!and!customer!services!will!be!developed!and!made!available!to!participating!units.!

Monitoring!and!consequences!for!nonNperformers!

RATIONALE!!

Many!programme!in!the!past!have!failed.!To!encourage!and!motivate!units!a!system!of!rewards!and! penalties!will!be!used!to!focus!units!on!their!performance!targets.!

ACTIONS! 1. Publication!of!results:!public!pressure!and!scrutiny!is!an!important!incentive!so!performance!results! will!be!published!regularly!(weekly,!monthly!as!appropriate).!These!will!be!seen!by!all!displayed!in! newspapers,!radio!and!in!the!offices!concerned!–!embarrassing!as!necessary!into!improved! performance! 2. Incentives:!for!consistently!good!performing!units,!a!certificate!of!excellence!could!be!awarded!by! the!supervisory!body.!A!award!system!with!prizes!could!also!be!used!(which!will!also!promote! quality!services!in!general!as!well!as!the!government!programme.!Other!incentives!such!as!staff! bonuses!could!be!used,!as!well!as!funding!for!further!reforms!as!necessary.! 3. Consequences:!A!system!of!penalties!could!also!be!used!for!poor!performing!units!such!as!traffic! light!warnings!by!the!supervisory!body!–!green!good!performance,!amber!performance!needs! improvement!and!red,!very!poor!performance!requiring!drastic!action!or!face!withdrawal!from!the! scheme.!

STRATEGY!2.3!USING!SERVICES!TO!IMPROVE!EFFICIENCY!THROUGHOUT!NATIONAL!VALUE!CHAINS!

Overall!Approach!

A!potential!market!for!services!in!Barbados!are!firms!within!agriculture,!industry!and!services!value!chains.! For!competitive!production,!business!development!services!are!required!to!be!delivered!throughout!the! value!chain!but,!in!Barbados!there!is!limited!demand!for!these!services.!By!encouraging!the!consumption!of! these!services,!it!will!create!a!market!for!services!and!at!the!same!time,!improve!the!competitiveness!of! these!sectors.!!However,!the!current!market!is!constrained!by!the!limited!understanding!of!the!impact!of! these!services!on!business,!willingness!of!firms!to!pay!for!such!services!and!the!availability/range!of! services!available!in!Barbados.!The!strategy!will:!

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• Improve!the!standard!and!quality!of!business!development!services:!to!ensure! that!the!needs!of!the!value!chains!are!met!by!the!service!providers! • Promote!the!use!of!business!development!services:!explaining!the!benefits!to! business!so!they!can!understand!the!returns!on!investment! • Incentives!for!consumption!of!key!business!development!services!(BDS):!to! stimulate!a!domestic!BDS!market!and!start!to!encourage!business!into!the!habit!of! buying!BDS!

Improve!the!standard!and!quality!of!business!development!services!

RATIONALE!

In!order!that!the!business!development!services!can!improve!competitiveness!throughout!the!value!chain,! there!must!be!high!quality!and!high!grade!services!providers!with!skills!and!experience!available!to!bring! about!the!desired!changes.!!

ACTIONS! 1) Audit!of!available!business!development!services:!to!better!understand!the!capacity,!quality!and! range!of!services!available!and!where!the!gaps!exist.! 2) Needs!analysis!in!key!value!chains:!to!better!understand!the!specific!needs!of!each!value!chain!in! order!to!improve!competitiveness.! 3) Training!and!development!of!experienced!BDS:!based!on!a!gap!analysis!of!available!services!and! needs,!a!programme!of!training!through!existing!education!institutes!(for!example!development! and!assistance!in!developing!commercial!training!programmes),!working!with!associations!on! standards,!foreign!exchange!programmes!and!mentoring!of!core!services!(new!and!upgrading! existing!services)!will!be!undertaken.!

Promote!the!use!of!business!development!services!

RATIONALE!

Even!if!there!are!BDS!available!to!meet!the!needs!of!the!value!chain!operators,!these!firms!must!be!willing! to!buy!them.!In!Barbados,!there!is!not!a!tradition!of!buying!BDS!so!the!benefits!need!to!be!explained.!

ACTIONS! 1) Case!studies!and!evidence:!For!key!services!in!key!value!chains,!the!benefits!and!returns!on! investment!of!buying!BDS!should!be!researched!and!presented!in!multiple!media.! 2) Awareness!campaign:!to!promote!the!benefits!and!encourage!the!use!of!BDS!to!improve!efficiency! through!presentation!and!explanation!of!the!process!and!benefits.!Case!studies!will!be!the!best!use! (especially!if!these!case!studies!are!national!or!regional).!

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INCENTIVES!TO!ENCOURAGE!UTILISATION!OF!KEY!BUSINESS!DEVELOPMENT!SERVICES!(BDS)!

Rationale!

It!is!likely!that!encouraging!the!increased!use!of!BDS!within!value!chains!will!be!difficult,!even!with!publicity! and!awareness!raising.!Therefore,!incentives!should!be!used!to!entice!the!use!of!BDS!in!value!chains!on!a! cost!shared/subsidised!basis.!This!will!also!stimulate!the!creation!of!a!national!BDS!market.!

Actions! 1) Design!of!the!scheme:!A!national!scheme!will!have!to!be!designed!based!on!cost!share!basis,!eg! 50%!of!particular!BDS!for!SMEs!could!be!considered!to!limit!the!expenditure.!A!condition!of!finance! should!be!monitoring!of!results!and!promotion!of!the!benefits!afterwards.! 2) Identification!of!core!BDS!to!be!subsidised:!based!on!the!needs!of!the!value!chains!in!Barbados!3N5! BDS!services!could!be!selected!to!be!in!the!scheme.!Over!time,!the!services!(once!they!have!proven! themselves)!will!be!phased!out!and!replaced!with!other!services.!For!example,!energy!efficiency! consultancy!could!initially!be!targeted!to!firms.!Once!it!has!demonstrated!a!return,!firms!should!be! willing!to!pay!full!price!for!the!measured!returns.! 3) Development!and!certification!of!consultants:!in!order!that!the!BDS!provided!by!the!subsidy!is!fit! for!purpose,!a!specific!training!programme!for!development!of!certified!consultants!in!each!of!the! key!areas!(eg!targeting!graduates!or!unemployed!or!other!groups).!Only!contracts!with!certified! consultants!could!get!subsidies.! 4) Promotion!and!roll!out!of!programme:!advertising!and!promotion!of!the!scheme!nationally!and! monitoring!of!results!and!impact!to!remodel!and!reorient!programme!as!necessary.!!

8.5 Sector!brand!development!

OVERALL!AIM!

In!addition!to!the!more!generic!strategies!that!will!apply!across!all!services!sectors,!Barbados!need!to!focus! on!2N3!specific!sectors!that!it!will!need!to!promote!and!brand!internationally!so!that!Barbados!gains!an! international!reputation!for!provision!of!quality!and!high!value!services.!Based!on!the!immediate! capabilities!and!opportunities:!

“…!Barbados!should!develop!and!Brand!itself!as!a!quality!and!high!value!provider!of! tertiary!education,!knowledge!processing!outsourcing!and!information! communications!technology!…”!

The!target!for!these!sectors!would!be!to!increase!both!services!exports!and!employment,!so!that!

“…!an!increase!in!services!exports!three!targeted!sectors!totalling!over!US$!300!m!by! 2020!…”!

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It!is!important!that!a!separate!sector!development!strategy!is!prepared!for!each!of!these!brands!and!it!is! vital!that!before!the!brand!is!launched,!basic!capacity!building!is!undertaken!so!that!once!the!brand!is! launched,!it!is!backed!by!the!reality!of!high!value!and!high!quality.!Therefore!each!strategy!will!comprise!a! number!of!sequential!phases:!

“!the!development!of!sector!brand!strategies!will!comprise! ! 1)!Formulation!of!a!strategy:!based!on!national!capacity,!addressing!constraints!and! market!opportunities! 2!)!Developing!capacity!and!quality!of!services!to!be!provided:!would!include! standards!and!quality!assurance!for!not!only!the!immediate!services!but!also!ancillary! services!needed!(such!as!accommodation!for!foreign!students),!training!and!skills! development,!research!and!centres!of!excellence!in!each!service!sector!and!export! marketing!support! 3)!Promotion!of!the!Brand!and!marketing!support:!only!when!the!capacity!of!the! sector!matches!the!brand!criteria!will!the!brand!be!marketed!and!promoted! aggressively!–!linked!to!export!market!development!…”! !

!

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9 Implementation+Structures! !

This chapter provides guidelines for implementation. This is a draft and needs to be considered, adapted and developed by stakeholders in order that an effective model appropriate specifically for Barbados is developed. This framework for implementation will comprise:

9.1 Introduction!

OVERVIEW!

It!has!been!shown!that!success!in!countries!that!have!experienced!substantial!growth!in!services!has! resulted!from!cooperation,!both!amongst!the!private!sector,!and!between!the!private!sector!and! government.!The!development!of!a!publicNprivate!National!Services!Strategy!is!the!first!step!towards!the! required!cooperation!in!Barbados.!However,!growth!in!services!in!Barbados!will!depend!both!on!continued! cooperation!and!effective!and!consistent!implementation!of!the!Strategy.!!

Implementation!structure:! development!of!a!multiNtier!structure!of!implementation!that! differentiates!champions!promoting!services!nationally,!strategic! guidance!and!practical!actions.!

Facilitation!and!monitoring!mechanism:!! it!is!important!that!an!effective!monitoring!and!evaluation! programme!is!developed!to!first!establish!baseline!data,!and! then!monitor!outputs,!results!and!impact.!

