STAR Businessweek - 11 November 2017

THE STAR BUSINESSWEEK NOVEMBER 11, 2017

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OCEAN WEALTH VS OCEAN HEALTH:

DIVING INTO THE BLUE ECONOMY

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

Paradise Papers spark political backlash over offshore finance

The leak of the Paradise Papers, a trove of 13.4m documents claiming to show how “the rich get richer through offshore manoeuvres”, quickly inflamed both politicians and campaigners.

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HARNESSING THE ECONOMIC POTENTIAL OF THE CARIBBEAN’S MARINE ENVIRONMENT

The waters around the Caribbean are some of the most heavily populated in the world, home to a diverse array of marine species and providing a livelihood for many of the region’s 40 million inhabitants. The importance of the ocean to small island nations such as Saint Lucia cannot be overstated. From tourism to agriculture, these crystal clear and turquoise waters are much more than just a beautiful backdrop. They are at the heart of life in the Caribbean and central to what many economists are now calling ‘the blue economy’.

Page 4

EU warns 53 jurisdictions of tax blacklist threat

European officials have told 53 countries and territories that they risk being blacklisted as tax havens after the UK earlier delayed warnings to a dozen jurisdictions with ties to Britain.

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GLOBAL POLITICAL TO SWEEP INTO BARBADOS’ 2018 ELECTION

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

THE STAR Businessweek

BY CHRISTIAN WAYNE – EDITOR AT LARGE

It’s been a tumultuous past few months for the normally docile Caribbean. In September the region was catapulted to the forefront of the international media as some of its smallest nations battled against Hurricane Irma, the costliest Category 5 hurricane ever recorded in the Atlantic Ocean. That record, however, was broken just two weeks later by Maria. The subsequent Category 5 hurricane stormed through the region, leaving a decimated Dominica and Puerto Rico in its wake.

Though the 2017 Atlantic Hurricane Season may officially be over, it appears more dark clouds over the region loom. In what has now been dubbed ‘The Paradise Papers’, 13.4 million confidential documents related to the offshore financial affairs of the world’s wealthiest individuals and most profitable companies—from celebrities, professional athletes and politicians to blue-chip corporations like Apple and Nike—have been leaked to ICIJ journalists who, this week, began publishing the secretive tax minimization strategies of the world’s richest 1%. Despite being largely in compliance with OECD Common Reporting Standards, regulators in the US and UK are still outraged at the unmasked tax arbitrageurs and their perniciously cooperative tax jurisdictions located primarily in the Caribbean. Learn more about The Paradise Papers from The Financial Times’ Tax Evasion & Avoidance writers on pages 3 and 7.

According to World Bank experts, the Caribbean may be hiding more wealth than previously estimated. Where’s that treasure hidden, you ask. Well, you could start with our cover story ‘Ocean Wealth vs Ocean Health: Diving into the Blue Economy’ starting on page 4.

Admittedly, it’s been a whirlwind year in global politics with eyes either glued to the US and Donald Trump or the UK and Brexit. But did you know that our Barbadian neighbours are gearing up for an election of their own? Read more on page 2.

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We see many nations the world over in a time of huge political turbulence. Last year saw the shock decision of the UK’s Brexit vote‚ and in the US the election of Donald Trump to the White House. This year has seen the trend continue, with the strength of far right candidates in French and German elections not only straining European unity but testing many political norms and conventions that have been pillars of liberal democracies in the post-war era.

Put simply, while today we’re more globally connected than ever from an economic perspective, many nations have seen their politics turn inwards and become more embittered with each election cycle. The Caribbean is not immune to this global trend and so, with the upcoming elections constitutionally required in Barbados before mid-2018, an overview of this trend in the nation is essential for business.

THE ISSUES

While Barbados is small in the global economy, with elections held only every five years, its capacity to change course is more limited than a nation that would see elections for its parliament in a shorter duration of every two or three years.

Short-term concerns for Barbadians are issues too familiar to most other nations‚ with jobs and growth being core themes. While Barbados’ unemployment rate at 9.8% is down from the high of 12.3% in 2014 - and way below the stratospheric heights 24.4% in 1993 - it still pales to the record low of 7.4% seen in 2007. It is here that a picture of Barbados’ wider challenges is illustrated, as achieving growth and rejuvenation over mere maintenance of existing business is an ongoing problem.

