Caribbean economies continue to rely on foreign direct investment in the development process, and welcome investments that are sensitive to local concerns and to ethical considerations.

This was the thrust of a special presentation made by Professor Stephen Vasciannie at a forum titled ‘Doing Business in the Caribbean: Ethical Responses in the Corporate World’ held at Brooklyn College, New York, recently.

Professor Vasciannie, who served as Jamaica’s ambassador to the United States of America between 2012 and 2015, emphasised in his presentation that investors in the Caribbean should be aware of certain general considerations. These include the English language connection, locational advantages, commitment to investment success, and acknowledgement of the investor’s interest in profit maximisation.

In Vasciannie’s opinion, Caribbean countries are committed to encouraging investment inflows because investment in small, underdeveloped economies promoted employment, enhances the tax base, and prompts efficiency improvements. All these factors contribute to economic growth.

At the same time, Vasciannie noted that investors need to be aware of bureaucratic challenges to investment in the Caribbean, as highlighted, for instance, in the World Bank’ Doing Business Report on particular countries.

In the case of Jamaica, the Doing Business Report for 2014 had placed the country among the top 60 in the world, and had highlighted that Jamaica was the second-best place in the world to obtain credit.

On the other hand, the report had also noted problems for businesses such as obtaining electricity, enforcing contracts, paying taxes, and registering property.

In his wide-ranging presentation, Vasciannie reiterated that both foreign and local investors have a duty to ensure ethical behaviour. Investors, he said, should behave with integrity and promote trust and confidence among all stakeholders; they should be fair and honest in their treatment of customers, workers and suppliers; they should recall that the Caribbean historical experience has involved exploitation on a large scale, and so they should be watchful not to repeat errors from the past.

In some respects, foreign and local investors — while remaining sensitive to sovereignty concerns — could provide leadership in local economies. They could, for example, promote racial, gender and political diversity at the workplace, which he said has happened in some cases.

Similarly, Vasciannie said, investors should be exemplars in the payment of taxes, in respecting environmental laws, and in respecting disclosure requirements in law.

Vasciannie offered commendation to investors who exercised leadership in a variety of welfare projects in the Caribbean, especially in areas such as education, health and sports.

“These contributions, together with leadership in areas such as assisting non-governmental organisations, advancing free expression, and promoting linkages, all affirm that investment is central to economic development throughout the Caribbean,” Vasciannie concluded.