Action!matrices:! in!order!to!guide!implementation,!a!comprehensive!series!of! action!matrices!will!be!need!–!a!workprogramme!for!each! component!developed!annually;!a!workplan!based!on!the! strategy!and;!higher!level!monitoring!and!reporting!tables.!

9.2 Implementation!structure!

A!public!private!sector!alliance!of!stakeholders!will!be!formed!to!monitor!and!coordinate!implementation.! Such!an!alliance!is!necessary!to!ensure!that!all!elements!(legislative,!administrative!and!business)!are! implemented!cohesively!and!consistently.!The!public!profile!of!the!services!sector!in!Barbados!is!low,! despite!its!importance!to!economy.!As!a!result!there!is!a!need!to!raise!this!and!so,!the!coordination! structure!must!include!high!profile!persons!willing!and!able!to!promote!services.!High!level!interventions! will!also!be!required!to!implement!some!of!the!tasks!in!the!Strategy!and!associated!Action!Plan.!!

Therefore,!the!structure!for!implementation!will!comprise:!!

…!a!multi!tier!approach!to!coordination!will!be!adopted.!Firstly,!a!high!level!subO committee!of!the!social!partnership!will!be!established!comprised!of!‘services’! champions!from!business,!senior!civil!service!and!politicians!(cabinet!representative! and!opposition),!to!both!promote!the!cause!and!support!implementation!.…!

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However,!such!high!level!persons!would!not!have!the!time!to!undertake!and!implement!specific!activities! within!the!strategy.!Therefore,!there!is!a!need!for!a!more!direct!and!practical!group!to!coordinate! implementation!on!a!weekly/monthly!basis.!

…!a!Task!Force!will!be!constituted!to!implement!the!Strategy!under!the!direction!of! the!SubOcommittee.!The!Task!Force!will!comprise!representatives!of!all!the!key! stakeholders!and!undertake!the!more!detailed!implementation!…!

Whilst!the!task!force!will!work!on!implementation!of!the!workplan,!specific!actions!will!require!more! detailed!research,!analysis!and!actions.!Therefore,!technical!groups!will!be!required:!

…!Technical!Working!Groups!will!be!established!to!undertake!specific!detailed!tasks! of!the!workplan!…!

Although!the!three!layers!are!hierarchical!and!therefore!linked,!there!is!a!real!need!to!ensure!continuity! between!the!different!organs.!There!is!also!a!need!for!technical!backup!and!secretariat!support!for!these! structures,!so!a!single!body!is!needed!to!take!on!this!role:!

…!BCSI!should!be!mandated!and!resourced!adequately!to!provide!secretariat!and! technical!support!to!the!SubOcommittee!of!the!Social!Partnership,!Task!Force!and! Working!Groups!…!!

HIGH!LEVEL!MONITORING!

The!legality,!appetite!and!feasibility!of!adapting!existing!social!partnership!structures!for!the! implementation!of!National!Services!Strategy!should!be!explored,!either!through!the!existing!subN committee!or!through!establishment!of!a!new!subNcommittee!dedicated!to!nonNtourism!services!sector! development.!!

Three!distinctive!groups,!Government,!Employers!(business)!representatives!and!Trade!Union! representatives!form!the!Social!Partnership.!Meetings!of!the!full!Social!Partnership!are!held!under!the! Chairmanship!of!the!Prime!Minister.!!The!SubNCommittee,!however,!comprises!three!Ministers!of! Government,!one!of!whom!is!the!Chairman,!the!Head!of!the!Civil!Service,!the!Director!of!Finance!and! Economic!Affairs,!the!Permanent!Secretary!in!the!Ministry!of!the!Civil!Service,!the!Chief!Personnel!Officer,! the!Permanent!Secretary!in!the!Ministry!of!Labour,!the!Permanent!Secretary!in!the!Prime!Minister’s!Office,! the!Chief!Labour!Officer!and!an!equal!number!of!representatives!of!the!Employers!and!the!Congress!of! Trade!Unions!and!Staff!Associations!of!Barbados.!

Protocol!VI!of!the!Social!Partnership!(2011N2013)!focuses!the!current!agenda!of!the!SubNCommittee,!of! particular!relevance:!

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! The!development!of!a!knowledge!driven!economy!to!encourage!a!culture!of!information!sharing! within!and!across!all!sectors.!

The!role!of!this!higher!level!tier!in!implementation!of!the!Strategy!is!to:!

! champion!the!services!sector!development!in!Barbados,!maintaining!the!profile!and!prominence!of! the!sector!in!the!general!media;! ! ensure!that!services!sector!development!is!placed,!and!maintained,!as!a!priority!in!political!and! popular!agenda!across!the!country;! ! inspire!and!encourage!the!development!of!the!services!sector!in!Barbados;! ! ensure!adequate!resources!are!allocated!to!the!implementation!of!the!strategy!and!annual! workplan;! ! monitor!and!drive!the!National!Services!Strategy!ensuring!that!implementation!momentum!is! maintained.!

In!order!to!fulfil!its!objectives,!the!membership!of!the!higher!tier!should!be!representatives!of!government,! business!and!trade!unions.!It!should!also!be!partisan!and!so!senior!figures!from!both!the!government!and! opposition!should!be!represented.!As!champions,!all!members!should!be!well!respected,!well!known!and! dynamic,!committed!and!able!to!dedicate!the!required!time!to!the!tasks!at!hand.!

Suggested membership:

o Minister!of!Industry!

o Leader!of!the!Opposition!

o Leading!service!provider!

o …..!

It!should!be!noted!that!members!of!the!higher!tier!structure!will!be!on!a!personal!basis!so!as!to!personally! drive!the!agenda!and!use!their!own!reputations!to!promote!the!sector.!

Full!terms!of!reference!for!this!committee!will!need!to!be!developed.!

TASK!FORCE!

The!Task!Force!will!act!as!the!link!between!champions!and!implementers.!A!new!instrument!will!be! developed!and!report!to!the!higher!tier!body.!Again,!there!is!a!need!to!investigate!the!legality,!appetite!and! feasibility!of!creating!a!Task!Force!subservient!to!the!higher!level!social!partnership!structure!adopted.!

The!main!roles!of!the!Task!Force!will!be:!

! supervise!and!monitor!implementation!of!the!strategy;! ! provide!strategic!guidance!to!working!groups!on!implementation;! ! provide!higher!tier!structures!with!information!on!the!progress!against!objectives;! ! provide!higher!tier!structures!with!information!to!enable!them!to!effectively!undertake!their!role,! particularly!in!promoting!the!sector;! ! provide!advice!to!higher!tier!structures!on!problems!and!issues!that!require!to!be!resolved!to! enable!effective!implementation!(such!as!political!issues).!

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The!membership!of!the!Task!Force!should!represent!organisational!decision!makers!that!are!able!to!both! guide!implementation!and!intervene!as!necessary,!to!operationalize!and!get!things!moving.!Membership!of! the!Task!Force!would!be!“positional”,!that!is!specific!positions!of!organisations!will!be!designated,!such!as! President!of!BCSI.!!

!

Suggested membership:

BCSI

Ministry of Industry and Trade

Ministry of Foreign Affairs and Foreign Trade

Ministry of Labour HRD Unit

Trade Union Congress

NISE

Productivity Council

Office of Public Sector Reform

Productivity Council

Small Business Association

BIDC

Invest Barbados

Sector Associations (min 3) (representing each sector working group)

It!should!be!noted!that!members!of!the!Task!Force!will!be!heads!of!organisations!representing!higher!level! policy!decisions!of!the!organisations!they!represent.!

Full!terms!of!reference!for!this!committee!will!need!to!be!developed.!

TECHNICAL!WORKING!GROUPS!

Technical!Working!Groups!of!the!Task!Force!will!be!formed!as!and!when!necessary!for!the!implementation! of!the!National!Services!Strategy.!Technical!Working!Groups!will!be!formed!and!disbanded!as!needed;!for! example,!each!sector!that!is!able!to!come!together!and!develop!a!sector!strategy!and!workprogramme! within!the!Sector!branding!component!can!form!a!Technical!Working!Group,!as!well!as!others!for! implementation!of!more!generic!components!of!the!strategy.!

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The!role!of!the!Technical!Working!Groups!will!be:!

! develop!annual!workprogrammes!to!implement!the!relevant!components!of!the!national!services! strategy!(elaborating!necessary!tasks);! ! monitor!and!manage!implementation!of!specific!tasks!defined!in!the!workprogramme!–!these!being! implemented!by!members/organisations!on!the!technical!working!group;! ! report!progress!to!the!task!force;! ! advise!the!task!force!of!issues!and!constraints!to!implementation.!

In!addition!to!sectoral!Technical!Working!Groups,!the!following!seven!groups!are!recommended!to! implement!the!national!services!strategy!(lead!and!membership!of!each!should!be!reviewed,!extended!and! amended!as!necessary):!

!

Working!Group!1:!Services!Research!and!Awareness!Raising!!

Agenda! Lead!Organisation!and!members!of!Working! Group!

1.1A!Improve!research!and!analysis!on!services! BCSI!

1. Establishment!of!comprehensive!statistical!system! UWI!

2. Establishment!of!research!centres!for!services! NISE!

3. Sensitisation!of!services!providers!to!need!and!use!of! Education!Development!Unit! statistics! Ministry!of!Labour! 1.1B!Raise!the!profile!of!services!nationally! National!Audit!Office!

1. Develop!a!series!of!national!seminars,!conferences! Min!of!Finance! and!workshops! Chamber!of!Commerce! 2. Ensure!that!services!exports!form!part!of!education! courses!in!business,!finance!and!management! BIDC!

