Back Matter

Back Matter

Author(s):
Alfred Schipke, Aliona Cebotari, and Nita Thacker
Published Date:
April 2013
    Share
    • ShareShare
    Show Summary Details

    Index

    Entries followed by f indicate a figure, by t a table, and by n a footnote.

    A

    Accounting and audit standards, securities market and, 345

    Accrual rates (pension), 174, 178–179

    Actuarial reviews, 171, 181

    Administrative expenses

    • education, 185

    • pension, 172, 176, 179

    Administrative structures, eliminating duplication of, 57

    Adverse shocks, 10

    African Development Bank (AfDB), 243

    • debt restructuring and, 276

    • Policy-Based Guarantee Option, 245, 246, 247

    Age of population, 47–48, 48t

    Aggregate demand, 9

    Agricultural sector, 27

    • commodity exports, 17f

    Agroprocessing, 452

    Air access, 444, 445f, 453

    Airport indicators, 445f

    Akaike information criteria (AIC), 229n4

    Allowances

    • for health sector workers, 189, 189t

    • proliferation of, 165–166

    • streamlining, 168

    Anguilla, 53

    • macroeconomic statistical issues, 497

    • offshore financial centers in, 13

    • regional integration agreement, 61t

    Annual plans, parastatal, 215

    Annuities, 323

    Antigua, 129n1

    • debt restructuring in, 9, 278

    • offshore financial centers in, 13, 349–376

    • revealed comparative advantage in, 434t

    Antigua and Barbuda, 53

    • bank run in, 299

    • macroeconomic statistical issues, 497

    • political calendar and leadership, 42

    • regional integration agreements, 61t

    • revealed comparative advantage, 431–432

    • sovereign debt restructuring in, 233, 278–279, 278f

    Antigua and Barbuda Investment Bank (ABIB), 289, 300, 303, 369

    Anti-inflationary policy anchor, free float and, 408

    Anti-money-laundering measures/combating financing of terrorism (AML/CFT), 360

    Arrivals to population, 95, 103t, 104t

    Article 56, 29

    Assembly of Parliamentarians, 5

    Asset quality, 294, 295f

    Assets

    • banking sector, 286, 318t

    • control by trustees, 330–331

    • credit union, 307, 308–309, 310f, 318t

    ATMs, 467, 468t

    Automated System for Customs Data, 156

    B

    Bahamas, 300

    • offshore financial centers and, 363

    BAICO, 11–12, 312, 314, 315t, 326

    • collapse of, 321, 322t

    BAICO Bahamas, 323, 324f

    BAICO Trinidad, 328

    Balance of payments, 20t, 491–492

    • Eastern Caribbean Central Bank and, 384

    Balance of Payments and International Investment Position Manual, sixth edition, 16, 489

    Balance of payments crisis, 406

    Banana market, 425, 428–430, 429f

    BanInter, 239

    Bank-assets-to-GDP ratio, 286

    Bank balance sheets, 15, 409

    Bank branches, 286, 447, 467, 468t

    Bank Crozier Limited, 290

    Banker to governments, 382

    Bank for International Settlements (BIS), 350, 362, 363

    Banking Act, 298, 300

    Banking licenses, 67

    Banking sector/banks, 10–11, 54, 67, 285–305

    • asset quality, 294

    • assets, 318t

    • bank resolution, 73, 298–300, 395

    • capital adequacy, 294–296, 295f, 296f

    • debt restructuring and, 270–271

    • deposit insurance, 300–301, 301t

    • depth of, 462–466, 463f

    • effect of offshore financial centers on local, 355

    • exposure to public debt, 118t

    • financial sector linkages, 288–290, 288t

    • foreign (see Foreign banks)

    • foreign currency exposure, 297–298, 298t

    • governments and parastatals, 289–290, 289f

    • indigenous (see Indigenous banks)

    • international, 353

    • lending to government, 297, 297f

    • linkages, 285

    • liquidity, 290–293, 291f, 292t, 293f, 294f

    • mergers in, 67

    • nonbank financial sector and, 290

    • offshore, 290

    • performance in past decade, 290–298

    • profitability, 296–297, 296f

    • regulation and supervision of, 14, 73–74, 301–303, 329, 381

    • stability of, 437–439

    • structure of, 285–287, 286t

    Banking Sector Reserve Fund, 271

    Banking Supervision Department, 395

    Banking System Reserve Fund, 393

    Bank of Antigua (BOA), 10, 67, 289, 299, 312

    • run on, 299, 369

    Bank of Montserrat, 299, 310

    Bank of St. Lucia, 67

    Bank recapitalization, 74

    Bank reserves, 388

    Bank resolution, 73, 298–300, 395

    Bank run, in Antigua and Barbuda, 299, 369

    Bankruptcy laws, 461

    Bank secrecy, 358

    Barbados, 300

    • British Caribbean Currency Board (BCCB) and, 382n2

    • land area, 447

    • as offshore financial center, 352, 363

    • withdrawal from Eastern Caribbean Currency Authority (ECCA), 382

    Barbuda, 129n1. See also Antigua and Barbuda

    • offshore financial centers in, 13

    Barclays Bank, 286n3

    Basel Core Principles for Effective Banking Supervision (BCPS), 294n8, 304, 370

    Basel I standard, 302

    Basel II standard, 302

    Bear Stearns, 236

    Belize, 300, 316, 430

    • sovereign debt restructuring in, 9, 233, 235–238, 236f, 238f, 272

    Benchmarking, 15

    Beneficiary registry, 196

    Benefits, employment, 165

    Bermuda, 316

    Berth, 443

    Bilateral agreements, 59–63, 63

    Bilateral creditors

    • in Dominica, 257

    • in Grenada, 263

    Bilateral debt relief, 114

    Bilateral exports, 413–414, 414t

    Bilateral grants, 132

    Binding constraints, 425

    Board of Directors, ECCB, 381, 383

    Bond auctions, 336, 337–338, 344

    Bound tests, public debt sustainability, 126–127f

    Brain drain, 31

    Branches, bank, 286, 447, 467, 468t

    British American Insurance Company. See BAICO

    British American Trinidad, 328

    British banks, 286

    British Caribbean Currency Board (BCCB), 14, 55t, 382

    British colonies, 54

    Budget constraints, 5, 168

    Building societies, 395

    Burden-sharing, 74

    Business

    • attracting, 426

    • obstacles to conducting, 474, 475f (see also Doing Business Indicators; Enterprise Surveys)

    Business cycles, 28, 388f

    • fixed exchange rates and, 412

    Business Outlook Survey, 493

    Business tax rate, 445

    C

    CAMEL indicators, 316, 317

    Canada, insurance crisis in, 334

    Canadian banks, 10, 286, 288

    Canadian dollar, as anchor for OECS/ECCU, 416–417, 417f, 418t, 421t

    Canadian Imperial Bank of Commerce (CIBC), 286n3

    Canadian International Development Agency (CIDA), 156

    Cancer

    • mortality rate, 188t

    • prevalence of, 49, 50t

    Capital accounts, 21t, 381, 407

    Capital accumulation, 79

    Capital adequacy, 294–296, 296f, 315

    Capital buffers, 302

    Capital flows

    • offshore financial centers and, 367–368, 368t

    • reported in balance of payments, 492

    • short-term, 387

    Capital gains, tax on, 144

    Capitalization, international standards for, 68

    Capital markets, 12–13, 67–68, 335–348, 466–467

    • challenges and recommendations, 340–345

    • government securities issuance, 345

    • investors, 338–340, 344

    • primary issuance and auctions, 337–338, 337f

    • primary market, 341–344

    • Regional Government Securities Market and, 337–340

    • secondary market, 340, 340f, 344–345

    • setup and operations, 335–337

    Capital needs, 285

    Capital project portfolios, 204

    Capital returns, 426

    Capital revenue, 130t

    Capital spending, 197–205

    • rationalization measures, 163t

    Capital-to-labor ratios, 85

    Cardiovascular disease, mortality rate, 188t

    Caribbean Agreement on Social Security (CASS), 175, 180

    Caribbean approach, 263n27

    Caribbean Assets and Liabilities Management Services (CALMS) Ltd., 299

    Caribbean Basin Economic Recovery Act (CBERA), 62n8

    Caribbean Basin Initiative, 62

    Caribbean Catastrophic Risk Insurance Facility, 441

    Caribbean Centre for Development Administration, 491

    Caribbean Community (CARICOM), 5, 25, 56

    • customs union, 129

    • exchange rate regime and, 387

    • natural resources and comparative advantage, 432

    Caribbean Community (CARICOM) Single Market and Economy (CSME), 26, 56

    Caribbean Community (CARICOM) Treaty, 452

    Caribbean Confederation of Credit Unions (CCCU), 309

    Caribbean Customs Law Enforcement Council, 154

    Caribbean Development Bank (CDB), 6, 30, 33, 111, 236, 238, 249

    • debt restructuring and, 276

    • Dominica debt restructuring and, 254, 255, 257–258, 259–260

    Caribbean economies, 425

    Caribbean Free Trade Area, 56

    Caribbean Money Market Brokers, 328

    Caribbean Organization of Tax Administration, 154

    Caribbean Regional Technical Assistance Center (CARTAC), 209, 488n5, 489, 490, 493, 494

    Caribbean Secondary Education Certificate (CSEC) exam, 182, 183f

    Caribbean Tourism Organization, 491, 493

    Caribbean Union Bank, 310

    Cash transfers, 198

    Categorical targeting, 213

    Cayman Islands, 353, 363

    Ceiling on insurable earnings, 177

    Censored Tobit estimation methodology, 342, 343t

    Center of excellence, 16, 316, 494

    Central America, 63

    • tax incentives in, 147

    Central Bank Act, 328

    Central Bank of Trinidad and Tobago (CBTT), 326–327

    Centralized fiscal authority, 70

    Central statistical offices (CSOs), 74, 494

    Child mortality, 36t, 38t

    Chile, conditional cash transfer program in, 198

    Cholesky decomposition of errors, 228–229

    Chronic diseases, prevalence of, 49t

    Chronic liquidity shortages, 393

    CIBC First Caribbean, 286n3

    Civil service employment and wages, 163–170

    • parastatals and, 205–206

    • rationalization measures, 162t

    • as share of population, 165, 165f

    Civil service pension schemes, 160, 162t, 165n11, 168, 176

    • reform of, 8, 168–169, 180–181

    Claw back option, 269, 276

    CL Financial Limited (CLF)

