In September 1994, the Labour Party won the general elections, making Arthur Prime Minister.
He also acted as Minister of National Security, Minister of Finance, and Minister of Information, and appointed four female ministers, including all three female BLP MPs.
The youngest of the four, 29 year-old Mia Mottley, eventually succeeded him as party leader in 2008 and was elected Prime Minister in 2018.

In 1995, Arthur devised the formation of a parliamentary law reform commission led by Henry Forde to advise on constitutional and institutional reform of Barbados Government, and Arthur would also that year become appointed a Privy Counsellor, giving him the title of "Right Honourable."
As part of Arthur government's agenda he dedicated much of his work as Prime Minister towards advancing Caribbean regional integration, including by spearheading the creation of the CARICOM Single Market and Economy in 2001 with the signing of the Revised Treaty of Chaguaramas.

Arthur sought for Barbados to host several international community events including the UN Global Conference on Small Island Developing States (SIDS) which led to the Programme of Action for the Sustainable Development of Small Island Developing States, also referred to as the Barbados Programme of Action (BPOA), and further served as a principle negotiator in the 1997 Partnership for Prosperity and Security in the Caribbean also known as the "Bridgetown Declaration" between the West Indian nations and the United States.
 
After completing a popular first term, the BLP won a record-breaking 26 of 28 seats in the 1999 general election.
A national plan for beautification of major business and community centres including Bridgetown, Holetown, Oistins, Speightstown, Warrens, and Wildey were devised and put into motion along with plans to greatly liberalise the Barbados economy and expand cultural industries.
Plans for Double Taxation Agreements to spur international financial sector trade linkages, and for airport and seaport modernisation were also a focus.

The BLP kept a dominant majority by winning 23 of 28 seats in the 2003 general election, ensuring him
a third term.
A prominent plank of Arthur's platform for the 2003 elections was his promise to transform the country into a parliamentary republic, replacing Queen Elizabeth II with a Barbadian President as Head of State.
Arthur planned to hold a national referendum on this proposition in 2005.

However, this timeline was pushed back due to other pressing developments, such as the implementation of the CARICOM Single Market and Economy and leading complex and difficult negotiations of the Economic Partnership Agreement between the CARIFORUM- and European Union bloc of countries along with the resulting joint Parliament.

Closer to home, Arthur took genuine interest in advancing plans for the regional hosting of the Cricket World Cup 2007.
 On 18 June 2007, Arthur gave an address at the U.S. Library of Congress to American and CARICOM country officials that outlined his plan for the CSME.

On 25 March 2007, on the bicentennial anniversary of the abolition of the slave trade in the British Empire, Parliament passed a resolution acknowledging that slavery was a crime against humanity.
 On this occasion, Arthur expressed support for slavery reparations; he felt that educational exchanges and technology transfers would be more appropriate than financial payments.
In September 1994, the Labour Party won the general elections, making Arthur Prime Minister. He also acted as Minister of National Security, Minister of Finance, and Minister of Information, and appointed four female ministers, including all three female BLP MPs. The youngest of the four, 29 year-old Mia Mottley, eventually succeeded him as party leader in 2008 and was elected Prime Minister in 2018.
In 1995, Arthur devised the formation of a parliamentary law reform commission led by Henry Forde to advise on constitutional and institutional reform of Barbados Government, and Arthur would also that year become appointed a Privy Counsellor, giving him the title of "Right Honourable." As part of Arthur government's agenda he dedicated much of his work as Prime Minister towards advancing Caribbean regional integration, including by spearheading the creation of the CARICOM Single Market and Economy in 2001 with the signing of the Revised Treaty of Chaguaramas.
Arthur sought for Barbados to host several international community events including the UN Global Conference on Small Island Developing States (SIDS) which led to the Programme of Action for the Sustainable Development of Small Island Developing States, also referred to as the Barbados Programme of Action (BPOA), and further served as a principle negotiator in the 1997 Partnership for Prosperity and Security in the Caribbean also known as the "Bridgetown Declaration" between the West Indian nations and the United States.  
After completing a popular first term, the BLP won a record-breaking 26 of 28 seats in the 1999 general election. A national plan for beautification of major business and community centres including Bridgetown, Holetown, Oistins, Speightstown, Warrens, and Wildey were devised and put into motion along with plans to greatly liberalise the Barbados economy and expand cultural industries. Plans for Double Taxation Agreements to spur international financial sector trade linkages, and for airport and seaport modernisation were also a focus.
The BLP kept a dominant majority by winning 23 of 28 seats in the 2003 general election, ensuring him
a third term. A prominent plank of Arthur's platform for the 2003 elections was his promise to transform the country into a parliamentary republic, replacing Queen Elizabeth II with a Barbadian President as Head of State. Arthur planned to hold a national referendum on this proposition in 2005.
However, this timeline was pushed back due to other pressing developments, such as the implementation of the CARICOM Single Market and Economy and leading complex and difficult negotiations of the Economic Partnership Agreement between the CARIFORUM- and European Union bloc of countries along with the resulting joint Parliament. 
Closer to home, Arthur took genuine interest in advancing plans for the regional hosting of the Cricket World Cup 2007.  On 18 June 2007, Arthur gave an address at the U.S. Library of Congress to American and CARICOM country officials that outlined his plan for the CSME.
On 25 March 2007, on the bicentennial anniversary of the abolition of the slave trade in the British Empire, Parliament passed a resolution acknowledging that slavery was a crime against humanity.  On this occasion, Arthur expressed support for slavery reparations; he felt that educational exchanges and technology transfers would be more appropriate than financial payments.
Owen Arthur