Executive Summary
The present research paper delivers an overview of Saint Lucia that will be beneficial for foreign investors who would like to start a business in that country. The paper addresses the cultural, economic, and political peculiarities of the country, as well as the potential challenges business people may face when leading the business. The paper also contains the historical background of the country that explains the majority of its cultural characteristics.
The report provides the readers with the current information concerning the economic growth and business potential Saint Lucia currently possesses. It reveals such economic characteristics as the country’s GDP, investment profits, employment, unemployment rate, and the data on the export and import of goods and services. Another classification the report contains concerns the Saint Lucian model of cultural development that will allow the potential investors to establish the most effective and less harmful ways to promote their business in the country. It may also help develop the business strategy regarding the peculiarities of the national culture and organize work in the most effective way.
Introduction
St. Lucia is an island in the Caribbean sea that attracts not only by its nature but also opportunities for business development. The country is situated on Saint Lucia island between St. Vincent and Martinique. It is bathed by the Caribbean Sea and by the Atlantic Ocean. The country’s square is 616 sq. kilometers, and more than 180 thousand people populate it. The native population of the island is almost gone (Dalphins, 2019). Nowadays, there live mostly people from Africa or India, and the European population constitutes no more than one percent of all the people who live there. The main religion of the country is Catholicism, as almost sixty percent of the population confess to it. The capital of Saint Lucia is Castries. The official language is English, but a lot of people speak French.
Background and Culture
St. Lucia was discovered by Christopher Columbus at the end of 1502. Up until 1814, the country was a disputable territory of England and France. However, later the island has become the object of British jurisdiction (Dalphins, 2019). St. Lucia became an independent estate in February 1979. However, it remains a member of the British Commonwealth. Saint Lucia is a parliament monarchy, so the country’s head is the British Queen, represented by Governor-General. Since the country is not very famous, its culture is not so well-known worldwide. One of the most prominent citizens of Saint Lucia, one can single out only Derek Walcott. He was a poet, dramatist, and Nobel Prize winner in literature in 1992.
The country’s location and climate enable the government to promote tourism, which is one of the main sources of revenue for Saint Lucia. Then go the agricultural sphere and construction industry (“Saint Lucia: Economy”, 2021). The realty market in Saint Lucia remains the market of consumers. The majority of the deals are consumer-oriented since people buy the realty to have rest there. The majority of the customers are American and British people.
When comparing the US and Saint Lucia, it is possible to single out several cultural similarities. They include the same language since English is the official language in both countries. In addition, both the US and Saint Lucia citizens confess to Christianity. As for the cultural differences, it should be mentioned that the US is a republic, and Saint Lucia is a parliament monarchy. The cultural values of these two countries are not very different since both of them were influenced by Britain during their development. However, the British influence on Saint Lucia is more apparent since the country still has close relationships with Britain. However, the difference does not prevent the US and Saint Lucia from mutual trade since the US is the main export and import partner of Saint Lucia (Bureau of Western Hemisphere, 2021). The cooperation between the two countries is beneficial for them since it boosts their economic growth and well-being.
When comparing the two countries regarding Hofstede’s Model of National Culture, it is possible to see the economic differences between the USA and Saint Lucia more apparently:
(“What about the USA?”, 2021).
The most significant dimensions that define economic growth and potential for further development is individualism, long or short-term orientation, and indulgence. They establish the role of the individual’s contribution to society’s well-being and further perspectives on the country’s economy (“10 minutes with Geert Hofstede”, n.d.). The most significant differences between the US and Saint Lucia concerning these dimensions are mostly the Individualism dimension. The US is a highly individualistic culture, and individual values are more prioritized than collective ones. The relationships there depend on people’s personal interests and values and change together with them. A person’s success in the USA is closely related to his achievements and is his own responsibility. Unlike individualism, collectivistic culture prioritizes society’s interests over individual ones. Collectivism is typical of societies with strict social structure and clear division into social groups, where everyone has his own role and responsibilities. The US, representing individualistic culture, prioritizes people’s potential, unlike Saint Lucia, where common values are placed above individual achievements.
