Has Finance Minister Sinckler done the right thing… or is the situation so far out of hand that no government could be effective now?
Barbados, “the Jewel of the Caribbean,” the tiny easternmost island in the Lesser Antilles with 288,000 year-around inhabitants and lots of very rich foreign visitors and investors, is in the throes of a financial meltdown.
While its entire GDP is now only worth about $4.2 billion, and its population is smaller than that of Duluth Minnesota, this crisis is worth examining closely. For here we have a very precise example of the “finance curse,” where excessive dependence on high debt, an aggressive offshore haven industry, very low tax rates for high-net worth investors, foreign companies, and banks, and high tax rates for everyone else, have essentially brought this little country to its knees.
… from the December 2013 Forbes online article Postcard From Barbados — a.k.a. ‘Cyprus West’
See BFP’s January 2014 article Happy New Year 2014: Forbes announces that Barbados is on its knees, in a financial meltdown.