Like other nations in the region, growing free trade, reducing tariffs and seeking to build greater confidence surrounding its national economy - beset by high public debt and recent downgrades in its credit status - loom as key tasks for Barbados in its next five years. So, too, the continuing efforts in Barbados and beyond to address the challenge of Climate Change.

Further, while Barbados sees strong performance in its major sectors of tourism and banking, these sectors are not invulnerable.

As the world continues its growth into a more globalised economy, more of the world’s wealth and economic power shifts towards the Asian region, and even the rise

of cryptocurrency signifying location may become less and less important to finance in the future; any expectation by politicians in the Barbados capital Bridgetown that it’ll be ‘business as usual’ within these sectors in years ahead will be tested.

PARLIAMENT AND PERSONAL POLITICS

Barbados achieved independence in 1966 with the former British colony becoming a constitutional monarchy on November 30th of that year. Since then it has carved a unique identity as a nation and, as seen via its participation in the establishment of the Caribbean Court of Justice (CCJ), has been a key voice of regional leadership and reform.

This progress has been aided by national stability‚ with 30 seats in parliament, and the two major parties, the Democratic Labour Party (DLP) and the Barbados Labour Party (BLP)‚ swapping tenures in government and opposition since independence.

With the current government holding a majority of one seat, this is an election that could see Prime Minister Freundel Stuart’s DLP re-elected or Opposition leader Mia Mottley’s BLP take power. As readers may deduce from the similar party names (not to mention their similar DLP and BLP shorthand), the differences between the two parties in the past were often held to be minor, and the business of government orderly‚ but many indicators show this election will be of a different ilk.

Accusations of poor economic administration by the Stuart government with the country’s credit rating downgraded in September from CCC+ to CCC - in tandem with critique of its transparency in the management of the National Insurance Scheme, sit within a political climate that has accusations of personal corruption on the part of ministers, leading Cabinet member Chris Sinckler saying this will be the “nastiest campaign” ever. The opposition, in return, has accused the government of seeking to attack Mottley’s personal integrity and tarnish her character.

GLOBAL TRENDS, LOCAL IMPACT

At its core these battle lines show that Barbados is set to experience what other nations have already been through. Beyond the regular rough and tumble of a political campaign, there is a global problem with the confidence in government itself, being borne out in national elections. In this respect

apathy for Bridgetown mirrors the trends seen in the election of Trump, and other political phenomenon elsewhere.

This trend is not only delivering nontraditional figures from outside politics, like Trump on the right, but leaders like French president Macron in the centre and, more widely, a spate of young leaders like Canadian PM Justin Trudeau and New Zealand PM Jacinda Ardern who seek to portray themselves as a new and non-traditional brand of politician.

THE ELECTION DATE

The Barbados experience speaks to a reality that politics in recent times has gone up a notch across many countries.

It has never been a field for the faint of heart but one need only look at the harsh rhetoric and divisive debate in the Bahamas earlier this year to know Barbados’ campaign will certainly be turbulent.

By virtue of its small parliament and system of government, Barbados has no prospect of a Trump-like phenomenon occurring and a leader winning office‚ changing the nation overnight. There is a risk, though, that the wounds of this campaign, like the ones exposed in the US election of last year, will be opened and enhanced by a vicious campaign.

The exact date is not yet fixed but political history gives us some clues surrounding a potential date. In Barbados and similar countries where the prime minister has the capacity to call for an election (via request to the governorgeneral), choosing around Christmas or New Year’s Day is regarded as politically unwise. The Easter period is also unlikely for the same reason.

In turn, while it’s notable that Prime Minister Stuart broke with tradition and called the last election five years after this parliament first sat (something which, by convention, is not usually done), it is also not good for a government to be seen to ‘cling to power’, and wait until the last possible date for an election to occur, especially in such a fierce political climate.

The elections in 1991, 1999 and 2008 all occurred in January, with the 2013 election in February. So, sooner rather than later, and an early 2018 election, is likely for Bridgetown.

Accordingly, whether it is a PM to re-elect or a new opposition to win government, they’ll need to be mindful in the campaign that whoever wins office will have to run the country afterwards. A ‘divide and conquer’ approach may make for effective campaigning but can irritate the voting public, and runs the risk of destroying any capacity for a bipartisan approach post-election. All Barbados candidates will need to keep this in mind when the election date is announced.

