CIDA/Pierre St-Jacques CANADA in the CARIBBEAN Canada s history and friendship with the Caribbean is strong and abiding. We are both British Commonwealth members in the Western hemisphere. We have long-standing trade links and similar political systems. We belong to the same regional institutions that work to reinforce good governance, security, and economic prosperity in the region. We also share personal ties: people from the Caribbean form one of the largest diaspora communities in Canada. The Department of Foreign Affairs, Trade and Development (DFATD) is an integral part of this relationship, working in partnership with the Caribbean region on the priorities the region has set for its countries. Affaires étrangères, Commerce et Développement Canada Foreign Affairs, Trade and Development Canada Foreign Affairs, Trade and Development Canada Affaires étrangères, Commerce et Développement Canada Most Caribbean countries have reached middle-income status, but they remain vulnerable to economic shock, crime, and natural disasters. Canada is enabling the Caribbean to build a more prosperous and integrated Caribbean community, contributing to increasing economic opportunities and security to its citizens. WHERE Canada s Caribbean Regional Development Program works in 14 Caribbean Community (CARICOM) countries: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad and Tobago.
WHAT Canada supports the development priorities the region places on economic growth and security. Investments in the region are based on regional plans and expressed needs, the capacity of institutions, the division of labour among donors, and Canada s value added. Canada shares the Caribbean s vision of healthy and prosperous families, strong economies that provide meaningful employment, and self-sufficient people. That is why Canada is supporting the Caribbean in its effort toward a more integrated, regional economy. The Caribbean has identified the need to address the security risks that crime and natural disasters pose to prosperity. To deliver on this priority, Canada s development program is supporting the Caribbean s efforts to strengthen regional capacity so Caribbean countries can manage natural disasters and reduce the impact on people, communities, and the economy. It is also assisting regional governments to advance the rule of law and strengthen legal institutions so they can counter rising crime and maintain law, order, and personal security. Canada also supports the development agenda established by CARICOM to achieve regional integration through the CARICOM Single Market and Economy. In line with Prime Minister Stephen Harper s 2007 announcement to provide $600 million in development assistance for the CARICOM region, the Caribbean region is one of Canada s 20 countries/regions of focus. Development funding to the region totalled $130.6 million in 2011 2012, including imputed funds for multilateral organizations and mechanisms. Foreign Affairs funding amounted to $1.5 million. Achievements in 2011 2012 With Canada s support: 5 countries now conduct debt sustainability analyses annually, helping countries to manage their debt 3 countries adopted public financial management reform action plans 4 states improved customs administration Training in 7 countries has resulted in improved macrofiscal management and adoption of rigorous tools for macro-fiscal analysis Ongoing support to the Jamaica National Small Business Loans Ltd improved its microfinance credit methodology and portfolio quality, resulting in decreased proportion of non-performing loans Support to the Small Business Development Finance Trust in Guyana improved operations of microfinance institutions to increase profitability and sustainability 4 countries completed their national mental health disaster plan and more than 350 health staff in the Caribbean now have basic knowledge to manage mental health, trauma and distress issues in a disaster situation Household surveys and baseline data were collected in 916 project communities in Jamaica, Guyana and the Dominica to determine community preparedness, risk knowledge, etc. First aid instructor training was carried out in these communities DEVELOPMENT INITIATIVES IN THE CARIBBEAN To address the Caribbean s priority development goals, Canada s support is implemented through a variety of initiatives, working together with multilateral, regional, and bilateral partners. These initiatives are guided by the objective of achieving the best possible results on the ground while ensuring that our investments represent the best value for Canadian taxpayers dollars. SUSTAINABLE ECONOMIC GROWTH Initiatives to stimulate sustainable economic growth in the Caribbean region focus on public institutions, and on entrepreneurship and access to markets. 2
Accountable Public Institutions Effective and transparent public institutions are necessary for a stable business environment. A business climate with a clear set of rules will foster entrepreneurship and increase economic opportunities. Development initiatives that help strengthen Caribbean public institutions include the following: Caribbean Regional Technical Assistance Center IV This project aims to enhance the management of public finances in the Caribbean region. It helps countries increase the effectiveness of their revenue systems, prepare and execute more effective and transparent budgets, and formulate better fiscal policies. This initiative helps build technical capacity in the recipient countries by working with professional associations to jointly develop and deliver training programs and seminars. ($20 million, 2011 2015, International Monetary Fund). Supporting Economic Management in the Caribbean This initiative contributes to enhanced economic management in the Caribbean region by improving revenue generation (tax and customs), fiscal policies, and reorienting budgets toward more effective and efficient programs. ($19.7 million, 2010 2014, World Bank) Eastern Caribbean Central Bank Debt Management Advisory Service This initiative helps Eastern Caribbean counties to manage their debt by providing advisory services through the Eastern Caribbean Central Bank. ($7.5 million, 2008 2014, Eastern Caribbean Central Bank) Canada-Caribbean Leadership Program This initiative helps to strengthen the next generation of Caribbean leaders. Best practices are shared through this program to inspire and guide governance reforms and regional development. ($20 million, 2010 2018, Canada School of Public Service) Organization of Eastern Caribbean States