by Brian Francis

BY ANY STANDARD DEFINITION, "business environment" refers to the social, cultural, legal, economic and political environment in which business functions. Logically, therefore, business environments would influence organisational decisions, strategies, processes, policies, efficiencies, and performances.

As important as the other aspects of the business environment are, in my considered opinion, the political and legal environments are probably the most critical.

I say this specifically in relation to the English-speaking Caribbean Community (CARICOM) countries, where there is little real distinction between the three major arms of government – executive, judiciary and legislative. Hence, for example, the laws that impinge on businesses are significantly influenced by political processes in the various countries.

What's more, the political environment embraces, inter alia, regulatory practice, bureaucracy, taxes, government spending, political corruption, public works programmes, labour-market regulation, policy predictability, property rights, contract enforcement, regulations governing the establishment of businesses, bankruptcy, competition law and fair trading practices. Therefore it is not difficult to locate the political environment at the centre of the business environment, given its influence on all the other major components.

Indubitably, the wind of change is sweeping across the CARICOM political spectrum. We have already witnessed several incumbents losing their reign in Barbados, Belize, The Bahamas, Jamaica and St Lucia. The philosophical divide between the two major political parties in all CARICOM-member countries is for the most part blurred.

However, from time to time we do see some drastic shifts in policies when new administrations assume power.

For example, in St Lucia we witnessed a recent change in foreign strategy with respect to the one-China policy. In countries such as Antigua and Barbuda, St Kitts-Nevis and Grenada, income-tax policies are different from what previous administrations practised.

Quality of life

That said, it is wise, then, to expect that the outcome of a general election will have certain implications for the environment within which business functions. As we exercise our constitutional right to vote as citizens or residents, we must recognise that the choices we make will no doubt ultimately determine the quality of life we enjoy.

Within the wider CARICOM context, election outcomes can have long-lasting effects on our regional integration efforts, especially in light of recent developments pertaining to issues such as ALBA and the one-China policy. Some countries seem determined to pursue independent policies on critical matters based on perceived benefits to be derived therefrom.

As countries such as Antigua and Barbuda, Grenada and St Kitts-Nevis prepare for upcoming elections, the electorate will be called upon to make decisions that have the potential to significantly change business environments in CARICOM. And no amount of "idle talk" and political rhetoric should
be allowed to unduly influence peoples' voting decisions.

So when, for example, Grenada's Prime Minister Mitchell expresses confidence in his ability to withstand the evidently forceful wind of political change sweeping across the region and, therefore, retains the government after a general election constitutionally due by February 2009 on the basis that "there is no David Thompson or Democratic Labour Party in Grenada," I wish to remind Prime Minister Mitchell that by his own sentiment, I am absolutely certain there is no Owen Arthur in Grenada either.

Since Arthur lost the Government of Barbados, Mitchell is quite capable of losing his grip on power in Grenada. And, I am quite certain that such an eventuality may occur.