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D uring the lecture, the bank Governor touted the transformative effects of economic growth and its ability to put states on a path of sustainable growth. He defined sustainable, inclusive economic growth as “an economic system that thrives without depleting the natural resources it depends on, while also ensuring social equity and meeting the needs of future generations”. He further identified eight determinants – l environmental sustainability, l robust institutions, l development of human capital, productivity, l technological innovation, inclusive growth, l a stable and vibrant financial system, l and deepened regional integration. Therefore, he said, implementation of the model will require nuanced approaches given the complexities of the different countries.
As for the possible sources of financing his economic model, he said this can be facilitated through public- private partnerships (PPPs) that were essential for launching projects that are both economically viable and beneficial to society at large, as they “provide a practical avenue for blending the agility of the private sector with the scale and reach of the public domain”. Dr. Greenidge said financial markets were another source of financing: “The significant liquidity surplus in the Caribbean’s financial markets presents both a challenge and an opportunity. Central banks have a pivotal role in devising and executing strategies to channel this abundant liquidity into investments that promote sustainable growth. Their focus needs to be on directing funds towards green initiatives, technological advancements, and infrastructure projects that resonate with the region’s sustainable objectives.” Green bonds and climate finance, coupled with foreign direct investments, were identified as avenues through which dedicated capital for environmentally and socially responsible projects can be accessed.
The Governor said the entry of export- import banks like the African Export- Import Bank (Afreximbank) , which has established an office in Barbados and is making US$1.5 billion available to support sustainable development in some states, as well as the Export-Import Bank of China (China Exim Bank) , which supports infrastructure and development projects, have enriched the regional landscape. “These institutions amplify the Caribbean’s access to a diverse array of financial instruments, trade opportunities, and international markets. The synergy between these banks and the Caribbean nations promises to weave a narrative of enhanced economic resilience, diversified trade portfolios and collaborative innovation, positioning the Caribbean at the forefront of sustainable, global economic integration.” During his interaction with the audience, he was engaged on issues like the role of export-import banks, a global carbon tax to help deal with carbon emissions, the development of human capital and related literacy, and the re-establishment of a national bank of Barbados. u
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