Institutional Strengthening This initiative helps strengthen the administrative management, financial management, research, data collection and analysis, human resource management, and communications and public awareness activities of the Organization of Eastern Caribbean States Secretariat. ($4 million, 2004 2013, Organization of Eastern Caribbean States) Caribbean Local Economic Development This initiative provides support to as many as 50 local governments and agencies for economic development. As many as 500 microbusinesses and small and medium-sized enterprises in six countries will benefit from this project. ($19.5 million, 2011 2017, Federation of Canadian Municipalities) Entrepreneurship and Connecting to Markets Small economies, such as those of many Caribbean countries, face the challenge of accessing bigger and higher-value markets. Improved access to markets is an essential incentive for both existing enterprises and new entrepreneurs. It is also important for economic growth for Caribbean youth to acquire the skills that will enable them to take full advantage of new economic opportunities. Canada-funded initiatives that contribute to fostering entrepreneurship and creating access to markets include the following: Promotion of Regional Opportunities for Produce Through Enterprises and Linkages This project helps farmers to increase the quality and quantity of fresh, regionally grown fruits and vegetables, and help these small and medium-sized producers link with buyers such as regional grocery chains, cruise lines, airlines, hotels, and restaurants. Technical assistance helps the producers to supply sufficient quantities of their produce and maintain internationally accepted food quality and safety standards. ($19.4 million, 2012 2016, Canadian Hunger Foundation) 3
Promoting Private Sector Growth Compete Caribbean This initiative helps to improve the competitiveness of the Caribbean private sector. Compete Caribbean helps create new job opportunities, encourages exports in non-traditional sectors, and promotes business climate reforms. ($20 million, 2010 2015, Inter-American Development Bank) Partnership for CARICOM Private Sector Development This initiative provides technical assistance to increase private sector participation and investment in transport, power, water, and communications infrastructure. It enables financial institutions to increase the supply of loans to small and medium-sized enterprises and helps simplify the regulations for private sector development. ($20 million, 2008 2013, World Bank) Entrepreneurship Program for Innovation in the Caribbean This initiative enhances the competitiveness of Caribbean microenterprises and small and medium-sized businesses by expanding and improving the network of business incubators in the region. ($20 million, 2010 2015, World Bank) CARICOM Education for Employment This project builds the capacity of Caribbean institutions to develop technical and vocational education and training (TVET) policy, occupational standards and curriculums in key economic sectors through partnerships with Canadian and Caribbean colleges/institutes, industry, government and professional associations. The project helps improve access to pertinent labour market information to develop demanddriven TVET based on employers need. This will lead to meaningful employment for youth and skilled workers in the region. ($19.6 million, 2010 2016, Association of Community Colleges of Canada) CARICOM Trade and Competitiveness Project With the support of this initiative, the Caribbean can better participate in global trade liberalization in a way that benefits its people. This initiative supports the advancement of the CARICOM Single Market and Economy and assists the Office of Trade Negotiation. ($15.7 million, 2007 2015, CARICOM Secretariat) Strengthening Distance Education in the Caribbean The project will provide technical assistance for new curriculum development and to help build the capacity of the University of the West Indies (UWI) Open Campus. This project will enable the Open Campus to increase access to post-secondary education for remote and underserved communities at up to 42 learning sites across the Caribbean using distance education technologies. The project will ultimately support economic growth and increase employment through the development of human capital. ($20 million, 2013-2019, University of West Indies) DISASTER PREPAREDNESS Natural disasters represent another great challenge to the economic prosperity of Caribbean countries. The increasing frequency and strength of natural disasters have a negative economic impact on the Caribbean, particularly on the most vulnerable communities. Canada-funded initiatives that assist Caribbean countries in their preparedness and capacity to respond to natural disasters include the following: Caribbean Disaster Responsive Fund This project provides short-term assistance after major disasters for critical humanitarian needs and timely damage assessment so as to facilitate the restoration of critical services. The fund provides for the services of two technical experts one in water and sanitation, and a second in airport damage assessment as part of a larger rapid response team. ($4.9 million, 2003 2017) Community Disaster Risk Reduction Program This initiative helps test innovative ideas for reducing the risk of natural disasters through supporting projects in local communities. The work is done with government agencies, local officials, community workers, and community-based organizations by assisting them with training and information on best risk-reduction practices and determining which preventative measures are most effective. ($20 million, 2012 2017, Caribbean Development Bank) 4
