The global objective of the consultancy is to provide a framework for the effective mobilization of domestic resources for the purpose of sustainable economic development. This initiative will be undertaken through a comprehensive economic assessment of the informal economy and means through which the sector can be modernized. This procedure would assist in the efficient execution of the Domestic Revenue Mobilization process.
The specific objectives of the consultancy are to:
Complete qualitative and quantitative assessment of the informal economy which also seeks to provide a profile of the informal sector including, but not limited to:
The nature and type of employment (casual, temporary, unpaid etc.) and how these ‘unofficial’ employment activities may reduce unemployment figures registered.
The level of underemployment and the nature and type of unofficial earning strategies (tax evasion, tax avoidance, avoidance of labor regulation, and other government or institutional regulations, non-registration of companies, activities not registered by the statistical.
Identify a national policy and the constraints which are associated with domestic resource mobilization and propose measures, which are applicable to the Barbados business environment, in an attempt to strengthen domestic resource mobilization and stimulate the economy of Barbados.
Conduct an analysis of the economic potential of the informal economy and its spill-over effects to economic agents within the formal sector. This analysis should be categorized by sectors.
Design a comprehensive cost-benefit analysis report, to determine the effectiveness of modernizing the informal sector, or whether the sector functions separately as is.
Reflect the total contribution of varying economic agents in the informal economy in the production of various national statistics.
Ensure an oversight committee is established to facilitate the coordination and implementation of the project initiatives contained in this terms of reference from inception to the completion.
Develop a comprehensive strategy for the next five years, which is conducive to the sustainable modernization of the informal sector to the formal economy. This strategy should include but not limited to:
Operational Framework, which defines, identifies, and outlines the administrative framework surrounding the modernization of the informal sector.
The conceptualization of domestic resource mobilization strategies and the process through which Barbados can incorporate such strategies into Barbados’ Growth and Development Strategy. This would promote and incentivize the contribution to financial resources to fund programs targeted at sustainable development. A promotional framework targeting members of the social partnership.