    • collapse of, 11–12, 314–315, 321, 326–328

    • consolidated balance sheet, 325f

    • history of, 323–326

    • organizational structure, 324f

    • spillover effects of collapse, 329

    CLICO. See Colonial Life Insurance Company (CLICO)

    CLICO International Life (CIL), 11, 321

    Climate change, 30–31

    Climate Vulnerability Monitor, 30

    Climate Vulnerable Forum, 30

    CMMB Ltd., 324f

    Cobb-Douglas production function, 83

    Coca-Cola Co., 353

    Collateral, 392, 448

    Collections enforcement, 7

    Collective action clauses (CACs), 10, 235, 237, 242, 245, 247, 270

    Collective investment schemes, 13, 353

    College of Regulators, 73, 330, 397

    Colonial Life Insurance Company (CLICO), 312, 315t, 323

    • collapse of, 11–12, 314, 321, 322t

    Colonial Life Insurance Company (CLICO) Barbados, 323, 326, 329

    Colonial Life Insurance Company (CLICO) Guyana, 324f

    Colonial Life Insurance Company (CLICO) Investment Bank, 324f, 326, 328

    Colonial Life Insurance Company (CLICO) Suriname, 324f

    Colonial Life Insurance Company (CLICO) Trinidad, 324f, 326, 328

    Colonial Life Insurance Company (CLICO) Turks and Caicos, 324f

    Commercial banks, 10, 285

    • branches, 447

    • capital market and, 339–340

    • credit unions vs., 310–313, 313t

    • debt restructuring in Seychelles and, 245

    • interest rates, 389, 390–391t

    • by territory, 396t

    Commercial creditors

    • debt restructuring and, 235

    • St. Kitts and Nevis, 268

    Commercial debt restructuring, in Grenada, 263

    Commissions, broker, 344

    Commitment controls, for public investment, 202, 204

    Commodity exports, 17f

    Common external tariff (CET), 63, 64t, 65

    Common market, 58, 60

    Common pool of foreign reserves, Eastern Caribbean Central Bank and, 383

    Common regional sovereign bonds, 72

    Commonwealth Secretariat, 447

    Communicable diseases, 34

    Communications, cost of, 442–443

    Communications sector, 27–28

    Community banking, 287

    Community targeting, 213

    Comovements in output, 412–413, 413t

    Companies Act, 300

    Comparability of treatment clause, 241–242

    Comparative advantage index, 427

    Compensation and job classification review, 169

    Competition, innovation and, 461

    Competitiveness, 425, 426–427, 427f. See also External competitiveness

    • Eastern Caribbean Central Bank and, 387

    • indicators of, 427

    • of tourism sector, 79, 91–92, 100f

    Complementary factors, 441–445

    • competitiveness and, 426

    Compression ratio, 166–167

    Concessional external financing, 118

    Conditional cash transfer programs, 198

    Confederation Life of Canada, 334

    Consolidated supervision, of banks, 302, 303, 304–305

    Consolidation, of insurance sector, 331

    Constitutional reform, 40

    Construction costs, 449t

    Construction permitting, 98f

    Consultative Group on Exchange Rates (CGER), 387

    Consumer price index (CPI), 16, 21t, 490

    Consumer Price Index Manual, 490

    Contagion, 285, 314

    Contingent liabilities shock, 126–127f

    Contract enforcement, 15, 99f, 470–471, 471f, 472f

    Contract management, public investment, 202

    Contribution periods, 174

    Contribution rates, to pensions, 8, 177

    Contributions, constructing real wages and weeks of, 455

    Contributory scheme, civil service pensions as, 181

    Convergence, 95, 103t, 104t

    Cooperative credit unions, 395

    Cooperative Societies Bill (Comprehensive Credit Union Act), 309, 315

    Cooperatives society ordinance, 309

    Coordinated Portfolio Investment Survey (CPIS), 350, 362, 366

    Coordinated supervision, of banks, 73–74

    Coordination failure, 73

    Core principles, for insurance sector, 329–330

    Corporate bonds, 68

    Corporate equity, 346

    Corporate governance, international standards for, 68

    Corporate income tax (CIT), 140–141, 141t, 142f, 144, 148

    • offshore financial centers and, 359

    • tax incentives and forgone, 146, 146f

    Corporate securities, 346

    Corporate securities markets, 13

    Corrective action, for banks, 302

    Corruption

    • as obstacle to doing business, 474, 476f

    • perception of, 91, 92f

    Cost

    • of communications, 442–443

    • of electricity, 442

    • of finance, 447–448, 450f

    • to import, 451f

    Cost audits, health facility, 192

    Cost-benefit analyses, for public investment, 204–205

    Cost controls, health care, 190

    Cost recovery

    • for hospital services, 191

    • for tertiary education, 184–185

    Cotonou agreement, 59

    Council of Ministers, 60, 60f

    Countercyclical policies, 70

    Country risk, 433

    Credit

    • banking sector, 462, 462t, 464f

    • obtaining, 98f, 471f, 472–473

    • to private sector, 447, 462

    Credit ceilings, 388

    Credit growth, 291, 291f, 292f

    Credit information bureaus, 473

    Creditor bureaus, 15

    Creditors, debt restructuring and engagement with, 275–276

    Creditors’ committee, 237

    Credit risk ratings, 439t

    Credit unions, 11, 73, 290, 307–318, 395

    • commercial banks vs., 310–313, 313t

    • history/development of, 309, 466

    • indicators for, 311t, 312t, 318t

    • membership, 307–308, 308f, 309t

    • PEARLS indicators, 309, 317

    • recent developments in, 307–310

    • strengthening regulation and supervision of, 314–316

    Creditworthiness, of bond issuers, 12, 338

    Cricket World Cup (2007), effect on banking system, 285

    Crime, 25, 34

    • as obstacle to doing business, 476f, 478

    • victimization statistics, 47, 47t

    Crime rates, 440

    Cross-border banks, resolution of, 305

    Cross-border capital flows, 352

    Cross-border financial flows, into offshore financial centers, 362

    Cross-border fiscal transfers, 72

    Cross-border investment, 338–339

    Cross-border spillovers, 70

    Cross-border supervisory efforts, for banks, 302, 304–305

    Cross-border trade, 99f

    Cross-default clauses, 10, 240, 242

    Cross-ownership of banks, 288–289

    Cumulative multiplier (CM), 221, 230

    Currency. See also Exchange rate regimes; Optimal currency area

    • Eastern Caribbean Central Bank and authority for, 381–382

    • stability of, 439

    Currency board arrangements (CBAs), 406

    Currency boards, 14, 405, 406, 407–408, 409t

    • public debt and, 119

    Currency in circulation, 383

    Currency peg, 219

    Currency union, 381

    Current account, 21t, 381

    Current account balance, 425

    Current account deficit, 425, 454f

    Customs administration reforms, 7

    Customs data, automated system for, 156

    Customs reform, 149–150

    Customs service charge, 134, 136t

    Customs union, 5, 58

    D

    Daehan Life, 334

    Daewoo Group, 334

    Data disclosure, credit unions and, 307

    Data dissemination, of macroeconomic statistics, 493

    Dealer-based model, for securities, 345

    Debt. See also

    Public debt; Sovereign debt

    • in Caribbean offshore financial centers, 375f

    Debt decomposition, 6

    Debt exchange, 10. See also Sovereign debt restructuring

    Debt-for-land swaps, 10, 271

    Debt-for-equity swaps, 265 (see also Debt-for-land swaps)

    Debt guarantees, 114

    Debt management, 54

    Debt management units, 72

    Debt overhang, 200, 437

    Debt restructuring, 6, 9–10, 111, 114. See also Debt exchange; Sovereign debt restructuring

    Debt-service obligations, parastatals and, 206–207

    Debt-service ratios, 274f

    Debt sustainability analysis, 115, 116–118, 122–125t, 126–127f

    Debt-to-GDP ratio, 6, 113, 116, 120t

    Decision-making process, Eastern Caribbean Central Bank, 383

    Delivery vs. payment (DVP) procedures, 394

    Demand liabilities, 14

    Demographic indicators, 19t

    Demographics, of OECS/ECCU, 4–5, 19t, 35

    Dependency ratio, 176

    Deposit insurance, 285, 300–301, 301t

    Deposit insurance scheme, 11

    • union-wide, 73

    Deposits

    • bank, 286, 288, 462, 462t, 464f

    • credit union, 313, 313t

    • private sector, 293, 293f

    Derivative structures, 259

    Development assistance, 26, 27

    Development banks, 392, 395, 466

    Development financing, 30–32, 32f

    Development role, of ECCB, 397–399

    Diabetes, prevalence of, 49t

    Diagnosis-related groups (DRGs), 192–193

    Direct taxes, 133f, 140–145

    Disclosure requirements, 336

    Discount bonds, debt restructuring in St. Kitts and Nevis, 268, 269

    Discount rate, 387, 389

    Diseconomies of scale, 452

    Diversification, 26

    • economic growth and, 79, 93

    • economic risk and need for, 452

    • risk, 335

    • into tourism, 4, 28, 29–30

    Diversified financing, capital markets and, 335

    Doing Business Indicators, 15, 91, 91f, 387, 461, 470–474, 471f, 472f

    • contract enforcement, 470–471, 471f, 472f

    • getting credit, 471f, 472–473

    • paying taxes, 473–474, 473f

    • registering property, 470, 471f, 472f

    • resolving insolvency, 471–472, 471f, 473f

    Doing Business rankings, 98–99f

    Dollarization, 14, 405, 406, 407, 409t

    Domestic debt, 113t

    Domestic goods and services, taxes on, 134–139, 137t

    Domestic price stability, 69

    Dominica, 53, 129n1

    • banana production and, 428

    • Beneficiary Identification System in, 196, 197

    • credit unions and, 11

    • debt restructuring in, 9, 254–260 (see also Sovereign debt restructuring)