Caribbean Disaster Risk Management Program This initiative helps to increase the capacity of regional organizations, national governments, and local communities to respond to and manage natural disasters and to reduce the impact on people. ($20 million, 2007 2015, Caribbean Disaster Emergency Management Agency) The program includes the following components: Comprehensive Disaster Management Harmonized Implementation Program The program seeks to enhance institutional support and community resilience to mitigate, respond to and recover from the adverse effects of climate change and disasters. ($3 million, Caribbean Disaster Emergency Management Agency with UK s Department for International Development and the Australian Agency for International Development) Disaster Risk Reduction in the Health Sector of CARICOM Member States The project aims to improve disaster preparedness within health sector institutions in the Caribbean and promotes the integration of health-related disaster risk management into policies, laws, and decision-making at the national level. (Pan American Health Organization, $3 million, 2007 2015) Canada Caribbean Disaster Responsive Management Fund This local responsive fund was designed to support Caribbean-based non-governmental organizations, community groups and governmental agencies wishing to undertake small-scale projects at the community level to tangibly reduce the risks from natural hazards (e.g. floods, droughts, storms, and hurricanes) and climate change. ($3 million, 2008 2015) Caribbean Community Resilience to Disaster Risk This project enhances community resilience to disaster risk in the Caribbean region at the regional, state and community levels. It supports vulnerable communities by providing direct community-based disaster risk reduction programming through Jamaica, Guyana and Dominica Red Cross Societies in collaboration with local partners. (Canadian Red Cross and the International Federation of the Red Cross, $3.5 million, 2011 2014) Caribbean Agricultural Micro Insurance Project This innovative project aims to develop agricultural insurance as a cost-effective mechanism to protect the livelihoods of low income farmers in the Caribbean. The project will start by providing insurance coverage to banana farmers in the Eastern Caribbean. As the project progresses, it aims to cover more countries in the region and more crops including nutmeg, cocoa, coffee and rice. The project also assists farmers to implement disaster risk reduction techniques. Over time, the project aims to expand its coverage from 3,000 farmers to 15,000, or about 50,000 people. ($1.2 million, Caribbean Development Bank, 2013 2016) SECURITY Canada also supports initiatives that help strengthen the rule of law and promote anti-crime measures in the Caribbean. Justice Undertakings for Social Transformation This initiative contributes to improving the justice system in Jamaica by strengthening justice institutions, promoting legislative and policy reforms that better position the state to ensure security, and encouraging communities to provide input into justice system reform. ($18.5 million, 2008 2017) In addition to its robust regional Caribbean program, Canada is contributing $27 million to support Jamaica in addressing some serious economic challenges as it implements a new four-year macroeconomic adjustment program. This includes support to assist youth who are at risk of turning to crime. Anti-Crime Capacity Building Program Launched by Prime Minister Harper in 2009, the program provides up to $15 million a year to enhance the capacity of government agencies, international organizations and nongovernmental entities to prevent and respond to threats posed 5
by transnational criminal activity throughout the Americas. In Central America and the Caribbean, the program focuses on illicit drug trafficking, money laundering, security-sector reform, corruption and crime prevention. Counter-Terrorism Capacity Building Program Established in 2005, the program assists other countries with training, funding, equipment, technical and legal assistance so that they can prevent and respond to terrorist activity, within international counter-terrorism and human rights norms, standards and obligations. REGIONAL INITIATIVES IN THE AMERICAS ALSO HELP THE CARIBBEAN Canada s Caribbean development program also supports regional activities in most of the 33 countries in Latin America and the Caribbean, addressing issues that are regional in scope. These issues include increasing benefits from trade and controlling the spread of disease. The Caribbean region benefits from many programs that assist the Americas, including the following: Canada-Americas Trade-Related Technical Assistance Program The goal of the program is to assist partner countries in Latin America and the Caribbean region to maximize the opportunities and benefits of increased trade and investment through their bilateral free trade agreements with Canada, thereby contributing to broader poverty reduction and development mainly through enhanced trade and investment opportunities. ($18 million, 2009 2015, Conference Board of Canada) Canada-Americas Business Environment Reform This project supports the reform programs of selected governments to improve the business environment in as many as 21 countries in Latin America and the Caribbean through improved regulatory procedures, systems, and private sector innovation. ($11 million, 2012 2017, International Finance Corporation) CANADA S CONTRIBUTIONS TO MULTILATERAL ORGANIZATIONS ALSO HELP THE CARIBBEAN Canada also provides support to multilateral organizations, which in turn implement programs in individual Caribbean countries or the region. Key institutions among these include the Caribbean Development Bank (CDB), World Bank, Inter-American Development Bank (IDB), United Nations Development Programme, and International Monetary Fund (IMF). Canada, along with the United Kingdom, is the largest nonregional shareholder at the CDB. Canada s contribution to the 150% general capital increase, approved by the Board of Governors of the Caribbean Development Bank in 2010, has largely strengthened the Bank s financial capacity to promote economic and social development in the region. Canada is also the largest contributor to CDB s Special Development Fund, which provides grants and loans of longer maturity and lower interest rates to support poverty reduction. Canada is IDB s second-largest donor of grant resources and has been a steady contributor to IDB trust funds since 1996. Canada has committed $250 million to create the Canadian Climate Fund for the Private Sector in the Americas, a fund that will be managed by the IDB. The fund aims to catalyze greater private investment in climate change in Latin America and the Caribbean by co-financing select private sector projects. Canada has committed $19 million to the creation of a Canada Technical Assistance Account at the IMF. Technical expertise will help developing countries in the Caribbean, the Middle East, and North Africa increase their capacity to manage their debt and fiscal policies, and help them weather financial and economic crises. Canada shares a constituency with the Caribbean on the executive boards of the IMF and World Bank, in which the Canadian executive directors speak for Caribbean countries at board meetings. 6