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© The Financial Times Limited [2017]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. Star Publishing Company is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation

PARADISE PAPERS SPARK POLITICAL BACKLASH OVER OFFSHORE FINANCE

BY FT CORRESPONDENT

Paradise Papers spark political backlash: “Millions of confidential documents detailing the tax minimization strategies of wealthy individuals and corporations have been leaked to the International Consortium of Investigative Journalists.”

The leak of the Paradise Papers, a trove of 13.4m documents claiming to show how “the rich get richer through offshore manoeuvres”, quickly inflamed both politicians and campaigners.

Bernie Sanders, the US senator, said the leaked data showed how the “international oligarchy” avoided paying its “fair share of taxes”.

Jeremy Corbyn, the UK opposition leader, said society was being damaged by “a super-rich elite which holds the taxation system and the rest of us in contempt”.

But for tax experts, the conclusions were less clear. They said the structures revealed so far in the new cache were very different from those exposed in a previous leak, last year’s Panama Papers.

Pascal Saint-Amans, the top tax official at the Paris-based OECD said: “They are quite different from the Panama Papers.”

He said the schemes in question were mostly, if not totally, legal. “Some are not even questionable from a legitimacy point of view.”

The Panama Papers led more than 70 governments to launch probes resulting, for example, in the ousting of Nawaz Sharif, Pakistan’s prime minister.

The leak also forced Panama, a holdout in an international transparency drive, to bow to global pressure.

Speaking on Monday, British tax officials

said 66 criminal investigations had arisen from the Panama leak and that they might retrieve £100m of tax.

But Appleby, the “offshore magic circle” law firm at the centre of the new leak, after the computer servers in several of its offices were hacked, is very different from Mossack Fonseca, whose data featured in the Panama Papers.

The New York Times, a member of the International Consortium of Investigative Journalists, the global network behind both sets of revelations, contrasted the “predominantly elite” clients of Appleby with those of Mossack Fonseca, which it said “appeared to be less discriminating in the business it took on”.

It said, however, that in among the “dull reading” of the new documents, there were some that revealed how multinational companies avoided taxes and how the super-rich hid their wealth.

The fresh leaks will reignite the debate on whether the international financial services industry plays a positive or negative role in the global economy.

For some, there is little doubt that the offshore centres are harmful. Last year more than 300 economists, including the Nobel Prize winner Angus Deaton, signed a letter to world leaders that argued: “The existence of tax havens does not add to overall global wealth or wellbeing; they

serve no useful economic purpose.”

But there are also strong defenders of offshore finance, which is often described as an essential cog in a world of increasingly cross-border trade and investment. The “tax neutrality” of havens ensures that individuals from different jurisdictions making collective investments can avoid double taxation.

Mark Pragnell, head of commissioned projects at Capital Economics, a consultancy, said: “Fundamentally, offshore centres facilitate the cross-border economy by helping individuals and organisations do deals across borders.”

Trusts are often used in order to protect minors or high-profile individuals’ rights to confidentiality.

Martin Sullivan, chief economist for Tax Analysts, a non-profit publisher, said: “There is nothing illegal about having a bank account in Bermuda. It’s only a problem if you don’t disclose it on your tax return.”

Offshore centres have, at least in part, shaken off their reputation for secrecy in the wake of an international transparency drive which will result in the automatic exchange of tax data by more than 100 other countries, a process that began in September.

The US has not joined the new system, although it is automatically exchanging certain information under its own automatic exchange rules, known as the Foreign Account Tax Compliance Act.

In June the OECD said “massive progress” had been made over the past year as it revealed there would be no significant offshore centres on the blacklist of “unco-operative tax havens” it had prepared for the G20 group of leading countries.

Angel Gurría, secretary-general of the OECD, said on Monday that the problems shown in the leaks were a “legacy issue” and there was now “quite literally no place to hide”.

But while the OECD is largely satisfied by the progress made by the offshore centres, some governments would like to go much further.

European governments have been split over plans to draw up a tax haven “blacklist”, with London, in particular, opposing some of the efforts. There might also be a renewal of pressure to open up trusts to greater public scrutiny, an issue on which the UK is strongly opposed to further action on privacy grounds.

There could also be a revival of the pressure on British Overseas Territories and Crown Dependencies to introduce central public registers of company ownership.

This proposition, a long time goal of former prime minister David Cameron, was dropped by the previous government, but Britain’s Labour party has signalled it would continue to push for it.