    • macroeconomic statistical issues, 498–499

    • political calendar and leadership, 42

    • regional integration agreements, 61t

    • revealed comparative advantage in, 434t

    • sovereign debt restructuring in, 233, 254–260, 255f, 256f, 257t, 258t, 272–274

    Dominican Republic

    • banana production and, 430

    • bilateral agreement with, 63

    • deposit insurance and, 300

    • sovereign debt restructuring in, 9, 233, 238–242, 240f, 272

    Double Taxation Avoidance Agreements (DTAA), 356, 357, 373

    Drivers of growth, 27

    Drug trafficking, 34

    Dual budgeting, 201

    Duty-free importation, 29

    E

    Earthquakes, 54

    East African Community (EAC), tax incentives in, 147

    East Caribbean Currency Authority (ECCA), 382

    East Caribbean Financial Holding Company Ltd., 289

    Eastern Caribbean Amalgamated Bank (ECAB), 67, 289, 300

    Eastern Caribbean Central Bank (ECCB), 11, 14, 16, 53, 56

    • capital markets and, 336

    • development role of, 397–399

    • exchange rate management and, 386–387

    • exchange rate regime and, 405, 406

    • external sector statistics and, 491

    • financial sector regulation and supervision and, 394–397

    • history of, 381–382

    • institutional framework, 382–386

    • insurance supervision and, 326

    • interbank market, 289

    • liquidity management and, 392–393

    • macroeconomic statistics and, 496–497

    • Monetary and Financial Statistics (MFS), 493

    • monetary policy and, 387–392, 388f, 389t, 390–391t

    • overview, 381–386

    • payments system, 394

    • policy developments, 401–403

    • rebased national accounts and, 489

    • revenue authorities and, 151

    • role of, 386–403

    • supervision of credit unions and, 314–316

    • supervision of offshore banks and, 369–370

    Eastern Caribbean Central Bank (ECCB) Agreement, 55t

    Eastern Caribbean Central Bank (ECCB) Agreement Act, 298, 300, 381, 383, 388, 397

    • bank oversight and, 301–303

    Eastern Caribbean Central Bank (ECCB) Monetary Council, 12, 60, 60f, 68, 73, 151, 381, 382–383

    • credit union supervision and, 314–315

    • discount rate, 389

    • Fiscal Tranche II and, 386

    • oversight of banks and, 301

    • regulation of insurance sector, 331

    • single financial space and, 398

    Eastern Caribbean Central Bank (ECCU) Bankers Association, 394

    Eastern Caribbean Central Securities Depository, 336, 347

    Eastern Caribbean Central Securities Registry, 336, 347

    Eastern Caribbean Common Market (ECCM), 56

    Eastern Caribbean Common Market (ECCM) Agreement, 55t

    Eastern Caribbean currency, 53

    Eastern Caribbean Currency Authority (ECCA), 14, 55t, 56

    Eastern Caribbean Currency Union (ECCU), 487

    Eastern Caribbean (EC) dollar, 14, 382

    Eastern Caribbean Economic and Currency Union (OECS/ECCU), 3, 53, 406

    • banking sector, 10–11

    • capital markets, 12–13

    • contributions to growth in, 84f

    • credit unions, 11

    • debt restructuring (see Sovereign debt restructuring)

    • economic growth in, 5–6

    • economic indicators, 17–18f, 20t, 21–22t, 160t

    • economic integration (see Economic integration)

    • expenditure rationalization for fiscal stability, 8

    • financial indicators, 20t, 160t

    • financial sector, 10–14

    • fiscal multipliers, 9

    • fiscal policy and administration in, 6–10

    • fiscal revenue, enhancing, 7

    • institutional structure, 5, 60f

    • insurance sector, 11–12

    • integration within, 57

    • macroeconomic statistics for policymaking (see Macroeconomic statistics)

    • monetary and exchange rate issues, 14–15

    • offshore financial centers in, 13–14, 362–365

    • performance relative to world, 88f

    • policy coordination in, 70–75, 70f

    • private sector development (see Private sector development, impediments to)

    • public debt in (see Public debt; Sovereign debt)

    • social, political, and economic setting, 4–5, 19t

    Eastern Caribbean Economic and Currency Union (OECS/ECCU) Payments Council, 394

    Eastern Caribbean Enterprise Fund (ECCF), 68, 398

    Eastern Caribbean Financial Holding Company Ltd., 67

    Eastern Caribbean Home Mortgage Bank, 467

    Eastern Caribbean Institute of Banking, 394, 397

    Eastern Caribbean Securities Commission, 394

    Eastern Caribbean Securities Exchange (ECSE), 12, 301n12, 335, 347–348, 395, 398, 466–467, 467t, 468t

    Eastern Caribbean Securities Market (ECSM), 12, 68, 335, 347–348

    Eastern Caribbean Securities Regulatory Commission (ECSRC), 301n12, 316, 395

    Eastern Caribbean Supreme Court, 154

    Eastern Caribbean Unit Trust (ECUT), 68, 398

    Econometric analysis, of offshore financial centers, 365–369

    • data description for, 372–373

    Econometric analysis of growth, 86–90

    Economic Affairs Council, 60, 60f

    Economic and Monetary Community of Central Africa, 336

    Economic cooperation relationships, 30

    Economic diversification, growth and, 79, 93

    Economic growth, 5–6, 79–106

    • accounting for, 82–86, 101t

    • average doing business rankings, 98–99f

    • contributions to (1970-2007), 96f

    • data and variables, 95

    • econometric analysis of, 86–90

    • economic diversification, 79, 93

    • educational attainment indicators, 106t

    • impact of debt on, 89–90, 89f, 104t

    • institutions and, 90–91

    • in international context, 80–82

    • offshore financial centers and, 349, 354–355, 366–367, 367t

    • output growth, 102t

    • public investment and, 200

    • tourism and, 79, 91–92, 97f, 100f, 103t

    Economic history, 25

    Economic indicators, 17–18f, 20–22t, 160t

    Economic integration, 27

    • capital markets and financial sector integration, 67–68

    • labor market integration, 68–69

    • level of, 57–70

    • monetary integration, 69–70

    • multipronged approach to, 56–57, 57f

    • phases of, 58

    • tax policy coordination and, 7

    • trade integration, 58–67

    Economic outlook, stability of, 437

    Economic Partnership Agreement (EPA), 63

    Economic policy, cooperation and convergence of, 335

    Economic risk, 425, 433, 437–439, 437f

    Economic setting, 4–5, 25–32

    • development financing, 30–32

    • factors shaping current situation, 28–30

    • growth periods, 26–28, 26f

    Economic Union Treaty, 398, 487

    Economies of scale, 29, 442

    Education, 32

    • average years of, 441, 441f

    • expenditures on, 8, 181–186, 181t, 182f, 210–211

    • rationalization measures, 162t

    Educational attainment, 45–46, 46t, 93, 106t

    Education Trust Fund, 196

    Eight-Point Stabilization and Growth Program, 11, 54, 68, 71, 301

    Electricity

    • access to, 98f, 442

    • cost of, 442

    • indicators, 442f

    • as obstacle to doing business, 15, 474, 475–477, 476f

    Eligibility criteria, for social assistance, 196–197

    Emergency Assistance for Natural Disasters initiative, 265

    Emergency Disaster Database (EM-DAT), 84

    Emergency liquidity assistance, 393

    Emergency powers, to Eastern Caribbean Central Bank, 395

    Emerging markets, 480–481

    Emigration, 31

    Employer of last resort, 27

    Employment

    • adjusting in response to changing needs, 166

    • civil service, 165, 165f

    • distribution of types of, 45, 45t

    • rigidity of, 446

    Employment census, 169

    Enforcement

    • banking regulation, 302

    • tax administration, 153

    Enterprise Surveys, 15, 448, 449, 461, 474–478, 474f, 475f

    • access to finance, 467, 469f

    • crime, 476f, 478

    • infrastructure, 475–477, 476f

    • regulations and taxes, 476f, 477, 477f

    • workforce, 476f, 478, 478f

    Equilibrium exchange rate, 387

    Equities, 68

    Equity, in Caribbean offshore financial centers, 375f

    Errors of exclusion, in social assistance, 194

    Escrow accounts, 10

    Established workers, 166n12

    Eurobond, 243

    Euromarkets, 352

    Euromoney country risk rating, 433, 437

    Euromoney framework, 437

    European Central Bank (ECB), 382, 487, 488

    European Union, 54, 56

    • as example of harmonization, 487

    • preferential access to, 59

    • regional credit markets, 336

    European Union Code of Conduct, tax incentives and, 147

    European Union single market, 425, 428–429

    Eurostat, 487, 488

    Event risk, 425, 441

    Evian approach, 243, 245

    Ex ante indicators, of competitiveness, 433–451

    • complementary factors, 441–445

    • cost of and access to factors, 446–451

    • economic risk, 433, 437–439, 437f

    • event risk, 441

    • factor productivity, 433

    • finance, 447–448, 450f

    • foreign exchange risk, 440

    • human capital, 441, 441f

    • infrastructure, 442–444, 442f, 443f, 443t, 444t, 445f

    • intermediate inputs, 451, 451f

    • labor, 446–447, 446f, 447f, 448f

    • land, 447, 449f, 449t

    • political risk, 440, 440f

    • tax burden, 445, 445f

    Exchange rate management, Eastern Caribbean Central Bank and, 14, 386–387

    Exchange rate policy, 9

    Exchange rate regimes, 3, 14–15, 69, 406–408, 409t. See also Optimal exchange rate regime

