World Bank report gives low ratings to Belize

The sustained cane farmers strike in the sugar belt continues to cripple one of the most vital sectors of the economy in respect of hard currency earnings and employment, direct and otherwise. And there is more bad economic news to report that can potentially magnify the country’s fiscal woes. This comes from a recently released report from the World Bank which features news on the investment climate in various countries. The WB Report quote “doing Business 2009” offers a detailed profile of Belize as a destination for direct foreign investment examining ten pivotal areas of doing business. It looks at regulations that both enhance and constrain business activity from starting a business, to permits, enforcing contracts to winding down a business.

The Report covers a hundred and eighty-one economies, including thirty-two from Latin America and the Caribbean, the rest in Africa, Eastern Europe, Asia and the Pacific and the Middle East. Several worrisome issues stand out in respect of Doing Business in Belize. In one section, in particular on “Enforcing Contracts,” which has been a hot button issue in respect of the investment climate, Belize is ranked way down at a dismal hundred and sixth-eighth out of the one hundred and eighty-one countries surveyed, only behind Suriname in this hemisphere. This can’t be encouraging news for investors. It is well known that the current government has reneged on contractual obligations and understandings including agreements with such high profile names as Belize Telemedia, Belize Bank, B.E.L. and the oil company, B.N.S.

All in all, Belize’s overall ranking is lower than regional competitors like Jamaica. And with Prime Minister Barrow counting on the World Bank funding as part of the government’s so called stimulus package, the comprehensive review of Doing Business in Belize should find attuned audience in Belmopan.