Such a move would delight centres such as Singapore, which compete with the Overseas Territories and Crown Dependencies, according to a lawyer specialising in offshore work who did not wish to be named. “They are rubbing their hands when they think about what might flow from a British own goal on this.”

He argued that “ordinary people” would be losers if Britain’s offshore centres were damaged by a further crackdown because they were widely used by the pension funds on which they depend.

But there remains public support for tackling offshore finance and there is a widespread perception that offshore centres shift the burden of taxation to ordinary taxpayers and give multinational corporations an edge over smaller competitors.

The growing concern about inequality is driving a lot of the debate, according to Mr Saint-Amans: “There is still political and public pressure to fight the tax havens.”

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OCEAN WEALTH VS OCEAN HEALTH: DIVING INTO THE BLUE ECONOMY

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

HARNESSING THE ECONOMIC POTENTIAL OF THE CARIBBEAN’S MARINE ENVIRONMENT The waters around the Caribbean are some of the most heavily populated in the world, home to a diverse array of marine species and providing a livelihood for many of the region’s 40 million inhabitants. The importance of the ocean to small island nations such as Saint Lucia cannot be

overstated. From tourism to agriculture, these crystal clear and turquoise waters are much more than just a beautiful backdrop. They are at the heart of life in the Caribbean and central to what many economists are now calling ‘the blue economy’.

WHAT IS THE BLUE ECONOMY?

Caribbean waters generated US$407 billion in 2012, according to a report from the World Bank released last year.

This amounts to over 17 per cent of the region’s GDP and was mainly derived from

the fisheries and aquaculture, oil and gas, and shipping industries. The blue economy is where this type of economic activity intersects with sustainable environmental practices - reaping the rewards of the ocean and unlocking its economic potential while preserving the health of marine life and ecosystems.

“The blue economy is balancing ocean health with ocean wealth so it is possible to make use of ocean resources on a continuous basis for current and future generations,” says David Robin, Programme Co-ordinator of Ocean Governance and Fisheries at the Organisation of Eastern Caribbean States (OECS).

The World Bank breaks down the blue economy in the Caribbean into three distinct categories. The first is living resources, which include conch, reef fish and large pelagic species. The second, non-living resources, covers oil and gas deposits such as those in Trinidad and Tobago.

The remaining segment of the economy is ecosystems. The Caribbean waters have the highest level of species diversity in the tropical Atlantic, making the area a hotspot for marine life. Mangroves, coral reefs and deep ocean habitats not only attract a plethora of underwater life but also

nature-loving tourists. Each year millions of divers, anglers, yachters, watersports enthusiasts, boaters and eco-tourists visit the Caribbean to experience the tropical waters for themselves, making a substantial contribution to the regional and local economies.

FINDING A BALANCE

Harnessing natural capital requires a careful balancing act. Exploiting ocean resources must go hand in hand with protecting those same resources. The region’s waters are facing many threats, some man-made, some natural, but all obstacles to the growth of the blue economy.

While the need for sustainable fisheries has long been acknowledged, fish stocks continue to decline as demand increases but yield shrinks. Over-exploitation of certain species has not only reduced those species populations but had a ripple effect on the entire ecosystem. Disturbing the delicate balance of the ocean’s inhabitants has indirectly led to overgrowth of algae and damaged coral reefs.

Around 75 per cent of the region’s reefs are considered at risk of human activity.

Not confined to overfishing, this also

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includes coastal development and pollution.

Over 41 million people in the Caribbean live within 10 km of the sea. Waterfront resorts, marinas, beachfront condos - all place a burden on the ocean, particularly in the construction phase when land is often extensively cleared and sand is dredged.

Pollution has also taken its toll on the pristine Caribbean waters. Around 85 per cent of wastewater dumped into the region’s seas is untreated, causing algae bloom and so-called ‘dead zones’. In addition, plastic debris is being discarded into the water at an alarming rate. According to the World Bank, by 2025 0.29-0.79 million metric tons of plastic will be emptied into the oceans each year.

POLICY AND PARTNERSHIP

For Eastern Caribbean countries the concept of the marine economy is nothing new. Small island states such as Saint Lucia have long been dependent on the water and know that it is integral to the country’s economic and social survival.

“Like many other Caribbean states, the members of the OECS have significantly more ocean space than land, some in the order of 100 times more,” says Robin.

