Act now to build resilient, diversified economies, says CDB chief

The Caribbean urgently needs to overhaul its economic model to tackle vulnerabilities, reduce reliance on tourism, and create a resilient, competitive business environment, the President of the Caribbean Development Bank (CDB), Daniel Best, warned on Friday. 

Speaking at the Barbados Chamber of Commerce and Industry’s (BCCI) annual luncheon on Friday, he called for bold reforms to ensure the region’s survival in an increasingly volatile global economy.

The Caribbean must act decisively to restructure its economy, reduce vulnerabilities, and create a more resilient and competitive business environment, Best told business leaders and policymakers.

He called for an overhaul of the region’s economic approach, highlighting high migration rates of skilled professionals, growing youth crime, and an overreliance on tourism as indicators that the current model is unsustainable.

He further noted that economic resilience must be the foundation of any sustainable development plan, stating that the Caribbean cannot afford to be passive in the face of global challenges.

Best highlighted the region’s heavy reliance on imports, lack of reserve currencies, and vulnerability to external shocks as major weaknesses that need urgent attention. He noted that tourism accounts for 60 per cent of the island’s foreign exchange earnings, making it particularly susceptible to global disruptions.

Joining the nationwide call for diversification, the CDB president said the move is not just an option but a necessity for the survival and long-term prosperity of the Caribbean. He pointed to other small island developing states (SIDS) that have built resilience through export diversification, stressing that the Caribbean must follow suit.

“Diversification is not just a strategy. It is a necessity for economic survival and long-term prosperity,” he said. “We must establish business ecosystems that create dynamic, internationally competitive firms.”

He stressed that economic ecosystems must be conducive to growth, ensuring that firms can compete globally. He further warned that weaknesses in infrastructure, finance, regulations, and human capital would only push businesses to invest elsewhere.

Best also made a strong case for strengthening regional supply chains, particularly in agriculture and food production, to reduce reliance on global markets and improve food security.

“If we are to move goods smoothly from farm to table across borders, we must align our legislative and regulatory frameworks, logistics infrastructure, and key policies region-wide,” he said, noting that the pandemic exposed the region’s dependence on food imports, with global supply chain disruptions leaving some countries vulnerable to shortages.

“With the world facing unprecedented challenges—climate change, geopolitical instability, economic shifts—we simply cannot afford to wait.”

Unveiling what he said was CDB’s new private sector strategy designed to enhance business competitiveness and increase access to finance for micro-, small-, and medium-sized enterprises (MSMEs), Best listed improving access to finance, enhancing regulatory efficiency, accelerating the transition to sustainable energy, and expanding opportunities for women entrepreneurs as key components.

A major initiative under this plan is a new trade financing programme aimed at increasing Caribbean exports by reducing financial risk for businesses.

“We are actively designing and will deliver to the region a new CDB trade financing programme which will unlock new opportunities for Caribbean trade by partnering with local financial institutions through a tailored risk-sharing initiative,” he announced.

He also highlighted CDB’s ongoing support for renewable energy projects, including the development of geothermal energy in Dominica and exploration in Grenada, St Kitts and Nevis, and St Vincent and the Grenadines as part of an effort to lower energy costs and improve resilience.

“The private sector must lead the charge—not just as the engine of economic growth but as a driver of systemic change,” he said. He further urged business leaders to push for regulatory reforms, invest in research and innovation, and partner with educational institutions to develop a more skilled workforce.

He also encouraged businesses to embrace technology, advocate for better policies, and support initiatives that make the region more competitive.

“The global landscape is shifting rapidly, and we cannot afford to stand still,” he said, challenging policymakers and business leaders in attendance.

He urged action, arguing that failure to act now will leave the region at a disadvantage in an increasingly competitive world.

“The decisions we make today will determine whether the Caribbean is a passive player in a changing world or a region that takes control of its own destiny,” he said.

As president of CDB, his position was clear: “I choose ambition over complacency, action over rhetoric, and transformation over stagnation. And I know that if we work together with urgency and purpose, we will build a region that is not just resilient but thriving.”

“The time is now. Let’s get to work.”

(SM)