The Caribbean Development Bank (CDB) has allocated over US$47 million for its Basic Needs Trust Fund (BNTF) during its current cycle.

As one of the Caribbean’s longest-running poverty reduction programmes, the BNTF launched its tenth cycle last week with commitments to supporting projects in nine countries across the region. Already, 123 sub-projects are in the pipeline for this cycle of the BNTF, which will run until December 31, 2024.

Contributors to CDB’s Special Development Fund, which funds the BNTF, approved US$40 million with the remainder coming from the participating countries of Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St Lucia, St Vincent and the Grenadines and Suriname.

Speaking at the launch last Monday (December 13), CDB president Dr Gene Leon urged development actors in the region, including at the bank, to explore how development programmes like the BNTF can be expanded and retrofitted to meet the changing needs of the Caribbean.

Pointing specifically to the issues of climate change and resilience and how they affect the Caribbean, Dr Leon noted that the metrics used for allocation and assessing impact may need to take other factors into account.

CDB President poses some tough questions

“On impact, we can ask; is the current allocation efficient or optimal? Should we pivot to a distance-to-SDG metric as the basis of allocation? Indeed, should we not review the very definition of eligibility, given we are championing the recovery duration adjustor (RDA) as a more equitable alternative to gross national income (GNI) as the predominant factor in accessing concessional finance” Dr Leon questioned.

Guyana’s Minister of Finance Dr Ashni Singh elaborated on the impact of the BNTF in his country and further afield.

“Over the past four decades, interventions have provided access to improved social infrastructure including markets, health posts, resource centres and schools, provided first time access to potable water, improved roads, bridges and foot paths and provided certified skills training aimed at enhancing employability and income generation,” Dr Signh stated.

“BNTF projects have impacted us all regionally, nationally and most importantly, our people at the grassroots level,” he added.

In his remarks, Grenada’s Minister of Finance, Economic and Physical Development and Energy Gregory Bowen highlighted that the BNTF had been there for the countries of the region during difficult times of structural adjustment adding that the launch of the tenth cycle was welcome and timely, coming during the economic difficulties of the COVID-19 pandemic.

According to him, “The continuance of the BNTF programme during the difficult periods of structural adjustment, fiscal restraints and weak growth continues today during the COVID-19 pandemic and natural disasters, as our OECS economies struggle and adjust to the fallout of the reduction of revenues and the ability to provide basic needs and services to the people. The fallout from the COVID-19 pandemic is increasing poverty levels and worsening living conditions, particularly for the poor in our region where the pre-COVID average poverty levels were between 18 and 30 per cent.”

This means that the BNTF cycle 10 is timely and an opportunity for addressing poverty in our territories. The BNTF programme, he said, has played and continues to play a significant role in narrowing the social sector funding gaps.