barbados development challenges - world...

Report No. 5604-BAR

Barbados kDevelopment Challenges

April 26, 1984

Latin America and the Caribbean Regional Office

FOR OFFICIAL USE ONLYU

Document of the World Bank

This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may not otherwisebe disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit:Until November 1973 Eastern Caribbean Dollar (EC$)Since December 1973 : Barbados Dollar (BDS$)

December 1971

US$1.00 = EC$1.975EC$1.95 = US$0.506

Since July 1975

US$1.00 = BDS$2.00BDS$1.00 0 US$0.50

FOR OFFICIAL USE ONLY

PREFACE AND ABSTRACT

Since 1981, the economic performance of Barbados has beenaffected adversely first by the world recession and then by trade andpayments problems in the CARION. market and by the acceleratedstrengthening of the US$. All major sectors--tourism, sugar andmanufacturing (especially that catering to the regional market)--experienced financial difficulties, and public finances and the balance ofpayments weakened. These difficulties have exposed management andoperational problems at the sectoral level, as well as other structuralproblems in the functioning of the economy that pose a challenge to theauthorities and the industries to rectify. Both groups are aware that theproblems exist and have taken some corrective steps. This reportrecommends a number of additional actions and policy reforms designed tohelp in restructuring industry, restoring international competitiveness andreorienting manufacturing to extra-regional markets. The prospects forBarbados to resume its past pattern of strong economic growth dependcritically on the adoption at this juncture of appropriate policy measuresto:

(a) promote market and product diversification;

(b) improve the efficiency of industry operations;

(c) formulate incentive reforms and packages, appropriately targettedand favoring extra-regional exports;

(d) increase marketing, management and vocational skills;

(e) monitor and control wage increases; and

(f) maintain appropriate exchange rate policies.

This document has a restricted distributioin and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

This report is based on the work of a World Bank economic mission toBarbados in February 1985. The mission consisted of: Dawn Elvis (IBRD),Chief of Mission; Dolores Velasco (IBRD); Adrienne Cheasty (IMF); andNeil McMullen (Consultant). The UNDP Resident Office in Barbados providedassistance in preparing the Technical Assistance Project Profiles.

BARBADOS

TABLE OF CONTENTS

Page No.

COUNTRY DATA

SUMMARY AND CONCLUSIONS ................... ... ...... ............ i - iv

I. RECENT ECONOMIC PERFORMANCE .......... ... . . . ................... . 1

A. Overview .............................................. 1B. Coping with Recession, 1981-83 ........................ IC. The Beginnings of Recovery, 1984 ....... ............... 3

II. DEVELOPMENT CHALLENGES AND ISSUES IN THE MAJOR SECTORS .... 9

A. Challenges .......................... 9

B. Tourism ............................................... 11C. Manufacturing ........... .0............................................ 14D. Agriculture ...... ............................. ........ 19E. Other Development Issues ..... ......................... 23

III. PUBLIC SECTOR INVESTMENT AND FINANCING .................... 27

A. Progress of the Program, 1984/85 ........ * ............. 27B. The Medium-Term Program .............. ................. 28C. Financing Public Sector Investment .................... 31

IV. ECONOMIC OUTLOOK ..... ..... ................................. 34

A. Growth ................... ................................. 34B. Balance of Payments and Financing Requirements .... .... 34

GOVERNMENT'S PROJECT AND TECHNICAL ASSISTANCE LISTS .... ... 37

STATISTICAL APPENDIX ............. .. ................... ............. 114

MAP

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CGUNTRY DATA - BARBADOS

AREA POPULATION DENSITY431 km2 0.252 million (mid-1984) 580 per km2

Rate of Growth: 0.3 (from 1974 to 1984) 958 per km2 of arable land

POPULATION CHARACTERISTICS (1984) HEALTHCrude Birth Rate (per 1,000) 16.3 Population per physician (1977) 1,147Crude Death Rate (per 1,000) 7.1 Population per hospital bed (1975) 114.3Infant Mortality (per 1,000 live births)a/ 26.3

INCOME DISTRIBUTION (1970) DISTRIBUTION OF LAND OWNERSHIP (1970)% of national income, highest quintile 44.0 % owned by top 10% of owners 77.0

lowest quintile 18.6 % owned by smallest 10% of owners 0.5

ACCESS TO PIPED WATER (1977) ACCESS TO ELECTRICITY (1980)x of population - urban 100.0 % of population - urban 96.0

- rural 100.0 - rural 90.0

NUTRITION (1977) EDUCATIONCalorie intake as % of requirements 129.9 Adult literacy rate Z (1977) 99.0Per capita protein intake 84.6 Primary school enrollment X (1980) 121.0

GNP PER CAPITA in 1983b/: US$3,930

GROSS NATIONAL PRODUCT IN 1984 ANNUAL RATE OF GROWTH (X, constant prices)

US$ Mln. Z 1981-83 1984

GDP at Market Prices 1,151.6 100.0 -2.1 2.4Gross Domestic Investment 200.4 17.4 -16.6 -10.6Gross Domestic Savings 157.6 13.7Current Account Balance -36.2 -3.1Exports of Goods, NFS 740.5 64.3 3.0 13.2Imports of Goods, NFS 783.3 68.0 5.8 12.8

OUTPUT, LABOR FORCE ANDPRODUCTIVITY IN 1984

Value Added Employment V. A. Per WorkerUS$ Mln. % Thousands % US $ X

Agriculture 70.7 6.8 9.4 10.1 7521 67.5Industry 132.1 12.7 12.5 13.4 10568 94.8Services 834.7 80.5 71.2 76.5 11723 10.2

Total/Average 1037.5 100.0 93.1 100.0 11144 100.0

GOVERNMENT FINANCE

General Government Central Government

(BD$ Mln.) Z of GDPb/ (BD$ Mln.) % of GDpb/1983/84 1983/84 1983/84 1983/84

Current Receipts 656.0 31.1 537.1 25.4Current Expenditure 555.4 26.3 488.6 23.1Current Surplus 100.6 4.8 48.5 2.3Capital Expenditures 129.5 6.1 129.3 6.1External Assistance (net) 24.7 1.2 24.7 1.2

a/ 1982 data.

b/ Atlas methodology.

c/ GDP used for calendar year 1983.

not availablenot applicable

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COUNTRY DATA - BARBADOS

MONEY, CREDIT and PRICES 1979 1980 1981 1982 1983 1984(Mill:Lon BDS$ December 31)

Money and Quasi Money 596.,i 698. 5 794.8 854.6 900.5 969.3Bank Credit to Public Sector 76.] 64.5 L11.9 138.4 113.6 130.8Bank Credit to Private Sector 495.3 5931.0 723.1 772.8 861.0 883.5

(Percentages or Index Numbers)

Money and Quasi Money as % of GDP 44.3 41.6 41.7 42.9 42.6 42.1General Price Index (October, 1965-100) 426. - - - - -

(March, 1980-100) 90.4 101.5 118.6 130.8 137.7 144.1Annual percentage changes in:General Price Index 13.1 14.5 14.6 10.3 5.3 4.6Bank Credit to Public Sector 23.3 -15.2 73.5 23.7 -17.9 15.1Bank Credit to Private Sector 24.6 19'.7 21.9 6.9 11.4 2.6

BALANCE OF PAYMENTS MERCIIANDISE EXPORTS (AVERAGE 1983-84)

1982 1983 1984 a/ US$ Mil. Z

(Millions US$)

Exports of Goods, NFS 610.6 659.3 740.5 Sugar 22.6 8.3Imports of Goods, NFS 669.8 714.5 783.3 Molasses 3.'9 1.4Resource Gap (deficit - -) -59.2 -55.2 -42.8 Other Primary 9.5 3.5

Rum 2.'3 1.1Interest on Public Debt -14.3 -21.5 19.5 Chemicals 13.2 4.8Other Factor Payments (net) 11.7 5.9 6,1 Clothing 33.7 12.4Current Transfers (net) 20.4 20.8 20.0 Electrical Components 149.9 55.1Balance on Current Account -41.4 -50.0 -36.2 All Other Commodities 36.5 13.4

Total b/ 272.2 100.0Net Public Disbursements 26.7 58.3 15.6

(Gross Disbursements) (33.9) (69.3) (28.6) EXTERNAL DEBT, DECEMBER 31, 1983(Amortization) (-7.2) (-11.0) (-13.0)

US$ Mil.Other Capital 9.0 -4.3 21.7

Public Debt, Incl. Guaranteed 262.4Change in Reserves 5.7 -4.0 -1.1 Non-Suaranteed Private Debt ..

Total Outstanding & Disbursed

DEBT SERVICE RATIO FOR 1984 c/

Public Debt, Incl. Guaranteed 5.8Non-Guaranteed Private DebtTotal Outstanding & Disbursed

RATE OF EXCHANGE IBID/IDA LENDING (February 28, 1985) (Million US$)

December 1971 IBRD IDAUS51.00 - EC$1.975BDS$1.00 - US$0.506 Outstanding & Disbursed 29.0 -

Undisbursed 31.2 -

Outstanding Incl. Undisbursed 60.2 -

Since July 1975US$1.00 BDS$2.00BDS$1.00 - US$0.50

a/ Preliminary estimates.b/ Domestic exports.c/ Ratio of debt service to exports of goods and travel receipts.

,. not available

SUMMARY AND CONCLUSIONS

i. Over the last two decades, Barbados has made substantialprogress, with limited resources, in improving living standards anddiversifying its economic base. Tourism, manufacturing and agriculture,mainly sugar, but increasingly other crops and fisheries, now provide themain sources of growth. The keys to this progress have been anoutward-looking development strategy--appropriate to the country's smallsize--a reliance on markets, a judicious balance between the roles ofGovernment and private enterprise and, not least, a tradition of social andpolitical stability. However, the economy encountered serious difficultiesin the early 1980s, as a result of which Barbados now faces the majorchallenge of restructuring productive activities, restoring itsinternational competitiveness and reorienting its manufacturing toextra-regional markets.

ii. As a small, open economy, Barbados is sensitive to fluctuationsgenerated abroad, and it suffered its most severe external shock in recenttimes during the 1981-83 world recession. The problems this unfavorableworld climate created for the economy, chiefly through a sharp decline inthe tourism sector, were compounded by poor sugar harvests in threeconsecutive years. To cope with the strains on the balance of paymentsbrought on by the loss of foreign earnings, the Government in 1981 adopteda stabilization program of monetary and fiscal restraint, which wassupported with an IMF stand-by arrangement. This demand management programwas effective in controlling expenditures, thus containing thedeterioration in the public finances and balance of payments.

iii. The recession exposed management and operational weaknesses atthe sectoral level, and although the economic decline halted in 1983 andthere was small positive growth in 1984 (2.4%), the problemshave persisted. They have been exacerbated by the emergence in 1983 oftrade and payments problems in CARICOM, an important market for Barbados'manufactures, and by the accelerated strengthening in 1983/84 of the US$,to which the BDS$ is pegged at a fixed rate of 2:1.

iv. It was evident at the end of 1984 that Barbados' economicstructure has not survived the recent difficult years very well. With theexception of the electronics components subsector and non-sugar agricultureand fisheries, which proved to be strong performers in those years, all themajor sectors--tourism, sugar and manufacturing (especially that cateringto the regional CARICOM market)--experienced severe financial difficulties,which were multiplied for regional manufacturing during 1984. Economicactivity overall was low, fiscal difficulties caused successive cuts ingovernment capital expenditures and unemployment rose steadily. Even afterthe 2% real growth in 1984, external reserves and the fiscal balanceremained relatively weak. The external reserves represented about twomonths of imports, of which one-half was non-liquid credit balances in thesuspended Caribbean Multilateral Clearing Facility (CMCF). The centralgovernment current balance was halved in relation to GDP as compared to the

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year before, and even after curtailing its caLpital expenditures, theGovernment had to increase its recourse to the banking system. Moreover,the unemployment rate climbed to 18%. It was 15% in 1983.

v. The continued weaknesses at the macro and sectoral levelsindicate that fundamental problems in tlhe functioning of the economy haveemerged. The challenge for the future is to identify these problemscorrectly and to adopt appropriate policies aLnd action plans to overcomethem, so as to enable Barbados to resume its past pattern of strongeconomic performance.

vi. A number of issues have been identified at the sectoral leve!l.They include the cost/price relationship in the sugar industry; thecost/price relationship and undercapita:Lization problem in the hotelindustry; and the dependence of domestic manufacturing on weakeningregional markets. Other problems common among the sectors include, inparticular, low capabilities in both financia.l and operational managementtechniques, comparatively high labor and other input costs, and poorrecord-keeping and accounting practices. With respect to manufacturingspecifically, they include the small scale of operations, unfamiliaritywith extra-regional markets and r:Lsk aversion.. At the economy-wide level,probably the most fundamental problem, and the one most difficult to cometo terms with is that the development environment for Barbados haschanged. Traditional markets are now no longer assured; competition fortourism in the Eastern Caribbean has become mtuch keener; sugar facesgrowing competition from substitute sweeteners; and the domestic labormarket requirements have changed. The most significant shift involves theexchange rate regimes of many of ]3arbados' competitors and tradingpartners--Jamaica, Mexico, Canada, and Europe. There is little doubt thatBarbados, with its relatively high wage rates and fixed exchange rate, islosing competitiveness.

vii. The Government, as well as industry operators in the three majorsectors, have faced up to some of the problems and have taken correctivesteps. For example, new legislation has provided some relief to thetourism sector; both the sugar industry and the hotel sector have begun torationalize their operations; and surveys are under way or completed ineach of the sectors to provide the information necessary for firms toidentify and overcome some of theiLr difficulties. The approaches arepiecemeal, however; more appropriate would be a coherent strategy toaddress the underlying problems of lack of a competitive edge and ofentrepreneurial know-how.

viii. The task ahead is to address t:he development challenges with,action programs to: (a) diversify the markets and products and vigorouslypursue new activities, such as linkage :Lndustries that would help maximizelocal value added, and offshore financial services; (b) rationalizeindustry operations and improve efficiency; (c) formulate fiscal inceniLtivereforms and packages, appropriately targetted and monitored and favoringextra-regional exports; (d) provide infrastructure and other facilities,management and technical expertise, and financial and other operationa,linformation necessary for good decision--making; (e) monitor and control

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wage increases; and (f) maintain appropriate exchange rate policies.Manufacturing is currently facing a most difficult transition, and anexamination of the incentives needed for extra-regional marketing is judgedto have high priority.

ix. The present macroeconomic situation is tenuous and requiresurgent attention. The proposals made in the report for strengthening themajor growth sectors are, by implication, also employment creatingpolicies. The public sector investment program for the medium term isconsistent with a strategy of enhancing sectoral growth, in that its thrustis a major program of development: and reconstruction of the supportinginfrastructure--highways and highway maintenance, runway rehabilitation,vocational education and training, and sewerage development. Itssuccessful implementation will enhance the country's appeal to visitors andpotential investors. The program is being implemented with a significantamount of external assistance, and will have a substantial employmentimpact.

x. The country's economic outlook hinges strongly in its ability tomaster the challenges it now faces. Given this assumption, and providedthere are no major external shocks, growth could rise gradually from thepresent 2% to a level of 3.5% a year by 1990. To achieve this growth,gross domestic investment will have to rise from the low 17% of GDP towhich it has fallen to about 20% of GDP by 1990; the implication here is aconsiderable compression of the growth of consumption. Much of thecompression will have to occur in public consumption if the Government isto generate the savings needed to finance its share of the public sectorinvestment program without undue and inflationary reliance on bankingsystem financing. Since the scope for further revenue increases andcompression of other government expenditure items is rather limited, asdetailed in Chapter III, to achieve the targetted increase in centralgovernment savings from the present 1.3% of GDP to 3.0% of GDP in 1987/88,the Government must adhere strictly to a policy of wage restraint andmust tightly control the growth of expenditures for goods and services.

xi. On the whole, the projections indicate that the current accountof the balance of payments will improve steadily after 1986. However,because of the changing structure of the capital account, Barbados willneed additional financing over and above the project-related inflows duringthe next five years.

xii. The outturn of the capital account projections is affected by twocritical factors. One is the need to strengthen the external reserveposition by increasing net reserves. These are projected to rise annuallyby the amounts necessary to maintain a reserve cover equivalent to twomonths of imports. This level will be adequate if there is progress inliquidating Barbados' CMCF credit balances. The other important factoraffecting the structure of the capital account is the much higher level of

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amortization (averaging US$43 million a year) compared to that of US$7million a year in the SiX years prior to 1983. Financing requirements forthe balance of payments (other than project-related financing) thereforerange from US$67 million to US$24 million, with the larger amounts neededin the earlier years when the sectoral adjustments are taking place.

xiii. The availability of this financing on reasonable terms and asatisfactory solution to the CMCF in which a substantial part of Barbados'reserves are tied up are two areas of uncertainty for the capital account.The outcomes cannot be clearly anticipat:ed. However, the CaribbeanGovernments are working on solutions to the CMCF problem. It should alsobe noted that the financing requirements indicated above are not large inrelation to GDP (about 3% on averELge), although in absolute terms, they mayrepresent sizable amounts to be raised by a small country annually on thecapital markets. However, Barbados has been gaining more and more exposureon the capital markets. For example, it: was able to raise US$19 million onreasonable terms on the Japanese market this year, an accomplishment thatshould inspire confidence in lenders. Moreover, even though the projectedlevels of borrowing largely envisage commercial terms, the debt serviceratio is projected to peak at 9% over the medium term, compared to 5% onaverage over the past three years.

xiv. The projections assume that the authorities will take action topromote strong sectoral growth, a strategy that implies strengthening thebalance of payments current account. The authorities have in the pastdemonstrated prudence in managing the economy and in maintaining fiscalresponsibility. There is evidence that they intend to continue thisperformance. Some measures have already been taken to meet the presentdevelopment challenges and other proposals are being considered. In thesecircumstances, Barbados can continue to be considered creditworthy for Banklending on conventional terms.

I. RECENT ECONOMIC PERFORMANCE

A. Overview

1.01 Barbados' economy made impressive gains during the 1960s and1970s before experiencing a sharp recession in 1981-83. Growth averaged 5%a year, and living standards rose as the low population growth permittedper capita income to advance at the very satisfactory rate of 2% a year.Moreover, the economic base developed from a single traditional crop,sugar, to a more diversified structure featuring strong tourism andmanufacturing sectors. By the beginning of the 1980s, agriculture, tourismand manufacturing together directly contributed some one third of thenational product in roughly equal shares. The society has also enjoyedhigh levels of literacy, a relatively equitable income distribution, andgenerally good standards of health, education and social services.

1.02 These accomplishments are notable because Barbados is a smallisland economy of 431 km2, densely populated with 584 persons per km2, andwith limited natural resources and relatively young institutions (Barbadosgained independence from Great Britain in 1966). The island is favoredwith a sunny climate and white sand beaches, the basic attractions fortourists. But aside from small deposits of oil and natural gas, it has noindustrial raw materials. Much of the progress is attributable to thehistory of political and social stability and to economic managementpolicies that featured a general reliance on markets and a positiverelationship between the roles of Government and private enterprise.

1.03 Barbados' development strategy has always been outyiard-looking,as is appropriate for a country with such a small domestic market (thepopulation was 252,000 in mid-1984). International trade accounts for 132%of GDP, and while diversification has spread the geographic and productexposure, nevertheless the economy is highly sensitive to externalfluctuations. In recent times, the 1981-83 world recession has been themost severe external shock to the economy. Its impact was compounded in1983 by marketing and payments difficulties within the CARICOM region andthen by the accelerated strengthening in 1983/84 of the US$ to which theBDS$ is pegged at a fixed rate of 2:1. Barbados' economy still bears marksof the impact of these events, which have made the road to recoverydifficult. A major task of restoring competitiveness, restructuringindustry, reorienting to new markets and developing new activities liesahead.

B. Coping with Recession, 1981-83

1.04 Before the onset of the recession, the economy performedstrongly (Table 1). Growth was spurred by a buoyant external demand in thelate 1970s. Tourism benefitted from the strong demand in North America andEurope, manufacturing flourished because of the growing CARICOM market andthe attraction of foreign investors into garments and electronics, andagricultural output climbed during a period of high world prices. GDPgrowth averaged close to 6% in 1978-80, unemployment was falling and realwages were rising rapidly.

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1.05 The weakening of the world economy had its most direct impact onthe sensitive tourism industry, and activity in that sector dropped 7% and14% in 1981 and 1982, respectively. Meanwhile, a series of other problemsaffecting the sugar industry, including bad weather, labor problems, andcane fires which lower yields and damage the soil, caused a 29% drop insugar output in 1981, following the bumper crop of the previous year. Theoutput declines in sugar continued in 1982 andi 1983, and their effect wascompounded by falling prices to Barbados, in tlaose years. (The appreciiationof the US$ more than offset the EEC sugar price increases.)l/ As thesugar and tourism sectors together were contributing three quarters of theforeign exchange earnings, and are relatively large employers andsupporters of ancillary activities, they have pervasive spread effectsthroughout the economy. The overaLll impact of their difficulties was a2.6% fall in GDP in 1981 and a further 4.3% drop in 1982. Although theeconomic decline halted in 1983, fundame!ntal problems in the domesticmanufacturing sector began to emerge, as access to the important Trinidadand Jamaica markets became restricted when those countries took measures toprotect their own external positions.

1.06 With the decline in economic activity, the balance of paymentsand public finances worsened dramatically. T'he result was a serious drainon the nation's foreign reserves, which registered the first net loss--US$25 million--since 1977.

1.07 In response to the sharp deterioration, the authorities imposed aseries of monetary and fiscal austerity measures that gained the support ofthe IMF, and for the first time the Government entered into a stand-byarrangement with the Fund for a period of 18 months. With thestabilization program in place, the Government succeeded in containing thedeterioration in public finances and the balance of payments.

Table 1: PERFORMANCE INDICATORS

1979 1980 1981 1982 1983 1984

(% change)

GDP 7.9 4.9 -2.6 -4.3 - 2.4Sugar Production 13.8 15.3 -28.6 -8.6 -3.7 17.0Tourist Arrivals 17.1 -0.3 -4.7 -13.8 8.1 10.4Manufacturing Output -2.3 2.2 -5.0 -3.6 1.9 -4.8Electronics Output 24.7 0.1 8.8 55.3 24.9 33.9

(% of GDP)

Pub. Sect. Curr. Surplus 5.8 4.5 2.9 4.0 5.6 4.5Central Govt. Curr. Surplus 2.3 2.3 1.0 0.8 2.3 1.3Balance of PaymentsCurrent Account -3.6 -4.5 -9.0 -4.2 -4.7 -3.1

Source: Statistical Appendix

1/ Barbados sells 49.3 thousand tons of sugar (white value) to the UKunder the Lome Convention. This lavel is approximately one half ofBarbados' output at recent production levels.

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1.08 Aside from the demand management measures taken at themacroeconomic level to cope with the economic decline, the producingsectors hardest hit, tourism and sugar, made adjustments (ad hoc for themost part) on their own. The tourism industry took steps to adjust itsmarketing strategy, targetting the US market more than before in light ofthe failure of some major Canadian tour operators on whom the industry haddepended heavily in the past. Hotel operators, meanwhile, engaged in heavydiscounting of room rates as a way to lure visitors and boost occupancyrates. They were, however, initially reluctant to lay off workers. Therewas a consequent widespread drop in hotel profitability, and severalbusinesses fell into debt service arrears, went into receivership or closeddown. The sugar industry also encountered financial difficulties, as unitcosts rose rapidly with falling production. The industry introduced anumber of production incentives, most notably, to cut green cane ratherthan burnt cane, thus discouraging cane fires. The industry also securedgovernment assistance to tide it over the financially difficult period.The Government guaranteed the industry's bond issues on the domestic marketand legislated increases in the domestic price of sugar so as to guaranteeproducers a minimum average price.

1.09 By the end of 1983, Barbados had emerged from the recession yearswith its economic structure somewhat shaken. Production was depressed,traditional markets had suddenly disappeared, unemployment had risensteadily over two years to 15%, and business losses had multiplied. Whileappropriate governmental actions on the demand management side hadsucceeded in containing the deterioration of the balance of payments, thereserve position remained quite precarious. External reserves at the endof 1983 represented two months of imports, but one half was tied up asnon-liquid credit balances in the now suspended Caribbean MultilateralClearing Facility (CMCF). Moreover, the recession exposed fundamentalweaknesses at the sectoral level. They included the cost/pricerelationship in the sugar industry; the cost/price relationship andcapitalization problem in the hotel industry; and the market orientation ofthe manufacturing sector. These problems continued into 1984.

C. The Beginnings of Recovery, 1984

1.10 In 1984 Barbados enjoyed positive growth for the first time infour years. GDP rose 2.4%, mainly because of a 10% increase in touristarrivals, a 17% jump in sugar output (the first increase in four years) andcontinued strong growth in the enclave electronics components industry.This growth was accompanied, however, by sharply rising unemployment, asseveral CARICOM-oriented manufacturing firms closed or cut back operationsand as cost-cutting strategies in the hotel sector made labor redundant.The stagnation in import prices and moderating wage increases keptinflation low at 4.6%. However, the fundamental problems that had emergedin the past few years continued to be manifest in the delicate state ofpublic finances and the balance of payments which continue to require closemonitoring.

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Employment, Wages and Prices

1.11 The unemployment rate in 1984 is one of the more telling

indicators of the recent economic difficulties. Indeed, the protractednature of the difficulties as new problems arose from year to year isreflected in the steady rise in the unemploymnent rate of approximately twopercentage points each year, from 11% in 1981 to 18'! in 1984. Women wereparticularly hurt, being predominant among the newer entrants to the workforce and engaged in the newer, more vulnerable jobs in manufacturing.Their unemployment rate in all sectors was 2.3%. The deepest job lossesoccurred in manufacturing and in the service sectors of tourism anddistribution, which together employed nearly 21% of the labor force.

1.12 Given the high unemployment, wage increases were moderate incomparison with those awarded at the beginning of the 1980s (in some cases30% on two-year contracts) (Table 2). Government workers were awarded a15% pay increase in April 1984, writh 5% extra (measured from the 1983/84base) in the following fiscal yea,r. This settlement was emulated by mostof the statutory boards and by teachers. The Port Authority, however, wasunsuccessful in restricting wage increases to 10%, and following afive-month wage dispute, it agreed to an average increase of 15%.Increases outside the public sector were more moderate. The hotel sectorrestricted its increase to 10% over two years, in line with the expectedinflation rate, because unions, managertnt and the Government agreed thatthis restraint was in the long-term interest of employment in the industry.

Table 2: PRICES AND WAGESa/(% change)

1979 1980 1981 1982 1983 1984 1985

Retail Price Index

(average) 13.2 14,5 14.6 10.3 5.3 4.6

Wage Index (average) -- 18,1 10.2 17.2 4.7 12.7 4.0b/

a/ The wage index measures average economy-wide increases in labor costs.Wage agreements are typically nego:iated in two-year contracts, but notall in the same year. More than 35% of all employment is in the publicsector, and this high share accounts for the larger average increase inalternating years.

b/ Comprises only those wage increases already negotiated, averaged overthe whole economy; hence it is biased dciwnward.

Source: Statistical Appendix, Table 7.1; and mission estimates.

1.13 On the whole, these wage increases nevertheless surpassed theinflation rate. As measured by the consumer price index, inflation in 1984was lower than in 1983 and continued its downward trend in the first monthsof 1985. More than 45% of Barbados' merchandise imports (representing morethan 27% of GDP) come from the US, and the currency peg between the USdollar and the Barbados dollar meant that the low US inflation rate waspassed on to Barbados. Most of Barbados' other trading partners outsidethe Caribbean (notably Japan, Canada and Britain) have also had lowinflation, and as such Barbados' import costs benefitted additionally fromthe depreciation in their currencies against the US$. Prices in theclothing and footwear and household supply groups actually declined. Inthe non-traded goods sector, however, housing costs and medical care bothrose faster than inflation.

Public Finances

1.14 Following the successful implementation of the Government'sadjustment plan over the years 1982/83 and 1983/84, public finances beganto deteriorate again. The improvement in those years reflected both astrengthening of central government finances under the adjustment programand better performance by public enterprises because of tariff increasesand oil company profits. In 1984/85, the position of the publicenterprises improved further, mainly on the strength of the growingoperating surplus of the oil company, whose scale of operations expandedsubstantially. However, the finances of the Central Government worsened.The main problem was slow revenue growth, a situation that prompted theGovernment to introduce a supplemental budget late in the year that againcurtailed the government's capital spending (see below). Even so, theCentral Government had to increase its dependence on banking systemcredit. In relation to GDP, the current surplus of the consolidated publicsector dropped by one percentage point to 4.5% of GDP.

The Central Government

1.15 After two years of restraint under the stabilization program, theGovernment proposed an expansionary budget for 1984/85. The chief elementsof expansion were the 15% wage and salary award and a much increasedcapital program. It was soon realized, however, that the proposed budgetwas inconsistent with conserving already scarce external reserves. TheGovernment therefore introduced revisions to the budget designed togenerate an 11% growth in revenues, and to hold current expendituresconstant and reduce capital expenditures in relation to GDP. As the yearwore on, it became evident that even these measures were not sufficient.Slow growth in imports had reduced the yields from import duties, and thetax on corporate profits was producing about 20% less than anticipated.

1.16 The discouraging revenue developments prompted the Government tointroduce an interim budget in October 1984, designed to boost taxreceipts. Nevertheless, revenue growth lagged, registering only 6%, itspoorest performance in seven years. Current expenditures meanwhile shot upby 10%, after having been restrained to 2.5% growth the previous year.Preliminary estimates indicate that total revenues dropped from 25.4% ofGDP to 24.7% in 1984/85, and the budget surplus fell by BDS$18 million to

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the equivalent of 1.3% of GDP. These figures for the budget represent areversal of the trend in terms of GDP: whereELs in 1983/84 the budgetsurplus had regained its 1980/81 r.ate of 2.3% of GDP, it had now fallenwell below that rate.

1.17 The overall deficit worsened commensurately, and the Governme-nthad to increase its funding from domestic sources. It drew nearly 60% ofits domestic requirements from the National Insurance Fund (NIF), whosecontribution to the Central Government has been consuming a higher andhigher proportion of its surplus, partly because the surplus has beenshrinking. The larger part of the remainder came from the commercialbanks, while the Central Bank provided some net financing, revising itsrestrictive stance of 1983/84.

Non-Financial Public Enterprises

1.18 The Government has targetted substantial cuts in currenttransfers to public enterprises, and as a group they registered a currentsurplus before transfers (Table 3). The enterprises that have always beenprofitable, such as the Port Authority, the Petroleum Company and theCaribbean Broadcasting Corporation, cont.inue to show current surpluseswhile the Water Authority, the Post Office and the Marketing Corporationhave shown small surpluses in the last two fiscal years without any currenttransfers from the Central Governnment. Howevier, if the earnings of theBarbados National Oil Company (BNOC) are subtracted, the remainingenterprises taken together still show a current deficit, although one withonly a slight downward trend.

Table 3: NON-FINANCIAL PUBLIC ENTERPRISES(BDS$ million)

1979/80 1980/8]. 198-1/82 1982/83 1983/84 1984/85

Current Deficit/Surplus(before transfers)

With BNOC -4.4 -19.6 -22.3 -4.8 1.9 12.9

Without BNOC -4.4 -19.6 -22.3 -11.2 -8.3 -8.2

Transport Board -2.9 -12.0 15.2 -14.8 -14.9 -12.3

Source: Statistical Appendix., Table 5.6.

1.19 The Transport Board, which has been the largest single drain onthe budget, reduced its operating requirements from the budget from BDS$13million to BDS$11 million in 1984/85. This d.ecline was mainly the resultof a one-shot improvement caused by the introduction of fare boxes onbuses. However the elasticity of the response to the fare increases,together with the growing competition from minibuses and management's

policy of maintaining employment, suggests that the Board's revenues willnot rise enough to lower the level of this transfer in the next few years.During 1984/85, the National Health Service was instituted as a statutorybody, to be financed by the health levy.

Banking and Credit

1.20 The authorities had relaxed monetary policy somewhat aftersuccessful completion of the stabilization program. However, as netdomestic assets of the banking system had grown twice as fast as privatesector liabilities in 1983, the authorities decided that the expansionarystance had been premature. In 1984 they once more imposed restrictivemeasures on the distributive and personal sectors and raised the ceilingson lending rates. The new credit restrictions contained the growth in netdomestic assets to 5.2% during 1984, compared with a 7.7% growth inliabilities to the private sector. Demand from firms for private sectorcredit was weak, however, reflecting the poor financial position anduncertainty about future returns on investment. Hence the banks were ableto expand credit to the Central Government compared with a net decline inthat credit in 1983. The general picture is one of weak credit expansionto the private sector. In part this situation might be explained by weakdemand. In part it could reflect a reluctance on the part of lenders toincrease their exposure in a situation of generally weak business finances.

The Balance of Payments and External Debt

1.21 In Barbados, the balance of payments is a good barometer of thestrength or otherwise of the economy, and its outturn in 1984 suggests thetentativeness of the economic upswing registered by the other economicindicators. Notwithstanding that the main source of growth in 1984 was theexport earning sectors and that the current account deficit declined, thenet reserve position improved only negligibly (Table 4).

Table 4: BALANCE OF PAYMENTS INDICATORS(US$ Million)

1979 1980 1981 1982 1983 1984

Domestic Exports 116.3 168.6 148.5 186.3 255.2 289.2Of which:

Sugar and Molasses 32.5 60.7 29.9 34.4 22.4 30.6Electronics 22.6 31.7 38.7 60.9 133.2 166.6

Travel (gross) 207.9 253.7 264.1 254.8 254.9 275.5

Retained Imports 389.8 465.5 528.5 481.3 556.6 583.4

Current Balance -24.0 -37.6 -86.1 -41.4 -50.0 -36.2

Reserve Change -9.6 -19.9 24.8 5.7 -4.0 -1.1(-= increase)

Source: Statistical Appendix, Table 3.1.

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1.22 The year's increase in sugar earnings and tourism receiptssupplemented the reduced rate of expans:Lon of electronics exports toproduce a moderate increase in total export receipts. Sugar earnings grew36% from the low base to which they had fallen; tourist receipts grew 8%from a stagnant base; and electronics exports grew 25% from a high and.rising base. Together, domestic exports and travel receipts advanced 11%.This rate was twice as fast as retained imports, which, after rising btyabout 16% in 1983, slowed to 5% growth in 1984. Imports grew slowly forseveral reasons. Government capital outlays had been reduced, a move thatlowered imports of capital goods, especially for the construction industry,which fell by 8%. Imports of cars also fell by 23%, returning to a moirenormal inflow after the doubling of expenditures in 1983, when car importswere liberalized. (This shift improved Barbados' large trade deficit withJapan, but was also a major reason for the fa.ll in government revenues fromBarbados' import tax.) Retained imports of fuel declined as well beca.useof the big increase in domestic oil production. The current accountbalance of payments deficit improved by 1.6 percentage points to 3.1% ofGDP.

1.23 The capital account, however, worsened. Lower net public capitalinflows reflected the completion of somae large public sector projects aswell as an increase in amortization payments. This situation contrastswith 1983, when extraordinary public disbursements for the cement plant,the sugar industry and the acquisition of Mobil assets boosted the capitalaccount. Net external reserves increased by US$1 million, and the grcssofficial reserves stood at US$126.7 million, equivalent to a-bout two umonthsof imports. Only one-half of this amount was, however, counted as liquidreserves, because the remainder was a liability of the non-functioningCMCF.

External Debt

1.24 The accumulation of government and government-guaranteed debtslowed in 1984, following a build-up of 27% in 1983 and an average 602:annual increase in the debt in the two previc,us years. The external debtstcod at US$273 million in 1984, equivalent t.o 23% of GDP. The slowdcwnreflected the completion of drawings for larg;e projects, such as the cementplant, and a slowdown in drawings for new projects. No extraordinaryfinancing was contracted in 1984. The debt service ratio reached 5.82. ofdomestic exports and travel receipts, having risen from about 4% in 1981.In February 1985, the Government negotiated a. new loan equivalent to US$19million, onthe commercial yen market, which is to be disbursed in 1985.

