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Toward a Blue Economy: a Promise for Sustainable Growth in The Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Toward aToward Blue Economy: Sustainable GrowthSustainable Caribbean the in A Promise for Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/the World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank 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. Copyright Statement: The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978- 750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522- 2422, e-mail [email protected]. Suggested Citation: Patil, P.G., Virdin, J., Diez, S.M., Roberts, J., Singh, A. (2016). Toward A Blue Economy: A Promise for Sustainable Growth in the Caribbean; An Overview. The World Bank, Washington D.C. Artist Statement We refer to Mother Earth as our blue planet. Have you ever The many images inside the globe suggest how full our wondered why? We grow up looking at maps, and our oceans are. Our global ocean is full of life—coral reefs, eyes fix on the familiar, six continents full of countries with whales and sea turtles that drive tourism; and fish of all people, mountains, forests, and rivers. When we spin our shapes and sizes that feed billions. Yet, as we know, the desktop globes fast, however, a transformation takes ocean—and its underlying value—is under threat from place and the world spins blue! climate change and other human-induced threats. Our world is indeed a blue planet with over 70 percent of The colors associated with each of the seventeen United its surface covered by oceans and seas, our global ocean. Nations Sustainable Development Goals, including the Much of it is unknown and unexplored, a new frontier for one for oceans, SDG14, surround our ocean-centered discovery. Yet many things take place on and within the globe. Our global ocean will likely be vital in their ocean space, ranging from commerce and trade to fishing achievement. and leisure. Through the magnifying glass we invite you to take a Our cover art depicts our planet from the perspective of closer look at our global ocean and in particular at the our major oceans, viewing our world bottom up and Caribbean Sea and its transformation toward a blue centering on the Southern Ocean surrounding Antarctica. economy. What emerges is the shape of the world from our ocean- centered view, which shows just how much blue covers Earth. Cover Credit: Helena Eitel, Pawan Patil, and Ocean Art Hub (www.oceanarthub.org) REPORT NO: AUS16344 SEPTEMBER 2016 Toward a Blue Economy: A Promise for Sustainable Growth in the Caribbean Pawan G. Patil John Virdin Sylvia Michele Diez Julian Roberts Asha Singh A COLLABORATIVE PARTNERSHIP Organisation of Eastern Caribbean States Acronyms and abbreviations CCI Caribbean Challenge Initiative CLME Caribbean Large Marine Ecosystem CMSP Coastal and Marine Spatial Planning CRFM Caribbean Regional Fisheries Mechanism CRIFF Caribbean Catastrophic Risk Insurance Facility DOWA Deep Ocean Water Applications ECROP Eastern Caribbean Regional Oceans Policy and Action Plan EEZ Exclusive Economic Zone EIA U.S. Energy Information Administration FOSP Future Ocean Spatial Planning GDP Gross Domestic Product GEF Global Environment Facility GNI Gross National Income IEA International Energy Agency ICT Information and Communication Technology IUU Illegal, Unregulated and Unreported MPA Marine Protected Area MSP Marine Spatial Planning NPV Net Present Value OECD Organization for Economic Co-operation and Development OECS Organization of Eastern Caribbean States SDG Sustainable Development Goal SIDS Small Island Developing States TEU Twenty Foot Equivalent Units UN United Nations UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC UN Framework Convention on Climate Change UWI University of the West Indies WATO We are the Oceans WTTC World Travel and Tourism Council TOWARD A BLUE ECONOMY: A PROMISE FOR 4 SUSTAINABLE GROWTH IN THE CARIBBEAN Glossary of terms OCEAN ECONOMY The economic activities that take place in the ocean, receive outputs from the a. Ocean Service ocean, and provide inputs to the ocean (Park and Kildow 2014) b. Economic a. Economic activity of the ocean economy that provides benefit to people Sector/ Industry b. Specific area or group of companies in the ocean economy The total available biophysical