Editorial: The conundrum of foreign investment

We would suppose that in a jurisdiction where both sides of the traditional political divide regard foreign investment in one form or another, whether it be tourism, offshore banking or directly in the form of business ventures; a jurisdiction that has underwritten several dedicated agencies, among them Invest Barbados, the Barbados Investment and Development Corporation and Barbados Tourism Investment Inc., to market our appeal as a commercial destination so as to woo this form of investment; and one that strives mightily to improve its standing as one of the best places in the world to do business, people with a global reputation for hospitality would be extending a warm welcome to foreign investors, subject of course to their agreeing to be bound by the prudential regulation of Barbadian law.

Yet we were to learn recently of conscientious objection to two proposed ventures, both of which appear to fit snugly within our agreed development agenda. Further, we are not currently aware that the principals in either investment have even the slightest intention of flouting applicable local regulations. 

We refer to the proposed construction of the Hyatt Hotel on Bay Street and a renewable energy venture by Deltro Inc., a Canadian firm, both of which appear to have struck a discordant note with some sections of the populace. 

The truth is that any foreign investment initiative, given its intrusive nature, is inherently subject to criticism; whether on the basis that the enterprise could have been undertaken by disadvantaged locals, that any sizeable construction is out of step with local norms or that the negative impact of the enterprise on the immediate environment or culture is likely to be substantial.

Yet, this is precisely the developmental path that we have chosen and it would appear to have served us well over the past years. In our view, short of a definite breach of relevant regulations by the investor, it does not behoove us to claim now that a proposed foreign investment is not good for us merely to curry political favour or to stymie the governing administration’s attempts to improve the economy. 

This entire situation reminds us of an old joke, one perhaps too indelicate for a family newspaper such as ours, but in which the punch line, usually attributed to Sir Winston Churchill, is, “We’ve already established what kind of woman you are. Now we are haggling about the price.” 

Our point is simple. Since we have already chosen a path of development the rough earning foreign exchange through the allure of our physical and fiscal environment, our critical task is to put adequate rules in place to ensure the protection of those things that we hold dear and to spare us from the ravages of such a national livelihood. Town planning permissions, environmental impact assessments, anti-money laundering and combating the financing of terrorism laws and such other forms of prudential regulation already exist for our benefit. 

So long as we ensure that these are conformed to, and that the propriety of the associated individuals is verified, there seems little economic sense in forestalling private investment of any kind, especially in these times.