OpEd: Fast-Tracking Caribbean COVID-19 Recovery and Resilience – South Florida Caribbean News

by Deodat Maharaj, Executive Director Caribbean Export Development Agency

Deodat Maharaj Executive Director of the Caribbean Export Development Agency

[BRIDGETOWN, Barbados] COVID-19 continues to wreak havoc in 2021. BBC hasreportedthat as of1stof February2021, more than100 million people have been infected with the virus. 2.2million people have diedacross nearly 200 countries. Thereare still over382,000new cases every day.Although both rich and poor countries have faced the full wrath of thepandemic,the difference is,the developed countriesare buffered by their wealthenabling themtorecover faster than anyone else.

On the other hand, we in the Caribbean continue to take a battering. Much like our shorelines during a hurricane. But,unlike a Hurricane Irma or Maria,which created unprecedented destruction in a matter of hours in 2017,with COVID-19, soon it will be almost one year thatthis pandemic has been inflictingcontinuoushardship onthelives and livelihoodsof our people.

Caribbean countries have largely managed well from a public health perspective.However, on the economic side, notwithstanding best efforts, the impact has been harsh.Tourism as the mainstay of the regions economyhadseenrecordtourist arrivalsin 2019of 31.5million stayover visitors. It is now a mere trickle.Given that tourism accounts forbetween 34 and 48 percent of totalGDP in countriessuch asThe Bahamas, Barbados, and Jamaica. Theeffecthas been massive.

Looking ahead,it is not all doom and gloom. Wehave a unique opportunity to press the reset button onourdevelopment agenda with businessbecominga keypartner on the path to recoveryand resilience. To achieve this,Caribbean countriesfirstlyrequire a sustained and forensic focusto createtheenabling environment for business to flourish.The World BanksEase of Doing BusinessReport2020ranksmostCaribbean countries in the bottom half of countries globally. The exceptions are Jamaica and St Lucia whichareranked at71 and93respectively.

Caribbean countriescan and must do better. There is no prize for second place in this increasingly competitive world.Wemust accelerate efforts to improve the ease of doing business,including the establishment of special purpose unitswith the exclusive responsibilityforbreaking down of barriers to doing businessandfast-trackingimplementation ofhighprioritypolicies.We also need to look at other experiences. Mauritius isasmall island faced with similar challenges like the ones we have. Nonetheless, they have consistently improved in their ease of doing business ranking. And, in the same2020World BankReport wasranked 13 in the world. This is higher than Australia,Canadaand Germany.WecancertainlylearnfromMauritius.

Secondly and closelyconnected to the ease of doing business is the imperative of attracting foreign direct investment to generate jobs,growthand prosperity.ThoughCaribbean countries have been makingconcertedefforts to attract foreign direct investment, the results have been mixed.There areindividual success stories including in the natural resourcerichcountrieslike Trinidad and Tobago and Guyanaas well as in the tourism sector. However,we are not attracting foreign direct investment on the scale required to achievethe creation ofmuch needed jobsand generate inclusive growth.

Like everywhere else,COVID-19 has accentuated thechallenge of attracting investment. TheEconomic Commissionfor Latin America and the Caribbean4had projected a decline in foreign direct investment to Latin America and the Caribbean in 2020by about50%. With many economies across the Region ina state ofprolonged shutdown,the downward investment trend for 2021 is expected to be even more precipitous.

Newstrategies and approaches are requiredto bring investment to our shores. These include proposingprojects that are regional,wheremore than one countrycan be packagedto an investor.There is strength in numbers.Caribbean Export has already started working to strengthen and improve the Regions capacitiesto attractforeign direct investment. Itsupportsthe Caribbean Association of Investment Promotion Agencies(CAIPA)to increasecollaboration amongnationalinvestment promotion agencies.Also,Caribbean Exportinconcertwith CAIPA has identified strategic sectors for targeting such asagrotechnology; businessprocess outsourcing;renewableenergy; andbiotechnology.

Thirdly, weneed toramp upsupport to micro, small and medium sized businesses. These businessesare the lifeblood oflocal economies.They need to beinnovative, agile and leveragetheopportunities provided by digitalization.Going forward, a package of support is required combining know-how,access to financeandinnovation.

Caribbean Exportprovidesfinancialsupport to firms through its Direct Assistance Grants Schemeand Direct Support Grants Programmewith funding from the European Union.These grantsassist regional firms tomeet the financial challenges brought on by thepandemic. It also helpsbuild their competitiveness and export capacity. Caribbean Export isalsoproviding direct technical assistance to firms.Much more needs to be done.

Finally, regional integrationisindispensable.Simply put,as individual states, ourpopulations and markets are too small in this vast global marketplace. Therefore, actingindependently or singularly is no longer an option.Working collectively is the only way.Building trade, investment and overall business relationships outside the English-speaking Caribbean is also critical.Thework of Caribbean Exportin bringingthe CARICOM countries and the Dominican Republic together is a good example which must be supported.

In summary, creating an enabling environment for business to flourish, adopting new approaches to attracting foreign direct investment is vital. In addition, supportingenterprises at the local level are all vital to fast track COVID-19 recovery. Caribbean Export as the lead agency for private sector developmentin the Region is committed to this agenda to help create jobs,growthand prosperity for our people.

Deodat Maharaj is the Executive Director of the Caribbean Export Development Agency. Deodat can be reached at:dmaharaj@carib-export.com(Twitter: @deodat_maharaj)