In a significant response to mounting public concerns, Prime Minister Mia Mottley has introduced enhanced transparency measures for Barbados’ controversial Economic Diversification and Growth Fund legislation. The government’s move to incorporate additional oversight mechanisms demonstrates a notable shift toward addressing legitimate criticisms while maintaining the fund’s strategic objectives.
The central amendment requires ministers to formally justify any deviation from recommendations made by the fund’s Advisory Committee or National Growth Council through parliamentary disclosure. This procedural safeguard directly addresses earlier concerns about ministerial discretion and accountability regarding the allocation of $225 million in public funds over three years.
Criticism had emerged from multiple credible sources, including consumer advocate Tricia Watson, who initially raised alarms about potential foreign company benefits without adequate transparency. Academic experts Professor Don Marshall, Professor Troy Lorde, and economist Jeremy Stephen further questioned the legislation’s governance framework and developmental justification.
Prime Minister Mottley firmly rejected characterization of the fund as a foreign corporate giveaway during her parliamentary address. She established clear criteria: beneficiaries must create substantial employment exceeding 100 jobs and generate foreign exchange for Barbados’ economy. Companies receiving support will pay taxes at a standardized 9% rate, addressing equity concerns.
The administration contextualized the $75 million annual allocation against existing tax concessions totaling $875 million yearly across various sectors. Mottley emphasized this represents less than 10% of current waiver practices while aligning with international trends shifting from tax incentives toward direct investment support, citing OECD nations including the UK, Singapore, and United States.
This development underscores the importance of robust public debate in policy formation. While the government’s responsive approach deserves recognition, the episode highlights the necessity for proactive consultation on major legislation involving substantial public resources. The iterative process between government explanation, critical challenge, and policy refinement ultimately strengthens economic governance and public trust.