3. Media!and!press!exposure! Barbados!National!Chamber!of!Commerce! Small!Business!Association! 1.1C!Redress!the!free!services!culture! Gov!dept!responsible!for!Business!registration!! 1. Systematic!costing!of!services!throughout!the! country! Gov!dept!responsible!for!company!law! /structures! 2. Gradual!introduction!of!service!charging!in!business! services! !

1.2B!Encouraging!development!of!export!ready!firms!

1. Encourage!and!promote!the!use!of!partnerships!!

2. Establishing!sector!export!companies/clusters!

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Working!Group!2:Open!for!Business!!

Agenda! Lead!Organisation!and!members!of!Working! Group!

1.2A!Opening!all!services!markets! Ministry!of!Foreign!Affairs!and!Foreign!Trade! (lead)!

1. Opening!of!markets!in!all!services!sectors! Ministry!of!Economic!Affairs!

Ministry!of!Industry……!

BCSI!

Relevant!Sector!associations!

Relevant!Line!Ministries!

!

Working!Group!3:!Outsourcing!(Public!and!Private!Sector)!

Agenda! Lead!Organisation!and!members!of!Working! Group!

1.2C!Outsourcing!services! To!be!determined!

1. Training!and!awareness!programme!on!outsourcing! Government!dept!responsible!for! and!contract!management! Procurement!

2. Government!programme!of!outsourcing! Lawyers!Association!

3. Development!of!sectoral!outsourcing!programmes! Sector!Associations!representing!target! industries!(tourism,!contractors!etc)!

Working!Group!4:!!Services!as!a!Business!

Agenda! Lead!Organisation!and!members!of!Working! Group!

1.3A!Providing!business!support!to!small!service! To!be!determined! providers!

1. Develop!a!system!of!service!incubators! BCSI!(representing!sector!associations)!

2. Business!support!clubs!for!small!service!providers! Small!Business!Association!

3. Develop!and!promote!a!portfolio!of!case!studies!!! Ministry!of!Labour!HRD!Unit!

1.3B!Improving!business!and!services!marketing!skills! Small!Business!Association!

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1. Development!of!services!business!and!marketing! BIDC! training!programme!! Private!Sector!association! 2. Mainstream!services!business!and!marketing!into! NISE! education! National!Chamber!of!Commerce!

Ministry!of!Education!

TVET!Council!

!

Working!Group!5:!Services!Human!Resource!Development!

Agenda! Lead!Organisation!and!members!of!Working! Group!

1.4A!Continuing!vocational!training!and!upgrading! Ministry!of!Labour!HRD!Unit!

!

1. Government!incentives!for!training! Ministry!of!Education!

2. Strengthening!international!links! TVET!Council!

1.4B!Increasing!the!pool!of!available!labour!force!for! Small!Business!Association! services! Trade!Unions!

1. Training!programme!for!the!unemployed! National!Chamber!of!Commerce!

2. Migrating!civil!servants!to!the!services!sector! NISE!

3. Redundant!occupations!! Productivity!Council!

Working!Group!6:!Quality!of!Services!Delivery!

Agenda! Lead!Organisation!and!members!of!Working! Group!

2.1A!Standards,!quality!assurance!and!certification! NISE!

1. Audit!of!services!standards!available! Accreditation!Council!

2. Develop!and!improve!level!of!standards! BCSI!(representing!associations)!

3. Development!of!a!comprehensive!scheme!for!quality! BNSI! assurance!of!services!delivery! Key!professional!Associations! 2.1B!International!recognition! Productivity!Council! 1. Signing!Mutual!Recognition!Agreements!

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2. Promoting!international!memberships! TVET!Council!

3. Affiliate!with!international!bodies!! !

2.1C!Development!of!national!services!culture!

1. Promotion!and!education!

2. Creating!the!demand!for!quality!service!delivery!

3. Innovative!guarantees!of!quality!

4. Development!of!National!Award!for!Services! Excellence!

Working!Group!7:!Government!Quality!Service!Delivery!!

Agenda! Lead!Organisation!and!members!of!Working! Group!

2.2A!Public!Sector!Quality!Programme! Office!of!Public!Sector!Reform!

1. Appoint!an!independent!122organization!to!oversee! NISE! the!programme! Productivity!Council! 2. Design!of!a!certification!and!independent!monitoring! BNSI!! programme!! BCSI!(and!associations!using!specific!services)! !

2.2B!Reform!programme!and!revision!of!the! “government!service”!

1. Develop!and!agree!targets!!

2. Public!contract!

3. Reform!Programme!

4. Public!sector!Training!Programme!

2.2C!Monitoring!and!consequences!for!nonNperformers!

1. Publication!of!results!

2. Incentives!

3. Consequences!

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Working!Group!8:!BDS!in!value!chains!

Agenda! Lead!Organisation!and!members!of!Working! Group!

2.3A!Improve!the!standard!and!quality!of!business! Productivity!Council! development!services!

1. Audit!of!available!business!development!services! BCSI!

2. Needs!analysis!in!key!value!chains! BIDC!

3. Training!and!development!of!experienced!BDS! BNSI!

2.3B!Promote!the!use!of!business!development!services! NISE!

1. Case!studies!and!evidence! Private!Sector!Trade!Team!

2. Awareness!campaign! Productivity!Council!

2.3C!Incentives!for!consumption!of!key!business! Small!Business!Association! development!services!(BDS)! Ministry!of!Industry…!

1. Design!of!the!scheme! ! 2. Identification!of!core!BDS!to!be!subsidised!

3. Development!and!certification!of!consultants!

4. Promotion!and!roll!out!of!programme!!

It!should!be!noted!that!members!of!the!working!groups!will!be!technicians!working!on!the!issues!being! implemented!(part!of!their!jobs)!but!membership!will!be!organisational;!that!is,!decisions!and!contributions! from!a!corporate!rather!than!personal!perspective.!!

Full!terms!of!reference!for!this!committee!will!need!to!be!developed.!

9.3 Facilitation!and!Monitoring!

There!is!a!need!to!facilitate!and!support!the!implementation!structure,!ensuring!that!there!is!adequate! linkage!between!the!different!tiers!and!providing!a!monitoring!mechanism.!This!role!should!be!undertaken! by!the!Barbados!Coalition!of!Services!Industries!(BCSI)!whose!“mission!is!to!foster!the!international! competitiveness!and!export!potential!of!the!Barbadian!services!sector.”!

The!role!of!BCSI!as!facilitator!should!include:!

! arranging!meetings!at!each!tier!of!the!implementation!structure;! ! monitoring!implementation!of!the!strategy;! ! reporting!to!each!tier;! ! providing!Secretariat!services!to!each!tier;! ! establishing!a!management!information!system!to!measure,!report!and!monitor!progress!and! impact!throughout!the!implementation!chain.!

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Adequate!resources!will!need!to!be!provided!to!BSCI!in!order!to!undertake!these!functions,!including! dedicated!staff!and!management!systems.!

The!implementation!action!matrices!should!be!structured!in!such!a!way!as!to!provide!not!only!an!effective! implementation!plan!(plan!of!actions!and!elaborated!to!include!specific!tasks!required!for!implementation! of!the!national!services!strategy)!but!also!an!effective!monitoring!and!management!tool.!Therefore,!the! structure!of!the!work!plan!(Task!Force!level)!and!associated!work!programmes!(Technical!Working!Group! level)!should!follow!closely!the!strategy!components.!!

Therefore,!the!action!matrix!should!be!tiered!to!reflect!both!the!scope!of!responsibility!and!level!of!detail! at!each!part!of!the!structure.!For!example,!the!highest!level!management!and!coordination!would!be!at!the! level!of!reporting!to!the!general!public;!clearly!the!level!of!detail!that!would!be!possible!to!present!would! be!low!and!highly!aggregated!reporting,!for!example,!on!a!single!overall!target!and!associated!impacts.! Whereas,!at!the!technical!working!group!level,!the!areas!of!responsibility!would!be!much!narrower!and!the! level!of!detail!would!have!to!be!higher!(and!more!detailed!tasks!than!provided!in!the!current!work!plan! outlined!in!this!document). !

Reportng!to!Business! Community!and!Civil!Society!

Social!Partnership!SubN commiÑee!

Task!Force!

Technical!Working!Groups!

At!each!of!these!levels,!there!is!a!need!for!separate!monitoring,!reporting!and!action!matrices!with! different!activities,!targets!and!timeframes.!However,!there!should!be!consistency!in!the!construct!as!well! as!each!subordinate!levels!feeding!into!the!superior!level!(that!is!the!superior!level!represents!a!summary! of!the!subordinate!level).!Outputs,!results!and!impacts!(as!reflected!in!the!indicators)!should!be! aggregatable.!!In!this!way,!a!single!management!information!system!should!be!used,!taken!from!the!same! source!data!with!each!management!level!able!to!extract!the!relevant!data!for!their!own!purposes!and!level! of!detail.!!

This!approach!ensures!that!Barbados!will!consider!implementation!of!all!components!of!the!strategy!which! will!create!greater!opportunities!for!business!to!advantage!of!the!opportunities!provided!in!order!to! maximize!the!impact!of!the!strategy.!! !

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The!work!plan!should!have!the!following!structure:!

1.!SERVICES!SECTOR!DEVELOPMENT! Strategy!1.1!Valorise!services!throughout!the!economy! Strategy!1.2!Create!a!competitive!services!environment! Strategy!1.3!Ensure!Services!are!Delivered!as!a!Business! Strategy!1.4!Provide!a!Pool!of!Appropriate!Human!Resources!for!High!Value!Services! ! 2.!SERVICES!UPGRADING! Strategy!2.1!Valorising!the!Brand! Strategy!2.2!Ensuring!quality!Government!services!! Strategy!2.3!Using!services!to!improve!efficiency!throughout!national!value!chains! ! 3.!SECTOR!BRAND!DEVELOPMENT! Strategy!3.1!Sector!1!! Strategy!3.2!Sector!2! Strategy!3.3!Sector!3!

