BERT targets productivity boost
With labour productivity growth averaging just 0.8 per cent annually since 2018, Government is seeking to boost it under the Barbados Economic Recovery and Transformation plan 2026 (BERT 2026).
Enhancing productivity and competitiveness is Pillar 1 under BERT 2026 and the plan is to raise economy-wide productivity through digital public infrastructure, build new export engines through innovation and reindustrialisation, and strengthen the institutional capacity to deliver complex reforms
at speed.
The new economic reform plan flagged productivity constraints, stating that “the foundation of long-term economic growth is productivity, and in this area, Barbados’ performance remains suboptimal”.
Government is planning to establish a small, empowered Productivity Delivery Unit, operating on a GovTech-style delivery model “to close the implementation capacity gap identified across high-friction business and citizen processes”.
“Labour productivity growth has averaged just 0.8 per cent per annum since 2018, reflecting persistent inefficiencies in public administration, low technological diffusion in key industries, and skills mismatches in the labour market,” the economic reform document noted.
“Without a decisive productivity agenda, including investments in innovation, digital skills, and regulatory streamlining, Barbados risks reverting to a low-growth path despite macroeconomic stabilisation.”
The BERT 2026 plan said that raising productivity was “the single most important lever for unlocking higher, sustainable growth in Barbados”.
The new Productivity Delivery Unit will focus on “end-to-end process redesign, automation, and key performance indicators reporting across priority journeys, including permits, customs clearance, construction approvals, company registration, and work permits”.
Its mandate will be to accelerate execution, improve service outcomes, and ensure that productivity reforms translate into measurable results.
Other key reforms outlined under the productivity and competitiveness pillar included “full operationalisation of the Barbados Electronic Single Window to reduce trade friction and processing times.
Other plans were:
Implementation of the second phase of Business Barbados modernisation, merging business registration, payment, and verification processes into a single digital platform.
Expansion of the Trusted Trader Programme and digitisation of customs and logistics infrastructure.
Strengthening of the Investment Facilitation Centre and the launch of the Barbados Investment Plan, which targets sectors with high growth and export potential such as logistics, high-end tourism, agro-processing, blue economy industries, and renewable energy services.
Implementation of a Single Digital ID and Business Identity System, supported by legislative and cybersecurity reforms.
Support for innovation and digital entrepreneurship through Business Barbados, the newly launched state-owned enterprise tasked with championing service delivery excellence in business registration, licensing, and technical assistance.
Establishment of a Barbados Global Research and Development Hub Programme aimed at attracting frontier research partnerships and converting innovation into patents, investable firms, and export revenues.
The BERT 2026 plan also targets improved productivity via workforce health and wellness.
“Productivity is not only a function of technology and regulation but also of a healthy and resilient workforce. Rising levels of illness and absenteeism erode output and increase social insurance costs, with NIS sickness benefits alone amounting to $21 million in just six months. BERT 2026 will therefore integrate health and wellness as a core productivity driver,” it stated.
“This will include workplace wellness initiatives, preventive health care programmes, and targeted policies to reduce absenteeism and prolong active working lives. The Ministries of Health and Labour will collaborate to track health indicators and report on their impact on national productivity outcomes.” (SC)
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