II. DEVELOPMENT CHALLENGES AND ISSUES IN THE MAJOR SECTORS

A. Challenges

2.01 The experiences of the last four years highlight the majordevelopment issues and pose serious challenges for future growth. It isclear that the economy was hit hard by the international recession.Fortunately, the government's economic management was flexible enough tomanage successfully a short-term stabilization program, and thedeterioration in the external and fiscal balances was arrested. It is alsoclear, however, that despite the beginnings of an economic recovery lastyear, the macroeconomic situation remains weak. This conclusion is evidentin the narrow margin of external reserves, in the weakness of the centralgovernment's finances and in the high and rising unemployment rate. Inother words, the leading sectors on which Barbados has depended havefaltered, exposing some fundamental problems in the functioning of theeconomy. The challenge for the future is to identify these problemscorrectly, and to overcome them.

2.02 Probably the most fundamental problem, and the one most difficultto come to terms with, is that the development environment for Barbados haschanged. In a very real sense, it can be said that until recentlyBarbados' growth was demand-led. Strong external demand and protectedtraditional markets stimulated the early stages of development. Thispattern was certainly true of tourism: in the post-war years, Barbados wasone of the first Eastern Caribbean territories discovered for internationaltourism, and it flourished, particularly given its natural appeal to UKvisitors. Sugar likewise has traditionally enjoyed a protected market,first, under the Commonwealth Sugar Agreement, then under the LomeAgreement. Export manufacturing also was nurtured behind the tariffbarriers of the Caribbean Common Market by strong demand in the thrivingTrinidad and Tobago and Jamaica markets in the 1960s and 1970s.

2.03 These traditional markets are no longer assured. There are nowmany competitors in the Eastern Caribbean for the tourist dollar, offeringa variety of products and prices. The marketing of sugar is subject toquotas, low world prices for any excess that Barbados sells above itsquotas, and the substitution of F[FCS (high fructose corn syrup) for sugar.The CARICOM market for manufactures, as described earlier, has succumbed toregional economic pressures, leaving Barbados, because of its present stageof manufacturing development, literally without a market for its products.Extra-regional markets, the next alternative, are unfamiliar andcharacterized by rapidly changing technology and keen competition.

2.04 The development environment is also different for Barbados interms of its own labor market. For some time labor has been scarce in thesugar industry, requiring, in the late 1970s, importation of workers fromneighboring islands to harvest the cane crop. Meanwhile, the educationalsystem has not been fully prepared to provide the kinds of skills demandedin the growing manufacturing and service sectors. Until now, the strengthof demand in these latter sectors has been sufficient to overcome thisproblem, but this ability may not always prevail.

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2.05 The most significant change that Barbados' further developmentmust contend with is the changing exchanige rate regimes of many of thecountry's competitors and trading partners. Devaluations and depreciationshave occurred over the past four years in Europe, Barbados' main sugarmarket and one of its main tourism markets; in Canada, another of its maintourism markets; and in Mqexico and Jamaica, competitors for tourism andmanufactures. Making allowance fcor differentiation in product, there islittle doubt that Barbados, with its relatively high wage costs and fixedexchange rate regime, is losing competitiveness. This trend is evidencedin the price adjustments made in tourism and sugar, both of which aredesigned to improve those sectors' profitability in local currency terms.

2.06 The challenge for Barbados is to recognize that it is facing achanged economic environment and to adopt policies and action plans thatwill bring about the necessary structural adjustments for long-termgrowth. Such policies and plans should aim for a supply-propelled growthstrategy. They would recognize the need for more aggressive marketing ofwhat Barbados has to off,er, whether that; be its local skills and productsor _.ts political stability. That kind of marketing expertise isparticularly lacking locally and may have to be acquired abroad. Apractical approach is nevertheless neede!d to identify alternative productsand alternative markets to the tradition,al ones that are becoming lessreliable. The tourism sector needs to sell up-market and to provide animproved product. Appropriate policies would provide for planned expansionof tourism facilities when new capacity is needed and would study the laborrequirements for alternative combinations of :productive activities in thecontext of labor force growth. A particular challenge is the revival ofthe flagging manufacturing sector, where the strongest need is areorientation toward extra-regional markets. Since all three majorsectors--tourism, agriculture and manufacturing--emerged from the recentperiod with financial difficulties, launching them on a new growth pathwill require suitable incentive packages. The authorities might considerwhether a global incentive in the form of an exchange rate adjustment wouldbe appropriate in this context.

2.07 The Government as well as the three major industries have facedup to some of the problems and have taken somie corrective steps. To acertain extent, the financial difficulties are indicators that operatinginefficiencies existed and the job losses represent corrections. Otheractions and studies have been initiated. For example, the sugar industryhas begun to rationalize its operations, the hotel sector has conducted astudy of its problems and the Industrial DeveLopment Corporation (IDC) isconducting audits of companies as a way to help manufacturing firmsidentify and overcome their management and operating difficulties. Theseand other measures are d:iscussed in some detail in the following sections.

2.08 While all concierned are aware that there are serious problems andsomething is being done at various levels, the approaches have beenpiec:emeal; there is as yet no coherent strategy at the sectoral level or atthe level of the economy as a whole to address the underlying problems ofthe lack of a competitive edge and entrepreneurial know-how. The taskahead is to address with suitable action the many challenges, which can besummarized as follows:

(a) to diversify markets and products and vigorously pursue newactivities, such as linkage industries to maximize local valueadded, and offshore financial services;

(b) to rationalize industry operations and improve efficiency;

(c) to formulate fiscal incentive reforms and packages, appropriatelytargetted and monitored and favoring extra-regional exports;

(d) to be prepared, on the supply side, with infrastructure and otherfacilities, management and technical expertise, labor, andfinancial and other operational information necessary for gooddecision-making;

(e) to monitor and control wage increases; and

(f) to maintain appropriate exchange rate policies.

These approaches all imply strong marketing efforts, along with managementand vocational training. The following sections provide an analysis of themain sectoral issues, describe the measures taken or proposed, and makerecommendations for further action.

B. Tourism

2.09 As the largest foreign exchange earner and a significantemployer, tourism is probably the most important sector in the Barbadoseconomy. During the 1970s, growth in tourism was demand-led, with visitorarrivals increasing in two stages: from 188,176 in 1971 to 230,718 in 1974,and from 224,314 in 1976 to 370,916 in 1979. Tour operators in Europe andthe United States were filling facilities as fast as they came on-stream.Many new hotels and apartment units had been drawn into the sector withoutadequate capital or expertise on the part of the owners/managers. Whenarrivals fell in the 198Us, dropping by 18% in two years, the touristsector faced financial problems. Debt service arrears accumulated, andsome properties went into receivership. The situation began to improve in1984 as visitor arrivals rose to levels close to the 1979 peak, but lengthof stay and real expenditures per person were still down. Earlyindications are that 1985 will be a better year than any since 1980, butthe events of the early 1980s have revealed important structural problemsin the sector that must be remedied.

2.10 Because of the nature of the growth of tourism in Barbados, itwas probably inevitable that a shakeout would occur when demand eventuallyfell. Some of the problems are industry-wide, while others apply only tothe small and medium-sized facilities. Most of the large internationalchain hotels, for example, are adequately managed and utilize appropriatefinancial and cost control systems. For these hotels, the problems duringthe early 1980s centered on achiLeving adequate occupancy and room (fee)rates. For many of the smaller- and medium-sized hotels, however, theproblems were deeper and include the following:

(a) Undercapitalization and inadequate accumulation of financialreserves to offset the depreciation of structures and equipment;

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(b) lack of timely and uniform record-keeping;

(c) inexperience and lack of technical expertise in both thefinancial and operational. management of properties;

(d) weak marketing and promotional capabilities;

(e) need to refurbish and upgrade many properties constructed between1965 and 1975; and

(f) rather high cost levels, because of high wages, utility rates andtaxes, all of which may have contribu,ted to the failure toaccumulate adequate financial reserves.

2.11 The financial management problem is iespecially critical. Manyhotel operators do not really know their long-run break-even point and areprobably running down their net asset positions over time. Symptomatic isthe low level of income before fixe!d changes (IBFC) for most hotels inBarbados. After operating costs haLve been takien out, income has to covertaxes, debt costs, depreciation and profi.t. As a proportion of the capitalcost of the facility, the IBFC should be 15% to 20% of capital. For luxuryhotels in Barbados, it was only 9.3% in 1980 and fell to 3.0% in 1982. Fordown-scale hotels, the data are not available to make the calculation, butthe figure was certainly lower. Low rates of return such as theseinevitably lead to long-term problems.

2.12 In response to these problems, a joinlt committee of tourismsector leaders and public and private institutional supporters was formedin 1984. The committee prepared a comprehensive report on the situation.The major conclusion was that although tc,urism was certainly still viable,"there are very pressing problems...which pose a serious threat to thatviability, unless immediate solutions are! found and implemented." Thereport contained numerous recommendations for action by the Government andthe private sector, and some of the!se have already been implemented.Materials imported for refurbishing are now duty free, and water rates havebeen adjusted, to note just two exaLmples. However, to turn the situationcompletely around and put tourism c,n a sound long-term footing, much moreneeds to be done.

2.13 The most critical and imnmediate requirement is for betterrecord-keeping and practical on-going tra,ining in finance and operationsfor the owners/managers of small- and medium-sized properties. Onepossible approach is to give priority to tourism management training.Management audits should be done at: several tourist establishments and usedas case studies in seminars. Accotnting and financial controls need to beupgraded and standardized. If smaller hotels are to survive in the longrun, they must have more timely information on their true financialposition. Training of this type cannot adequately be done at the hotelschool run by the Ministry of Tourism. This institution quite properlyfocuses on preparing staff for employment: in hDtels and restaurants. Newapproaches are therefore needed to confront th, management problem. It maybe necessary to establish a secondment program with overseas hotels, sothat a corps of professionally trai.ned hctel managers can be created inBarbados.

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2.14 Refurbishment of plant and equipment should also have a highpriority. It is imperative that the earnings from the 1985 and 1986seasons be reinvested in the sector. For tourism to be able to takeadvantage of continued world economic expansion, measures should be put inplace to ensure that lines of credit and tax incentives are available andthat operating costs are controlled over this period. The tourism sectorin Barbados depends on repeat business, for which facilities must be keptup over time. Failure to use the income from the current revival oftourist demand properly will have serious consequences. Facilities willcontinue to deteriorate physically, the number of repeat visitors willfall, and the long-term viability of the tourism sector will be weakened.

2.15 In addition to the recommendations above, government action onthree fronts would be desirable. First, the Government should review theimpact of taxation on the tourism industry, specifically, the effects oftaxation on the financial viability of the industry. Recent studies ofpricing in tourism suffer from two critical weaknessess: (a) the pricescompared are those prevailing in 1981-83, when the Barbados tourism sectorwas not achieving adequate returns to remain viable; and (b) importantexchange rate adjustments have occurred since that time in Mexico andJamaica. Second, while promotional and marketing activities are improving,they still need additional resources, better materials and very carefultargetting of the right markets. An up-market clientele is essential inthe winter seasons; for the summer seasons, the market is more varied andmay be location-specific, i.e., the southern part of the United States.Third, better long-term planning must be initiated. In the 1970s, tourismgrowth was spontaneous, and the result is poor land use, the juxtapositionof different types of facilities in close proximity to each other and theabsence of some desirable types of facilities. Expansion should bestructured around centers of growth, and facilities such as a marina and aconvention center should be incorporated into the master plan. Land hasalways been limited, and suitable beach frontage is now very scarce.Better planning for the next round of growth--which is still probablyseveral years off--should be initiated in the near future. As part of suchplans, a program may be in order to purchase several continguous olderproperties and construct larger, newer facilities that would provide moreemployment and foreign exchange revenue.

2.16 The prospects for tourism in Barbados are good if the weaknessesrevealed in the 1981-83 period can be corrected. The keys are the trainingof management, renovation and improvement of physical facilities, promotionand marketing to attract up-market tourists, and control of costs so as tostrengthen the financial position of the industry over time. Olderfacilities constructed before 1975 need to be refurbished, but even afterthese expenses they should be able to make a profit, if properly managed.Newer facilities constructed since 1978 have higher cost structures interms of their total debt and the interest rates they are paying.Consequently, their financial position may be more marginal, and theirprogress needs to be carefully monitored. The Government is aware of thecredit needs of the tourism sector and is helping through the CentralBank's rediscounting and the Development Bank's rescheduling tourismloans. Barbados is fortunate in having a differentiated and highlyattractive product in its tourism sector. The problems are manageable;

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some are already on their way to being solved. Others can only be resolvedover time, but based on progress to date, the prospects are positive.Continued economic growth in Europe and North America, which is essentialon the demand side, appears likely for the next few years. On the supplyside, attention to the problems revealed during the recent downturn should,in time, strengthen the industry and put it on a sound basis for the longrun.

C. Manufacturing

2.17 Among the three major sectors of the Barbadian economy,manufacturing faces the most difficult transition over the next few years.The sector can be divided into two distinct groups of firm?. Multinationalfirms produce electrical components, data processing services, engineeringproducts and some garments, almost entirely for export to the NorthAmerican market. Locally owned and managed 1-irms produce a wide range ofgoods including furniture, garments, engineering products, chemicals andfood products for domestic and regional (CAR]:COM) markets. The problemsfacing these two groups differ considerably and are discussed separately.

Domestic Manufacturing

2.18 Local manufacturing has been particularly hard hit by the declineof CARICOM trade, as Jamaica and Trinidad and Tobago have increasinglyrestricted access to their markets during the last two years. It isestimated that roughly half the local manufacturing output was ultimatelysold in the CARICOM markets, and the restrict:ions there are having asignificant effect. Between 1977 and 1982, exports from Barbados toCARICOM countries grew at an annual rate of 25%. This trend reverseditself after 1982, and exports to CARICOM fell 2.9% in 1983 and another8.3% in 1984. The decline in exports to Jamaica and Trinidad and Tobago,both important markets, was 1.1% in 1983 and 18.4% in 1984. In turn,employment in manufacturing fell by 17% between 1983 and 1984, and furtherdeclines are likely in 1985.

2.19 The Barbadian manufacturing firms Dlust reorient their efforts tofocus on the hard currency markets in North America and Europe. Even ifCARICOM trade stabilizes in the next few years, it will not be capable ofgenerating the increased employment and foreign exchange needed to sustaina strongly growing manufacturing sector.

2.20 The recent setbacks in CARICOM have highlighted severalstructural problems that characterize local manufacturing firms. In theCARICOM market, with its small volumes, high mark-ups and similarity toBarbados, the problems have not been critical. However, given the need toexport to North America and Europe, they now have increased importance.These problems are:

(a) a shortage of top-level management skills, particularly withregard to budgetting and cost controls;

(b) the relatively high cost of labor, intermediate inputs andtransportation;

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(c) widespread undercapitalization of local manufacturing firms;

(d) the very small scale of operations, typically with almostcomplete control by the owner-manager;

(e) unfamiliarity with the extra-regional markets and theirstandards and design requirements; and

(f) aversion on the part of local entrepreneurs to take the largerisks associated with penetration of extra-regional markets.

2.21 The limited management capabilities are a particular weakness.Aside from the very largest companies, the manufacturing sector ischaracterized by privately held firms managed by the owner, with verylittle delegation of authority. This pattern is sometimes true even wherethe firms have trained middle-level management. Management tools such ascost controls, budgetting and monthly financial statements are oftenlacking. In good times this system works, but in poor times the firmsquickly run into trouble. Because they lack timely financial controlsystems, they do not know their current position. Thus, they are unable toforesee problems, tend to run out of financial reserves and have to borrowat the worst possible times. A few manufacturing firms have failed inrecent months, and so investors and entrepreneurs are even morerisk-averse. Success in the harcL currency markets will require muchstronger management capabilities than have been demonstrated so far by themajority of local manufacturing firms. These markets will require largevolumes, high standards of quality, low margins and prompt delivery. A fewof the leading firms probably have the capability to perform atinternational standards. However, considerable enhancement of managementskills is needed if the local manufacturing sector is to succeed in makingthe transition to extra-regional markets.

2.22 There is also need for improvement on the labor side. Incomparison with other middle-income developing countries, the wage level inBarbados is high. Therefore, to be competitive in manufactured exports toworld markets, workers must cooperate with productivity-enhancingprograms. Work habits, attitudes toward overtime and weekend shifts, andabsenteeism patterns will have to be improved. Workers will require morejob training, and output per empLoyee will have to begin moving up to matchinternational levels. Most important, wage increases must be at leastmatched by productivity gains. In light of the low level of domesticinflation, this wage factor must be a critical aspect of any program aimedat reviving production and raising employment in the local manufacturingsector. In addition, severance pay requirements (discussed in more detailin para 2.52) should be reduced, giving the firms more of an incentive toadd employees to their work force. After the shake-out that occurred inthe 1982-84'period, firms will be reluctant to add workers, knowing theywill face high severance costs when demand declines.

2.23 The Government is aware of the problems facing the localmanufacturing sector and is working to improve the situation in severalways. Negotiations within CARICOM are under way in an attempt to reviveregional trade. As a beginning, it is hoped that the decline in trade can

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be halted and an improved intra-regional payments system constructed.Various public sector agencies are actively working with the manufacturingsector. The Barbados Development Bank has been facilitating therescheduling of loans to manufacturing firms, providing more time for themto improve their operations and establish new markets. The ExportPromotion Corporation is providing technical iassistance and support inmarketing and product design. The IDC is undertaking a full audit of themanagement, financial, production and personnel capabilities of 10 localmanufacturing firms with potential for export. The findings will not onlyhelp the firms in question, but will also provide material for a workshopfor local managers. The firms are in garments, food processing,electronics, light engineering and handicrafts. The IDC hopes to assistthem in implementing changes and identifying export opportunities as well.

2.24 The most noteworthy current program is the Furniture TradingCompany (FTC). This is a cooperative effort made up of many small- andmedium-sized furniture manufacturing firms aiming to produce to NorthAmerican specifications. The furniture is made by member firms andmarketed by the FTC. Kiln-drying and some of the more specializedequipment is provided centrally. The marketing is being done by a US firmthat has specified the design and mater-Lals of the pieces to be produced.The finish is applied in the US. Important problems remain to be overcome,including high transport costs, maintenance of quality standards,fulfillment of production goals and operation of the system at smaller thanaccustomed margins. Nonetheless, the FTC is an innovative way to getaround the problems of small-scale operditions, and the lack of marketingexpertise, and it deserves carefuL examination for lessons applicable toother products.

2.25 Incentives. In view of the unfamiliarity of Barbadianmanufacturing firms with international mnarkets and the importance ofincreasing extra-regional exports, the incentives to produce manufacturedexports for hard-currency markets are insufficient. To the extent possiblewithin the limitations of the CARICOM harmonization of fiscal incentivles,changes should be geared both to export promotion and to the structuralproblems facing local manufacturing firms. Hligh rates of taxation onstated business profits seem to be at the core of the structural problem:publicly held firms that keep good records and are well run end up payingvery high effective tax rates. The estimates are that they pay roughlydouble the rate that would be paid by manufacturers in advanced industrialecunomies. As a consequence of the high tax rates, the incentives tocontrol costs and maximiLze the firms? profits are weak. Small businessesmay be run as an extension of the owners' other activities and, in somecases, personal expenses may be charged to the firm so as to reduce nominalprofit. In a publicly held corporation., suclh activities are likely to bemore limited as compared with a privately he:Ld firm. This practice may inpart explain the reluctance of firms to go public and issue equity, evenwhen they are chronical:Ly short of capital.

2.2b Regarding incentives to expand exports of manufactures, in thelast economic memorandum it was noted that no systematic analysis had beenmade of the impact of incentives on the structure of industry in Barbados,although collection of the necessary data was being considered. It wouldbe appropriate to move ahead with a broad-gauged study of the manufacturing

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sector, with the objective of strengthening it so as to make it competitivein the international markets. Some of the tax reforms and incentives thatcould be considered are:

(a) rebates on indirect taxes, particularly import duties, forexports to hard currency areas;

(b) provision of domestic inputs, for example, sugar, at world marketprices for hard currency exports;

(c) increased tax incentives for firms that issue equity, includingno corporate tax of distributed profits, i.e., dividends;

(d) reduced corporate taxes for firms that meet approved standards interms of financial records and cost control procedures;

(e) tax incentives based on increases in investment levels andexports to extra-regional countries;

(f) incentives aimed at encouraging joint ventures formed to export;

(g) especially strong incentives and support for market developmentactivities; and

(h) support for management training programs, particularly at the toplevel.

2.27 These are suggestions for investigation in the recommendedstudy. The precise incentive package needed should be determined by theanalysis. However, based on incentive programs adopted by successfulexporters in the Far East and Latin America, it would be surprising if manyof the incentives suggested above were not found to have merit. It isclear that, in prevailing conditions, the incentives for local manufacturesto move into hard-currency exports are inadequate. Aside from thefurniture project, there do not seem to be any ventures in place or comingon-stream, that utilize local manufacturing capabilities to export to NorthAmerica or Europe. This issue of incentives is probably the most importantproblem currently facing the Barbados manufacturing sector and will requireattention for several years.

Multinational Manufacturing

2.28 The multinational manufacturing (and data services) sector is ona sound footing, but two developments should be monitored. The firstrelates to the stagnation in the growth of this sector since at leastmid-1984. Output and employment in this sector rose sharply during theearly 1980s, but seem to have begun to decline in the second half of 1984.Employment in electrical components, which rose 26.5% from 2,450 people inmid-1983 to 3,100 in mid-1984, had fallen 5% to 2,950 by the end of 1984.Moreover, the industry faces a worldwide problem of excess inventory, andfurther cutbacks could affect Barbados during the next few years. Clearlysome momentum has been lost.

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2.29 The second is the increased concentration of manufactured exportssince 1980. The dramatic growth in electrical components has generatedjobs and foreign exchange earnings, but has also made Barbados vulnerableto sudden downturns in a specific market. A review of the data in Table 5shows that the proportion of manufactured exports in the two largestcategories rose to almost 80% in 1984, with electrical components alonemaking up two-thirds. This ratic, could. be even higher in 1985 if CARICOMexports continue to fall off. There is also evidence of a highconcentration within the electronics subsector: the six largest firmsproduced an estimated 90% of the total output in 1984, while the leadingfirm produced about one-half of that and employed over 35% of the workforce.

Table 5: COMPOSITION OF DOMESTIC MANUFACrURED EXPORTS(BDS$ million.)

Foods & Electrical Sports ProportionBeverages Chemicals Components Garments Equipment Other Total Two Largest

1970 2.6 2.1 6.4 3.7 0.1 3.4 18.3 55.2

1975 7.2 5.5 9.5 26.8 0.1 11.0 60.1 60.4

1980 14.2 21.7 63.4 49.1 10.3 47.8 206.5 54.5

1982 17.6 26.3 121.7 65.6 0.3 65.2 296.7 63.1

1984 19.8 25.7 333.2 64.4 0.2 62.1 505.4 78.7

Source: Statistical Service and Central Bank.

2.30 To attract new multinational firms, efforts are needed to improvethe international competitiveness of the economy. Although progress duringthe last several years has been good, no newT firms are coming to the islandin the near future, nor are there any firm commitments in the pipeline.

2.31 Based on the need to diversify and attract new investment,several policy adjustments should be considered and a thorough analysis ofthe situation undertaken. As with local manufacturing, the incentivesystem and competitiveness of the multinational manufacturing sector shouldbe analyzed. The procedures for recruiting potential multinationalinvestors and employers should be reviewed, with an eye to more effectivepursuit of foreign firms that can utilize Barbados' comparative advantage.Action should be initiated on a recommendation from the last economic

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memorandum regarding the establishment of linkage industries. Themultinational firms need many inputs of materials and services that couldbe supplied by local entrepreneurs rather than by imports. One example isa precision machine shop capable of supplying parts to the electricalcomponents industry. A greater array of locally available materials andsupport services would make Barbados more attractive to prospectiveinvestors and increase the share of local value added in gross exports.Linkage industries should therefore get comparable incentives to thosereceived by local exporters of manufactured goods.

2.32 The multinational firms in Barbados seem genuinely pleased with theprogress of their operations. American Airlines in particular isoptimistic about the future of its subsidiary, Caribbean Data Services, andis trying to find US clients to which it can sell data services on asubcontract basis. Success in this endeavor might lead to expandedoperations in Barbados. The electrical components firms experienced somestart-up problems a few years ago but are now quite satisfied with theirlocal operations. Some expansion of output is planned over the next fewyears, although it will be done through automation rather than increasedlabor. The prospects for retention of existing firms and modest expansionof their operations are good. However, more needs to be done to attractnew multinational manufacturing operations and to restore the momentum ofthe early 1980s.

2.33 A dynamic manufacturing sector is essential to the strong growthof the national economy. The medium-term prospects for manufacturing aregood--if reforms and incentives to improve international competitivenesscan be put in place. However, in the near term the sector faces adifficult transition to third-country markets. The Government ought toundertake a comprehensive review of the sector. There is a clear need fora reformulation of the incentive structure, improvement of managerialcapabilities, and control of unit labor costs so that manufactured exportsto hard-currency markets will be an even stronger force in the economy inthe years ahead.

D. Agriculture

2.34 As an inevitable result of successful economic development theagricultural sector in Barbados has declined as a proportion of totaleconomic activity. Employment fell from 26.4% in 1960 to 9.6% in 1977 and8.7% in 1983. More gradual declines occurred in agriculture's contributionto GDP and foreign exchange earnings. Within agriculture, considerablerestructuring has taken place: sugar has slipped in terms of the volume ofproduction, while other agricultural and fisheries products have grown moreor less apace with the rest of the economy. In 1982, sugar for the firsttime made up less than half the value of total agricultural output, and by1984 was down to 40%.

2.35 Barbados has always been dependent on imported foodstuffs, butefforts to become more self-sufficient are paying off. The major importedfood products are cereals, meats, dairy products and specialty items such

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as coffee, tea and spices. As a percent of total merchandise imports, foodproducts have declined from 20.9% in 1976 to 12.1% in 1984. Part of thisdecline is attributable to declining world prices for foodstuffs, but inreal per capita terms, food imports have grown very slowly, i.e., about ahalf percent annually. Barbados' success in limiting the growth of foodimports is attributable to the success of non-sugar agriculture, includingfisheries, which has grown at an annual rate of 3.3% since 1975, relativeto a population growth of only 0.3%.

Sugar

2.36 As noted, sugar production has been declining in volume for manyyears, although it remains the centerpiece of agriculture in Barbados. Thedecline is attributable to both diminished acreage and poor yields. In1964 sugar was grown on 58% of the land, bul: by 1982 this proportion hadfallen to 37%, and by 1984, was only 33%. From 1971 to 1982 yieldsaveraged about 59 metric tons of cane per hectare with, however,considerable variation in annual levels. The yield of 76 tons per hectarein 1980 yield was excellent. However, in part because of inadequaterainfall, the 1982 and 1983 crops were very poor at 51.0 and 50.1 tons perhectare. Then in 1984 the yield rose to 57.0 tons per hectare. Thisimprovement was in part the result of new incentives introduced by theGovernment, and it is expected that yields will continue to improve.

2.37 The sugar sector faces fundamenta:L problems and without financialsupport from the public sector, it will not be viable in the short run.The problems are:

(a) inadequate production of cane to cover fixed and operating costs;

(b) a relatively high-cost structure;

(c) an inadequate price for the sugar that is produced.

2.38 In order to cover fixed costs, meet the relatively high level ofprevailing variable costs and show somle return on investment, the sugarsector needs to produce at least 120,000 tons and to sell it at asatisfactory average price (estimated to be about 20 US cents a pound). Inthe late 1960s, sugar production rose to 200,000 tons, but it has reachedthe target range of 120,000 tons only twice since 1971. In 1983 productionwas at a historic low of 85,800 tons, while in 1984 it rose to only 100,500tons.

2.39 On the price side the problem is threefold. First, Barbados'quotas in the European and US markets total only about 70,000 tons, wellbelow the breakeven point of producticn. Second, the price received forexports to the EEC has been falling since the 1980/81 crop year, because ofthe relative depreciation of the ECU in which the EEC sugar price isdenominated. This price was 21.9 US cents a pound in 1980/81, but fell to17.9 US cents in 1982/83 and 16.04 US cents in 1984/85. Thus, even thepreferential price offered by the EEC is now below the estimated averagecost of sugar production in Barbados. Finally, the world spot price forsugar is now only abouit 4.0 US cents a, pound. Thus, at present prices, theprice at which margina:l sugar production would have to be sold is wellbelow the average cost of production in Barbados, although if prices were

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to rise to 10.0 US cents a pound,, they would probably cover the marginalcost of production.

2.40 Faced with these difficult realities, the Government isattempting to rationalize the industry and improve productivity. The mainmeasure is to provide incentives to harvest and deliver green cane asopposed to burnt cane. While burnt cane is easier to cut, it yields 90%or less of the sugar of comparable green cane. There is also the dangerthat the fire may get out of control and destroy the entire field. In 1984this incentive to workers and growers seemed to be working, as cane firesdiminished significantly.

2.41 A second incentive is in the form of financial support to theindustry. The Government has guaranteed bond issues, the proceeds of whichare on-lent to producers to supplement the realized price from sales.Finally, the Government has raised the domestic price of sugar annually inthe last three years to BDS$0.40 a pound in 1985, to help the sugarindustry defray the costs of servicing the bonds.

2.42 The future of the sugar industry will depend on the internationalmarket and the price Barbados can get for its exports of sugar. There isgeneral agreement that processed food products such as fruits, juices,jellies and powdered drinks can help raise the effective price paid forsugar exports. Exporters of food products currently must pay high domesticsugar prices, and this necessity has effectively precluded the expansion ofthese goods. The Government is reviewing this problem and should givepriority to encouraging food exports that utilize domestic sugar as aninput. The difficulty with these products is that they will absorb only asmall amount of the additional amount that Barbados needs to produce andexport. Production of processed foods should be encouraged, but thisapproach will not solve the marketing problem for sugar. Until world sugarprices rise to at least 10 US cents a pound, the sugar sector will need tobe subsidized.

2.43 In the longer term, the issue of mechanization is critical tosugar production. The number of people in agriculture has declined, theiraverage age has risen, and further mechanization is essential, if sugar isto continue as the principal crop in Barbados. Currently about 20% of thecrop is hand-cut and hand-loaded for transport to the sugar factory. Thiscrop is primarily the cane produced by the small farmers. Another 20% iscut by machines and loaded by machines. The remaining 60% is hand-cut andmachine-loaded. Over time, mechanization will have to expand to includethe bulk of the crop. Ultimately, 75% of the crop would be harvestedmechanically by an estimated 2,000 workers, as compared with the 6,000workers currently required for harvesting. This expansion will requireconsiderable capital in terms of both machinery and land-grading, as thecane-cutting machines require relatively flat land to function properly.The harvesting machines alone will cost over US$10 million. Movement to amechanized harvesting system will also entail additional expense fortransport equipment and unloading equipment at the sugar factories. Bothbecause of the rising unemployment elsewhere in the economy and high wagesfor cane cutters (currently BDS$9.78 an hour), the sugar harvests in 1984and 1985 have had sufficient labor. Therefore, accelerated mechanizationis not an immediate problem. Over the years, however, mechanization will

-22 -

be critical. One approach that should be considered is the establishmentof sugar harvesting serviLce companies to operate and maintain theharvesting equipment. A system based on farmer-owned harvesters entails alot of redundancy and maintenance is uneven. Systems such as the onerecommended have worked well for the provision of harvesting services inother agricultural areas and ought to be given serious consideration inBarbados.

Other Agriculture

2.44 While realizing that the sugar sector requires support if it isto continue operations in the short run, the Government also recognizes theneed to diversify the agricultural base of the island. Sugar faces keencompetition from corn sweeteners and other sugar substitutes, and prices,consequently, may never return to satisfactory levels. In addition,certain lands are poorly suited for cane cultLvation, and for these areasin particular, alternative crop rotations are being analyzed. There aremany crops that are candidates for expanded cultivation in thediversification program, including cassava, cotton, peanuts andvegetables. The World Bank is financing a technical assistance projectthat provides consultancy services to support the diversification effort.The objectives for the new crops are to:

(a) establish export crops that are more stable and faster growingforeign exchange earners;

(b) save foreign exchange by producing import substitutes; and

(c) utilize less labor by finding crops that can be cultivated andperhaps harvested mechanically.

Thus far, the best results seem to be with sweet peppers, which aresuccessful exports, and peanuts, which aLre grown as import substitutes.

2.45 Progress in diversifying agriculture will depend on severalcritical considerations:

(a) the alternativ,e returns from sugar production;

(b) the export markets that can be developed for specializedvegetables and fruits along the lines of sweet peppers;

(c) the cost of preparing laLnd, putting in irrigation systems andtraining farmers to grow alternative crops;

(d) the ability of farmers to procluce sufficient volumes ofhigh-quality vegetables timed to meet the needs of overseasmarkets; and

(e) the ecological consequences of moving away from sugarcane, whichis ideal for minimizing the erosion of the thin, light soil ofBarbados.

The Government is committed to increasing the cultivation of nontraditionalcrops to the extent that they can be profitably marketed and that

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ecological problems can be controlled. With high freight costs, onlyspeciality crops with a degree of product differentiation are potentiallyprofitable. Bulk vegetables can be produced locally but not for overseas.The matter of soil conservation may emerge as an issue in Barbadianagriculture as new crops replace sugar, and this matter will requireincreased attention in the future. Sugarcane is an ideal plant in terms ofits soil and moisture protection and its weed control properties. Newcrops will require the learning of new cultivation techniques, such ascontour plowing, and greater emphasis on soil and water resourcemanagement. A program to monitor and evaluate island-wide erosion problemsshould be established so as to have better information on currentconditions.

2.46 In agriculture, the Government is on the right track, with amixed strategy of raising productivity in sugar and diversifying intospeciality export crops. However, the future thrust of agriculture willdepend on the overseas markets. If sugar is to be successful, it willrequire higher prices, relative to local costs, than currently prevail.Similarly, marketing is critical to the success of the speciality exportcrops. If markets for eggplant, Barbadian cherries and other high valueexport crops can be established, then the diversification program willsucceed. Barbadian agriculture needs to develop the ability to find andfill niches in the European and North American markets. Ideally, the focusshould include both fresh fruits and vegetables and processed food productsthat utilize domestic sugar. This strategy would reduce the risks ofexcess concentration on any single crop, permit maximum flexibility andenable Barbados to vary its mix of agricultural products to suit localproduction capability and overseas markets.

E. Other Development Issues

2.47 Barbados is in a very unusual situation in that it has reached arelatively high level of economic development without a strong group oflocal entrepreneurs and managers able to compete in world markets. Duringthe past two decades, growth has been based on a rising demand for tourism,attractive high technology investment by multinationals, exports to theprotected CARICOM market, especially Trinidad, and good management of theeconomy by public sector policymakers. The realities facing the privatesector have now changed, particularly for local manufacturers.

Management

2.48 In this new environment, the development and improvement ofmanagement systems and techniques have to have a high priority. At thefirm level, the Government should encourage firms to upgrade management.All of the Government's assistance in tourism, manufacturing andagriculture should have management training components for participatingfirms. In tourism and manufacturing, timely and accurate record-keepingand the implementation ot basic financial and cost control systems shouldbe an integral part of technical assistance programs offered to firms. TaeIDC's company audit program for manufacturers is a good approach and may bemore widely applicable in the future. In time, firms that do not haveappropriate financial control and management systems will begin to standout and might have difficulty qualifying for lines of credit.

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2.49 A shortage of entrepreneurs and managers appears to be animportant constraint on the growth and development of the economy.Therefore, policies aimed at increasing the supply of trained managers andhelping potential entrepreneurs get established should be considered.Several of the recommendations made above in discussing the three majorsectors address this problem, but more needs to be done in the way ofeconomy-wide programs. Younger managers and entrepreneurs should be soughtout and supported in ventures that: have good potential to succeed.Opportunities such as linkage industries to the tourism sector and themultinational manufactures should be identified and matched with the rightentrepreneurs. Because Barbados Ls at a relatively advanced level ofeconomic development, there are few, if any, precedents for tackling thisproblem. There is, however, considerable scope for innovative approachesand creative solutions.

