Foreword 3

Acknowledgements 4

Editorial 6

Abbreviations and acronyms 12

Executive summary 15

Overview 17

1 Main development dynamics and the role of investment 43

Unpacking macroeconomic dynamics and structural features in the Caribbean 45

Advancing social inclusion in the Caribbean: Tackling poverty, inequality and informality 53

Building resilience: Confronting environmental risks and climate vulnerabilities 59

Investment as a driver to unlock development potential in the Caribbean: Main trends and features 66

Key policy messages 79

References 80

Annex 1.A. Methodological annex 87

Annex 1.B. Empirical model to estimate the effect of FDI on the energy mix 88

2 Investment as a driver of sustainable and resilient development 89

Introduction 91

Investing in resilient development 91

Investing in sustainable development: Unlocking the potential of key sectors of opportunity 108

Key policy messages 138

Notes 139

References 140

3 Promoting better financing through enhanced resource mobilisation, innovative instruments and renewed partnerships 157

Introduction 159

Domestic resource mobilisation will be essential to finance the development agenda 159

Strengthening fiscal frameworks can help Caribbean countries cope with high debt levels 174

Private capital can be unlocked as a fundamental source of development financing 178

Development finance institutions are central to supporting resource mobilisation for sustainable development 184

New debt financing mechanisms can mobilise resources to support environmental, social and climate resilience objectives 188

Key policy messages 201

Notes 203

References 203