IV.  Political Environment

Barbados has a cordial, long-standing relationship with the United
States.  Barbados has sent many of its citizens to the U.S. since colonial
times, where they have prospered and contributed to the history of the
United States.  As a democratic country and a member of the British
Commonwealth, many of Barbados' foreign policy goals coincide with our
own, although not on all counts.  Barbados is also an active member of
the Caribbean Community (CARICOM), with which it sometimes votes as a
bloc with other Caribbean nations in international fora.

Major issues affecting the business climate in Barbados include the
taxation of business and incentives given to business.  Both of the major
political parties -- the Democratic Labour Party (currently, the
Government) and the Barbados Labour Party (the opposition) -- are
pro-business, although they may have differences in approach to
macroeconomic policy.

Barbados is a parliamentary democracy.  The British monarch is the Head
of State of Barbados; the monarch is represented by a governor-general
(currently, Dame Nita Barrow).  Executive authority is vested in the
prime minister and cabinet (the Privy Council), which is collectively
responsible to the Parliament.  The Prime Minister is usually the leader
of the majority party in the House of Assembly, although s/he is
appointed by the governor-general as the member of the House of
Assembly best able to command the support of the majority of the
members.  The Prime Minister usually selects a cabinet from his party
members in the legislature.  The bicameral Parliament consists of the
House of Assembly (the lower house) with 28 elected members and the
Senate (the upper house) with 21 members appointed by the
governor-general.  In the Senate, 12 of the 21 members are appointed on
the advice of the Prime Minister, two on the advice of the Opposition
leader, and seven at the governor-general's discretion.  The normal term
of office is five years, although the ruling party may call elections at any
time to seek a new mandate.  The ruling Democratic Labour Party has
called elections for September 6, 1994.