JAI LELADHARSINGH
THE CARIBBEAN Development Bank's publication, titled 'A Policy Blueprint for Caribbean Economies,' presented a vision for regional economic transformation. The effectiveness of these strategies depends on recognition of the importance of building resilience in all aspects of development. The foundations of the proposed strategic pillars are:
* Macroeconomic: promoting economic growth and diversification, building a strong and resilient financial sector, and practising prudent fiscal management.
* Productivity and competitiveness: supporting private-sector-led growth, opening new trade markets, promoting regional payments facilities (and the digitalisation of the economy more broadly), and building first-class and cost-saving infrastructure.
* Human Development: providing quality education for all and relevant workforce skills training; improving citizen security; and targeting conditional cash transfer programmes to the most vulnerable; linking the educational development policies to future economic development spheres.
* Environmental: improving building codes enforcement, insurance coverage, and financial and physical disaster and climate change preparedness.
The advent of the covid19 global pandemic did not assist the Caricom nations, particularly Trinidad and Tobago, in realising economic recovery and businesses were reeling under unprecedented lockdowns, severe loss of business and jobs. However, we are saddled with the realities of economic strategies that have failed to provide the levels of sustained growth necessary to build a competitive business ecosystem and a resilient and diversified economy.
Hence, TT and perhaps the wider Caribbean are saddled with the following challenges in the context of the above strategic pillars. Referencing the CDB's publication, the existing challenges are:
Macroeconomic
Low economic growth; high debt, low savings and declining reserves; declining trade flows; poor sovereign debt ratings; financial sector vulnerabilities and stability risks.
Productivity and competitiveness
Low rankings in the World Bank Ease of Doing Business Index; large infrastructure gaps and a poorly designed road network; weak governance; inefficient transport links; increasing energy costs.
Human development
High poverty and unemployment; very high youth employment and poor education outcomes; high crime and citizen insecurity; limited data available for designing and measuring effective strategies.
Environmental
High disaster costs; low insurance payouts; insufficient building codes; poor climate change adaption tools.
According to the CDB economist, Justin Ram, the development challenges highlighted above are interlinked. For example, poor human development outcomes have significant impacts on the macroeconomic frameworks via government spending on blanket social programmes.
Low productivity and lack of competitive environments for the private sector to thrive have limited employment opportunities. Furthermore, micro, sm