Labor and Employment

2.50 A second important issue that cuts across sectors is labor.Because of slow economic growth in the early 1980s, unemployment has movedup from 11% in 1980 to 18% in 1984. In the near term unemployment isliable to get worse because of the deterioration in manufacturing. To turnthis likelihood around without causing a deterioration in the externalbalance, growth must be focused in the l:hree major foreign exchange-earningsectors. Therefore, the policies recommended for tourism, manufacturingand agriculture are also appropriate employment policies.

2.51 Specific policies geared to stimulating employment include wagemoderation and reform of the severance pay requirements. In the early1980s wage rates in the manufacturing sector rose very rapidly and may havecontributed to the subsequent decline in employment. Between 1980 and 1983wage rates rose at annual rates of 9.1% in garments, 18.0% in food, 16.1%in beverages and 8.8% in chemicals. These increases moderated in 1984,except for chemicals, which rose ].6%. Given the strengthening of theBarbados dollar, the decline of CARICOM trade and the difficulty localfirms are having in finding new export miarkets, wage moderation is criticalif unemployment is not to continue to ri'se for several more years. Wagerates have also been rising rapidly in the service sectors, particularlytourism and government.

2.52 Changes in the laws governing severance pay will also help reduceunemployment. While the initial iLntent of the severance pay scheme was toprovide some degree of security to employees, under current circumstances,the system as it now exists has to be viLewed as a disincentive toemployment. The tourism sector has just: experienced a labor reduction andhas had to meet high severance payments. In many cases, the decision toreduce staff was delayed too long because of the severance pay factor. Yetthis delay contributed to the weakened i-inancial condition of many hotelsand has made them very reluctant to begin rehiring now that touristarrivals are on the upswing. This is an area for cooperation among labor,management and government to find practicable solutions. At this point, astrategy to reduce severance pay, perhaps only for new employees, willencourage firms to take on new workers as output expands.

2.53 All of the major sectors are in transition and the new directionsthey take will have profound effects on employment levels. An analysis ofmedium-term strategy for the appropriate balance of growth and the capital

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and labor requirements among these sectors should be considered. It wouldbe useful to have information on the employment implications of alternativegrowth patterns and their implication for the economy as a whole.

Competitiveness

2.54 The issue of competitiveness in international markets is criticalfor each of the three major sectors. Cost/price relationships in thesectors are influenced by movements in exchange rates, relative wages andoperating efficiencies, all of which have to be closely monitored. Thetourism sector has experienced a shift in the composition of visitorsheavily in favor of Americans, aLs European visitors have stayed away. Itmay be argued that, at least in part, the sharp decline in Europeantourists was caused not only by the adverse currency changes but also bythe prolonged recession in Europe. However, the increases in Americantourists in the last two years, dramatic though they were, did not fullycompensate in terms of impact on the economy for their Europeancounterparts who typically stay longer and average higher expenditure pervisit. This shift in composition of tourist arrivals places Barbados ineven keener competition for American tourists with other Caribbean Basindestinations, some of whose currencies have depreciated relative toBarbados'.

2.55 In the case of manufacturing, the main problem for local industryin the last two years has been the virtual loss of the CARICOM market.This shock, however, only highlights the competitive issue formanufacturing as it attempts to penetrate third country markets. Inaddition to adapting to new standards and larger volumes, it must competewith neighboring exporters whose costs and/or prices are lower. The lackof new investors in the multinational manufacturing sector is revealing.As a location for manufacturing, Barbados has improved its position since1982. The island retains its traditional stability and hospitality, andtwo large investors--INTEL and American Airlines--have successful newoperations. Yet there are no new multinational investors in the pipeline,and part of the reason is assuredly high costs relative to otherlocations. Local manufacturing is facing a whole new set of challenges inthe world market, and the lack of joint venture and local export projectsis indicative of the perceived absence of profits in exports beyond theCARICOM market. The one exception, the Furniture Trading Company, has beenled by, and to a degree managed by, public sector institutions. Privatesector entrepreneurs are still somewhat skeptical about its long-termpotential, although they are very interested in the concept. Success inthis venture would be very constructive in terms of its demonstrationeffect for other manufacturers. Agriculture also has seriouscompetitiveness problems, which are explicitly recognized by the domesticprice subsidy to the sugar industry. The slow progress in establishingoverseas markets for speciality fruits and vegetables can be partlyattributed to the same problem.

2.56 The improvement of Barbadian competitiveness in the three majorsectors must have a high priority. In addition to the structural programsrecommended above, this goal requires continuing attention to economy-widecost factors--that is, wages and taxes--and to exchange rate policies.

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While there is a clear need for structural policies and better sector-levelincentives, particularly in manufacturing, it is not possible to saywhether these will suffice to establish compeititiveness in world markets orwhether more will need to be done in a few years.

Marketing

2.57 Marketing is recognized as a problemn facing all three of themajor sectors. Tourism developed in the 1970s in a sellers' market, andtour operators combined with repeat visitors ensured high occupancy rates.In the 1980s, a passive marketing strategy will not work, and the TouristBoard is giving more emphasis and resources to promotion and marketing. Inagriculture, the success of sweet peppers is a model that hopefully can berepeated for several add:itional speciality vegetables and fruits. Thesuccess of non-sugar agriculture hinges principally on Barbados' ability toexport new crops to overseas markets. It is in manufacturing that thechallenge is greatest and the need for success in marketing is mostevident. At this point it appears there is a lack of both expertise andmotivation on the part of the domestic privates sector. Local entrepreneurshave little or no experience in selling to extra-regional markets and,given the current lack of incentives, do not appear to be particularlyinterested in pursuing overseas markets. Whether it is the tourismrecovery, sweet peppers or prospective success in furniture, the Governmentseems to be heavily involved in the marketing of exports to extra-regionalmarkets. This pattern is likely to continue for some years. However, intime, the private sector ought to be more active in marketing itsproducts. Incentives to offset market development costs, as mentioned inthe section on manufacturing, are essential. However, it might be usefulto study the marketing techniques of other countries in a position similarto that of Barbados. Jamaica for one seems to be experiencing a surge inmanufactured exports to extra-regional markets, even while manufacturing asa whole is performing poorly, and that success might provide useful lessonsfor Barbados.

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III. PUBLIC SECTOR INVESTMENT AND FINANCING

3.01 In 1984/85 public sector capital expenditures were again affectedby the constraints of the central government's budget. Since thestringency of domestic resources was brought on first by the worldrecession and later by the strengthening of the US dollar which slowed thegrowth of revenues from imports, public sector capital expenditures havedeclined progressively from 9% of GDP in 1981/82 to 6.3% of GDP in1984/85. This decline occurred despite the absorption of oil production,with its sizable capital expenditures, into the public sector since 1982.In fact, without BNOC's oil-drilling outlays, public sector capitalspending in 1984/85 would have been only 5.3% of GDP.

3.02 The bulk of the expenditure reduction occurred in centralgovernment capital formation, where much of the purely locally financedcapital works is reflected. By 1984/85, these expenditures had fallenbelow their level in 1979/80, as the Government deferred low priority worksand refrained from starting major new projects while attempting to assureadequate counterpart funds for externally financed projects.

A. Progress of the Program, 1984/85

3.03 Public sector capital expenditure in 1984/85 is estimated atBDS$145 million, a decline of 9% in nominal terms from 1983/84. While themain explanation for this overall low performance is the domestic resourceconstraint discussed above, different although not always unrelatedproblems affected the performance of the externally financed portion of theprogram.

3.04 One problem was the structure of that program in 1984. Severalof the projects were near completion and winding down, while some otherswere so newly started that they had little impact on total capitalexpenditures during the year. In other words, very few of the externallyfinanced projects were at the height of their implementation, and thissituation affected the rate of capital outlays.

3.05 Start-up delays on new projects were another critical factorhampering progress. Of some nine projects originally programmed to beginexecution over the past year and a half, only three came on stream, allwithin the last six months of the 1984/85 fiscal year. The slippage islargely explained by an underestimation of the process involved ininitiating externally financed projects, including the time required forthe Government to comply with conditions for disbursement.

3.06 Some projects have been marked by implementation problems. Suchproblems continue to plague the Spring Hall Land Lease project (CDB) andthe Rural Development project (IDB). Both involve vegetable production andhave as a primary objective the settlement and tenuring of small holders.The institutional and farmer participation aspects of the projects havebeen a constant source of delay, and both projects are now expected to becompleted with delays of about two years. Their experience points up thedifficulty of carrying out agricultural projects that include significant

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elements of land reform and small farmer development. The IBRD-financededucation and industrial development projects, whose construction rate hadto be slowed because of the scarcity of local funds and lack of industrialdemand during the recession years, are now well-advanced and will becompleted within the year.

3.07 By contrast, project execution proceeded smoothly in two otherprojects that will be completed this year. They are the World Bank'sTechnical Assistance project for agricultural diversification and energyconservation, and the CIDA-financed third phase of the Government'slong-term water development project. The Government hopes to launchsuccessor projects to each of these: it: intends to draw upon the resultsof the technical assistance project for a capital project in cropdiversification and to seek new funding for the next phase of its waterdevelopment program.

3.08 Among the other ongoing projects in the public sector investmentprogram are the credit projects, mnentioned here because even though theyare executed by the financial sector, the external funding is channelledthrough the Government. Credit projects channelled through the BarbadosDevelopment Bank, the Central Bank of Barbados, the Barbados MortgageFinance Company, as well as the commerc.Lal banks, are financed by variouslending agencies--IDB, IBRD, and USAID---for industrial and tourismdevelopment, and for housing construction and renovation. IDB's lines ofciedit through the BDB and the World Bank's Industrial Credit projectprovide funds for the tourism and industrial sector. These resources havebeen very much in demand in the last two years, when the weak performaLnceof these sectors depleted firms' internal resources for refurbishment andworking capital. The USAID housing guarantee program is the first of itskind for Barbados. The US government guaranteed a US$10 million loanraised on the US capital market to prov:Lde housing finance. The projecthas been in operation for just over a year, and it is expected that thefull amount will be drawn down over three years as programmed. Initiallyintended to address low-income housing needs, the project has beenredesigned to include higher income groups who can more readily afford theterms.

B. The Medium-Term Plrogram

3.09 The Government's five-year development plan for 1983-88 providesthe framework for the public sector inveastment program (Table 6). Theobjective for the medium term is to focus on upgrading basicinfrastructure, while satisfying other requirements of the directlyproductive sectors.

3.10 In light of the development challenges identified in earliersections of the report and in keeping wLth the authorities' generalphilosophy of minimum direct involvement: in production, this thrust isappropriate in that it aims at assuring adequate supporting infrastructurefor the efficient performance of private sector development activities.Indeed, over the last few years a good deal of this infrastructuraldevelopment has taken place in the form of new road sections, educationalfacilities and sewerage improvements, wLth financial assistance fromexternal donors. Projects were also undertaken by the utility companies toupgrade and expand power facilities and telecommunications. The projectscontained in the present medium-term program carry on the infrastructural

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development program, which indeed must be ongoing if infrastructure is notto become an obstacle to the forward momentum of the productive sectors.

3.11 Hence, among the externally financed projects (which representroughly one-half the total), the program allocates 34X to economicinfrastructure, 19X to social infrastructure and the remainder to directlyproductive projects in agriculture, industry and energy, of which energy inturn accounts for a half.

Table 6: EXTERNALLY FINANCED PROGRAM, 1984/85-1987/88

BDS$ Million %

Economic InfrastructureTransportation (internal) 122.2 27.2Transportation (international) 20.0 4.5Coastal Conservation 1.0 0.2Port 8.0 1.8

Social InfrastructureWater 2.2 0.5Health 48.4 10.8Education 28.9 6.5Housing 7.7 1.7

Directly ProductiveAgriculture & Fisheries 73.9 16.5Industry 26.3 5.9Energy 100.9 22.5

Other 8.4 1.9447.8 100.0


Infrastructure

3.12 The infrastructure projects, economic and social, form a clusterof supporting facilities for the tourism, manufacturing, industry andagricultural sectors. The largest expenditures will go to the transportsector, where major new stretches of roads are to be reconstructed toprovide ready access to the centers of development, as in the case of theairport to west coast road, which will also bypass the congested Bridgetownmetropolitan area, and the cement access road from the clay quarry to thecement plant. Rehabilitation of the international runway, a trafficmanagement project for the capital, Bridgetown, and a road maintenance andrehabilitation project for 64.5 km of primary roads that has alreadycommenced with IBRD financing, complement the transport program. Theinstitutional strengthening to which these projects will inevitablycontribute will enhance the Government's capacity to preserve past ndfuture investment in the transport sector. Financing has already beenapproved for the airport to west coast road (IDB) and for the cement

30 -

access road (CDB). The same donors have been approached to help financethe Bridgetown traffic management and runway rehabilitation projects.

3.13 The program also contains longer tesrm development projects forcoastal conservation, additional sewerage facilities and continuation ofthe long-term water supply development plan. The coastal conservationproject is of high priority to address the problem of beach erosion causedby deleterious environmental effects on the coral sea bed that supports thebeaches. Successful execution of these projiects will benefit particularlythe tourism and manufacturing sectors by enhancing the island's appeal tovisitors and investors.

Productive Sector Projects

3.14 The set of projects in agriculture, industry and energy reflectsthe Government's effort to diversify the economic base and will help torelieve some of the country's production and balance of payments problems.Some of the projects, such as fisheries and lpoultry development, are ofshort gestation and are therefore ideally suLted to help in a transitionalperiod such as Barbados is now in. The country has good potential toincrease its production of fish, meat and vegetables. To realize thepotential, however, adequate and expanded facilities are needed, such asfishing piers and cold storage facilities and irrigation for agricultiare.

3.15 The benefits from providing improved fishing facilities have beenwell-demonstrated since the completion of thts EDF-financed Oistinsfisheries project two years ago. Lack of additional such facilities is nowa bottleneck to further expansion of fisheries, and the Government isseeking funding to develop two other suall f:Lshing ports at Speightstownand Tent Bay, in addition to the project jusi: started at the BridgetownFishing Port. The ongoing poultry project is to produce hatching eggs,thus providing backward linkage for the exist:ing poultry industry, whichnow depends on imported eggs. However, if the recent problems of gluits onthe market become a pattern, some rationalization of the industry willbe necessary. Other agricultural projects in the investment program areintended to improve the efficiency of sugar production, thus lowering unitcosts (sugar rehabilitation); and promote the diversification objective(livestock, irrigation and crop diversificat:ion). These are expected toenhance export earning and import saving opportunities. External financingis also being sought to upgrade the production and processing of livestock,to develop water resources for irrigation and to develop nontraditionalcrops.

3.16 Finally, the BNOC's well drilling program has benefitted in thethree years of its existence from external fiLnancing from CIDA and throughthe Venezuela Oil Facility. While BNOC's int:ernal resources areincreasing, the company continues to need ext:ernal funds over the mediumterm. Further development of the energy secl:or depends also on the a1bilityto distribute natural gas, and for this purpose, the Government is seeskingfinancing for a small project for a natural gas pipeline.

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Conclusion

3.17 The composition of the public sector investment program appearsto be well-targetted to the medium-term development needs of the country,at least insofar as the externally supported portion of the program isconcerned. In view, however, of the size and number of the infrastructureprojects programmed over the next few years, two notes of caution arewarranted. One is that problems of financing and absorptive capacity maydevelop if the Government attempts to maintain in these years the sameratio of other projects to its externally financed projects as in the past,that is, if the total public sector investment would be about twice thesize of the externally financed program. The other is that if theexperience ofstart-up and implementation delays with externally financedprojects continues, the present medium-term targets for execution of theseprojects may prove to be ambitious. If so, project benefits will bedelayed accordingly.

C. Financing Public Sector Investment

3.18 Public sector savings have typically been the principal source offinancing for the public sector investment program (PSIP). In recenttimes, they financed roughly 75% of the program until the share droppedprecipitously to 36% in 1981. The contribution recovered gradually to 71%in 1984/85, mainly because capital spending had been heavily reduced since1981, but also because of greater savings efforts under the stabilizationprogram. The target for the next few years is to lift this relationshipback to a 75% share as a minimum (Table 7).

3.19 In view of the expansion in capital spending proposed for thenext few years to carry out several large infrastructure projects, the keyto achieving this financing target is a strategy to build public sectorsavings. This strategy, in turn, implies that the focus must be on theCentral Goverrment's finances because, for reasons described in Chapter 1,only limited additional contributions can be expected from either theNational Insurance Fund (NIF) or the public enterprises. Among the latter,the main scope for improvement is in the operations of the TransportBoard. Some improvements have already occurred, permitting the CentralGovernment to reduce its transfer to the Board last year. These effortswill have to be vigorously maintained, although largely because ofinstitutional inertia, success can be expected only gradually over time.The other hope is the NIF. However, its surplus has been falling lately,both because of increasing benefits and static revenues. Large increasesin NIF's contributions were levied as part of the stabilization program,and there may be little scope for substantial new increases sufficient toleave a sizable margin after covering rising claims.

3.20 Thus, attention must turn to the Central Government. A strategyto improve its finances will have to be carefully balanced between revenueand expenditure measures. While last year's fiscal outturn suggests thatrevenues fell as a share of GDP from 25.4% to 24.7% in 1984/85, it alsoindicates that, as in 1982/83, taxes on the income of individuals accountedfor a higher proportion (25%) of total tax revenue than in any year since1979/80. This increase occurred despite the Government's past policy ofreducing the burden of the personal income tax. At the same time,corporate tax receipts declined last year because business was weak. These

- 32 -

developments indicate a real dilemma for devising new revenue measures.There is a clear need to keep up the share of revenues in GDP, butelsewhere in this report we make strong argumLents for fiscal relief tobusiness as well as individuals as a way of stimulating entrepreneurialactivity and encouraging investment. It would appear that any new revenuemeasures will have to fall substantially on consumption, taxes on whichhave been increased almost annually in recent. years.

3.21 The major scope for improvement appears to be on the expenditureside. With interest payments rising, this option leaves the wage bill andexpenditures on goods and services as the chief targets for tight control.The current low inflation should strengthen the Government's bargainingposition in the next round of wage negotiations, especially since the 15%increase awarded in 1983/84 was about three times the domestic inflationrate. In the present exchange rate environment, when competitivenessissues are at the fore, the Government cannol: afford to relax its policy ofwage restraint, especially since its wage awards are used as a guide forwage negotiations elsewhere in the economy.

Table 7: PUBLIC SECTOR SAVINGS AND INVESTMENT(% of GDP)

Actual Prelim. Projected1983/84 1984/85 1985/86 1986/87 1987/88

Public Sector Savings 5.6 4.5 5.3 6.0 6.0

General Government 4.8 3.3 4.1 4.8 5.0of which: Central Govt. (2.3) (1.3) (2.0) (2.7) (3.0)

Non-Fin. Pub. Enterprises 0.8 1.2 1.2 1.2 1.2

Public Sector Capital 7.6 6.3 7.3 7.8 7.8Expenditure

Overall Deficit 2.0 1.8 2.0 1.8 1.8

3.22 Based on these assumptions, the Central Government's savings rateis projected to rise from the present 1.3% of GDP to 3.0% of GDP in1987/88. The rest of the public sector is expected to be able to maintainits present rate of savings. As such, public sector savings will grow from4.5% of GDP in 1984/85 to 6.0% of GDP in 1987/88. With public sectorcapital expenditures projected to increase from 6.3% of GDP to 7.8% of GDP,

- 33 -

public sector savings are targetted to finance just about three-quarters ofthe total. Financing of the resulting overall deficit of approximately 2%of GDP should be manageable.

3.23 Public sector investment for the four years 1984/85 through1987/88 amounts to BDS$769.2 million. In addition, external amortizationwill total BDS$227.3 million over the period. Total financing requirementstherefore amount to BDS$996.6 million. Public sector savings could beexpected to provide BDS$575.9 million, or 75% of public sector investmentover the period. It is estimated that net borrowing from domestic sourcescould provide BDS$52 million. The availability of financial savings overthe medium term is expected to be adequate to meet private sector financingneeds as well as this level of credit to the public sector.

3.24 External financing requirements have been projected on the basisof existing commitments for ongoing externally financed projects andcommitments required for the set of new projects contained in the publicsector investment program presented in this report. Gross project-relateddisbursements calculated on this basis amount to BDS$334 million (US$167million). Of this amount, BDS$214 million (US$107 million) representsdisbursements from existing commitments. The Government will thereforeneed to mobilize some BDS$120 million (US$60 million) in disbursements fornew projects over the next three years. The projections for overallfinancing of the public investment program are summarized in Table 8.

Table 8: FINANCING PUBLIC SECTOR INVESTMENT(BDS$ million)

1984/85 1985/86 1986/87 1987/88 Total PSIP

Public SectorInvestment 145.0 180.1 211.0 233.1 769.2

Public SectorSavings 103.6 130.7 162.3 179.3 575.9 74.9

Capital Revenue 1.3 - - - 1.3

Net External Fin. 31.5 27.4 48.8 32.8 140.5 18.3

Project-Related 52.6 76.0 112.4 93.3 334.3(of which:

Uncommitted) - 9.6 43.9 66.2 119.7Other 3.5 - - 30.0 33.5Amortization -24.6 -48.6 -63.6 -90.5 -227.3

Net Domestic Fin. 8.6 22.0 -0.1 21.0 51.5 6.7


- 34 -

IV. Economic Outlook

4.01 Discounting Barbados' susceptibility to exogenous factors such asexternal fluctuations and unpredictable weather, the economic outlookhinges strongly on the country's aLbility to master the challenges it nowfaces. It is a favorable sign that policymakers and industry operators arealready aware of the need to address the fundamental sectoral issues andhave begun to gather necessary information and take other readily availablemeasures to promote structural adjustment. Inevitably, the issue has to beaddressed on many fronts, and in addition to strengthening existingsectors, the Government is seeking to diversify the economic base further,such as by establishing Barbados as a recognized financial servicescenter. Appropriate development policies and actions at this juncture arecrucial for achieving the necessary strUctural changes for long-termgrowth.

Ak. Growth

4.02 The projections are based on t:he presupposition that the externalenvironment will provide no major shocks and that Barbados will go a longway in the medium term toward adapting its economic structure along thelines recommended in the preceding chapters. These assumptions arecritical to the outlook. Economic growt:h will therefore depend on thetourism industry getting back to capacit:y operations, sugar output reaLchingthe targetted 120,000 tons a year by the end of the projection period,continued good growth in the non-sugar agricultural sector based on thediversification projects now under way, and some measure of adjustment inthe manufacturing sector toward restoring its viability. Given theseassumptions, economic growth is projected to be slow in the next two years,at about 2% a year in real terms, and then to pick up gradually to 3.5% by1990.

4.03 Because of the low level to which economic activity has fallen inthe last four years, gross fixed capita;L formation dropped to 17% of GDP in1984, compared with 25% of GDP in 1980. To support further growth in theeconomy, investment and savings will have to rise. The implication is thatthe growth of consumption will have to be considerably compressed tofacilitate investment in structural adjustment and growth. Investment isprojected to rise to 20% of GDP to support the projected growth, while! realconsumption will grow slowly, by about 1.4% a year over the medium term.

B. Balance of Payments and Financing Requirements

4.04 On the whole, the projections indicate that the current accountof the balance of payments will improve steadily after 1986, but because ofthe changing structure of the capital account, Barbados will needadditional financing over and above project-related inflows during the nextfive years (see Table 9).

4.05 Export receipts are projected to grow at 16% a year on averagethrough 1990. Projected price increases for sugar (in excess of quotas)sold on the world market and for tourism on the assumption that the

- 35 -

industry will succeed in attracting larger proportions of up-marketvisitors account for much of the nominal export increase in the later yearsof the projection period. The growth of manufactured exports is basedmainly on prospects for exporting to third countries. In the next twoyears, electronic exports are projected to grow in real terms some 30% eachyear, in line with the firms' present projections. Their growth then isassumed to fall off, and total non-sugar exports are projected to grow atabout 4% annually in real terms thereafter, on the assumption that someheadway will have been made in further penetrating extra-regional marketsand/or resuscitating the CARICOM market. This outlook compares with a realdecline in non-sugar exports other than electronics over the last fouryears. These projections, however, could very well be far from realitybecause of the nature of Barbados' largest export earners, tourism andelectronics components. A couple of years of strong demand for tourismcould increase earnings 20% to 30% a year, while the fortuitous attractionof one or two new manufacturing plants with dynamic expansion plans couldcause a sudden surge in manufactured exports. The reverse is also true:sharp, sudden downswings are also likely. The projections made here are inthe medium range.

4.06 Total imports are projected to grow somewhat more slowly thanexports, at about 14% a year on average. The fastest growing component isintermediate goods, which are projected to expand in line withmanufacturing sector requirements. The other import components areprojected at the same rate as GDP, except that imports of fuel are heldconstant. This latter projection reflects BNOC's projections that domesticoil production will reach 803,000 barrels a year by 1987. The impliedincrease over 1984's 635,000 barrels will be sufficient to satisfy theprojected increases in domestic demand, including the requirements foroperating the cement plant. These projections yield a current accountbalance that improves steadily from a deficit of 4% of GDP in 1985 to asmall surplus of 1% of GDP in 1990.

4.07 The outturn of the capital account projections is affected by twocritical factors. One is the need to strengthen the external reserveposition by increasing net reserves. These are projected to increaseannually by amounts necessary to maintain a reserve cover equivalent to twomonths of imports. This level will be adequate if there is progress inliquidating Barbados' CMCF credit balances. The other important factoraffecting the structure of the capital account is the much higher level ofamortization (averaging US$43 million a year) compared to levels of US$7million a year in the six years prior to 1983. Financing requirements forthe balance of payments (other than project-related financing) thereforerange from US$67 million to US$24 million, with the larger amounts neededin the earlier years when the sectoral adjustments are taking place.

Creditworthiness

4.08 Two areas of uncertainty for the capital account are whether thefinancing requirements will be available on reasonable terms, and whetherBarbados will be able to find a satisfactory solution to the CMCF in whicha substantial part of its reserves are tied up. The outcomes cannot beclearly anticipated. However, the Caribbean Governments are working onsolutions to the CMCF problem. It should also be noted that the financingrequirements indicated in para 4.07 are not large in relation to GDP (about

- 36 -

3% on average), although in absolute terms, they may represent sizableamounts to be raised by a small country annually on the capital markets.However, Barbados has been gaining more and more exposure on the capitalmarkets. For example, it was able to raise US$19 million on reasonableterms on the Japanese market this year, an. accomplishment that shouldinspire confidence in lenders. Moreover, even though the projected levelsof borrowing largely envisage commercial terms, the debt service ratio isprojected to peak at 9% over the medium term, compared to 5% on averageover the past three years.

4.09 The projections assume that the authorities will take action topromote strong sectoral growth, a strategy that implies strengthening thebalance of payments current account. The authorities have in the pastdemonstrated prudence in managing the economy and in maintaining fiscalresponsibility. There is evidence that they intend to continue thisperformance. Some measures have already been taken to meet the presentdevelopment challenges and other prc,posals are being considered. In thesecircumstances, Barbados can continue to be considered creditworthy for Banklending on conventional terms.

Table 9: SUMMARY BALANCE OF PAYMENTS PROJECTIONS(US$ million)

Est. Projected1984 1985 1986 1987 1988 1989 1990

Domestic Exports & NFS 635.80 742.44 922.18 1064.09 1217.84 1394.31 1594.51Retained Imports & NFS 678.60 810.69 1005.80 1127.06 1264.12 1420.74 1599.92

Current Account Balance -36.20 -60.46 -76.75 -61.83 -49.20 -32.44 -14.18

Net Public Capital 15.60 61.26 94.35 70.53 58.80 46.24 29.38

Project-related (gross) 28.60 42.05 58.08 51.05 56.51 58.27 60.23Of which: Uncommitted - 0.70 16.01 27.02 43.66 55.74 58.99

Other Financing Requirements(gross) - 43.52 67.05 67.67 49.00 31].72 24.81

Amortization 13.00 24.31 30.78 48.19 46.71 43.75 55.67

Reserve Change 1.10 -15.80 -32.60 -23.70 -24.60 -28.80 -30.20


- 37 -

BARBADOS

GOVERNMENT'S PROJECT AND TECHNICAL ASSISTANCE LISTS

1. This report contains a list of major ongoing projects, a list ofprojects for which external financing will be sought during the period1985-88, and individual project descriptions. The two lists contain thename of the project, the expected lender(s), if any, the total cost, theexternal financing required and the counterpart contribution. Theindividual project profiles contain additional information that would be ofinterest to potential donors or lenders, including technical assistancerequirements and the present status of the project. Estimated costs are tobe regarded as indicative. A list of required technical assistance is alsopresented.

2. Data for these project lists, which will be presented at theCaribbean Group for Cooperation in Economic Development scheduled forJune 1985, were provided by the Barbados Government.

- 38 -

BARBADOS - MAJDR PROJECTS WITH FINANCING

(US$ million)

Total External Financing Interest Amorti- Grace CounterpartProjects Cost Amount Source Rate zation Period Financing

'L (Years) (Years) Amount '.

Agriculture

Springhall land lease project 1.40 0.47 CDB 4 15 5 0.93 66Scotland District Soil ConservationProject 5.S0 4.50 IGB ?-1/4;4 20 4 1.30 22Rural Development Project 6.30 4.10 IDE 2 27 a 2.20 35Bridgetown Fishing Port 12.30 B.00 IDB 4-1/2;2 15 1/12 B 1/2 4.30 35Poultry Production (Broiler/Breeder) 3.80 2.50 EDF;CFC 5 5 4 1.30 34

Industry

Industrial Development and Promotion(IDC and BOBi 10.00 8.50 IBRD;CDB 8-114;4 15;15 3;5 1.50 15Industrial Credit Project 12.5(0 10.50 IBRD 8-1/4 12 3 2.00 16Industrial Estates III 2.50 2.50 CDB 4;11 15;15 5;5 0.00 0

Transport

Airport West Coast Highway 44.50 24.50 IDB 9-114 15 4 20.00 45Access Road to Cement Plant 15.00 9.00 CDB 10-1/4 15 5 6.00 40Road Maintenace & Rebabilitation 20.23 11.00 IBRD Variable 12 3. 9.23 46

Energy

Petroleum Explor. & Dev. I (ENDC) 36.00 13.80 Cl.DA;Ven. 0;2 40;13 10;5 22.20 62

Water

Water Development III (BWA) 10.40 5.40 CIDA 3 30 7 5.00 48

Education

Rehabilitation of Primary andSecondary Education System 14.50 9.00 IBRD 7.35 15 3 5.50 38Student Revolving Fund II 3.25 2.00 IDB 2 25 9-1/z 1.25 38

Housing

Housing Guarantee Program 10.00 10.00 USAID 11.65 25 5 0.00 0

Other

Agricultural Diversification andEnergy Conservation - TA 3.70 2.70 IBRD 11.65 12 3 1.00 27

Sources: Ministry of Finance and mission estimates.

- 39 -

BARBADOS - MAJOR PROJECTS FOR WHICH FINANCING IS REQIUIRED, 1985186-87188

(USS million)

TotaIl External Financing Counterpart FinancingProjects Cost Amount Source Amount I

Agriculture

Speightstown Fisheries Project 2.50 1.75 EDF 0.75 30Tent Bay Fisheries Project 1.60 1.00 EDF 0.60 38Water Resources Dev. for Irrigation 5.00 3.50 IDB 1.50 30Integrated Livestock Production Proj 4.50 3.00 IOB 1.50 33Central Agronomic Research Lab. 3.00 1.95 EDF 1.05 35Sugar Industry Rehabilitation/Agric.Diversification Project 16.50 10.00 IMRD 6.50 39

Industry

Global Credit IV (BOB) 10.00 8.00 lOB 2.00 20Industrial Credit (Central Bank) 12.00 10.00 IBRD 2.00 17Industrial Estates 10.82 6.49 IDB .4.33 40

Tourism

Coastal Conservation 35.00 21.00 IDB 14.00 40Runway Rehab. - Inter'l Airport 10.00 6.00 CDB 4.00 40

Energy

Petroleum Explor. L Dev. II (BNOC) 40.50 10.00 CIDA;vEN 30.50 75Natural Gas Pipeline *(NPC) 2.50 1.50 Unknown 1.00 40

Transportition

Bridgetown Road Improvement andTraffic Management 12.00 8.00 IDB 4.00 33

leprovesent of Public Trrnsportation 2.6 1.56 Unknown 1.04 40

Port

Container Crane 10.00 6.00 EDF 4.00 40Bridgetown Port Expansion 37.29 24.24 IDB 13.05 35

Education

Education Project II 16.70 10.02 IBRD 6.68 40

Health

South,Nest Coast & Greater Bridge-Sewerage Project 24.70 16.80 IDB 7.90 32

New Psychiatric Hospital 8.50 6.00 IDB 2.50 296eriatric Hospital 3.50 2.25 IDB 1.25 36gueen Elizabeth Hospital Expansion 18.00 11.70 IDB 6.30 35

Housing

Sites and Services 10.00 6.00 IBRD 4.00 40Redev. of Graeme Hall Area 5.00 3.25 Unknown 1.75 35

Sources: Ministry of Finance and Mission estimates.

- 40

BARBADOS

I9S5/S6-IB7/8 h Project List - Individual Project Description

Agriculture

(US$ million)

I. NAME OF PROJECT: Speightstown Fisheries

II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Food and Consumer Affairs (Special Assignments Div.)

III. TOTAL ESTIMATED COST: US$2.5

iV, EXTERNAL FINANCING REQUIRED: US$1.75

V. LENDING AGENCY: EDF

VI. DESCRIPTION AND JUSTIFICATION:

a. Description: Construction Df a fishing port with landing jetty, chill storage and a market.

b. Justification: Improvement of the fishing industry and development of the Northwestern------------- Region.

Vil. COST COMPONENTS AND FINANCING:

Financed By

Lo:al External TotalSources Sources Amount Z

Local Costs 0.75 0.25 1.00 40Foreign Costs 0.00 1.50 1.50 60

Total Costs - Amount 0.75 1.75 2.50- X 30 70 100

- 41 -

VIII. DISBURSEMENT PERIOD:

Post1985/86 1986/87 1987/88 Total 1987/88

_- - - -- - - -- - - -- - ------- _ _

Local Sources 0.15 0.45 0.15 0.75 0.15

External Sources 0.35 1.05 0.35 1.75 0.35

Total 0.50 1.50 0.50 2.50 0.50

IX. STATUS OF PREPARATION: A design study is in progress

X. TERMS OF FINANCING:

lnterest Rate:Not known

Amortization Rate:

Xi. PROJECT IMPLICATIONS:

Operating and Maintenance Costs:Not known

Debt Obligations:

XII. TECHNICAL ASSISTANCE REQUIRED:

A. Project Preparation: No

D. Feasibility Studies, No

C. Project Implesentation: No

- 42 -

BARBADOS

18s5/B6-187/8B Project List - Individual Project Description

A,griculture

(US$ million)

I. NAME DF PROJECT: Teni: Bay Fisheries

II. EXECUTING GOVERNMENT AGENCY: Ministry of A,griculture, Food and--------------------------- Conisumer Affairs {Special Assiunments Div.)


IV. EXTERNAL FINANCING REHUIRED: US$1.0

Vf'. LENDING AGENCY: EDF


a. Description: Improvement of the fish landing site at Tent Bay, St. Joseph----------- to provide for a wider and dee,zer entrance channel for

fishing boats, extension to thi2 mooring area, shoreprotection work, an improved access road; a slipway,boat park and boat hau.ing facilities; and a jetty.

b. Justification: Improved safety for fishing boats using Tent Bay;------------- upgrading of the fishin,g industry on the East of the island.

