• Foreword

  Page 3

• Table of Contents

  Page 5

• + Part I. Antigua and Barbuda

  Page 7

  • Executive Summary

    Page 9

  • + Chapter 1. FDI Trends

    Page 15

    • + 1.1. FDI inflows

      Page 16

      • Table 1.1. FDI inflows, 1998-2003

        Page 16

    • + 1.2. Country of origin and destination

      Page 17

      • Table 1.2. FDI inflows by country of origin, 1998-2003

        Page 17

    • + 1.3. Distribution by economic activity

      Page 17

      • + Tourism

        Page 17

        • Table 1.3. FDI inflows by sector 1998-2003

          Page 18

      • Financial Services

        Page 19

      • Telecommunications

        Page 19

      • Health Services

        Page 19

      • Manufacturing

        Page 19

      • Agriculture

        Page 20

    • + 1.4. Main investors

      Page 20

      • Table 1.4. Antigua and Barbuda’s twelve largest investors based on sales’ volume

        Page 21

    • + 1.5. Main explanatory factors for FDI

      Page 22

      • Market-seeking FDI in Antigua and Barbuda

        Page 22

      • Natural-resource seeking FDI in Antigua and Barbuda

        Page 24

      • Efficiency-seeking FDI in Antigua and Barbuda

        Page 24

    • 1.6. Economic impact and linkages with the local economy

      Page 25

    • 1.7. Future perspectives

      Page 26

  • + Chapter 2. Investment Environment

    Page 29

    • + 2.1. Structure of the economy

      Page 30

      • Table 2.1. Gross domestic product by sector in producers’ values at constant 1990 price

        Page 31

      • Table 2.2. Debt stock selected indicators

        Page 32

      • Table 2.3. Balance of payments as a percentage of GDP

        Page 33

      • Table 2.4. Current account deficit in absolute terms and relative to GDP and direct investment

        Page 33

    • + 2.2. Infrastructure

      Page 33

      • Road network

        Page 33

      • Naval transport infrastructure

        Page 34

      • Air transport infrastructure

        Page 34

      • Infrastructure in telecommunications

        Page 35

      • Electricity and power

        Page 35

      • Water generation and disposal

        Page 36

    • + 2.3. Human capital

      Page 36

      • Table 2.5. Central government employment 2002

        Page 36

    • 2.4. Public governance: transparency, integrity, and the rule of law

      Page 38

    • + 2.5. Trade regime

      Page 39

      • Table 2.6. Ranks imports for the 1990-2003 period

        Page 40

      • Table 2.7. Top 10 destinations (countries) of exports

        Page 41

      • Table 2.8. Top 10 sources of imports

        Page 41

    • 2.6. Investment regime

      Page 41

    • 2.7. Movement of foreign currencies

      Page 43

  • + Chapter 3. Investors’ Perceptions

    Page 45

    • Table 3.1. Factors influencing investment

      Page 46

    • Table 3.2. Quality of public services

      Page 47

    • Table 3.3. Degree of difficulty in starting up and operating a company

      Page 48

    • 3.1. Recommendations

      Page 48

  • Notes

    Page 50

• + Part II. Grenada

  Page 53

  • Executive Summary

    Page 54

  • + Chapter 1. FDI Trends

    Page 61

    • + 1.1. FDI inflows

      Page 62

      • Table 1.1. FDI inflows, 1998-2003

        Page 62

    • + 1.2. Country of origin and destination

      Page 62

      • Table 1.2. FDI inflows by country of origin, 2001-2004 as collated by GIDC (manufacturing, tourism and other services)

        Page 63

    • + 1.3. Distribution by economic activity

      Page 63

      • Tourism

        Page 63

      • Telecommunications

        Page 64

      • Offshore education in health services

        Page 65

      • Yachting

        Page 65

      • Manufacturing

        Page 65

      • Agriculture

        Page 65

    • + 1.4. Main investors

      Page 66

      • Table 1.3. Grenada’s largest investors, based on turnover

        Page 67

    • 1.5. Economic impact and linkages with the local economy

      Page 67

    • 1.6. Future perspectives

      Page 67

  • + Chapter 2. Investment Environment

    Page 69

    • + 2.1. Structure of the economy

      Page 70

      • Table 2.1. Grenada’s gross domestic product

        Page 71

      • Table 2.2. External debt outstanding (USD mn)

        Page 71

    • + 2.2. Infrastructure

      Page 71

      • Road network

        Page 72

      • Sea transport infrastructure

        Page 72

      • Air transport infrastructure

        Page 72

      • Infrastructure in telecommunications

        Page 72

      • Electricity and power

        Page 72

      • Water generation and solid waste disposal

        Page 73

    • 2.3. Human capital

      Page 73

    • 2.4. Public governance: transparency, integrity, and the rule of law

      Page 74

    • + 2.5. Trade regime

      Page 74

      • Trade agreements

        Page 74

      • EU Banana Regime

        Page 76

      • + Trade data

        Page 77

        • Table 2.3. Top export partners (2003)

          Page 77

        • Table 2.4. Top import partners (2003)

