The Caribbean, a region often lauded for its natural beauty and cultural vibrancy, is now under the microscope for a different reason. The Development Bank of Latin America and the Caribbean (CAF) has turned its analytical lens onto the region’s infrastructure, unveiling a comprehensive study that promises to reshape how we perceive and address the Caribbean’s development needs. The report, “Sustainable Pathways Addressing Infrastructure Needs in the Caribbean,” presented at the CAF’s inaugural International Economic Forum in Panama City, is a clarion call for action, highlighting both the challenges and opportunities that lie ahead.
The report, spearheaded by Walter Cont, Director of Socioeconomic Research at CAF, does not mince words. It diagnoses infrastructure gaps across 15 CARICOM member states, employing a “traffic light” system to categorize areas needing attention. This system, ranging from minor improvements to significant investment opportunities, is a bold move that challenges the status quo. It forces stakeholders to confront the stark realities of the region’s infrastructure landscape, which has long been overlooked in favor of more immediate, albeit less impactful, concerns.
One of the most striking revelations is the high cost of electricity in the Caribbean. The region’s heavy reliance on fossil fuels has resulted in electricity prices that are significantly higher than those in Latin America and the United States. Grenada, for instance, tops the list with electricity costs exceeding US$0.45 per kilowatt hour, while Trinidad and Tobago enjoys the lowest rates at just under US$0.05 per kilowatt hour. High costs have not deterred access to the power grid, which remains high and reliable across CARICOM member states. This presents a major opportunity for investment in resilient power generation systems, capable of withstanding natural disasters and external shocks. This is a call to action for Caribbean states to embrace renewable energy sources and modernize their grids, not just for environmental sustainability, but for economic resilience.
Water rates, on the other hand, are generally affordable, largely due to subsidies. However, the report raises concerns about water scarcity, a growing issue that demands immediate attention. The region’s water infrastructure needs a comprehensive overhaul, focusing on sustainability and resilience. This is not just about building more efficient systems; it’s about rethinking how we manage and distribute water resources in the face of climate change.
Cont’s recommendations are clear and compelling. He advocates for mitigation as a development opportunity, not just a decarbonization effort. He emphasizes the need for resilient infrastructure, modern governance and regulatory frameworks, and enhanced coordination and cooperation for infrastructure development. These are not mere suggestions; they are urgent calls to action, backed by CAF’s extensive experience in Latin America.
The report’s release in March will provide detailed analysis and policy actions, but the preview already sets a new standard for infrastructure development in the Caribbean. It challenges policymakers, investors, and stakeholders to think beyond the immediate and invest in a sustainable, resilient future. The CAF’s willingness to assist Caribbean countries in developing their infrastructure to face future threats is a significant step forward. The region’s unique challenges require innovative solutions, and this report provides a roadmap for navigating the complexities of infrastructure development in the Caribbean.
The implications of this report are far-reaching. It could spark a wave of investment in renewable energy, catalyze regional cooperation, and drive policy reforms that prioritize sustainability and resilience. The Caribbean is at a crossroads, and this report offers a clear path forward. It’s a bold step towards a future where the region’s infrastructure is not just functional, but resilient and sustainable. The ball is now in the court of policymakers and stakeholders to turn these insights into action.
