As a sugar-producing island economy with a significant tourism industry, it has something in common with Mauritius and Fiji. Much of this island nation's success as a developing country may be attributed to its early recognition of the importance of education. Public spending on health and education continues to be a hallmark of successive Government policies. Nonetheless, Barbados faces important challenges and questions as it formulates its growth strategy for the next decade.
Labour costs are quite high and so is the cost of living.
The Prime Minister acknowledged recently that there are still pockets of poverty in the country. Tourism growth has posed questions relating to land and water use and conservation. It is against this background that assistance from the European Development Fund can be viewed. But it is investment in people that may have the most impact in helping Barbados meet its longer term development goals. EC support has been given to the Barbados Community College and the UWI university campus at Cave Hill.