stock of natural resources in the ocean, for OCEAN’S NATURAL example, fish stocks, minerals and energy resources, mangrove forests, and so CAPITAL ASSETS on (Narloch, Kozluk, and Lloyd 2016) a. Living Resources a. Renewable stocks of natural resources that are harvested for use, such as b. Nonliving fisheries Resources b. Nonrenewable stocks of natural resources harvested for use, such as c. Ecosystems minerals from the seabed and Ecosystem c. The interaction between the living and nonliving environment as a func- Processes tioning unit (for example, coral reef ecosystems, mangrove ecosystems, and others) (MEA 2005) OCEAN POLICIES The policies that affect the health and wealth of the ocean A sustainable ocean economy, where economic activity is in balance with the long-term capacity of ocean ecosystems to support this activity and remain BLUE ECONOMY resilient and healthy (Economist Intelligence Unit 2015). This report illustrates a. Blue Economy how the Caribbean basin can grow its “ocean economy” into a more sustain- Framework able “blue economy.” b. Blue Economy a. blue economy conceptual framework Indicators b. indicators of ocean sustainability are described in the report, and can be c. Blue Growth used to measure blue growth. c. Blue growth is the means by which an unsustainable ocean economy can transition towards a more balanced and sustainable one An operational policy agenda to foster economic growth and development BLUE ECONOMY in ocean spaces, while ensuring that the ocean’s natural assets continue to POLICY FRAMEWORK provide the resources and environmental services on which human well-being a. Coastal and relies (OECD 2011) Marine Spatial a. A public process of analyzing and allocating ocean uses over space and Planning time to achieve economic, ecological, and social objectives (Ehler and Douvere 2007) 5 Table of contents Acronyms and abbreviations 4 Glossary of terms 5 Foreword 10 Acknowledgments 12 Overview 13 Executive summary 14 CHAPTER 1. THE GROWING OCEAN ECONOMY 18 1.1 The Global Ocean Economy 19 1.2 The Ocean Economy of the Caribbean 25 CHAPTER 2. THE OCEAN’S DECLINING NATURAL CAPITAL 32 2.1 Overview of the Status of the Global Ocean’s Natural Capital 33 2.2 Overview of the Status of the Natural Capital Assets of the Caribbean Sea 35 CHAPTER 3. ALIGNING THE TWO TRENDS - THE POTENTIAL FOR A BLUE ECONOMY IN THE CARIBBEAN SEA 40 3.1 Two trends 41 3.2 The Concept of a ‘Blue Economy’ 42 3.3 A Blue Economy Conceptual Framework 44 3.4 A Caribbean Blue Economy: Aligning Economic Growth and Ocean Health 49 3.5 Case Study: Grenada: Translating Aspiration to Action in Its Transition to a Blue Economy 53 CHAPTER 4. PATHWAY AND APPROACH FOR THE TRANSITION TO A CARIBBEAN BLUE ECONOMY 60 TOWARD A BLUE ECONOMY: A PROMISE FOR 6 SUSTAINABLE GROWTH IN THE CARIBBEAN Annex 1. Summary of OECD Projections for Growth in the Ocean Economy 69 Annex 2. Detailed Description of Proposed Ocean Principles 70 Annex 3. Contribution of the Blue Economy to Selected SDGs and Some of Their Targets 72 Annex 4. Grenada’s Blue Growth Coastal Master Plan 75 Reference List 86 Boxes Box 2.1. Sustainable Development Goal 14 Summary: 34 Box 3.1. Definition of the Concept of the Blue Economy 43 Box 3.2. Position Paper on the Blue Economy for the 2014 SIDS Summit 47 Box 3.3. Tourism and the Ocean Ecosystems 50 Box 3.4. Blue Growth Sector: Marine Renewable Energy 51 Box 3.5. Transforming Governance in Oceans - The OECS Experience 52 Box 4.1. Ocean Principles for Investment in a Caribbean Blue Economy 62 Box 4.2. Proposed Approach to Begin the Transition toward a Caribbean Blue Economy 67 Box A4.1. Three Stages of Development of Phase 1 Planning Process 76 Figures Figure 1.1. The Ocean Economy 22 Figure 1.2. The Portion of the Ocean Economy Measured by Markets 23 Figure 1.3. Ocean Area under Jurisdiction of Low and Lower – Middle-Income Countries (in red) 24 Figure 1.4. The Caribbean Sea 25 Figure 1.5. The (Measurable) Ocean Economy of the Caribbean in 2012 is Dominated by Shipping, Tourism, and Oil and Gas Industries 29 Figure 2.1. Growth in the World Bank’s Portfolio of Investments in the Ocean 34 Figure 2.2. Stock Status of Commercially Exploited Fish Stocks in the Caribbean Sea 35 Figure 2.3. Distribution of Fishing Effort in the Wider Caribbean 36 7 Figure 2.4.
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