For!each!action!specified!in!the!strategy!(61!items!for!implementation)!the!following!information!should!be! provided:!

1. strategic!objective!(reference!to!strategy!document)!

2. a!brief!description!of!the!specific!strategy!action!

3. its!nature!(a!law,!an!institutional!change,!or!administrative!adjustment!etc)!

4. the!date!by!which!work!should!start!!

5. the!date!by!which!the!action!has!to!be!implemented!!

6. the!responsible!authority!for!implementation!of!the!measure!(lead!agency)!!

7. results!indicator!baseline!!

8. source!of!data!

9. results!indicator!target!!

10. budget!required!(which!will!remain!blank!until!the!task!level!workplan!for!each!Action!is!elaborated! at!a!technical!working!group!level).!

HIGH!LEVEL!OBJECTIVES!AND!ASSOCIATED!TARGETS!

For!reporting!to!Cabinet,!Parliament,!business!and!civil!society,!the!overall!objectives!of!the!national! services!strategy!will!be!measured,!monitored!and!presented!to!demonstrate!progress!and!success.!

At!this!high!level,!the!overall!objective!is!“…!to!create!an!environment!in!Barbados!that!ensures!the! development!and!sustained!growth!of!a!high!quality,!high!grade!and!high!value!services!sector.”!The! monitoring!and!reporting!framework!for!this!will!include!the!overall!objective,!impact!indicators!as!well!as!

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the!overall!components!of!the!strategy!itself.!This!will!mean!targeting!and!monitoring!2!overall!and!3! specific!objectives!and!their!associated!targets/indicators.!

Overall!Objectives!

Objective Indicator Baseline (2013) Target (2020) Source

Overall Objective Development and Level of value To be determined Increase of 40% Barbados statistical sustained growth of a added per services service (to be high quality, high employee confirmed) grade and high value services sector

Impact Indicator Services drive Growth in value of To be determined To be calculated Barbados statistical economic growth in the services sector based on an service Barbados increase in value added per employee of 60% (static with no increase in services employment)

Specific!Objectives!

Objective Indicator Baseline (2013) Target (2020) Source

1.Development of Place services at the Share of non- To be determined Increase of X Barbados statistical the services sector forefront of the tourism services in percentage service national agenda in GDP points (where X Barbados and create is calculated on a service oriented the basis of the culture and economy increase in GDP where high value from services) services thrive

2. Upgrading Improve the quality, Increase in To be determined To be NISE (to be services provision grade and value of customer determined confirmed) services satisfaction across Barbados (nationals and visitors)

3. Sector Branding Develop and Brand Increase in exports To be determined Increase in BCSI sector itself as a quality and of specific services exports of US$ surveys (to be high value provider sectors 300 m (based on confirmed) of selected sectors potential in 3 sectors)

! !

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SOCIAL!PARTNERSHIP!LEVEL!OBJECTIVES!AND!INDICATORS!

The!Social!Partnership!SubNcommittee!level!will!act!as!supervisory!body!both!championing!the!strategy!and! providing!strategic!direction.!In!order!to!undertake!this!function,!10!objectives!representing!each!strategic! activity!of!the!national!strategy!(and!associated!indicators)!will!be!monitored,!each!of!which!contributes!to! the!3!specific!objectives/indicators!of!the!Strategy.! Strategic Activities Results Indicator Baseline Indicator Target (2020) Source Objective

1.Development of the services sector Share of non- To be determined Increase of X Barbados tourism services percentage points statistical service in GDP

Strategy 1.1 Improve research Per capita To be determined To be determined To be determined Valorise services and analysis on consumption of throughout the services services economy Raise the profile of services nationally Redress the free services culture

Strategy 1.2 Create Opening all Relative price To be determined To be determined To be determined a competitive services markets competitiveness of services services (either environment Encouraging reduction in real development of price or export ready firms benchmarked Outsourcing against world services prices)

Strategy 1.3 Ensure Providing business Number of To be determined To be determined To be determined Services are support to small registered services Delivered as a service providers businesses Business Improving business and services marketing skills

Strategy 1.4 Continuing Number employed To be determined To be determined To be determined Provide a Pool of vocational training in the services Appropriate Human and upgrading sector Resources for High Value Services Increasing the pool of available labour force for services

2. Upgrading services provision Increase in To be determined To be determined NISE (to be customer confirmed) satisfaction across Barbados (nationals and visitors)

Strategy 2.1 Standards, quality Number of certified To be determined To be determined To be determined Valorising the assurance and (recognised Brand certification national and international) International services providers recognition Development of national services culture

Strategy 2.2 Public Sector Increase in To be determined To be determined NISE Ensuring quality Quality Programme customer Government satisfaction of services Reform programme government and revision of the

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Strategic Activities Results Indicator Baseline Indicator Target (2020) Source Objective “government services service” Monitoring and consequences for non-performers

Strategy 2.3 Using Improve the Percentage of To be determined To be determined To be determined services to improve standard and services in total efficiency quality of business value added throughout national development (agriculture, value chains services manufacturing and services) Promote the use of business development services Incentives to encourage utilisation of key business development services (BDS)

3. Sector Branding Increase in To be determined Increase in BCSI sector exports of specific exports of US$ surveys (to be services sectors 300 m (based on confirmed) potential in 3 sectors)

Strategy 3.1 Formulation of a Increase exports of To be determined US$ 150 m To be determined Education Services strategy education services Developing Strategy 3.2 capacity and quality Increase exports of To be determined US$ 110 m To be determined Knowledge of services to be KPO Processing provided Outsourcing (KPO) Promotion of the Brand and Strategy 3.3 marketing support Increase exports of To be determined US$ 50 m To be determined Information ICT Communication Technology (ICT)

TASK!FORCE!LEVEL!OBJECTIVES!AND!INDICATORS!

At!the!Task!Force!level,!there!are!61!actions!specified!within!the!National!Services!Strategy!which!will!need! to!be!monitored.!Each!set!of!objectives,!actions!and!associated!indicators!will!contribute!to!the!10! indicators!monitored!at!the!higher!Social!Partnership!level.!!

The!next!section!of!this!chapter!provides!an!outline!of!the!workplan!that!has!to!be!developed!by! stakeholders!in!Barbados.! !

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WORKING!GROUP!OBJECTIVES!AND!INDICATORS!

The!actions!detailed!in!both!the!Strategy!and!the!Workplan!will!provide!the!Task!Force!with!an!overview!of! the!activities!required!to!achieve!the!objectives!of!the!strategy.!However,!the!specific!tasks!required!need! to!be!defined.!This!will!require!the!Technical!Working!Groups!to!review!the!actions!pertaining!to!that!part! of!the!strategy!for!that!they!are!responsible!for,!and!elaborating!the!required!tasks.!The!resulting! workprogrammes!of!the!Technical!Working!Groups!would!then!produce!hundreds,!if!not!thousands!of!task! level!indicators.!However,!these!should!be!“output”!indicators!that!contribute!to!the!higher!level!result!and! objective!indicators.!Nevertheless,!the!workload!of!this!is!potentially!enormous!(although!necessary)!and! should!not!be!underestimated.!To!help!manage!this,!workprogrammes!would!be!generalised!for!the!whole! strategy!period!2014N2020,!with!precise!details!only!being!provided!on!an!annualised!basis,!taking!account! of!both!prioritisation!and!sequencing!of!actions!specified!in!the!strategy!itself.!

For!example,!strategy!1.2!B!(1)!Encourage!and!promote!the!use!of!partnerships!aims!to!increase!the!size!of! services!firms!to!make!them!better!able!to!export!(responding!to!the!needs!of!the!international!market).! The!Technical!Working!Group!responsible!for!this!strategy!would!consider!and!define!the!tasks!required!to! realise!this!strategy.!This!might!involve:!

!

1. Review!of!business!legislation!on!partnerships! 2. Consultations!with!business!(to!determine!reasons!for!staying!small!and!interest!in!growth)! 3. Change!as!necessary,!legal!and!regulatory!framework!for!partnerships! 4. Develop!and!implement!promotional!campaign!for!partnership!structures! 5. Undertake!seminars!on!management!and!operation!of!partnerships! 6. [….]!

!

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Therefore,!workprogrammes!will!elaborate!the!workplan!of!the!Task!Force!in!the!following!way:!

! Strategic Activities Type Start End Respons- Results Baseline Target Source Budget Objective of Date date ible Indicator/ Indicator (2020) activit Authority Outputs y Strategy 1.2 Create a competitive services environment Relative To be To be To be To be price determine determine determine determine competitiv d d d d eness of services 1.2 B Encouraging development of export ready firms BCSI Number of To be To be To be To be services determine determine determine determine firms d d d d exporting 1.2 B (1) Encourage and promote 2014 2016 BCSI Number of To be Increase Business the use of partnerships services determine by 100% registratio firms in d n partnershi ps o Paper!on!legal!framework!and!ease/appropriateness! 1. Review Study 2014 2014 Lawyers B$ 0 of!use!for!services!companies! business Associat legislation on ion partnerships o Series!of!focus!groups!with!business!in!selected! 2. Consultations Study 2014 2014 BCSI B$ 5,000 sectors!(eg!professional!services)! with business o Paper!on!needs!of!business/requirements!of! international!clients!(eg!construction!requiring!single! solution!architect,!surveyors,!engineers!in!1! contract)! o Consultations!with!business!on!needs!of!partnership! 3. Change as Legal 2015 2016 Ministry B$ 10,000 regulations! necessary, legal of Paper!on!suggested!changes! and regulatory Industry o

framework for o Redrafting!of!legislation!and!regulations!as! partnerships necessary! o Approval!process!of!reforms! o {….}! 4. Develop and Promo 2015 2016 implement tion promotional campaign for partnership structures 5. Undertake Semin 2015 2016 seminars on ars management and operation of partnerships […]

9.4 Outline!Workplan!

The!following!Workplan!is!an!outline!of!Task!Force!level!action!matrix!to!guide!and!monitor! implementation.!This!Workplan!is!purposely!incomplete.!Completion!of!this!outline!becomes!the!first!role! of!the!Task!Force!by!prioritising!the!actions!listed!and!determining!the!appropriate!indicators!of!success!for! each!action!that!contribute!to!the!higher!level!target.!

