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Caribbean Regional
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Improved Business Environment-Int'l Standards |
538-004 |
2,839 |
|
|
| Improved Environmental Management |
538-005 |
883 |
|
|
| Increased Efficiency of Legal Sysems |
538-006 |
1,002 |
|
|
| Enhanced Caribbean Response to the HIV/AIDS Crisis |
538-008 |
2,013 |
|
|
| Open Trade |
538-009 |
2,949 |
8,755 |
10,922 |
| HIV/AIDS |
538-010 |
3,016 |
4,695 |
4,733 |
| Disaster Rehabilitation and Preparedness |
538-011 |
|
42,287 |
|
| Transfer -- ESF |
|
2,584 |
5,952 |
|
| Total (in thousands of dollars) |
15,286 |
61,689 |
15,655 |
|
The Development Challenge: The Caribbean Region consists of 23 relatively small independent islands, dependent territories, and sovereign states. Their small size, isolation from markets, susceptibility to natural disasters, and general ecological vulnerability make the Caribbean a special case for development. A loss of trade preferences for key crops such as bananas and sugar and limited economic diversification are contributing to decreased economic growth throughout the eastern Caribbean region. Tourism and remittances are now the largest sources of growth in the region. In 2003, Trinidad and Tobago and Grenada led the region in economic growth with rates of 6.7% and 5.7%, respectively. Growth in the other islands ranged between 1% and 2% and economic activity in Guyana contracted in 2003. The decreased growth in the region, coupled with limited confidence among the island nations that they can compete successfully in an open trade environment, is contributing to slowness in recognizing and seizing the opportunities that an open trade environment can provide. Instead, a preference for retaining "special and differential status" is impeding the ability of the countries to outline a clear course of action to achieve a more competitive posture for effective participation in the global marketplace.
On the social side, more than 440,000 people are living with HIV in the Caribbean, including 53,000 who were newly infected in 2004. The Caribbean region has the second highest regional HIV prevalence rate in the world, second only to sub-Sahara Africa. Women in the 15-24 age group are being infected at a significantly faster rate than men in the same age range and AIDS has become the leading cause of death for both men and women aged 15-24. The spread of HIV/AIDS is being aided by stigma and discrimination which keep the disease underground and discourage persons from being tested and seeking treatment. Significant mobility of the region's peoples suggests that a truly regional approach to combating HIV/AIDS, coupled with selective national level interventions, is essential for success. Limited surveillance data at the national and regional levels impede targeting of assistance that would ensure the greatest impact in slowing the spread of HIV/AIDS. Unless the region's response to HIV/AIDS becomes better coordinated and targeted, HIV/AIDS will become an ever increasing threat to the region's population and sustainable development goals.
Other problems are no less significant. Reduced economic growth as a result of diminished competitiveness of traditional sectors is contributing to increasing fiscal deficits in the region and unsustainable debt burdens. Governments are less able to make the social investments to thwart upward trends in crime and violence and unemployment and vulnerability to drug trafficking and related corruption. Tourism is the backbone for the region's economic vitality; yet its success threatens the region's precious natural resources which attract tourists to the region in the first place.
By virtue of their geographic location, small size and topography, the countries of the region are inherently susceptible to a wide range of natural disasters (some on an annual basis), including hurricanes, flooding, landslides, and earthquakes. In September 2004, Hurricane Ivan devastated Grenada and caused millions of dollars of damage to Jamaica, the Bahamas and the Cayman Islands. Later, Dominica and Trinidad were shaken by sizeable earthquakes. Although the region has always been vulnerable to these natural hazards, the catastrophic effect of Hurricane Ivan in the region was a sharp reminder of the importance of increased attention to disaster risk reduction and mitigation as an integral component of economic planning and development plans.
