Deodat Maharaj, Deputy Secretary General of the Commonwealth
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Caribbean
countries face a variety of serious economic challenges which act as
major impediments to their growth and development. The continued
reliance on one major export product with associated vulnerability to
economic shocks as well as natural disasters places many in this region
in a precarious position.
Nine
Caribbean countries carry unsustainable debt with two countries having
debt to GDP ratios over 100% and seven countries exceeding 75%. Overseas
development assistance has been on the decline
and is no longer an option for the large majority of Caribbean
countries. Graduation to middle income status has also meant that
concessional financing is no longer available.
Given
all these factors, one may ask what are the policy options and
resources that the region should consider to move from a “survivability
to sustainability” frame of reference. One answer is perhaps the most
obvious, which is to consider looking at the “Blue Economy”.
Caribbean
countries have jurisdiction over significant ocean areas that, in many
cases far exceed the land area of the countries themselves.
The Bahamas’ exclusive economic zone, for example, is estimated to be
242,970 square miles compared to its land area of 5,383 square miles,
whereas St Vincent and the Grenadines’ is estimated to be about 13,900
square miles, over 90 times its land area.
In
the case of St. Kitts and Nevis, the ocean space is almost 7,900 square
miles, with its land area being only 100 square miles. These ocean
areas support a broad range of activities and services, many of which
have particular economic or social value to the Caribbean. Of these,
tourism and fishing play a dominant role in the economies of many
Caribbean countries.
The
potential of the oceans to help meet our growing needs is huge, but
marine resources are under increasing pressure from overexploitation
and poor management. If Caribbean countries are to effectively develop
their ocean space to meet their needs in a sustainable way, an approach
is needed that integrates environmental management directly with
economic development, fiscal policy and social goals.
The
concept of an ocean-based economy has been embraced by many island
nations as a mechanism to realise sustainable growth. The premise being
that the oceans can play a pivotal role in tackling the longer-term
socio-economic and environmental challenges. The Blue Economy is
potentially of major value to all Caribbean countries - the opportunity
to create more value out of existing and new resource
streams cannot be overlooked.
However,
while opportunities do exist, the full potential of the ocean is not
being realized in many Caribbean countries. In truth, the ocean
can play a more central role in economies at national and regional
levels. This must include both existing benefits and uses, such as
fisheries, minerals and shipping. Among the opportunities identified as
having potential in the Blue Economy are marine fish
farming, renewable energy, ocean-related tourism and marine
biotechnology.
Changes
in the way that governments and stakeholders interact and manage ocean
space will be needed going forward. Translating new opportunities
into productive sectors will require investment in research and
development, building technical capacity, and creating the right
environment to attract and retain investment.
Attaining
the full potential of the Blue Economy may seem a daunting task.
However, many of the elements required to transition already exist.
The Commonwealth Secretariat has been working with a number of
countries in the region in this regard. National Ocean Policies have
been prepared for several countries including St Kitts and Nevis, St
Vincent and the Grenadines and The Bahamas, and we are
providing ongoing assistance to support the implementation of these
policies.
Greater
ambition is needed when it comes to the Blue Economy and the Caribbean
has to respond quickly. Seychelles now has a Ministry of Finance,
Trade and the Blue Economy. Mauritius has also recently established a
Ministry focusing on the Ocean Economy. The mandate of these new
entities is to transform economic development through the resources that
exist in the ocean.
The
challenges are many but the rewards are potentially significant. It is
time for the Caribbean to act and the Commonwealth stands ready to
support the region in this venture.