    • currency boards, 405, 406, 407–408, 409t

    • dollarization, 405, 406, 407, 409t

    • full float, 406, 408, 409t

    Exchange rate stability, 69

    Exchange rate volatility, 405

    Excise taxes, 132, 140, 140t, 148

    Executive Flexible Premium Annuities, 323

    Exemptions, to VAT, 138

    Exit consents, 240, 242

    Exogenous shocks, 54

    Expenditure-based adjustments, 160

    Expenditure programs, 9

    Expenditure rationalization strategy, 6, 8, 160–161, 162–163t

    Expenditure surveys, 44–50

    Export industry, 54

    Export market shares, 426, 427, 428–430, 428f, 429f

    Exports

    • bananas, 425, 428–430, 429f

    • bilateral, 413–414, 414t

    • decline in, 425

    • to member countries, 66t

    Ex post indicators, of competitiveness, 428–433

    • foreign direct investment shares, 430, 432f

    • market share, 428–430, 428f, 429f

    • revealed comparative advantage, 430–433, 434–435t

    • tourism shares, 430, 431f

    Expropriation risk, 440

    Extended Balance of Payments Services, 491

    Extended Credit Facility, 30, 265

    Extended Fund Facility (EFF), 248

    External balance sheet, small international financial centers, 374t

    External competitiveness, 425–456

    • complementary factors, 441–445

    • cost of and access to factors, 446–451

    • economic risk, 433, 437–439, 437f, 439f, 452

    • event risk, 441

    • ex ante indicators, 433–451

    • ex post indicators, 428–433

    • factor productivity, 433, 436f

    • finance, 447–448, 450f

    • foreign exchange risk, 440

    • gross and net current account deficit, 454f

    • human capital, 441, 441f

    • indicators of, 427

    • infrastructure, 442–444, 442f, 443f, 443t, 444t, 445f, 452–453

    • intermediate outputs, 451, 451f

    • labor, 446–447, 446f, 447f, 448f, 455–456, 456f

    • land, 447, 449f, 449t

    • market share, 428–430

    • political risk, 440, 440f

    • revealed comparative advantage, 430–433, 434–435t

    • strengthening financial sector, 452–453

    • tax burden, 445, 445f

    External debt, 20t, 113t

    External grants, 132

    Externality, index of, 427

    External sector statistics, 491–492

    External tariffs, 133–134

    F

    Factor markets, 54

    Factor productivity, 433

    Federal Reserve System of the United States, 386

    Finance

    • access to, 15, 448–449, 450f

    • competitiveness and, 447–448, 450f

    • cost of, 447–448

    • as obstacle to doing business, 474, 476f

      Regional Government Securities Market and cost-effective, 335

    • role in fostering development, 461

    Financial access, 467–470, 469f

    Financial Access Survey (FAS), 15, 461, 467

    Financial accounts, 21t

    Financial Action Task Force (FATF), 13, 349, 360, 361, 362t

    Financial conglomerates, 304

    Financial deepening, 462–467

    Financial development, 461

    Financial gap, 464

    Financial institutions, resolving weak, 70

    Financial intermediation role, of credit unions, 307

    Financial markets, harmonized regulation of, 335

    Financial programming, 54

    Financial regulatory havens, 359–360

    Financial safety nets, 54

    Financial sector, 10–14

    • banking sector and, 288–290

    • integration of, 67–68

    • regulation and supervision of, 394–397

    • stability of, 381, 437–439

    • strengthening, 452–453

    Financial Sector Adjustment Company (FINSAC), 333

    Financial Sector Assessment Program (FSAP), 360

    Financial sector channels, 10

    Financial sector coordination, 72–74

    Financial Sector Support Fund (FSSF)

    • in Jamaica, 248, 252, 253

    • in Seychelles, 248

    Financial services, 452

    Financial soundness indicators, 10, 493

    Financial Stability Board (FSB), 13, 349, 351, 360

    Financial Stability Forum, 360n17

    Financial statistics, 493

    Financial Supervisory Commission (FSC), 333

    Financial System Stability Assessment (FSSA), 323, 326

    First Caribbean International Bank, 286n3

    First Citizens Bank, 328

    First International Bank of Grenada, 290

    Fiscal and political union, 58

    Fiscal benchmarks, 70

    Fiscal consolidation, 54, 452

    • public debt and, 114

    Fiscal deficits, 54

    Fiscal discipline, 5

    Fiscal Monitor, 89, 90

    Fiscal multipliers, 9, 219–230

    • calculation of, 230

    • data and models, 226–230

    • estimation of, 221–223, 228–230

    • evaluation of, 220

    • role of, 219–220

    Fiscal planning, public investment and, 204

    Fiscal policy, 6–10

    • coordination of, 5, 70, 71–72

    • stimulation of economic activity using, 219

    Fiscal reform, 54

    Fiscal Reserve Tranche II, 300n11

    Fiscal revenue. See Government revenue

    Fiscal risk, spending on parastatals and, 205, 206–207

    Fiscal shocks, GDP response to, 220, 221–223, 222f

    Fiscal space, 437, 452

    Fiscal Tranche II, 74, 386

    Fiscal union, 5, 13, 72, 345

    Fitch Ratings, 252

    Fixed exchange rate, 14, 381, 405

    • Eastern Caribbean Central Bank and, 386, 387

    Fixed-income securities, 335

    Fixed-peg currency, 14, 382

    Flexible exchange rate, 14–15, 68, 405

    Flexible Premium Annuities, 323

    Flight cost, 444

    Floating exchange rate, 406, 408, 409t

    Florida real estate investments, 326, 327f

    Food voucher program, 195n63

    “Foot Review,” 359

    Foreign assistance, 5

    Foreign banks, 10, 67, 285–286, 288

    • liquidity ratio, 292–293

    Foreign capital inflows, 67

    Foreign corporations, offshore financial centers and, 369

    Foreign currency exposure, 297–298, 298t

    Foreign currency loans, 297–298, 298t

    Foreign currency positions of banks, 409, 410t

    Foreign currency risk, 335

    Foreign direct investment (FDI), 13, 26f, 27, 492

    • economic growth and, 79, 82

    • monitoring, 492

    • offshore financial centers and, 352, 353

    • round-tripping of, 352n4

    • tax incentives and, 145, 146n14

    Foreign direct investment (FDI) shares, 427

    • competitiveness and, 428, 430, 432f

    Foreign exchange reserves, 410, 411t

    Foreign exchange risk, 298, 440

    Foreign incorporation, 285

    Foreign reserves

    • currency board and, 407

    • Eastern Caribbean Central Bank management of, 383–384

    Formal sector GDP, 455–456

    Forum on Tax Administration, 359

    Free economic zones, 145

    Free trade area, 58

    Free Trade Area of the Americas, 129, 132n5, 134

    Full float, 406, 408, 409t

    Functional review, 168, 169

    G

    GDP. See also Real GDP

    • formal sector, 455–456

    • government spending to, 95, 103t, 104t

    • health care spending as percent of, 190

    • industry-based estimates of, 489–490

    • investment to, 95, 103t, 104t

    • at market prices, 19t

    • nominal, 17f, 19t

    • production accounts deriving, 488

    • ratio of domestic bank deposits to, 462, 462t, 464f

    • ratio of investment to, 95, 103t, 104t

    • ratio of private credit to, 462, 462t, 464f

    • ratio of public debt to, 274–275, 275f

    • response to fiscal shocks, 220, 221–223, 222f

    • volatility of GDP growth, 82, 82f

    • wage-bill-to-GDP ratio, 163, 163t

    GDP-by-expenditure statistics, 488–489

    GDP per capita, 17f, 19t, 33t, 81–82, 81f, 95

    • debt and, 90, 90f

    • education expenditure vs., 182f

    • ratio of personal income tax threshold to, 143f

    • real, 95

    GDP series, rebased, 16

    General Agreement on Tariffs and Trade, 58

    General Agreement on Trade in Services, 58–59

    General Data Dissemination System (GDDS), 493

    General Employee CCU, 310, 312t

    Geographic access to finance, 15

    Geographic targeting, 213

    Gini coefficient, 19t, 33t

    Global competition, 54

    Global Competitiveness Reports, 427

    Global Compliance Snapshot, 361, 362t

    Global Forum on Transparency and Exchange of Information, 13, 349, 351, 356, 357

    Global Forum Website, 373

    Global Property Guide, 447

    Governance, banking, 302

    Governance Indicators, 440, 440f

    Government

    • access to Regional Government Securities Market, 342–343

    • banks and, 289–290, 289f

    • role in public expenditure rationalization, 169

    Government consumption multiplier, 220, 221, 222f, 224f

    Government credit, allocation of, 385t

    Government debt securities, 13, 335

    Government exposures, 285

    Government finances, strength of, 437

    Government Finance Statistics Manual, 209, 492

    Government guarantees, Grenada debt

    • restructuring and, 263–265

    Government revenue, 7, 129–148

    • administrative reform efforts, 149–152

    • direct taxes, 140–145, 141t, 142f, 143f, 143t, 145t

    • generated from offshore financial centers, 354

    • indirect taxes, 133–140, 135f, 136t, 137f, 137t, 138t, 139f, 139t, 140t

    • optimal revenue administration, 149–156

    • reform challenges in micro states, 152–153

    • regional coordination and harmonization, 154–156

    • structure of, 130t

    • tax incentives, 145–148, 146f

    • tax revenue and policies, 131f, 132–133, 133f, 134f

    Government savings banks, 286

    Government securities

    • common issuance of, 345

    • Treasury bills, 12, 336, 337–338

    Grants, 129, 130t, 132

    • Dominica debt restructuring, 260

    • external, 132

    Grenada, 53, 129n1

    • banana production and, 428

    • banking sector development over time, 464, 465f

    • debt restructuring in, 9, 261–265

    • eligibility for social assistance in, 195n64

    • macroeconomic statistical issues, 499–500

    • political calendar and leadership, 42

    • regional integration agreements, 61t

    • revealed comparative advantage in, 434t

    • sovereign debt restructuring in, 233, 261–265, 262f, 263t, 264f, 274

    • spending on social assistance and poverty incidence, 195f

    Grenada Electricity Services Ltd., 467

    Grenadines. See St. Vincent and the Grenadines

    Gross current account deficit, 454f

    Gross earnings, 455

    Group of 20 (G-20), 356, 357, 358, 359, 360, 361

    Growth accounting, 6, 79, 82, 83–85, 101t

    Growth cycles, 28

    Growth periods, 26–28, 26f

    Growth shock, 126–127f

    Guarantee facility, debt restructuring in St. Kitts and Nevis and, 270

    H

    Hamilton, Alexander, 263n27

    Hard peg, 406

    Harmful Tax Competition Initiative, 355, 372

    Harmonization, 487

    • of macroeconomic statistics, 16, 74–75, 487, 488

    • of tax policy, 154–156

    Harmonized Society for Worldwide Interbank Financial Telecommunication (SWIFT), 394

