Background 

Persistent structural challenges have hindered the Caribbean’s growth and development. The geographic isolation, small economic bases, environmental fragility, and climate risks that characterize sub-regional economies have long stalled development. The pandemic further delayed structural transformation, intensifying debt burdens, narrowing fiscal space, and exacerbating lingering climate-related damages. These are compounded by limited access to development financing, which further limits avenues for structural change. Rising debt servicing costs, which is conditioned by scarcity of affordable capital, and a lack of tailored financial instruments for Caribbean small island developing states continue to obstruct developmental progress, entrenching poverty and inequality. Debt servicing alone consumes up to 40% of government revenue, crowding out investment in long-term development, productivity, competitiveness, and resilience-building. In the absence of robust structural reform, development will remain constrained—and the sub-region locked in a cycle of incremental developmental gains, insufficient to meet the region’s evolving challenges. 

The subregion’s economic fragility has also been rooted in its heavy over-reliance on tourism, a vulnerability laid bare by the near economic shutdown during the COVID-19 pandemic. In 2019, tourism contributed 28.5% of the Caribbean’s GDP, with some economies deriving up to 73.6% of GDP from tourism and related sectors. The industry also accounts for one in six jobs, the majority held by women. To compete in international markets and generate additional capital for development, this model must by necessity evolve.

The upcoming regional dialogue aims to promote resilience and economic diversification across similar contexts by convening stakeholders from both beneficiary and non-beneficiary Caribbean countries to dissect the shared lessons and scalable practices derived from the four(4) key outputs of Outcome 1 for the beneficiary countries—Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines: 

1. Two (2) Country reports on the impacts of COVID-19 and strategies for tourism diversification and resilience building, namely:
2. Building post-pandemic economic resilience by diversifying tourism: The case of Antigua and Barbuda, Saint Kitts and Nevis and Saint Lucia
   1. Post-Covid Building Back Better in Tourism-Dependent Economies: Dominica, Grenada and St. Vincent and the Grenadines
3. Final policy framework for economic restructuring and sectoral upgrading
4. A Feasibility study on establishing English Harbour in Antigua and Barbuda as a tourism-driven growth pole
5. ECLAC’s Land Use Scenario Report for Antigua and Barbuda. 

Objectives

The objectives of the regional dialogue for economic restructuring include:

• Present the tourism diversification reports, final policy framework, feasibility study, and land use scenario report
• Engage stakeholders in evaluating the feasibility, coherence, and implementation pathways of proposed strategies
• Facilitate cross-country learning, enabling non-beneficiary countries to draw insights—particularly from Antigua’s growth pole initiative
• Enhance the capacity of all participating countries to promote a more diversified and resilient economic base

Expected Outcomes

• Strengthened capacity to pursue economic diversification across beneficiary and non-beneficiary countries
• Data-driven policy recommendations to support tourism, broader economic development, and global competitiveness
• Increased regional knowledge-sharing and networking among Caribbean SIDS
• Deepened collaboration between UN ECLAC, beneficiary governments, and regional partners