THE Inter-American Development Bank(IDB) says several of its programmes are helping the region diversify its economy and attract new investments, as the body continues to work to improve the regional business climate. According to the IDB in a press release Saturday, the body is financing several programmes, not only to improve the business environment, but also to foster diversification and enhance competitiveness in the Caribbean.
“In recent years, the IDB has approved projects that are helping to reduce the cost of doing business and improve the region’s regulatory framework, as well as enhancing the region’s capabilities to design and implement productive development policies. The Bank is also providing financing and technical support to improve the competitiveness of the private sector, particularly of small and medium-sized enterprises (SMEs),” the body said.
“In the past two decades, the region has improved human development indicators significantly, but its competitiveness and integration into the world economy remain a challenge. The recent global financial crisis and slow economic growth in North America and Europe have exacerbated the region’s needs to diversify its economy and its export base,” the IDB said.
According to the release, last year, the IDB teamed up with the Canadian International Development Agency (CIDA), and the United Kingdom’s Department of International Development (DFID) to support Compete Caribbean, a programme to foster private sector development and improve competitiveness in 15 Caribbean countries.
The release said the five-year programme provides technical assistance and investment funding to implement productive development policies, business climate reforms, clustering initiatives and SME development activities within a comprehensive private sector development framework.
“The programme supports governments, chambers of commerce and industry, academic institutions, regional organizations and private sector entities in Antigua and Barbuda, The Bahamas, Barbados, Belize, The Dominican Republic, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago,” the IDB said.
It noted that the programme integrates international best practices for private sector development and prioritizes projects that have a potential for positive impact on poverty reduction, gender equality and environmental sustainability.
According to the IDB, Compete Caribbean currently has 28 operations under development, and is expected to contribute to economic diversification, an increase in non-traditional exports, and the creation of approximately 8,000 new jobs in the region.
To increase the effectiveness of productive development policies in the Caribbean, the IDB and the United Kingdom’s Department of International Development (DFID) supported the establishment of the Caribbean Competitiveness Centre (CCC) at the University of the West Indies (UWI) which was launched last Friday.
The Centre will increase the institutional capacity to generate and share world-class and Caribbean-specific knowledge products on private sector development and competitiveness; and upgrade the technical capacity of academics, as well as public and private sector officials on cutting edge approaches to competitiveness, business climate reforms, clustering and SME development.
The IDB noted it is also working at the country level to reform tax and business incentive systems, expand access to finance, improve the business climate, and help small and medium-sized enterprises improve their productivity and become more competitive in national, regional and global markets.
In Guyana, the IDB is implementing a US$26.7M loan to increase competitiveness, foster private sector investments, and boost the country’s exports. The project supports the establishment and strengthening of the National Competitiveness Council, fostering public-private dialogue on competitiveness and the prioritisation of critical reforms to improve the business climate and enhance the country’s export potential.
Additionally, the project simplifies the business registration processes; establishes a tax structure that facilitates investment attraction, supports the implementation of the commercial court system; and upgrades the legal and regulatory framework and credit information to increase access to finance.