Governor of Central Bank of Barbados Highlights Climate Change and De-Globalisation Threats to Caribbean Economies

Dr. Kevin Greenidge, Governor of the Central Bank of Barbados, has issued a dire warning about the significant challenges facing Caribbean economies, emphasizing climate change and de-globalization as major threats to the region’s future prosperity. During the 44th Annual Review Seminar’s opening, Dr. Greenidge provided a bleak outlook on the economic conditions impacting Barbados and its neighboring countries.

Dr. Greenidge was explicit about the dangers of climate change, explaining that the geographic and economic characteristics of Barbados and nearby nations make them particularly vulnerable. He detailed that rising sea levels, higher temperatures, and increasingly severe hurricanes endanger infrastructure, tourism, culture, food security, and livelihoods.

Referencing recent natural disasters, Dr. Greenidge highlighted their severe economic toll, noting that Hurricane Beryl inflicted nearly half a billion dollars in damage on Grenada, St. Vincent and the Grenadines, and Jamaica. Such devastation, he remarked, exacerbates national debt, limits fiscal space, and hinders economic progress.

Dr. Greenidge also addressed the challenges posed by de-globalization, describing how the retreat from international trade and the rise of protectionist policies are profoundly affecting Barbados and the Caribbean. He pointed out that regional economies depend heavily on international trade, tourism, and foreign investment, and policy changes in major trading partners like the United States and the European Union are already reducing export revenues.

He warned that the decline in global tourism due to political tensions could further strain Caribbean economies, especially those reliant on tourism. Dr. Greenidge noted that the Caribbean’s heavy reliance on imported goods, food, and services makes the region vulnerable to the effects of de-globalization, potentially increasing costs and reducing the availability of essential products, impacting both consumers and businesses.

He emphasized the competitive challenges faced by small island nations in attracting foreign direct investment and securing trade opportunities compared to larger, more diversified economies. Dr. Greenidge stressed the necessity of significant investment in infrastructure, education, and technology to enhance economic resilience and adaptability as global supply chains evolve.

The seminar, themed “Applying an Innovative Lens to Reshape Caribbean Economies,” aims to tackle these pressing issues. Over five days, participants will explore topics such as the blue and green economy, trade, climate financing, debt developments, and modernization of the financial and monetary sectors.

Dr. Greenidge underscored the seminar’s role in promoting public education and enriching economic thought, especially for young economists. Reflecting on his early career, he recalled benefiting from rigorous critiques and intellectual discourse, highlighting the seminar as a platform for learning and collective response to the region’s unique challenges.

He encouraged active participation and robust debate, urging young economists to embrace comments and for senior economists to engage fully in discussions. Dr. Greenidge noted that the seminar’s insights and discussions will be crucial in shaping future economic policies for Barbados and the broader Caribbean as they navigate an increasingly complex global landscape.

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