VII. COST COMPONENTS AND FINANCING:

Financed By

Local External TotalSources Sources Amount 'L


Total Costs - Amount. 0.60 1.00 1.60- 7. 38 62 100

- 43 -


Post1985f86 1986/87 1987188 Total 1987/88

Local Sources - - - - 0.60External Sources - - - - 1.00

Total - - - - 1.60

IX. STATUS OF PREPARATION: Prefeasibility study and prelieinary designs

X. TERMS OF FINANCING;

Interest Rate:To be determined

Amortization Period:


Operating and Maintenance Costs:To be deterained

Debt Obligations:

XII. TECHNICAL ASSISTANCE REQUIRED: None

- 44 -

BARBADOS

1985/86-1987/88 Project List - Individual Projiect Description

Agriculture

(US$ million)

1. NAME OF PROJECT: Water Resource Development for Irrigation

II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture Food and--------------------------- Affairs aind Barbados Water Authority.


IV. EXTERNAL FINANCING RELUIRED: US$3.5

V. LENDING AGENCY: IDB


a. Description: To assist the Ministry of Agriculture in the development,----------- organization and maragement of water resources for

agricultural use. T'his wil] include the required operationalunits and commodities in order to provide farmers withirrigation technical assistaince, continuous monitoringand provide licenses, for drilling and pumping. To assistthe Government in the planning and implementation of therequired infrastructure to provide areas, already identifiedas agriculthre-oriented, with adequate quantities ofwater for the establishment of modern agriculture.The project will include the allocation of water foragriculture, construction of water supply systems andthe diversion of the water to the desired site.

b. Justification: The diversification program can be achieved only with the------------- assistance of irrigation systems, which call the need for a

proper water supply system.

-- 45 -


Financed By

Local External TotalSources Sources Amount X

Local Costs 0.90 0.00 0.90 18

Foreign Costs 0.60 3.50 4.10 B2



Post19B5/86 1986187 1987/88 Total 1987/88

Local Sources - - 0.30 0.30 1.20

External Sources - - 1.20 1.20 2.30

Total - - 1.50 1.50 3.50

IX. STATUS OF PREPARATION: A preliminary study by an hydrologist of the technical assistance

--------------------- team (Loan 2115-BAR) identified the needs for such a water resourcesdevelopment project.

X. TERMS OF FINANCING: Not known

Xi. PROJECT IMPLICATIONS: Not known

XII. TECHNICAL ASSISTANCE REQUIRED: Hydrogeologist; hydrologists_ _ _ _ _ _ _ _ _ _-- - - -

- 46 -

1M5/86-1987/38 ProJect List - Individual Projict Description

Agriculture

(USS mil lion)

I NAME OF PRWECT: Integrated Livestock Production Complex

II. EXECUTING GOVERNMENT AGENCY: Ninistry o Agriculture Food and- ---- - - ------------ - - - Consumer AFfairs.

Ill. TOTAL ESTIMATED COSTs USU5

Iv. EXTERNAL FINANCINS REWUIRED US$3.0

Y. LENDING AGENCY: 10I


a. Description: To promote and expand mutton and beef production----------- activities. To adviese the government of the industry

on the relevant techniologies of animal breeding,nutrition, husbandry and hygiene and to developtechnological packages suitable to small and medius scalefarmers and to large commercial operations. To providelong-tere investment credit to the industry in orderto implement the recommended technologies. To providefeasibility and to design incentives to attract privatesector's investment :in related processing plants suchas slaughtering faciLities arid by-product preparationof anisal nutrition.

b. Justification: The large import of Ueat on one hand and the------------- unutilized grazing area and sugarcane residues, call for

expansion of meat production activities in the country.


Financed By

Local External TotalSources Sources Amount %


Total Costs - Amount 1.50 3.00 4.50-2 33 &7 100

-47 -


Post1985186 1986/b7 1987/88 Total 1987188

Local Sources - - 0.25 0.25 1.25External Sources - - 0.50 0.50 2.50

Total 0.00 0.00 0.75 0.75 3.75

IX. STATUS OF PREPARATION: Requires pre-feasibility study.

X. TERMS OF FINANCING: Not known

XI. PROJECT IMPLICATIONS: Not known

XII. TECHNICAL ASSISTANCE REQUIRED: Animal husbandry specialists; animal--------------------------- nutrition specialists; mechanical engineer;

aqricultural-livestock economist.

- 4I -

BARBADOS

1985/86-1987/88 Project List - Individual Project Description

Agricultuire

(US$ million)

I. NAME OF PROJECT: Central Agronomic Research Laboratory

II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Food and--------------------------- Consumer Affairs


IV. EXTERNAL FINANCING REQUIRED US$1.95

V. LENDING AGENCY: EDF


a. Description: Construction of a research laboratory including departments----------- of plant pathology, entomology, horticulture and agronomy,

soils, and general administrative andlibrary facilities.

b. Justification: Improving and modernising the Ministry's research capability and------------- and contributing to savings on foreign exchange by reducing

food imports.


Financed By


Local Costs 1.05 0.00 1.5 T,5

Foreign Costs 0.00 1.95 1.95 65


- 49 -


Post1985f8b 198bl87 1987/8S Total 1987188

Local Sources 0.25 0.50 0.30 1.05 0.00External Sources - 1.00 0.95 1.95 0.00

Total 0.25 1.50 1.25 3.00 0.00

IX. STATUS OF PREPARATION: Designs have been done


Interest Rate:Not known

Amortization Period: )

XI. PROJECT IMPLICATIONS:

Operating and Maintenance Costs: Not known

Debt Obligations: Not known

Xii. TECHNICAL ASSISTANCE RELUIRED: None_ _ _ _ _ _ _ _ _ _ _ _ _- -

-- 50 -

BIARBADOS

19B5/X6-19E7/EE Project List, - Individual Project Description

Agriculture

(US$ million)

1 NAME OF PROJECT: Sugar Industry Rehabilitation/Agricultural--------------- Diversification

II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Food and--------------------------- Consumer Affairs

III TOTAL ESTIMATED COST: US$16.5

IV. EXTERNAL FINANCING REQiUIRED: US$10.0

V. LENDING AGENCY: IERD


a. Description: This agricultural development project is to include a sugar rehabilitation----------- component; provision of credit for replacement of equipment; and expansion of

mechanization, replcement of some sugar mill equipment; adaptive research forimproved varieties; technical assistance to improve the industry's operatingefficiency; and a crop diversification component.

b. Justification: Sugar production is a vital element in the economy.------------- Its survival will depend on increased productivity,

control of industry costs and ability to expand production.The other componerit will help reduce the economy's dependence on sugar.

VIII COST COMPONENTS AND FINANCING:

Financed By

Local External TotalSources Sources Amount Z


Total Costs - Amount 6.50 10.00 16.50x 39 61 100

- 51 -


Post1985/86 1986187 1987188 Total 1987/88


Total - - 4.00 4.00 12.50

IX. STATUS OF PREPARATION: Project needs to be identified




Xl. PROJECT IMPLICATIONS:

Operating and Maintenance Costs: )) Not known

Debt Obligations:


A. Project Preparation: Yes

8. Feasibility Studies: No

C. Project Implementation: Not known

-52-

BARBADOS

1985/B6-1987/88 Project List - Individual Project Description

Industry

(US$ million)

I. NAME OF PROJECT: Global Credit Ii

31. EXECUTING GOVERNMENT AGENCY: Barbados Development Bank (BDB)

III. TOTAL ESTIMATED COST: US$10

IV. EXTERNAL FINANCING'REDUIRED: US$8



a. Description: To replenish the global loan for onlending to medium- and----------- small-scale enterprises in the industrial, agricultural and

tourism sectors,,

b. Justification: To increase industrial and agricultural------------- production.


Financed By


Local Costs 2.00 3.20 5.20 52Foreign Costs - 4.80 4.80 48

Total Costs - Amount 2.00 8.00 10.00- x 20 80 100

_ 53 -


Post19B5/86 1986/87 1987/88 Total 1987188

Local Sources 0.30 0.30 0.30 0.90 1.10External Sources 1.20 1.20 1.20 3.60 4.40

Total 1.50 1.50 1.50 4.50 5.50

IX. STATUS OF PREPARATION: Discussed with IDB and BOB.

X. TERMS OF FINANCING: Not known.

XI. PROJECT IMPLICATIONS: Not known.

XII. TECHNICAL ASSISTANCE REQUIRED: Not known.__ ______ __ _________ ___ _-

- 5 4 -

15985/6-19B7188 Project: List - Individual Project Description

Industry

1US,$ million)

I. NAME OF PROJECT: Industrial Credit

II. EXECUTING 6OVERNMENT AGENCY: Central Bank of Barbados

III. TOTAL ESTIMATED COST: US$'12.0

I'J. EXTERNAL FINANCING REQUIRED: US$10.0

V. LENDING AGENCY: IBRD

VI. DESCRIPTION ANDn JUSTIFICATIDN:

a. Description: To provide, through qualified financial intermediaries,----------- credit to produ,ctive private enterprises.

b. Justification: To contribute to industrial development.


Financed By

Local External TotalSources Sources Amount

Local Costs 2.00 2.50 4.50 38Foreign Costs - 7.50 7.50 63

Total Costs - Amount 2.00 10.00 12.00- X 17 G3 100

5 55


Post1985/86 198b/87 1987/88 Total 1987/88

Local Sources - 0.40 0.40 1.60External Sources - - I.60 1.60 8.40

Total - - 2.00 2.00 10.00

IX. STATUS OF PREPARATION: Loan application to be submitted to IBRD.

X. TERMS OF FIN INCING: Not known.

Xl. PROJECT iMPLICATIONS: Not known.

XII. TECHNICAL ASSISTANCE REUUIRED: Not known.

-56 -

BARBADOS

1965/86-1987/BB Project List - Individual Project Description

Industry

(U0S$ million)

I. NAME OF PROJECT: Industrial estates

II. EXECUTING GOVERNMENT AGENCY: Barbados Industrial DEvelopment Coporation

Ill. TOTAL ESTIMATED COST: US$10.82

3IV. EXTERNAL FINANCING REQUIRED: US$6.49

V. LENDIN6 AGENCY: IDB


a. Description: The construction of additional factory space to meet----------- existing and projected demand.

b. Justification: Provision of required infrastructure for continued------------- industrial expansion.


Financed By


Local Costs 4.33 - 4.33 40Foreign Costs - 6.49 6.49 60


- 57 -


Post198518b6 1986187 19B7188 Total 1987188


Total - - 1.35 1.35 9.47

IX. STATUS OF PREPARATION: a loan application is to be made.



XII. TECHNICAL ASSISTANCE REQUIRED: Not known.

- 58 -

BARBADO'S

19B5166-l197188 Project List - Individual F:roject Description

Tourism

(US$ million)

1. NAME OF PROJECT: Coastal Conservation

II. EXECUTING GOVERNMENT AGENCY: Ministry of Housing and Lands


IV. EXTERNAL FINANCING REQUIRED: US$21.0

V). LENDING AGENCY: IGE


a. Description: Project provides for correction of a serious----------- coastal erosion problem that has resulted

in the washing away of beaches and significantland erosion arounci the island.

b. Justification: Preservation of beaches and prevention of------------- further beach erosion.


Financed By


Local Costs 14.00 - 14.00 40Foreign Costs - 21.00 21.00 E6

Total Costs - Amount 14.00 21.00 35.00- 1 -40 60 100

- 59 -


Post1985/86 1986/87 1987/88 Total 1987/88


Total 0.00 0.00 1.00 1.00 34.00

IX. STATUS OF PREPARATION: Prefeasibility study has been------------------ prepared with T.A. from

IDB.X. TERMS OF FINANCINS:

Interest Rate: Not known

Amortization Rate: Not known


Operating and Maintenance Costs: None



A. Project Preparation: None

8. Feasibility Studies: Yes (for detailed engineering studyand design)

C. Project Implementation: None

60 -

BARBADOS

1985/B6-19B7188 Project List - Individual Project Description

TDurism

(US$ million)

1. NAME OF PROJECT: Runway Rehabilitation

II. EXECUTING GDVERNMENT AGENCY: Ministry of Tourism and the Environment

III. TOTAL ESTIMATED COST US$10.0

IV, EXTERNAL FINANCING REQUIRED: US$6.0

V. LENDING AGENCY: CDB

a. Description: Rehabilitation of the runway at Grantley Adams International Airport.=---------- Components of the project will include design of tender document,

supervision of construction (anil assessment of the work one yearafter construction), and provision for plant and machinery.

b. Justification: To remedy the poor surface of the runway.------------- To contribute to continued growth of the tourist industry.


Financed By



Total Costs - Amount 4.00 6.00 10.00- 7 40 60 100)

- 61 -VIII. DISBURSEMENT PERIOD:

Post1985/86 1986/87 1987188 Total 1987/88LaSocs0 2-----0 -_ 4.00 0.00---

Local Sources 2.00 2.00 - 4.00 0.00External Sources 3.00 3.00 - 6.00 0.00

Total 5.00 5.00 0.00 10.00 0.00

IX. STATUS OF PREPARATION: DesiQn study is in progress



Amortization Rate: )


Operating and Maintenance Costs: Not known


XII. TECHNICAL ASSISTANCE REQUIREO:

A. Project Preparation: No

B. Feasibility Studies: No

C. Project Implementation: Yes

- 62 -

BARBADOS

1985/86-1987/G8 Project List - Individual Project Description

Energy

(US$ million'l

1. NAME OF PROJECT: Petroleum Exploration and Development

11. EXECUTING 6OVERNMENT AGENCY: Barbados National Oil Co. Ltd. (BNOC)



V. LENDIN6 AGENCY: CIDA, Venezuela

a. Description: Continuation of oil exploration and development program.

b. Justification: To increase production sci as to reduce the country's dependence on------------- imported energy.


Financed By


Local Costs 6.00 2.00 8.00 20Foreign Costs 24.00 8.00 32.00 BO


- 63 -


Post1985186 1986/87 1987/88 Total 19871B8

Local Sources - 8.50 9.00 17.50 12.50External Sources - 4.50 4.50 9.00 1.00

Total 0.00 13.00 13.50 26.50 13.50

IX. STATUS OF PREPARATION: Final designs are required



Amortization Rate: )


Operating and Maintenance Costs: )) Not known

Debt Obligations:

XII. TECHNICAL ASSISTANCE REQUIRED: Not known

- 64 -

BARBADOS

1985/86-19B7/88 Project List - Individual Project Description

Energy

(US$ millionl)

I. NAME OF PROJECT: Natural Gas Pipeline

II. EXECUTING GOVERNMENT AGENCY: National Petroleum Corporation



V. LENDING AGENCY: Possibly Supplier's credit

a. Description: Installation of a new pipeline from Woodborne to Belle, St. Michael----------- and to upgrade and expand the transmission system.

b. Justification: To exploit increased productioni which has been realized, and to extend=------------ the system to additional consuaers.

VII. COST COMPONENTS AND FINANCINB:

Financed By



Total Costs - Amount 1.00 1.50 2.50- 1. 40 60 100

- 65 -


Post1985/86 1986/87 19B7/88 Total 1?87/88


Total 0.00 0.95 0.95 1.90 0.60

IX. STATUS OF PREPARATION: An expanded drilling program has resulted in an--------------------- increased volume of associated gas.

X. TERMS OF FINANCIN6: Not known

XI. PROJECT IMPLICATIONS: Not known

XII. TECHNICAL ASSISTANCE REQUIRED: None= _ ____ ____ ____ _ __ __ _-

- 66 -

BARE ADDS

l?85/B6-19G7fGG Project List - Individual Project Description

Transportati on

(US$ million)

I. NAME OF PROJ3ECT: Gridgetown Road lIprovement and Traffic Management

II. EXECUTING GOVERNMENT AGENCY: M:inistry of Transport and Works

III, TOTAL ESTIMATED COST: US$12.0

IV. EXTERNAL FINANCING REQUIRED USE8.0

V. LENDING AGENCY: IDE

'!. DESCRIPTION AND JUSTIFICATION:

a. Description: Construction and improvements to roads and junctions,----------- and the reorganizing Df vehicular traffic flows

and parking for the city of Bridgetown.

b. Justification: To provide a solution to the Central Bridgetown traffic------------- congestion problem caused by limited vehicle

accessibility and the lack of adequate pedestrian capacity.


Financed By


_-- - - - - - _---..-_

Local CDsts 1.70 2.50 4.20 35Foreign Costs 3.10 4.70 7.80 65


- 67 -


Post1985186 1986/87 1987/88 Total 1987/88

Local Sources 0.05 0.80 1.60 2.45 2.35External Sources - 1.20 2.40 3.60 3.60

Total 0.03 2.00 4.00 6.05 5.95

IX. STATUS OF PREPARATION: Feasibil:ity study is in progress.

1. TERMS OF FINANCING Not knowni



- 68

BARBADOS

1985/X6-19B7/BB Project List - Individual Project Description

Trransportation

fUS$ million)

I. NAME OF PROJECT: Imiprovement of Public Transportation

II. EXECUTING GOVERNMENT AGENCY: .Ministry of Transport and Works



V. LENDING AGENCY: Unknown

VI. DESCRIPTION AND JUSTIFICATION:. _ _ _ _ _ _ _ _ _ _ _ _ _ _

a. Description: The construction and equipping of new headquarters----------- and workshops.

b. Justification: Improvement in the efficiency of the Transport Board and------------- the public transportation system.


Financed By




- 69 -


Post1985/86 1986/87 1987/88 Total 1987/88

Local Sources - 0.21' 0.42 0.63 0.41External Sources - 0.31 0.62 0.93 0.63

Total - 0.5 1.04 1.56 1.04

IX. STATUS OF PREPARATION: Prefeasibility study has to be done

X. TERMS OF FINANCING Not known



A. Project Preparation: None

D. Feasibility Studies: Yes


BARBADOS

11965/86-1987/8B Project List - individual Project Description

Transportation

(US$ millon)

1. NAME OF PROJECT: Road Maintenance and Rehabilitation--------------- Project 1I

i11 EXECUTINs6 GOVERNMENT AGENCY: Ministry of Transport and Works

III. TOTAL ESTIMATED COST, US$15

IV. EXTERNAL FINANCING REQUIRED US$10



a. Description: Highway reconstructior, maintenance and resurfacing;----------- acquisition of maintenance equipment and implementation

of a highway safety programme.

b. Justification: Improve of the road system, increase road safety, and------------- contribute to sustained economiic growth.


Financed By


Local Costs 5.00 0.00 5.00 33Foreign CDsts 0.00 10.00 10.00 67

Total Costs - Amount 5.00 10.00 15.00- % 33 67 100

- 71 _

VIII. DISBURSEtENT PERIOD:

Post1985/86 198b687 1987/88 Total 1987/88

Local Sources - - - 5.00External Sources - - - - 10.00

Total - - - - 15.00

IX. STATUS OF PREPARATION: Project preparation required_ _ _ _ _ _ _ _ _ _ _

K. TERMS OF FINANCING:

Interest Rate:) To be determined


XI. PROJECT IMPLICATIDNS:

Operating and Maintenance Costs:To be determined

Debt Obligations:

XII. TECHNICAL ASSISTANCE REOLIIRED:


B. Feasibility Studies: Yes

C. Project Implementation: No

- 72 --

BA RBADDOi

19805/B6-1987!,S18 Project List - Individual Plroject Description

Port

(US$ million)

}. NAME OF PROJECT: Container Crane

II. EXECUTING GOVERNMENT AGENCY: Barbados Port Authority

Ili. TOTAL ESTIMATED COST: US$4.0

IV. EXTERNAL FINANCING REQUIRED US$4.0

V. LENDING AGENCY: Supplier's Credit

VI. DESCRIPTION AND JUSTIFICATION: Acquisition of a mobile crane and related equipment that=---------------------------- riwill help in the development of Barbados

as a maij3r distribution center.

Vil. COST COMPONENTS AND FINANCING:

Financed By


Local CostsForeign Costs - 4.00 4.00 100

Total Costs - Amount - 4.00 4.00- - 100 100

_ 73


Post1985/86 1986/87 1987/88 Total 1987/88

Local SourcesExternal Sources - 4.00 - 4.00

_- - - -- - - -- - - -- - -------

Total 4.00 - 4.00

IX. STATUS OF PREPARATION: Updated costing has been done by------------------ consultants.





Operating and Maintenance Costs:



- 74 -

BARBADOS

1985186-1987/10 Project List - Individual Project Description

Port

(US$ million)

I. NAME OF PROJECT: Expansion of the Bridgetown Port

II. EXECUTING GOVERNMENT AGENCY: Civil Aviation and Shipping Division through the Port Authority

Ill. TOTAL ESTIMATED COST: USS37.30

IV. EXTERNAL FINANCIN6 REQUIRED US$24.20

V. LENDING AGENCY: IADB


a. Description: Purchase of equipment; laind isproviesent and reclamation; improvement

-==-------- and expansion of existing structures and service; studies for projects inin new areas of developmeiit, viz., (a) in the area east of the ShallowDraught Facility, creation of a limited berth marina facility with

related dry dock facilitii?s, and there may also be other support services1

small shops and a restaurint; (b) the use of the land southeast of thePort Administration Building for construction of additional office spacefor rent; and (cl redevelopment of the Careenage and adjoining inlandinland areas.

b. Justification: Improvements souqht will help to satisfy the present level and------------- projected growth in container cargo. Existing facilities need

to be upgraded. This project is ailso expected to expand the revenue base.

Vl. COST COMPONENTS AND FINANCING------ ------ ------ --- ----

Financed By



Total Costs - Amount 13.10 24.20 37.30

- 2 35 65 100

_75_


Post1985/86 1986/87 1987/88 Total 1987/88

Local Sources - - - 0.00 13.10External Sources - - - 0.00 24.20

Total 0.00 0.00 0.00 0.00 37.30

IX. STATUS OF PREPARATION: Feasibility study being prepared


Interest Rate:) To be determined



Operating and Maintenance Costs: None during period

Debt Obligations: To be determined


- 76 -

BARBADOS

I985/86-l9B7/B8 Project List - Individual Project Description

Education

(US$ million)

1. NAME OF PROJECT: Second Education Project

II. EXECUTING GOVERNMENT AGENCY: Ministry of Educatiion


IV. EXTERNAL FINANCING REQUIRED: US$lD.02



a. Description: Involves the construstion and improvement of----------- primary and secondary schools and provision of training.

b. Justification: To initiate measures that will lead toward a more------------- cost-effective and efficient educational system

and to increase the technical capability ofthe Barbadian people.


Financed By

Local External TotalSources Sources Amount

Local Costs b.68 - 6.68 40Foreign Costs - 10.02 10.02 60


-77 -


Post19B513b 19B6/87 1987/X8 Total 1987188


Total 0.50 2.00 4.50 7.00 9.70

IX. STATUS OF PREPARATION: Project is being appraised by IBRD.



XII. TECHNICAL ASSISTANCE REQUIRED: Not known.

- 78 -

BARBADC S

1985SB6-19B7/BB Project List - Individual Project Description

Health

(US$ millicn)

I. NAME OF PROJECT: South, West Coast and Greater Bricgetown Sewerage Project

II. EXECUTING GOVERNMENT AGENCY: Ministry of Tourism cind the Environment

III. TOTAL ESTIMATED COST: South Coast US$24.7-------------------- West Coast US$28.0

Greater Briigetown US$38.4

IV. EXTERNAL FINANCING REQUIRED: South Coast US:16.O---------------------------- West Coast USi;IG.2

Greater Bridgetown US$25.0



a. Description: Construction of sewerage s,,tems for the collection,----------- treatment and 'isposal of waste in the South, West

Coast and Greater Bridgetown areas.

b. Iustification: To improve health facilities in view of urban,------------- commercial, industrial and tourism development

in the areas mentioned.


Financed By



Total Costs - Amount 31.90 59.20 91.10- 35 65 100

- 79 -

VIII. DISBUlRSEMENT PERIOD:

Post1985186 19B6/87 1987128 Total 198i718

Local Sources - - 2.00 2.0f 29.90External Sources - - 3.00 3.00 56.20

Total 0.00 0.00 5.00 5.00 86.10

IX. STATUS OF PREPARATION: Feasibility studies and preliminary designs have been--------------------- done for all three areas. The government has applied

to IDB for technical assistance to prepare thefinal desiqns.


Interest Rate:

Amortization Rate:


Operating and Maintenance Costs: US$1.06 million p.a. for all three projects.

Debt Obligations: Not known.

XII. TECHNICAL ASSISTANCE RECUIRED:

A. Project Preparation: None.

B. Feasibility Studies: Final designs required.

C. Project Implementation: None.

- 80 -

BARBADOS

I985/86-l187/88 Project List - Irdividua] Project Description

Health

(US$ million)

I. NAME OF PROJECT: New Psychiatric Hospital

II. EXECUTING GOVERNMENT AGENCY: Ministry of Health





a. Description: The construction of a neI4 300-bed psychiatric hospital----------- with the necessary sDcia'i and reihabilitative environment.

b. Justification: To provide improved psychiatric care to the people------------- and to substantially reduce the institutional

population of the hospital.

VII. COST COMPONENTS AND FINANCIN6:

Financed Bv

Local External TotalSources Sources Amount 1


Total Costs - Amount 2.50 6.00 8.50Z. X29 71 100

- 81 -

VIII. OISBURSEMENT PERIOD:

Post1985/86 1986/87 19E7/88 Total 198718B


Total - 2.00 4.50 6.50 2.00

IX, STATUS OF PREPARATION: Feasibility study and design to start during 19B5.


Xi. PROJECT IMPLICATIONS: Not known.

XII. TECHNICAL ASSISTANCE REQUIRED: Feasibility study needed.

- 82

BARBADOS

1985/86-1987188 Project List - Individual Project Description

Health

(US$ millijn)

I. NAME OF PRIJECT: Geriatric Hospital


iIi. TOTAL ESTIMATED COST: US$3.5

lV. EXTERNAL FINANCING REQUIRED: US$2.25



a. Description: Upgriding of facilities or construction of new facilities----------- for housing the geriatric population that cannot take

care of itsel4.

b. Justification: To improve health care of elderly persons.


Financed By

Local External TotalSources Sources Amount I

Local Costs 1.25 - 1.25 36

Foreign Costs - 2.25 2.25 64_-- - -- - - -- - - -- -----_


- 83 -


Post1985/86 1986/87 1987/88 Total 1987/88


Total - 1.50 2.00 3.50 0.00

IX. STATUS OF PREPARATION: Feasibility study and design to start--------------------- during 1985. The study will proceed jointly

with the Psychiatric Hospital.

X. TERMS OF FINANCING: Not Known.





C. Project Implementation: Not known.

- 84 -

BARBADOS

19G5186-19671/8 Project List - Individual Project Description

Health

(US$ millioil

I. NAME OF PROJECT: Expansion of the Queen Elizabeth Hospital and Construction--------------- of Blebe Polyclinic


7III. TOTAL ESTIMATED COST: US$lB.0




a. Description: The construction of a new block comprising 12 beds for the----------- obstetric and gynecology department; a 34-bed child intensive

care unit; a 10-bed surgical intensive care burns unit; accomodationfor doctor-on-call; and improvement in offices and facilities forthe necessary support services. Construction and equipping a polyclinic atGlebe, St. George.

b. Justification: To meet increases in current and future demand for hospital------------- services; and to improve the quality of health care services.


Financed By


Local Costs b.30 - b.30 35Foreign Costs - 11.70 11.70 65


- 85 -


Post1985/86 1986/87 19B7/88 Total 1987/8B


Total 0.00 2.00 6.OO 8.00 10.00

IX. STATUS OF PREPARATION: Prefeasibility study has been done by the--------------------- Ministry of Health.

X. TERMS OF FINANCINS:

1) 2'l on US$7 millionInterest Rate: 2) 11. on the remaining

Amortization Rate: 35 years with 8-1/2 years grace period.


XII. TECHNICAL ASSISTANCE REOUIRED:



C. Project Implementation: None.

- 86 -

BARBADIIS

1985/86-1987/82 Project List - Individual Project Description

Housi nq

(US$ million)

NAME OF PROJECT. Sites and Services

II. EXECUTING GOVERNMENT AGENCY: Ministry of Housing arid Lands

III. TDTAL ESTIMATED COST: US$10.0


V. LENDING AGENCY: IBRI1


a. Description: Development of housing program for low-income families.

b. Justification:To improve the living standard of Barbadian citizens.


Finahced By


Local Costs 1.60 2.40 6.00 100

Foreign Costs 2.40 3.60 0.00 0

Total Costs - Amount 4.00 6.00 6.00- X 40 60 1C0O

- 87 -

VIIi. DISBURSEMENT PERIOD:

Post1985/86 1986/87 1987/88 Total 1987/88


Total 0.00 0.60 2.00 2.60 7.40

IX. STATUS OF PREPARATION: Prefeasibility study was financed by CDB.


Interest Rate: Not known

Amortization Rate: Not known


Operating and Maintenance Costs: None


XII. TECHNICAL ASSISTANCE REUUIRED:


D. Feasibility Studies: Yes


- 88 -

BARBADOS

1985/86-1987BB Project List - Individual Project Description

Housing

(US$ millioin)

I. NAME OF PROJECT: Redevelopment of the Grae:ie Hall iArea

II. EXECUTING GOVERNME AGENCY: Ministry of Housing h Lands



V. LENDING AGENCY: Unknown


a. Description: (i) A general ecological study of Graeme Hall Swamp in order to determine----------- management measures necessary in the area and how the risk and impact

of flooding may be reduced.(ii) Creation of a park in the eastern and western sections of the swamp;(iii) Improvement of certain residential areas; and(iv) Road improvements.

b. Justification: The area represents a sizable open space within the main------------- urban development corridoir running along the west and south coasts. It is

surrounded by large population concentrations and is thereforevulnerable to development pressure. This area has the potential tocontribute to local water resource management, recreation, education,research and economic development (e.g., tourism, aquaculture).


Financed By




- 89 -


Post1985/86 1986/87 1987/88 Total 1987/88


Total 0.00 0.00 1.25 1.25 3.75

IX. STATUS OF PREPARATION: The project needs to be prepared.


Interest Rate: To be determined.

Amortization Rate: To be determined

XI. PRDJECT IMPLICATIONS:

Operating and Maintenance Costs: Not known.

Debt Obligations: To be determined.

XII. TECHNICAL ASSISTANCE RELUIRED:



C. Project Implementation: Not known

- 9( -

BARBADOS: Technical Assistance Requirements

The following projects requ;Lre technical assistance forpreparation of project documentation and/or feasibility studies:

Sugar Industry Rehabilitation/Agricultural DiversificationWater Resources Development for IrrigationMunicipal Solid WasteUpgrading of Technical. Education SystemQueen Elizabeth Hospital (QEH) Expansion and Improvement a,nd

Construction of the Glebe PolyclinicScotland District Roacls DevelopmentRoad Maintenance and Rehabilitation II

The following nonproject-specific technical assistance schemesare also required:

Potato Development and ResearchFisheries Cooperative ManagementIrrigation EngineeringAnimal Feeds StudiesDevelopment and Analysis of an Integrated Livestock ProjectInvestigation and Resuscitation of the Sea Egg FisheryFood TechnologyAgro-industry StudyDevelopment of the Garment I:ndustryImprovement of the Tourism 'SectorRevegetation of the CoastlineWater Quality MonitoringBeach NourishmentPostal Services and TelecommunicationsImprovement of the Operations Control of the Police Department

- 91 -

BARBADOS

1985/86-1987/88 PROJECT 'LIST - TECHNICAL ASSISTANCE PROFILE

I. SECTOR: Agriculture

II. PROJECT TITLE: Sugar IndustryRehabilitation/Agricultural

Diversification

III. FUNDING AGENCY: IBRD

IV. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Foodand Consumer Affairs

V. DESCRIPTION AND JUSTIFICATION:

This is one component of a total agricultural development project.It will include provision of credit for renewal of equipment, andexpansion of mechanization; renewal of some sugar mill equipment; and

.adaptive research for improved varieties.

VI. TECHNICAL ASSISTANCE REQUIREMENTS:

Short-term expert services to assist in the preparation of theproject.

VII. ESTIMATED COST ('000): US$50

- 92 -

BARBADOS

1985/86-1987/88 PROJECT LIST - TECHNICAL ASSISTANCE PROFILE


II. PROJECT TITLE: Wat,er Resources Development forIrrigation

III. FUNDING AGENCY: IDB

IV. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Food andConsumer Affairs


To assist the Ministry of Agriculture in the development,organization and management of water resources for agricultural use.This project will include the required operational units andcommittees in order to provide farmers with irrigation technicalassistance, continuous monitoring and provide licenses for drillingand pumping.

To assist the Government in the planning and implementation of therequired infrastructure to provide areas, already identified asagriculture oriented, with adequate quantities of water for theestablishment of modern agriculture.

The project will include the a}.,location of water for agriculture,construction of water supply systems (dams, wells, etc.) and thediversion of the water to the desired site.

This project will also make available resources for small- andmedium-size farms to invest in irrigation systems.


Expert Services

VII. ESTIMATED COST (1000): US$3.8

- 93 -

BARBADOS


I. SECTOR: Energy

II. PROJECT TITLE: Municipal Solid Waste

III. FUNDING AGENCY: CIDA

IV. EXECUTING GOVERNMENT AGENCY: Energy Division/Ministry ofFinance and Planning


Construction of a building to house incinerators that burnresidential and commercial garbage. Intended capacity is 3.2megawatts (MW). It is expected that 3.0 MW of the energy that willbe converted into electricity will be sold to the Barbados Light andPower Company Limited.


Approximately 22 man-months of expert services for the preparationof a feasibility study.

VII. ESTIMATED COST ('000): US$200 (CAN$250)

VIII. STATUS:

The prefeasibility study has been completed.

- 94 -

BARBADOS


I. SECTOR: Education

II. PROJECT TITLE: Upgrading of Technical EducationSystem


IV. EXECUTING GOVERNMENT AGENCY: Ministry of Education


This component of the proposed Second Education Project will beconcerned with the development of human resources in Barbados. Thefocus will be on the development, of skilled manpower in severalacademic professional and technical areas, viz., curriculumdevelopment; testing measurement and evaluation; physical education;business education; family life education; music; computer sciences;secretarial science; guidance arLd counselling; studio maintenance;application of high technology; plumbing; electrical engineering;welding; building construction; management of data operations.Included also will be seminars in middle management and supervision,as well as attachments abroad.


The project will be executied over a three-year period, withtraining being provided locally and abroad. Consultancy servicesfrom within and outside the region will be utilized.

VII. ESTIMATED COST ('000): $4313.5

- 95 -

BARBADOS


I. SECTOR: Health

II. PROJECT TITLE: Queen Elizabeth Hospital (QEH)Expansion and Improvement, andConstruction of the Glebe Polyclinic

III. FUNDING AGENCY: Inter-American Development Bank(IDB)

IV. EXECUTING GOVERNMENT AGENCY: Ministry of Health


Hiring consulting services of the PAHO to provide advisory/trainingservices to the QEH for improving procedures in the administrativeand medical/nursing areas.

The immediate objecties include:

(a) improving the management efficiency of the QEH through bettermanagement information in the areas of hospital administration,accounting and medical records;

(b) improving the quality of training for health personnel,including training in the use of modern equipment to beprovided from the loan resources at the QEH, and development ofin-service and continuing education programs;

(c) improving the equipment maintenance system of the QEH byimplementing a preventive-oriented scheme;

(d) strengthening the integration of the QEH into the health systemby improving the coordination between the QEH and the primaryhealth care services;

- 96 -

(e) improving the medical and nursing care standards in emergency,surgical, neo-natal intensive cares and nosocomial infectioncontrol areas.

The ultimate objective is to improve significantly the delivery ofsecondary and tertiary health care in Barbados.

Further strengthening of th.e institutional capability of the QEH byproviding overseas training, consisting of short-term attachments tohospitals overseas as well as long-term formal training in thefields of health and hospit:al administration:

(a) the short-term attachments will be provided for up to eightlocal professionals/technici.ans for a period of up to threemonths each in a member country of the Inter-AmericanDevelopment Bank;

(b) the long-term training will be provided for one public healthprofessional (up to two years) in a suitable traininginstitution leading to the degree of Master of Public Health;and one professional on the staff of the QEH will be trainedfor up to two years in a suitable training institution leadingto the degree of Master of Hlospital Administration.


