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Barbados Growth and Development Strategy (2013-2020)

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Barbados Growth and Development Strategy (2013-2020) Barbados Medium-Term Growth And Development Strategy 2013-2020 This Medium-Term Growth and Development Strategy MGDS 2013-2020 was prepared by The Economic Affairs Division Ministry of Finance and Economic Affairs in collaboration with The Finance Division Ministry of Finance and Economic Affairs,, The Central Bank of Barbados, Government Ministries and Select Departments & in consultation with the Private Sector Association and Labour Representatives i Barbados Medium-Term Growth And Development Strategy 2013-2020 FOREWORD Since 2008, the Barbadian economy has been continually challenged by the negative impacts of the most protracted and cataclysmic global economic downturn in its history. Consequently, the social partnership, which comprises the Government, the private sector and the labour representatives as well as civil society, has unanimously agreed on the need to act expeditiously to effect fundamental changes that will jumpstart the process of Hon. Christopher P. Sinckler, MP. Minister of Finance and Economic sustainable recovery within the Barbadian economy. Affairs This growth and development strategy 2013-2020 charts a clear direction for our sustainable green economic growth and development priorities over the next eight years. It defines government’s plan to institute a sequence of managed structural adjustments and reforms which are critical to the country’s sustainable economic, human and social development over the planning horizon 2013-2020. The theme of Barbados’ Growth and Development Strategy (BDGS) 2013-2020 is “Adjustment, Reform, Recovery and Sustainability”. Immediate adjustment is needed to reduce the fiscal deficit and the debt-to-GDP ratio to more sustainable levels, while growing the foreign reserves. Reform speaks to the necessary policies and programmes which must be implemented in the short to medium-term in order to strengthen Barbados’ economic and social fundamentals. The positive economic impacts of the adjustment and reform activities will facilitate our recovery and return to a trajectory of economic growth. The strategy proposes that growth should be managed on the basis of annual targets set by the social partnership, with the progress and achievement of the aforementioned targets being closely monitored and controlled. Sustainability of our economic growth and development over the 2013-2020 period will be assured through this nation’s commitment to productivity, efficiency, competitiveness and service excellence. The policies, strategies and projects outlined in the BGDS 2013 -2020 require us all, to share in the burden of fiscal adjustment, structural reform and the restoration of growth and sustainability. However, even as we make this transition to new circumstances, we must ensure that we take strategic advantage of the opportunities that will arise to aid us in continuing to protect the poorest, indigent and most vulnerable members of our society. History will be unforgiving if we fail to put our house in order. Together, the Barbadian family, in strength and unity, can ensure that Barbados' success and future as a renowned progressive and unique small middle income developing nation state, is secured. We must therefore fully and immediately commit ourselves to reaping the economic and social benefits from this blueprint of action as we move forward into the 2013-2020 period. The Hon. Christopher P. Sinckler, MP Minister of Finance and Economic Affairs ii Barbados Medium-Term Growth And Development Strategy 2013-2020 Acknowledgement The Economic Affairs Division of the Ministry of Finance and Economic Affairs takes this opportunity to express its most sincere gratitude for the excellent collaborative efforts undertaken by the representatives for the Social Partnership and Civil Society toward the completion of Barbados’ Medium-Term Growth and Development Strategy 2013-2020. This collaborative effort is testimony of the spirit of ‘Team Barbados’ in which tripartism and consensus was in full flight to ensure that the national blueprint for adjustment, reform, recovery and sustainability was crafted. Firstly, the Ministry wishes to thank the members of the Barbados Workers Union, led by Sir. Roy Trotman; the Coalition of Trade Unions and Staff Associations of Barbados, led by Mr. Cedric Murrell; the Private Sector Association, led by Mr. John Williams; Non-Governmental Organisations; Development Partners and Agencies (in particular, the Central Bank of Barbados); Permanent Secretaries and staff of Government Ministries and Departments, Statutory Bodies who all gave their invaluable assistance to the preparation of Barbados’ Medium-Term Growth and Development Strategy 2013-2020. The