The Barbadian success story: a case study of economic development in Barbados

Since independence, Barbados has enjoyed consistent levels of economic success beyond what is typical for a Small Island Developing State (SIDS). This case study investigates the causes of this success and identifies core principles which can be used as a model for SIDSs aiming to increase their economic growth. A combination of good governance; strong taxation treaties and government regulation; and a focus on niche luxury markets are found to have created the foundation of success in Barbados. These factors are shown to have led to the safe and stable environment on the island which has attracted investors and allowed economic activity to thrive. Following the analysis of the causes of economic success, the case study also evaluates the position of the Barbadian economy moving forward and highlights areas that require attention if growth is to continue.