Caribbean may be attracting wrong investors


BRIDGETOWN, Barbados, November 22, 2007 - Texas-born billionaire Sir Allen Stanford has suggested that the Caribbean is attracting the wrong kind of investors to its shores, while at the same time making it difficult for the right ones to bring their money here.

Speaking at the recent inaugural 'Caribbean International Leadership Summit: Journeying Towards Global Competitiveness' in Barbados, the Chairman and CEO of the Stanford Financial Group of companies argued that the region offers unique and world-class opportunities for investors who understand the challenges of dealing with micro-states and their efforts to further their economic and social development. But he noted that the region must create a better investment climate.

Sir Allen, whose group has invested more than US$1.5 billion in the Caribbean over the past 24 years and employs over 3,000 CARICOM nationals, argued that for far too long the region has attracted "individuals and corporations who come to our debt ridden, small island nations desperate for foreign investment and in simple terms, rob them."

"The reality is that hardly any investor is properly vetted prior to negotiations with a government, and once a deal is made there are seldom any provisions put in place to ensure performance and adherence to commitments made by the investor during the negotiations."

"We have got to get serious about attracting serious and legitimate investors," he urged.

Sir Allen added that the type of investors which the region are faced with hurdles which could prevent them from getting involved in business in the Caribbean.

He highlighted these difficulties inconsistent regulations which exist from island to island, uneven enforcement of existing regulations, rampant protectionism, stifling value-added taxes, different work rules and labor policies that are unrealistic and politically driven.

Sir Allen further cautioned the Caribbean against focusing primarily on the tourism sector when it comes to investment.

"I believe we need to fully utilise and market the legal structure, tax and investment incentives, low labor costs, geographic location, global communications, air travel infrastructure, and the fact that in this volatile world in which we live, the Caribbean is still one of the few places in the world where it is relatively safe to live, work and travel to," Sir Allen told those attending the summit.

The event hosted by the University of West Indies brought together regional and international speakers and was comprised mainly of CEOs, boards of directors, executive management from private and public- sector organisations, business owners, strategists, pioneers and students of leadership from throughout the Caribbean and other parts of the world.

Other speakers included Arthur Lok Jack, founder benefactor of the UWI Graduate School of Business in Trinidad; Margaret Young, Managing Partner and CEO of the Mill Square Group and a graduate of Harvard Business School; and former GE Chairman and CEO Jack Welch

Business: News in the Caribbean - Caribbean360.com