The Caribbean Development Bank (CDB) is a

development bank Development finance institution (DFI), also known as a Development bank, is a financial institution that provides risk capital for economic development projects on a non-commercial basis. DFIs are often established and owned by governments or ...

that helps

Caribbean The Caribbean ( , ; ; ; ) is a region in the middle of the Americas centered around the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean, mostly overlapping with the West Indies. Bordered by North America to the north, Central America ...

countries finance social and economic programs in its member countries through loans, grants, and technical assistance. The CDB was established by an Agreement signed on October 18, 1969, in Kingston, Jamaica, which entered into force on January 26, 1970. The idea for the bank originated from the 1966 Canada/Commonwealth Caribbean Conference. The permanent headquarters of the CDB is located in Wildey, St. Michael, Barbados, adjacent to the campus of the

Samuel Jackman Prescod Polytechnic The Samuel Jackman Prescod Institute of Technology is a technical and vocational educational institution located in Pine Hill, Bridgetown, Barbados. History The Samuel Jackman Prescod Institute of Technology (SJPI) laid its foundation in 1969 at t ...

. On September 21, 2018, the Bank officially opened its Country Office in Haiti, the first outside its Headquarters in Barbados. The headquarters in Barbados serves all of the regional borrowing member countries, with staff recruited from its member states.

History

The Caribbean Development Bank was established by an agreement between sixteen members of the

Commonwealth of Nations The Commonwealth of Nations, often referred to as the British Commonwealth or simply the Commonwealth, is an International organization, international association of member states of the Commonwealth of Nations, 56 member states, the vast majo ...

in the

region, along with

Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

and the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

. Signed on October 18, 1969, in Kingston,

Jamaica Jamaica is an island country in the Caribbean Sea and the West Indies. At , it is the third-largest island—after Cuba and Hispaniola—of the Greater Antilles and the Caribbean. Jamaica lies about south of Cuba, west of Hispaniola (the is ...

, the Agreement entered into force on January 26, 1970 when 15 of the 18 signing states

ratified Ratification is a principal's legal confirmation of an act of its agent. In international law, ratification is the process by which a state declares its consent to be bound to a treaty. In the case of bilateral treaties, ratification is usuall ...

it. Ingham, Barbara, and Mark Figueroa. “W. Arthur Lewis and the Legacy of the Caribbean Development Bank.” ''Journal of Eastern Caribbean Studies'', vol. 34, no. 4, Dec. 2009, pp. 1–20. Sir Arthur Lewis Institute of Social and Economic Studies, University of the West Indies. https://www.jecsonline.com/wp-content/uploads/2019/09/JECS-Vol-34-No.-4-Dec-2009.pdf. The bank's initial capital was 50 million USD, equivalent to 100 million

Eastern Caribbean dollar The Eastern Caribbean dollar (currency symbol, symbol: EC$; ISO 4217, code: XCD) is the currency of all seven full members and one associate member of the Organisation of Eastern Caribbean States (OECS). The successor to the British West Indies d ...

, with main contributions from Jamaica (11,200,000 USD and 19.52% of votes), and the United Kingdom and Canada contributing 10,000,000 USD each with 17.55% of votes in bank. The bank was created with the purpose of promoting sustainable economic growth and reducing poverty in the region, aligning with W. Arthur Lewis's vision of economic development. During the first meeting of governors in Nassau, Lewis, who was an economist, was appointed the first president of the Caribbean Development Bank. His leadership was essential to establishing the bank's operations, emphasizing the importance of financial discipline and efficiency in development through agriculture and infrastructure projects. At this time, the bank aimed to reduce economic disparities among its member states by using soft loans to finance public works and agricultural development in the less developed states. Lewis set the CDB's independence up by retaliating against political interference in the financial decisions of the bank. He also ensured there would be efficient administration and a focus on the Caribbean states to become a key financial instrument for the countries that lacked access to international financial institutions. Lewis also played a key role in building strong relationships with other international organizations like the Inter-American Development Bank (IDB) and USAID that helped the bank gain legitimacy and credibility.

