(CARICOM Secretariat, Turkeyen, Greater Georgetown, Guyana) The CARICOM Development Fund (CDF) is to be launched at the Twenty-Ninth Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) in Antigua and Barbuda 1-4 July 2008.
A decision was taken by the Heads of Government to frontload $60M of the US$250M Fund to coincide with the launch next week.
Dr. Maurice Odle, Economic Adviser to the Secretary-General, told representatives of the regional media on Friday 27 June 2008, that the Fund was a cornerstone of the integration process and was aimed at compensating disadvantaged Member States, regions and sectors for any dislocation that may occur as they moved towards deeper integration. Provision for the CDF is found in Chapter Seven of the Revised Treaty of Chaguaramas, which established the Caribbean Community including the CARICOM Single Market and Economy.
Member States would contribute $120M of the Fund through a formula that would take into account size, per capita income and other minor indices. The Community would tap its international development partners for contributions to the remainder of the Fund. He added that the target was almost met, with contributions so far totalling $44M. A deposit of $8 .4M was expected shortly.
The Fund, currently being held in an escrow account at the Caribbean Development Bank (CDB), will promote business development, among other areas. Dr. Odle stressed that disadvantaged countries were the main targets of the Fund and that the economic integration process would determine the priority allocations from the sustainable Fund in the forms of loans, grants and interest subsidy grants.
H.E. Edwin Carrington, Secretary-General of CARICOM pointed out that disbursement would be done in a manner that would engender confidence among its contributing Member States and international development partners.
Dr. Odle said the institution established to administer the Fund would “hit the ground running” after the launch as a result of the extensive preparatory process. At the launch, Heads of Government would sign an agreement relating to the operation of the CDF.
The Fund’s Board of Directors will meet 28-29 July, when important decisions would be made regarding the effective operation of the Fund. The core of an Advisory Committee, comprising representatives of Member States and specialized institutions, was approved by Heads of Government at the Nineteenth Inter-sessional Meeting in March 2008. A Headquarters Agreement, to be signed with the Government of Barbados, was in the process of being completed. Heads of Government would make a decision on the Chief Executive Officer position of the institution at the Conference and recommendations for other key personnel would be considered by the Board of Directors at its first meeting, Dr. Odle said.
Representatives of the media had gathered at videoconference sites throughout the Region for a Media Clinic hosted by H.E. Edwin Carrington on the occasion of the Meeting of the Conference of Heads of Government. The videoconference was anchored at the CARICOM Secretariat in Georgetown and was aimed at previewing the issues to be discussed by the Conference which is being held as the Community celebrates the 35th Anniversary of the Signing of the Treaty of Chaguaramas which established CARICOM and Common Market on 4 July 1973. It is also 40 years since the inception of CARIFTA in 1968, the forerunner to CARICOM.