    Harmonized system (HS), 58n6

    Health, 25, 34–35

    Health care costs, 8

    Health care spending, 8

    • projections, 212

    • public expenditure, 186–193

    • rationalization measures, 162t

    Health care systems, 210

    Health indicators, 48–50, 49–50t, 187, 188t

    Heavily Indebted Poor Countries (HIPC) initiative, 243n11

    Hedge funds, 13

    High blood pressure, prevalence of, 49t

    High Court, 298

    High-end tourism, 430

    High-frequency indicators, 16

    High volatility, flexible exchange rate and, 14

    Hiring freeze, 168

    HIV-AIDS, 35, 37t, 39t

    • prevalence of, 50, 50t

    Holdout creditors, 10, 259, 276

    Home Mortgage Bank, 397

    Hong Kong Special Administrative Region, 352, 407, 408

    Hospitals, occupancy rates, 190

    Hotel rates, daily, 100f

    Hotels, VAT and, 139f, 140

    Household surveys, 25, 44–50

    HSBC London, 350n1

    Human capital, 441, 441f

    • competitiveness and, 427

    • investment in, 198

    • social assistance programs and, 197

    Human Development Index rank, 19t

    Human Development Indices, 27

    Hurricane Georges, 266f

    Hurricane Ivan, 261, 265, 274, 441

    Hurricane Lenny, 266f

    Hurricane Luis, 266f

    Hurricane Omar, 441

    Hurricanes, 30, 54

    • accounting for economic growth and, 84

    • debt and, 261, 265, 266f

    • event risk and, 441

    Hurricane Tomas, 441

    I

    Illiquidity, causes of, 344

    Illiteracy, 4, 19t

    Impact evaluations, of cash transfer programs, 198

    Impact multiplier (IM), 221, 230

    Implicit deposit insurance, 301

    Import, costs to, 451f

    Imports-to-GDP ratio, 65

    Import substitution industrialization, 29

    Import tariffs, exemptions from, 145

    Impulse response functions, 220

    Income. See also Per capita income, tax revenue and national, 20t

    • from offshore financial centers, 354

    Income tax

    • corporate, 140–141, 141t, 142f, 144, 148

    • personal, 132n2, 133, 140–144, 141t, 142f, 143f, 148

    Independence, of OECS/ECCU countries, 28

    Indexation of pensions, 178

    Indigenous banks, 10, 54, 67, 285–287, 288–289

    • exposure to public debt, 118t

    • liquidity ratio, 292–293

    Indirect taxes, 133–140, 133f

    Industrialization by invitation, 4, 28–29

    Infant mortality, 188t

    Infectious diseases, 34

    Inflation, 15, 95, 103t, 104t

    • capital markets and, 342

    • exchange rate regimes and, 411–412, 412t

    Inflation expectations, 386

    Inflation rate, 17f

    • Eastern Caribbean Central Bank and, 386–387

    Inflation targeting, free float and, 408

    Informal labor movement, 69

    Information exchange

    • banking supervision and, 304–305

    • offshore financial centers and, 356

    Information management systems, social assistance programs and, 197

    Information technology, 452

    Infrastructure

    • building financial, 452–453

    • competitiveness and, 425, 427, 442–444, 442f, 443f, 443t, 444t, 445f

    • as obstacle to doing business, 474, 475–477, 476f

    Injuries, mortality rate, 188t

    Inland Revenue Departments (IRDs), 149

    Insolvency, resolving, 15, 99f, 471–472, 471f, 473f

    Institutional strength and stability, political risk and, 440

    Institutions

    • competitiveness and, 426

    • economic growth and, 90–91

    • growth and, 79

    Insurable earnings, 455

    • ceiling on, 177

    Insurance, offshore financial centers and, 353

    Insurance Act of 1966, 326

    Insurance companies, 73, 290

    Insurance law, 331

    Insurance regulatory framework, 323–326

    Insurance sector, 11–12, 54, 321–334, 322t

    • CL Financial, 323–328

    • policy recommendations, 329–331

    • spillover effects of CL Financial failure, 329

    Insurance sector crises, 333–334. See also CL Financial Limited (CLF)

    • Canada, 334

    • Jamaica, 333

    • Republic of Korea, 333–334

    Insurance supervision, 323, 326

    Inter-American Development Bank (IDB), 236, 238, 249

    Interbank market (IBM), 67–68, 289, 345, 392–393

    • informal, 393

    Interbank market rates, 290

    Intercountry demand, for securities, 344

    Interest rates, 15, 398t

    • Dominica debt restructuring and, 260

    • Eastern Caribbean Central Bank and, 389, 389t, 390–391t, 392

    • exchange rate regimes and, 411, 412t

    • key, 291f

    • offshore financial services and, 352

    • step-up, 237

    Interest rate shock, 126–127f

    Interest rate spreads, 465–466

    Intermediate inputs, 425, 451, 451f

    Internal rates of return, 174, 174f

    • pension system, 178, 178f

    International airports, 444

    International Association of Insurance Providers’ Insurance Core Principles, 331

    International Association of Insurance Supervisors, core principles, 330

    International banking, 13, 353

    International Conference on Statistics, 495

    International Cooperation Review Group (ICRG), 361

    International experiences, exchange rate regimes and, 406

    International financial institutions (IFIs), involvement in debt restructuring, 276

    International investment position (IIP), 491

    International Monetary Fund (IMF)

    • debt restructuring and, 10

    • Enterprise Surveys (See Enterprise Surveys)

    • Financial Access Survey (see Financial Access Survey [FAS])

    • letter of intent on fiscal reserves and, 386

    • macroeconomic statistical assistance, 493, 494, 495

    • offshore financial center assessment program, 359–360

    • role in debt restructuring, 234, 235, 276–277

      • in Antigua and Barbuda, 278

      • in Belize, 238

      • in Dominica, 255, 260

      • in Dominican Republic, 242

      • in Grenada, 261, 263, 265

      • in Jamaica, 252–253

      • in Seychelles, 244, 248

      • in St. Kitts and Nevis, 271

    International Monetary Fund (IMF)-supported programs, 74

    International reserves, pooling, 69

    International Standard Industrial Classification 3.1, 389

    International standards

    • for capitalization, 68

    • for offshore financial centers, 350, 367–369

    International tax standard, 356, 357t

    International tax treaties, 351

    International trade, taxation of, 133–134, 135f, 136t

    Internet penetration, 436f

    Internet use rates, 443t

    Interpolation method, 226

    Intraregional trade, 65

    Investment, competitiveness and, 427

    Investment allowances, 145

    Investment portfolios, pension, 179–180

    Investor protection, 99f

    Investors, 338–340, 344

    IT systems

    • customs administration reform and, 7

    • for tax administration, 152, 153

    J

    Jamaica

    • conditional cash transfer program in, 198

    • currency board, 382n2

    • deposit insurance and, 300

    • insurance crisis in, 333

    • real estate costs in, 447

    • sovereign debt restructuring in, 9, 234, 248–253, 250f, 251f, 272

    Jamaica debt exchange (JDX), 249, 250, 252

    Judicial manager, for CLICO Barbados, 329

    Jump-sum policies, 333

    K

    Korea, Republic of, insurance crisis in, 333–334

    Korea Deposit Insurance Corporation (KDIC), 333–334

    L

    Labor

    • competitiveness and, 446–447, 446f, 447f, 448f

    • cost of, 425, 446

    • output per worker, 85–86, 86f

    • shortage of skilled, 441

    Labor accumulation, 79

    Labor force participation rates, 44–45, 45t

    Labor income, tax wedge on, 143t

    Labor market

    • integration of, 68–69

    • overview, 44–46

    Labor market statistics, 491

    Labor mobility, 5, 68

    Labor productivity growth, 446, 448f

    Land, competitiveness and, 447, 449f, 449t

    Land swap, 265, 271

    Large-value funds transfer system, 394

    Leading creditor groups, 276

    Leeward Islands, 382n2

    Legislative framework, for oversight of parastatals, 214

    Lender of last resort

    • dollarization and, 407

    • Eastern Caribbean Central Bank as, 14, 382, 384, 386

    Lending and deposit rates, 447

    Lending-deposit spreads, 466f

    Lending to government, by banking sector, 289f, 297, 297f

    Level accounting, 79, 85–86

    Licensing, 394–395, 474, 477

    Life expectancy, 4, 19t, 32, 33, 33t, 95, 103t, 104t, 188t, 441

    • retirement age and, 177

    Lifestyle-related illnesses, 34–35

    Liquidity, 290–293, 291f, 292f, 292t, 293f, 294f

    Liquidity management, 14

    • Eastern Caribbean Central Bank and, 381, 392–393

    Liquidity ratio, 292, 293f, 294f

    Liquidity risk, 285

    Liquidity risk supervision, 302

    Loan classification, 302–303

    Loans

    • bank, 286

    • collateral for, 448

    • credit union, 313, 313t

    • foreign currency, 297–298, 298t

    Loans-to-deposit ratio, 298

    Local incorporation, of foreign banks, 285

    Lombard facility, 393

    Lomé agreement, 59

    London Club, 10, 240–241, 276

    Long-run multiplier, 230

    Low-growth equilibrium, 27

    Low-income countries, 482–483

    Luxembourg Stock Exchange, 242

    M

    Macro balance approach, 387

    Macroeconomic risk, 451–452

    Macroeconomic statistics, 16, 487–502

    • current state of, 488–493

    • data dissemination practices, 493

    • Eastern Caribbean Central Bank and, 397–398

    • external sector statistics, 491–492, 496–502

    • financial sector, 496–502

    • fiscal sector, 496–502

    • General Data Dissemination System, 496–502

    • government finance statistics, 492

    • harmonization of, 16, 74–75, 487, 488

    • monetary and financial statistics, 493

    • progress in addressing issues in OECS/ECCU, 496–502

    • real sector statistics, 488–491, 496–502

    • small states and production of, 494–495

    • technical assistance to Caribbean region, 493–494

    Mandatory debt-management, 254, 259

    Manufacturing, 28

    Market-based monetary policy instruments, 70

    Market baskets, 490

    Market maker, 340

    Market risk framework, 302

    Market shares, 100f, 427, 428–430, 428f, 429f

    Market value of properties, 144

    Maternal health, 36t, 38t

    Maturity, of debt, 335

    Maturity profiles, 337

    Maximum tariffs, 65

    Medium-term expenditure frameworks, 160

    Medium-term rolling frameworks, 201

    Methanol Holdings, 326, 327f, 328

    Mexico, conditional cash transfer program in, 198

    Microcredit institutions, 11

    Microstates, 3

    • economic diversification of, 452

    • exchange rates and, 15

    • flexible exchange rate regimes and, 405

    • tax administration reform in, 152–153

    Migration, 31–32, 32t

    Millennium Development Goals (MDGs), 4, 25

    • progress toward, 35, 36–39t

    • universal primary education, 182

    Minimum wage, 446

    Ministries of Finance (MOFs)

