WASHINGTON — The World Bank’s Board of Executive Directors approved a US$30 million Development Policy Credit to support St. Vincent and the Grenadines (SVG) in strengthening its climate and fiscal resilience for promoting a blue economy.
“St. Vincent and the Grenadines is embarked on a medium-term reform programme to strengthen fiscal buffers and reinforce climate resilience,” said Tahseen Sayed, World Bank’s Country Director for the Caribbean.
“Together with other small island economies in the Caribbean, it is also seeking to transition to a blue economy through a sustainable management of its ocean and coastal resources. The World Bank is committed to support the Caribbean countries’ in environmentally sound management of the blue economy.”
As a small island economy, SVG is highly vulnerable to natural disasters and external shocks. The average GDP losses from natural disasters between 1998 and 2017 are estimated at 1.2 per cent per year — more than half the GDP growth rate over those two decades.
In addition, SVG experienced volatile growth due to its limited economic diversification and fiscal policies.
The programme supported under this Development Policy Credit from the World Bank’s International Development Association (IDA) will help the Caribbean nation to build a more resilient economy by strengthening fiscal policy, promoting more effective public financial management and building buffers to better cope with natural disasters or other economic shocks.
It will also support the countries efforts to transition to a blue economy by building on its natural assets, and reinforcing climate resilience.
For instance, it will support the phase out of coastal sand mining and the implementation of the recently approved National Oceans and National Fisheries policies to strengthen the spatial planning and management of ocean and coastal resources, including fisheries.
This Development Policy Credit, the first in a series of two, is being complemented by technical and capacity support to promote fiscal and climate resilience, and the blue economy.