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Antigua and Barbuda

Hoping for a cloudy future for Caribbean statistics

Michael M. Lokshin's picture
Photo Credit: Lou Gold

Hurricanes Irma and Maria recently devastated the Caribbean region. Infrastructure in Dominica was severely damaged and the country suffered a total loss of its annual agricultural production. The entire population of Barbuda had to be evacuated to Antigua and other islands. Estimates by the World Bank indicate that Irma caused damages equivalent to 14 percent of GDP for Antigua and Barbuda, and up to 200 percent of GDP for Dominica. The increasing frequency of hurricanes poses a threat to the economic development and wellbeing of 40 million people living in the region.

The World Bank and other development institutions acted quickly by offering support to assess damages and losses, respond to the disaster, and assist with recovery by delivering financial packages and supporting emergency operations. However, in the longer term, the focus is on building the resilience of these small island states to natural disasters.

Data: critical for responding to disasters, but also vulnerable to them

Systems of national statistics can provide critical information about the extent of a disaster, help guide recovery operations, and assess the preparedness of countries to future shocks.  At the same time, the reliance of National Statistical Offices (NSOs) on local IT infrastructure makes them highly vulnerable to natural disasters. Computers, servers, and networks cannot operate without power; flooding and high humidity destroys hardware and storage media; looting and breaking into abandoned buildings puts sensitive information at the risk of falling into the wrong hands. Fortifying NSO buildings to withstand Category 5 hurricanes and enabling the offices to continue functioning afterwards is prohibitively expensive. Even if such structures were built, staffing would remain an issue, particularly if the entire population of the country was evacuated (as in case of Barbuda).

Cloud computing provides a very effective way to resolve that problem at a small fraction of the cost.

Towards a single market for public procurement in Caribbean small states

Shaun Moss's picture
Building seawalls. Photo: Lauren Day/World Bank

The first ever meeting of the Heads of Procurement of the Organization of Eastern Caribbean States (OECS) took place on June 20-21 in Barbados with the dark storm clouds of Tropical Storm Bret as the backdrop. Fittingly, the discussion focused on how to create a common market for public procurement and to use procurement as a tool to better prepare for and respond to the natural disasters endemic to the region.

One Part of Something Bigger

Israel Mallett's picture

It has been almost four years since I first became involved with the regional public-private dialogue initiative, the Caribbean Growth Forum (CGF). In June 2012, I walked into the conference room at University of the West Indies,  Mona Campus for the Launch of the first phase of the initiative and there was something electric in the air. It was new and fresh, but old fears lingered; was this to become 'just another regional talk-shop?'

Wide-eyed and optimistic I was determined that for my small part it wouldn't turn out that way.

How does this affect the small island economies of the Caribbean?

Francisco G. Carneiro's picture
Understanding Macroeconomic Volatility: Part 4. Click to read the rest of the series

What’s the connection between financial development, volatility, and growth?

Francisco G. Carneiro's picture
Understanding macroeconomic volatility part 3
Read parts 1 & 2


There’s good evidence that a country’s level of financial development affects the impact of volatility on economic growth, particularly so in less developed countries, as the charts below demonstrate
 

Do rich and poor countries have different approaches to counter-cyclical spending?

Francisco G. Carneiro's picture
Understanding Macroeconomic Volatility: Part 2

The fact is that a government can soften a recession by increasing spending (the counter-cyclical approach) to raise demand and output. If government reduces spending (the pro-cyclical approach), the likely result is a deeper recession.

Tame macroeconomic volatility to boost growth and reduce hardship in the Caribbean

Francisco G. Carneiro's picture
Volatility in financial markets gets wide attention in the public eye. Less noticed is what we in the development world call macroeconomic volatility—faster-than-desired swings in the broad forces which shape an economy. Think investment, government spending, interest rates, foreign trade and the like.

There are three key questions to analyze: how do these forces interact, what is their effect on overall growth, and what policies are best to follow? All this is of more than academic interest: macroeconomic volatility can bring substantial hardships to millions of people

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Valerie Lorena's picture

Also available in: Français | العربية
 



A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of these journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas six miles from Bequia City in what is termed locally as the "Bequia Channel." While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind and solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth. 
 
In Mexico, young engineer Daniel Gomez runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners - Guillermo Colunga, Antonio Lopez, and Mauricio Pareja - founded SOLBEN (Solutions in bio-energy in Spanish) in their early twenties. 
 
Although Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.

5 Ways Marine Parks Benefit People

Amanda Feuerstein's picture
Photo via Shutterstock​Marine Protected Areas will be a topic for discussion at the IUCN World Parks Congress, which is opening today in Sydney.  And it should be: MPAs—which are marine spaces that restrict human activity and manage resources to achieve long-term conservation of nature—are one of the many tools for better ocean management.  This is one of the reasons the World Bank Group supports efforts to establish MPAs in countries including Indonesia and Brazil.

Every MPA is not created the same; some allow fishing and some do not, some are small and some are large, some are connected and some stand alone. When they are well planned and well executed, MPAs can help feed communities, protect jobs and boost biodiversity in the ocean. Here are the top five reasons why MPAs can be GREAT!

1. Spill Over Effects

The benefits of an MPA extend far beyond the boundaries of protection. When well planned, MPAs act as the home base for migratory species. These species use the protected area to reproduce, feed or congregate. But they do not stick around for long. This is called the “spill over effect” and it is hugely beneficial to local fishing communities. Even if fishing is restricted inside the MPA, just outside the border the fish are more numerous and far larger. For example, in Indonesia, community income increased 21 percent in 258 villages near a network of six protected areas.

Disaster Risk: Using Capital Markets to Protect Against the Cost of Catastrophes

Michael Bennett's picture
Hurricane Sandy / NOAA
Hurricane Sandy / NOAA


In addition to their often devastating human toll, natural disasters can have an extremely adverse economic impact on countries. Disasters can be particularly calamitous for developing countries because of the low level of insurance penetration in those countries. Only about 1% of natural disaster-related losses between 1980 and 2004 in developing countries were insured, compared to approximately 30% in developed countries. This means the financial burden of natural disasters in developing countries falls primarily on governments, which are often forced to reallocate budget resources to finance disaster response and recovery. At the same time, their revenues are typically falling because of decreased economic activity following a disaster. The result is less money for government priorities like education or health, thereby magnifying the negative developmental impact of a disaster.

To address this problem, the World Bank Treasury has been helping our clients protect their public finances in the event of a natural disaster. The most recent innovation is our new Capital-at-Risk Notes program, which allows our clients to access the capital markets through the World Bank to hedge their natural disaster risk. Under the program, the World Bank issues a bond supported by the strength of our own balance sheet, and hedges it through a swap or similar contract with our client. The program allows us to transfer risks from our clients to the capital markets, where interest in catastrophe bonds is growing.


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