Recent Events

In 1986 the DLP, still led by Errol Barrow, won a decisive election victory, maintaining their majority in the 1991 elections. This was despite a breakaway movement by DLP dissidents who formed a new National Democratic Party (NDP) but failed to win any seats in the 1991 elections. Following the election, the government introduced severe economic austerity measures to combat imminent economic crisis, caused by an overvalued currency and a fall in sugar and tourism earnings. Unemployment rose sharply to 27% by 1993, damaging the DLP?s standing as the workers? party.

The last general election, held in September 1994 following a no-confidence vote which went against Prime Minister Erskine Sandiford, led to the defeat of the DLP and brought to power a BLP government headed by Owen Arthur. The BLP won 19 seats (48.3% of the vote), the DLP eight and NDP one.

The BLP faced strong opposition to its introduction of VAT in 1997, which replaced a number of indirect taxes, as it was felt that this tax would hurt the poor, though the BLP increased pensions and welfare benefits to compensate. The public sector pay freeze also ended.

The DLP increased its strength in 1997. It took a seat from the BLP at a by-election, a former BLP cabinet minister defected to them, and two NDP MPs rejoined the DLP. (Of the 25 seats contested by the NDP in 1995, nine were held with majorities of less than the combined DLP and NDP votes.) However, the BLP still had a strong parliamentary majority.

In September 1996, Barbados and the US signed an agreement on equipment and training in anti-narcotics activities, but there was considerable delay over the signing of the Maritime Counter Drugs Operations (?Shiprider?) agreement, which would allow US coastguards access to Barbados?s territorial waters. Barbados does not have a major drugs problem, and took the stand over the principle of territorial sovereignty. The agreement was revised, and Barbados gave its approval in May 1997. The Lomé Agreement ends in 2002; the approach of this is leading to discussion of various possible preferential trading agreements, including smaller groupings and more reciprocity. ACP-EU negotiations are currently taking place. The Association of Caribbean States has agreed to establish a regional integration fund, covering trade, transport and tourism. A Caricom-Central America agreement on trade is also on the table.

Barbados has announced that, because of the high legal costs of accession, it will not be seeking to join NAFTA. The Caricom summit of February 1997 has resulted in a commitment to launching a Caribbean Single Market & Economy (SME) by 1999.