Regarding policies for production transformation, Barbados is prioritising key strategic sectors for its sustainable development strategy. Tourism has been identified as the top priority. The main objectives include improving air transport, strengthening the operational and regulatory framework for aviation and tourism and implementing information systems for management and regulation, with the support of the government, the private sector and international organisations such as the Inter-American Development Bank. In second place, the energy transition is guided by the Barbados National Energy Policy 2019-2030, which aims to achieve net-zero emissions by 2035 through clean technologies, electrification of transport, and efficiency in buildings and agriculture, with investments estimated at USD 9.5 billion and a governance structure co-ordinated by various government institutions and international partners. Third, the agricultural sector prioritises sustainable agriculture, food security and agribusiness, implementing a digital agricultural framework and climate-smart practices, with technical and financial support from international and regional agencies. In addition, the Agriculture and Fisheries Disaster Management Plan 2025 takes a comprehensive approach to protect food security and the environment. Fourth, the blue economy sector promotes science-based marine development through coastal upgrades, marine asset valuation, and digital shipping systems to enhance sustainability and compliance.
Regarding public financing mechanisms for production transformation, they are mainly articulated through corporate tax incentives and business development funds. Tax instruments include corporate income tax credits, which function as tax expenditures (uncollected tax revenues) and take the form of deductions from the tax base or credits against tax due. These incentives can be income-based or expenditure-based and are applied, for example, to the promotion of research and development, employment generation, tourism development and cultural industries. Their impact is monitored through corporate tax returns under the Income Tax Act. There are also public financial institutions such as the Micro, Small and Medium Enterprises (MSME) Development Fund and the Enterprise Growth Fund under the Amended National MSME Development Policy 2025, that promotes the Caribbean Community (CARICOM) Single Market integration, empowering persons with disabilities, and leveraging artificial intelligence and e-commerce, for example, GovTech Barbados Ltd, to expand market access. The policy is anchored on four thematic pillars: business continuity and resilience, sustainability, digital transformation, and innovation.
In terms of international partnerships for production transformation, Barbados participates in the Joint Initiative on Investment Facilitation for Development Agreement under the World Trade Organization, which sets standards to make investment regulations more transparent and efficient, promoting sustainability and strengthening the ability to attract high-quality foreign direct investment. This initiative, led by Invest Barbados, the Ministry of Foreign Affairs and Business Barbados, has the potential to foster innovation and diversify the investment base in the economy. In parallel, Barbados is regionally integrated through CARICOM and bilateral agreements with LAC countries, which facilitate the free movement of goods, services, capital and skilled labour, creating a favourable environment for production transformation.