ECLAC proposes reconceptualizing the economy to improve growth and sustainable development in the Caribbean… Prime Minister of Saint Kitts and Nevis envisions sustainable island states

The Executive Secretary of ECLAC, José Manuel Salazar-Xirinachs, recommended adopting a new vision for productive development policies in the Caribbean.

Executive Secretary Salazar-Xirinachs made his remarks during the opening ceremony of the Eighth Caribbean Development Roundtable (CDR) in Port of Spain, Trinidad and Tobago, on Monday. The two-day meeting addresses discussions among 23 Caribbean countries on topics such as combating climate change; operationalizing the multidimensional vulnerability index; improving access to climate finance; enhancing productive development policy; and reviewing economic diversification in the Caribbean.

The Executive Secretary noted that many countries in the region have strategies to address development gaps that often fail. “When we look at the Latin American and Caribbean region, we see three development traps: a trap of low growth capacity; a trap of high inequality, low social mobility and weak social cohesion; and a trap of low institutional capacity and weak governance. The key question is how to get out of these traps.”

Salazar stressed the essential importance of the effective management of these transformations, emphasizing the need to strengthen specific technical capacities in data management and statistics. Another issue highlighted was the impact of the loss of highly qualified labor due to the brain drain, a consequence of educational and training systems that continue to fail to adequately serve their populations. “This phenomenon demands urgent addressing if the region wants to achieve the high-quality learning and skills necessary to promote strong knowledge-based economies,” he said.

“To address these and other challenges, we at ECLAC believe that it is essential to adopt a new vision on how to shape productive development policies. These policies are crucial to promoting economic dynamism and transformation with three interrelated objectives: first, achieving a more productive economy, that is, a productive system that is more diversified and technologically sophisticated; second, an emphasis on inclusiveness, in terms of more and better jobs; and third, a greener and more sustainable growth path, because PDPs also contain the tools to promote green and blue economies.”

Salazar praised the achievements of the Fourth International Conference on Small Island Developing States (SIDS4), in which Caribbean states highlighted the urgency of scaling up innovative climate financing and the importance of the Multidimensional Vulnerability Index (MVI) as a key tool in sustainable development. “The diplomacy of small States can be very influential and powerful in all these and other forums, and at ECLAC we are also ready and willing to support them in these discussions on financing and resource mobilization, as well as in the challenges of productive development and others. The new geoeconomic and geopolitical realities require re-evaluating diplomatic strategies, especially for small States, as they must now navigate a network of alliances, rivalries and conflicting interests in a multipolar world. Count on us in these efforts.”

In turn, the Prime Minister of Saint Kitts and Nevis, Terrance Drew, delivered the keynote address on the challenges for resilient growth in his country and the Caribbean region. “The path to resilient growth is neither direct nor simple. A sustainable island state is one in which every citizen enjoys a high quality of life today, while preserving these standards for future generations,” he noted.

The Prime Minister added that a vision for a sustainable island state must be based on water security; energy transition; food security; sustainable industry; sustainable settlements; circular economy and social protection. “Resilient security is about protecting our borders and ensuring the safety of our citizens… We cannot build a resilient nation if our people live in fear. Security is the foundation on which all other forms of resilience are built.” Prime Minister Drew made it clear that the development movement must include people’s buy-in. “Resilience is not something that can be imposed from the top; it must be built from the bottom up. We must continue to work together and chart a course where we all benefit and, with one voice, have a profound impact.”

Speaking on the challenges of economic growth, he said: “For too long, we have relied heavily on our Citizenship by Investment (CBI) programme. While it has been a valuable economic tool, it is not enough. We must diversify our economy to reduce our dependence on a single sector.”

Also speaking at the opening session was Trinidad and Tobago’s Minister of Planning and Development, Penelope Beckles-Robinson, the new Chair of the Caribbean Development and Coordinating Committee. She stated that now is the time for bold, decisive leadership and innovative solutions to build Caribbean economies and strengthen resilience in the region. “As we gather here for this Caribbean Development Roundtable, it is essential that we carefully examine practical strategies to dismantle the barriers that hinder resilient growth and sustainable development in the Caribbean.”

The Caribbean Development Roundtable (CDR) is the main forum for the discussion of development in the Caribbean. It is the institutional space where public policy makers, thinkers and stakeholders converge. It is the driving force of cooperative thought and action in the Caribbean. On Wednesday, September 11, the Caribbean Development and Cooperation Committee (CDCC) will meet for its 30th session, when Suriname will hand over the presidency of the Committee to Trinidad and Tobago.

More about ECLAC Caribbean

The mission of the subregional headquarters for the Caribbean of the Economic Commission for Latin America and the Caribbean (ECLAC) is to deepen understanding of the development challenges facing the Caribbean and contribute to solutions by conducting research and analysis, as well as providing policy advice and technical assistance to Caribbean governments, focusing on growth with equity and recognizing the vulnerability of the subregion.