CDB: Assisting Caribbean nations to finance social, economic programmes

People may ask what is the CDB and what does it do? It is a financial institution based in Barbados. The Bank was established to contribute to the harmonious economic growth and development of its Borrowing Members Countries (BMCs), and to promote economic cooperation and integration among them, having special and urgent regard to the less developed countries of the Region.

The bank, according to its brochure, has over time lent to government and government-assisted entities hundreds of millions of dollars, but this does not mean it is averse to lending to the private sector. As a matter fact, the CDB, apart from providing financing to its BMCs and many public sector entities with a government guarantee, helps the private sector from its Ordinary Capital Resources (OCR) and its Special Funds Resources (SFR).

In addition, CDB has a serious role to play in assisting its BMCs to reduce inequality and halve the incidence of extreme poverty by the end of 2025.

The bank’s work is anchored in the institution’s 2015-2019 Strategic Plan with its two complementary objectives which are to support inclusive and sustainable growth; and to drive the development and promotion of good governance. These two objectives are being supported by the mainstreaming of three crosscutting areas – gender equality; regional cooperation and integration and energy security.

CDB’s support when it comes to achieving inclusivity and sustainable growth and development in BMCs will be realised through investments in economic and social infrastructure; education and training; private sector development; environmental management; climate resilience; energy efficiency and renewable energy.

Many countries in the Region have already been recipients of loans - small and large – and for many different reasons and in very different sectors. The bank’s lending activities are divided into two major categories – Ordinary Operations, which is financed by the OCR, and Special Operations, financed by the SFR. But sometimes a project may combine aspects financed as Ordinary Operations and the other aspect financed as Special Operations.

Over the years, the bank has contributed to the development process in the Caribbean through interventions in various sectors including agriculture and rural development; manufacturing and industry; financial, business and other services; tourism; transportation; communication; environmental sustainability and disaster risk reduction; power; energy; water and sanitation; social infrastructure and service and mining and quarrying.

To assist the bank in achieving these goals it helps the BMCs to optimise the use of their resources, develop their economies and expand production and trade. The bank also promotes private and public investment, encourages the development of financial upturn in the region and facilitates business activity and expansion.

The bank also mobilises financial resources from both inside and outside the Region for development and at the same time providing technical assistance to its BMCs.

It also supports regional and local financial institutions and a regional market for credit and savings and supports and stimulates the development of capital markets in the Region.

The Caribbean Development Bank in a statement said it intended to be “the leading catalyst for development resource into the Region, working in an efficient, responsive and collaborative manner with our Borrowing Member (BMCs) and other development partners towards the systematic reduction of poverty in their countries through social and economic development”.