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Caribbean Regional
>> Regional Overview >> Caribbean Regional Overview
Development Challenge Summary Tables
Program Summary
USAID Search: Caribbean Regional Program
Previous Years' Activities
2001, 200000
Introduction
U.S. foreign policy interests in the Caribbean are guided by the 1997 Bridgetown Barbados Summit accord, which commits the United States and signatory Caribbean nations to implement plans of action that promote free trade and economic development; safeguard the natural environment; and enhance justice and security. USAID's Caribbean Regional Program (CRP) is in response to U.S. commitments and responsibilities under the plan of action, and, beginning this year, the CRP will implement significant programs to address the HIV/AIDS epidemic in the region.
For the United States, the Caribbean constitutes our "third border." Its proximity to, and the large number of its residents in, the United States, as well as its importance as a U.S. tourist destination means that joblessness, the HIV/AIDS epidemic, drug trafficking, environmental degradation and recurrent natural disasters in the Caribbean directly affect the United States' well-being.
The close cooperation of Caribbean governments in areas of drug interdiction and money laundering is an on-going exercise. Yet such cooperation depends on efficient legal systems and the capacity of Caribbean authorities to introduce and sustain effective judicial programs in the face of economic hardships and the continuing demise of traditional sources of income. Deterioration in economic, social or political conditions in these small countries will lead to increased levels of unemployment, crime and illegal immigration to the United States. The United States is also committed to completing the Free Trade Area of the Americas (FTAA) process by 2005 in order to expand markets for U.S. goods and services and help insure safe destinations for U.S. foreign investment and tourism.
The Development Challenge
The primary development challenge in the Caribbean is to reduce poverty through the promotion of sustainable growth. Historically, these countries have faced special development challenges because of their small size, dependence on preferential trade regimes, and their vulnerability to natural disasters and other external shocks. Elevated HIV/AIDS incidence (now the leading cause of death among 15-44 year olds) has introduced another major development challenge to the region.
These small island nations have small domestic economies and depend vitally on export revenues and tourism as the mainstay for growth. Most have received preferential trade status from the United States, Canada, the United Kingdom and the European Union. Such treatment has distorted investment in the region toward those industries that received preference, particularly bananas and sugar. The removal of trade preferences is causing economic hardships, and fuels the debate over the special needs of small island states midst the growing trend towards globalization. At a more basic level, these small island countries often lack the capacity to carry out analyses required for implementation of Free Trade Area of the Americas and World Trade Organization standards.
Heavy reliance on relatively few exports and tourism products and the relatively high cost of telecommunication services has further constrained growth. Breaking into new export markets continues to be difficult for small and medium-sized Caribbean producers. Trade in services provides real opportunity for expansion. But in order to do so, competitiveness needs to be improved and modern information technology needs to be adopted on a wide-scale. In addition, there is the further complication of inadequately trained labor. Even in the critically important tourism industry, where comparative advantages are apparent, growth - while certainly positive - has been constrained by intense regional competition. Furthermore, the region has yet to capitalize on the phenomenon of cruise-ship passengers - the fastest growing category of visitors to the Caribbean. The simple fact of economic life is that few Caribbean destinations have upgraded their tourist product to take advantage of cruise-ship passengers' spending.
Environmental problems arise from inadequate and inappropriate waste management, land use practices and coastal zone management. Most of the countries offer environmental services to some of their residents; but proper land use practices are often not in effect, and coastal zone management suffers from inadequate planning, regulation and enforcement. Environmental services are offered free of charge, posing a financial burden on the governments' fiscal balances and contributing to inadequate and unsustainable services and regulations. Discussions with environmental partners point to the need to share information on environmental management "best practices" to consolidate and improve policy/regulatory reforms in the region. Greater environmental investment is critical, especially within the private sector tourist industry, and there is consensus on the importance of establishing uniformly higher environmental standards; strengthening compliance with environmental laws and regulations; and raising public awareness and reporting on environmental issues.
Large civil and criminal backlogs exist in virtually all Caribbean judiciaries. The painstaking process of court reporting and case-flow management compounds the problem. Civil case backlog and court delays raise the cost of doing business, and discouraging private investment and growth in the region. The inability of courts to enforce collection of debts in a timely manner raises the cost of borrowing money. Less well off individuals and small and micro enterprises are particularly disadvantaged by inefficient judicial systems. Better information management along with procedural and organizational reforms is needed to streamline court and registry procedures and improve efficiency of the legal system without affecting judicial outcomes. Alternative Dispute Resolution mechanisms including negotiation, mediation, and arbitration, need to be introduced to handle certain types of cases now contributing to court system congestion.
The Caribbean Regional Program also recognizes the special needs of small island nations in dealing with hurricanes and tropical storms which periodically wreak havoc in the Caribbean. The destruction caused in September 1998 by Hurricane Georges, especially in St. Kitts & Nevis and Antigua & Barbuda, and in November 1999 by Hurricane Lenny, especially in Grenada, Dominica, St. Lucia and Antigua & Barbuda is being addressed under separate "special objectives" which will be completed by December 2001.
