The Caribbean is F*cked Series (Barbados)
Since Barbados elected a WEF team member motivated by utmost authoritative control, everything has been downhill. They have been more focussed on getting slavery reparations, bailouts and climate policy than the health of the economy & debts. Barbados has only a population of 290,000 people and years ago was a place that many Canadians found refuge offshore. Barbados was always the most wealthy, prosperous, safest holiday location compared to their neighbours. But that was yesterday. Today Debt to GDP sits at an amazing 139%, the economy contracted 14.1% in 2020 by shutting off their borders with no real return and regulations are becoming extreme. During the whole pandemic, it was the largest economic downturn since the 1930s Great Depression for the 432 square kilometer country with governance resembling Nazi Germany.
As part of our series outlining that the Caribbean is in dire straits, we go over some frightening details about Barbados that you may not be aware of now but it should change your mind of the island nation at least for the foreseeable future.
The inept government wants to half the debt relative to its GDP to 60% by 2035. Apparently they are unfamiliar about the 90% threshold for their Keynesian multiplier as they continue to spend and spend on borrowed money from multilateral financial organizations. The spending outweighed tax revenues by 4.8% in 2021/2022 with the current account deficit touching 28% in late 2022. In fact, the only time in the last 25 years Barbados did not run a budget deficit was in 2019. In 2023, the national debt of Barbados amounted to around 7.33 billion U.S. dollars, they have never had a recent year of lending beyond borrowing & the current account balance is negative 521 million dollars as of 2024.
The spending & debts are so high that Barbados ended its four-year International Monetary Fund (IMF) Extended Fund Facility (EFF) just to immediately partake in the
Fund’s Resilience and Sustainability Trust (RST) programme with an accompanying
36-month EFF with the IMF.
How about their banking sector? It has long been a place for Canadians to set up offshore bank accounts and offshore companies. Well, they’re indebted to their ears too.
Recently, reserves contracted by 1.7% to US$ 2.806 billion, representing less than 1 year of import cover. The sharp increase in global interest rates contributed to losses in the investment portfolio of the Central Bank of Barbados and in turn, reduced the value of reserves by US$ 255 million (you’re not the only one).
Unemployment is on its way back down to 9.9% (reported) but touched 18% (reported) as they sabotaged a staple in their economy, tourism (accounting between 17-42% of their economy).
General Dysfunction
Barbados continues to grapples with water shortages every year. Due to scant surface water, the country depends almost entirely on groundwater. Additionally, soil erosion continues to be a problem in many parts of the island, but is especially evident in the Scotland District, located in the northeast portion of the island. The geological and topographical features of this area predispose it to landslides. No domestic solutions have been implemented & a complete reliance on imported food remains.
Health wise, the incidence of chronic, noncommunicable diseases has been rising, which in turn has placed a significant economic burden on the country over the last
30 years. The Ministry of Health estimates that in 2030, 86.3% of deaths in Barbados will be caused by this group of diseases, even despite diabetes and heart disease growing at a rapid rate as well. To add insult to injury, the shortage of human resources for health services constitutes one of the most significant challenges for the country. Currently, health professionals, especially nurses, are recruited from other Caribbean countries, Africa, and Southeast Asia who tend to chase larger paycheques elsewhere.
Brilliant Leaders
Barbados is a lot lower for the region in terms of poverty, but nevertheless with a growing concern there has been a government focus to reduce poverty, inequities (where have you heard this before?) and create a social protection system to promote social cohesion and socio-economic development. Prime Minster Mia Amor Mottley summed her intentions by saying “We must first meet people where they are …and stop them from being poor”.