          Page 77

    • + 2.6. Investment regime

      Page 77

      • Incentives

        Page 78

      • Bilateral investment treaties

        Page 80

      • Starting a business

        Page 81

      • Investment promotion

        Page 81

      • Movement of foreign currencies

        Page 82

  • + Chapter 3. Investors’ Perceptions

    Page 83

    • 3.1. Lack of highly skilled labour

      Page 84

    • 3.2. High cost and lack of access to finance

      Page 85

    • 3.3. High tax burden

      Page 85

    • 3.4. Infrastructure

      Page 85

    • 3.5. Customs regulations

      Page 86

    • 3.6. Recommendations

      Page 86

  • Notes

    Page 87

• + Part III. St. Lucia

  Page 89

  • Executive Summary

    Page 91

  • + Chapter 1. FDI Trends

    Page 99

    • + 1.1. FDI inflows

      Page 100

      • Table 1.1. FDI inflows in million of USD, recent years

        Page 100

    • + 1.2. Country of origin and destination

      Page 100

      • Table 1.2. FDI inflows by country of origin, 2000-2003

        Page 100

    • + 1.3. Distribution by economic activity

      Page 101

      • Tourism and hotel development

        Page 101

      • Telecommunications

        Page 102

      • Offshore education sector in health services

        Page 102

      • Wellness and trade in health services

        Page 102

      • Financial services

        Page 102

      • Manufacturing

        Page 103

    • 1.4. Main investors

      Page 103

    • 1.5. Economic impact and linkages with the local economy

      Page 103

    • 1.6. Future perspectives

      Page 104

  • + Chapter 2. Investment Environment

    Page 105

    • + 2.1. Structure of the economy

      Page 106

      • Table 2.1. St. Lucia’s gross domestic product

        Page 106

      • Table 2.2. External debt outstanding (USD mn)

        Page 107

    • + 2.2. Infrastructure

      Page 107

      • Road and rail

        Page 107

      • Air transport infrastructure

        Page 108

      • Naval transport infrastructure

        Page 108

      • Telecommunications

        Page 108

      • Electricity

        Page 109

      • Water

        Page 109

    • 2.3. Human capital

      Page 109

    • 2.4. Public governance: transparency, integrity, and the rule of law

      Page 110

    • + 2.5. Trade regime

      Page 111

      • Trade agreements

        Page 111

      • EU banana regime

        Page 113

      • + Trade data

        Page 114

        • Table 2.3. St. Lucia: direction of trade

          Page 114

    • + 2.6. Investment regime

      Page 115

      • Incentives

        Page 117

      • Bilateral investment treaties and double taxation agreements

        Page 118

      • Movement of foreign currencies

        Page 118

  • + Chapter 3. Investors’ Perceptions

    Page 119

    • 3.1. Introduction

      Page 120

    • 3.2. Survey methodology

      Page 120

    • + 3.3. Businesses surveyed

      Page 120

      • Table 3.1. Businesses surveyed

        Page 120

    • + 3.4. General perception of St. Lucia’s investment climate

      Page 121

      • Table 3.2. Attractiveness of investment climate

        Page 121

    • + 3.5. St. Lucia’s investment climate compared to Central America and the Caribbean

      Page 121

      • Table 3.3. St. Lucia versus Central America and the Caribbean

        Page 122

    • + 3.6. Market for products/services

      Page 122

      • + 3.6.1. Local market

        Page 122

        • Table 3.4. Local market

          Page 122

      • + 3.6.2. Export market

        Page 122

        • Table 3.5. Export market

          Page 123

      • + 3.6.3. Market access

        Page 123

        • Table 3.6. Market access

          Page 123

      • 3.6.4. Competition

        Page 123

      • + 3.6.5. Competitive restrictions to businesses

        Page 123

        • Table 3.7. Restrictions to company competing with other in local and international markets

          Page 124

    • + 3.7. Costs of production

      Page 124

      • Table 3.8. Costs of production

        Page 124

      • + 3.7.1. Labour

        Page 125

        • Table 3.9. Labour

          Page 125

    • + 3.8. Quality of infrastructure

      Page 125

      • + 3.8.1. Infrastructure

        Page 125

        • Table 3.10. Quality of infrastructure

          Page 126

      • + 3.8.2. Shortages

        Page 126

        • Table 3.11. Shortages

          Page 126

    • + 3.9. Quality of public services

      Page 127

      • Table 3.12. Quality of public services

        Page 127

    • + 3.10. Environment

      Page 127

      • + 3.10.1. Political environment

        Page 127

        • Table 3.13. Political stability

          Page 128

      • + 3.10.2. Economic environment

        Page 128

        • Table 3.14. Macroeconomic environment

          Page 128

      • + 3.10.3. Social environment

        Page 128

        • Table 3.15. Social environment

          Page 129

    • 3.11. Legal and constitutional framework

      Page 129

    • + 3.12. Government’s policies/attitude towards businesses and investment

      Page 129

      • 3.12.1. Business policies

        Page 129

      • + 3.12.2. Predictability of changes in policy

        Page 129

        • Table 3.16. Legal and constitutional framework

          Page 130

        • Table 3.17. Government policies/attitude towards investment

          Page 131

        • Table 3.18. Predictability of changes in policy

          Page 131

        • Table 3.19. Predictability of changes in the following:

          Page 131

    • + 3.13. Administrative barriers to investment

      Page 131

      • Table 3.20. Administrative barriers to investment

        Page 132

    • + 3.14. Difficulties in starting and operating businesses

      Page 132

      • Table 3.21. Degree of difficulty to start and operate a business

        Page 133

    • + 3.15. Business integrity

      Page 133

      • Table 3.22. Business integrity

        Page 134

    • 3.16. Summary

      Page 134

  • Notes

    Page 136

These reports provide a factual assessment of investment conditions existing in each subject country, including information on FDI inflows since 1998, a sectoral analysis of the inflows, an analysis of the main investors, an assessment oftheeconomic and governanceenvironment, an assessment of investors' perceptions, and a series of recommendations for each country.They offer a unique set of detailed information which should be of interest to all those concerned by the development of investment opportunities in the region. The reports are intended to be used by the countries involved as a roadmap for developing and implementing their agenda for investment policy reform. This volume contains the reports completed for Antigua and Barbuda, Grenada and St. Lucia.