As a top commercial banker in Bridgetown, John Beale, routinely made decisions about the finances of businesses that influenced their bottom line.
Now, as Barbados’ Ambassador to the United States and the Organisation of American States in Washington, Beale spends much of his time trying to help find solutions to issues which impact on his birthplace’s economic well-being.
The matters on the table for discussion with US and other officials can range from unfair US subsidies to rum producers in the US Virgin Islands; the impact of pending legislation in the US Congress on Barbados’ offshore financial services; and how international businesses in Barbados operate; to the work of the OAS to which 15 CARICOM countries belong.
With Barbados’ economy on the slide, its mountain of debt rising, the Government deficit widening and Wall Street keeping a close eye on the country’s economic performance, and may downgrade the country’s once stellar credit rating once again, it’s not surprising that the ambassador is keeping his eyes focused on Barbados’ economic well-being and its prospects for economic recovery. A key element to future resurgence, he says, is a healthy international financial sector which “has grown and prospered since its inception” but which is now facing serious challenges.
In a two-page paper, entitled Knowledge and Wealth economy, the banker turned diplomat, said Barbados must “propel this important sector from being successful to attain the prestige of being a leader or the leader.”
As he sees it, international business may be a complex and competitive economic area in which to do business but Barbados “is well positioned to be a leader” of it.
For one thing, it has enacted appropriate laws and regulations. For another, it has a network of treaties and double taxation agreements which many other small countries don’t possess. Then, there is the “well educated workforce,” the lawyers, accountants, asset managers and other professional who get the job done. Then there are the “fine lifestyle conditions” and the nation’s infrastructure – offices, housing, hotels, restaurants. As if those features weren’t enough the daily airline connections with Canada, the US and Britain are an important asset, Beale insists.
But what needs closer attention, though, is the knowledge economy.
“An area that will increase the economic importance of the international business sector to Barbados is knowledge, and every effort must be made to maintain and increase the brain power of this sector to reside in Barbados,” was the way he put it.
“The more wealthy experts –including specialised tax lawyers, accountants and advisors – that work and live in Barbados, the more that we will provide the platform to build and expand the necessary public relations and branding of Barbados as a leading business destination. In short, the brains will be a catalyst to bring the business,” he argued.
Beale, who was in New York for an Invest Barbados-sponsored symposium on the offshore financial services sector, contends that in order for international financial services “to truly prosper in Barbados, the government must take “an active lead role, along with the players and the gatekeepers” in the business.
“Teamwork and commitment amongst all players – Ministries of Finance, International Business, Central Bank, BIBA (Barbados International Business Association), Immigration, and the UWI etc.—are essential for successful engagement as well as a sense of urgency,” he argued.
The foundation of the “knowledge economy” is Barbados’ educational system, Beale said.
“Education has been the foundation of Barbados’ economic development and it is an opportunity for the university’s faculty to provide the manpower to the offshore sector,” the ambassador insisted.
He is convinced the UWI should link arms with more international business schools in order to expand the international business network. Such an approach would result in an increase in the UWI’s international student population, he said.
“The common goal is to create the Barbados brand so that when decision-makers are considering setting up their businesses outside of their jurisdiction, they will think of Barbados as the preferred location,” Beale said.
That’s why Barbados must create the “means to facilitate and encourage specialised financial experts” and wealthy individuals to work and live in Barbados. That, in turn, would increase international business in Barbados, boost economic recovery and create stability.
The ambassador emphasised the need to provide “appropriate incentives” such as a quick turnaround when foreign business executives and owners apply for work and resident permits.