The debate around the Economic Diversification and Growth Fund Bill has been strong and, in many cases, emotional. That response is understandable. When “our money,” jobs, and the future of the economy are involved, Barbadians are right to ask questions and demand clarity.
What the country deserves in return is a calm and factual explanation.
Barbados is a small open economy. We do not print foreign currency. Foreign exchange is what allows us to pay for food, fuel, medicine, education, and to maintain economic stability. At the same time, the global environment has changed. New international rules now limit how countries use tax incentives to attract investment. Governments therefore have to rely on disciplined, transparent, and rules-based approaches that deliver real outcomes.
The economic diversification and growth fund is designed within that reality.
Support from the Fund is tied to clear and measurable outcomes. Companies must create significant employment for Barbadians, earn foreign exchange, comply fully with tax obligations, and commit to remaining in Barbados over the long term. These are firm expectations. Where commitments are not met, funds can be withheld or recovered. Oversight, monitoring, and annual audits by the auditor general are built into the framework.
The conditions are specific. Support is limited to companies that create at least one hundred jobs for Barbadians and maintain those jobs for a minimum of seven years. The Fund itself is capped at $225 million over three years, with annual allocations of $75 million. In economic terms, this represents roughly half of one percent of Barbados’ GDP per year. That scale is targeted, time-bound, and manageable for a government that has demonstrated steady and credible economic management over the past seven years.
Much has been said about the use of “our money,” and that concern deserves a direct answer. These resources belong to the people of Barbados. That is precisely why they must be applied carefully and deliberately, in ways that strengthen the economy and expand opportunity over time for all Barbadians.
When employment grows and foreign exchange is earned, the benefits extend beyond the companies involved. Barbadians gain jobs and income. The state gains revenue. Pressure on social programmes eases. The capacity to fund healthcare, education, and targeted support improves. Over time, the country is better positioned to meet its social responsibilities.
It is also important to be clear about the consequences of failing to act. In a small open economy, limited job creation and weak foreign exchange earnings place strain on households and on public finances. Families feel that pressure first. Government is then required to respond with increased social support. Using “our money” to strengthen the economic base helps reduce that strain and provides greater stability for people over the long term.
There is sometimes a mistaken belief that social policy is mainly about responding after problems occur. In reality, effective social development is about creating economic space first, and then using that space to build skills, opportunity, and dignity, especially for those who are most vulnerable.
Some have suggested that this approach places companies ahead of people. In reality, people benefit most when jobs are created and the economy is stable. Wages, public services, and social programmes all depend on a strong revenue base. Economic growth and social progress move together.
It has also been suggested that this policy sidelines local businesses. Barbadian companies are resilient, innovative, and deeply rooted in our communities. Many, however, are oriented toward serving our small domestic market and do not yet export at scale. They meet a critical need in the Barbadian context, which we respect, cherish, support, and encourage. These are well-known structural features of small island economies.
It is also important to remember that small, local firms already benefit from lower corporate tax rates, domestic financing, and sector-specific support. Engagement with local businesses will continue so that government partnership can best support their growth.
This fund addresses a different need, large-scale employment and foreign-exchange generation. Barbadian companies that operate internationally and meet the criteria are not excluded.
There has also been an implication that this Bill vests excessive or questionable power in a minister. That implication does not reflect how government functions. Under this framework, the minister does not act alone or at will. Decisions are informed by a multi-agency committee, guided by public officers, aligned with national priorities, and subject to reporting, monitoring, and independent audit.
The committee advising the minister represents the key officials in charge of critical aspects of the economy – the director of finance and economic affairs, the governor of the Central Bank, CEOs of Invest Barbados and Export Barbados. The minister acts on advice and within authority granted by parliament, as is standard in public finance. The structure emphasises review and accountability.
It is also worth noting that this approach is not unique to Barbados. Similar performance-based investment models exist in countries such as Ireland, the United Kingdom, Singapore, and Canada, where governments commit public resources in exchange for jobs, export earnings, and long-term economic presence. In those cases, investment is tied to clear outcomes, monitored over time, and adjusted or withdrawn where commitments are not met. These approaches have helped attract major employers, expand tax bases, and support sustained economic and social progress. Barbados is applying the same principles, carefully scaled to our circumstances.
People may still disagree with this policy, and that is entirely legitimate. Debate is part of democracy. But disagreement should be grounded in facts rather than fear.
At its core, the economic diversification and growth fund is about using “our money” responsibly to support employment, earn foreign exchange, and strengthen the social foundation of the country. The intention is straightforward: to ensure that public resources contribute to stability, opportunity, and long-term benefit for the people of Barbados.