    • oversight of parastatals and, 208, 209, 214

    • role in public investment, 204

    Mobility of factors of production, 68

    Monetary and economic union, 58

    Monetary and Financial Statistics (MFS), 493

    Monetary authority, currency board and, 407

    Monetary base, 411t

    • endogenous nature of, 388

    Monetary integration, 69–70

    Monetary issues, 14–15

    Monetary policy, 14, 60

    • currency board and, 407

    • Eastern Caribbean Central Bank and, 381, 382, 387–392

    • links to U.S. monetary policy, 223

    • stability of, 439

    Monetary policy instruments, 69

    Monetary sector, 20t, 54

    Monetary stability, Eastern Caribbean Central Bank and, 386

    Monetary union, 58

    Monetized economies, 285

    Money laundering, 351, 352, 360–361

    Money market rates, 412t

    Money transfer services, 73

    Monitoring framework, for parastatals, 209

    Monopoly rents, 68

    Montego Bay Conference, 54

    Montserrat, 53

    • credit unions and, 11

    • macroeconomic statistical issues, 500

    • offshore financial centers in, 13

    • regional integration agreements, 61t

    Moody’s, 237, 249, 437, 439, 440, 441

    Moral hazard, 301

    Mortality rate, 19t, 188t

    Mortgage and finance companies, 395

    Mortgages, securitizing, 13

    Most Favored Nation (MFN) tariffs, 428, 429, 430

    Multilateral Investment Guarantee Agency, 447

    Multilateral Memoranda of Understanding, 360

    Multilateral trade liberalization, 5, 29, 58–59

    Multistate central banks, 382

    Multivariate panel-VAR models, 221, 223, 228–230

    Murders, 34t

    Mutual assessment, complying with international financial standards, 13

    N

    Naming and shaming exercises, 13, 351, 356, 360

    • impact on capital flows, 368t

    National accounts, rebased, 489

    National Commercial Bank, 67, 289

    National Commercial Bank of St. Vincent and the Grenadines (NCB), 300

    National Cooperative Credit Union (NCCU), 310n3

    National income and prices, 20t

    National insurance schemes, public debt and, 116, 118t

    National Insurance Services (NIS), 46

    National pension schemes, 162t, 171–175

    • policy reforms for, 176–180

    National regulatory organizations, 395

    National sovereignty in budgets, 72

    National statistical bureaus (NSBs), 494

    National supervisory authority, for insurance sector, 12

    Natural disasters, 54

    • accounting for economic growth and, 83–84

    • development financing and, 30

    • event risk and, 441

    • public spending on, 161n5

    Natural resource endowments, 54

    • comparative advantage and, 432

    Net current account deficit, 454f

    Nevis. See St. Kitts and Nevis

    Nevis Offshore Banking Act, 74, 395

    Nominal GDP, 17f, 19t

    Nominal interest rate, 15

    Nonbank financial sector, 290

    • assets, 318t

    • harmonized legislation on, 73, 73t

    • regulation and supervision of, 54

    • supervision of, 329–330

    Noncommunicable diseases, 190

    • mortality rate, 188t

    Noncompetitive subscription process, 12

    Nondiscrimination, offshore financial centers and, 356

    Nonestablished workers, 166n12, 167, 167n17, 189n53

    Non-Paris Club creditors, in Seychelles, 246

    Nonparticipating creditors, Grenada debt restructuring and, 263

    Nonperforming loan (NPL) ratio, 294, 295f

    Nonperforming loans (NPLs), 10, 18f, 285, 288

    • credit unions and, 309, 314

    • economic risk and, 437

    • loan classification and, 303

    Nonresidents, banking licenses and, 67

    Nontariff barriers, 65

    Nontax revenue, 130t, 132

    Nontradable sector, 69

    Nonwage benefits, 69

    O

    Occupancy rates, hospital, 190

    OECS treaty. See Treaty of Basseterre

    Off-balance-sheet activities, 353

    Off-budget operations, 6

    Offshore Banking Acts, 74

    Offshore banks and trusts, 290

    Offshore financial centers (OFCs), 10, 13–14, 349–376

    • background, 350–351

    • demand for, 351–353

    • econometric analysis, 365–369, 372–373

    • economic growth and, 354–355, 366–367, 367t

    • financial regulatory havens, 359–360

    • international initiatives for scrutiny of, 355–361, 362t

    • list of, 372t

    • money laundering and, 360–361

    • in OECS/ECCU, 362–365

    • overview, 351–355

    • portfolios, 375–376f

    • rationale for, 351–355

    • regulation and supervision of, 369–370

    • small international financial centers, 374t

    • tax evasion and, 355–358

    • tax minimization and, 359

    • terrorism financing and, 360–361

    Off-site supervision, of banks, 302

    On-site examinations, of banks, 395

    On-site supervision, of banks, 302

    Open capital accounts, 67

    Open market operations, 387

    Openness, 95, 103t, 104t

    Operational reviews, of parastatals, 215

    Optimal currency area, 14–15, 68, 388, 409

    • country rankings, 421t

    • index, 414–418, 416t, 417f, 418t, 419f, 420t

    Optimal exchange rate regime, 409–421, 409t

    • bank balance sheets, 409

    • bilateral trade, 413–414, 414t

    • comovements in output, 412–413, 413t

    • empirical indicators of suitability of various regimes, 409–414

    • foreign exchange reserves, 410, 410t, 411t

    • inflation, 411–412, 412t

    • interest rates, 411, 412t

    • seigniorage gains and losses, 410–411

    • terms of trade variation, 413, 414t

    • testing for optimal currency area index, 414–418, 416t, 417f, 418t, 419f, 420t

    Organization for Economic Cooperation and Development (OECD), 349

    • efforts against tax minimization practices, 359

    • international standards for offshore financial centers and, 367–369

    • limiting tax evasion and, 355–356

    Organization of Eastern Caribbean States (OECS), 14, 53, 56, 381–382, 487. See also Eastern Caribbean Economic and Currency Union (OECS/ECCU)

    Organization of Eastern Caribbean States (OECS) Assembly, 60, 60f

    Organization of Eastern Caribbean States (OECS) Authority, 5, 53, 60, 60f

    Organization of Eastern Caribbean States (OECS) Commission, 60, 60f

    Organization of Eastern Caribbean States (OECS) Distribution and Transportation Company, 399

