Feature Story : UNDP and EU supporting strengthened economic and financial
management in the Caribbean
 The
Caribbean, a region of Small Island Developing States (SIDS) is diverse in
population, land mass, income, ethnic composition and political status.
Collectively as a region, Caribbean States record comparatively higher levels of
development relative to other developing countries. This is consistently
illustrated in high and medium human development rankings which take account of
economic, social and governance indices which include life expectancy, women in
parliament and literacy. However, it is globally recognised and measured by MDG
8 that SIDS with small, open single commodity economies, many with a limited
natural resource base are highly susceptible to shifts in economic conditions in
global competitive markets. Being prone to natural disasters, economic
vulnerability and social vulnerabilities, the region initiated a strategic
programme of assistance to support macroeconomic reforms to enhance the
resilience of Caribbean economies. The decision to establish the Caribbean
Regional Technical Assistance Centre (CARTAC) Programme in 2001 was therefore
timely as it provides specialized macroeconomic, fiscal and monetary advice and
capacity development support to 20 Caribbean Community (CARICOM) Member States.
CARTAC is the Caribbean’s first Paris Declaration modeled project with donors
pooling funding commitments to support agreed common programme goals and
objectives.
Donor Coordination
In the Caribbean, the UNDP-EU partnership supported this unique and innovative
CARTAC programme, as a cost-shared UNDP coordinated project, executed by the
International Monetary Fund (IMF), which facilitates a donor coordinated funding
modality and specialized advisory support. The CARTAC Phase III Programme
Document captures the continued development of this Regional Centre and its
capacity building programme that provides technical support to strengthen tax
and customs administration, public financial management, financial sector
regulation and supervision, statistics and macroeconomic analysis.
CARTAC supports a sector-wide assistance to the Caribbean Region bringing
together national, bi-lateral and multi-lateral contributions coordinated around
the delivery of macro-economic, fiscal and financial sector assistance
supporting both institutional and human resource enhancement. The original
grouping of bilateral and multilateral agencies providing support included the
Caribbean Development Bank (CDB), The European Union (EU), Canadian
International Development Agency (CIDA), Department for International
Development (DFID), the Government of Ireland, the International Monetary Fund
(IMF), United States Agency for International Development (USAID), United
Nations Development Programme (UNDP) and the World Bank (WB).
Independent mid-term reviews lauded CARTAC’s work and effectiveness in building
capacity over the 8 years of the Project’s life, which led to donors providing
additional resources to extend the CARTAC work programme over a third Phase
(2008-2010) with US$22Mn in funding. The programme is characterized by a
governance structure that supports:
i. Strong regional ownership, strategic guidance and oversight: CARTAC has a
Steering Committee chaired by a Central Bank Governor with high level national
finance officials as well as donor representation.
ii. Anchoring the project in a human development frame taking into account
impacts on social and gender dimensions as well as the importance of Results
Based Management (RBM).
iii. Regional Capacity Building: Implemented through well-structured workshops
and training sessions
iv. Some primary positive outcomes include the development of home-grown
stabilization and growth programme for OECS countries: Eastern Caribbean Central
Bank/the Structural Adjustment Technical Assistance Programme (ECCB/SATAP);
supporting 5 countries in the introduction of VAT; updating banking regulations
to meet international standards (BASEL); modernization support for PFM
processes.
Phase III of this multi-donor funded programme is funded by CIDA, which provides
the largest cost-sharing contribution, with DFID, EU and CDB providing
complementary funding to meet expanding technical assistance requests to
mitigate economic crisis outcomes. The 20 beneficiary countries also provide
annual contributions of US$10,000 toward CARTAC operating expenses. The
Government of Barbados funds all CARTAC local office and accommodation costs.
UNDP Barbados records its appreciation for its continued and additional support
through the EU-UNDP contribution agreement funding CARTAC technical assistance
to St. Vincent and the Grenadines.
The UNDP-EU partnership supports sustainable development in the Caribbean.
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