Organization

Board of Governors

The Board of Governors is the apex governing body of the CDB. It meets annually and has the authority to: * Admit new members * Amend the charter * Elect the Board of Directors and President * Change the bank's outstanding capital * Dissolve the bank. Each country is represented by one governor and one alternate, with the

British Overseas Territory The British Overseas Territories (BOTs) or alternatively referred to as the United Kingdom Overseas Territories (UKOTs) are the fourteen dependent territory, territories with a constitutional and historical link with the United Kingdom that, ...

members counted as one country.

Board of directors

The Board of Directors is responsible for: * Determining the bank's programs and annual budget * Overseeing its operations * Appointing the Oversight and Assurance Committee As with the Board of Governors, each country is represented by one director and one alternate. Directors serve renewable two-year terms.

President

The President is the chief executive officer of the CDB, and also serves as the Chairman of the Board of Directors. Different offices for communication, risk management, and compliance are part of the Office of the President. Presidential candidates are nominated by individual country members. A candidate must receive votes from two-thirds of the Board of Governors (representing 75% of the member countries) in order to be selected. The President serves for a five-year term, with the possibility of re-election.

List of presidents

The Bank has had seven presidents since its inception.

Corporate leadership

The two corporate leaders that report to the boards are the Vice-President Finance and Corporate Services and the Vice-President (Operations).

Financial Overview

As of December 31, 2021, the CDB's total assets stood at US$3.71 billion, which included US$2.21 billion of Ordinary Capital Resources and US$1.50 billion of Special Funds Resources. The Bank holds a high credit rating from international agencies: * Aa1 (Stable) by Moody's * AA+ (Stable) by Standard & Poor's * AA+ (Stable) by Fitch Ratings. In 2021, the Bank approved US$269.5 million in loans and grants. At the end of 2020, the total value approved projects by the bank was US$122.6 million, including US$71.2 million in loans and US$51.4 million in grants.

Membership

The CDB's membership consists of 28 countries, including: * 19 regional borrowing members * 4 regional, non-borrowing members: Brazil, Colombia, Mexico and Venezuela * 5 non-regional, non-borrowing members: Canada, China, Germany, Italy, and the United Kingdom

Member states

As of 2023, there are nineteen borrowing members and nine non-borrowing members.

Regional

Other regional

Non-regional

United Nations Development Business

The

United Nations The United Nations (UN) is the Earth, global intergovernmental organization established by the signing of the Charter of the United Nations, UN Charter on 26 June 1945 with the stated purpose of maintaining international peace and internationa ...

launched '' Development Business'' in 1978 with the support of the Caribbean Development Bank, the

World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...

, and many other major development banks from around the world. Today, Development Business is the primary publication for all major multilateral development banks, United Nations agencies, and several national governments, many of whom have made the publication of their tenders and contracts in Development Business a mandatory requirement.

Recent Developments and Risk Management

In 2012, the CDB experienced a credit downgrade due to weaknesses in the banks credit profile. The downgrade reflected concerns about the deteriorating financial conditions of its borrowing member countries, this posed risks the banks ability to finance loans effectively. There were also inefficiencies in CDB's risk management practices which prompted the bank to adopt a Enterprise Risk Management framework to address these issues. This design was meant strengthen the bank's governance, risk management, and operational processes, ensuring better oversight, accountability, and financial stability.

Partnerships

The CDB collaborates with distinct institutions like the

Green Climate Fund The Green Climate Fund (GCF) is a Funding, fund for climate finance that was established within the framework of the United Nations Framework Convention on Climate Change (UNFCCC). Considered the world's largest fund of its kind, GCF's objective ...

to promote sustainable development and climate resilience across the region. The bank also facilitates soft loans and technical assistance for its smaller member states by working closely with partners like the Inter-American Development Bank and the

. Ingham, Barbara, and Mark Figueroa. “W. Arthur Lewis and the Legacy of the Caribbean Development Bank.” ''Journal of Eastern Caribbean Studies'', vol. 34, no. 4, Dec. 2009, pp. 1–20. Sir Arthur Lewis Institute of Social and Economic Studies, University of the West Indies. https://www.jecsonline.com/wp-content/uploads/2019/09/JECS-Vol-34-No.-4-Dec-2009.pdf.

References

External links

Official Caribbean Development Bank website
{{- Banks of the Caribbean International banking institutions International organizations based in the Caribbean Multilateral development banks Supranational banks Intergovernmental organizations established by treaty Financial services companies of Barbados Organizations established in 1969 1960s establishments in the Caribbean 1969 establishments in North America