(a) the services of PAHO as a specialized agency to provide 78man-months of consultancy services;

(b) training attachments, short-term and long-term, as described inSection V above.


VIII. STATUS: LADB is considering the application.

- 97-

BARBADOS


I. SECTOR: Transport

II. PROJECT TITLE: Scotland District Roads Development


IV. EXECUTING GOVERNMENT AGENCY: Ministry of Transport and Works


The reconstruction, maintenance and resurfacing of roads in theScotland District; and improvement of road junctions

The objectives are to improve road safety, to improve access toagricultural areas and sand deposits required for the constructionsector, and to facilitate the soil conservation efforts beingundertaken in the area.


Approximately four man-months of expert services to assist withproject preparation.


- 98 -

BARBADOS

1985/86-1987/88 PROJECT LIST - TECHN:ICAL ASSISTANCE PROFILE

I. SECTOR: Transport

II. PROJECT TITLE: Road Maintenance and Rehabilitation(2nd Loan)


IV. EXECUTING GOVERNMENT AGENCY: Ministry of Transport and Works


Reconstruction, maintenance and resuriacing of highways throughoutBarbados.

The project will be a second phase of the Road Maintenance andRehabilitation Project financed by the World Bank (Loan No.2432-BAR).

The objectives are to improve the road system to a standardconsistent with present and projected future growth in traffic; tofacilitate economic growth and to increase road safety.


Approximately four man-months of expert services to assist withproject preparation.

ESTIMATED COST ('000): US$50

99 -

'BARBADOS



II. PROJECT TITLE: Potato Development and Research

III. FUNDING AGENCY: IDRC



(a) to advocate development of potato production in the countrythrough research and extension within the Ministry ofAgriculture;

(b) to increase potato production and productivity through improvedagronomic techniques;

(c) to develop, with the support of CIP in Peru, improvedcultivators in Peru that will give higher yield, resistance oftolerance to pests and diseases and better adaptation toBarbadian conditions;

(d) to develop fast multiplying and high yielding varieties ofpotatoes.


- One (1) expert (3 years)- Equipment

ESTIMATED COST ('000):

(3-year project) US$228.0IDRC US$101.5Government US$126.5

- 100 -

BARBADOS



II. PROJECT TITLE: Fisheries Cooperative Management

III. FUNDING AGENCY: Unkncwn

IV. EXECUTING GOVERNMENT AGENCY: Cooperatives Divsiion, Ministry ofAgriculture, Food and ConsumerAffairs


(a) to study the socioeconomic structure of the fishing industry;

(b) to identify any groups within the industry that couldreasonably benefit from further organization;

(c) to assist any groups identified under (b) above to organi.zeinto fishing cooperative to facilitate better the developmentof the industry;

(d) to provide advice, particularly in the area of management, toany cooperative;

(e) to provide training for the officers of cooperatives wherepossible so as to promote the concept of self-management;

(f) to advise on ways and means of better promoting cooperatiLvedevelopment within t!he fisning industry.

The expert will work with the fishing industry and will try toorganize fishermen into cooperatives with a view to improving thequality of the industry. Particular attention will be given toimproving the procurement of fishing inputs as well as to theimprovement of marketing and distribution.

VI. TECHNICAL ASSISTANCE REQUIREMENrS:

One (1) expert (18 man-months)

VII. ESTIMATED COST ('000):

Technical assistance: US$56.5Local costs: US$4.5

- 101 -

BARBADOS



II. PROJECT TITLE: Irrigation Engineering

III. FUNDING AGENCY: Unknown

IV. EXECUTING GOVERNMENT AGENCY: Barbados Agricultural DevelopmentCorporation


(a) to advise the Corporation on the operation and maintenance ofirrigation systems already in place and the conduct of properwater management practices;

(b) to advise the Corporation on the design, installation,operation and maintenance of irrigation systems whereverfeasible on lands under its control.




_ 10o -

BARBADOS



II. PROJECT TITLE: Animal Feeds Studies

III. FUNDING AGENCY: FAO

IV. EXECUTING GOVERNMENT AGENCY: P1inistry of Agriculture, Food andConsumer Affairs (Animal NutritionUJnit)


To examine the technical, economic and financial feasibility ofestablishing a plant for the processing of locally availablelivestock and poultry offals, feathers, and skins and otherbyproducts and fish waste into animal feeds.


Three (3) experts:

(a) Agricultural Economist(b) Food Engineer(c) Animal Scientist

(Members of the team should all liave had post-graduate training andat least four years' experience in their respective fields.)


- 103 -

BARBADOS



II. PROJECT TITLE: Development and Analysis of anIntegrated Livestock Project

III. FUNDING AGENCY: IADB


V. DESCRIPTION AND OBJECTIVES-.

(a) a review of the livestock sector paying special attention tothe relevant areas for inclusion into the Integrated LivestockProject (ILP);

(b) the formulation of the ILP;

(c) the analysis of the project developed under (b) above;

(d) recommendations on implementation requirements, scheduling andmanagement.


Three (3) experts:

(a) Livestock Specialist;

(b) Livestock Economist with experience in project formulation andanalysis

(c) Marketing Specialist with experience in slaughterhouse designand management.


IADB: US$22

Government of Barbados US$13

- 104-

BARBAI)OS

1985/86-1987/88 PROJECT Ll]ST - TECHNICAL ASSISTANCE PROFILE


II. PROJECT TITLE: 'Investigation and Resuscitation. oft:he Sea Egg Fishery

III. FUNDING AGENCY: CIDA

IV. EXECUTING GOVERNMENT AGENCY: Fisheries Division, Ministry of:agriculture, Food and ConsumerAffairs


The project will be a two-year f:ield and laboratory exerciseconducted by the Marine Biologist:.

It is expected that the project will provide a sound data base onwhich future monitoring and management programs can be developed tofacilitate the resuscitation of the sea urchin fishery and toprevent future collapse of the f:ishery.

By resuscitation of the fishery, increased employment and incomewill be provided and an additional source of protein will beavailable.

VI. TECHNICAL ASSISTANCE REQUIREMENTS,:

Equipment and supplies

VII. ESTIMATED COST ('000); UJS$45.5

CIDA US$30.0

- 105 -

BARBADOS



II. PROJECT TITLE: Food Technology




(a) to advise local food processing establishments on ways ofimproving the quality of their products;

(b) to help local food processing establishments to improve theiroperating efficiency.



VII. ESTIMATED COST ('000): US$152.5

Technical assistance: US$126.0

Local costs: US$ 26.5

- 106 -

BARBADOS

1985/86-1987/88 PROJECT L,IST - TECHNICAL ASSISTANCE PROFILE


II. PROJECT TITLE: Agro--industry Study


IV. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Food andConstLmer Affairs


To prepare a detailed program for agro-industrial development in- Barbados, specifically to:

(a) examine the structure and organization of the agriculturalsector;

(b) having assessed its potential for expansion, formulate adetailed program for the development of the sector; and

(c) identify and prepare profiles for projects to be implementedunder the program.


Two (2) experts:

(a) an Agricultural Economist with post graduate training ancl atleast six years' post-graduate experience in this area;

(b) a food technologist with post-graduate training and at leastsix years' post-graduate experience in this area.


- 107 -

BARBADOS


I. SECTOR: Export Promotion

II. PROJECT TITLE: Development of the Garment Industry


IV. EXECUTING GOVERNNENT AGENCY: Export Promotion Corporation (EPC)


(a) to work with EPC's commercial officer in New York to advise onfabric selection and purchase, design trends, distributionchannels, technical sales and other marketing matters;

(b) to improve existing systems and upgrade the skills of theoperators in these operations;


- 1 Marketing Consultant

- 1 Expert in Garment Factory Management

- 1 Expert Pattern Maker and Grader

- 1 Study Engineer


- 108 -

BARBADOS


I. SECTOR: l'ourism

II. PROJECT TITLE: Improvement of the Tourism Sector

III. FUNDING AGENCY: CiAS

IV. EXECUTING GOVERNMENT AGENCY: Ministry of Tourism


(a) upgrading the financiaLl reporting and management skills in thehotel sector;

(b) improving tourism marketing services.


(a) experts to assist in the prcovision of training programs at theexecutive level for Barbadian hote liers in accounting; pricingof the tourism product; costing, including the control ofcosts; and personnel relations;

(b) planning and assisting in migratory exhibition on Barbados;

(c) planning, implementing ard the provision of funds for theproduction of promotional material for a Group ActivitiesProgram;

(d) planning and executing a marketing intelligence program.


- 109 -

BARBADOS


I. SECTOR: Coastal Conservation

II. PROJECT TITLE: Revegetation of the Coastline

III. FUNDING AGENCY: Government of Japan

IV. EXECUTING GOVERNMENT AGENCY: Ministry of Housing and Lands


Coastal erosion has been identified as a very serious problem. Anurgent need exists to investigate the feasibility of revegetation ofthe coastline as a means of slowing down the erosion. Specifically,research is required to:

(a) determine the types of trees and shrubs most suitable;

(b) define specific lengths of coast and planting patterns, takinginto account the public's demand for shade and open spaces;

(c) undertake planting schemes on a trial basis along selectedlengths of coast;

(d) define the economic aspects and long-term benefits, if any.


Consultancy mission to undertake a feasibility study to determinethe above.

VII. ESTIMATED COST ('000): Unknown

- .110-

BARBAkDOS



II. PROJECT TITLE: Water Quality Monitoring




Coastal erosion has been iLdentiiied as a very serious problem. Anurgent need exists to:

(a) identify and quantify the major sources of pollution, e.g.,groundwater, stream discharges, line services;

(b) identify and quantify the major polluting factors in eachsource, as they relate to coral reef death;

(c) develop schemes to improve near-shore water quality;

(d) define economic aspects and time frames.


Consultancy mission to carry out a full-scale feasibility study ofthe above.


- 111-

BARBADOS



II. PROJECT TITLE: Beach Nourishment




Coastal erosion has been identified as a very serious problem. Anurgent need now exists to determine:

(a) the volume, grain size and water depth of offshore sandsupplies;

(b) the feasibility of using these supplies (if any) for beachnourishment in conjunction with other structural schemes;

(c) the possible use of land sand sources;

(d) legal implications;

(e) economic aspects;

(f) plant and equipment needs.

VI. TECHNICAL ASSISTANCE REQUI]REMENTS:

Consultancy mission to undertake a feasibility study to determinethe above.


- 112 -

BARBADOS

1985/86-1987/88 PROJECT LI:ST - TECHNICAL ASSISTANCE PROFILE

I. SECTOR: Communications

II. PROJECT TITLE: E'oastal Services andT'elecommunications

III. FUNDING AGENCY: ODA

IV. EXECUTING GOVERNMENT AGENCY: Ministry of Information and Culture


(a) reorganization of the inlanct mail delivery system on a regionalbasis;

(b) development of a postal code (the development of such a codewill drastically reduce missorting of mail which not onlycauses delays but increases the workload in view of the double-handling procedures);

(c) training for staff of the Telecommunications Unit.


Two (2) experts (5 man-months)


- 113 -

BARBADOS


I. SECTOR: Services

II. PROJECT TITLE: Improvement of the OperationsControl Centre of the PoliceDepartment

III. FUNDING AGENCY: ODA

IV. EXECUTING GOVERNMENT AGENCY: Ministry of Legal Affairs


(a) to strengthen the existing framework of law and order;

(b) to improve and update the Operations Control Centre of thePolice Force.

VI. TECHNICAL ASSISTANCE REQIJIREMENTS:

- 1 computer (including -installation);

- ballistics equipment;

- forensic science equipment;

- training of two police officers in computerization;

- training in ballistics (1 police officer).


114

STATISTICAL APPENDIX

TABLE OF CONTENIS

Table

I. POPULATION AND LABOR FORCE

1.1 Population Trends, 1976-841.2 Labor Force, Employmnent and Unemployment, 1976-841.3 Employed Labor Force by Industry, April-June 1983 and 1984

II. NAkTIONAL ACCOUNTS

2.1 Sectoral Origin of Gross D)omestic Product at Current Prices1976-84

2.2 Sectoral Origin of Gross Domestic Product at Constant Prices,1974-84

2.3 Expenditure on Gross Domestic Product at Current Prices,1976-84

2.4 Actual and Projected Resources and Use of Resources,1984-90

III. BALANCE OF PAYMENTS

3.1 Balance of Payments, 1976--843.2 Merchandise Exports (f.o.b) by Major Commodities, 1976-843.3 Merchandise Imports (c.i.E) by End Use Category, 1976-843.4 Direction of Trade, 1976-343.5 Merchandise Exports (f.o.b) to CARICOM and Other Commonwealth

Caribbean Countries, 1976-843.6 Merchandise Imports (c.i.f) from CARICOM and Other

Commonwealth Caribbean Countries, 1976-843.7 Official International Reserves, 1976-843.8 Actual and Projected Balance of Payments, 1984-90

IV. EXTERNAL DEBT

4.1 External Public Debt: Operations, 1979-84

V. PIJBLIC FINANCES

5.1 Central Covernment Finances, 1977/78-1984/855.2 Central Government Revenues, 1977/78-1984/855.3 Central Government Expend:Ltures by Economic Classifications,

1977/78-1984/85

- 115 -

STATISCAL APPENDIX

TABLE OF CONTENTS (Continued)

Table

V. PUBLIC FINANCES (Continued)

5.4 Central Government Capital Expenditures by EconomicClassifications, 1977/78-1984/85

5.5 Central Government Transfers, 1977/78-1984/855.6 Consolidated Public Sector Finances, 1977/78-1984/855.7 Public Sector Investment Program, Externally Financed

Projects, 1984/85-1987/885.8 Public Sector Investment and Financing, 1984/85-1987/88

VI. BANKING SYSTEM

6.1 Summary Accounts of the Banking System, 1976-846.2 Summary Accounts of the Monetary Authorities, 1976-846.3 Summary Accounts of the Commercial Banks, 1976-846.4 Detailed Accounts of the Trust Companies, 1976-846.5 Commercial Banks Selected Interest Rates, 1968-84

VII. PRICES

7.1 Retail Price Index, 1979-847.2 Wage Rates in Selected Sectors, 1978-84

VIII. SELECTED SECTORAL STATISTICS

8.1 Production of Selected Agricultural Commodities, 1977-848.2 Sugar Statistics, 1977-848.3 Production of Selected Manufactured Goods, 1977-848.4 Manufacturing Production Indices, 1975-848.5 Selected Industrial Exports by Destination, 1981-838.6 Water Services, 1977-84

:IX. TOURISM

9.1 Tourism Statistics, 1979-849.2 Visitor Arrivals by Country of Residence, 1977-849.3 Average Length of Stay of Guests by Type of Accommodation,

1977-839.4 Percentage Bed Occupancy by Type of Accommodation, 1976-83

_ 116 _

Table l.I: BARBADOS - POPULATION TRENDS, 1970 - 84

1976 1977 19!78 :979 1980 1961 1982 1983 1984

"in thousands)

Population (heqinning of period) a! 246.1 246.7 7 247.5 248.2 248.8 249.4 250.4 251.2 252.2

Natural increase 2.3 2.2 2 2.2 2.1 2.5 2.7 2.5 2.3Births 4.6 4 3 4.3 4.3 4.1 4.4 4.5 4.5 4.1Deaths 2.3 2,1 2.1 2.1 2-0 1.9 1.8 2.0 1.8

Net migration -1.7 -1,4 -1.5 -1.6 -1.5 -1.5 -i.9 -1.5 -1.6

Population (end of period) 246.7 247,,5 248.2 248,8 249.4 250.4 251.2 252.2 252.9

(As X of population at the beginning of the year)

Rate af natural increase 0.9 0,9 0.9 0.9 0.8 1.0 1.1 1.0 0.9

Birth rate 1.9 1.7 1.7 1.7 1.6 1.8 1.8 1.8 1.6Death rate 0.9 0.9 0.8 0.8 0.8 0.8 0.7 0.8 0.7

Rate of net migration -0.7 -0.6 -0.6 -0.6 -0.6 -0.6 -0.8 --0.6 -0.6

Rate of population increase 0.2 0.3 0.3 D.2 0.2 0.4 0.3 0.4 0.7(end of year)

a! Estimated population in census of Miy 12,1980 was 249,0421

Source: Barbados Statistical Service.

- 117 -

Table 1.2: BARBADOS - LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT,1976-84 a/

(in thousands)

el1976 1977 1978 1979 1980 1981 1982 1983 1984

Adult Population bi 163.5 166.0 167.9 170.5 172.4 173.6 174.7 175.9 176.5Male 74.9 76.2 77.3 78.7 79.7 80.3 80.8 81.3 81.6Female B8.6 89.8 90.6 91.8 92.7 93.3 93.9 94.6 94.9

Labor Force 104.0 103.4 101.3 108.8 113.3 112.2 112.7 113.5 113.2Male 57.6 57.7 57.1 59.5 61.4 61.9 61.3 61.4 61.3Female 46.4 45.7 44.2 49.3 51.9 50.3 51.4 52.1 51.9

Total Employed 87.7 B7.2 87.5 94.8 99.4 100.2 97.3 97.0 95.4Male 50.6 51.6 50.7 54.4 56.2 57.4 55.1 54.6 54.3Female 37.1 35.6 36.8 40.4 43.2 42.8 42.2 42.4 41.1

Total Unemployed 16.3 16.2 13.8 14.0 13.9 12.0 15.4 16.5 17.8Male 7.0 6.1 6.4 5.1 5.2 4.5 6.2 6.8 7.0Female 9.3 10.1 7.4 8.9 8.7 7.5 9.2 9.E 10.8

(as X of adult population)

Labor Force c/ 63.6 62.3 60.3 63.8 65.7 64.6 64.5 64.5 64.1Male 35.2 34.8 34.0 34.9 35.6 35.7 35.1 34.9 34.7Female 28.4 27.5 26.3 28.9 30.1 29.0 29.4 29.6 29.4

(as Z of labor force)

Unemployment d/ 15.7 15.7 13.6 12.9 12.3 10.7 13.7 14.5 15.7Male 6.7 5.9 6.3 4.7 4.6 4.0 5.5 6.0 6.2Female 8.9 9.8 7.3 8.2 7.7 6.7 8.2 8.6 9.5

a/ Based on the 1980 population cesus and quarterly or half yearly labor force survey estimates. Results ofthe 1980 census are used to estimate the proportion of adult population in inter-census years.

bl Persons 15 years of age and over.c/ in relation to the adult population.d/ In relation to the labor force; unemployed persons comprise those actively seeking work withina three-month period prior to the date of interview.

e/ First quarter data.


- 1.8-

Table 1.31 LRAO - EMPLOYD LNIUM FOUCE DY IMTRY, 1933 AND 1984 a/

(000 Persons)

MITN SEXES NALE FEMALE

19183 19B4 1913 1914 1993 1904

Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr.-Marc June Marc June Mrc June Marc June Marc Juno! larc Jun

Agriculture & Fishing 7.7 8.4 10.1 9.6 4.7 5.0 6.8 5.3 3.0 3.4 3.3 3.3

lanufacturing 13.0 14.4 13.0 11.9 5.4 7.1 5.2 5.5 7.6 7.3 7.8 6.4

Electricity,1 as I Mater 1.7 1.9 2.0 1.9 1.4 1.6 1.7 1.8 0.3 0.2 0.3 0.1

Construction & uarrying 8.2 6.7 6.2 8.1 7.9 6.3 5.8 8.0 0.3 0.4 0.4 0.1

Distributive Trades, Resturants IHotels 22.4 22.6 20.1 19.2 10.9 11.6 9.6 9.7 11.5 11.0 10.5 9.5

Transport A Commuication 5.5 5.9 5.2 4.6 4.2 4.5 4.0 3.6 1.3 1.4 1.2 1.0

Financial Institutions & Insuranc 4.7 3.3 3.8 2.7 1.7 1.1 1.9 1.1 3.0 2.2 2.0 1.6

Services bl 33.7 33.4 35.0 33.8 19.4 16.9 19.4 17.2 15.3 16.5 15.6 16.6

TOTAL EMPLOYED 96.9 96.5 95.4 90.9 54.6 54.1 54.3 52.2 42.3 42.4 41.1 38.6

a/ Based on the continous household sasple survey.bl Includes government and others.


- 119 -

Table '.1. B.AR iOS - SEC'T.AL OR-.iGiN O1F GROSS DOMESTIC PRODUCT AT CURRENT PRICES, 1976-B4

(D8$ million)

Revised Revised FR-evised Revised Prelim.1976 1977 1978 i979 1980 1981 1982 1i983 1984

Sugar 49.i 54.7 51.7 64.0 96.0 69.8 56.2 57.0 59.0

OLther Agriculture and Fishin 28.7 37.1 40.0 45.8 56.2 59.1 65.8 7B.6 82.4

Mining and Quarr,4n 2 4.4 6.9 9.3 li.3 5 16.1 16.3 29.4

Man u f ac turig 84.8 i0 2o. 1 i 12 .4 136 . 4 169.0 189.7 205.5 238.7 264.1

Electricity and W ater 1.2 14.1 15. 7 1 3 . . 68.0

construction 55.6 60.1 75.1 82.1 11i8.2 18.3 122.1 132.35 10.0

Whol-esale and .Retail Trade 165.2 182.0 204.8 259.4 319.0 368.8 398.0 378.5 412.3

Tourisr, 65.5 87.7 109. 7 144.0 218.9 206.5 181.1 186.5 206.8

Transport, St'orage ' communications 55.9 60.1 64.2 70.1 86.9 113.0 134.8 154.1 171.0

Business and General Services 142.9 145.1 153.4 181.1 192.7 279.6 326.9 339.8 35&6

Government Services 127.8 142.2 150.6 179.6 218.2 229,.7 233.0 264. 295.5

GDP at Factor Cost 788.0 890.1 984.5 1196.1 1483.8 1706.2 1784.2 1898.9 2075.0

Net Indirect Ta,kes 85.4 103.5 127.6 152.2 194.7 198.4 205.8 2 13.7 2 128.2i0P a't Market Prices 873.4 993 .6 1112.1 1348.4 1678.5 1904.6 1990.0 2112.7 2303.2

Sources: Barbados Statistical Service; Central Bank.

-120-

Table 2.2: BARBADOS - SECTORAL ORIGIN OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES, 1974-84

(1974 BD$ million)

Revised Revised Revised Prelis.1974 1975 1976 197'7 1978 1979 1980 1991 1982 1983 1984

Sugar 46.8 41.7 43.8 51.1 43.0 48.5 57.6 40.8 37.3 36.0 42.5

Other Agriculture and Fishing 21.7 24.5 27.1 21.3 29~,4 29.8 25.0 26.9 28.B 33.1 34.1

Mining and guarrying 0.8 0.9 1.3 1.1 1.6 1.6 2.0 1.8 1.8 2.1 2.8

Manufacturing 62.6 69.3 81.0 79,5 81.4 92.8 98.4 89.9 90.3 92.0 90.2

Electricity and Water 9.6 10.1 10.8 12,3 14.2 15.8 16.8 16.5 16.7 17.8 19.0

Construction 52.8 44.1 49.9 43.1 46.3 52.7 56.4 58.7 51.7 51.2 51.7

Wholesale and Retail Trade I118.3 119.6 122.2 124.6 129.5 142.0 156.7 158.2 145.5 141.1 144.6

Tourism 64.1 56.1 57.9 77.1 B6.3 107.0 112.0 103.6 89.1 87.3 92.5

Transport, Storage Ii communications 43.6 43.4 44.4 45.5 46.,6 48.3 49.7 51.9 53.5 54.3 54.8

Business and General Services 123.0 120.2 118.3 121.3 123.0 126.1 128.1 130.3 133.6 133.5 134.2

6overnment Services 97.1 97.1 97.2 101.1 109.2 102.0 101.1 104.0 100.8 100.8 100.8

GDP at Constant Factor Prices 640.4 627.0 653.9 678.0 710,5 766.6 803.8 782.6 749.1 749.2 767.2

Real Growth -2.3 -2.1 4.3 3.7 486 7.9 4.9 -2.6 -4.3 .0 2.4GDP Deflator (1974 =100) 100.0 111.7 120.5 131.3 138,6 156.0 190.4 218.4 242.0 254.8 268.2

Sources: Barbados Statistical Service; Central Bank.

- 121 -

Table 2.3: BARBADOS - EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CURRENT PRICES, 1976-84

(BD$ million)

Revised Revised Revised Revised Prelim.1976 1977 1978 1979 1980 1981 1982 1983 1984

Consumption 771.4 892.9 916.5 1113.8 1381.4 1605.8 1657.7 1801.9 1988.1Private 620.0 720.8 726.8 qO3.5 1089.0 1267.6 133B.7 1455.8 1596.8Government 151.4 172.1 189.7 210.3 292.4 338.2 319.0 346.1 391.4

Gross fixed capital formation 235.9 194.1 254.5 317.2 424.3 525.0 450.5 421.2 400.7

Exports of goods and NFS 425.0 556.0 674.5 915.1 1112.5 1130.8 1221.3 1318.6 1481.0

Imports of goods and NFS 558.9 649.4 733.4 997.8 1239.7 1357.0 1339.5 1429.0 1566.6

Gross Domestic Product at m.p. 873.4 993.6 1112.1 1348.4 1678.5 1904.6 1990.0 2112.7 2303.2

(as X of GDP)

Consumption 88.3 89.9 82.4 82.6 82.3 84.3 83.3 85.3 86.3Private 71.0 72.5 65.4 67.0 64.9 66.6 67.3 68.9 69.3Government 17.3 17.3 17.1 15.6 17.4 17.8 16.0 16.4 17.0

Gross fixed capital formation 27.0 19.5 22.9 23.5 25.3 27.6 22.6 19.9 17.4

Exports of goods and NFS 48.7 56.0 60.6 67.9 66.3 59.4 61.4 62.4 64.3

Imports of goods and NFS 64.0 65.4 65.9 74.0 73.9 71,2 67.3 67.6 68.0

Gross Domestic Product at m.p. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Sources: Barbados Statistical Service; Central Bank and mission estimates.

- 122 -

Table 2.4: BARBADOS - ACTUAL AND PROJECTED USE OF RESOURCES, 1984-90

(BDSS million at M984 prices)

Est. P R O J E C T E D

1984 1985 1986 1987 1988 1989 1990

GDP at market prices 2303 2349 2396 2451 2513 2588 2679

Resource Gap 86 116 110 25 17 14 16Imports, 6NFS 1357 1547 1789 1855 1926 2003 208BExports, 6NFS 1272 1430 1678 1831 1909 1989 2072

Total Resources 2389 2466 2507 2476 2530 2602 2694

Fixed investment 401 411 431 454 477 518 536

Consumption 1988 2054 2075 2022 2052 2084 2159

(as % of GDP)

GDP at market prices 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Resource 6ap 3.7 5.0 4.6 1.0 0.7 0.5 0.6Imports, 6NFS 58.9 65.8 74.6 75.7 76.6 77.4 78.0Exports, GNFS 55.2 60.9 70.0 74.7 76.0 76.9 77.4

Total Resources 103.7 105.0 104.6 101.0 100.7 100.5 100.6

Fixed investment 17.4 17.5 18.0 18.5 19.0 20.0 20.0

Consumption 86.3 B7.5 B6.6 82.5 81.7 80.5 80.6

Memo items:

Export price index 100.00 103.80 109.89 116.26 127.60 140.17 153.88Import price index 100.00 104.82 112.47 121.52 131.28 141.84 153.24Terms of trade index 100.00 99.03 97.71 95.68 97.20 98.82 100.42

GDP growth . 2.00 2.00 2.30 2.50 3.00 3.50

Sources: Barbados Statistical Service; and mission estimates.

- 123 -

Table 3.1: BARBADOS - BALANCE OF PAYMENTS, 1976 - 84

WUS$ zillion)

Revised Revised Prelis.1976 1977 1978 1979 1990 1981 1982 1993 19B4

Exports of Goods and NFS 212.5 279.0 337.2 57.6 556.2 565.4 610.6 659.3 740.5

Goods B6.7 109.9 126.0 155.9 229.8 193.0 258.2 321.5 392.3Sugar and molasses 28.1 28.2 26.9 32.5 60.7 29.9 34.4 22.4 30.6Other domestic exports 38.6 47.3 66.3 93.8 107.9 118.6 151.9 232.9 258.680P adjusteent a/ 2.9 7.9 1.0 4.0 1.2 -2.5 -0.5 -1.6 -1.6Re-exports 17.1 26.5 31.8 35.6 59.0 47.0 72.4 67.9 104.7

Nonfactor services 125.9 168.1 211.2 301.6 327.4 372.4 352.4 337.8 348.2Travel (gross) 83.4 111.5 139.6 207.9 253.7 264.1 254.9 254.9 275.5Other 42.5 56.6 72.6 93.7 73.7 108.3 97.6 82.9 72.7

leports of Goods and NFS 279.5 324.7 366.7 498.9 619.9 678.5 669.9 714.5 783.3

Boods 236.7 279.1 308.9 425.4 524.6 575.5 553.7 624.5 6B9.1Retained 219.6 251.6 277.0 399.8 465.5 528.5 481.3 556.6 5B3.4For re-exports 17.1 26.5 31.8 35.6 59.0 47.0 72.4 67.9 104.7

Nonfactor services 42.8 46.6 57.9 73.5 95.3 103.0 116.0 90.0 95.2

Resource Balance -67.0 -46.7 -29.4 -41.3 -63.6 -113.1 -59.1 -55.2 -42.8

Net Factor services 2.2 -1.8 1.6 -1.6 2.3 0.0 -2.6 -15.6 -13.4

Interest on MLT public debt -2.0 -2.0 -3.2 -5.0 -6.4 -9.7 -14.3 -21.5 -19.5Other factor services 4.2 0.2 4.8 3.4 8.7 9.7 11.7 5.9 6.1

Current Transfers 12.8 14.3 16.4 19.9 23.9 27.1 20.4 20.9 20.0

Current Account Balance -52.0 -34.3 -11.4 -24.0 -37.4 -96.0 -41.3 -50.0 -36.2

Net Public Capital 5.9 19.6 16.5 9.8 9.3 50.0 30.9 74.1 23.4

Gross disbursements bl 7.8 24.8 19.7 12.9 19.3 65.3 33.9 69.3 29.6Project-related 7.8 24.8 9.5 12.1 17.2 37.9 19.2 56.1 27.6CDF type - - 0.2 0.9 2.1 ... 3.0 - -

Other c/ - - 10.0 - - 27.4 11.7 13.2 1.0Grants - 0.3 0.8 0.6 1.0 1.1 1.4 1.3 1.9Official transfers (netl -0.1 1.6 0.4 3.1 -2.3 -9.0 2.8 14.5 6.0Amortization 1.9 7.1 4.4 6.9 8.7 7.4 7.2 11.0 13.0

SDR Allocations - - - 2.4 2.3 2.3 2.0 - -

Private Capital Inet) dl 28.1 5.6 17.2 21.4 45.7 8.9 2.6 -20.1 13.9

Net Foreign Assets Change 18.0 9.1 -22.3 -9.6 -19.9 24.8 5.7 -4.0 -1.11- = increase)

Memorandus Ites

IMF Dramings (net) - 7.6 - - -5.5 -2.1 25.2 15.5 8.0

a/ Sugar valuation adjustment and other balance of payments adjustments.bl Includes Central Bank medium-tere borrowing.cl 1978 data represents balance of payments support loans obtained from private financial institutions.dl Includes errors and omissions.

Sources: Barbados Statistical Office; Central Bant; Ministry of Finance; and mission estimates.

- 124 _

Table 3. 2: BARBADOS - MERCHANDISE EXPORTS (F.O.B.7 BY MAJOR COMMODITIES, 1976 - 84

(BD$ million)

1976 197'7 1978 1979 1980 1981 1982 1983 1984

A. Total Domestic Exports a! 133.4 151.0 186.6 235.4 i77.2 297.0 372.5 510.4 578.4

Primary Products 63.4 67.4 66.4 78.9 135.4 78.3 84.3 62.2 81.8

Sugar 46.9 50.6 47.0 58.0 109.4 51.5 61.9 37.6 52.2Molasses 9.3 5.8 6.7 5.9 11.9 8.3 6.9 7.1 8.4Other 7. 11.0 127 11.0 14.1 18.5 15.5 17.5 20.6

Manufactured Products 70.0 83.6 1202 156.5 201.8 218.7 288.2 448.2 496.6

Rum 4.4 5.7 6LO 2.6 3.5 4.1 5.5 5.0 6.4Clothing 30.6 37.2 40.6 45.9 49.1 52.2 65.6 70.4 64.4Chemicals 5.? 5.6 9,3 15.2 2.7 24.2 26.3 27.2 25.7Electrical Components 13.8 18.3 37.9 45.1 63.3 77.3 121.7 266.3 373.2Marnarine and Lard 3.1 3.7 5.4 4.3 6.1 4.5 7.8 4.1 4.6Sports Equipment - - 1.9 S.3 10.3 8. 0.3 - 0.2Others 12.2 13.1 19.1 3'5.1 47.8 48.2 65.0 75.2 62.1

B. Re-exports 40.1 57.0 63.6 7:.3 118.1 94.0 144.9 135.8 209.4

Petroleum & Petro Products b/ 21.5 35.9 38.7 26.7 54.1 46.5 94.8 94.4 151.6Other 18.6 17.1 24.9 44.6 64.0 47.5 50.1 41.4 57.8

C. Total Exports 173.5 204.d 250.2 306.7 455.3 391.0 517.4 646.2 787.8

a! Yisible trade.b/ 1977 and 1978 differs from official figures due to) a timing adjustment of BO$11.l nillion of stores and bunkers

re-exported in 1977, but reported in 1978.

Sources: Annual Overseas Trade Reports; Statistical Service.

_ 125 _

Table 3.3: BARBADOS - MERCHANDISE IMPORTS (C.I.F.) BY END USE CATEGORY, 1976 - 84

(BD$ aiXlion)

Prelim.

1976 1977 1978 1979 1980 1981 1982 1983 1984

Consuser Goods 189.5 212.3 243.3 299.9 365.7 388.4 335.5 359.6 427.3

Non-durable 144.3 161.1 188.3 223.3 261.2 283.4 254.2 263.9 312.4Food and beverages 99.2 104.8 124.9 140.3 168.2 182.0 164.7 158.3 166.9Others 45.1 56.3 63.4 83.0 93.0 101.4 89.5 105.6 145.5Durables 23.4 25.5 24.7 36.7 46.8 51.4 32.3 71.7 62.0Motor cars 10.9 10.9 8.6 14.2 20.1 26.0 15.6 31.6 24.4Others 12.5 14.6 16.1 22.5 26.7 25.4 16.7 40.1 37.6Other manufactured consumer goods 21.8 25.7 30.3 39.9 57.7 53.6 49.0 24.0 52.9

Intermediate Goods 171.3 197.8 216.6 310.2 383.2 421.4 387.1 385.3 423.1

Fuels 61.7 72.3 72.9 119.0 162.1 190.2 179.0 153.7 207.5Chemicals 22.1 24.5 29.8 41.6 52.5 53.7 46.8 52.4 47.0Textiles 25.2 26.2 27.3 38.1 40.0 44.3 39.6 46.0 33.8Feeds, fats and crude materials 19.3 22.4 22.4 27.4 - 27.1 30.0 27.5 29.9 37.0Other efd. intermediate goods 43.0 52.4 64.2 84.1 101.5 103.2 94.2 103.3. 97.8

Capital Goods 96.8 116.8 148.5 223.8 283.4 333.7 372.6 491.3 502.7

Machinery 63.0 80.6 106.9 167.2 200.7 245.6 291.2 419.6 436.4Construction materials 33.8 36.2 41.6 56.6 82.7 88.1 B1.4 71.7 66.3

Unclassified Goods 17.0 18.2 20.3 16.9 16.8 7.6 12.3 12.8 23.1

Total Merch. Ieports (c.i.f.) al 474.6 545.1 628.7 850.8 1049.1 1151.1 1107.5 1249.0 1376.2

a/ Visible trade.

