Foreign investors thinking of putting some of their money into Barbados’ economy have been given sound advice: don’t worry about political instability.
Yes, the country’s economy is experiencing tough times that can be traced directly to the global financial meltdown and the deep global economic recession – the worst since the Great Depression of the 1930s. Also true, the job facing the ruling Democratic Labour Party as it seeks to consolidate the country’s relatively poor fiscal situation “will not be easy”.
But when it comes to politics the system is solid and transparent and seemingly working well.
That bit of advice to international financiers came from a credible Wall Street source – Standard & Poor’s (S&P) in New York.
The internationally known credit-rating firm told investors, international financial institutions and others interested in Barbados that Prime Minister David Thompson was personally popular and enjoyed wide support across the land, while the Opposition led by Mia Mottley was doing what it was mandated to do – keeping the Government in check.
Here’s how S&P put it in a recent detailed analysis that’s being circulated on Wall Street in New York, London, Paris and elsewhere.
“The Barbados Labour Party, the Opposition party led by Mia Mottley, plays an important role in ensuring checks and balances in the governance and policy-making process of the ruling party. Despite slow progress in resolving the Colonial Life Insurance Company (CLICO) issue and last year’s fiscal slippages, Prime Minister David Thompson remains popular, enjoying strong broad-based popular support.”
But S&P didn’t stop there.
“Generally strong institutions, political stability, a well-educated labour force and a strong social contract provide important support to the ratings,” determined by S&P.
Barbados has a foreign currency credit rating of BBB/Negative. Its domestic, local currency also stands at BBB.
As evidence of the stability and nation’s success, S&P cited the World Bank’s governance indicators which ranked Barbados high in voice and accountability (the 88th percentile); political stability at 87th; regulatory quality, 74th; rule of law 89th and control of corruption 86th.
