Paving the Way for a Resilient Future in the Caribbean

With geopolitical tensions heating up between the United States and various countries worldwide, the Caribbean region is figuring out how to adapt to the shifting economic scene. Since the Trump administration took office earlier this year, the US has put a hold on funding for international environmental sustainability projects, putting many vulnerable nations at risk. Today, the Caribbean Development Bank held its annual news conference to unveil a new strategic plan aimed at bridging some of the gaps left by the US and supporting Caribbean nations on their path to a resilient future. News Five’s Britney Gordon was at the University of the West Indies in Barbados this morning to cover the event.

 

Britney Gordon, Reporting

Every year, tourism remains one of the largest contributors to economic growth in the Caribbean region, but the industry is at risk as the geopolitical landscape around the world begins to change.

 

Countries like the US have started cutting back on funding for environmental sustainability projects, which means nations like Belize, that depend heavily on their natural resources, need to look elsewhere for financial support. That’s why the Caribbean Development Bank (CDB) is stepping up, committing to another year of backing climate resilience projects throughout the region.

 

Daniel Best, President, C.D.B.

“As we look forward to the future with all its uncertainties, but more so, its opportunities. I can think of no other word that encapsulates my vision for the bank than rebirth.  Rebirth signals the bank’s renewed focus on delivering excellence to the people of this region.  We will practice excellence in each stage of every process, whether we are providing policy advice, appraising and implementing projects in our countries, or formulating country engagement strategies. As we support our Caribbean in the march towards the achievement of the Sustainable Development Goals, excellence will be our hallmark.”

 

Best explains that this new chapter for the bank will be guided by the theme “Rebirth: Innovate, Transform, and Thrive for a Resilient Future.” Over the past year, the Caribbean Development Bank (CDB) has funded several projects to enhance infrastructure and education in Belize. In February, the CDB supported the Development Finance Corporation in launching a consolidated line of credit to provide Belizeans with loans for education, renewable energy projects, and small to medium-sized businesses. Director of Projects, O’Reilly Lewis, highlights that thanks to initiatives like coastal protection projects across the region, the bank has seen the second highest levels of disbursements and approvals in the last decade.

 

O’Reilly Lewis, Director of Projects, C.D.B.

“Belize has been one of our stronger performing countries in terms of implementation and we are working to continue to build that. The other project I spoke to was the DFC, the Development Finance Corporation in Belize, which we are a traditional financer of, and who, and they themselves credit us with helping them exist, being in existence and being such a impactful company. We approved, I think it was a twenty million loan with them last year, to deal with the MSMEs in agriculture, renewable energy projects, student loans. So all aspects of. So though that loan will impact several layers of the, of life in Belize in a positive way.”

 

In 2024, Belize faced one of its longest dry seasons ever, resulting in the loss of thousands of acres of farmland and forest reserves to wildfires. Environmental Sustainability Division Chief, Valerie Isaac, assures that the bank is actively working to mitigate future risks of such natural disasters.

 

Valerie Isaac, Division Chief, Environmental Sustainability, C.D.B.

“One of the interventions that we have planned. I’m not sure the top of my head,  the scope, meaning the regions in Belize, it was covered with early warning system. So early warning system there for flood risk, multi-hazard warning system. And that is one of the things that are being considered.”

 

According to Lewis, the CDB and the Government of Belize are already working towards implementing the next phase of several projects this year.

 

O’Reilly Lewis

“We will be in Belize the first week of April, doing what we call a portfolio review, where we look at the current portfolio of projects with the government with the Ministry of Finance and the Ministry of Works and the Ministry of Education and all of the other nine ministries, Ministry of Environment,  and we will have also have discussions about where their priorities are and how they would see us as partnering with them to help solve some of those developing challenges.”

 

As trade relations remain unclear, the CDB encourages CARICOM members to diversify their markets and reduce their dependency on tourism.

 

Daniel Best

“We will work with our membership to support the birth of a new, dynamic, diverse, internationally competitive private sector.  A region where every citizen lives free from the fear of violence, the sustainable development of Haiti and the economic and social upliftment of its people, trade facilitation and interconnectivity through regional cooperation and integration and gender equality and diversity, equity and inclusion across all strata of Caribbean life.”

 

The region’s debt level has gone up by 3.3 percent due to a higher need for borrowing. However, there’s a silver lining: the debt to GDP ratio has dropped by 5.7 percent. In 2024, Belize was one of five countries to get an upgrade to their sovereign credit rating. Britney Gordon for News Five.