Memorandum Item:

Consumer goods: Food = SITC 0,1 (excluding 08)Other = SITC 54, 55,83,84 and 85Motor cars = SITC 781Other durables a SITC 71, 625, 741.5, 761, 762, 775.2, 785.1-3, 82, 86, 898.3, 8(residual) less 821.1-3

Raw eaterials and intermediate goods:Fuels and lubricants = SITC 3Chemicals SITC 5 (residual)Textiles SITC 65Fats and crude saterials SITC 08, 2 (residual) and 4Others = SITC 6 (residual)

Capital goods: Building materials z SITC 24, 634, 635, 641.6, 661.1-2, 67, 691, 694, 821.1-3Machinery and transport = SITC 7 (residual)

Others: SITC 9

Sources: Central Bank; Barbados Statistical Service; and Barbados Overseas Trade Annuals.

_ 126 -

Table 3.4: BARBADOS - DIRECTION OF TRiADE, 1976 - 84

(m0$ million)

1976 1977 1S978 979 19BO 1981 19B2 1983 1984

Imports (c.i.f.) 474.6 545.1 62E.7 850.8 1049.1 1151.1 1107.5 1249.0 1376.2

EEC a/ 123.8 141.8 167.8 2CI2.6 213.2 195.4 158.2 193.0 168.0(United Kingdom) 88.5 103,0 115.6 12:8.3 157.3 140.3 99.5 112.4 100.6US 108.9 133,2 175.4 268.8 356.8 398.4 396.4 578.7 633.1CARICOM 82.2 88,7 92.0 136.8 189.5 183.2 144.1 150.3 154.8Canada 40.7 3B89 46.2 64.3 76.B 98.2 63.7 658.0 75.0Other 119.0 142,5 147.3 178.3 212.8 275.9 345.1 259.0 345.3

Exports (f.o.b.) b/ 173.5 204.0 250.2 306.7 455.3 391.0 517.4 646.2 787.8

EEC a/ 5.9 39.7 48.4 60.1 70.7 42.4 68.7 35.9 63.5(United Kingdom) 5.6 15.7 32.5 38.6 29.9 26.8 47.0 29.3 54.3uS 52.3 61.7 65.6 110.9 165.1 143.0 152.7 241.7 217.9CARICOM 45.8 46.6 64.1 76.2 126.7 121.1 141.3 139.0 176.0Canada 12.2 10.7 12.1 16.0 18.3 18.2 10.7 9.8 12.6Other 57.3 45.3 60.0 43.5 74.5 66.3 144.0 219.8 317.8

a! Belgium-Luxembourg, Denmark, France, 6ermany FR, Ireland, Italy, 1Netherlands, UK and Greece(since 1981).bl Includes re-exports.

Sources: Overseas Trade reports; Barbados Statistical Service.

- 127 -

Table 3.5: BARBADOS - MERCHANDISE EXPORTS (F.O.B.) TD CARICOM AND OTHER COMMONWEALTH CARIBBEAN COUNTRIES, 1976 - 84

(B$ '000)

1976 1977 1978 1979 1980 1981 1982 1983 1984

Guyana a/ 5056 3490 3082 3086 2113 2384 2037 2993 52800

Trinidad and Tobago 17949 21108 31276 37281 52414 59476 86826 84236 74700

Jamaica 7236 4694 7540 5245 13644 21676 18221 19B13 10200

Dominica 1606 1821 2893 4657 6273 3763 3398 3500 3700

Grenada 2318 3039 3992 4861 5452 5156 5316 4997 5800

St. Vincent (incl. 6renadines) 2903 3052 3817 6494 9501 7966 6651 6256 7100

St. Lucia 4593 5191 5929 8223 12313 11558 9916 8870 11100

Montserrat 646 478 710 738 1064 955 894 878 900

Antigua i801 2228 2772 3703 2607 4595 4774 4148 6400

St. Kitts-Nevis 1679 1551 2173 2293 3189 3036 3120 3208 3300

Belize 8 42 38 114 70 78 108 95 20

Other bl 760 752 1696 1829 1955 1428 1829 1000 2080

Total 46555 47446 65918 78524 110595 122071 143090 139994 178100

a/ 1984 figure includes transshipment of fuel.b/ Bahamas, Bermuda and British Virgin Islands.

Sources: Annual Overseas Trade Yearbook; Barbados Statistical Service.

- 128 -

Table 3.6: BARBADOS - MERCHANDISE IMPORTS (C.I.F.) TO CARICOM AND OTHER COMMONWEALTH CARIBBEAN COUNTRIES, 1976 - 84

(BD$ '0001

1976 1977 1f178 1979 1980 1981 1982 1983 1984

Guyana 9709 10430 9255 ;3602 8801 8496 5734 4639 6400

Trinidad and Tobago 53065 54379 56633 89845 146516 132695 105340 111835 113200

Jamaica 13771 15890 14994 25415 21185 28173 23023 22447 23700

Dominica 1062 1319 1714 969 1443 1218 790 1367 1500

Grenada 66 66 288 591 627 1073 832 496 600

St. Vincent (incl. Grenadines) 748 937 2362 3216 2610 3486 3144 2290 2100

St. Lucia 2880 4456 4947 3656 3B98 5120 4247 4445 4500

Montserrat 12 :14 29 20 86 391 177 223 60

Antigua 515 517 1199 1641 2207 1680 1178 '2241 2100

St. Kitts-Nevis 220 259 241 679 606 422 117 126 500

Belize 106 480 332 2123 1594 455 495 241 100

Other a/ 48 63 45 34 103 53 141 190 100

Total 82202 BB810 92039 136791 189676 183262 145218 150540 154860

a/ Bahamas, Bermuda and British Virgin Islands.

Sources: Annual Overseas Trade Yearbook; Barbados Statistica], Service.

- 129 -

Table 3.7: BARBADOS - OFFICIAL INTERNATIONAL RESERVES, 1976 - 84

(U5$ million)

December 31

1976 1977 1978 1979 1980 1981 1982 1983 1984

Net Official International Reserves 28.3 19.2 41.5 51.2 71.1 47.0 40.7 44.7 45.8

Central Bank (net) 20.1 11.5 31.4 39.2 56.0 30.5 22.5 25.0 23.2

Assets 20.1 29.4 49.9 55.8 64.8 87.4 107.6 107.0 104.1

Liabilities - 17.9 18.5 16.6 8.9 56.9 85.1 82.0 81.0

(o.w. medium-term liabilities) (-) (10.0) (10.0) (8.0) (6.0) (7.3) (9.2) (9.3) (9.2)IMF (CFF) - 7.1 8.5 8.6 2.9 0.9 14.0 12.4 11.6Standby - - - - - - 10.6 25.4 31.5Trinidad and Tobago a/ - 10.0 10.0 8.0 6.0 7.3 9.2 9.3 9.2Venezuela Investment Fund - - - - - 3.5 7.3 9.9 7.7IDB - 1.0 1.0 2.0 2.0Commercial Banks - - - - - 44.2 40.0 20.0 19.0CMCF - - 3.0 3.0 -

Savernment Assets 8.2 7.7 10.1 12.0 15.2 16.5 18.2 19.7 22.6

Sinking Fund 5.3 6.9 9.1 11.2 13.8 14.8 16.8 18.0 20.4Other 2.9 0.18 1.0 O.B 1.4 1.7 1.4 1.7 2.2

Memorandum Item:

Gross Official Reserves 28.3 37.1 60.0 67.8 80.0 103.4 125.7 126.7 126.7

a/ Includes Trinidad and Tobago deposits and oil facility.

Sources: Central Bank of Barbados and IMF.

- 130

Table 3.8: BARBADOS - ACTUAL AND PRPIJECTED EBALANCE OF PAYMENTS, 1984-90

(USS million)

Est. P R O J E C T E D

1984 198' 19E6 1987 1988 1989 1990

Domestic Exports, 6NFS 635.80 742.44. 922.18 1064.09 1217.84 1394.31 1594.51

Goods 287.60 353.3E 453.25 511.15 576.81 651.73 737.51NFS 348.20 389.09 468.94 552.94 641.03 742.57 857.00(of which: travel) 275.50 300.71 355.62 425.15 496.83 579.64 672.62

Retained Imports, 6NFS 678.60 810.69 1005.80 1127.06 1264.12 1420.74 1599.92

Goods 583.40 698.28 868.37 973.29 1091.91 1227.51 1382.70NFS 95.20 112.40 137.44 153.78 172.21 193.23 217.21

Resource Gap -42.80 -68.25 -83.62 -62.98 -46.28 -26.43 -5.41

Net Factor Services -13.40 -14.81 -18.45 -26.70 -32.99 -38.48 -42.87Interest -19.50 -20.81 -24.45 -32.70 -38.99 -44.48 -48.87

Other 6.10 6.00 6.00 6.00 6.00 6.00 6.00

Current Transfers (net) 20.00 22.60 25.31 27.84 30.07 32.48 34.10

Current Account Balance -36.20 -60.46 -76.73 -61.83 -49.20 -32.44 -14.18

Direct Foreign Investment 10.00 15.00 15.01) 15.00 15.00 15.00 15.00

Net Public Capital 15.60 61.26 94.35 70.53 58.80 46.24 29.38Projected-related 28.60 42.05 58.0i3 51.05 56.51 58.27 60.23(of which uncomsitted) 0.70 16.01 27.02 43.66 55.74 58.99Other 43.52 67.05 67.67 49.00 31.72 24.81Amiortization 13.00 24.31 30.78 48.19 46.71 43.75 55.67

Errors & omissions 9.50 - - - - - -

Change in Reserves 1.10 -15.80 -32.6( -23.70 -24.60 -28.80 -30.201- - increase)

Memo itess:

Debt service ratio (X) 5.77 6.90 6.83 8.64 7.98 7.17 7.41(is percent of Exports) a/

Reserve level as number ofmonths of imports 2.24 2.11 2.05 2.12 2.12 2.13 2.12

a/ Goods plus tourism only.

Sources: Central Bank of Barbados; and mission estimates.

Table 4.1: BARBADOS Page 1 of 6

SERVICE PAYMENTS, COMMITMENTS, DISBURSEMENTS AND OUTSTANDING AMOUNTS OF EXTERNAL PUBLIC DEBT

PROJECTIONS BASED ON DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF DEC. 31, 1983DEBT REPAYABLE IN FOREIGN CURRENCY AND GOODS

(IN THOUSANDS OF U.S. DOLLARS)TOTAL

YEAR DEBT OUTSTANDING AT T R A N S A C T I O N S D U R I N G P E R I O D OTHER CHANGES: BEGINNING OF PERIOD

DISBURSED : INCLUDING COMMIT- DISBURSE- S E R V I C E P A Y M E N T S CANCEL- ADJUST-: ONLY :UNDISBURSED: MENTS MENTS :----------:-----------:----------- LATIONS MENT *

PRINCIPAL INTEREST TOTAL: (1) (2) (3) (4) (5) (6) (7) (8) (9)

1979 64,236 104,453 25,765 10,974 6,850 5,260 12,110 65 2.3481980 70,536 125,651 45,231 21,771 8,668 5,808 14,476 17 -2,2851981 81,327 159,912 163.654 87.094 7.387 7.420 14,807 229 -4,7431982 159,065 311,207 16,048 56,980 7,173 14,333 21,506 651 -5,0501983 206,121 314,381 52,643 69,259 10,994 15,643 26,637 287 -3,7611984 262,425 351.982

* * * * * * THE FOLLOWING FIGURES ARE PROJECTED * * * * * *

1984 262,425 351,982 - 27,762 18,626 20,251 38,877 - -5,0301985 266,530 328,326 - 22,397 24,307 20,721 45,028 - 31986 264,624 304.022 - 17,250 30,780 20,073 50,853 - -31987 251,093 273,239 - 10,444 43.578 18,413 61.991 - 21988 217,961 229,663 - 6,159 33,964 14,994 48,958 - 41989 190.161 195,703 - 2,325 29,343 12,433 41,776 - -11990 163,142 166,359 - 1,244 22,087 10.105 32,192 - -21991 142,297 144,270 - 1,298 17.926 8,413 26,339 - 21992 125,671 126,346 - 675 14,511 7,316 21,827 - -41993 111,831 111,831 - - 14,866 6,340 21,206 - 31994 96,968 96,968 - - 15,436 5,310 20,746 - -41995 81,528 81,528 - - 15,245 4.217 19,462 - -11996 66,282 66,282 - - 11,247 3,162 14,409 - -31997 55,032 55,032 - - 7,452 2,547 9,999 - 31998 47,583 47,583 - - 6,935 2,117 9,052 - 11999 40.649 40,649 - - 5,233 1,742 6,975 - -42000 35.412 35.412 - - 4.713 1,494 6,207 - 12001 30,700 30,700 - - 3.981 1,280 5,261 - -22002 26.717 26,717 - - 2,803 1,107 3,910 - 12003 23,915 23,915 - - 2,615 995 3,610 - -4

* THIS COLUMN SHOWS THE AMOUNT OF ARITHMETIC IMBALANCE IN THE AMOUNT OUTSTANDING INCLUDING UNDISBURSED FROM ONEYEAR TO THE NEXT. THE MOST COMMON CAUSES OF IMBALANCES ARE CHANGES IN EXCHANGE RATES AND TRANSFER OF DEBTSFROM ONE CATEGORY TO ANOTHER IN THE TABLE.


EXTERNAL PUBLIC DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF DEC. 31, 1983DEBT REPAYABLE IN FOREIGN CURRENCY AND GOODS

(IN THOUSANDS OF U.S. DOLLARS)

D E B T O U T S T A N D I N G : I N A R R E A R STYPE OF CREDITOR ----------------------------------- :-----------------------

CREDITOR COUNTRY DISBURSED :UNDISBURSED: TOTAL : PRINCIPAL : INTEREST

SUPPLIERS CREDITSCANADA 25' - 251 - -UNITED KINGDOM 289 - 289 - -

TOTAL SUPPLIERS CREDITS 540 - 540 - -

FINANCIAL INSTITUTIONSAUSTRIA 26,850 i3,774 40.624 - -BAHAMAS 629 - 629 - -CANADA 13,450 - 13,450 - -UNITED KINGDOM 57,416 22,549 79,965 - -UNITED STATES 12,860 - 12,860 - -

TOTAL FINANCIAL INSTITUTIONS 111,205 36.323 147,528 - -

MULTILATERAL LOANSCARIBBEAN DEV. BANK 20,209 468 20,677 - -EUROPEAN DEV.FUND 912 761 1,673 - -EUROPEAN INVEST BANK 4.021 8,147 12.168 - -IBRD 17,936 28,703 46,639 - -IDB 42,066 10,367 52,433 - -OPEC SPECIAL FUND 4,800 - 4,800 - -

TnTAL Mtll TTI ATFPAI i nANS 89,944 48,446 138,390 - -

BILATERAL LOANSCANADA 20.662 3,118 23,780 34 -TRINIDAD & TOBAGO 9,223 - 9,223 - 112UNITED KINGDOM 3,586 81 3,667 - -UNITED STATES 17,000 - 17,000 - -VENEZUELA 10,265 1,590 11,855 - -

TOTAL BILATERAL LOANS 60,736 4,789 65,525 34 112

TOTAL EXTERNAL PUBLIC DEBT 262,425 89,558 351,983 34 112

NOTES: (1) ONLY DEBTS WITH AN ORIGINAL OR EXTENDED MATURITY OF OVER ONE YEAR ARE INCLUDED IN THIS TABLE.(2) DEBT OUTSTANDING INCLUDES PRINCIPAL IN ARREARS BUT EXCLUDES INTEREST IN ARREARS.

Table 4.1 :BARBADOS Table 3 of 6



(IN THOUSANDS OF U.S. DOLLARS)TYPE OF CREDITOR SUPPLIERS CREDITS

TOTALYEAR DEBT OUTSTANDING AT : T R A N S A C T I O N S D U R I N G P E R I O D OTHER CHANGES

BEGINNING OF PERIOD:

: DISBURSED : INCLUDING : COMMIT- DISBURSE- S E R V I C E P A Y M E N T S CANCEL- ADJUST-: ONLY :UNDISBURSED: MENTS MENTS -----------:-----------:----------- LATIONS : MENT *

PRINCIPAL INTEREST TOTAL: (1) (2) (3) (4) : (5) (6) (7) : (8) (9)

1979 593 593 - - 298 23 321 - 411980 336 336 - - 284 24 308 - 181981 70 70 - - 59 - 59 - -111982 - - 763 376 - 21 21 - -301983 376 733 - 335 158 44 202 - -351984 540 540

* * * THE FOLLOWING FIGURES ARE PROJECTED v * * * *

1984 540 540 - - 190 60 250 - 11985 351 351 - - 190 37 227 - -

1986 161 161 - - 64 15 79 - -1

1987 96 96 - - 64 8 72 - -

1988 32 32 - - 32 2 34 - -



SERVICE PAYMENTS, COMMITMENTS. DISBURSEMENTS AND OUTSTANDING AMOUNTS OF EXTERNAL PUBLIC DEBT


(IN THOUSANDS OF U.S. DOLLARS)TYPE OF CREDITOR FINANCIAL INSTITUTIONS

TOTALYEAR DEBT OUTSTANDING AT T R A N S A C T I O N S D U R I N G P E R I O D OTHER CHANGES

BEGINNING OF PERIOD…__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

DISBURSED : INCLUDING COMMIT- DISBURSE- S E R V I C E P A Y M E N T S CANCEL- ADJUST-ONLY :UNDISBURSED: MENTS MENTS :---------------------- ----------- LATIONS MENT *

PRINCIPAL INTEREST TOTAL(1) (2) (3) (4) (5) (6) (7) (8) (9)

1979 25,025 25,036 600 11 4,262 2,980 7,242 - 1,6991980 22,473 23,073 11.917 5,050 5,434 3,162 8,596 - -1,4431981 20,503 28,113 119.641 50,685 5.207 3,804 9,011 - -2,8451982 64,883 139.702 - 28,658 4,132 8,184 12,316 - -3,1021983 88.331 132,468 22,143 29,031 5,345 8,293 13,638 - -1,7381984 111,205 147,528

t * * * * * THE FOLLOWING FIGURE ARE PRUECIEU*

1984 111,205 147,528 - 12,788 10,312 11,547 21,859 - -1985 113,682 137,216 - 9,944 14,609 11,684 26,293 - -i986 iG9,Oi7 i22,607 -7,579 i9,.505 iO,833 .30,338 -- 1987 97.090 103,101 - 3,717 31,286 9,265 40,551 - -11988 69,521 71,814 - 2,093 20,959 6,235 27,194 - 11989 50,656 50,856 - 200 18,045 4,252 22,297 - -11990 32,810 32,810 - - 10,628 2,572 13,200 - -11991 22,181 22,181 - - 6,947 1,556 8,503 - -1992 15,234 15,234 - - 3,385 1,097 4,482 - -1993 11,849 11,849 - - 3,385 839 4,224 - -11994 8,463 8,463 - - 3,385 581 3,966 - -1995 5,078 5,078 - - 3,385 323 3.708 - -1996 1,693 1,693 - - 1.693 65 1,758 - -


Table 4.1: BARBADOS Page 5 of 6SERVICE PAYMENTS, COMMITMENTS, DISBURSEMENTS AND OUTSTANDING AMOUNTS OF EXTERNAL PUBLIC DEBT


(IN THOUSANDS OF U.S. DOLLARS)TYPE OF CREDITOR MULTILATERAL LOANS


: BEGINNING OF PERIOD

: DISBURSED : INCLUDING COMMIT- DISBURSE- S E R V I C E P A Y M E N T S CANCEL- ADJUST-: ONLY :UNDISBURSED: MENTS MENTS- --------- :-----------:----------- LATIONS MENT *

PRINCIPAL INTEREST TOTAL: (1) (2) * (3) (4) (5) (6) (7) (8) (9)

1979 15,835 51,244 19,110 6,666 87 1,206 1,293 54 2021980 22.610 70,415 31,615 12,369 565 1,560 2,125 - -6481981 33,939 100,817 21,718 22,677 562 2,001 2,563 229 -1,1361982 55,646 120,608 11,626 21,287 1,530 3,375 4,905 651 -6541983 75,152 129,399 13,500 18,179 2,895 3,926 6,821 287 -1,3271984 89,944 138,390

* * * * + THE FOLLOWING FIGURES ARE PROJECTED T

1984 89,944 138,390 - 12,457 4,405 5,271 9,676 - 11985 97,996 133,986 - 11,182 5,723 5,720 11,443 - 41986 103,458 128,267 - 9,007 7,162 6,093 13,255 - -11987 105,305 121,104 - 6,478 8,179 6,204 14,383 - 21988 103,604 112,927 - 3,991 8,810 6,030 14,840 - 3 U,1989 98,789 104,120 - 2,114 8,917 5,656 14,573 - 21990 91,988 95,205 - 1,244 9,001 5,170 14,171 - -31991 84,228 86,201 - 1,298 8,958 4,652 13,610 - 41992 76,572 77,247 - 675 9,105 4,144 13,249 - -21993 68,140 68,140 - - 9,127 3,560 12,687 - 31994 59,016 59,016 - - 9,697 2.934 12,631 - -31995 49,316 49,316 - - 9,506 2,246 11,752 - 21996 39,812 39,812 - - 7,200 1,595 8,795 - -31997 32,609 32,609 - - 5,589 1,182 6,771 - 51998 27,025 27,025 - - 5,137 856 5,993 - 21999 21,890 21,890 - - 3,435 585 4,020 - -32000 18,452 18,452 - - 2,961 438 3,399 - 12001 15,492 15.492 - - 2,338 324 2,662 - -12002 13,153 13,153 - - 1,225 245 1,470 -12003 11,929 11,929 - - 1.211 222 1,433 - -2





(IN THOUSANDS OF U.S. DOLLARS)TYPE OF CREDITOR BILATERAL LOANS


B BEGINNING OF PERIOD

: DISBURSED : INCLUDING : COMMIT- DISBURSE- S E R V I C E P A Y M E N T S CANCEL- ADJUST-: ONLY :UNDISBURSED: MENTS MENTS ----------- :-----------:---- LATIONS MENT *

PRINCIPAL INTEREST TOTAL: (1) (2) (3) (4) (5) : (6) (7) (8) (9)

1979 22,783 27,580 6,055 4,297 2,203 1,051 3,254 11 4061980 25,117 31,827 1,699 4,352 2,385 1,062 3,447 17 -2121981 26,815 30,912 22,295 13,732 1.559 1,615 3,174 - -7511982 38,536 50,897 3,659 6,659 1,511 2.753 4,264 - -1,2641983 42,262 51,781 17.000 21,714 2,596 3,380 5,976 - -6611984 60,736 65,524

6 . + - w -T THE FuLLOWING FIGURES ARE PROjECTED * * * * *

1984 60,736 65,524 - 2.517 3,719 3,373 7,092 - -5,0321985 54.501 56,773 - 1,271 3,785 3,280 7,065 - -14128 51,S88 52,987 - 664 4,049 3,i32 7,i8i - -1987 48.602 48,938 - 249 4,049 2,936 6,985 - I1988 44,804 44,890 - 75 4,163 2,727 6,890 - - 01989 40,716 40,727 - 11 2,381 2,525 4,906 - -21990 38,344 38,344 - - 2,458 2,363 4,821 - 21991 35,888 35,888 - - 2,021 2,205 4,226 - -21992 33,865 33,865 - - 2,021 2,075 4,096 - -21993 31,842 31,842 - - 2,354 1,941 4,295 - 11994 29,489 29,489 - - 2,354 1,795 4,149 - -11995 27,134 27,134 - - 2,354 1,648 4,002 - -31996 24,777 24.777 - - 2,354 1,502 3,856 - -1997 22,423 22,423 - - 1,863 1,365 3,228 - -21998 20,558 20,558 - - 1,798 1,261 3,059 - -11999 18,759 18.759 - - 1,798 1,157 2,955 - -12000 16,960 16,960 - - 1,752 1,056 2,808 - -2001 15,208 15,208 - - 1,643 956 2.599 - -12002 13,564 13,564 - - 1,578 862 2,440 - -2003 11,986 11,986 - - 1,404 773 2,177 - -2


- 137 -

Table 5.1: BARBADOS - CENTRAL GOVERNMENT FINANCES, 1977/78 - 1984/85

(B[S eillion)

Prel.1977/78 1978179 1979/80 1980181 19B1182 1982/83 1983/84 1984185

Current Revenues 237.1 296.8 342.4 425.6 453.1 492.1 537.1 568.9

Current Expenditures 232.2 256.0 304.2 387.1 433.7 476.9 488.6 538.1

Current Surplus/Deficit (-) 4.9 40.8 38.2 38.5 19.4 15.2 48.5 30.8

Capital Revenue 1.9 - - - - - - -

Capital Expenditure & Net Lending 85.9 72.2 85.8 141.8 173.3 141.2 129.3 121.6

Overall Surplus/Deficit (-1 -79.1 -31.4 -47.6 -103.3 -153.9 -126.0 -80.8 -90.8

Financing 79.1 31.4 47.6 103.3 153.9 126.0 80.8 90.8

Gross external borrowing 34.3 36.4 21.1 89.6 104.3 71.2 48.7 44.9Trinidad & Tobago - - - 51.1 - - - -CIDA b.9 8.4 2.9 0.3 1.5 0.2 0.4 5.0USAID a/ - - - b/ 10.6 8.4 18.0 19.3UK - - 1.9 1.3 - 0.3 - -IBRD - - - 2.1 3.6 17.5 12.6 7.5CDB 2.1 1.4 - 3.6 7.4 2.6 2.3 6.3 2.0IDB 13.3 6.6 11.2 11.2 14.6 7.2 8.0 7.5Commercial banks 12.0 20.0 - 11.7 68.9 32.6 1.2 3.6OPEC - - 1.5 4.5 1.5 2.0 2.0 -EDF - - - - 1.0 0.7 0.2 -Others - - - - - - - -

Grants 0.8 1.8 0.8 2.2 0.9 1.8 2.9 3.5Amortization 6.9 7.9 9.0 10.9 13.9 14.6 26.9 24.6Net external borrowing 28.2 30.3 12.9 80.9 91.3 58.4 24.7 23.8

Net banking system 28.5 18.4 31.5 23.6 45.7 12.5 6.0 29.0Central Bank 7.3 14.6 24.3 19.2 27.6 7.1 -10.2 12.1Coomercial banks 21.2 3.8 7.2 4.4 18.1 5.4 16.2 16.9Others 22.4 -17.3 3.2 -1.2 16.9 55.1 50.1 38.0Trust cospanies 0.2 -0.3 0.2 0.2 - - -1.0 1.1Special funds -0.7 -0.4 0.4 -0.2 0.1 -0.3 -0.1 -0.1National Insurance Fund 9.9 3,2 2.3 0.6 24.1 41.7 37.6 40.0Insurance companies 3.8 0.9 0.7 2.4 - - - -Other (residual) 9.2 -20.7 -0.4 -4.2 -7.3 13.7 13.6 0,5Net dDoestic financing 50.9 1.1 34.7 22.4 62.6 67.6 56.1 67.0

a/ Represents CDF and Basic Human Needs financing channeled thru CDB, except for BD$7 million in 1983/84.b/ Included in CDB.... Figures not available.

Sources: Ninistry of Finance and Planning; Accountant Seneral's Office; and mission estimates.

138

Table 5.2: BARBADOS - CENTRAL GOVERNMENT REVENUES 1977/78 - 1985/86

I(BB millionl

Prel. Budget1977/78 1978/79 1979/80 1780/81 19EI/82 1982/83 1983/84 1984/85 1985/B6

Taxes on Net Income and Profits 105.6 132.4 138.4 159.8 175.2 190.8 191.6 202.0 215.0Companies 34.6 44.2 47.4 64.7 66.9 68.4 61.2 60.0 65.0Individuals 66.0 82.2 85.6 89.0 99.6 113.2 120.0 130.0 136.0Others 5.0 6.0 5.4 6.1 B.7 9.2 10.4 12.0 14.0

Employeent Levy - 6.1 4.1 4.2 -3.8 -0.5 - - -

Health Levy - - - - - 9.3 13.3 - -Transport Levy - - - - 2.4 10.0 9.6 16.3 ...Training Levy - - - - 0.3 0.8 0.9 2.2 ...Taxes on Property 11.5 13.0 17.8 21.6 27.5 26.4 28.1 29.3 32.0

Land tax 7.2 8.0 11.7 11.5 15.8 19.8 21.9 24.0 26.0Estate & Succession Duties 2.2 2.1 2.0 2.6 3.0 0.7 0.5 0.3 -

Property Transfers Tax & Others 2.1 2.9 4.1 7.5 3.7 5.9 5.7 5.0 6.0

Tax on Domestic Goods & Services 54.2 66.3 79.8 108.2 121.0 127.9 152.2 156.1 163.2Bank Assets Tax - - - - - 1.9 2.0 2.2 2.3Consumption Tax 17.2 19.2 23.6 51.4 56.4 80.3 95.0 97.0 97.0Excise Duties 4.7 5.2 5.5 4.9 5.3 4.3 4.6 5.0 5.2Taxes on Motor spirits,Diesel Oil& Aviation Fuel 12.7 15.2 17.8 19.2 23.2 3.1 1.2 1.2 1.2

Motor Vehicle Duty 2.5 3.4 4.7 0.4 - - - - -Hotel & Restaurant Tax 7.2 10.3 13.4 14.7 14.6 12.4 14.3 15.4 17.0Motor Vehicle Licenses 2.9 4.2 4.2 4.7 'i.5 6.7 8.3 11.5 12.0Business & Professional Licenses 1.5 2.2 1.7 2.0 1.7 3.6 3.6 4.1 4.1Tax on Insurance Premiums ... ... 0.9 1.2 1.4 2.1 2.3 2.6 2.7Airport Service Charge - - - - 3.0 2.7 3.9 4.5 4.6Other 5.5 6.6 B.0 9.7 S.9 10.8 17.0 12.6 17.1

Taxes on International Trade 48.1 54.9 74.4 139.8 89.6 74.7 89.7. 84.0 86.0Import Duties 48.1 54.9 74.4 09.8 89.6 74.7 89.7 84.0 86.0

Other Taxes (Stasp duties) 2.2 3.0 3.9 5.0 5.4 17.5 25.8 39.0 60.0

Total Tax Revenue 221.6 275.7 318.4 31RB.6 417.6 456.9 511.2 528.9 556.2

Property Income 4.5 6.B 9.1 13.8 13.4 15.8 8.0 12.9 12.5Rents, Royalties, Dividends 2.2 3.8 3.8 4.6 4.7 4.2 5.5 9.0 8.5Interest 1.4 1.2 1.8 2.7 2.2 3.2 2.0 2.0 2.0Central Bank & Exchange Profits 0.9 1.8 3.5 6.5 6,5 B.4 1.4 1.9 2.0

Administrative Fees, Fines & Others 11.0 14.3 14.9 23.2 221 19.4 17.9 27.1 61.3

Total Non-tax Revenue 15.5 21.1 24.0 37.0 35.5 35.2 25.9 40.0 73.8

Total Current Revenue 237.1 296.8 342.4 425.6 453.1 492.1 537.1 568.9 630.0

Note: Current revenue totals are arrived at by the folloxing method:Example: 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86

Current revenue (actual or Budget) 452.9 469.4 496.9 541.2 569.3 630.0 1982/83 includes BS20 mln. wage adij.ADD: Training Levy - 0.3 0.8 0.9 2.2

Transport Levy - 2.4 10.0 9.6 16.3

DEDUCT: Civil Aviation 9.7 9.3 9.9 10.9 10.4 Excl. expenditure of Central Admin.Natereorks Department 9.3 0.1 - - -

Printing Department 0.3 0.3 0.3 0.4 0.3Loans and Advances 2.4 1.7 1.6 1 .9 5.7Reimbursement of Central The gov't estimates include theGovernment's Employees to employee's contrib. as an expenditure.Nat'l Insurance contrib. 4.2 6.0 1.8 - -

Reimbursement of salaries The gov't estimates include this as anof the employees of the expenditure. The NIF reimburses theNat'l Insurance Fund 1.4 1.6 2.0 1.5 2.5 CS at the end of the calendar year.

Adjusted Current Revenue 425.6 453.1 .492.1 531.1 568.7 630.0

Sources: Ministry of Fianace and Planning, Accountant General and mission estimates.

- 139 -

Table 5.3: BARBADOS - CENTRAL 6OVERNNENT EXPENDITURES BY ECONOMIC CLASSIFICATIONS, 1977179 - 1985/86

(BDS million)

Prel.1977/78 1978/79 1979/80 1980/81 1981182 1982/83 1983/84 1984/85

Goods and Services 135.0 14B.1 169.2 217.1 233.2 262.7 267.5 297.7

Wages and salaries 101.1 112.3 126.7 171.7 170.7 195.7 207.2 230.6Other 33.9 35.8 42.5 45.4 62.5 67.0 60.3 67.1

Interest 18.4 22.8 28.4 29.9 52.4 71.1 62.5 65.7

Domestic 15.4 17.2 18.5 20.2 37.4 50.6 47.1 40.1External 3.0 5.6 9.9 9.7 15.0 20.5 15.4 25.6

Operating Deficit of Departmental

Enterprises (Printing Department) 0.8 0.8 1.0 1.1 1.4 1.4 1.3 1.2

Other DDmestic Transfers 75.7 82.3 102.7 136.6 143.8 138.2 154.0 169.1

National Insurance contributions 1.9 3.4 3.3 7.6 2.4 9.5 12.2 13.1Non-financial public enterprises 10.6 11.5 16.2 27.7 28.5 21.5 18.0 15.8Pensions 12.9 14.7 16.7 19.7 22.3 26.3 29.9 35.2Non-profit institutions 1.2 1.3 1.6 3.9 1.5 1.8 2.1 3.BOther transfers 19.1 19.9 23.5 26.7 28.1 13.0 7.5 10.3Other public institutions 30.0 31.5 41.4 51.0 61.0 66.1 84.3 90.9

Regional & International Agencies 2.3 2.0 2.9 2.4 2.9 3.5 3.3 4.4

TOTAL CURRENT EXPENDITURES 232.2 256.0 304.2 387.1 433.7 476.9 488.6 538.1

Note: Current expenditure totals are arrived at by the following method:Example: 1990/81 1981/82 1982/83 1983/84 19B4/85

Current expenditure 426.3 473.4 536.2 518.8 563.0ADD: Training Levy - 0.3 0.8 0.9 0.8

Printing Department deficit 1.1 1.4 1.4 1.3 1.2Naterworks Dept. deficit 7.3 - - - -

Transport Fund 7.3 - 4.5 10.6 11.9

DEDUCT: Printing Department 1.4 1.7 1.7 1.7 1.5Civil Aviation 7.2 8.0 7.9 7.9 8.6Waterworks Department 16.6 - - - -

Loans and advances 1.9 1.9 26.9 1.7 2.0Amortization & sinking fund 22.2 21.5 24.7 30.0 24.0Employee's Nat'l Insurancecontribution 4.2 6.0 1.8 - -

NIF employees' salaries 1.4 1.7 2.1 1.5 2.5Health Levy - employees'contribution - 0.3 0.5 - -

Transport Levy - employees'contribution - 0.4 0.4 0.2 0.2

Adjusted Current Expenditure 387.1 433.7 476.9 498.6 538.1

Sources: Ministry of Finance and Planning; Accountant Beneral and mission estimates.