USAID's Caribbean Regional Program (CRP) is a recent initiative (FY2000 through FY2004) that focuses on achieving four regional strategic objectives: increased employment and diversification in select non-traditional activities; improved environmental management by public and private entities; increased efficiency and fairness of legal systems; and enhanced Caribbean response to the HIV/AIDS crisis in target countries. There are also two special objectives related to Hurricane Georges and Hurricane Lenny recovery and reconstruction. These objectives are consistent with the Agency's goals of broad-based economic growth, protecting the environment, stemming the spread of HIV/AIDS, building sustainable democracies (with a focus on rule of law) and humanitarian assistance. While the two CRP special objectives are nearly complete, activities under the first three strategic objectives are still getting under way. In these cases the procurement of technical and management services is well advanced, and several partners are already engaged. In the case of HIV/AIDS objective (which was approved March 2001), the overall design work has been completed.
Initiated in FY 2000, the activity to increase employment and diversification in select non-traditional activities to date has provided technical assistance in drafting of the Barbados telecommunications legislation; development of a website connecting regional trade ministries; and assistance in drafting of sanitary and phytosanitary legislation prerequisite to advancing agricultural trade. In addition, training is planned to strengthen the CARICOM Regional Negotiating Machinery and to sensitize the regional private sector on the need to promote competitiveness.
Activities to improve environmental management by public and private entities are also just getting under way. However, during this past year, "best practices" related to small hotels environmental management were documented, and a grant agreement was reached with the Organization of American States (OAS) that will improve environmental management systems of small hotels, and provide a framework for "green certification". In addition, the new OAS grant will help Caribbean communities establish and manage eco-tourism sites and attractions.
USAID-funded activities are also under way to improve the administrative efficiency of Organization of Eastern Caribbean States (OECS) courts by improving case-flow management, introducing more efficient court reporting, and expanding the use of alternative dispute resolution mechanisms. During this past year, USAID provided technical assistance to the OECS Supreme Court to develop a work plan and budget for streamlining court administration, and subsequently assisted the OECS Supreme Court to implement key elements of that plan. This has included developing plans for professional court reporting and improved case reporting systems, training court staff in operations under the new Supreme Court rules, developing a comprehensive judicial and administrative training plan, and working with the Caribbean Law Institute to promote use of Alternative Dispute Resolution mechanisms.
With respect to hurricane recovery, the USAID assistance for Hurricane Georges is close to completing reconstruction of a pediatric ward for the Joseph N France Hospital in St. Kitts, has procured medical equipment for that hospital, and has introduced mitigation management skills throughout the region. Under the Hurricane Lenny reconstruction program, USAID is currently repairing sea walls and coastal roads in Grenada, Dominica and St. Lucia, and is providing training for the design and maintenance of coastal infrastructure.
Other Donors
The other major donors providing support in the Caribbean region are the European Union, the World Bank, the Inter-American Development Bank, including the Multilateral Investment Fund and the Caribbean Development Bank. Canada and the U.K. are the major bilateral donors. With the start-up of the Caribbean Regional Program, the U.S. will rank as the largest bilateral donor in the Eastern Caribbean.
FY 2002 Program
To increase economic diversification in FY 2002, USAID will address competitiveness for Caribbean firms in international markets and increase its assistance to improve information technology skills in the region. A scholarship and internship fund will be established to promote private sector Caribbean leadership in the global economy and build understanding in key economic and financial areas. USAID will continue to promote the adoption of best environmental practices especially in the tourism sector, strengthen environmental policy throughout the region and stimulate environmentally sound investments. To improve the region's legal system, USAID will invest in improved case flow management and efficiency and support improved access by judges to information and training. Increased funding in FY 2002 will allow USAID to further strengthen national HIV/AIDS plans in target countries and support NGOs in the region that work in HIV/AIDS prevention.
Two new activities in their initial planning stages will promote economic expansion and tourism in the region. One initiative will provide technical assistance to both the public and private sector in the area of transportation management. The other will finance and promote disaster mitigation in the public and private sectors. Both of these activities will be managed by other agencies.
Activity Data Sheets
- 538-003 Hurricane Georges Recovery and Reconstruction in the Eastern Caribbean
- 538-004 Increased Employment and Diversification in Select Non-traditional Activities
- 538-005 Improved Environmental Management by Public and Private Entities
- 538-006 Increased Effectiveness and Efficiency of Legal Systems in the Caribbean
- 538-007 Hurricane Lenny Recovery in the Eastern Caribbean
- 538-008 Enhanced Caribbean Response to the HIV/AIDS Crisis in Target Countries
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Last Updated on: February 12, 2003 |