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Strategic Activities Type of Start Date End date Responsible Results Baseline Target (2020) Source Budget Objective activity Authority Indicator Indicator

Overall Development and sustained growth of a high quality, high grade and high value services Level of value Increase of Barbados Objective sector added per 40% statistical services service (to be employee confirmed) Impact Services drive economic growth in Barbados Growth in value To be Barbados Indicators of the services calculated statistical sector based on an service increase in value added per employee of 60% (static with no increase in services employment) 1.Development of the services sector Share of non- Increase of X Barbados tourism percentage statistical services in points service GDP Strategy 1.1 Valorise services throughout the economy Per capita consumption of services 1.1 A Improve research and analysis on services 1.1 A (1) Establishment of comprehensive statistical system 1.1 A (2) Establishment of research centres for services.

1.1 A (3) Sensitisation of services providers to need and use of statistics

1.1 B Raise the profile of services nationally 1.1 B (1) Develop a series of national seminars, conferences and workshops 1.1 B (2) Ensure that services exports and delivery form part of education courses 1.1 B (3) Media and press exposure

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Strategic Activities Type of Start Date End date Responsible Results Baseline Target (2020) Source Budget Objective activity Authority Indicator Indicator

1.1 C Redress the free services culture 1.1 C (1) Systematic costing of services throughout the country 1.1 C (2) Gradual introduction of service charging in business services Strategy 1.2 Create a competitive services environment Relative price competitiveness of services (either reduction in real price or benchmarked against world prices) 1.2 A Opening all services markets 1.2 A (1) Opening of markets in all services sectors 1.2 B Encouraging development of export ready firms 1.2 B (1) Encourage and promote the use of partnerships

1.2 B (2) Establishing sector export companies/clusters

1.2 C Outsourcing services 1.2 C (1) Training and awareness programme on outsourcing and contract management 1.2 C (2) Government programme of outsourcing

1.2 C (3) Development of sectoral outsourcing programmes

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Strategy 1.3 Ensure Services are Delivered as a Business Number of registered services businesses 1.3 A Providing business support to small service providers 1.3 A (1) Develop a system of service incubators

1.3 A (2) Business support clubs for small service providers 1.3 A (3) Develop and promote a portfolio of case studies

1.3 B Improving business and services marketing skills 1.3 B (1) Development of services business and marketing training programme 1.3 B (2) Mainstream services business and marketing into education

Strategy 1.4 Provide a Pool of Appropriate Human Resources for High Value Services Number employed in the services sector 1.4 A Continuing vocational training and upgrading 1.4 A (1) Government incentives for training 1.4 A (2) Promoting links between local and international training organisations 1.4 B Increasing the pool of available labour force for services 1.4 B (1) Training programme for the unemployed

1.4 B (2) Migrating civil servants to the services sector

1.4 B (3) Redundant occupations

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2. Upgrading Services Provision Increase in NISE (to be customer confirmed) satisfaction across Barbados (nationals and visitors) Strategy 2.1 Valorising the Brand Number of certified (recognised national and international) services providers 2.1 A Standards, quality assurance and certification 2.1 A (1) Audit of services standards available 2.1 A (2) Develop and improve level of standards 2.1 A (3) Development of a comprehensive scheme for quality assurance of services delivery. 2.1 B International recognition 2.1 B (1) Signing Mutual Recognition Agreements 2.1 B (2) Promoting international memberships 2.1 B (3) Affiliate with international bodies 2.1 C Development of national services culture 2.1 C (1) Promotion and education 2.1 C (2) Creating the demand for quality service delivery 2.1 C (3) Innovative guarantees of quality 2.1 C (4) Development of National Award for Services Excellence

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Strategy 2.2 Ensuring quality Government services Increase in customer satisfaction of government services 2.2 A Public Sector Quality Programme 2.2 A (1) Appoint an independent organisation to oversee the programme 2.2 A (2) Design of a certification and independent monitoring programme 2.2 B Reform programme and revision of the “government service” 2.2 B (1) Develop and agree targets 2.2 B (2) Public contract 2.2 B (3) Reform Programme 2.2 B (4) Public sector Training Programme 2.2 C Monitoring and consequences for non-performers 2.2 C (1) Publication of results 2.2 C (2) Incentives 2.2 C (3) Consequences Strategy 2.3 Using services to improve efficiency throughout national value chains Percentage of services in total value added (agriculture, manufacturing and services) 2.3 A Improve the standard and quality of business development services 2.3 A (1) Audit of available business development services

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2.3 B (2) Awareness campaign 2.3 C Incentives to encourage utilisation of key business development services (BDS) 2.3 C (1) Design of the scheme 2.3 C (2) Identification of core BDS to be subsidised 2.3 C (3) Development and certification of consultants 2.3 C (4) Promotion and roll out of programme. 3. SECTOR BRAND DEVELOPMENT Increase in Increase in BCSI sector exports of exports of US$ surveys (to be specific 300 m (based confirmed) services on potential in sectors 3 sectors) Strategy 3.1 Sector 1 3.1 A Formulation of a strategy 3.1 B Developing capacity and quality of services to be provided 3.1 C Promotion of the Brand and marketing support Strategy 3.2 Sector 2 3.1 A Formulation of a strategy 3.1 B Developing capacity and quality of services to be provided 3.1 C Promotion of the Brand and marketing support Strategy 3.3 Sector 3 3.1 A Formulation of a strategy 3.1 B Developing capacity and quality of services to be provided 3.1 C Promotion of the Brand and marketing support

!

!

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10 Next%Steps%!

It is important to be clear that in order that the proposed strategy is implemented, those responsible for guiding and monitoring implementation (BCSI and the Task Force) are vested in the actions and tasks that are to be elaborated from the strategy document itself. Therefore, the final stages of the consultancy were not aimed at presenting a completed workplan that can be immediately presented to authorities in Barbados and then promptly ignored or partially implemented dependent upon the budgets given by government or the (lack of) understanding of the tasks themselves. BCSI and the Task Force must own the strategy and they themselves need to develop the overall implementation plan by working through the provide outline workplan. It is also important that they undertake these steps to enable them to guide the development of annualised workprogrammes, with budgets to be developed by the individual working groups.

10.1 Strategy!set!up!phase!

Within!the!first!6!months!of!the!Barbados!National!Services!Strategy!(2014A2020),!the!following!task!will! need!to!be!undertaken:!

Task Description Lead Agency Start Date End date Output Budget/resources

1. Undertake necessary steps BCSI/Ministry of Jan 2014 May 2014 High level 0 (existing to establish the high level Labour supervisory resources) implementation structure body under the Social Partnership responsible for, and champion of the National Services Strategy is established (as a new Sub- committee if possible)

2. Undertake necessary steps BCSI Feb 2014 June 2014 Task Force is 0 to constitute the Task Force established and operational

3. Prepare Terms of reference BCSI Feb 2014 May 2014 Mandates and External for Social Partnership Sub- roles of assistance (est committee; Task Force and Institutions B$ 10,000) Technical Working Groups clearly defined

4. Prepare terms of reference, BCSI Mar 2014 June 2014 Mandates and External modus operandi and operational assistance (est. monitoring guidelines for the manual for B$ 20,000) Secretariat (including a implementation management information of the strategy system) in place.

5. Establish Technical Working BCSI Mar 2014 June 2014 Working Groups 0 Groups established and operating

6. Facilitate the completion of BCSI Feb 2014 June 2014 Implementation Dedicated person the action matrices at each workplans at BCSI to facilitate tier of the implementation completed processes structure

7. Establish Management BCSI Apr 2014 Jun 2014 Electronic External Information System as a part Management Assistance (est of the facilitation and information B$50,000) monitoring mechanism systems in place

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10.2 Implementation!JuneADec!2014!!

Based!on!priorities,!it!is!suggested!that!the!second!half!of!2014!is!dedicated!to!elaboration!and!beginning! implementation!of!the!following!strategies:!

1.1!A!(1)!Establishment!of!comprehensive!statistical!system! ! ! ! 1.1!B!(1)!Develop!a!series!of!national!seminars,!conferences!and!workshops! ! 1.1!B!(3)!Media!and!press!exposure!! ! ! 1.1!C!(1)!Systematic!costing!of!services!throughout!the!country! ! ! ! 1.2!B!(1)!Encourage!and!promote!the!use!of!partnerships! ! ! ! 1.2!C!(1)!Training!and!awareness!programme!on!outsourcing!and!contract!management! ! ! ! 1.3!A!(2)!Business!support!clubs!for!small!service!providers! ! ! ! 3.!Sector!Brand!Development!(1A2)!sector!strategies!researched!!

!

10.3 Final!Workshop!

To!assist!BCSI!in!implementation,!a!one!day!workshop!with!BCSI!staff,!BCSI!board!members!and!prospective! Task!Force!Members!is!foreseen!with!the!following!agenda:!