    Organization of Eastern Caribbean States (OECS) Economic Union Task Force, 56

    Organization of Eastern Caribbean States (OECS) Secretariat, 398, 494

    Output growth, 102t

    Output per worker, 85–86, 86f

    Overall balance, 21t, 22t

    Overbanked region, 286

    Overvaluation, of real exchange rate, 387

    P

    Pan-OECS/ECCU regulator and supervisor, 70, 73

    Parastatal entities (PEs), 211

    • bank ownership and, 289

    • creation of, 167

    • expenditure rationalization and, 8

    • oversight system for, 214–215

    • public expenditure on, 205–210, 207t

    • public investment and, 201

    • rationalization measures, 163t

    Par bonds, debt restructuring and, 268

    Paris Club, 10, 233, 234, 236, 238, 239

    • comparability of treatment and, 241–242

    • debt restructuring and, 276

    • debt restructuring in Antigua and Barbuda and, 279

    • debt restructuring in Dominica and, 257, 259

    • debt restructuring in Grenada and, 261

    • debt restructuring in St. Kitts and Nevis and, 268, 269

    • Evian approach and, 243, 245

    Partial guarantees, 10, 265

    Partnership agreement, with European Union, 56

    PATH (Programme of Advancement through Health and Education), 198, 272

    Pay-as-you-go (PAYGO) pension schemes, 170

    • contribution rates, 171, 173f

    Payments system, 14, 394

    • Eastern Caribbean Central Bank and, 381

    PEARLS indicators, 316, 317

    PEARLS system, 11, 309, 317

    Peer review process, 70

    • limiting tax evasion and, 356–357

    Penetration rate, of banks, 286

    Pensionable earnings, calculations for, 177–178

    Pension benefits, 8

    Pension commission, 8

    Pension databases, 455

    Pension parameters, 171–172, 173f

    Pensions

    • automatic indexation of, 178

    • internal rates of return on, 174f

    • net cash flow and reserves of, 172f

    • pay-as-you-go, 170, 171, 173f

    • private occupational, 170

    • social security, 170–181

    Per capita income, tax revenue and, 131f

    Performance, rewarding, 166–167

    Performance reports, parastatal, 215

    Perimeter of regulation, 14

    Permits, 477

    Personal income tax (PIT), 132n2, 133, 140–144, 141t, 142f, 143f, 148

    Plantation economy model, 4, 28

    Policy, competitiveness and, 426

    Policy-Based Guarantee Operation, 245, 246, 247

    Policy coordination, 70–75, 70f

    • financial sector coordination, 72–74

    • fiscal policy coordination, 71–72

    • harmonization of macroeconomic statistics, 74–75

    Policy reform

    • for civil service pension schemes, 180–181

    • for national pension schemes, 176–180

    Policy-related lending, 286

    Political business cycles, 4, 40

    Political calendar, 25, 42–43

    Political instability, 474

    Political risk, 440, 440f

    Political setting, 4–5, 40

    Political systems, Westminster-based, 4–5, 25

    Political union, 54

    Political violence, 440

    Ponzi schemes, 369, 370

    Portability, of pensions, 175, 180

    Port capacity, 443, 444t

    Portfolio investment liability (PIL), 366, 367t, 376f

    Portfolios, OECS/ECCU offshore financial centers, 364f, 365f, 365t

    Poverty, 19t, 25, 33–34, 33t, 47t

    Poverty assessments, 4, 194, 195

    Poverty Reduction and Growth Facility (PRGF), 30n6, 254, 263, 265

    Preferences, trade, 425

    Preferential access, to UK banana market, 428–430

    Preferential trading arrangements, 27, 56

    Present value of pension contributions and benefits, 174n31

    Price and exchange stability, Eastern Caribbean Central Bank and, 386

    Price discovery, 336

    Price expectations, 381

    Prices, 20t

    • property, 447, 449f, 449t

    Primary balance, 6, 22t

    • public debt and, 114f, 115t

    Primary balance shock, 126–127f

    Primary education, 35, 36t, 38t, 95, 103t, 104t, 182

    • completion rate, 4, 33, 33t

    Primary issuance, 335, 337–338, 337f

    Primary market, 341–344

    Principal reinstatement clauses, 10, 246

    Private depositors, 289

    Private investment, risk and uncertainty and, 435

    Private occupational pension schemes, 170

    Private sector, credit to, 447, 462

    Private sector development, impediments to, 15, 461–483

    • contract enforcement, 470–471, 471f, 472f

    • crime, 478

    • Doing Business Indicators, 470–474, 471f

    • Enterprise Surveys, 474–478, 474f, 475t, 476f, 477f

    • financial access, 467–470

    • financial deepening, 462–467

    • infrastructure, 475–477, 476f

    • nonfinancial, 470–478

    • obtaining credit, 472–473

    • paying taxes, 473–474, 473f

    • registering property, 470, 471f, 472f

    • regulations and taxes, 477, 477f

    • resolving insolvency, 471–472, 471f, 473f

    • workforce, 478, 478f

    Proactive restructuring loans, 295

    Procurement rules, for public investment, 202, 204

    Procurement test, 206

    Production, factors of, 426

    Productivity

    • competitiveness and, 426

    • constructing, 455–456

    • of public investment, 200

    • real wages and, 456f

    • total factor, 436f

    Profitability, of banks, 296–297, 296f

    Program of Advancement through Health and Education (PATH), 198

    Property prices, 447, 449f, 449t

    Property registration, 15, 98f, 470, 471f, 472f

    Property taxes, 144–145, 145t, 148

    Public debt, 6–7, 111–127, 160t. See also Sovereign debt

    • composition of, 112f, 113t

    • contributors to, 115f

    • debt sustainability in OECS/ECCU, 116–118, 117–118t, 122–125t, 126–127f

    • decomposition of, 119

    • economic growth and, 79, 89–90, 89f, 104t

    • levels of, 18f, 437, 438f

    • maturity and structural composition of, 335

    • overview, 111–113

    • parastatals and, 206–207, 208t

    • reasons for accumulation of, 113–116, 115f, 120–121t

    • St. Kitts and Nevis, 266–267, 267f

    • total, 22t

    Public debt sustainability, expenditure rationalization and, 8

    Public debt target, 159

    Public-debt-to-GDP ratios, 111, 113, 115–116, 119, 234f

    Public-debt-to-GDP target, 72

    Public Expenditure and Financial Accountability assessments, 202

    Public Expenditure Commission, 72

    Public expenditure rationalization, 8, 159–215, 162–163t

    • capital spending, 197–205

    • civil service employment and wages, 163–170

    • education, 181–186

    • health care, 186–193, 212

    • parastatal entities, 205–210, 214–215

    • social assistance, 193–197

    • social security, 170–181

    • targeting, 213

    Public financial management, 168

    Public health programs, 190, 192

    Public investment, prioritization of projects, 201–202

    Public investment expenditure multiplier, 220, 221, 222f, 223, 224f

    Public investment planning, 201

    Public investment spending, 197–205, 199f

    productivity and, 200

    Public-private partnerships (PPPs), 202–203, 205, 211

    Public sector deficits, 114

    Public sector finance, 20t

    Public sector investment programs (PSIPs), 54, 200–201, 203–204, 211

    Public services, rationalizing provision of, 57

    Q

    Quality of health care, 187

    Quasi-currency board, 14, 405, 407n7

    • Eastern Caribbean Central Bank as, 381

    R

    Rate of return on capital, 426

    Rationalizing public services, 57

    Real estate costs, 447

    Real exchange rate, 425n1, 427

    • overvaluation of, 387

    Real GDP, 21t

    • interpolation of, to obtain quarterly series, 226–228

    • sectoral, 81f

    Real GDP growth, 17f, 80f, 160t

    • of offshore financial centers, 366, 367t

    Real lending rate, 447–448

    Real per capita GDP, 95

    Real sector linkages, 10

    Real sector statistics, 488–491, 496–502

    Real-time gross settlement system (RTGS), 394

    Real wages, 456f

    • constructing, 455

    • growth in, 446–447, 448f

    Rebased national accounts series, 489

    Recapitalization Committee (RECAP), 74

    Receipts per tourist, 95, 103t

    Regional agreements, on business taxation, 146–148

    Regional assembly, 53

    Regional capital market, 10

    Regional code of conduct, 72

    Regional cooperation

    • on health care, 193

    • on public expenditures, 8

    Regional Debt Coordinating Committee (RDCC), 336

    Regional development banks, debt restructuring and, 10

    Regional financial market, 335

    Regional financial space, 335

    Regional Government Securities Market (RGSM), 12–13, 68, 290, 335, 393

    • government access to, 342–343

    • investors, 338–340

    • primary issuance and auctions, 337–338, 337f

    • public debt and, 116

    • recommendations for, 340–345

    • secondary market activity, 340

    Regional integration, 53–54. See also Economic integration; Policy coordination

    • of financial sector, 397

    • history of, 54–56

    Regional markets, capital markets, 12–13

    Regional money market institutions, 68

    Regional Oversight Committee, 303

    Regional revenue authority, 154

    Regional sovereign debt securities, 345

    Regional Technical Operating Committee, 394

    Regulation and supervision

    • Eastern Caribbean Central Bank and financial sector, 394–397

    • of banking sector, 301–303, 381

    • of credit unions, 307, 314–316

    • of nonbanks, 329–330

    • of offshore financial centers in OECS/ECCU, 369–370

    Regulations, as obstacles to doing business, 474, 476f

    Regulatory Oversight Committee, 73, 316, 395, 397

    Regulatory perimeter, bank, 302, 303

    Remittances, 31–32, 82, 492

    Repatriation of profits, 440

    Repo market, 340, 345, 393

    Reports on Observance of Standards and Codes, 360

    Republic Bank Ltd., 324f, 328

    Reserve cover, 14, 384, 384f

    Reserve requirements, 387, 388

    Reserves, pension, 171, 172f, 175

    Resolution Trust Corporation (RTC), 11, 74, 300

    Retirement age, 171–172, 177

    Revealed comparative advantage (RCA), 428, 430–433, 434–435t

    Revenue administration, 7

    Revenue administration capacity, 132

    Revenue and expenditure, 161f

    Revenue and grants, 18f, 129, 130t, 133f

    Revenue authorities, 151n18

    Revenue effort, 129

    Revenue mobilization, 6, 129

    Revised Kyoto Convention, 149

    Revised Treaty of Basseterre, 55t, 57–70, 399, 487n2

    Revised Treaty of Chaguaramas, 55t, 432

    Ring-fencing, 356

    Risk, private investment and, 435

    Risk-based supervision, 302

    Risk concentrations, managing, 302

    Risk diversification, capital markets and, 335

    Risk management, international standards for, 68

    Risk sharing, 5, 57

    Risk taking, credit unions and, 307

    Risk weighting procedures, 302

    Rollover risks, 337

    Room supply, shares in, 100f

    Roseau Cooperative Credit Union, 309, 310, 312t

    Royal Bank of Scotland (RBS) Bahamas, 350n1

    S

    Saint Lucia, 12, 53, 129n1

    • banana production and, 428

    • banking sector development over time, 464, 465f

    • macroeconomic statistical issues, 500–501

    • political calendar and leadership, 43

    • regional integration agreements, 61t

    • revealed comparative advantage in, 435t

    SDRs (special drawing rights), 248

    Sea access, improving, 453

    Sea freight rates, 443, 444t

    Sea levels, rise in, 30–31

    Sea transportation, access to, 443, 443f, 444f, 453

    Secondary markets, 12, 335, 337, 340, 341f, 344–345

    Second-round effects, of offshore financial centers, 354

    Security, political risk and, 440

    Seigniorage, 15, 386

    • dollarization and, 407

    Seigniorage gains and losses, 410–411

    Selective default, in Jamaica, 252

    Self-selection targeting, 213

    Seychelles

    • debt restructuring in, 9, 243–248

    • exchange rate regime, 14

    • floating exchange rate and, 406

    • sovereign debt restructuring in, 234, 243–248, 244f, 245f, 272

    Shipping connectivity index, 443, 443f

    Shocks, 26

    • asymmetric and idiosyncratic, 70

    • exogenous, 54

    • fixed exchange rate and, 387

    • public debt sustainability and, 126–127f

    • social assistance programs and, 193–194

    Short-term capital flows, 387

    Short-term securities, 337–338, 338f

    Single financial space, 68, 381

    • Eastern Caribbean Central Bank and, 398

    Single regulatory units (SRUs), 73, 315–316, 370, 395, 397, 493

    Single trading platform, 346

    Sinking funds, 259

    Size (land area), 95, 103t, 104t

    Slavery, 4

    • legacy of, 25, 32

    Small enterprises, banks and, 286

    Small firms, access to finance and, 448–449

    Small international financial centers (SIFCs), 363, 374t