Barbados are currently managing a debt program with the International Monetary Fund who are their go-to ATM but the number of social programmes have exploded. This may be one reason why they have a goal of running their economy on 100% renewable energy by 2030 (less than 7 years). They have plans to offer education, training and employment in the fields of renewable energy to foster this transition but they better start studying because over 93% of their energy comes from fossil fuels at present. Barbados are not particularly known for having any university or institution worthwhile either. What are some ways they are going to make this transition possible. Let’s take a look:
Let’s try to make sense of this–> Storms, hurricanes and floods cause a problem for our infrastructure. So, our buildings could benefit by focusing on transport (?) which can then raise the value of our tourism industry. But, tourism is bad for green house gas which is something we’re trying to get rid of, but, not as bad as natural weather events? Rising sea levels? Nah we just need some new busses.
When asked what they’re going to do to get the economy back with their new spending facilities, the answer–>
“We are advancing our ambitious climate policy agenda to increase resilience to
climate change and green the economy. Ongoing efforts to incorporate climate policy goals in the fiscal process, including by discussing climate change risks in the budget and enhancing public procurement, are welcome”. Unbelievable.
What else could they do to focus on climatology? Gender, of course
This stuff would have been material in a Saturday Night Live skit just 10 years ago. Even the IMF quotes in their 2023 Barbados country report: “Barbados is implementing an ambitious homegrown economic reform and climate policy”.
As I mentioned, they destroyed their economy (which is mostly tourism) by having the most rigid, dogmatic, extreme Covid hysteria measures around. A lot of these measures lingered longer when it was clear the gig was up.
Barbados introduced a strict curfew, deliberately targeted touristic businesses and demanded the medicine with a quarantine for a long while. The 24-hours curfew is something China would do… which really isn’t that shocking because they have moved right on into the country once the British Crown has pulled out. You know, the all trust’y criminal communist bunch with their all-loving loans.
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China’s influence in the region may be felt beyond economics:
The Organisation of Eastern Caribbean States (OECS) has struggled to maintain a strong press freedom record despite editorial censorship and growing political influence.
Offshore Business Hub
Hardly. Doing Business 2020 have ranked Barbados as the 128th best place in the world to do business. Their best ranking of these were resolving insolvency (may have some practice), paying taxes and starting a business (ranked 34th, 96th and 102nd in the world, respectively).
Their worst rankings were enforcing contracts, dealing with construction permits and getting credit (170th, 153rd and 152nd in the world). It’s clear they do not have an attraction to choose opening a business here anymore there is than opening one in Mongolia or Kyrgyzstan.
In lockstep with the other islands, they have initiated their own economic substance requirements that take the same shape, however they are slightly more stringent on their presence & spending requirements. If you have questions on this check out Open Door Consultancy HERE. In fact as part of their requirements to get more bailouts from the IMF is to develop liquidity management instruments and take steps to strengthen the AML/CFT framework–more bureaucracy & surveillance for you.
New! The Barbadian Prime Minister announced changes to the corporate tax regime, considering OECD Pillar 2 of the base erosion and profit shifting (BEPS) initiative. The announcement includes: an increase in the corporate tax rate to 9 percent for all corporations effective Jan. 1, 2024; & the implementation of a qualified domestic minimum top-up tax (QDMTT) of 15 percent, effective Jan. 1, 2024
It’s even worse than that though. Look what the Central Bank of Barbados has to say about having freedom over your own funds:
Exchange Control practices and procedures currently in force in Barbados. You are also reminded that some regulations are liable to change as the economic situation demands.
Our guide indicates the steps that should be taken to meet Exchange Control requirements in the vast majority of cases. In this way, the time previously spent by Central Bank and commercial bank staff in explaining simple procedures could be used to speed up the processing of your applications.
It is hoped that users of the Central Bank’s website will come to realize that Exchange Control is not a Government invention for the inconvenience of the general public, but a set of effective measures for the protection of the economic interest of all Barbadians.
It is hoped that the citizens will realize that when we monitor all their transactions to be permitted, frozen or worse yet seized & they’ll say “well this is to ensure my economic interests are protected”. You can’t make this stuff up.