• Overview!of!the!strategy! • Presentation!of!the!implementation!structures! • Next!Steps!(first!months)! • Workshop!priority!strategies! • Workplan!level!

• How!to!elaborate!to!task!level!

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Annexes%

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Annex%A:%%Terms%of%reference%

%

Terms%of%Reference% % Barbados%Services%Sector%Development%Strategy%

1.% Background% The!Commonwealth!Secretariat!is!assisting!the!Government!of!Barbados,!through!the!Ministry!of! Finance!and!Economic!Affairs,!to!formulate!a!services!sector!development!strategy.! ! The!services!sector!contributes!up!to!80%!of!GDP!and!is!therefore!of!critical!importance!to!the! long!term!development!of!the!country.!While!tourism!is!the!main!driver!of!the!services!sector,! there!has!been!a!growing!recognition!of!the!importance!of!nurturing!the!growing!nonA!traditional! services.!The!country’s!National!Strategic!Plan!of!Barbados!(2006A2025)!envisions!in!part!a!‘society! driven!primarily!by!a!services!economy!fuelled!by!a!steady!rate!of!export!growth’.!Its! implementation!is!expected!to!result!in!increased!contribution!of!services!to!employment,!exports! and!investment,!including:! ! • A!rise!in!the!service!export!sectors’!contribution!to!GDP!by!2018!

• Increased!service!export!contribution!to!overall!employment!generation!of!new!careers,! technology!intensive!jobs!and!international!partnerships!

• Consolidation!of!and!increase!in!existing!service!exports!

• Improved!performance!of!the!agriculture!and!manufacturing!sectors!

• Greater!diversification!within!the!service!sector!beyond!tourism!and!financial!services!to! include!new!export!sectors!

• Increased!!penetration!!and!!diversified!!service!!export!!offerings!!in!!existing!!market! destinations!and!accessing!new!and!emerging!nonAtraditional!markets!

• Heavy!investment!in!ICT!as!a!delivery!mode!for!“Borderless!24/7!trading.”!

Nonetheless,!the!strategic!and!institutional!framework!to!underpin!the!realisation!of!these! aspirations!is!lacking.!As!a!result,!implementation!remains!fractured!and!uncoordinated!with!a! consequential!negative!impact!on!the!overall!development!of!the!sector!and!the!country’s! standing!in!international!trade!in!services.! !!

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Government!has!taken!steps!to!negotiate!market!access!for!services!in!several!target!countries.! Barbados!has!signed!the!Economic!Partnership!Agreement!(EPA)!with!the!European!Union!as!part! of!CARICOM.!Negotiations!are!now!underway!for!the!conclusion!of!a!Free!Trade!Agreement!(FTA)! between!CARICOM!and!Canada.!Barbados!has!prioritised!a!number!!of!sectors,!including!business! and!professional!services,!transportation,!creative!and!cultural!services,!construction,!Information! and!Communications!Technology!(ICT).!The!operationalization!of!the!Caribbean!Single!Market! Economy!(CSME)!is!expected!to!further!spur!the!export!of!service!in!the!region.! ! A!number!of!initiatives!have!been!undertaken!to!support!services!trade,!investment,!export! promotion,!international!marketing!and!distribution.!However,!growth!has!been!hampered!by!a! range!of!supply!side!constraints!and!weak!interAagency!coordination.! ! 2.% Scope%of%work% ! The!goal!of!the!project!is!to!foster!servicesAled!growth!in!Barbados!with!the!objective!of! formulating!a!services!sector!development!strategy.!Technical!expertise!is!required!to:! ! a. Review!the!contribution!of!services!to!the!country’s!long!term!development,!including! employment,!job!creation,!productivity!enhancement,!export!and!investment! b. Identify!the!sector’s!capabilities,!opportunities!and!challenges!in!the!context!of!current! developments!in!the!regional!and!international!business!environment,!including!those! with!potential!for!growth!in!the!medium!to!long!term! c. Assess!existing!sectoral!policies!and!strategies,!recommending!how!they!can!better!be! aligned!for!increased!trade!and!investment! d. Propose!policy!instruments!and!programmes!to!support!competitiveness!and!export! development!in!the!services!sector! e. Map!the!mandates,!functions!and!performance!of!various!agencies!in!the!public!and! private!sector!charged!with!facilitating!the!development!of!the!services!sector! f. identify!gaps!and!make!recommendations!on!how!the!institutional!framework!can!be! further!strengthened! g. Review!the!implementation!of!the!key!recommendations!of!the!COMSEC!2005! Marketing!Plan!for!professional!services!and!draw!out!major!achievements!and!lessons! learnt.! h. Formulate!a!national!services!development!strategy!with!timebound!indicators,!outputs,! lead!institutions!and!estimated!resource!requirements.! i. Recommend!a!mechanism,!including!a!Monitoring!and!Evaluation!framework!to! effectively!coAordinate!the!implementation!of!the!strategy! j. Share!international!best!practice!in!services!sector!development.! !! ! !

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The!main!output!is!a!5!year!service!sector!development!strategy!and!implementation!plan.! ! 3.% Deliverables% ! • An!!inception!!report!!following!!the!!first!!mission!!to!!Barbados!!6!!weeks!!from! contract!signature! • A!progress!report!after!12!weeks! • A!draft!final!strategy!and!implementation!plan!to!be!presented!to!a!stakeholder! workshop!after!16!weeks! • A!final!strategy!and!implementation!plan!to!be!submitted!at!the!end!of!the!assignment.! ! 4.% Approach%and%implementation%arrangements% ! The!main!client!is!the!Barbados!Coalition!of!Services!Industries!(BCSI),!a!membership!organization! funded!by!Government!and!representing!over!45!services!associations!with!a!mission!to!develop,! diversify!and!!foster!the!international!competitiveness!of!the!country’s!service!sector.! ! It!is!anticipated!that!the!assignment!will!be!undertaken!through!a!stakeholderAdriven!approach.! The!consultant!is!expected!to!convene!stakeholder!consultations!at!key!stages!of!the!project.!The! project!will!be!supervised!by!the!Trade!Advisor,!Commonwealth!Secretariat.!InAcountry!support! will!be!provided!by!a!Technical!Supervisory!Committee!(TSC)!comprising!representatives!from!the! BCSI,!the!Ministries!of!Finance!and!Economic!Affairs;!Commerce!and!Trade;!Industry!and!Small! Business!Development.! ! The!BCSI!will!provide!office!space!and!provide!the!necessary!administrative!support.! ! 5.% Qualifications%and%expertise% ! • A!degree!in!International!Law,!International!Trade!or!Economics! • At!least!10!years’!experience!in!policy!and!trade!development! • Considerable!!experience!!in!!national!!or!!sectoral!!strategy!!development!!for!services! acquired!preferably!in!developed!or!emerging!economies! • Good!understanding!of!the!cross!cutting!linkages!between!services!and!the!wider! economy!as!well!as!up!to!date!knowledge!of!servicesArelated!policy!issues!in!the! regional!and!international!trade!arena.! • Ability!to!work!with!a!broad!range!of!stakeholders! !! 6.% Level%of%effort% ! 18!person!weeks!of!technical!input!over!a!7!month!period.! ! % % ! (JL/07OFebruaryO2013)% %

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Annex%B:%%List%of%Consultations%

1. ACR!Business!Services!Inc.,!Anthony!Foster! 2. ACR!Business!Services!Inc.,!Celeste!Foster! 3. Association!of!Music!Entrepreneurs,!Darron!Grant! 4. Association!of!Music!Entrepreneurs,!George!Thomas! 5. Attorney!General!Office,!Charles!Piggot! 6. Barbados!Accreditation!Council,!Mary!E.!Bruce! 7. Barbados!Arts!Council,!Gordan!Ashby! 8. Barbados!Arts!Council,!Martina!Pile! 9. Barbados!Arts!Council,!Neville!Legall! 10. Barbados!Arts!Council,!Rasheed!Boodha! 11. Barbados!Association!of!Energy!Professionals,!Erwin!Edwards! 12. Barbados!Association!of!Engineering!Drafting!Technicians,!Hal!Collins! 13. Barbados!Association!of!Insurers! 14. Barbados!Association!of!Journalists,!Jewel!Forde! 15. Barbados!Association!of!Management!Consultants,!Norma!ShorleyABryan! 16. Barbados!Association!of!Medical!Practitioners,!Carlos!Chase! 17. Barbados!Association!of!Office!Professionals,!Janet!Sealey! 18. Barbados!Association!of!Podiatrists,!Michael!Belle! 19. Barbados!Association!of!Professional!Engineers,!Dwayne!Squires! 20. Barbados!Association!of!Professional!Engineers,!Greg!Parris! 21. Barbados!Association!of!Professional!Massage!Therapists,!Andrea!De!Souza! 22. Barbados!Association!of!Reflexology,!Anne!Maxine!Harry! 23. Barbados!Association!of!Rehabilitation!Therapists,!Gabrielle!Clarke! 24. Barbados!Association!of!Security!Contractors!Inc!(BASCI),!Vincent!Price! 25. Barbados!Bar!Association,!Michelle!A.!Knight! 26. Barbados!Chamber!of!Industry!and!Commerce,!Carol!Charles! 27. Barbados!Coalition!of!Services!Industries,!Adrian!Reid! 28. Barbados!Coalition!of!Services!Industries,!Lisa!Cummins! 29. Barbados!Coalition!of!Services!Industries,!Meisha!Clarke! 30. Barbados!Coalition!of!Services!Industries,!Rhonda!Harding! 31. Barbados!Community!College,!Gladstone!A.!Best! 32. Barbados!Community!College,!Roger!Worrell! 33. Barbados!Community!College,!Shirley!HoyteABoyce! 34. Barbados!Contractors!Association,!Richard!Gittens! 35. Barbados!Film!and!Video!Association,!David!Green! 36. Barbados!Film!and!Video!Association,!Andrea!King! 37. Barbados!ICT!Professionals!Association,!Hallem!Hope! 38. Barbados!ICT!Professionals!Association,!Brian!Linton! 39. Barbados!Institute!of!Architects,!Andre!Brathwaite! 40. Barbados!Institute!of!Management!and!Productivity,!Sonia!Greenidge!!

