Declining population could impact taxes collection; market ‘vibrancy’

Officials are giving the assurance that several factors will be taken into consideration as Barbados uses various methods to increase its population over the next several years.

Chairperson of the Barbados National Population Commission Roberta Clarke gave the indication on Tuesday as she engaged journalists in a a virtual media orientation on the just released draft Barbados Population Policy.

Based on the goal, the Commission notes that the country would need to add about 571 people per month over the next 27 years to reach its ideal population size. According to the report the aim is to grow the Barbados population by 185 000 by the year 2050. 

The draft policy proposes several measures to achieve the growth including managed migration, measures to retain and repatriate Barbadians and providing child benefit subsidies especially for low-income single parents and subsidising  housing for low-income, single-parent households.

Clarke told journalists that in coming up with the recommendations, the commission had given thought to the various implications that the declining and changing population structure could have on the country’s development in the coming years.

“Certainly we see a decline in the number of young persons entering the labour market. That may have some implications for the vibrancy of the market; also decline in productivity and creativity, things that come with the youthful population,” she said.

She also said there would also be declines in taxation if the labour force is also declining.

“I would imagine, but not completely so, you could expect to see declines in consumption. So even your Value Added Tax may also decline with a decline in population,” added Clarke.

She gave the assurance that as officials move to increase the population in Barbados, consideration was being given to ensuring little to no pollution or depletion of environmental resources, maintenance of a high standard of living, as well as a policy that was in keeping with the island’s Constitution.

Clarke also indicated that once accepted, implementation of the Barbados Population Policy, which is currently available on the website of the Government Information Service (GIS), would be carried out in tandem with other development and social policies.

“Having said that, we think that the population policy can be best implemented if there are three cross-cutting priorities – education reform, equitable sharing of the responsibilities for care and environmental management,” said Clarke.

She noted that the Barbados Family Planning Association representatives have been involved in the process leading up to the population draft policy.

“They did attend the consultations and they also understand the trends and the implications of the trends,” she said.

The Barbados National Population Commission was established in January 2019 to produce an analytical paper on the current and projected size and structure of the population and to develop a draft national population policy to identify goals and strategies to address population-related impediments to achieving short, medium and long-term social, economic and environmental objectives.

During the discussion with the media, members of the commission said it was important for Barbadians to “be very careful” how they analyse the situation.

Starting the week of March 20, 2023, officials will start a series of public consultations, giving residents an opportunity to comment on the draft policy and put forward recommendations. (MM)