World Bank supporting Grenada’s blue economy transition

Grenada. Image: Lee Coursey

The World Bank will provide US$30 million worth of support for Grenada’s transition to a resilient blue economy:

The World Bank’s Board of Executive Directors approved a US$30 million Development Policy Credit to support Grenada in strengthening its climate and fiscal resilience and helping the country transition to a blue economy. A successful transition to a blue economy means that the people of Grenada would better manage and protect the health of their rich marine resources and ultimately achieve greater growth and prosperity from sound management of the ocean.

The program supported under this Development Policy Credit from the World Bank’s International Development Association (IDA) builds on the success of the government’s reform efforts and policy measures that strengthen fiscal discipline, and help the small Caribbean island to build buffers to better cope with natural disasters or other economic shocks. It also supports key reforms including a ban on single use plastic bags, Styrofoam containers and utensils that are severely harmful for marine health, and the establishment of a marine protected area that places under protection 15 percent of its coastal and marine ecosystems.

“Our small island has 70 times more space at sea than we do on land. Our marine and coastal resources have become the main engine of our economy and we are at the frontier of adopting climate smart development policies. This new financing will enable us to transition to a blue economy and we are well on our way towards building a truly resilient and prosperous country,” said Grenada Prime Minister Keith Mitchell.

With its rich and pristine coastline and colorful reefs, the Caribbean island has seen a rise in the total contribution of coastal tourism to GDP from 15 percent in 2005 to 25 percent of GDP in 2015, generating more than 11,000 jobs over the same period. It stands out as one of the few CARICOM countries to have adopted fiscal rules to reduce public debt. Improving economic performance has been reflected in sustained growth of 5.5 percent on average since 2014 and a substantial 30 percentage points of GDP reduction in public debt over the same period (to 71 percent of GDP). Grenada has also embarked on public sector reforms to improve service delivery and efficiency of public spending to further reduce public debt.

“The Caribbean countries’ move toward a blue economy holds a promise of sustainable growth and regional cooperation,” said Tahseen Sayed, World Bank’s Country Director for the Caribbean. “This is particularly critical for Small Island States that have a rich ocean capital that can attract private investments – from small fisherfolks to multinational companies – and create jobs and growth. We remain strongly committed to supporting Grenada and the Caribbean in this blue revolution.”

According to a World Bank report, the Caribbean Sea generated almost 18 percent of Caribbean GDP in 2012. This came from marine tourism, oil and gas, maritime shipping, and fishing activities of the islands and mainland Caribbean coastal countries.

Source: the World Bank.

[Image: Lee Coursey]

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stony Coral Tissue Loss Disease in the Cayman Islands. Photo: Cayman Islands Department of Environment, via Cayman Compass.
Stony Coral Tissue Loss Disease detected in the Cayman Islands

The Cayman Islands Department of Environment has discovered several incidences of Stony Coral Tissue Loss Disease, the devastating infection that was first discovered on Florida’s coral reefs in 2014 and has since spread across the Caribbean region. Cayman Compass reports: Cayman’s reefs are under attack from the mysterious, but deadly …

CCI-CBF Week 2020.
CCI-CBF Week: Nature-Based Solutions for our Caribbean Future

The Caribbean Challenge Initiative (CCI) and the Caribbean Biodiversity Fund (CBF) will be hosting the 2020 instalment of their annual CCI-CBF Week as a virtual event this year, from July 13 to 16, 2020. The theme of the 2020 CCI-CBF week is Nature-Based Solutions for our Caribbean Future, and there …

Coral bleaching. Image: Ken Clifton
Research finds that in the Caribbean, overseas territories are more vulnerable to coral bleaching than independent countries

According to a new study, independent Caribbean island countries tend to be less vulnerable to coral bleaching than overseas territories: “We were surprised to find that independent islands have lower social-ecological vulnerability than territories…. Territories — such as the Dutch islands of Sint Maarten and Saba — tend to be …