“Given the risks we face, our challenges and

While the need for sustainable fisheries has long been acknowledged, fish stocks continue to decline as demand increases but yield shrinks.

NOVEMBER 11, 2017

vulnerabilities, we are working to make sure those ocean spaces work for us. The OECS has been talking about the ocean for over three decades. It is not something we have just arrived at. We may find that we have not had the best practices in some instances but the awareness of our dependence on the ocean goes back centuries.”

In 2013 the OECS launched its Eastern Caribbean Regional Ocean Policy (ECROP) to create a comprehensive framework that meets global best practices in sustainable marine management. And last month the organisation received a US$6.3m grant from the World Bank to build on this initiative through the Caribbean Regional Oceanscape Project (CROP) .

Funded by the World Bank’s Global Environmental Facility, CROP aims to assist Eastern Caribbean nations in implementing regional policies to protect their marine economies. Activities under the project will include mapping ocean assets, collaborating with private sector technology companies to promote ocean education, and improving ocean data.

A large component of CROP is education.

Robin says one of the key aims is to build awareness among stakeholders at every level - from fishermen to senior government

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officials. The programme intends to launch a ‘virtual university’ where a raft of educational resources will be available.

The political will for a blue economy is there, according to Robin, and has been proven by the raft of legislation, policy and regulation crafted for the marine environment. But drawing all that knowhow together and devising a common approach will take an unprecedented level of partnership - not just between regional governments but also between the public and private sectors. Robin says it is a big task, but one that is achievable, especially given what’s at stake. “The political will is there, it’s already been demonstrated,” he says. “We hope CROP will be a catalyst for more input and partnership. It is vital to have an integrated approach to management of the ocean.”

While the benefits of CROP and ECROP may not be felt for many years, particularly at a national level, they represent an important step towards a greater goal.

The organisation hopes that putting in place sustainable policies now will reap great rewards in the future, in addition to building a solid foundation for change, based on regional partnerships and enhanced awareness.

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JETBLUE LAUNCHES #CHECKINFORGOOD CONTEST TO CELEBRATE KINDNESS IN THE AIR AND ON THE GROUND

JUST IN TIME FOR JETBLUE FOR GOOD® MONTH, CUSTOMERS CAN #CHECKINFORGOOD AT POP-UP KIOSKS AND ONLINE TO ENTER FOR A CHANCE TO MAKE A DIFFERENCE ON A VOLUNTEER TRIP WITH JETBLUE #CheckInForGood to Help the Sandals Foundation’s Local Caribbean Community Efforts - Jamaica, Nov. 27-29, 2017

Last week Jet Blue announced it will celebrate a month of kindness and good in November with JetBlue For Good Month. Throughout this month of philanthropy and giving, JetBlue is asking customers to #CheckInForGood and enter to win a complimentary trip to volunteer with some of the airline’s non-profit partners. The winners will participate in trips focussing on the three pillars of the JetBlue For Good platform: youth and education, community and the environment.

HOW IT WORKS

JetBlue mock check-in kiosks popped up in surprise locations in New York City and Los Angeles from November 2 – 9, 2017. To enter, entrants filled out a short questionnaire about what “good” they have to declare at one of the JetBlue kiosks, or online at JetBlueCheckInForGood.com through November 9. Based on individual responses, entrants were matched to causes aligning with JetBlue For Good’s three key pillars – youth and education, community and the environment – and placed on “standby” for an opportunity to win a seat on one of the following volunteer trips departing around #GivingTuesday, the international day of giving kicking off the holiday season:

The Sandals Foundation, the philanthropic arm of Sandals and Beaches Resorts, is committed to improving the lives of its local communities, supporting schools, facilities and centres across eight islands in the Caribbean.

The Eltham Community Centre serves the rural area surrounding Ocho Rios region. Here, neighbours can gather for recreational activities and informative workshops, receive mentorship and gain access to free mental and dental care as well as spay and neuter services for animal clinics.

Volunteers on this trip will help paint, renovate and restore The Centre with upgrades to ensure it can continue to be a safe, healthy and inspiring space for both the young and elderly in the community.

#CheckInForGood to Help Atlantis Blue Project Foundation - Bahamas, Dec. 6-8, 2017 The Bahamas is home to one of the largest coral reefs in the world. Its sustainability is vital to the marine ecosystem as reefs provide food and shelter for a vast array of marine life in addition to protecting shorelines and preserving beaches.