The Caribbean region is taking a number of steps to overcome some of the challenges noted above. This includes supporting the creation of a Caribbean Single Market and Economy (CSME) starting in 2005 as an essential factor into achieving the economies of scale that will enable the countries of the region to compete more effectively in the global marketplace. Most of the countries in the region have deep-rooted democratic institutions and score among the upper half of all countries on most measures of good governance. Nevertheless, maintaining good governance is an increasing challenge, especially in the areas of accountability, corruption, and rule of law. Crime, exacerbated by diminished growth and unemployment, especially among young people, is a serious and growing problem throughout the region.
U.S. strategic goals in the Caribbean derive from its geographic proximity to the United States; homeland security concerns; and the threat from transnational crime and drugs in the region. The small countries of the region are important partners for trade, health, and education issues, as well as for promoting democracy in the hemisphere. They are also working closely with the United States to address issues related to drug trafficking, migrant smuggling, and financial crime, in order to mutually enhance security throughout the region.
The USAID Program: USAID's Caribbean Regional Program (CRP) is designed to help the region become globally competitive both in trade and in quality of life such that its citizens can find sufficient opportunities in their home country and/or region to mitigate the significant migration trend of many of the best skilled in these societies. USAID focuses its limited resources on two of the most urgent challenges facing the islands: the need to become competitive and participate more effectively in an open trade environment and to combat the spread of HIV/AIDS throughout the region.
The program's first objective, Region Positioned to Succeed in an Open Trade Environment, includes activities that will help targeted business sectors in the region meet the requirements for successful participation in the global marketplace. In addition it also aims to help reduce constraints to small business growth and development, identify and leverage market opportunities, as well as strengthen the legal and environmental frameworks to support open trade and sustained growth. The program's second objective, Enhanced Regional Response to the Caribbean HIV/AIDS Epidemic, will help improve the availability and use of accurate reliable information on the disease; increase the numbers of health care providers and public health professionals with specialty training in HIV; and increase access to and availability of critical HIV/AIDS services. As a result of the devastation in the region caused by Hurricane Ivan, especially in Grenada, a Special Objective entitled "More Secure Lives and Livelihoods for People in Grenada and other Caribbean Islands Affected by Hurricanes" was created and funded with supplemental $42 million disaster assistance resources. This 12-month program will help the region recover, rebuild, and resume the path to sustainable development.
Other Program Elements: In addition to the resources requested in the program data sheets, the Caribbean region benefits from an initiative funded by USAID's Office of Foreign Disaster Assistance for activities to promote sustainable development through reduced risk and losses from natural hazards in the Caribbean. The Caribbean Regional Program also benefits from the Centers for Excellence in Teacher Training Presidential Initiative, which is funded by the Bureau for Latin America and the Caribbean's Office of Regional Sustainable Development. The USAID Mission in Jamaica manages the Caribbean Center for Excellence in Teacher Training, which is strengthening the teaching of reading skills for grades 1-3 in six countries throughout the Caribbean, e.g., St. Vincent, St. Lucia, Grenada, Trinidad and Tobago, Belize, and Jamaica, and contributes generally to the mission's efforts to strengthen the human resource base for the region's trade competitiveness.
Other Donors: Several bilateral donors are implementing programs that complement USAID's programs in the region. The Canadian Agency for International Development has a region-wide program which focuses on competitiveness, trade policy, financial sector reform, institutional strengthening, disaster management, and HIV/AIDS. The British Department for International Development has programs in the region to help reduce poverty, fight HIV/AIDS, and meet the challenges of globalization. The European Union (EU) provides significant resources for agricultural adjustment and development as well as other private sector development. Japan, France, China and Kuwait, among others, also provide bilateral economic assistance to the region.
Several UN agencies are also providing assistance to the region, primarily in health and combating HIV/AIDS, constitutional reform, and disaster management. The Caribbean Development Bank (CDB) and the World Bank are the principal financial institutions engaged in the region. Through their various loan and grant programs, both organizations finance roads, transportation, education, disaster management, and poverty reduction. The Inter-American Development Bank also has programs in a few of the larger countries, but reaches the smaller ones through the CDB.
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