Working Paper Series: Special Edition of 2016 to 2018 Interns

5. Review Employment Legislation. Economic growth alone may not be a sufficient condition to correct the labour market issues in Saint Lucia. Legislative reviews and reforms are necessary to ensure that regulation does not negatively impact the efficient functioning of the market. This includes legislation on wages and employment benefits. 6. Encourage research and development in business. Without research there is little innovation and without innovation there is little growth. If innovation locally is only by adopting products and production processes that have already been ‘ discovered ’ then growth will always be moderated. The biggest returns are realized when firms are able to get in the game early with new or differentiated products. Saint Lucia may not be able to compete with advanced economies amongst the technology frontiers, however the country should encourage a culture of trying to stay ahead of the game in the sectors that matter the most to the economy. These include tourism and agriculture. Research in those areas may be encouraged through research grants to individuals/ institutions in specific areas or tax incentives for new and differentiated products.

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