Led by marine ecologist Dr. Craig Dahlgren of the Atlantis Blue Project Foundation, an organisation developing innovative ways to protect Bahamian waters and wildlife, volunteers on this trip will participate in an ongoing coral nursery project on Paradise Island and assist with harvesting and outplanting coral, in addition to activities at the dolphin sanctuary.

The first 2,000 entrants who #CheckInForGood will receive donation codes to donate to a charity of their choice at globalgiving.org/jetblue. Entrants who are selected as winners from the “standby” list for one of the volunteer trips will be notified of their eligibility on a rolling basis through November 20, 2017.

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Directors: Lilia Albert; Stephen Louis changed (see Tourism’s Coming of Age: The Millennial Traveller), but so has the industry itself. Technology has transformed the business of tourism in many ways, but with new opportunities comes new challenges (see Small Pond or Big Fish?

Airbnb in the Caribbean).

In this Special Tourism Edition of The STAR Businessweek, we’ll speak with industry specialists on the State of Tourism and what we can expect on Saint Lucia’s horizon.

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Accounting for over 13% of GDP, the Tourism & Hospitality industry is one of Saint Lucia’s most dynamic sectors. In 2013 alone, Saint Lucia won over 100 international destination tourism awards and despite a dampening in overall tourism expenditure, the island is still projecting modest growth in 2018 as several strategic initiatives from major resorts, travel partners, and the country’s new Tourism Authority begin to take effect.

While the future of Saint Lucia’s tourism industry is bright, growing pains should nevertheless be expected. Not only have travellers themselves

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© The Financial Times Limited [2017]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. Star Publishing Company is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation

EU WARNS 53 JURISDICTIONS OF TAX BLACKLIST THREAT

BY FT CORRESPONDENT

Cayman Islands is ranked 42nd according to the Global Financial Centres Index, a global ranking on the competitiveness of Offshore Financial Centres. London, New York, Singapore, Hong Kong and Tokyo are the top five ranked.

European officials have told 53 countries and territories that they risk being blacklisted as tax havens after the UK earlier delayed warnings to a dozen jurisdictions with ties to Britain.

In October Brussels advised 41 countries that they would be blacklisted unless they promised to change their tax rules, according to people close to the talks. But British concerns caused the EU to hold back similar warnings for 12

more jurisdictions including Bermuda, the Isle of Man and Cayman Islands — what one official called the “usual suspects”. London changed its stance late last week, two days before the Paradise Papers leak put the issue of global tax legislation back in the spotlight.

The European Council, made up of EU member states, started analysing non-EU countries last year to decide if they should be designated as tax havens, sending inquiry letters to 92 jurisdictions in

February after initial screening.

The council has set criteria for countries to avoid being labelled as tax havens. Its definition of fair tax rules says jurisdictions should not offer preferential tax measures or arrangements that enable companies to move profits to avoid tax. Countries should also meet transparency standards and implement anti profit-shifting guidelines set by the OECD. Countries that fail to meet the council’s criteria can avoid being blacklisted if they provide a political commitment and a specific plan to comply. Representatives from all 28 EU member states will need to approve the final list, which is expected to be published on 5 December.

Member state representatives are still debating the implications of being on the EU’s list, which will be updated annually.

A British government spokesman said: “The UK has led international efforts to prevent people from hiding their money abroad. We support the development of a common EU list of non-co-operative jurisdictions, and we are working constructively with our European partners towards finalising one by the end of 2017.”

Molly Scott Cato, a Green MEP and a member of the European Parliament’s Panama Papers committee, said: “Once again, the UK and its offshore territories are at the heart of things.”

She said Britain had to “clean up its act” and regulate the “legal limbo” of its overseas

territories if it wanted a positive trading relationship with the EU after Brexit.

The steps taken by the European Council come after criticism of a previous European Commission attempt to create a tax-haven blacklist for the EU. Published in June 2015, the commission’s list included 30 countries, composed of those that appeared on at least 10 member states’ individual blacklists. The list provoked a backlash for being unfair and arbitrary.

The current attempt by the council has also been criticised. Elena Gaita of Transparency International, a lobby group, said the council’s code of conduct group on business taxation, which is running the process, “is the most secretive council group — the council’s black box”.

She said blacklisting countries was “a political process” and that secrecy risked creating a list that was “far from objective and comprehensive”.