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41. Barbados!Institute!of!Management!and!Productivity,!Stephen!Savoury! 42. Barbados!International!Business!Association,!Henderson!Holmes! 43. Barbados!Investment!and!Development!Corporation,!Modou!Diagne! 44. Barbados!Investment!and!Development!Corporation,!Sonja!Trotman! 45. Barbados!Manufacturers!Association,!Bobbi!McKay! 46. Barbados!National!Standards!Institute,!Anthea!Ishmael! 47. Barbados!Occupational!Therapy!Association,!Neisha!Whitehead! 48. Barbados!Pharmaceutical!Society,!Bandele!Serrano! 49. Barbados!Reiki!Association,!Verity!Dawson! 50. Barbados!Renewable!Energy!Association,!Clyde!Griffith! 51. Barbados!Statistical!Service!(BSS),!Trevor!David! 52. Barbados!Tourism!Authority,!Terry!VanterpoolAFox! 53. Barbados!Vocational!Training!Board,!Dave!Christie! 54. Caribbean!Center!for!Organisational!Excellence(CICMC)!Barbados,!Jerry!Blenman!! 55. Caribbean!Creative!Cluster,!Dr!Carol!Philips! 56. Caribbean!Creative!Cluster,!Paul!Clarke! 57. Caribbean!Export!…! 58. Caribbean!Export!…! 59. Caribbean!Export,!David!Gomez! 60. Caribbean!Export,!Kirk!Brown! 61. Caribbean!Network!of!Services!Coalitions,!Michelle!Hustler! 62. Caribbean!Spa!and!Wellness!Association,!Steve!Andrews! 63. City!and!Guilds,!Guy!Hewitt! 64. Corporate!Affairs!and!Intellectual!Property!Office,!Deborah!Beckles! 65. Craft!Union!of!Barbados,!Undine!Rouse! 66. Expansion!Strategy!Inc,!Jacques!Grysolt! 67. Fashion!and!Design!Association!of!Barbados,!Andrea!King! 68. Garnet!Technologies!Inc,!Brian!Linton! 69. Higher!Education!Development!Unit,!Dr.!Patrick!Rowe! 70. Higher!Education!Development!Unit,!Jean!G!Forde! 71. Human!Resource!Management!Association!of!Barbados,!Wendell!Cumberbatch! 72. Immigration!Department,!Richard!Banfield! 73. Immigration!Department!Roy!Greenidge! 74. Immigration!Department,!Janice!Kellman! 75. Institute!of!Chartered!Accountants,!Reginald!Farley! 76. International!School!of!Cosmetology!and!Trichology,!Wildina!Callender! 77. Invest!Barbados,!Emeline!Taitt! 78. Invest!Barbados,!Ezra!Catwell! 79. Invest!Barbados,!Sandra!Payne! 80. Kaizen!Business!Development!Inc,!Alison!C.!Holder! 81. Kaizen!Business!Development!Inc,!Alison!Price! 82. Leader!of!the!Opposition,!Hon!Mia!Mottley! 83. MFE,!Cherl!O.!Alleyre!

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84. Minister!of!Industry,!International!Business,!Commerce!and!Small!Business!Development,!Hon.! Donville!Inniss! 85. Ministry!of!Agriculture,!Nicole!St!Hill! 86. Ministry!of!Agriculture,!Wynelle!Savory! 87. Ministry!of!Commerce,!Michael!Watson! 88. Ministry!of!Environment,!Foreign!Trade!and!Export!Development,!S.!Sally!Ann!Bagwhan!Logie! 89. Ministry!of!Environment,!Sean!Sealy! 90. Ministry!of!Finance!and!Economic!Affairs,!Antonio!Ali! 91. Ministry!of!Finance!and!Economic!Affairs,!Bertrum!Johusin! 92. Ministry!of!Finance!and!Economic!Affairs,!Joy!Semple! 93. Ministry!of!Finance!and!Economic!Affairs,!Mark!Durant! 94. Ministry!of!Foreign!Affairs!and!Foreign!Trade,!David!Bulbulia! 95. Ministry!of!Foreign!Affairs!and!Foreign!Trade,!Julie!Mapp! 96. Ministry!of!Industry,!International!Business,!Commerce!and!Small!Business!Development,! Permanent!Secretary! 97. Ministry!of!International!Business,!Marlene!Hewitt! 98. Ministry!of!International!Business,!JulieAAnne!Benjamin! 99. Ministry!of!Labour,!Social!Security!and!Human!Resource!Development,!Ricardo!Norville! 100. Ministry!of!Labour,!Social!Security!and!Human!Resource!Development,!Kimberly!Roach! 101. Ministry!of!Labour,!Social!Security!and!Human!Resource!Development,!Orville!Lynch! 102. National!Initiative!for!Services!Excellence!(NISE),!Alicia!Codrington! 103. National!Initiative!for!Services!Excellence!(NISE),!Jacquelyn!PilgrimAJemmott! 104. National!Initiative!for!Services!Excellence!(NISE),!Kim!Tudor! 105. Private!Sector!Trade!Team!of!the!Private!Sector!Association,!Joel!Richards! 106. Productivity!Council,!John!Pilgrim! 107. SJP!Polytechnic,!Hector!Belle! 108. Small!Business!Association!(SBA),!Andrea!Taylor! 109. Small!Business!Association!(SBA),!Peter!Blackman! 110. Small!Business!Association!(SBA),!Lynette!Holder! 111. Spa!and!Wellness!Consultant,!Denzil!Philips! 112. SUPP,!Ian!Drakes! 113. Treasure!Beach!Hotel,!Carolyn!RockACrawford! 114. TVET!Council,!Henderson!Easthowd! 115. TVET!Council,!Marlyn!Rawlins! 116. TVET!Council,!Wendy!McClean! 117. University!of!the!West!Indies,!DawnAMarie!De!FourAGill! 118. University!of!the!West!Indies,!Phil!Rouke! 119. VAT!Division,!Anthony!Gittens! 120. VAT!Division,!Hazel!Gittens! 121. VAT!Division,!Stacey!Goodridge!

%

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Annex%C:%References%

1. Information!Economy!Report!AThe!Software!Industry!and!Developing!Countries!(2012)!UNCTAD!! 2. Global! Call! Center! Report:! International! Perspectives! on! Management! and! Employment! (2007)!! David!Holman,!Rosemary!Batt,!and!Ursula!Holtgrewe! 3. World!Construction!(2012)!Davis!Langdon! 4. A!fresh!look!at!procurement!(2011)!By!Clinton!Anderson,!David!Fleisch,!Greg!Gerstenhaber!and!Sam! Thakarar! 5. Art!Consultants!List!(2012)!Caroll!Michels! 6. BAEP!Brochure!(2013)!The!Barbados!Association!of!Energy!Professionals! 7. Barbados!Country!Meta!Data!(2013)!World!Bank! 8. Barbados!Economic!and!Social!Report!2011!(2012)!Ministry!of!Finance!and!Economic!Affairs! 9. Barbados!Growth!and!Development!Strategy!(2013)!Ministry!of!Finance!and!Economic!Affairs! 10. Barbados!Trade!Policy!Review!(2008)!World!Trade!Organisation! 11. BCSI!Annual!Report!2011A12!(2012)!BSCI! 12. BCSI!Brochure! 13. BCSI’s!National!Mandate,!Challenge,!Opportunities!and!Execution!Strategy!2013A17!(2013)!BCSI! 14. Becoming!a!Corporate!Art!Consultant!(2010)!Barbara!Markoff! 15. Bruhn,Miriam,!Dean!S.!Karlan,!and!Antoinette!Schoar.!(2012)!The!Impact!ofConsulting!Services!on!Small! and!Medium!Enterprises:!Evidence!from!a!Randomized!Trial!in!Mexico.! 16. Business!of!Art!(2000)!Lee!Caplin! 17. BVI!Offshore!Advantages!(2013)!Fidelity!Corporate!Services! 18. Caribbean!IT!Talent!Supply:!Can!Dominican!Republic,!Jamaica!and!Barbados!Go!Higher!Value?!(2011)! NearshoreAmericas! 19. Caribbean!Management!Consulting!Industry!Survey!(2010)!Nathan!EME!for!Caribbean!Export! 20. Caribbean!Tourism!Statistics!2012!(2013)!Caribbean!Tourism!Organization! 21. City!and!Guilds!Qualifications!Highlights!(2013)!City!&!Guilds!Caribbean! 22. Classification!of!Services!(2009)!Peter!Pariag!at!Regional!Symposium!on!Services! 23. Continuous!Household!Labour!Force!Survey!(2012)!Barbados!Statistical!Service! 24. Corbett,! J! (2008),! ‘Services! Trade! Liberalisation! in! the! ASEAN! Economic! Community! and! Beyond’,! Economic!Research!Institute!for!ASEAN.! 25. Creative!Sector!in!CARICOM!(2007)!Keith!Nurse!for!CARICOM!Secretariat! 26. Davies,!K.!et.!al.!(2011).!Impact!of!Farmer!Field!Schools!on!Agricultural!Productivity!and!Poverty!in!East! Africa.!World!Development!Volume!40,!Issue!2,!September!2011.! 27. Development! of! an! Asset! Map! of! Professional! Services! in! Barbados! (2012)! Proposal! from! KaiAzen! to! BCSI! 28. Draft!Industry!Standard!for!Spa!and!Wellness!Entities!in!CARIFORUM!Territories!(2013)!University!of!the! West!Indies! 29. Economic! &! Trade! Policy! Dimensions! of! the! Creative! Sector! in! CARICOM! (2009)! Keith! Nurse! for! CARICOM!Secretariat! 30. Economic!Growth’,!World!Bank!Policy!Research!Working!Paper!5606,!World!Bank.! 31. Education!at!a!glance!(2007)!OECD! 32. Entertainment!Services!Report!(2001)!Allison!Demas!and!Ralph!Henry! 33. European!Information!Technology!Observatory!(EITO)!Survey!(2011)!