Ministry also wishes to thank the persons attending the National Consultation held on June 27, 2013 for the comments made on the draft MGDS 2013-2020. In addition, we wish to express our gratitude to the members of the Council of Economic Advisors, led by Sir. Frank Alleyne and the members of Joint Economic Group. Special mention must be made to the very productive and exceptionally dedicated staff of the Government Printery who as usual, worked beyond the call of duty, to ensure that this document was printed in a timely fashion. In addition, we wish to acknowledge PrintMax, who assisted in the printing of the draft MGDS 2013-2020. I wish to express gratitude to the staff of the Economic Affairs Division; firstly to Mr. Patrick McCaskie, Director of Research; Mr. Derek Gibbs, Chief Economist; Senior Economists; Mr. Mark Durant, Mr. Bertram Johnson and Miss Kimberley Waithe and; Economists; Mr. Antonio Alleyne, Miss Rhea Clarke-Mason, Mrs. Kelly Hunte and Miss Kelza Scantlebury. Also, the members of our administrative and support staff namely; Mrs. Yvette Samuel, Mrs. Heather Alleyne-Prescott, Miss Astrid Bovell, Miss Rena Headley, Miss Joycelyn Blackman, Miss Michelle Allsopp, Mr. John King, Miss Leia Forde, Mrs. Charmaine Clarke-Corbin, Miss Nakeisha Harris, Miss Roslyn McCollin and Mr. Eustace Inniss. Dr. Louis Woodroffe Permanent Secretary Economic Affairs Division Ministry of Finance and Economic Affairs iii Barbados Medium-Term Growth And Development Strategy 2013-2020 ABBREVIATIONS APD Air Passenger Duty BAT Barbados Action Team BCCI Barbados Chamber of Commerce and Industry BDS Business Development Services BSS Barbados Statistical Service BTA Barbados Tourism Authority BWU Barbados Workers Union CDB Caribbean Development Bank CEA Council of Economic Advisors CBB Central Bank of Barbados CNCD Chronic Non-Communicable Diseases CSME CARICOM Single Market and Economy CTUSAB Coalition of Trade Unions and Staff Associations of Barbados CXC Caribbean Examination Council CZMU Coastal Zone Management Unit DARE Drug Abuse Resistance Education DSA Debt Sustainability Analysis EE Energy Efficiency EEP Economic Empowerment Plan EG Economic Group EGFL Enterprise Growth Fund Limited EPA Economic Partnership Agreement EPC Economic Policy Committee EU European Union EWG Efficiency Working Group FA Fund Access FY Fiscal Year GC Governance Committee GDP Gross Domestic Product GG Growth Group GIS Government Industrial School GOB Government of Barbados HACCP Hazard Analysis Critical Control Point HRD Human Resource Development HYPE Helping Young Persons Excel IADB Inter-American Development Bank IC Infrastructure Committee ICM International Capital Market ICT Information and Communications Technologies IFI International Financial Institution IXP Internet Exchange Point JEG Joint Economic Group LEM Local Economic Model iv Barbados Medium-Term Growth And Development Strategy 2013-2020 M&E Monitoring and Evaluation MAFFW Ministry of Agriculture, Food, Fisheries and Water Resource Management MCS Monitoring, Control and Surveillance systems MDG Millennium Development Goal MGDS Medium-term Growth and Development Strategy MIS Market Information System MSME Micro Small and Medium-Sized Enterprises MTCT Mother-To-Child Transmission MTFS Medium Term Fiscal Strategy NCSI National Customer Satisfaction Index NDAC National Debt Advisory Committee NEEX NISE Employee Engagement Index NIS National Insurance Scheme NISE National Initiative for Service Excellence ODA Official Development Assistance OPSR Office of Public Sector Reform PBL Policy Based Loan PEU Project Executing Unit PIU Public Investment Unit PPA Participatory Poverty Assessment PPP Private Public Partnership PRDS Performance Review & Development System PS Private Sector PSIP Public Sector investment Programme QEH Queen Elizabeth Hospital SPC Social Policy Committee v Barbados Medium-Term Growth And Development Strategy 2013-2020 TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................... 1 INTRODUCTION .................................................................................................................................................. 4 CHAPTER 1: ECONOMIC AND SOCIAL OVERVIEW OF BARBADOS ........................................................ 5 1.1 OVERVIEW - DOMESTIC DEVELOPMENTS ................................................................................. 5 1.1.1 Real Sector ........................................................................................................................................ 6 1.1.2 Fiscal Sector...................................................................................................................................... 8 1.1.3 Monetary Sector ...............................................................................................................................
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