Of the 92 jurisdictions that were sent letters in February, 22 proved they were compliant with the EU demands. Eight said they would change their laws to comply, one is still being assessed and eight did not respond.

The rest failed to meet at least one criteria, according to people close to the process.

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The achievement of your financial goals and objectives is contingent on how effectively your wealth is built and managed. The first step is to talk to your financial and investment services provider regarding your financial priorities and the options available to grow and manage your assets. The next step is to devise an investment plan, in sync with your goals and objectives, which matches your investment profile with your “risk tolerance.” Risk tolerance levels are unique to each client and strongly influence how funds are invested. This is why it is very important to speak to your financial services representative. The typical process is as follows:

Investment services providers, like Bank of Saint Lucia Investment Banking Services, work with both equity debt and equity issuers and clients, to match the issuer’s needs with the client’s ideal for optimal returns for the given risk. The services offered include: Merchant Banking Services – tailored financing solutions f or projects in the following areas: Capital Market Feasibility & Advisory Services Arrangement and Structuring (Bonds, Equity, Syndications) Distribution and Management of the Issue

Assessment Phase Who are you and what is your investment experience?

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Brokerage/Capital Management Services – brokerage and trade execution services which include: Market-Making Equity and Fixed Income Trading Handling and Research Services Build your wealth by building strong relationships with your financial and investment services provider, and reap the rewards of your financial future.

Risk tolerance levels are unique to each client, and strongly influence how funds are invested.

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8

THE STAR BUSINESSWEEK

NOVEMBER 11, 2017

WWW.STLUCIASTAR.COM

MAKING

MOVES

SMEs CAN LEARN A THING OR TWO FROM THE SBDC!

C

BY KAYRA WILLIAMS, STAR BUSINESSWEEK CORRESPONDENT

urrently in the midst of a very active Business Month, observed annually in November, Barbara Innocent Charles is a woman on a mission. This week the Director of the Small Business Development Centre (SBDC) shared with us her 19-year journey within the Ministry of Commerce, serving as the head of the agency that not only provides assistance to micro and small businesses on-island but also helps turn the ideas of aspiring entrepreneurs into fully functioning businesses.

Director of the Small Business Development Centre, Barbara Innocent Charles.

WHAT IS THE SMALL BUSINESS DEVELOPMENT CENTRE? BARBARA: The Small Business Development

Centre is more widely known as the Small Enterprise Development Unit (SEDU). We have been a part of the Department of Commerce from inception, in 1996. Our focus has been to develop the entrepreneurial culture in Saint Lucia. Our doors are open to all persons: everyone who wishes to set up a small business or already has a small business and wants to improve and grow. We’re here for those people who’ve come to some stumbling block and need to find a solution. We are here to help businesses get started, and help those who have already started to flourish. Our target groups are school leavers, women, unemployed persons and anyone who has a business idea or a business in existence.

WHAT IS YOUR PROFESSIONAL BACKGROUND? HOW DID YOU BECOME A KEY MEMBER OF SBDC? BARBARA: I started with the SBDC at one of

the lowest levels: Business Development Officer 1. That was almost 19 years ago, when I returned from completing my Bachelor’s Degree in Business Administration and Marketing. Prior to that I’d worked with the tax department, and I have experience as an auditor. I also obtained an Associate Degree – it’s a double major, in Small Business Administration and Food Production and Processing - and an MSc in Development Studies.

I came into this very fresh, very green, but very eager to learn. I learned a lot along the way. I learnt on my own, through research and other activities, through more experienced colleagues, and attending training. The field of small business is so dynamic. Even though there may be two businesses who are doing the same thing, in the sense of offering the same service, the business model is always different. Some of the challenges may be the same, but again, other challenges are different. There is always something new to learn, either from the business, the business person themselves or the fact that as policies change on the global scope, you always have to look to see what’s next; what can we do to prepare the sector for what is coming? There’s never a dull moment! You always have to be thinking of new projects, new activities or other areas of knowledge that may need to be tapped into.