:L40 -

Table 5.4: BARBADOS - CENTRAL GOVERNMENT CAPITAL EXPENDITURES BY ECONOMIC CLASSIFICATIONS, 1977/78 - 19851B6

(BD$ million)

Prel.1977178 1978/79 1979180 1980/81 1981/82 1982/83 1983/84 1984/85

Economic Classification

Acouisition of Assets 2.8 2.7 - 2.0 4.3 4.7 7.0 7.0

Capital Formation 37.8 27.4 50.1 90.7 113.9 68.7 58.0 45.4

Transfers 29.6 34.5 35.3 44.0 40.3 27.8 34.9 39.2

Non-financial Public Enterprises 26.3 30.4 31.0 33.4 31.2 25.3 27.6 36.6

Public Financial Institutions 2.5 2.2 1.6 1.0 1.5 0.5 0.5 1.0

Abroad - 1.3 1.2 7.1 5.7 1.7 6.0 1.1

Other Public Institutions 0.8 0.6 1.5 2.5 1.9 0.3 0.8 0.5

Net Lending 15.7 7.6 0.4 5.1 14.8 40.0 29.4 30.0

Equi.ty Contributions 12.6 5.2 0.2 4.5 14.7 14.8 25.7 14.5

Loans and advances 3.1 2.4 0.2 0.6 0.1 25.2 3.7 15.5

Total Capital Expenditure & Net

Lending a/ b/ 85.9 72.2 85.8 141.8 173.3 141.2 129.3 121.6

a/ Includes loan to BNOC.b/ 1982/83-83184 includes expenditures of the Transport Levy Fund.

Sources: Ministry of Finance and Planning; Accountant General and mission estimates.

-141-

Table 5.5 IRBAUNIS - CENTRAL S6WERENINT TRANSFERS, 1977/7E - 19B4/95

1098 millionl

Prel.197717E 1978/79 1979/80 19B0181 1981/82 1982/13 1993/94 1994185

Current Tr;nsfers 78.9 B5.1 106.6 140.1 14B.1 143.1 158.6 174.7

Man-financial Public Enterprises 10.6 11.5 16.2 27.7 29.5 21.5 18.0 15.B__ __ -- -- - -_ -_ --- _ _ -- - -- -- -- ----- -_ __ ___--__ . _-

National Housing Corporation 1.7, 2.6 3.3 3.9 4.9 2.9 2.8 2.6Nateruorks OLepartuent 2.7 2.7 3.2 7.3 5.4 1.3 - -Post Office - - - 1.2 - 0.3 - -B'dos Industrial Dev. Corp. 1.2 1.2 1.7 2.9 3.0 2.5 2.2 2.4Transport Board 4.6 4.5 7.6 11.9 15.0 14.5 13.0 10.9B'dos Marketing Corporation 0.4 0.5 0.4 0.5 0.2 - - -

Operating deficit of Departmental

Enterprise IPrinting Office) 0.a 0.8 1.0 1.1 1.4 1.4 1.3 1.2

Other Public Institutions 30.0 31.5 41.4 51.0 61.0 66.1 B4.3 90.9

Barbados Defense Force 0.9 1.3 2.1 5.1 7.5 9.7 11.9 14.0Schools, colleges 6 universities 14.9 15.1 21.4 22.0 25.7 25.3 3B.2 30.3Tourise promotion 3.9 4.2 5.3 6.3 7.5 10.2 11.5 13.0Sanitation services 5.0 5.2 6.2 B.1 9.2 9.9 11.2 10.1Parks and beaches 1.9 2.3 2.3 3.3 4.1 3.4 3.0 6.0Export promotion 0.2 0.2 0.3 0.4 0.9 0.7 0.0 1.5Caves Authority - - - - 0.2 - - -Welfare agencies 2.1 2.7 3.0 4.3 5.4 6.6 6.9 7.2Other 1.2 0.5 0.9 1.5 0.6 1.3 O.B 0.9

National Insurance Board 1.9 3.4 3.3 7.6 2.4 9.5 12.2 13.1

Non-profit Institutions 1.2 1.3 1.6 3.9 1.5 1.8 2.1 3.0

Pensions 12.9 1417 16.7 19.7 22.3 26.3 29.9 35.2

Other Transfers to Individuils 19.1 19.9 23.5 26.7 28.1 13.0 7.5 10.3

Welfare grants 17.1 16.4 19.4 21.5 22.4 9.6 4.1 4.6Scholarships and bursaries 0.5 1.B 2.2 3.0 3.2 2.8 3.3 3.6School bus fares 1.4 1.6 1.9 1.9 2.4 0.5 - 2.0Other 0.1 0.1 0.1 0.3 0.1 0.1 0.1 0.1

Contribution to Regional and

International Organizations 2.3 2.0 2.9 2.4 2.9 3,5 3.3 4.4

Capital Transfers 29.1, 34.5 35.3 44.0 40.3 27.0 34.9 39.2

Non-financial Public Enterprises 26.3 30.4 31.0 33.4 31.2 25.3 27.6 36.6

National Housing Corporation 3.7 4.3 6.6 B.3 6.0 6.0 3.6 0.6B'dos Agric. Dev. Corp. a/ 0.' 3.B 0.2 0.B 5.1 3.1 4.2 6.2Civil Aviation 9.J 11.5 10.1 3.6 2.4 0.2 0.0 0.6Waterworks Departeent 3.2 3.1 4.0 4.9 3.7 3.0 2.1 1.4Post Office - - 2.0 4.4 4.0 1.5 3.7 4.7B'dos Industrial Dev. Corp. 3.6 4.1 5.7 6.7 5.9 5.5 7.3 .6Transport Board b/ 4.5 1.2 2.0 2.5 4.1 6.0 6.7 6.5B'dos Narketing Corporation 1.5 2.4 0.4 2.2 0.1 - - -

Other Institutions 0.10 0.6 1.5 2.5 1.9 0.3 0.9 0.5

Caves Authority 0.3 0.2 0.6 1.5 0.9 - - -Parks and beaches 0.3 0.4 0.9 1.0 1.1 0.3 0.8 0.5

Public Financial Institutions c/ 2.5 2.2 1.6 1.0 1.5 0.5 0.5 1.0

Transfers Abroad - 1,3 1.2 7.1 5.7 1.7 6.0 1.1

a/ 1980/81-82/83 includes expenditure on the Integrated Rural Development and Spring Hall Land Lease Schese.bl Includes transfers frie the transport fund,cl 1977/79 includes transfers abroad.

Sources: Ministry of Finance and Planning and sission estieates.

142; -

Page I of 9Table 5.6: BARBADOS - CONSOLIDATED PUBLIC !;ECTOR, 1977/78 - 19B4185

(BD$ million)

Prel.1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85

CONSOLIDATED PUBLIC SECTOR

Current revenue 317.0 397.9 467.9 563.3 627.0 738.7 813.2 857.6Current expenditure 287.2 323.9 3B9.3 487.2 572.1 659.2 695.4 754.0

Curfent surplus/deficit (-I 29.8 74.0 78.6 76.2 54.9 79.4 117.8 103.6

Capital revenue 0.0 0.4 0.5 0.0 0.6 0.5 1.6 1.3

Capital expenditure 87.2 72.9 95.0 144.2 178.4 177.5 158.6 145.0

Overall surplus/deficit 1-) -57.4 1.6 -15.9 -68.0 -122.9 -97.6 -39.1 -40.1

Financing (net) 57.4 -1.6 15.9 68.0 122.9 97.6 39.1 40.1

External 28.2 30.3 12.9 80.4 91.2 58.4 27.2 31.5Domestic 29.2 -31.9 3.0 -12.4 31.7 39.2 11.9 8.6

I. GENERAL GOVERNMENT

Current revenue 266.7 336.0 386.2 471.5 515.8 599.1 656.0 687.1FrDm NFPEs 1.3 1.1 1.8 2.2 2.1 1.9 2.7 1.

Current expenditure 241.2 266.8 317.6 401.2 465.0 534.5 555.4 610.5To NFPEs 10.6 11.5 16.2 27.7 28.5 21.5 18.0 15.B

Current surplus/deficit H-) 25.5 69.2 68.6 70.3 50.8 64.6 100.6 76.6

Capital expenditure & net lending 88.0 73.1 88.0 139.3 174.1 142.4 129.5 121.6To NFPEs 26.3 30.4 31.0 33.4 31.2 25.3 27.6 36.6

Overall surplus/deficit H-) -62.5 -3.9 -19.4 -69.0 -123.3 -77.8 -28.9 -45.0

Financing (net) 62.5 3.9 19.4 69.0 123.3 77.B 28.9 45.0


- 143-

Page 2 of 9Table 5.6: BARBADOS - CONSOLIDATED PUBLIC SECTOR, 1977178 - 1984185

(8D$ million)

Prel.1977/78 1978/79 1979/80 19B0181 1981/82 1982/83 1983/84 1984/85

la. CENTRAL ADMINISTRATION a!

Current revenue 260.6 330.2 379.8 465.7 511.0 595.1 654.2 684.0From NFPEs 1.3 1.1 1.8 2.2 2.1 1.9 2.7 1.7

Current expenditure 239.5 264.5 315.9 398.8 462.4 532.2 552.5 607.4To NFPEs 10.6 11.5 16.2 27.7 28.5 21.5 18.0 15.8

Current surplusideficit 1-1 21.1 65.7 63.9 66.9 48.6 62.9 101.7 76.6

Capital revenue 1.9 - - - - - - -

Capital expenditure & net lending 85.9 72.2 85.9 141.9 173.4 142.4 129.5 121.6To NFPEs 26.3 30.4 31.0 33.4 31.2 25.3 27.6 36.6

Overall surplus/deficit H-) -62.9 -6.5 -22.0 -75.0 -124.8 -79.5 -27.8 -45.0

Financing (net) 62.9 6.5 22.0 75.0 124.8 79.5 27.8 45.0


lb. CENTRAL GOVERNMENT

Current revenue 237.1 296.8 342.4 425.6 453.1 492.1 537.1 568.9From NFPEs 1.3 1.1 1.8 2.2 2.1 1.9 2.7 1.7

Current expenditure 232.2 256.0 304.2 387.1 433.7 476.9 488.6 538.1To NFPEs 10.6 11.5 16.2 27.7 28.5 21.5 18.0 15.8To other Central Admin. 1.9 3.4 3.3 .7.6 2.4 9.5 1. 13.1

Current surplus/deficit -1- 4.9 40.8 38.2 38.5 19.4 15.2 48.5 30.8

Capital transfers fr. other gov t 1.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0Capital expenditure & net lending B5.9 72.2 85.8 141.B 173.3 141.2 129.3 121.6To NFPEs 26.3 30.4 31.0 33.4 31.2 25.3 27.6 36.6

Overall surplus/deficit {-) -79.1 -31.4 -47.6 -103.3 -153.9 -126.0 -80.8 -90.8

Financing (net) 79.1. 31.4 47.6 103.3 153.9 126.0 B0.8 90.8

External 28.2 30.3 12.9 80.9 91.3 58.4 24.7 23.8Domestic 50.9 1.1 34.7 22.4 62.6 67.6 56.1 67.0

- 14 -

Page 3 of 9Table 5.6: BARBADOS - CONSOLIDATED PUBLIC SECTOR, 1977/78 - 1984/85

(80$ million)

Prel.1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984185

Ic. NATIONAL INSURANCE FUND

Current revenue 25.4 36.8 40.7 47.7 63.1 123.5 129.3 127.2Contributions 19.1 28.8 31.4 36.7 49.0 100.5 102.3 104.0Transfers from gov't contrib. 1.9 3.4 3.3 7.6 5.2 20.5 12.2 12.1Interest income & others 6.3 8.0 9.3 11.0 14.1 23.0 27.0 23.2

Current expenditure 9.2 11.9 15.0 19.3 31.1 64.8 76.1 82.4Benefits 7.7 10.4 13.1 16.8 28.5 61.2 72.4 77.4Administration 1.5 1.5 1.9 2.5 2.6 3.6 3.7 5.0

Current surplus/deficit H-) 16.2 24.9 25.7 28.4 32.0 58.7 53.2 44.8

Capital expenditure - - 0.1 0.1 0.1 1.2 0.2 -

Overall surplus/deficit H-) 16.2 24.9 25.6 28.3 31.9 57.5 53.0 44.8

Net financing -16.2 -24.9 -25.6 -28.3 -31.9 -57.5 -53.0 -44.8

External financing - - - -0.5 -0.1 - - -Doeestic financing -16.2 -24.9 -25.6 -27.8 -31.8 -57.5 -53.0 -44.8Banking system -2.8 -20.4 -28.4 -20.1 5.3 -11.1 -5.7 ...Central gov t borrowing -9.9 -3.2 -2.3 -0.6 -24.1 -29.0 -37.6 -40.0Others -3.5 -1.3 5.1 -7.1 -13.0 -17.4 -9.7 ...

Id. SUGAR INDUSTRY PRICE STABILIZATION FUND

Current revenue 1.0 0.8 1.0 1.0 0.2 0.2 0.0 0.0Interest recieved 0.5 0.6 0.6 0.6 - - - -Other 0.5 0.2 0.3 0.4 0.2 0.2 - -Transfers from C.G. - - 0.1 - - - - -

Current expenditure - 0.3 0.1 0.3 0.3 0.2 - -

Overall surplus/deficit (-1 1.0 0.5 0.9 0.7 -0.1 0.0 0.0 0.0

Domestic financing (net) -1.0 -0.5 -0.9 -0.7 0.1 0.0 0.0 0.0

le. SUGAR INDUSTRY LABOR WELFARE FUND

Current revenue 1.4 1.1 1.4 1.3 0.9 - - -Current expenditure - - - - - - - -

Overall surplus/deficit (-) 1.4 1.1 1.4 1.3 0.9 0.0 0.0 0.0

Domestic financing (net) -1.4 -1.1 -1.4 -1.3 -0.9 0.0 0.0 0.0.. - - - - -- - - - - - -- -- -- - - - - -_-- - - -- - - - - - - - - - -

-- - -- --- - -- - -- - -- - -- - - -- - -- -,-- -- - _-- - .-- - - --.-- - -- - -- - -- - -- - -- - -

- 145

Page 4 of 9Table 5.6: BARBADOS - CONSOLIDATED PUBLIC SECTOR, 197717B - 19B4185

(BD$ million)

Prel.1977/78 1978179 1979/BO 1980/81 1981/82 1982/13 1983194 1984/85

If. SUGAR WORKERS' PROVIDENT FUND_ _ _ _ _ _ _ _---- ---

Current revenue 1.5 1.5 1.4 1.9 2.0 2.1 0.6 1.6Current expenditure 1.6 1.6 1.3 1.3 1.5 1.7 1.5 1.4

Overall surplus/deficit 1-) -0.1 -0.1 0.1 0.6 0.5 0.4 -0.9 0.2

Domestic financing (net) 0.1 0.1 -0.1 -0.6 -0.5 -0.4 0.9 -0.2

Ig. SUGAR INDUSTRY CAPITAL AND REHABILITATION FUND g/

Current revenue 1.4 1.1 1.4 0.1 0.1 - - -

Current expenditure - - - - - - - -

Current surplus/deficit C-) 1.4 1.1 1.4 0.1 0.1 0.0 0.0 0.0

Capital expenditure (transfers) 1.4 1.4 1.4 - - - - -

Overall surplus/deficit (-) 0.0 -0.3 0.0 0.1 0.1 0.0 0.0 0.0

Domestic financing (net) 0.0 0.3 0.0 -0.1 -0.1 0.0 0.0 0.0

Ii. SUGAR EXPORT LEVY FUND b/

Current revenue 0.6 0.13 0.8 0.7 0.7 1.0

Net lending 2.6 -0.5 0.7 -0.7 0.7To Central government 1.9 - - 1.9 - -To NFPEs - -0.3 -0.8 - - -

Overall surplus/deficit {-) -2.0 1.3 0.1 1.4 0.0 1.0 O.0 0.0

Domestic financing (net) 2.0 -1.3 -0.1 -1.4 0.0 -1.0 0.0 0.0

Ii. SUGAR RESEARCH AND DEVELOPMAENT FUND

Current revenue - - - - - - 0.9 1.0Current expenditure - - - - - - 1.1 1.2

Current surplus/deficit -) - - - - - - -0.2 -0.2

Domestic financing (net) - - - - - - 0.2 0.

- 146 -

Page 5 of 9Table 5.6: BARBADOS - CONS(ILIDATED F'UBLIC SECTOR, 1977/78 - 1984/85

(BDS millicin)

Prel.1977/7B 197B/75 1979180 1980/81 1981/82 1982/83 1983/84 1984185

Ik. OTHER SPECIAL FUNDS


Current surplus/deficit 1-) 0,1 0.1 0.1 0.0 0.1 0.3 0.0 0.0

Domestic financing (net) -0.1 -0.1 -0.1 0.0 -0.1 -0.3 0.0 0.0

11. CONSOLIDATED NON-FINANCIAL PUBLIC ENTERPRISES

Current revenue 62.1 74.5 99.7 121.7 141.8 162.9 177.9 188.1From general government 10.6 11.5 16.2 27.7 2B.5 21.5 18.0 15.8

Current expenditure 57.8 69.6 89.6 115.9 137.7 148.1 160.7 161.1To Central governeent 1.3 1.1 1.8 2.2 2.1 1.9 2.7 1.7

Current surplus/deficit (-i 4.3 4.8 10.0 5.9 4.1 14.8 17.2 27.0

Capital revenue 26.3 30.8 31.5 33.4 31.8 25.8 29.2 37.9From Central government 26.3 30.4 31.0 33.4 31.2 25.3 27.6 36.6


Overall surplus/deficit 5.0 5.5 3.5 1.0 0.4 -19.8 -10.2 4.9

Net Financing -5.0 -5.5 -3.5 -1.0 -0.4 19.8 10.2 -4.0

External (net) 0.0 0.0 0.0 0.0 0.0 0.0 2.5 7.7Domestic (net) -5.0 -5.5 -3.5 -1.0 -0.4 19.8 7.7 -12.6

Ila. NATIONAI. HOUSING CORPORATION b/

Current revenue 3.5 4.5 4.9 6.L 7.1 6.3 6.8 7,8From general government 1.7 2.6 3.3 3.9 4.9 2.9 2.8 2.6

Current expenditure 3.3 4.0 4.9 5.7 7.5 6.2 7.0 7.8

Current surplus/deficit (-) 0.2 0.5 0.0 0.5 -0.4 0.1 -0.2 .0

Capital revenue 3.7 4.3 6.6 8.3 6.0 6.0 3.b 8.6From Central government 3.7 4.3 6.6 B.3 6.0 6.0 3.6 B.6


Overall surplus/deficit 0.2 0.5 0.0 1.9 -2.8 0.1 -0.2 3.0

Domestic financing -0.2 -0.5 0.0 -1,9 2.8 -0.1 0.2 -3.0

147


(BD$ sillion)

Prel.1977/78 t978/79 1979/80 1980/81 1981182 1982/83 1983/84 1984/85

[lb. BARBADOS AGRICULTURAL DEVELOPMENT CORPORATION Cl


Current surplus/deficit (-) -1.7 -1.5 -0.6 -1.7 -1.8 -2.7 -2.8 -2.7



Overall surplus/deficit -1.5 2.2 -0.6 -1.3 -2.7 -2.7 -0.9 -1.2

Doaestic financing 1.5 -2.2 0.6 1.3 2.7 2.7 0.9 1.2

lIc. PORT AUTHORITY dlel

Current revenue 7.7 5.6 17.8 22.1 23.6 24.4 27.5 25.8Current expenditure 3.8 3.3 13.2 17.9 20.7 20.0 21.3 23.7Interest to Central Gov't 1.0 0.9 1.6 2.2 2.1 2.'0 1.5 1.8

Current surplus/deficit (-) 3.9 2.3 4.6 4.2 2.9 4.4 6.2 2.1.- - - - - - --- -- -- -- -- -- -- -- -- -- -- -- -- -- -- _-__--_ _--_ _-


Overall surplus/deficit 3.2 2.0 3.3 1.7 1.9 4.0 4.7 0.5

Domestic financing -3.2 -2.0 -3.3 -1.7 -1.9 -4.0 -4.7 -0.5

lId. CIVIL AVIATION bl

Current revenue 4.4 4.7 5.7 9.7 9.6 9.8 10.8 10.4Current expenditure 3.7 3.8 4.8 7.2 8.0 8.4 9.4 8.6Transfers to Central 6ov't - - - - - - 1.1 -

Current surplus/deficit 1-) 0.7 0.9 0.9 2.5 1.6 1.4 1.4 1.8



Overall surplus/deficit .0 0.0 0.0 .0 .0 .0 .0 .0

Domestic financing .0 0.0 0.0 .0 .0 .0 .0 .0-------------- -_ -- -- -- -- -- -- -- - - - - -_--- - - - - - -

-- -- -- - -- -- - -- -- - -- -- -- - -- -- - -- -- - -- -- -- -- -- - -- - - -- -- -- - -- -- - -- -- -

- 148-

Page 7 of 9Table 5.6b BARBADOS - CONSOLIDATED PUBLIC SECJOR, 1977/78 - 1984/85

(BDt million)

Prel.1977/78 1978/79 1979/80 19'80/81 1981/82 1982/83 1983/84 1984/85

IIe. VATERWORKS AUTHORITY tl

Current revenue 8.9 10.2 10.9 16.6 20.9 25.7 26.0 28.7From general government 2.7 2.7 3.2 7.3 5.4 1,3 0.0 0.0

Current expenditure 8.9 10.2 10.9 16.6 19.8 20.6 24.0 24.4

Current surplus/deficit l-) 0.0 0.0 0.0 0.0 1.1 5.1 2.0 4.3

Capital revenue 3.2 3.1 4.0 4.9 3.7 3.0 2.4 2.7From Central government 3.2 3.1 4.0 4.9 3.7 3,0 2.1 1.4

Capital expenditure 3.2 3,1 4.0 4.9 3.7 3,0 2.1 1.7

Overall surplus/deficit 0.0 0.0 0.0 0,0 1.1 5.1 2.3 5.,3

Domestic financing 0.0 0.0 0.0 0.0 -1.1 -5.1 -2.3 -5.3

lf. POST OFFICE bi

Current revenue 5.1 5.7 6.7 7.5 8.1 8,2 8.4 9.1From general government 0.0 0.0 0.0 1.2 0.0 0.3 0.0 0.0

Current expenditure 5.1 5.4 6.1 7.5 8.1 8.2 7.8 9.0To Central government 0.3 - - - - - - -

Current surplus/deficit l-) 0.0 0.3 0.6 0.0 0.0 0.0 0.6 0.1



Overall surplus/deficit 0.0 .0 .0 0.0 0.0 0.0 .0 0.0

IIg. BARBADOS INDUSTRIAL DEVELOPMENT C011PORATION b/

Current revenue 1,7 1.7 2.2 4.6 5.9 7,7 7.6 8.4From general government 1.2 1.2 1.7 2.9 3.0 2.5 2.2 2.4

Current expenditure 1.7 2,0 2.6 4.8 5.4 7.3 7.8 8.3

Current surplus/deficit 1-) 0.0 -0.3 -0.4 -0.2 0.4 0.4 -0.2 0.1

Capital revenue 3.6 4.5 6.2 6.7 5.8 6.0 7.9 86From Central government 3.6 4.1 5.7 6.7 5.8 5.5 7.3 8.6


Overall surplus/deficit 0.5 -0.4 0.7 0.9 0.4 -2.3 -1.5 2.6

Domestic financing -0.5 0.4 -0. 7 0-9 -0 4 2,3 1.5 -2,6

- 149


1BDS million)

Prel.1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85

Ilh. TRANSPORT BOARD b/

Current revenue 14.0 17.9 25.0 26.8 33.4 33.9 33.8 33.6Froe general governeent 4.6 4.5 7.6 11.9 15.0 14.5 13.0 10.8

Current expenditure 12.4 17.4 20.3 26,9 33.6 34.2 35.7 35.1

Current surplus/deficit (-) 1.6 0.5 4.7 -0.1 -0.2 -0.3 -1.9 -1.5

Capital revenue 4.5 1.2 2.0 2.5 4.1 6.0 6.7 6.5From Central government 4.5 1,2 2.0 2.5 4.1 6.0 6.7 6.5

Capital expenditure 4.2 1.2 2.5 2.5 4.1 6.6 6.3 6,5

Overall surplusldeficit 1.9 0.5 4.2 -0.1 -0.2 -0.9 -1,5 -1.5

Domestic financing -1.9 -0.5 -4.2 0.1 0.2 0.9 1.5 1,5

Iii. BARBADOS MARKETINS CORPORATION b/fl

Current revenue 9.5 11.7 14.9 16.4 19.5 14.5 10.9 B.5

From general government 0.4 0.5 0.4 0.5 0.2 0.0 0.0 0.0Current expenditure 10.5 11.9 15.1 16.4 19.5 16.1 10.5 8.2

Current surplus/deficit (-1 -1.0 -0.2 -0.2 0.0 0.0 -1.6 0.4 0.3

Capital revenue 1.5 2.4 0.4 2.2 0.1 - - -

From Central government 1.5 2,4 0.4 2.2 0.1 0,0 0.0 0.0Capital expenditure 0.1 1.1 0.4 0,5 0.3 - - -

Overall surplus/deficit 0.4 1.1 -0.2 1.7 -0.2 -1.6 0.4 0.3

Domestic financing -0.4 -1.1 0.2 -1.7 0.2 1.6 -0.4 -0.3

Ili. NATIONAL PETROLEUM COMPANY b/

Current revenue 2.0 2.1 2.4 3.1 4.4 5.4 9.9 6.6Current expenditure 1.4 1.5 1.9 2.9 4.2 5,1 7.7 5.8

Current surplus/deficit 1 0.6 0.6 0.5 0.2 0.2 0.3 2.2 0,8

Capital revenue - - - - 0.6 - - -

Capital expenditure 0.5 I1B 3.0 2.4 0.8 0.9 1.4 2.0

Overall surplus/deficit 0.1 -1.2 -2.5 -2.2 .0 -0.6 0.8 -1,2

Domestic financing -0.1 1.2 2.5 2.2 .0 0.6 -0.8 1.2

150

Page 9 of 9Table 5.6: BARBADOS - CONSOLIDATED PUBLIC SECTOR, 1977/7B - 1984/85

(BD$ xillion)

Prel.1977178 197B/79 1979/80 1980/8B: 1981/82 1982/83 19B3/84 1984/85

Ilk. BARBADOS NATIONAL OIL COMPANY b/

Current revenue - - - - - 15.5 25.3 36.3Oil - - - - - 14.6 23.7 34.6Gas - - - - - 0.9 1.6 1.7

Current expenditure - - - - - 9.1 15.1 15.2

Current surplus/deficit (-) - - - - - 6.4 10.2 21,1

Capital grant - - - - - - 0.6 -

Capital expenditure - - - - 27,0 22.3 20.0

Overall surplus/deficit - - - - - -20.6 -11.5 1.1

Financing - - - - - 20.6 11.5 -1I1

Foreign financing (net) - - - - - - 2.5 7.7Disbursement - - - - - - 2.5 7.7Aeortization - - - - - - -

Domestic financing (net) - - - - - 20.6 9.0 -8.8Loans from Central gov't - - - - - 26.0 2.9 11.8Amortization (to Central gov't) - - - - - -2.8 -5.8 -3.2Banking system - - - - - - - -

Dther - - - - - -2.6 11.9 -17.4

1I. CARIBBEAN BROADCASTING CORPORATION dl

Current revenue 2.9 3.7 4.9 5.4 6.1 7.2 7.5 B,3Current expenditure 2.7 3.3 4.1 4.4 5.7 6.0 7.3 7.9

Current surplus/deficit (-1 0.2 0.4 0d8 1.0 0.4 1.2 0.2 0,4

Capital expenditure 0.1 0.1 0.4 0.2 1.0 0.B 1.5 1.3

Overall surplus/deficit 0.1 0.3 0.4 0.8 -0.6 0.4 -1.3 -0,9

Domestic financing -0.1 -0.3 -0.4 -0.8 0.6 -0.4 1.3 0.9

a/ Includes Central Government, National Insurance Fund and Transport Fund.b/ Year ending March 31.c/ Year ending June 30.d/ Year endinq December 31.e/ Until 1977/78 the financial year ended March 31; 1978/79 accourits were for a nine-month period, April-December.f/ Until 1975/76 the financial year-ended July 31; 1976/77 accounts were for an eight-month period, August-March.g/ Year ending July 31.h/ From Sugar Levy Fund,

Sources: Ministry of Finance and Planning, national Insurance Board, accoucts of publir enterprises and oission estimates.

A- 151 -

Page I of 3Table 5,7: BARBADOS - PUBLIC SECTOR INVESTMENT PROGRAM, EXTERNALLY FINANCED PROJECTS, 19B4/85-87/88

(80$ million)

1984185 1985/86 1986/87 1987/88 Total

Total External Total External Total External Total External Total External

Projects With Financing

Agriculture 10.47 7.58 20.97 11.37 15.81 9.85 4.60 3.00 51.85 31.80

Springhall land lease project 0.43 0.28 - - - - - - 0.43 0.28Scotland District Soil ConservationProject 2.64 0.85 3.58 2.14 1.81 0.69 - - 8.03 3.68Rural Development Project 3.00 2.55 3.76 2.69 3.00 2.00 - - 9.76 7.24Bridgetown Fishing Port 0.50 - 8.50 3.16 11.00 7.16 4.60 3.00 24.60 13.32Poultry Production (Broiler/Breeder) 3.90 3.90 5.13 3.38 - - - - 9.03 7.28

Industry 5.00 2.96 7.00 4.28 10.23 4.84 2.36 2.18 24.59 14.26

Industrial Development and Promotion(IOC and BDB) 4.00 2.46 3.50 2.53 6.87 3.16 - - 14.37 8.15Industrial Estates III 1.00 0.50 3.50 1.75 3.36 1.68 2.36 2.18 10.22 6.11

Tourism 4.44 1.40 0.00 0.00 0.00 0.00 0.00 0.00 4.44 1.40

Heywood Holiday Village Project 4.44 1.4 - - - - - - 4.44 1.40

Energy 19.10 12.70 25.00 4.80 0.00 0.00 0.00 0.00 44.10 17.50

Petroleum Explor. & Dev. I (BNOC) 19.10 12.70 25.00 4.80 - - - - 44.10 17.50

Transport 1.49 0.10 26.00 17.90 41.00 40.00 38.00 20.49 106.49 78.49

Airport-West Coast Highway 0.81 - 10.00 6.90 16.00 24.00 20.00 11.55 46.81 42.45Access Road to Cement Plant 0.08 - 8.00 6.00 12.00 8.00 9.00 3.42 29.08 17.42Road Naintenace & Rebabilitation 0.60 0.10 8.00 5.00 13.00 8.00 9.00 5.52 30.60 . 18.62

Water 0.90 0.47 1.30 0.6B 0.00 0.00 0.00 0.00 2.20 1.15

Water Development III IBWA) 0.90 0.47 1.30 0.68 - - - - 2.20 1.15

Education 6.38 3.70 8.50 7.09 0.00 0.00 0,00 0.00 14.88 10.79

Rehabilitation of Primary andSecondary Education System 1 6.38 3.70 8.50 7.09 - - - - 14.88 10.79

Health 2,40 2.00 0.00 0.00 0.00 0.00 0.00 0.00 2.40 2.00

Community Health Polyclinics 2.40 2.00 - - - - - - 2.40 2.00

Other 1.49 0,00 2.51 1.09 0.00 0.00 0.00 0.00 4.00 1.09

Agricultural Diversification andEnergy Conservation - TA 1.49 - 2.51 1.09 - - - - 4.00 1.0q

Total - Ongoing Projects 51.66 30.91 91.28 47.21 67.04 54.69 44.96 25.67 254.94 158.48

- 152 -

Page 2 of 3Table 5.7. BHRBHDOS - PUBLIC SECTOR INVESTMENT PROGRAM, EXTERNALLY FINANCED PROJECTS, 1984185-87188

(BD$ million)

1984185 1985/86 1986/87 1987188 Total


Credits 14.72 13.86 20.00 19.20 14.63 13.83 4.63 4.63 53.98 51.52

industrial Credit Project (CEB) 3.20 3.20 4.20 4.20 5.88 5.88 3.83 3.83 17.11 17.11Global Credit }II (8DB) 1.93 1.93 2.97 2.97 4.15 4.15 - - 9.05 9.05Working Capital Loan (BOB) 1.03 1.03 1.23 1.23 - - - - 2.26 2.26Student Revolving Fund II (BNB) 1.56 0.70 1.60 0.80 1.60 0.80 0.80 0.80 5.56 3.10H8usinq 8uarantee Program 7.00 7.00 10.00 10.00 3.00 3.00 - - 20.00 20.00

Projects for which financing is required

Agriculture 0.00 0.00 1.50 0.70 6.00 4.10 14.50 9.80 22.00 14.40

Dpeightstown Fisheries Project - - 1.00 0.70 3.00 2.10 1.00 0.70 5.00 3.50Water Resources Dev. for Irrigation - - - - - - 1.50 1.20 1.50 1.20

'Integrated Livestock Production Proj - - - - - - 1.50 1.00 1.50 1.00

Central Agroncmic Research Lab. - - 0.50 - 3.00 2.00 2.50 1.90 6.00 3.90

;ugar Industry Rehabilitation/Agric.Diversification Project - - - - - - 8.00 4.80 8.00 4.80

industry 0.00 0.00 0.00 0.00 0.00 0.00 1.70 1.00 1.70 1.00

Industrial Estates - - - - - - 1.70 1.00 1.70 1.00

Tourism 0.00 0.00 10.00 6.00 10.00 6.00 1.00 1.00 21.00 13.00

Coastal Conservation - - - - - - 1.00 1.00 1.00 1.00Runway Rehab. - Inter'l Airport - - 10.00 6.00 10.00 6.00 - - 20.00 12.00

Energy 0.00 0.00 0.00 0.00 27.90 10.30 28.90 10.30 56.80 20.60

Petroleum Explor. & Dev. 11 (BNOC) - - - - 26.00 9.00 27.00 9.00 53.00 18.00

Gas Pipeline (NPC) - - - - 1.90 1.30 1.90 1.30 3.80 2.60

Transportation 0.05 0.00 0.50 0.00 5.04 3.02 10.08 6.04 15.67 9.06

Bridgetown Road Improvement andTraffic Management 0.05 - 0.50 - 4.00 2.40 8.00 4.80 12.55 7.20Improvement of Public Transportation - - - - 1.04 0.62 2.08 1.24 3.12 1.86

Port 0.00 0.00 0.00 0.00 8.00 8.00 0.00 0.00 8.00 8.00

Container Crane Acquisition - - - - 8.00 8.00 - - 8.00 8.00

Education 0.00 0.00 1.00 0.50 4.00 2.40 9.00 5.60 14.00 8.50

Education Project II - - 1.00 0.50 4.00 2.40 9.00 5.60 14.00 8.50

- 153 -

Pane 3 oD 3Table 5.7: BARBADOS - PUBLIC SECTOR INVESTMENT PROGRAM, EXTERNALLY FINANCED PROJECTS, 1984/85-B7186

tSD$ million)

1984/85 1985/86 1986/87 1987/88 Total


Health 0.0 0.00 0.00 0.00 11.00 6.90 35.00 23.00 46.00 29.90

South Coast Sewerage Project - - - - - - 10.00 6.00 10.00 6.00New Psychiatric Hospital - - - - 4.00 2.80 9.00 6.40 13.00 9.20Geriatric Hospital - - - - 3.00 2.10 4.00 2.80 7.00 4.90Queen Elizabeth Hospital Expansion - - - - 4.00 2.00 12.00 7.8c) 16.00 9.80

Housing 0.00 0.00 0.00 0.00 1.20 0.80 6.50 4.02 7.70 4.82

Sites and Services - - - - 1.20 0.80 4.00 2.40 5.20 3.20Redev. of Graeme Hall Area - - - - - - 2.50 1.62 2.50 1.62

Total - New Projects 0.05 0.00 13.00 7.20 73.14 41.52 106.68 60.56 192.87 109.28

Credits

Global Credit IV (BDB) - - 3.00 2.40 3.00 2.40 3.00 2.40 9.00 7.2Industrial Credit tCentral Bank) - - - - - - 4.00 3.20 4.00 3.20

Total 51.71 30.91 104.28 54.41 140.12 96.21 151.64 86.23 447.81 267.76

Ongoing 51.66 30.91 91.28 47.21 67.04 54.69 44.96 25.67 254.94 158.4BNew 0.05 0.00 13.00 7.20 73.14 41.52 106.68 60.56 192.87 109.28

Sources: Ministry of Finance and Planning; and mission estimates.

