relative development of our business and financial markets, local internet penetration and international connectivity. the quality of life in barbados is high, attested to by the human development report, published by the united nations development programme ( undp ). in recent reports barbados is credited with high human development, an indication that in terms of what our salaries will buy, as well as educational and health status, barbadians live as well as people do in some advanced countries. we have all but eliminated dilapidation in housing, access to electricity, water and sanitation is universal, and homelessness has been reduced to a level that many rich countries would envy. we have our very wealthy, and our poor people, but on the whole we are a remarkably egalitarian society. our economic performance the barbados economy runs on foreign exchange, as i have often said. we live quite well, by international standards, by selling the goods and services we produce at competitive prices for bis central bankers ’ speeches foreign currency, and using that foreign currency to import everything we need for our modern lifestyles. our main focus is therefore always on the activities that earn us foreign exchange : tourism and related activities, international business and financial services, and rum, chemicals and a few other manufactured goods. there is one sector where we have the potential to increase output without the use of foreign exchange, and it is in the energy sector. every day in barbados we produce far more energy than we could possibly use, but almost all of it is completely wasted, because it is in the form of heat generated on our roofs and other surfaces that absorb and reflect the sun ’ s rays. we currently harvest a small amount to heat water. however, affordable photovoltaic systems now provide an opportunity to businesses and middle class households to generate all their electricity needs. of course, we would need a means of supplying electricity at night. it has been shown that with a combination of solar and wind energy, plus biofuels and storage, barbados could become self - sufficient in electricity generation. it is an opportunity we cannot afford to pass up. barbados ’ tourism is rising to the challenges of the 21st century. the barbados brand is highly regarded, and developments in the sector have largely enhanced the quality and appeal of the barbadian tourism product. the visitor experience has been enhanced by top quality sports, dining, shopping, music, culture and heritage. our visitors are in search of authentic experiences, and we continue to enrich our offerings in ways that are

agenda on microfinance is the continuous review of existing policies and regulatory guidelines to make them even more attuned to the growing needs of the microfinance sector. we believe that with a well - defined vision and strategy for microfinance, we can easily identify and fully address the capacity development needs of microfinance players. initially, we have defined our policy agenda which is to encourage the establishment of new microfinance - oriented thrift and rural banks and the setting up of microfinance operations in existing banks. through this approach, the banking system can more effectively reach a larger number of e - poor. this would complement other microfinance delivery channels like credit cooperatives and ngos that have their own strengths and weaknesses. three important provisions in the general banking law ( gbl ) of 2000 formally authorized the bsp to fully support microfinance. in carrying out this mandate, we have drawn up a set of banking regulations that take into consideration the peculiarities of microfinance lending : cash flow - based, typically unsecured and short - term, high frequency collections, and often featuring group guarantee and other non - traditional forms of security. specifically, the bsp has issued the following circulars : • circular 272 ( january 2001 ) implements the provisions of sections 40, 43 and 44 of the gbl and sets out the regulatory guidelines for engaging in microfinance. • circular 273 prescribes additional requirements for licensing of microfinance - oriented banks. this was issued primarily to encourage banks to adhere to best practices and high performance standards. another requirement is for the organizers to have a good track record in microfinancing. as a minimum operational requirement, banks should have a loan tracking system in place that can adequately monitor and manage a microfinance portfolio. the same circular also provided for the partial lifting of the moratorium on the opening of new thrift and rural banks and branches to allow the entry of microfinance - oriented banks. • circular 282 ( april 2001 ) specifies the guidelines governing the rediscounting facility for microfinance loans of rural and cooperative banks. • circular 324, issued in 2002, expanded the coverage of the rediscounting facility to include thrift banks. in relation to this, we have provided rediscounting for 26, 966 micro - borrowers amounting to p219. 5 million, as of end - july 2004. we have issued several other regulations to provide further incentive