Country Private Sector Diagnostic

Regional Private Sector Diagnostic: Promoting Private Sector-led Growth to Foster Recovery and Resilience in the Caribbean

June 7, 2023

The 12 Caribbean countries (CARI-12) featured in this regional private sector diagnostic (RPSD) have abundant natural resources, which they have been relatively successful in leveraging to drive economic growth and development over the past two decades. However, the COVID-19 crisis has highlighted the limitations of the Caribbean economic model, as well as the need to bolster regional links, economic diversification, and greener, more inclusive growth. This RPSD comes at a crucial time, in the aftermath of the pandemic, as the region seeks new opportunities for the private sector to drive long-term growth and development. By addressing their key vulnerabilities and implementing a more favorable investment climate, the CARI-12 can accelerate the development of the private sector, support economic recovery, and create jobs. To this end, this report examines the main cross-cutting constraints on private investment and offers recommendations for addressing these.

The report also assesses the potential from better leveraging digital services and renewable energy to advance green and inclusive development. Leveraging digital services could be transformational in the region, enhancing the quality and inclusiveness of public services, increasing the productivity of traditional sectors, and repositioning the region in newer and more complex services. Similarly, transitioning to renewable energy could generate green growth, jobs, and diversified income, while also mitigating the region’s dependence on imported heavy fuels and reducing costs for key sectors such as tourism.