WHILE THE POLITICAL FORUM in this country of ours can be gripping and quite intriguing to say the least, we cannot afford to lose focus of the critical issues in the build-up to our 50th year of Independence.
Now more than ever with the ongoing volatility in various parts of the world and our own challenges with pockets of social disorder, it is critical that our efforts as leaders – in business, politics, civil service, civic and religious life converge toward the relentless social and economic development of our people.
There is no doubt that over the last 49 years we have come a great distance as a country but the road ahead beckons and we must collectively chart a course worthy of the foundation and building blocks laid by those who have preceded us.
Barbados has made strides since 1966 in the diversification of our economy. In 1966, sugar production and export accounted for 20 per cent of gross domestic product (GDP) and 28 per cent of employment. At the time financial services didn’t register as an industry and activity in this area was limited mainly to mainstream banking and basic insurance provision. During 1966, Barbados saw the arrival of 79 000 long stay visitors and 51 000 cruise passengers. Those numbers are now achieved in a small fraction of the year.
Interestingly, some sectors have maintained a relatively unchanged percentage contribution to GDP over the years. Of course, as the GDP dollar value has slowly grown over the last 49 years, the percentages naturally represent higher contributions to national wealth from some sectors including construction, distribution and manufacturing.
I would make special mention of two developmental effects in business which are widely manifested today, both of which have socio-economic impacts to which we have become largely accustomed. When we examine the number of companies and their sizes operating both in the formal and informal sectors today, the proliferation of entrepreneurial activity is apparent. At Independence, a handful of large companies would have dominated the corporate landscape with micro-enterprise servicing mainly rural communities. The very history of the Barbados Chamber of Commerce and Industry (BCCI), formerly the Commercial Hall, now approaching its 190th year, mirrors this transformation.
In 1910, the small network of businessmen governing the Chamber would have petitioned the Government at the time to allocate funds for the promotion of the island of Barbados as a health resort in the London newspapers, and voila, we have the formal birth of modern day tourism marketing.
Those men would have overseen the development of traditional businesses related to sugar and rum, and the basic trade of goods. Today the BCCI boasts a wide cross sectoral membership of 272 businesses, 85 per cent of which employ between one and 250 persons. We have evolved with the times but often find ourselves, like in days of yore, still petitioning Government to spend money on promising sectors.
The development of small and medium sized businesses over the years, supported by strides in education of our citizens has helped to build a middle class which has been the envy of many developing nations.
The protection of the lower and middle socio-economic groupings is achieved through strengthening of the private sector with its attendant job creation. It also requires a more supportive tax regime which the BCCI continues to encourage, despite some disheartening recent changes. The effort to strengthen the lower and middle socio-economic grouping in this country is essential to its stability and is worthy of greater focus by all.
The other developmental effect in business has been the growing capability of Barbados-based businesses to build highly coveted brands of excellent quality, attracting international investors. While such activity has been mainly in the food and beverage industry, it has extended to insecticides, home care, and personal care products, to name a few. This development of branded consumables has afforded the country both a deep sense of national pride as well as the opportunity to earn foreign exchange through exports and save foreign exchange through import substitution.
I believe the drive to register Barbadian trademarks in other jurisdictions for further development either through export or licensing arrangements is something that must be a greater part of our course in the coming years. Keep in mind that despite the diversity of shareholders in a company, its brands maintain a strong heritage in consumers’ minds.
That is the power of brand building. I say to our members and the wider business community, stay with the effort. It is well worth it to build your brands both for your organisation’s financial advancement and for the social and economic development of the country.
There is no doubt that the business community continues to be challenged by a sluggish economy, a marked slippage in Customs facilitation and other impediments. However, while we are working on solving those problems, let us not forget the steps that have been taken to develop this country we all love and to be determined in our efforts to continue toward further social and economic development.
Barbados Chamber of Commerce and Industry president Tracey Shuffer shared these views when the organisation held its latest business luncheon last week.