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Vulnerability non-communicable disease remoteness disaster risk management climate change RISING SEA LEVEL diseconomies of scale labor migration volatile growth natural disasters OECS VOLUME 1 Cluster Country Program Evaluation on Small States Regional Program Evaluation of the Organisation of Eastern Caribbean States: Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines © 2016 International Bank for Reconstruction This work is a product of the staff of The World RIGHTS AND PERMISSIONS and Development / The World Bank Bank with external contributions. The findings, The material in this work is subject to copyright. 1818 H Street NW interpretations, and conclusions expressed in Because The World Bank encourages Washington, DC 20433 this work do not necessarily reflect the views dissemination of its knowledge, this work Telephone: 202-473-1000 of The World Bank, its Board of Executive may be reproduced, in whole or in part, for Internet: www.worldbank.org Directors, or the governments they represent. noncommercial purposes as long as full attribution to this work is given. The World Bank does not guarantee the accuracy of the data included in this work. Any queries on rights and licenses, including The boundaries, colors, denominations, and subsidiary rights, should be addressed to other information shown on any map in this World Bank Publications, The World Bank work do not imply any judgment on the part Group, 1818 H Street NW, Washington, DC of The World Bank concerning the legal 20433, USA; fax: 202-522-2625; e-mail: status of any territory or the endorsement [email protected]. or acceptance of such boundaries. Regional Program Evaluation of the Organisation of Eastern Caribbean States: Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines Cluster Country Program Evaluation on Small States OECS Volume I AN INDEPENDENT EVALUATION © 2016 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202- 522-2625; e-mail: [email protected]. ii Contents ABBREVIATIONS AND ACRONYMS .................................................................................................... V ACKNOWLEDGMENTS ........................................................................................................................ VI OVERVIEW ........................................................................................................................................... VII 1. INTRODUCTION AND OECS COUNTRY CONTEXT ............................................................... 1 OECS Country Context ............................................................................................................................................. 2 2. ASSESSMENT OF OVERALL WORLD BANK GROUP SUPPORT ........................................ 6 Bank Group Strategy and Program ........................................................................................................................... 6 Overall Assessment of Bank Group Engagement ..................................................................................................... 8 3. CONTRIBUTIONS TO STRENGTHENING RESILIENCE ....................................................... 21 Strengthening Fiscal and Debt Sustainability and Public Sector Performance ....................................................... 21 Strengthening Environmental and Disaster Risk Management and Climate Resilience ......................................... 25 Enhancing Human Capital and Social Resilience ................................................................................................... 31 Summary Assessment and Ratings ........................................................................................................................ 36 4. CONTRIBUTIONS TO ENHANCING COMPETITIVENESS .................................................... 43 Strengthening the Domestic and Regional Financial Sector ................................................................................... 43 Strengthening the Legal and Regulatory Framework, Sector Linkages, and Value Chains for Private Business... 45 Improving Infrastructure Service Delivery ............................................................................................................... 49 Summary Assessment and Ratings ........................................................................................................................ 52 5. LEARNING AND RECOMMENDATIONS ............................................................................... 57 Conclusions ............................................................................................................................................................. 57 Lessons ................................................................................................................................................................... 60 Recommendations .................................................................................................................................................. 63 Boxes Box 2.1. The FY15–19 OECS RPS ......................................................................................................... 9 Box 2.2. Institutional Capacity Challenge in the OECS ......................................................................... 13 Box 3.1. Caribbean Catastrophe Risk Insurance Facility: A Successful Multi-Country Partnership ...... 27 Box 4.1. World Bank Group Assistance for Trade Facilitation in Grenada: A Success Story ................ 48 Tables Table 1.1. OECS Macroeconomic Indicators, 2000–14 .......................................................................... 4 iii CONTENTS Table 2.1. World Bank Group Strategic Objectives, FY06–14 ................................................................ 7 Table 2.2. Trust Fund versus World Bank Funding, FY06–15 ...............................................................17 Table 5.1. World Bank Group Program Ratings, FY06–14 ....................................................................60 Figures Figure 3.1. Net Secondary Enrollment Rate ..........................................................................................35 All volumes of the Cluster Country Program Evaluation on Small States are found online at http://ieg.worldbankgroup.org/evaluations/cpe-smallstates. iv Abbreviations and Acronyms AAA analytic and advisory activities AIDS acquired immune deficiency syndrome APL adaptable program lending BAICO British American Insurance Company CARICAD Caribbean Center for Development Administration CCRIF Caribbean Catastrophic Risk Insurance Facility CDB Caribbean Development Bank CDF Comprehensive Debt Framework CGF Caribbean Growth Forum CLICO Colonial Life Insurance Company DeMPA Debt Management Performance Assessment DRM disaster risk management ECCB Eastern Caribbean Central Bank ECTEL Eastern Caribbean Telecommunications Authority EGRIP Electronic Government for Regional Integration Project GDP gross domestic product GEF Global Environment Facility HIV human immunodeficiency virus HR Human Resources IBRD International Bank for Reconstruction and Development ICT information and communications technology IDA International Development Association IDF Institutional Development Fund IFC International Finance Corporation IMF International Monetary Fund M&E monitoring and evaluation MECOVI Mejoramiento de las Encuestas de Hogares y la Medición de Condiciones de Vida MTDS Medium-term debt management strategy NCDs noncommunicable diseases NLTA nonlending technical assistance NPM New Public Management NTRC National Telecommunications Regulatory Commission OECS Organisation of Eastern Caribbean States PCU Project Coordination Unit PDNA Post Disaster Needs Assessment PPP public-private partnership RPE regional program evaluation RPS Regional Partnership Strategy RPSPR Regional Partnership Strategy Progress Report SEMCAR Supporting Economic Management in the Caribbean SME small and medium enterprise VAT value added tax WASCO Water and Sewerage Company of St. Lucia All dollar amounts are U.S. dollars unless otherwise indicated. v Acknowledgments This report was prepared by a team under the leadership of Florence Charlier (task team leader for the Small States cluster country program evaluation). The team consisted of Stephen