WASHINGTON, CMC -The World Financial institution Monday introduced that it has authorised new financing to assist Dominica’s efforts to strengthen home income mobilization, improve monetary sector resilience, and promote biodiversity conservation and catastrophe preparedness to assist higher alternatives for its inhabitants.
“Dominica faces the twin problem of managing excessive catastrophe vulnerability and monetary fragility. This initiative helps strategic coverage reforms important for constructing resilience, producing sustainable income, and defending Dominica’s extraordinary pure heritage,” mentioned Lilia Burunciuc, World Financial institution Division Director for the Caribbean.
The World Financial institution mentioned that the brand new Improvement Coverage Credit score contains an envelope of US$24 million and that Dominica, often called the “Nature Island of the Caribbean,” possesses distinctive biodiversity and marine ecosystems, which underpin its tourism-dependent economic system.
Nevertheless, pure disasters and climate-related shocks have decreased the nation’s growth. Tropical Storm Erika in 2015 and Hurricane Maria in 2017 inflicted important harm. Whereas Dominica was spared the worst of Hurricane Beryl in July 2024, the storm nonetheless prompted infrastructural harm and disrupted livelihoods throughout the island.
“These disasters and different shocks have considerably weakened the nation’s public funds and monetary system. Public debt surged to 118.2 % of gross home product (GDP) in 2020 and stays excessive at 103 % in 2024,” The World Financial institution mentioned.
The Washington-based monetary establishment mentioned in response to those challenges, the Dominica Strengthening Fiscal and Local weather Resilience Programmatic Improvement Coverage Credit score was developed to assist Dominica’s reform agenda.
The operation helps coverage measures to advance key financial and local weather resilience reforms. This contains reforming excise and particular taxes on gasoline, alcohol, and sugary drinks that may hurt well being or the atmosphere.
The monetary establishment mentioned the reforms are anticipated to spice up income, cut back greenhouse gasoline emissions, and assist higher public well being outcomes. The operation additionally strengthens monetary oversight of key establishments just like the Dominica Agricultural Industrial and Improvement Financial institution and credit score unions, enhancing monetary sector stability.
The second pillar helps efforts to safeguard Dominica’s marine ecosystems and enhance local weather resilience. It contains establishing the world’s first marine protected space devoted to sperm whales.
The World Financial institution mentioned income from swim-with-the-whales permits is anticipated to rise by 177 % by 2027, supporting conservation, livelihoods, and eco-tourism.
Moreover, the federal government is adopting a brand new risk-based asset administration system for public buildings to reinforce catastrophe preparedness and information funding in resilient infrastructure.
The World Financial institution mentioned that by 2027, 40 % of public mounted belongings can be inventoried and prioritized for danger mitigation, bettering Dominica’s capability to reply to future local weather shocks.
The initiative is aligned with Dominica’s Nationwide Resilience Improvement Technique 2030 and the Local weather Resilience and Restoration Plan 2020–2030. It was designed by in depth session with nationwide stakeholders and growth companions, notably the Caribbean Improvement Financial institution and the Worldwide Financial Fund.
The Worldwide Improvement Affiliation (IDA), the arm of the World Financial institution Group that helps low-income international locations and small island economies, gives funding. IDA’s grants and low-interest financing assist international locations put money into their futures, enhance lives, and create safer, extra affluent communities around the globe.
In contrast to conventional challenge financing, Improvement Coverage Credit present funds assist to governments which have already carried out agreed-upon insurance policies and institutional reforms. With this approval, funds can be disbursed to Dominica’s treasury to assist budgetary priorities aligned with the nation’s resilience technique.
