Fiscal Challenges in the Caribbean: Demographic Changes and Fiscal Risks from SOEs

preparation

The objective of this Technical Cooperation (TC) is to support the governments of the ONE Caribbean Countries in strengthening the institutional technical capacities of the ministries of finances, line ministries and State-Owned Enterprises (SOEs) to provide efficient services that satisfy the increasing needs of an aging population, while fostering sustainable economic development and resilient growth. Specifically, the TC aims to (i) identify and measure potential demographic risks on institutional technical capacity and finances; (ii) evaluate the medium and long-term impact of these changes on fiscal sustainability, public investment, productivity and economic growth, (iii) Elaborate techniques for identifying, evaluating and mitigating fiscal age-related risks from SOEs in ONE Caribbean countries; and (iv) disseminate knowledge to facilitate capacity building in beneficiary countries. By achieving these objectives, the TC will enhance the institutional technical capacity of the ONE Caribbean Countries to provide effective public administrative services and capital expenditure and consolidate fiscal sustainability, which are required to improve economic productivity, promote synergies with the private sector, strengthen the economies and overall sustainable growth.