Central Bank of Barbados will no longer set a Minimum Rate on Savings Deposits saying it will no longer stipulate a minimum rate of interest on savings deposits at commercial banks. While this is a benefit that the Central Bank is pulling out of the economy, the end result is that you get 0% on your deposits.
Crime
As with its Caribbean neighbours, the ready availability of firearms has been blamed for a sharp rise in murders in Barbados in 2022. Of the 43 homicides reportedly registered, over 75% were committed with a gun.
This is despite Barbados police claiming success in an ongoing gun retrieval campaign, with 75 weapons seized between January and September 2022. This was up from 36 retrieved in all of 2021. A persistent increase in murders, despite more weapons being collected, can only mean one thing: There’s no shortage of firearms entering Barbados
Since destroying the economy and trying to puppet the way back to something resembling normal by doing all the wrong things–gang life has become a viable option for a growing number of residents. Gang increases, increased and diversification of production of cocaine, fentanyl and other drugs, the effects of government lockdowns and the circulation of weapons in the region are all driving factors contributing to the spread of violence.
Just the other week: https://barbados.loopnews.com/content/armed-robbers-wanted-after-hitting-bar-and-entertainment-spot-692019
Remember I mentioned about Press Freedom dwindling before? Barbados may be the one bringing the scores down:
Nation News photo journalist Christoff Griffith was killed on June 22 in Bishop’s Court Hill, Saint Michael, after being assigned to report on a murder that took place at the abandoned residence of Barbados’ Anglican bishop
Dictator Bill
Under the Utilities Regulation (Amendment) 2023, the bill gives the sole power to the Prime Minister to cut off the power to anybody on the island.
The Minister may, on the recommendation of the Commission or, on his own initiative, exempt the supply of electricity from a renewable energy resource by a renewable energy producer from the application of all or any of the provisions of this Act, where the Minister is satisfied in all circumstances that the exemption is required in the
public interest.
The immediate feedback on the internet reads:
–Stop this bill it’s undemocratic. Do not pass this legislations it gives one Minister to much power
–This Bill is counter to much of what we hold dear as a democracy. The true players being facilitated says it all.
–This Bill is undemocratic. It subverts the power of the regulators in addition to the will of the people. This needs to be revoked and regulatory power remain in the hands of regulators.
–This Bill Amendment to grant unequivocal rights to a single Minister, makes it apparent that Barbados has moved to Republic status.
–To the Clerk of Parliament, please let it be known to the Speaker of the House, the President of the Senate, the Senators and the Members of
Parliament that I DO NOT support the provisions in this bill that gives the minister unilateral power to make decisions without the approval of the FTC
–To the Clerk of Parliament, I am concerned that this bill does not have a time limit or any restrictions or conditions at all. It is all left up to a single person, the same.person with the power it is granting. I implore that this bill be revisited and amended for the good of the Barbados people. After all, absolute power corrupts absolutely.
Closing
The British features that made Barbados a great offshore & holiday destination are all but gone. Even Canadians under the Trudeau regime no longer wish to move down to Barbados; instead they’re frequenting Mexico and Costa Rica. Collectively, you’re seeing higher regulation, affiliation with globalist agencies, higher taxes, a weakening economy (a perfect inverse correlation to crime) and other trends. Barbados absolutely should not be on your list of countries. You will receive no banking, business, investment, residential or even travel benefits from this country. Unfortunately, it had it’s day and it’s just one of many in the Caribbean who are going to vanish from relevance.
I’ll go so far to make a Prediction: Barbados will be used by the WEF central planners as a test-bed for their policy; like a child with a magnifying glass in the sun to see how the ants react. Barbados’ woke policy of D.I.E., obsession about their country’s origins and reliance on MMT monetary policies will crush any entrepreneurial, free market spirit that remains and they will require endless bailouts from their true overlords. At this point, their entire economic existence is to sing whatever song the IMF wants to hear in order to get another round of bailouts.
Things better change around for them, soon. As they say, “Hard ears yuh won’t hear, own way you gine feel.” or something like that…
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