Two Caricom leaders have made a pitch for more investment in the region, at the Commonwealth business forum in Trinidad.

Prime Ministers David Thompson of Barbados and Tillman Thomas of Grenada told the gathering of 1,000 business leaders from the Commonwealth grouping that the region desperately needs investment, and that regional states are attractive places for foreign direct investment (FDI).

That kind of business enterprise in the Caribbean has plummeted as a result of the global financial crisis.

Thomas made his argument in light of the impact of the international recession and the dramatic slowdown in economic activities including tourism.

He told the business delegates that with the income of regional states falling since the recession, debt payments are swallowing up large portions of the gross domestic product.

“Such economic impacts create significant setbacks to our efforts to develop and achieve the millennium development goals,” Thomas said.

In his presentation to the Commonwealth business leaders, Barbados’ Prime Minister David Thompson said the region’s economic conditions are so bad that

a number of Caricom governments have approached the International Monetary Fund (IMF).

Thompson also offered potential investors the benefits of what he said was the attractive option of the Caribbean Single Market and Economy (CSME).

“Barbados is of the view that our region uniquely positions itself to provide a gateway into the Americas and beyond.

“Businesses, whether incorporated and/or registered in the Caribbean Community, will be able to operate anywhere in the Caribbean and beyond,” he said.

The business leaders were also told that investment across the Commonwealth holds special benefits because of the long association of the states in the grouping.

Tourism investment

In the area of tourism, regional industry officials have been encouraged to start planning for a rebound of the global economy.

Tourist arrivals have declined sharply since the onset of the financial crisis.

But Nobel laureate in economics, Professor Joseph Stiglitz, who is attending the business forum, said he is confident that activity in the industry will pick up once the global economy improves.

“Everybody expects that we will emerge from this at some point and investment projects often take many years,” Professor Stiglitz said.

“So it does mean that it’s unlikely that you will be able to get investment in tourism in the very short run. But it doesn’t preclude the beginning of discussion that would lead to investments over the longer term.”

That’s a view shared by tourism economist Dr Auliana Poon, who said that investors should look beyond the financial slump.

“We can’t just see investors coming from the international (market). we have to see local companies investing as well … and they’re using this downturn to prepare for the upturn, which is definitely going to come,” Dr Poon said.

The four-day business forum is being held ahead of the Commonwealth Heads of Government meeting from 27-29 November.

(Courtesy of BBC Caribbean)