BRIDGETOWN, Barbados - The Development Bank of Latin America and the Caribbean (CAF) Friday announced plans to expand its operations into the Caribbean that it says highlights its relationship and commitment with the Caribbean region.
CAF Executive President, Sergio Díaz-Granados, addressing the launch of the RED Report in Barbados (CMC Photo)CAF Executive President, Sergio Díaz-Granados, speaking at the launch of the Report on Economics and Development (RED), entitled “Inherited Inequalities: The Role of Skills, Employment and Wealth in the Opportunities of New Generations,” said the relationship would extend beyond the current shareholder countries of Barbados, Trinidad and Tobago and Jamaica.
“We are also reaching out to the rest of CARICOM (Caribbean Community) to bring them into our CAF family,” he said, noting that the Venezuela-based CAF is the main development partner for Trinidad and Tobago with a portfolio estimated at nearly one billion US dollars.
“We plan to deepen our work there and expand across the region complimenting the work of the Caribbean Development Bank , the IDB (Inter American Development Bank) and the other partner institutions.
“The objective is to address the financial needs of our stakeholders as best as possible, facilitating progress and improved quality of life for all Caribbean people…through concrete action”.
Díaz-Granados, said last November, the CAF launched its regional office for the Caribbean in Port of Spain and “we are working on setting up an office for Barbados and the Eastern Caribbean islands.
“.Within the framework of CARICOM we have held meetings with prime ministers and finance ministers of the countries to learn more of their needs and development priorities as well as to respond to the growing interest in joining CAF as shareholders.”
He said in March this year, CAF for the first time, approved a non-reimbursable technical assistance facility to provide dedicated support to CARICOM countries that are not yet members of the development bank.
“This is because bringing the Caribbean closer to CAF is a priority. We are committed to doing our part to channel ….resources to our shareholder countries, protect Caribbean citizens from hurricanes, flu and drugs (and) to preserve natural capital”.
He said the CAF would also be playing a role in mobilizing financing to help in the resilience of the entire region through institutions such as the Barbados-led Blue Green Bank that he described as a ”priority to us.'"
“This is why I am pleased to announce today that CAF will participate as a financier, an investor, up to US$50 million matching Barbados financial effort in this important initiative for …the blue economy."
Díaz-Granados, said that the CAF would continue to support the Bridgetown Initiative, a political agenda announced by Barbados Prime Minister Mia Mottley for reform of the global financial architecture and development finance in the context of three intersecting global crises, namely debt, climate, and inflation.
He said an example of what can be achieved is the Global Gateway Initiative, bringing together 112 lines of action covering all the countries of Latin America and the Caribbean.
“It is important to know that CAF is more than a bank. It is an institution…that amplifies the voice of the region, a platform that is putting the interest of the region at the center of the global conversation…
“CAF is committed to promoting sustainable development and …inclusive growth,” he said, noting that 40 per cent of its approvals by 2026 “will be green and blue”.
He said the reason for the presence of CAF in Barbados is for the presentation of the RED report, its annual flag ship on the economy development produced over the last 20 years.
CAF has noted that Latin America and the Caribbean is one of the most unequal regions in the world and that this inequality is not only high but also highly persistent.
“Despite the many advances achieved in different indicators of economic and social development in recent decades, the challenge of achieving a better distribution of income, wealth, and educational and employment opportunities in the region persists.
“In this edition of the Report on Economic Development (RED), we analyze the main barriers that, over time, have perpetuated differences in the conditions of origin (social, educational, ethnic, and geographical, among others). areas of public policy to improve social mobility in the region: leveling conditions in the formation of human capital, improving the functioning of labor markets,” CAF noted.
Díaz-Granados said that CAF is aware that it needs more data to target more policy making and development interventions, describing it “as one of the biggest challenges we face in our work at CAF with the countries of the region.
“We plan to strengthen the data and the analysis for the Caribbean in future reports and look forward to working closely with the key partners such as the University of the West Indies,” he added.
