The World Bank Group has announced a new Country Engagement Note for Barbados, signaling the beginning of a renewed collaboration with the Caribbean nation. This development marks Barbados' return to the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group that provides support to middle-income and creditworthy low-income countries.
Barbados, home to about 300,000 people, initially met the income criteria for IBRD graduation in 1994. However, subsequent economic challenges have impacted its growth. The global financial crisis of 2008-2009 severely affected its tourism-dependent economy, leading to a recession and a rise in public debt from 77% to 158% of GDP.
Further compounding these issues were the COVID-19 pandemic and natural disasters such as volcanic ashfall from St. Vincent and Hurricane Elsa in 2021. In June 2024, Hurricane Beryl inflicted significant damage on critical infrastructure, disrupting tourism.
The new Country Engagement Note aims to address Barbados' medium-term development challenges by promoting sustainable growth, enhancing climate resilience, and building on social gains amid fiscal constraints. It represents the first World Bank Group strategy for Barbados in over three decades.
The strategy will focus on two main objectives: strengthening climate resilience through disaster mitigation and greening energy and water sectors; and improving growth conditions by attracting private investments and enhancing education and skills.
Barbados will benefit from collaboration among World Bank Group institutions including IBRD, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). The World Bank Group will also engage with various development partners to maximize impact while avoiding redundancy.
Additionally, the World Bank Board of Directors has approved the Beryl Emergency Response and Recovery Project. This initiative aims to aid reconstruction efforts post-Hurricane Beryl while bolstering resilience against future disasters and climate change.
For more information about World Bank activities in the Caribbean:
Website: www.worldbank.org/caribbean
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