PM Calls for Change in CDB's Modus Operandi

Contact: John Emmanuel

Wednesday, May 23, 2001 - The 31^st Annual Meeting of the Board of Governors of the Caribbean Development Bank (CDB), opened today with a call for the regional financial institution to make a strategic shift away from financing physical infrastructure development to human development.

The call came from St. Lucia’s Prime Minister and outgoing Chairman of the CDB Board of Governors Honourable Dr. Kenny Anthony. The region’s development over the years, Dr. Anthony told his counterpart governors, was primarily seen in the light of physical infrastructure like hotels, airports and modern buildings, all coming at the expense of human and social policy development.

"With an array of external factors stacked against our traditional industries and with technology no better than that which the rest of the world has at its disposal, the critical element in our growth acceleration strategy is still the human element. If we can therefore, allow our efforts and our decision criteria to focus, as Sir Arthur (Lewis) did in his day, on the human dimensions of development financing, we will begin to unleash the tremendous potential threatening to implode our glass-house societies," said Dr. Anthony.

Governments of the region Dr. Anthony noted, needed to access resources on suitable terms of investment in social infrastructure, as they relate to effective governance. These are critical, he suggested, if only to avert the social anarchy that erodes other efforts in key industries like tourism, financial services and knowledge-based industries.

In the wake of increased global commercial competitive the CDB would also have to make other critical changes, according to Prime Minister Anthony, if it was to remain competitive and a leading financial institution in the region. Among them fostering greater private sector collaboration, simplifying and speeding up its decision making processes, and reducing red tape in relation to project implementation.

According to the Prime Minister, "The CDB must as a priority, show more empathy and flexibility, be more consumer friendly, and be speedy and unambiguous in its decision making. Moreover, the Bank may wish to consider a fast-track financing window, which can cater for the short term and immediate financing needs of member countries, albeit at a higher cost for the risks that will inevitable arise."

The Bank would however have to accomplish all this without unduly compromising quality and financial prudence, Dr. Anthony cautioned, and hinted at the idea of revising and reformulating the concept of ‘development financing."

In the end, he called for more faithful adherence to the Bank’s convention of achieving a broad geographic representation regarding staffing and the need to value its external members, in the wake of consequences being felt even today, over the French Government’s decision to withdraw from the CDB.

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