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Barbados Makes It To The Organisation For Economic Cooperation and Development (OECD) White List

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oecdComing out of the  G20 summit in London this week Barbados would have derived great satisfaction when the OECD published late last night (02 April 2009) its revised Tax Haven List. The List is divided into four categories:

  1. The White List represents the centres which are regarded as largely compliant with the OECD’s standard for tax information exchange agreements (TIEAs). Surprise surprise, Barbados made it all the way to the top! Correct us if we are wrong but Barbados is the ONLY island from this part of the world who made it to the big dance.
  2. The second list is branded Tax Havens: these are states which have agreed to be committed to the OECD standard but have not yet achieved the benchmark. Unfortunately many of our CSME/CARICOM partners now populate the Tax Haven List. This is unfortunate because as a region in the throes of progressing a common agreement ALL CARICOM countries should have adopted a harmonized regulatory approach a LONG time ago. This approach is relevant especially for our CARICOM partners with offshore jurisdictions.
  3. The third list is composed of Other Financial Centres which are regarded as committed but non-compliant. As  you can see some VERY developed countries have been deposited in this category e.g. Belgium, Luxemburg, Austria to name a few.
  4. Finally there is the List of Four Countries – not committed and non-compliant.

There has been a lot of dry talk regarding how G20 would have viewed Barbados’ compliance as an offshore jurisdiction. In recent times we have listened to the wonder boy Dr. Avinash Persaud, Dr. Don Marshall and others. We listened carefully to Mr. Kirton who is head of Invest Barbados and what he kept repeating made commonsense i.e. Barbados has completed several information exchange treaties with key jurisdictions and therefore stood a good chance of being highly regarded. The recent White List categorization gives truth to keeping a commonsense position.

Barbados’ current status was obviously not achieved by luck and chance. The work of former Prime Minister Owen Arthur, Lynette Eastmond and others has to be recognized. BU encourages that now more than ever we should adopt a bi-partisan approach to managing our key sectors.

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  1. Dark Knight Avatar
    Dark Knight

    I tend to recall that the European Union had agreed to give Barbados Euros 490 000 to establish an institute of training for the International Financial Services Sector.

    Having promised to keep Barbados off the OECD black list, and having promised accountability and freedom of information – I would be grateful if either the Prime Minister or the Minister responsible for International Business could tell Barbadians what is the status of that grant and what is the status of the establishment of that educational unit at the University of the West Indies.

    As a patriotic Barbados, I must admit that I am happy to note that the DLP has finally agreed to proceed with the establishment of the Financial Services Authority.

    It did not escape my attention that the International Monetary Fund (IMF), in its ESAP Report said that they knew what was the position of the previous Government in relation to the establishment of a Financial Services Commission but they were yet to hear – and this is the Report that came our last month – what was the position of this Government as it relates to a Financial Services Commission.

    It must be noted that in the DLP’s Manifesto and in the Thorne Speech – there is virtually nothing on the International Business Sector.

    But equally, what was bothersome was that even when the Prime Minister announced his Budgetary Proposals last year and he made mention of the International Business Sector, there was no reference to the improvement of regulation to the non-banking International Financial Services Sector.

    Was that a signaled intention to protect Clico, hence the $10 million which is was passed, in addition to the US$5 million now promised by stealth?

    How can you keep Barbados clean jurisdiction without improving non-banking regulations or without changing who is the political advisor to the Prime Minister.

    The regional and international community must really laugh when the DLP talks about stamping out corruption and keeping Barbados a “squeaky clean” jurisdiction.

  2. livinginbarbados Avatar
    livinginbarbados

    @DK
    I’ll get back on the EU grant.

    On the IMF FSAP report, note that the mission was held only a few months into the current administration (during March 26 to April 10, 2008–clearly stated), though the report was only recently published. So, the real study is now a year old. Given that Barbados is on the standard 12-month cycle for Fund visits for the Article IV consultation (last visit being in June 2008), some updating of that ought to occur in the next few months.

  3. Dark Knight Avatar
    Dark Knight

    “The negative outlook on Barbados reflects the growing imbalances that the inconsistent fiscal and monetary policy mix has caused.” – Olga Kalinina, Standard & Poor’s Economist

    This is the most damning criticism of David Thompson’s performance as Minister of Finance since he assumed that office some sixteen months ago.

    If ever there was a vote of no confidence in Thompson’s ability to manage our economy, this is it.

    Like you, I am not surprised, because it is a criticism that Mia Mottley made of him without apology.

    She knows the importance of consistency in maintaining confidence in the Barbados economy.

    No amount of sugar coating that the region is under fallout stress from the global economic downturn and that Barbados is not unlike other countries whose ratings have dropped can negate the full import of Ms. Kalinina’s words.

    As a desperate distraction tactic, an attempt is being made by the DLP to introduce President Obama’s success into the equasion.

    David Thompson is so unhappy in his skin and the Dems are so let down and disappointed with Thompson’s non-performance – that they are openly wishing he could be like President Obama: bright; 100 per cent man, and knows how to manage the economy.

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