    Small island developing states, 29n5

    Small island economics, 16

    Small island (SI) states, 95, 103t, 104t

    • growth performance and, 80

    • production of statistics in, 494–495

    Small open economy models, 4, 29

    Small savers, banks and, 286

    Small states, 483

    Social assistance programs, 8, 160, 211

    • public expenditure on, 193–197, 194f

    • rationalization measures, 8, 162t

    Social indicators, 4, 19t, 32–35, 33t, 34t

    Social investments, 175

    Social safety nets, 54

    Social security, 8, 170–181, 210, 392

    • civil service pension schemes, 176, 180–181

    • national pension schemes, 171–175, 176–180

    • policy reforms for, 176–181

    • public debt and, 116, 118t

    • rationalization measures, 162t

    Social security administrations, 344

    Social security databases, 455

    Social setting, 4–5, 19t, 32–39

    • legacy of slavery, 25, 32

    • progress toward Millennium Development Goals, 35, 36–39t

    • social indicators, 32–35, 33t, 34t, 46–48

    Social vulnerability indicators, 46–48

    Source-country business cycles, impact on tourism, 88

    Sovereign debt, 437. See also Public debt

    • cycle of, 74

    • default on, 74, 111

    • joint sovereign borrowing and crises of, 345

    Sovereign debt restructuring, 233–279

    • Antigua and Barbuda, 278–279, 278f

    • Belize, 235–238, 236f, 238f, 272

    • Dominica, 254–260, 255f, 256f, 257t, 258t, 272–274

    • Dominican Republic, 238–242, 240f, 272

    • Grenada, 261–265, 262f, 263t, 264f, 274

    • Jamaica, 248–253, 250f, 251f, 272

    • lessons learned, 275–277

    • public-debt-to-GDP ratios of, 234f

    • Seychelles, 243–248, 244f, 245f, 272

    • St. Kitts and Nevis, 265–271, 266f, 267f, 268t, 269f, 274

    • summary, 272–275

    Sovereign risk, 435n10

    Special purpose vehicles (SPVs), 13, 236, 276, 349, 369

    • debt restructuring in St. Kitts and Nevis and, 269, 271

    Spillovers, 115n5, 314, 354

    St. Kitts and Nevis, 53, 129n1

    • debt restructuring in, 9, 265-272

    • macroeconomic statistical issues, 501

    • offshore financial centers in, 13

    • political calendar and leadership, 43

    • regional integration agreements, 61t

    • revealed comparative advantage in, 434t

    • sovereign debt restructuring in, 233, 265–271, 266f, 267f, 268t, 269f, 274

    St. Kitts-Nevis-Anguilla National Bank, 286, 296–297

    St. Kitts Sugar Manufacturing Company, 267

    St. Vincent and the Grenadines, 53, 129n1

    • banana production and, 428

    • banking sector development over time, 464, 465f

    • macroeconomic statistical issues, 502

    • parastatal entities in, 205, 206, 207t

    • political calendar and leadership, 43

    • public investment execution rate, 203f

    • regional integration agreements, 61t

    • revealed comparative advantage in, 435t

    Stabilization funds, 10, 265, 276

    Stabilization policies, debt restructuring and, 272

    Standard and Poor’s ratings, 237, 244, 249, 252, 261, 439, 439t, 440

    Standard Integrated Government Tax Administration System (SIGTAS), 152, 153, 156

    Standard International Trade Classification (SITC), 432n5

    Standardized procedures, for debt issuance, 335–336

    Stand-by arrangement, International Monetary Fund, 30

    • Dominica and, 255

    • Dominican Republic and, 242

    • Jamaica and, 253

    • Seychelles and, 248

    Stanford Financial Group, 10, 271n33, 299

    Stanford International Bank, 369

    Statistics. See Macroeconomic statistics

    Statutory bodies, 8

    • harmonization of macroeconomic statistics and, 74

    Statutory reserve requirements, 300

    Stay-over arrivals, 491

    Step-up interest rate, 237

    Sticky wages, 387

    Stock of reserves, 407

    Stress testing practices, 302

    Strip bonds, 259

    Structural composition of debt, 335

    Structural constraints, 452

    Structural impediments, to private development, 15

    Structural issues

    • civil service pensions and, 176

    • national pension schemes and, 174–175

    Structural reform, 452

    Structural transformation, 425

    • into tourism, 430

    Structural vector autoregression (SVAR) models, 9, 220, 228–230

    Structural weaknesses, 27

    Structured finance, 353

    Student-teacher ratios, 166, 182–183, 185

    Study-leave program, 184, 186

    Sugar industry, closure of, 265, 266f

    Supervision. See Regulation and supervision

    Supervisory powers, for banks, 304

    Supporting Economic Management in the Caribbean (SEMCAR), 156

    Supranationality, 56–57

    Surveillance

    • of banks, 395

    • macroeconomic statistics and, 16

    Sustainability issues

    • civil service pensions and, 176

    • national pension schemes and, 171–172

    Systemic risk, 335

    Systemic risk and interconnectedness, 302

    T

    Tariff dispersion, 65

    Tariff rates, 136t

    Tariffs, 63–67, 64t, 129

    • common external, 63, 64t, 65

    • external, 133–134

    Tax administration, 474, 477

    • organizational structure, 150–151, 150f

    • reform of, 129, 149–153

    Tax amnesty programs, 358

    Tax arbitrage, 144, 351, 352, 353

    Tax audits, 150

    • of larger taxpayers, 150

    Tax avoidance, 150

    Tax base, 7, 129

    • widening, 148

    Tax burden, 7

    • competitiveness and, 445, 445f

    Tax Commission, 72

    Tax competition, 146

    Tax effort, 156–157

    Taxes

    • competitiveness and, 426, 445, 445f

    • direct, 140–145, 141t, 142f, 143f, 143t, 145t

    • excise, 132, 140, 140t, 148

    • on goods and services, 134–139, 137t

    • income (see Income tax)

    • indirect, 133–140, 135f, 136t, 137f, 137t, 138t, 139f, 139t, 140t

    • as obstacle to doing business, 474, 476f, 477, 477f

    • offshore financial centers and, 355

    • paying, 99f, 473–474, 473f

    • policy incentives, 148

    • property, 144–145, 145t, 148

    • revenues and policies, 131f, 132–133, 133f, 134f

    • structure of, 134f

    Tax evasion, 7, 150, 353

    • offshore financial centers and, 351, 355–358

    Tax harmonization, 72, 148

    Tax havens, 350, 351, 352, 358, 359, 367, 368t

    • defined, 372

    • list of, 373t

    Tax holidays, 29, 145

    Tax incentives, 7, 29, 145–148, 146f

    • coordinating, 147

    Tax Information Exchange Agreements (TIEAs), 13, 356–358, 369, 369t, 373

    Tax liabilities, offshore financial centers and, 351

    Tax minimization, 353, 359, 369

    • offshore financial centers and, 351, 352

    Taxpayer audit, 7

    Taxpayer identification numbers, 152

    Taxpayer population, segmenting, 151, 153

    Taxpayer services, 7, 156

    Tax policy, harmonization of, 7, 148, 154–156

    Tax rates, on international trade and transactions, 65t

    Tax rebates, 145

    Tax reductions, 9

    Tax reform, 132, 159

    Tax Reform and Administration Commission, 154

    Tax revenue, 7, 130t, 132, 133f

    • per capita income and, 131f

    • trends in, 131f

    Tax revenue multiplier, 220, 221, 222f, 223, 224f

    Tax standard, international, 356, 357t

    Tax standard progress report, 368

    Tax structure, 129

    • competitiveness and, 426

    Tax treaties, 351, 355, 358

    Teachers

    • number of trained, 184, 184f, 186

    • pensions, 170n23

    • student-teacher ratios, 182–183, 185

    Technical assistance, on macroeconomic statistics, 493–494

    Technological change, contribution to economic growth, 83

    Telephone penetration, 436f

    Terms of trade, 18f, 54, 95, 103t, 104t

    • variation in, 413, 414t

    Terrorism, financing of, 360–361

    Total factor productivity (TFP), 6, 79, 82, 84–85, 436f

    • output per worker and, 85

    Total revenues and grants, 22t

    Total-trade-to-GDP ratio, 65

    Tourism

    • competitiveness of, 91–92, 100f, 430, 431f

    • diversification into, 4, 28, 29–30

    • economic growth and, 79, 80, 82, 97f, 103t

    • growth volatility and, 88–89

    • long-term growth and, 86, 87–88

    • as percent of GDP, 27

    • revealed comparative advantage and, 432, 433

    • shift from mass to upscale, 92

    • total tourist arrivals, 17f

    • tourist stayover arrivals, 18f

    Tourism market shares, competitiveness and, 430, 431f

    Tourism productivity, 430

    Tourism satellite accounts (TSAs), 491

    Tourism services, VAT rate for, 138–139, 139f

    Trade. See also

    Terms of trade

    • as obstacle to doing business, 474, 476f

    • optimal currency area index and, 415

    • schedule of commitments in, 62t

    Trade data, 492

    Trade integration, 58–67

    • bilateral agreements and the Economic Partnership Agreement, 59–63

    • in the Caribbean, 63–67

    • multilateral trade liberalization, 58–59

    Trade openness, 66t

    Trade preferences, 5, 80, 387, 425

    Transfer and convertibility rating, 439

    Transparency, 70

    • debt restructuring and, 237

    • offshore financial centers and, 356

    • Regional Government Securities Market and, 340

    • in social assistance programs, 196

    Transportation, as obstacle to doing business, 474, 477

    Treasury bills, 12, 336, 337–338

    Treaty of Basseterre, 5, 14, 53, 55t, 56, 381–382, 398

    Treaty of Chaguaramas (CARICOM), 55t, 56, 432n6

    Trinidad and Tobago

    • banking sector, 10, 286

    • BCCB and, 382n2

    • CL Financial Limited and, 11, 12

    • deposit insurance and, 300

    Trusteeship, control of assets under, 330–331

    Trust indenture, 242

    • 2008-09 global crisis

    • banking sector and, 10–11

    • fiscal multipliers and, 220

    • weaknesses of Eastern Caribbean Economic and Currency Union and, 54

    Two-way price quotations, 340

    U

    Uncertainty, private investment and, 435

    UN Committee of Experts on International Cooperation in Tax Matters, 356

    Unemployment, 4, 25, 33–34, 33t, 44, 45t

    Unemployment rates, 437, 438f

    Uniform Banking Act, 301, 395

    Uniform Securities Act, 301n12

    Uniform Settlement Systems Act, 394

    United Kingdom

    • banana imports, 428–430, 429f

    • banking and, 286

    United Nations Statistical Commission, 488

    Unit labor costs, 427

    Universities, 93

    Unremunerated reserves, 383

    U.S.-Caribbean Basin Trade Partnership Act, 62n8

    U.S. dollar, as anchor for OECS/ECCU, 416–418, 417f, 418t, 419f, 420t, 421t

    U.S. Federal Reserve System, 14

    U.S. Securities and Exchange Commission, 290, 353

    User fees, for health care, 187, 189–190, 191, 192

    • exemptions, 189

    V

    Value added tax (VAT), 7, 65, 132, 136, 138–140, 138t, 139t, 148, 151

    • exemptions from, 138, 145

    • reforms in, 72, 149

    Value for money (VfM), 202, 205, 206, 209, 211

    Vesting period, 175n35, 176

    Visitor arrivals, 430, 431f

    Visitor expenditures, 430, 431f

    Volatility

    • of GDP growth, 82, 82f

    • tourism and growth, 88–89

    Volcanic eruptions, 54

    W

    Wage bill, 8, 168

    Wage-bill rationalization strategy, 168

    Wage-bill-to-GDP ratio, 163, 163t

    Wage freezes, 166, 168

    Wage premium, 165

    Wage rates, 446, 447f

    Wages

    • average annual, 46t

    • civil service, 162t, 163–170, 163t, 164f

    • sticky, 387

    Watch-listed banks, 74

    Wellness revolution, 35n12

    West Indian Commission, 56

    West Indian Currency Conference, 55t

    West Indies, 3, 25

    West Indies Associated States (WISA), 56

    West Indies Associated States (WISA) Council, 55t

    West Indies Associated States (WISA) Supreme Court, 55t

    West Indies Conference of Credit Societies, 309

    West Indies Federation, 54, 55t

    Westminster-based electoral structure, 4–5, 25

    Windward Islands, 382n2, 428

    Workers, established and nonestablished, 166n12, 167, 167n17, 189n53

    Workforce

    • education and, 93

    • as obstacle to doing business, 474, 476f, 478, 478f

    World Bank, 15, 169, 360, 440, 464. See also Doing Business Indicators

    • beneficiary identification system, 196

    • Jamaica debt restructuring and, 249

    • recommended student-teacher ratios, 182

    World Competitiveness Yearbook, 427

    World Council of Credit Unions (WCCU), 309, 315, 316, 317

    World debt and growth, 89f

    World Governance Indicators, 367, 373

    World Trade Organization (WTO), 56

    • banana dispute, 428–430

    • valuation agreement and rules of origin, 149

    Y

    Youth Empowerment through Skills Program, 34

    Youth unemployment, 4, 34

    Z

    Zero-rating, VAT and, 138

      You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

      Other Resources Citing This Publication