The 7th Caribbean Development Roundtable (CDR) focused this year on recovery and repositioning, with a view to finding practical and viable solutions to invest in resilience, economic recovery and sustained growth. The CDR also received an update on the progress made towards the creation of the Caribbean Resilience Fund (CRF).
Convened by the ECLAC Subregional Headquarters for the Caribbean and sponsored by the Government of Suriname, the CDR was officially opened by the outgoing President, the Minister of Foreign Affairs of Saint Vincent and the Grenadines, Keisal Peters. The meeting was held in the city of Paramaribo, the capital of Suriname.
The Roundtable, Minister Peters said, was conceived as a forum to discuss critical issues that pose a fundamental challenge to development in the Caribbean, and to explore solutions that will ultimately support inclusive growth and higher standards of living. for our people, while protecting our environment. Reflecting on the impact of the COVID-19 pandemic, Minister Peters noted that it has reversed some of the hard-won gains in the growth of the economies of the Caribbean countries, and in the reduction of unemployment and inequality. .
“The pandemic hit our main sectors, in particular tourism, trade and distribution. In addition, the sub-region was rocked by natural disasters. The La Soufrière eruption had a devastating impact on my own country, Saint Vincent and the Grenadines. while here in Suriname and in neighboring Guyana there were major floods, there was an earthquake in Haiti and numerous storms that crossed the Caribbean,” he said.
The Director of the ECLAC Subregional Headquarters for the Caribbean, Diane Quarless, underscored ECLAC’s position on the need for economic diversification in the Caribbean, which, she said, is an integral part of the lasting recovery and development of the resilience. Quarless stated that this requires investment in production and industry, and therefore investment in people. “At ECLAC we have long been promoting the idea of long-term planning and the development of industrial policies aimed at identifying new sectors and actors, and new sources of financing. This implies the need to improve the business environment, with a closer association dynamics between the government and the private sector.
The Roundtable recognized that while the prospects for the Caribbean to adequately meet its development needs have been severely limited, new opportunities, both international and regional, have emerged. These can provide potential support to the sub-region’s efforts to find a strong recovery, and to become more resilient, through global partnerships.
Quarless highlighted that the first area of considerable interest is the creation of innovative financing instruments to access development finance, especially in areas of need such as renewable energy and risk insurance. “We encourage everyone to recognize our efforts towards the establishment of a Caribbean Resilience Fund, in response to the need to create instruments that provide long-term and low-cost financing, in order to alleviate the burden of debt service and the liquidity constraints that have been choking investment in innovation and resilience in heavily indebted middle-income countries in the subregion,” he said.
The two-day meeting explored the potential for effective advocacy, in order to tap domestic and concessional funding sources, and explored how these programs could be scaled up to be effective.
Five important areas were discussed, in separate panels. These were: (1) Vulnerability, debt and liquidity in the Caribbean; (2) Vulnerability in the small middle income countries of the Caribbean; (3) Data needs and statistical capacity of the Caribbean; (4) Global Partnership for Repositioning, Recovery and Resilience in the Caribbean; and (5) Restructuring and economic diversification to deepen the integration of the Caribbean in Latin America and in the global economy.
The first theme of the panel identified that issues of vulnerability, debt and liquidity are at the heart of the Caribbean’s challenge to address sustainable development. Long-term, easily accessible and affordable financing is urgently needed to invest in recovery, resilience, economic transformation and growth. The response proposed by ECLAC to this need is the CRF, which will ensure the availability of resources for the Caribbean to invest in adaptation and mitigation initiatives. ECLAC has also launched a series of liquidity management operations to address growing debt and liquidity problems in selected pilot countries. The roundtable provided an update on these initiatives and their role in addressing critical resource gaps in the subregion.
Another panel discussed the ongoing challenge Caribbean countries face in accessing affordable finance. The fact that the incessant exposure of these countries to exogenous shocks, the recovery of which invariably takes several years, is not sufficiently taken into account. To counteract this, the subregion recognizes the Multidimensional Vulnerability Index, created by a High Level Group commissioned by the Secretary General, António Guterres.
Another panel discussed the data needs and statistical capacity of the Caribbean. Producing quality data in a timely and consistent manner is a challenge for most Caribbean countries. This challenge spans a wide spectrum, including limited indigenous technical capacity, limited statistical expertise, high staff turnover, and underfunding of national statistical offices. The panel noted that the scarcity of official statistics in the subregion has inevitably hampered the effectiveness of mechanisms for monitoring and measuring progress in achieving national development priorities. An example of this is the Caribbean’s record in reporting on the SDGs, which has thus far reflected a stark reality of significant data gaps. Panelists explored their own experiences in the Caribbean statistical ecosystem and proposed options to strengthen the statistical capacity of the subregion.
The Round Table, as a platform to affirm the importance of global solidarity and partnership in supporting and advancing Caribbean development aspirations, was the focus of another panel. The debates revolved around the need to increase competitiveness, advance technological capacity in a more digitalized world and ensure the well-being of all. It was noted that, now more than ever, strong international cooperation is needed to ensure that countries have the means to recover from persistent pandemic and climate impacts, while shouldering heavy debt and debt service obligations. .
The last panel noted that global partnership opportunities will need to be complemented by national and intra-regional initiatives, if the sub-region is to fully benefit from changing circumstances. In this regard, the panel examined strategies aimed at promoting economic restructuring and diversification, which are essential to face negative external shocks. Special attention was paid to strengthening sectors such as tourism and agriculture, taking into account the need to integrate youth and women in economic transformation strategies.
At the closing of the meeting, Minister Peters expressed her support for the CRF proposed by ECLAC, as she described it as a tool to leverage long-term and affordable financing to face the challenges of climate vulnerability and limited liquidity. . “I have particularly liked the debt restructuring and liquidity enhancement proposals, which will be well received by cash-strapped governments. The importance and value of parametric insurance provided through CCRIF SPC in offering more Optimizing climate risks was also a very welcome part of our dialogue. We note that CCRIF is innovating in offering new products, including its microinsurance scheme for small farmers and fishermen in response to shocks.”
Among the participants in the CDR were regional and international development thinkers and professionals, leaders and high-level political leaders from ECLAC member states and associate member countries, representatives of the United Nations system, regional financial institutions and international, from academia and civil society, including the private sector, as well as other development partners.