- 154 -

Table 5.8: BARBADOS - PUBLIC SECTOR INYESTMENT AND FINANCING, FYB4185-87/88

(BD$ million)

1984/85 1985/86 1986/87 1987/88 Total

Public sector capital expenditure 14J.0 180.1 211.0 233.1 769.2

Financing

Public sector savings 103.6 130.7 162.3 179.3 575.9

General government 76.0 101.1 129.8 149.4 456.4o.w. Central gpvernment 29.9 49.3 73.0 89.6 242.0Non-financial public enterprises 27.6 29.6 32.5 29.9 119.5

Capital revenue 1.3 - - - 1.3

Net external borrowing 31.5 27.4 48.8 32.8 140.5

Project related 52,6 76.0 112.4 93.3 334.3Other 3,5 - - 30.0 33.5Amortization 24.6 4B.6 63.6 90.5 227.3

Net domestic borrowing 8.,6 22.0 -0.1 21.0 51.5

Memorandum Items:

As Z of GDP

Public sector investment 6.3 1.3 7.B 7.8 7.4Public sector savings 4.5 5.3 6.0 6.0 5.5Net external borrowing 1.4 1.1 I.B 1.1 1.3Net domestic borrowing 0.4 0.9 .0 0.7 0.5

As Z of capital expenditure

Public sector savings 71.4 72.6 76.9 76.9 74.9Net external borrowing 21.7 1.2 23.1 14.1 18.3Net domestic borrowing 5.9 12.2 .0 9.0 6.7

Sources: Ministry of Finance; and mission estimates.

155

Table 6.1: BARBADOS - SUMMARY ACCOUNTS OF THE BANKING SYSTEM, 1976-84

(B0$ million)

---------------------------------- Decrember 31---------------------------------1976 1977 1978 1979 1980 1981 1982 I983 1984

Net International Reserves a! 42.4 29.0 88.6 111.2 146.9 68.6 72.0 78.5 108.6

Central Bank (net) 56.6 3).4 83.0 102.4 142.2 92.7 81.4 99.7 91.6Assets 56.6 74.2 120.0 135.6 160.0 206.8 2551.4 253.3 253.4Liabilities 0.0 35.8 37.0 33.2 17.8 114.1 170.0 163.6 161.8

Commercial Banks (net) -14.2 -?.4 5.6 8.8 4.7 -24.1 _-.4 -11.2 17.0

Net Overseas Operations -21.9 -19.7 -23.3 -27.8 -39.4 -44.6 -49.3 -52.8 -52.8

Net Domestic Assets 398.3 455.9 479.8 601.8 682.7 888.7 947.9 1042.5 1096.5

Net Claims on Public Sector 45.5 93.5 65.6 76.1 64.5 111.9 138.4 113.6 130.9Net Central Government b/ 120.9 169.5 164.9 204.4 220.1 260.5 297.8 293.0 325.1Net Other General Government -29.6 -27.3 -32.1 -33.1 -37.2 -33.6 -43.4 -48.6 -55.4Net Other Decentralized Agencies -4.3 -9.5 -10.8 -19.0 -22.8 -22.9 -16.4 -27.6 -25.7Net Social Security Fund -41.5 -39.2 -56.4 -76.2 -95.6 -B9.1 -93.6 -102.5 -112.6Nonfinancial Statutory Bodies 0.0 0.0 0.0 0.0 0.0 -3.0 0.0 -0.7 -0.6

Official Capital and Surplus -20.4 -25.9 -19.3 -20.0 -20.0 -20.0 -20.0 -22.0 -35.0Credit to Rest of Fianancial System 25.2 21.9 37.2 40.1 47.4 75.0 76.6 79.7 11B.3,Credit tD Private Sector 323.2 352.7 397.5 495.3. 593.0 7-23.1 772.9 B61.0 883.5Export Credit Guarantee 0.0 0.0 0.0 0.0 0.0 -2.0 -2.6 -2.6 -3.6Nonmonetary Inter'l Organizations -1.2 -2.6 -0.9 -0.7 -2.6 -1.7 -1.0 -2.2 -2.0Net Unclassified Assets 7.9 -3.5 -8.7 -13.4 -27.1 -20.4 -36.3 -7.1 -12.4Net Interbank Float 9.1 19.8 8.4 24,4 27.5 22.8 20.0 22.1 16.9

Counterpart Unrequited Foreign

Exchange 6.6 6.1 13.4 20.1 29.2 31.0 15.4 14.0 22.3

M&LT Foreign Liabilities c, 7.5 13.6 2-0.6 17.8 11.6 15.6 20.5 61".3 1.9

Liabilities to Rest of Financial

Systemf, 25.1 22.7 2B.6 40.2 38.3 57.9 63.1 87.3 91.9

Liabilities to Private Sector 369.6 422.8 4B2.5 607,1 711.1 808.2 867.6 905.6 976.2

Currency outside Banks 46.3 53.4 61.2 72.0 98.1 10?.1 108.1 114.1 118.1Demand Deposits 55.9 68.8 78.8 120.9 123.9 112.6 111.0 125.1 127.3guasi-liquid Liabilities 264.3 294.7 336.6 403.8 476.5 573.1 635.5 661.3 723.9Private and Capital Surplus 3.1 5.9 5.9 10.4 12.6 13.4 13.0 5.1 6.9

a/ Includes medium-term foreign liabilities of the Central Bank of Barbados.b/ Loans in foreign currency to the Government by the First National Bank of Chicago, whose branch office

in Barbados closed in 1978, are treated as foreign borrowing throughout.c/ Includes counterpart deposits of the Government's foreign assets.

Sources: Central Bank of Barbados; IMF.

156 -

Table 6.2; B'ARBADDS - SUMMARY ACCOUNTS OF THE MONETiARY AUTHORITIES, 197b-B4

(BD$ millioirn)

--------------------------------- December 31---------------------------------1976 1777 i978 i`79 198E0 1981 1982 i983 15984

_ _ _ _ _ _ _ _ _ _ _ , _ _ _ . . _ _56 _ _ _. 4_ Z 1 7

Net International Reserves 56.6 3E;.4 83.0 12.4 142.2 92. 7 86.4 89.7 L6_~~~~~~~~~~~~~~~~~~~~~~~~~~~~' _7 B _J _ 257_,_ ..__4

4ssets 56.6 74.2 120.0 13'i.6 160.0 226.8' 251.4 253.3 253.4Liabilities a! - 35.8 7.0 3o .2;, 17.8 114.1 170.0 163.6 161.8

Net Domestic Assets 25.3 57.8. 38.7 62.4 48.2 117.3 125.1 147.5 155.5_ _ _ _ _ _ . _ _ _ _ _~~~~~~~~~~~~~~~~~~~~~IC

Net Claims on Public Sector 31.4 49.5, 24. 51.8 52.8 75.3 85.1 74.1 60.97Net Central government 23.9 68.5 48.0 8'.2 87.9 112 22 120.3 2.8Assets bJ 38.f0 7 9.6 53.1 85.9 91.4 128. li3. 122.8 i21.4Liabilities 14.1 11.1 5.1 .7 3 .5 16 5 0 7 ?. 5 8.6

Net Other General Government -18.5 -15.4 -20.4 -24.1 -30.3 -32.0 , ,3 -42.4 -47.4Net Other Decentralized A,gencies -1.2 -3.0 -1.6 -1.7 -2.8 -2 U -2.0 -2.4Net Social Security Fund -0.8 -0.6 -1.2 -16 -2.0 -1.8 -i.l -1.5Nonfinancial Statutory Bodies - - - - - -3 0 - -0.6

Official Capital and Surplus -9.2 -10. 2 -i I .3 -12.0 - .12.0 -1 'Q - -1 2.iCredit to Commercial Banks .3.0 4.5 - 1.2 .2 7.5 i..9 .1 i7.9Credit to Rest of Financial System 20.1 14,. 24.0 14.4 23.8 SB 4'7.B 43 .4 70.4Export Credit Guarantee - - - - - -2.0 - 2b -3.6Nonmonetary Inter'l Organrizations -1.2 -2.6 -0.9 -0.7 -2.6 -17 -1.0 -2.0Net Unclassified Assets .2 2.5' 2.1 3.7 -15.0 -06 -10.1 20.7 23.9

C:ounterpart Unrequited Foreign

E-xchange 6.6 6.1 13.4 20.1 29.2 31.0 29 19.4 14,0 22.3

M&LT Forelgn Liabilities - - - - - - - 15.4 16.3

Liabilities to Commercial Banks 28.6 35.0 42.5 64.6 59.6 66.B 7.5, 79.9 87.3

Liabilities to Rest of Banking

System 0.4 1.7 4.6 8.1 3.5 2,6 2.2 0.2 0.8


System 5 . e - 0.5 1. 9.6 2. 3

Liabilities to Private Sector 46.3 53.4 61.2 72.0 98.1 109,1 108.1 114.1 118.1

Currency in Circulation 46.3 53.4 61.2 72.0 98.1 109.1 108.1 114.1, 11B.1

a/ Includes medium-term foreign liabilities of the Central Bank of Barbados.b/ 1980 includes Central Bank subscription to Trinidad and Tobago dollar loan.


- 157 -

Table 6.3: BARBADOS - SUMHARY ACCOUNTS OF THE COMMERCIAL BANKS, 1976-84

(BD$ million)

--------------------------------- December 31---------------------------------1976 1977 1978 1979 1980 1981 19B2 1983 1984

Net International Reserves -14.2 -9.4 5.6 8.8 4.7 -24.1 -9.4 -11.2 17.0

Assets 20.2 26.8 28.0 44.0 47.7 43.8 46.4 46.5 80.0Liabilities al 34.4 36.2 22.4 35;2 43.0 67.9 55.8 57.7 63.0

Net Overseas Operations -21.9 -19.7 -23.3 -27.8 -39.4 -44.6 -49.3 -52.8 -52.8

Assets 8.8 8.6 3.8 4.7 5.1 6.8 6.4 7.1 12.7Liabilities 30.7 28.3 27.1 32.5 44.5 51.4 55.7 59.9 65.5

Monetary Reserves L Currency

Holdings 22.2 36.3 44.2 62.9 62.9 67.2 76.0 81.8 94.0


Net Claims on Public Sector 41.2 43.6 44.4 42.1 30.8 60.4 B3.5 66.4 96.7Net Central Governeent 96.1 100.6 116.3 120.7 131.7 147.4 174.1 172.6 211.3Assets 100.7 104.9 123.9 130.5 142.8 161.0 187.9 188.4 233.0Liabilities 4.6 4.3 7.6 9.8 11.1 13.6 13.8 15.8 21.7

Net Other General Government -11.1 -11.9 -11.7 -9.0 -6.9 -1.6 -7.1 -6.2 -8.0Net Other Decentralized Agencies -3.1 -6.5 -9.2 -17.3 -20.0 -20.9 -16.4 -25.6 -23.3Net Social Security Fund -40.7 -38.6 -51.0 -52.3 -74.0 -64.5 -67.1 -74.4 -B3.3

Official Capital and Surplus -11.2 -15.7 -8.0 -8.0 -8.0 -8.0 -8.0 -10.0 -23.0Credit to Rest Of Banking System 0.5 0.8 1.7 0.9 1.6 5.0 6.6 5.6 8.4Credit to Rest of Financial System 5.1 7.8 13.2 25.7 23.6 24.2 28.8 36.3 47.9

Public Institutions 0.5 4.9 B.3 14.8 15.6 17.9 18.4 23.0 43.6Private Institutions 4.6 2.9 4.9 10.9 8.0 6.3 10.4 13.3 4.3

Credit to Private Sector 302.9 326.B 362.6 443.9 521.4 618.0 645.0 729.8 741.9Net Unclassified Assets -0.5 -4.3 -9.1 -14.8 -8.6 -11.2 -18.1 -19.6 -25.3Net Interbank Float 15.0 19.3 8.4 26.1 24.2 20.7 17.5 24.4 25.8

M&LT Foreign Liabilities a! 6.8 12.5 19.3 17.1 9.8 13.3 19.7 45.1 44.8

Liabilities to Monetary Authorities 3.0 4.5 - 1.2 1.2 5.4 16.2 26.1 24.3


Systes (Trust Companies) 4.7 2.3 5.8 7.3 1.9 1.4 6.6 11.0 16.7


System (Trust Coepaniesl 6.5 0.5 4.3 11.2 6.2 14.9 20.0 19.7 22.3


System 18.6 22.2 24.3 29.0 32.1 42.5 41.8 58.0 67.3

Liabilities to Private Sector 299.0 342.7 384.3 494.0 562.0 630.1 668.4 690.8 746.7

Deeand Deposits 55.9 6B.8 78.8 120.9 123.9 112.6 111.0 125.1 127.3Tise, Savings t Foreign CurrencyDeposits 240.7 268.7 300.3 364.5 426.2 504.8 547.1 562.6 615.2

Private Capital and Surplus 2.4 5.2 5.2 B.6 11.9 12.7 10.3 3.1 4.2

a/ Loans in foreign currency to the Government by the First National Bank of Chicago, whose branch officein Barbados closed in 1978, are treated as foreign borrowing throughout.


158-

Table 6.4: BARBADOS - DETAILED ACCOUINTS OF THE TRUST COMPANIES, l976-84

(BD$ million)

---------------------------------December 31…--------------------------------1976 1977 19178 1979 1980 1981 1982 1983 1984

Monetary Reserves & Currency

Holdings 0.4 1.7 4.6 8.1 3.5 2.2 2.4 .0 0.1


Net Claims on Public Sector 0.9 0.4 -3.6 -21.8 -19.1 -23.8 -30.2 -26,9 -26.8Net Central Sovernment 0.9 0.4 0.6 0.5 0.5 0.8 0.5 0.1 1.0Net Social Security Fund - - 4.2 -22.3 -19.6 -24.6 -30.7 -27,0 -27.8

Credit to Commercial Banks 4.7 2.3 5.8 7.3 1.9 1.4 6.6 11.0 16.7Credit to Private Sector 20.3 25.9 34.9 51.4 71.6 105.1 127.8 13i.2 i141.6Mortgage Loans (private) 16.1 20.5 27.3 40.8 57.9 72.2 78.8 79.1 86.8Mortgage Loans (other) 0.2 1.2 2.6 4.3 4.7 5.5 5.1 4.9Mortgage Loans (industrial andcommercial) 3.9 4.0 4.9 5.9 8.1 9.9 11.7 15.6 l1.2

Other Loans 0.1 0.2 C.1 0.4 0.9 17.5 32.2 31,6Net Unclassified Assets -0.8 -1.7 -1.7 -2.3 -3.5 -8.6 -8.1 -8.2 -i1.O

M&LT Foreign Liabilities 0.7 1.1 1.3 0.7 1.8 2.3 0.8 0.8 0.8

Liabilities to Commercial Banks 0.5 08 1.7 0.9 1.6 5.0 6.6 5.6 8.4

Liabilities to Private Sector 24.3 26,,7 37.0 41.1 511.0 69.0 91.1 1!00.7 111.4

Time Deposits 23.6 26,0 36.3 3q9.37 50.3 68.3 88.4 98. 7 1 08.7Private Capital and Surplus 0.7 0,7 0.7 1.8 0.7 0.7 2.7 2.0 2.7


-159 -

Table 6.5: BARBADOS - COMMERCIAL BANKS SELECTED INTEREST RATES, 1963-Si7

(Percentage per Annum)-- -- - - - - - - - - - - - - - - - - - - - - - - - - -_ - - - - - - -- - - - - -- -_ - - - - - - - - - - - - - - - - - --

Period Pri m eEnded Savings 3 months 6 months 12 months Lending

1968 4.0 4.0 4.5 4.5 6b1969 4.5 6.0 6.5 6.5 3.51970 4.5 6.5 6.75 6.75 8.51971 4.5 6.25 6.5 6.5 g.51972 3.5 5.5 6.0 6.0 6.5197 J3.5-6.0 7.0-10.0 7.0-10.0 7.0-10.0 *.3 11 0I974 4.5-6.0 7.5-1Ii.0 7.5-10.0 7.5-10.00 10.0- 2.1975 3.0-7.0 3.5-6.5 4.5-6.5 5.0-7.0 9.O-10D01976 2.5-7.0 3.5-4. 4.0-5.0 4.25-5.0 7.5-6.51977 2.5-5.0 3.5-5.0 4.0-5.0 3.7.5-5.0 7.5-8.i1976 .3.0-5.0 3.5-5.3 4.0-5.0 3.75-6.0 f.0-6.g51979 3.f0-5.i0 '.5-4.5 4.0-5. 0 3.75-5.5 6.0-8.51960 5.0-5.25 3.0-5.5 5.25-6.0 5.5-6.5 9.0-9.51981 6.0 8.5-9.5 7.0-9.0 7.8-9.3 13.0-14.01982 6.0 6.5-9.5 6.5-10.0 7.0-lO..0 10.0-13.5

1963 5.0-5.5 5.5-7,5 6.i-6.0 6.0-3.f Li,f.01964 5.0-5.5 5.5-7.0 6.0-7.0 6.0-7.5 10.5-11.5

Sources: East Caribbean Currency Authority; Central Bank of Barbados.

- 160 -

Table 7.1: BARBADOS - RETAIL PRICE INDEX, JANUARY 1979 - DECEMBER 1984

Alcoholic Household Medical Education,Beverages Fuel & Operations Clothing/ & Perso- Recreation & Ail

Food & Tobacco Housing Light & Supplies Footwear nal care Transportation Miscellaneous Items

Welghts 43.2 8.4 3.1 6.2 9.6 5.1 6.(j 4.6 3.8 100.0

f,nnual Average

1980 103.8 106.6 102.0 100.9 103.0 105.7 103.0 103.0 102.0 103.5

1981 119.3 114.9 126.9 107.9 114.4 124.2 11.9 117.1 115.2 118.619B2 128.0 130.4 154.0 110.7 123.2 129.4 134.6 I39.0 121.5 130.819833 131.4 144.2 168.3 119.1 127.6 132.3 144.8 1447.0 129. 3 137.71984 136. 6 153.2 18..6 i22.2 125.4 131.4 161.7 154.8 135.8 144.1

End of Period

1979 98.4 96.3 97.9 93.7 98.5 97.7 99.2 94.2 98.3 97.91980 110.6 112.9 12?2.1 107.7 108.2 115.8 106.4 105.4 107.3 111,61981 1424.5 115.8 148.6 105.4 117.6 130.5 125.8 123.8 122.3 125.31982 127.6 135.8 163.6 118.8 126 .3 128.5 142.2 144.B 123.. 9 133,91983 136.6 147.8 170.5 122.7 127.9 133.1 146.5 148.6 134.6 141.21984 142.0 152.0 194.4 125.0 126.1 132.7 163.6 157.0 135.5 148,4

Sources: Barbados Statistical Service.

- 161 -

Table 7.2: BARBADOS - WAGE RATES IN SELECTED SECTORS 1978-84

(BD$ per week)

1978 1979 1980 2981 1982 1983 1984

Manufacturing

Garments a/ 59.00 59.00 76.70 76.70 99.72 99.72 99.72

Beverages 99.67 116.61 120.33 164.70 164.70 197.64 210.00

Food 99.50 117.50 121.30 165.00 165.00 189.75 194.97

Chemicals 123.75 131.00 172.50 172.50 212.82 222.40 258.00

Services

Hotel t catering ... ... ... 125.14 125.14 137.68 143.75

Auto repair ... ... ... 152.00 190.50 190.50 219.25

Government ... ... ... 221.50 248.85 254.32 286.12

a/ 1984 contract is still in negotiation.

Sources: IMF; Ministry of Labor.

- 162 -

T,able 6.1t BARBADOS - PRODUCTION UF SELECTED ACF:[CULTURAL COMMODITIES, 1977-84

Units('000) 1977 198 1979 1980 1981 1982 1983 1984

Export avricuiture

Sugarcane (a) tMT 1045 8s5 1052 1204 962 766 705 8130,nions (bl Kg. 674 743 545 472 396 432 764 549Feanuts (c, Kg. 37 51 ,,. ... - 60 18 32Cotton (d) Kg. 21 16 1i7 1- -

Co,fmestic food crops

Yams Kg. 4995 B528 8;15 7817 4064 4500 4500 5400Sweet potatoes Kg. 1074 4990 2255 4705 304B 3700 4300 3100Beets Kg. 382 384 E31 356 507 480 509 482Funpt:in, Kg. 67 263 135 - 527 493 576 605Carrots Kg. 497 1814 2143 2395 2145 2416 2b47 2359Strinq beans Kg. 179? 181 98 521 510 509 ...1Tomatoes Kg. 122 728 702 1636 1055 1208 1344 1219Cucumbers Kg. 590 1755 9168 - 1808 1701 2035 1744Cabbage Kg. 260 816 1130 1717 1359 1577 1699 1308

Livestock products

Pigs kc' Kg. 454 1336 E02 918 942 1300 1414 1510Cows & calves (ci Kg. 18( 249 324 414 442 376, 326 273Boats & sheep (ci Kg. 34 21 60 58 51 21 29 21Poultry Ic) Kg. 3719 4274 5273 5248 6026 6700 613E8 6550Eggs (ck Kg. 1701. 1814 1600 1040 1350 1330 1048 1880Milk (el Kg. 2641 2993 7483 7500 7146 7400 7757 8730

Sources: (a) Ministry of Agriculture; Sugar Producers' association.(b) Ministry of Agiculture; Barbados Agricultural Society.- Mi Ministry of Agiculture; Central Bank estimates (Dead weight fn- pigs,cows,calves,goats,sheep, & poultry).(d) Agricultural Development Corporation.Ce) Annual repo.rts, Barbados Dairy Industr4i!s Ltd.

- 163 -

Table 8.2: BARBADOS - SUGAR STATISTICS, 1977-84

Est.1977 197B 1979 19BO 1981 19B2 1983 1984

Area of canes reaped ('000 hectares) 15.8 15.8 15.9 16.1 15.8 15.8 14.1 14.1

Tons of canes milled ('000) 895 895 1052 1204 962 766 705 813

Tonne yield (Tons cane/hectare reaped) 56.6 56.6 66.2 74.8 60.9 48.5 50.0 57.7

Rainfall (inches) 45.4 54.5 66.8 52.5 66.5 47.1 49.0 ...

Sugar production ('000 tons-raw value) 124.1 104.1 118.5 136.6 97.5 89.1 85.8 100.4

Sugar yield (tons cane/tons sugar) 7.2 8.6 8.9 8.8 9.9 8.6 8.5 B.3

Number of factories in operation 8 9 8 8 7 6 6 6

Exports ('000 tons-white value b/) 99.5 77.8 83.0 113.0 58.6 68.5 67.3 82.0

- to EEC 62.5 59.B 4B.0 56.1 44.0 49.3 48.4

- to US 37.0 16.5 34.6 55.0 14.4 16.0 13.8.

- to others 0.0 1.5 0.4 1.9 0.2 3.2 5.1

a/ Preliminary.bi Sugar white value is about 93l of sugar raw value.

Sources: Barbados Sugar Producers' Association; and Annual Overseas Trade Yearbooks.

- 164 -

Table 8.3: B8RBADOS - PRODUCT.LDN OF SELECTED NANUFACTURED GOODS, 1977-84

1977 1978 1979 198O 1981 1982 1983 1984

Fo Pd Products & Beverages ('000 units)

Lard ( po,undXs) 2733 3i264 2775 3204 4664 3328 3151 2684Margarine (Pounds) 4337 5205 4574 4933 6999 5787 7693 6120Biscuits (pounds) 8475 8213 6188 8664 78102 7612 7131 6461M8,acar,oni (pounds) 2267 2619 3224 3931 4278 3999 3645 3601A-niimal Feeds (pounds) 84524 78004 87240 87581 99714 109366 95404 94329Milk Products (pounds) 21337 21461 217C03 21964 20573 18817 18275 19047Rum Igallons) 2344 23L.0 1640 2237 1511 1239 1289 1244Beer (gallons) 1608 19390 1 62 1887 202I 1939 1962 1526Maltz Beverages (gallons) 65i3 953 641 726 812 9793 904 773

Carbonated Beverages (gallons) 4049 4347 4361 4161 3945 3830i 3699 3589Cigarettes (pounds) 418 5 i5 507 494 573 597 53l 524

Chemicals, Metal & Electrical Products ('000)

Gt.ygen (cubic feet) 3107 3299 3;91 4009 4393 4520 4782 4709Acetylene (cubic feet) 745 766 782 958 1028 1147 1157 1111Carbon Dioxide (pounds) 676 850 758 890 655 513 614 705Paints (gallons) 272 303 :331 415 364 401 372 418Nails (pounds) 201 328 375 283 423 320 352 150Barbed Wire (pounds) 131 140 136 179 490 418 168 454Storage Batteries (number) 11343 13856 15675 20861 20902 20502 16756 14121

Petroleum Products ('000 gallons) 48998 49856 54544 56910 58066 58734 56458 586E6

Gasoline 13763 13978 14626 14554 15441 14906 15446 14940Diesel 8946 10600 113.01 13117 1;3280 12830 12742 12113Gas Oil 704 714 642 320 148 104 5 14Fuel Oil 21739 2085;2 24183 25466 26191 28O09 25400 29173Kerosene 2594 2514 2490 2033 1933 1690 1592 1564Asphalt 1252 1198 1;302 1420. 1073 1115 1273 1082

Electricity (million kwh) 246 269 296 310 327 3370 354 360

Natural Gas (million cubic feet) 166 339 412 469 284 309 387 688

Crude Oil ('000 barrels) 124 274 284 305 211 258 402 635

a/ Fresh milk equivalent.


165-

Table 8.4: BARBADOS - MANUFACTURING PRODUCTION INDICES, 1975-84

(Average 1971 = 100)

Beveragesand Wearing Petroleum Other Electronic a!

Total Food Tobacco Apparel Chemicals Products Manuf. Components

1975 121.9 132.0 110.3 128.2 119.5 116.3 129.21976 143.7 149.7 109.0. 158.6 134.9 114.9 174.4 -

1977 145.1 152.0 124.4 169.1 109.9 115.5 165.1 -

1978 147.7 Ib0.4 139.4 159.7 119.0 118.& 159.4 80.21979 144.3 168.0 113.2 166.2 118.1 128.2 154.7 100.01980 147.5 173.8 125.1 168.2 149.0 133.3 146.5 100.11981 140.1 167.5 118.6 169.3 150.2 136.7 129.9 108.91982 135.1 152.9 111.8 173.2 131.3 136.1 122.5 169.11983 1Y7.7 142.1 119.1 174.6 129.3 133.1 127.9 211.21984 131.4 145.3 103.2 149.8 113.7 135.7 115.9 282.7

a! Average 1979 = 100; no separate index for this category has been computed for years priorto 1978.


_ 166

Table 8.5: BARBADOS - SELECTED INDUSTRIAL EXPORTS BY DESTINATION, 19BI-83

(B0$ million)

Trinidad Other Total Ali& Tobago CARICOM CARICOM U.S.A. U.K. Other Total

Electrical & Telecom i981 0.2 0.5 0.7 78.B 0.6 3.7 83.B1982 1.0 0.5 1.5 81.5 0.5 50.1 133.61983 0.9 0.4 1.3 127.3 0.4 180.7 309.7

Engineering Products 1981 7.4 10.3 17.7 5.2 0.4 2.3 25.61982 8.1 11.8 19.9 9.9 0.3 16.2 46.319B3 7.3 10.9 18.2 16.8 0.3 1.3 36.6

Transport equipment 1981 I.2 1.5 2.7 1.5 0.6 .0 4.8i982 0.7 1.4 2.1 0.3 0.3 1.3 4.01983 0.7 1.0 1.7 1.4 0.1 1.0 4.2

Equipment for data processingand office machines M981 - 0.8 0. 0.1 - .0 0.9

1982 0.1 1.0 1.1 - - 0.1 1.21983 - 0.6 0.6 35.1 - 0.3 36.0

Scientific equipment 1981 0.1 0.4 0.5 6.4 - 0.3 7.2:1982 0.5 0.5 1.0 0.2 - 0.3 1.51983 0.4 0. 0.7 0.4 - 1.0 2.1

Chemicals (excl. medicinals,cons. pharm.) 1981 4.2 7.6 11.8 0,1 - 4.2 16.i

1982 4.1 3.8 7.? - - 7.9 17.81983 5.8 7.1 12.9 - - 4.8 17.7

Synthetic textiles 1981 2.7 ).2 2.? - - 0.2 3.11982 3.7 0.1 3.8 - - .0 3.81983 3.6 0.2 3.8 - - .3 3.8

Total 1981 5.8 21i.3 37.1 92.1 1.6 10.7 141.51982 18.2 19.1 37.3 9i.9 i.1 77.9 208.2i193 18.7 20.5 39.2 181.0 0.8 189.1 410.1

Note: in 1982, there was a large increase in Exports of electrical products to Puerto Rico fromBD$i.5 million to BD$45.i million.

Source: Barbados Statistical Service- and Industrial Development Corporation.

- 167 -

Table 8.6: BARBADOS - WATER SERVICES, 1977-84

Est.1977 1978 1979 1980 1981 1982 1983 1984

Water c6nsumed (mln. liters) 34845 3'9741 38764 40107 33757 38206 42482 42220

Metered services 7742 ;2815 7751 8240 1152 7365 11875 9500Domestic & standpost wastage 27103 26q26 31013 31867 32605 30841 30607 32720

Water sales (BDS'000) 36B1 4536 5297 76B0 10571 17100 30439

Fixed rates 2361 2533 2989 4824 5271 9500 10548 11312Metered supply 1200 1821 2199 2849 5300 7600 19891 ...Meter rent 120 182 109 7 - - - -

Investment (BD$'000) 3200 3100 4000 4900 3700 3000 2100 1700

... not available

Sources: Water Works Department; Barbados Statistical Service.

- 168

Table 9.1: BARBADOS - TOURISM STATISTICS, 1979 - 84

Est.1979 19580 1981 19B2 1983 1984

Total tourist days ('000) a/ 3671 3930 3486 2632 2630 281BStayover arrivals ('000) 370.9 369.9 352.6 303.8 328.3 362.5Cruise-ship arrivals ('000) 110.1 156.8 135.8 110.8 102.5 99.2Average length of stay (days) bl 9.6 10.2 9.5 8.3 7.7 7.5Total bed capacity ('000) 11.8 13.4 14.1 14.1 14.3Bed occupancy rates, all establishments (ZI 76.4 65.3 54.0 45.5 46.7Tourist expenditurelhead/day (US$1 54.9 63.9 75.1 95.4 95.7 9.77

Total tourist expenditure (US$ million) 201.5 251.0 261.9 251.1 251.6 275.2

(Annual percentage change)

Total tourist days 27.3 7.1 -11.3 -24.5 -0.1 7.1Stayover visitors 17.1 -0.3 -4.7 -13.8 8.1 10.4Cruise-ship passengers -12.5 42.4 -13.4 -18.4 -7.5 -3.3Tourist expenditures 49.3 24.6 4.3 -4.1 0.2 9.4Daily expenditure/head 17.2 16.4 17.6 27.0 0.3 2.1

(As percentage of 6DP)

Total tourist expenditure 29.'9 29.9 27.5 25.2 23.8 23.19

(As percent of total visitor arrivals)

By country of residenceUnited States 24.6 23.2 21.1 24.9 34.7 37.9Canada 25.0 23.0 19.8 19.6 16.2 18.1CARICON 20.5 22.8 24.6 27.0 25.6 23.6United Kingdom 13.3 15.2 20.4 16.8 14.5 12.6Other 16.6 15.8 14.0 11.7 9.0 7.8

By intended length of stay.1 - 7 days 47.8 47.9 45.1 49.5 53.48 - 14 days 29.6 30.4 32.1 31.2 28.315 - 30 days 19.3 17.5 18.9 15.6 14.7 .Over 30 days 1.7 1.B 2.3 2.6 2.5 .Unspecified 1.6 2.3 1.6 1.0 1.0

a! Stayover arrivals multiplied by average length of stay plus; cruise-ship passengers.assumes average lenght of stay of tourists in establishments which are notsurveyed is the same as that for surveyed establisheents.

bI Applies to tourists staying in surveyed establishments only. Tourists staying inestablishments that are not surveyed represent about one third of totalstayover arrivals.

Sources: Barbados Statistical Service; Central Bank o4. Barbados; and mission estimates.

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Table 9.2t BARBADOS - VISITOR ARRIVALS BY COUNTRY OF RESIDENCE, 1977-84

Country ofResidence 1977 1978 1979 1980 1981 1982 1983 lq84

USA 70389 95473 91354 85971 74472 75511 113989 137320

Canada 93740 90992 92745 84934 69897 59619 53198 65700

UK 25841 36342 49430 56226 72090 51145 47662 45660

Continental Europe 22070 30915 41031 38354 29621 21588 17334 15910

Trinidad 22902 25188 39278 45114 43839 45046 47662 42800

Guyana 4552 6049 10147 10833 12247 10164 11159 16350

Leeward & Windward 19450 22040 23443 26435 28802 23372 22228 22550

Jamaica 2442 2268 3098 3026 3247 3138 3569 3750

Venezuela 5914 6438 6515 5411 4754 3809 2338 1480

Others 11574 11179 13875 13611 13622 10403 9186 10950

Total 269674 316883 370916 369915 352591 303795 328325 362470

(In Percent)

USA 26.1 27.0 24.6 23.2 21.1 24.9 34.7 37.9

Canada 31.1 28.7 25.0 23.0 19.8 19.6 16.2 18.1

UK 9.6 11.5 13.3 15.2 20.4 16.8 14.5 12.6

Continental Europe 8.5 9.8 11.1 10.4 8.4 7.1 5.3 4.4

Trinidad 8.5 7.9 10.6 12.2 12.4 14.8 14.5 11.8

Guyana 1.7 1.9 2.7 2.9 3.5 3.3 3.4 4.5

Leeward & Windward 7.2 7.0 6.3 7.1 8.2 7.7 6.8 6.2

Jamaica 0.9 0.7 0.8 0.8 0.9 1.0 1.1 1.0

Venezuela 2.2 2.0 1.8 1.5 1.3 1.3 0.7 0.4

Others 4.3 3.5 3.7 3.7 3.9 3.4 2.8 3.0

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Source: Ministry of Civil Aviation and Tourism.

170 -

Table 9.3w BARBADOS - AVERAGE LENGTH OF STAY OF GUESTS BY TYPE OF ACCOMMODATION

Hotel Category------------------- -- Guest Apartmaent Apart- All

Year I II III HOuses Hotels ments Establishments

1977 7.5 7.2 5.6 3.3 1('.3 11.7 9.0

197B 7.4 6.2 3.91 4.3 10.6 13.2 9.1

1979 6.8 6.7 4.7 4.2 IC.5 16.9 9.9

1980 7.2 5.6 5.91 4.7 9.7 15.0 9.8

1981 7.0 6.9 7.0 3.7 11.6 13.1 9.6

1982 6.6 6.0 6.7 3.0 10.7 9.7 8.3

1983 5.9 3.8 5.7 3.8 10.3 8.7 7.7

Source: Ministry of Civil Aviation and Tourisa.

- 171-

Table 9.4: BARBADOS - PERCENTAGE BED OCCUPANCY BY TYPE OF ACCOMMODATION,1976-83

HotelsAll -------------------------- guest Apartment

Period Establishaents 6roup I Group II Group III Houses Hotels Apartments

1976 44.7 53.8 36.1 22.1 19.4 50.4 45.9

1977 54.1 61.3 40.4 40.7 25.4 53.4 55.1

1978 59.3 71.5 38.0 40.3 24.4 64.7 60.3

1979 76.4 72.5 46.3 44.6 32.1 70.9 84.3

1980 65.3 69.6 44.5 44.1 27.5 69.8 66.2

1981 54.0 52.1 35.4 43.7 21.3 66.0 58.8

19B2 45.5 47.2 34.5 29.6 18.5 45.8 41.5

1983 46.7 57.6 32.6 31.0 16.1 51.5 37.8


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