The process of industrialization in Saint Lucia goes fast since it went away from the economic model based primarily on agriculture towards the model that prioritizes tourism and banking. Though agriculture still constitutes a significant part of the country’s economy, the main revenues to the budget are provided by tourism (“Saint Lucia: Economy”, 2021). The country’s government also pays attention to the sphere of education since school education is compulsory for children from five to fifteen years old (Government of Saint Lucia, 2021). In addition, students have an opportunity to continue their learning and enroll in the high education program. Such a policy in the education sphere enables the country to prepare a competent and experienced workforce that will provide further economic growth of the country.
When speaking about social inequality in Saint Lucia, it is necessary to mention that the government targeted the decrease people’s inequality depending on social status. Hence, social inequality is rather low in the country, and the ratio of people’s well-being constantly grows. The percentage of employed Saint Lucia citizens increases as well. Thus, it may be considered that the country’s economy may be positively affected by the foreign business initiative since it will help decrease the ratio of unemployed people and bring significant profits to the budget.
Business Environment
Saint Lucia is open for foreign business. There exists a government program that brings revenues to the country’s budget due to giving foreign people an opportunity to get citizenship in Saint Lucia if they invest in the country’s economy (Government of Saint Lucia, 2020). Saint Lucia has growing business potential since it possesses human resources. Its business market is not highly competitive yet, so it will be easier for investors to promote their business there. The main concern towards Foreign Direct Investment in Saint Lucia regards the fact that the country does not reveal information about those who invest in a business there and get citizenship in Saint Lucia. The international community does not approve of such a policy, so potential foreign investors risk facing either sanctions or even international community prosecution, leading to loss of money and reputation.
The most important ethical dilemma the US managers may face while leading the business in Saint Lucia concerns the culture of collectivism that is spread in the country. Since individualism is more typical of US society than collectivism, it may be difficult for business people to understand the values and ideals Saint Lucian society promotes. That is why they may fail to adequately implement them into their individualistic business. When speaking about communication-related problems the US managers may face in Saint Lucia, it is necessary to state that there is almost no chance of their emerging. Both Saint Lucia and the US have English as their official language, so it will be easy for the citizens of both countries to communicate with each other (Government of Saint Lucia, 2020). However, since the second language of Saint Lucia is French, it will be beneficial for foreign investors to know it.
Saint Lucia did not face any trade sanctions in the past, so it is quite safe to lead the business in that country. The only thing that foreign business people should take into account regards the fact that they should carefully organize their documentation in order to not face international community sanctions against their company. The Saint Lucian government does not preclude other countries’ initiatives to start a business in their country (Government of Saint Lucia, 2020). On the contrary, it highly approves of their ideas and supports them, since international business may boost the country’s economic growth, which is beneficial for it.
It is necessary to regard the country’s economic statistics data before starting a business there. Thus, before investing money in business in Saint Lucia, it is necessary to assess:
(“Saint Lucia – economic indicators”, 2021).
There is one more aspect to address when speaking about the economy of Saint Lucia. Its foreign policy regards economic cooperation with other countries. Thus, it is currently a member of such organizations as the Organization of Eastern Caribbean States and the Caribbean Community and Common Market (CARICOM) (Bureau of Western Hemisphere, 2021). Since 2013 the country is also a member of the Bolivarian Alliance for the Peoples of Our America (ALBA). It is necessary to stress that the US and Saint Lucia also participate in the same organizations such as the UN, IMF, or WTO, which facilitates their cooperation.
Conclusion
To conclude, it is necessary to mention that the economic sphere of Saint Lucia is developing rather quickly. Such growth is caused by internal policy and foreign investments, which the country’s government highly approves and supports. Hence, it will be beneficial for business people from other countries to establish their businesses in Saint Lucia because it will be easier to make revenues there. However, they should carefully organize their documents and regard all the possible risks in order to avoid international prosecution.
References
Bureau of Western Hemisphere Affairs. (2021). US relations with Saint Lucia. Web.
Dalphins, M. (2019). History and language in St Lucia in 1654-1915. Lulu.
Government of Saint Lucia. (2020). News for businesses. Web.
Government of Saint Lucia. (2021). News for citizens/residents. Web.
Saint Lucia: Economy. (2021). Web.
Saint Lucia – economic indicators.(2021). Web.
What about the USA?(2021). Web.
10 minutes with Geert Hofstede. (n.d.). Web.