PLEASE CLARIFY THE FUNCTION OF SBDC VERSUS SEDU. BARBARA: To set the record straight, we have not done away with the name SEDU. The

SBDC, it’s really a model where we work closely with the private sector and academia to bring services to the business sector – to take them from idea to market. Many times agencies tend to go at it alone but we wanted to approach things in a more organised way. SEDU is the hub, and we have 13 partners on board. These include academia: the Sir Arthur Lewis Community College, The University of the West Indies, Monroe College; specialty agencies like the Bureau of Standards, the Ministry of Environmental Health, the Trade Export Promotion Agency (TEPA), National Competitiveness and Productivity Counsel (NCPC), as well as financial institutions such as the James Belgrave Micro Enterprise Development Fund (Belfund) and the Saint Lucia Development Bank. We make a deliberate effort to bring our resources together, to collaborate, as this is, after all, a nation with very limited resources.

ACCESS TO FINANCE IS OFTEN CITED AS THE MAIN CONTRIBUTOR TO THE PRIVATE SECTOR’S UNDERPERFORMANCE. HOW CAN THE SBDC ASSIST? BARBARA: When people call, their first question is usually, “How do I get finance?”

Within our unit, our mandate is not to provide finance but to develop and build that individual so they become more attractive to the financial institutions; they understand how to manage their finances; they’re more disciplined. So, at the end of the day, you get

people who are not just relying on government to do things for them but they understand other creative ways of solving their problems. Banks want the best for their clients but, at the same time, the client has to prove not just that the idea is viable but that they have capacity to implement the business idea. Banks are also managing other people’s money so they need to use it wisely.

That’s where the value of SBDC comes in.

HOW MUCH IS THE PUBLIC TAKING ADVANTAGE OF THE RESOURCES AND SERVICES THAT YOU PROVIDE? BARBARA: On a daily basis we have people coming in: persons who were referred to us, persons coming in for the first time. We do outreach in various communities; we go to schools and so on. If you’re talking about small business, there’s always someone who’s going to be doing it for the first time. We have found that no matter how much we promote our work, sometimes people don’t approach us until they get into a crisis. Maybe when someone falls into unemployment, that would be the time when they’re thinking about business. At the time when they were gainfully employed, they didn’t think about starting a business. Now, when we go to the schools, we push entrepreneurship as a career option. There are just not enough jobs available to give everyone so they have to think about self-employment, and think about it very early, because then they can start preparing and saving towards it.

WHAT KEY PERFORMANCE INDICATORS DOES THE SBDC USE? BARBARA: An important metric relates to

the formalisation of businesses. We monitor how many clients we have helped register their business name or incorporate their business. With a registered business the client can open a bank account in the business’s name, among other things.

Approximately 75% of our clients operate sole proprietorships. We also look at growth in our clients. I can proudly say that for the last three years, every year we’ve had an increase in the number of people coming for assistance, and that is due to the outreach, our partners, dedicated staff and the good quality work that we do.

TELL US ABOUT RECENT SUCCESSES OF THE SBDC. BARBARA: For the last three years or so, our clients have been able to capture the Young

Entrepreneur of the Year award through the Saint Lucia Business Awards, organised by the Chamber of Commerce. This year we collaborated with the Toastmasters to help a client improve his sales pitch in preparation for an innovation competition in Mexico. SEDU/ SBDC also partnered with the Saint Lucia Hotel and Tourism Association (SLHTA) in 2016 to open its membership to SBDC clients at a concessionary rate. We were also instrumental in preparing the MSE sector for the implementation of VAT through the ‘VAT Preparedness Training Programme’ in 2012. We have played a role in the development of various sectors, including the Construction, Early Childhood Care and Education (ECCE) sector, Beauty and Wellness, Textile, Agro processing, etc.

WHERE DO YOU SEE ECONOMIC OPPORTUNITIES IN SAINT LUCIA IN THE NEXT FEW YEARS? BARBARA: It’s all e-business. A lot of businesses now have to have an online presence.

Regardless of what you’re doing, being able to facilitate e-payments and so on, we recognize that, and one of the things the government has been doing is the Business Month, which we started in 2015. The various activities are meant to help the general public understand, and to prepare for the years ahead. One such activity is the Digital Marketing Symposium, done in collaboration with TEPA. It’s all meant to help small business developers prepare and look beyond what they’re doing today.

HOW WOULD YOU DESCRIBE ‘DOING BUSINESS IN SAINT LUCIA’?

BARBARA: I’ve seen us make a lot of strides, and a lot of progress in taking certain

processes: something that would normally take ten days, it’s now down to five days, or maybe two. This is something we continue to work on in the process of improving the ease of doing business in Saint Lucia.

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