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34. Global!Energy!Efficiency!Benchmarking!!(2010)!UNIDO! 35. Global! Infrastructure! &! Construction! Themes! for! 2013! and! Beyond! (2013)! Business! Monitor! International! 36. Global!Infrastructure!&!Construction!Themes!for!2013!and!Beyond!(2013)!Marina!Petroleka,!Business! Monitor!International! 37. Global!IT!Services!A!“PerAemployee”!Metrics!are!Key!to!Quality!of!Growth!(2011)!Morgan!Stanley! 38. Global!Media!and!Entertainment!Outlook!2011A2015!(2010)!PWC! 39. Global!Spa!Summit!(2010)!SRI!International! 40. Global!trends!in!vocational!education!and!training!(2011)!CISCO!RESEARCH! 41. Goswami,! AG,! A! Mattoo! and! S! Sáez! (2012),! Exporting! Services:! A! Developing! Country! Perspective,! World!Bank,!Washington,!!!DC.! 42. ICT!solutions!and!labor!productivity:!evidence!from!firmlevel!data!(2007)!JuhaAMiikka!Nurmilaakso! 43. Impact!of!Quality!Management!in!the!US!(2008)!Deloitte's! 44. India’s!ITeS!and!BPO!Industry!(2013)!Dunn!and!Bradstreet! 45. Information!Economy!Report!(2012)! 46. International!Art!Market!in!2011,!Observations!on!the!Art!Trade!over!25!Years!(2012)!The!European! Fine!Art!Foundation!(TEFAF)! 47. International!construction!cost!survey!(2012)!Turner!and!Townsend! 48. International!Trade!Centre!(2006),!Successful!Services!Exporting:!Programme!Implementation!Guide!for! Trade!Support!Institutions!!!(TSIs),!!!ITC!!!UNCTAD/WTO,!!!Geneva.! 49. ITABPO!Sector!in!India!(2012)!Nasscom!Strategic!Review!! 50. Knowledge!Process!Outsourcing!(KPO)!Services!(2013)!KPOExperts! 51. Language!Travel!Magazine!(2011A3)! 52. Macrory,! P! and! S! Stephenson! (2011),! Making! Trade! in! Services! Supportive! of! Development! in! Commonwealth! Small! and! LowAincome! Countries,! Economic! Paper! Series! 93,! Commonwealth!!!! Secretariat,!!!London.! 53. Managing&Trade&Associations&(2003)&by&Mark&Boléat&for&Trade!Association!Forum! 54. Manifesto!of!the!Democratic!Labour!Party!(2013)! 55. Matto,!A!and!P!Sauvé!(2003),!Domestic!Regulation!and!Trade!in!Services:!Looking!Ahead,!World!Bank,! Washington,!DC.! 56. Meetings!and!Events!Market!(2012)!Travel!Management!Institute! 57. !Mistry,!PS!and!N!Treebhoohun!(2009),!The!Export!of!Tradeable!Services!in!,!Commonwealth! Secretariat,!London.! 58. Monthly!Tourism!Statistics!(2013)!Barbados!Tourism!Authority! 59. National!Strategic!Plan!of!Barbados!2006A2025!(2007)!Ministry!of!Finance!and!Economic!Affairs! 60. National!Tourism!Host!Programme!(Main!Report)!(2012)!May!Hinds!Consulting!for!Barbados!Tourism! Authority! 61. Promoting!CARIFORUM!Services!Exports:!High!Potential,!But!Many!Challenges!(2012)!Philip!Williams!for! Caribbean!Export! 62. Report!on!Draft!Industry!Standards!for!Spa!and!Wellness!Entities!in!CARIFORUM!(2013)!BCSI! 63. Sector!Competitiveness!Studies!A!Competitiveness!of!the!EU!SMEs!in!the!ICT!services!industry!(2009)! ECORYS! 64. Services!Component!of!the!EPA!(2012)!Allyson!Francis!

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65. Services!Scoop!January!Edition!(2013)!Caribbean!Network!of!Services!Coalitions! 66. Strategic! Marketing! Plan! for! the! Promotion! of! Professional! Services! Exports! (2007)! EME! for! the! Caribbean!Export!and!Commonwealth!Secretariat! 67. The!World!Bank.!KickStart!Irrigation!Pumps:!Adapting!Technology!to!Development!Challenges.! 68. Treebhoohun,!N!(Ed.)!(2011),!Promoting!IT!Enabled!Services,!Lessons!from!the!Commonwealth,!No.!3,! Commonwealth!!Secretariat,!London.! 69. U.S.!Manufacturing!in!International!Perspective!(2013)!Congressional!Research!Service! 70. UN!Central!Product!Classification!(CPC)!! 71. UN!International!Standard!Industrial!Classification!of!All!Economic!Activities!(ISIC).! 72. UNCTADSTAT!database!(2013)! 73. Valuing!the!events!industry!for!economic!growth!(2013)!The!Raconteur! 74. Williams,!PAW!(2008),!‘Promoting!CARIFORUM!Services!Exports:!High!Potential,!But!Many!Challenges’,! Caribbean!Export!Development!Agency.! 75. World!Bank!(2009),!‘What!role!should!governments!play!in!broadband!development?’!Paper!prepared! for!infoDev/OECD!workshop!on!‘Policy!Coherence!in!ICT!for!Development’,!Paris.! 76. World! Music! and! the! Global! Music! Industry:! Flows,! Corporations! and! Networks! (2012)! Dave! Laing! Institute!of!Popular!Music,!University!of!Liverpool! 77. WTO!Services!Sectoral!Classification!List! 78. Promotion! Of! Greater! InterASectoral! Linkages! With! The! Tourism! Sector! In! The! Barbados! Economy! (2013)!Clyde!Mascoll!for!Barbados!Private!Sector!Association! 79. Policy!Framework!To!Incentivize!The!Micro!Business!Sector!In!Barbados!(2013)!Lindsay!Holder!Prepared! for!The!Barbados!Private!Sector!Association! 80. Study!of!the!Professional!Services!Sector!in!Barbados!(2013)!Kaizen!Inc!for!BCSI! 81. Caribbean!Management!Consulting!Industry!Survey!(2010)!EME!for!Caribbean!Export! 82. The!National!Tourism!Host!Programme!(2012)!Mayhinds!Consulting!for!Barbados!Tourism!Authority! 83. Central!Bank!9!Month!Report!(2013)!Central!bank!of!Barbados! 84. Performance!Assessment!Framework!(2012)!Ministry!of!Education!and!Human!Resource!Development! &!Ministry!of!Labour!and!Social!Security! 85. Barbados!Human!resource!Development!Strategy!2011A2016!(2011)!Ministry!of!Education!and!Human! Resource!Development!&!Ministry!of!Labour!and!Social!Security! ! ! ! !

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Annex%D:%Acronyms%Used%in%this%Report%%

ACP!! African,!Caribbean!and!Pacific!States!

AMC! Association!Management!Companies!

B$! Barbados!Dollars!

BCC! Barbados!Community!College!

BCSI! Barbados!Coalition!of!Services!Industries!

BIDC! Barbados!Investment!and!Development!Corporation! bn! Billion!

BPO! Business!Process!Outsourcing!

BPSA! Barbados!Private!Sector!Association!

BRICS! Emerging!markets!of!Brazil,!Russia,!India,!China!and!South!Africa!

CARIBCAN! CaribbeanACanada!Trade!Agreement!

CARICOM! Caribbean!Community!

CBI! Caribbean!Basin!Initiative!

CET! Common!External!Tariff!

CROSQ! CARICOM!Regional!Organisation!for!Standards!and!Quality!

CSME! Caribbean!Single!Market!and!Economy!

DDA! Doha!Development!Agenda!

ELT! English!Language!Training!

EPA! Economic!Partnership!Agreement!

FATF! Financial!Action!Task!Force!on!Money!Laundering!

FTE! FullAtime!Equivalent!

GATS! General!Agreement!on!Trade!in!Services!

GDP! Gross!Domestic!Product!

IBC! International!Business!Companies!

ICT! Information!Communications!Technology!

ISIC! International!Standard!Industrial!Classification!of!All!Economic!Activities!

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IT! Information!Technology!

ITA! Information!Technology!Agreement!

KPO! Knowledge!Process!Outsourcing!

m! Million!

MFN! Most!Favoured!Nation!

MGDS! Medium!Term!Growth!and!Development!Strategy!2013A2020!

MT! Medical!Transcription!

NISE! National!Initiative!for!Services!Excellence!

OECD! The!Organisation!for!Economic!CoAoperation!and!Development!

SME! Small!and!Medium!Sized!Enterprises!

TVET! Technical!And!Vocational!Education!and!Training!

US$! US!Dollars!

VAT! Value!Added!Tax!

WTO! World!Trade!Organization!

Barbados&Services&Sector& ! 150! ! www.ctaeconomic.com! Development&Strategy! ! !