The Inter-American Deve-lopment Bank (IDB) has approved a multi-faceted programme at a total cost of some US$32.55 million to improve competitiveness and boost private sector development in 15 Caribbean countries.
The programme will be implemented in Guyana as well as Antigua and Barbuda, The Bahamas, Barbados, Belize, the Dominican Repu-blic, Dominica, Grenada, Haiti, Jamaica, St Lucia, St Kitts and Nevis, St Vincent and the Grenadines, Suriname, and Trinidad and Tobago, the IDB said in a press release yesterday.
The ‘Compete Caribbean’ programme is a joint initiative of the IDB, the Canadian International Development Agency (CIDA), and the United Kingdom’s Department for International Development (DFID).
‘Compete Caribbean’ will provide technical assistance and investment funding to a variety of activities aimed at establishing productive development policies, implementing business climate reforms, launching clustering initiatives, and promoting small and medium-sized enterprises (SMEs) throughout the region.
The programme is to be carried out in close collaboration with regional institutions, governments and private sector entities.
Of its estimated total cost of US$32.55 million, CIDA is contributing a CAN$20 million grant (around US$18.70 million) and DFID is providing a £8.656 million grant (approx. US$13.85 million).
The IDB, the release noted, will establish and manage a programme coordinating unit in Barbados for the effective implementation of the programme.
And the IDB will also provide the expertise to identify, design and implement the projects included in ‘Compete Caribbean’.
According to the release, the programme is expected to contribute to an increase in non-traditional exports, from the average 2.2 percent of GDP in recent years to a 5 percent of GDP by 2017.
It is also expected to create 8,000 new jobs and make measurable advances in gender equality indicators.
All 15 countries are expected to advance positions in the global rankings measuring competitiveness and business climate. Caribbean economies were hit hard by the recent global recession, given the inherent constraints of their size and their limited diversification, the release noted.
Tourism dropped, demand for Caribbean exports fell, and foreign direct investment decreased, bringing a reduction in income that significantly affected the countries’ GDP and national reserves.
IDB project team leader José Jorge Saavedra is quoted as saying that “Even without the burden of the global downturn, the Caribbean economies face the structural challenge of defining new areas of competitive advantage.”
“We hope this initiative will help the region overcome some of its constraints to growth, and help increase productivity, exports, and employment in strategic sectors,” he added.
