Index
A
Acevedo, Sebastian, 4, 5, 47, 52n10, 55, 69
Air conditioning, electricity for, 301n19
Airlift, 50n9
to Cuba, 68f, 69n5
SVAR for, 50–52
for tourism, 41, 48, 49–50, 50n8, 51f, 52n10, 53f, 60t, 61t
from U.S., 50, 51f, 52n10
Aiyar, S., 245n11, 256
Alien Land Holding License, 255n14
Alleyne, Trevor, 13
AMCs. See Asset management companies
AML/CFT. See Anti-money laundering/combating the financing of terrorism
Anderson, J., 70n7
Anguilla, 55, 71
Antigua and Barbuda
airlift to, 50n9
Canada and, 138–39, 139n21
debt restructuring in, 149n2
ECPs in, 127, 128f, 136, 138–39, 139n21
energy efficiency in, 301–2
natural disasters in, 55, 84–85
NDFs in, 141
NPLs in, 236
sea-level rise in, 84–85
tax incentives in, 103t, 108
Anti-money laundering/combating the financing of terrorism (AML/CFT)
CBRs and, 13, 270, 272, 275–76, 281–82
ECPs and, 145
Arellano, M., 243n7
Arellano-Bond estimation, for tourism, 48n6
Asset management companies (AMCs), 258–59
Austrian Citizenship Act, 125n3
B
The Bahamas
airlift to, 50
AMCs of, 259
CBRs in, 274
central bank in, 226n40
crime in, 15, 25n6, 330, 336, 337, 338
deposit insurance in, 227, 227n43
financial development in, 176, 191
financial inclusion constraints in, 182
homicides in, 337
insurance companies in, 197
National Crisis Management Group in, 219n30
natural disasters in, 55
NPLs in, 245n10
offshore banking in, 197, 269
tourism in, 41, 48n5, 63, 63n2, 66, 73, 74
Balance of payments, 268f
Baldwin, R., 70n7
Bank for International Settlements (BIS), 269
ECPs and, 143, 144t
SWIFT and, 280n12
Bank profitability
CBRS and, 284–85
NPLs and, 234, 236, 239, 239f
Banks
in Barbados, 225n35, 226
from Canada, 197–98, 224, 270
claims on banks by, 203f
claims on sovereigns by, 202f, 203f
cross-border spillovers of, 211–12, 212f, 214, 218
defaults by, 209
direct exposures of, 200–204
of ECCU, 210n22
foreign-owned, 197–98, 199f
insurance companies and, 204, 212
in Jamaica, 226n39
liquidity of, 133–34, 134f, 175
mergers of, 13, 284
remittances and, 318, 322
sovereign haircuts to, 214, 216f
in Trinidad and Tobago, 197–98, 226
See also Correspondent banking relationships; Global banks; Nonperforming loans; Offshore banking
Barbados
airlift to, 50n9
banks in, 225n35, 226
Canadian banks in, 197
credit in, 178–79
deposit insurance in, 227, 227n43
ECCU and, 200
Export Rediscount Facility in, 179
financial development in, 176, 191
Financial Oversight Management Committee in, 219n29
financial sector of, 207
IBCs in, 274
insurance companies in, 197, 204, 212
natural disasters in, 57
natural gas in, 291
offshore banking in, 197, 269
renewable energy in, 103t
SMEs in, 179
tax incentives in, 103t, 108
tourism in, 48n5, 63n2
Barbuda. See Antigua and Barbuda
Basel II, 224n34, 259n17
Basel III, 225n38
Bauxite and Alumina Industries Act, in Jamaica, 118
Beaton, K., 12–13, 233n2, 315, 327
Belize
airlift to, 50n9
banks in, 212
bond market in, 155–60, 159f
CBRs in, 270, 271, 272, 274
climate change and, 84
Cuba and, 71
debt restructuring in, 155–60
debt-to-GDP ratio in, 158, 159f
ECPs in, 138
financial sector of, 207, 219n29
government debt in, 157–58, 157f
hydroelectric power in, 291, 307
IMF and, 158–60
inflation in, 158
natural disasters in, 82, 84
NPLs in, 236, 245n10
offshore banking in, 269
Permanent Court of Arbitration and, 156n5
tax incentives in, 103t
tourism in, 71
Big Mac Index, 44n2
BIS. See Bank for International Settlements
Blundell, R., 243n7
Bond, S., 243n7
Bond markets
in Belize, 155–60, 159f
catastrophe bonds, for natural disasters, 93, 94
in Grenada, 162, 163f
in Jamaica, 153, 154f, 155f
par bonds, 166
Superbond 3.0, in Belize, 155–60, 159f
Bover, O., 243n7
Brain drain. See Emigration
Branding, for tourism, 49
Budget deficits, 6
from natural disasters, 86n3
Business Environment and Enterprise Performance Survey, of World Bank, 334
C
CAB. See Caribbean Association of Banks
CACs. See Collective action clauses
Canada
Antigua and Barbuda and, 138–39, 139n21
banks from, 197–98, 224, 270
Cuba and, 64–73, 65f
immigrant investor programs in, 124, 124n2
tourism from, 43
Cancun, 41 n1
airlift to, 50
tourism in, 41
Canetti, Elie, 12
Capital adequacy ratio (CAR), 205t, 207n18
of ECCU, 214n26
external shocks and, 218f
sovereign haircuts and, 216f
of Suriname, 214
systemic spillovers for, 210
Capital allowances, in Jamaica, 116
Capital buffers, 209, 213, 214
Capital markets, 10
debt restructuring and, 160, 168
financial
interconnectedness and, 197, 200
natural disasters and, 91
NPLs and, 27
regulation of, 226
Caps
on credit, 143
on ECPs, 139
for tax incentives, 115
CAR. See Capital adequacy ratio
Caribbean Association of Banks (CAB), 266, 266n2, 270
Caribbean Basin Initiative, 70n8
Caribbean Catastrophe Risk Insurance Facility, 93n12
Grenada debt restructuring and, 164
Caribbean Community (CARICOM), 34
on CBRs, 266, 281
central bank in, 196
CET of, 101, 108, 114
CRFP and, 196
energy efficiency in, 302n20
energy policies in, 300f
global financial crisis and, 195
gravity model and, 70n8
Investment Code of, 120n8
on tax incentives, 120
Caribbean Crime
Victimization Survey, 329
Caribbean Development Bank (CDB), 167
Caribbean Financial Action Task Force (CFATF), 276, 276n9, 277f
Caribbean Regional Financial Project (CRFP), by IMF, 195–96, 200, 201–2
Caribbean Single Market and Economy, 196, 196n2
Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS), 299n16
Caribbean Tourism Organization, 52n10
CARICOM. See Caribbean Community
CARICOM Energy Policy (CEP), 299n16
Catastrophe bonds, for natural disasters, 93, 94
Catastrophe Draw-Down Option, of World Bank, 92, 92n11
Cavallo, E., 86
Cayman Islands
natural disasters in, 57
tourism in, 66
CBI. See Citizenship-by-investment
CBRs. See Correspondent banking relationships
CDB. See Caribbean Development Bank
CeaseFire program, from Chicago, 34
Cebotari, Aliona, 120
Central America Free Trade Agreement, 70n8
Central banks, 219n29, 226n40
in CARICOM, 196
CBRs and, 283
ECCB, 259n17, 283
financial stability from, 222
in Suriname, 179
CEP. See CARICOM Energy Policy
CET. See Common External Tariff
CFATF. See Caribbean Financial Action Task Force
Chai, Jingqing, 109
Chamon, M. J., 4
Chicago, CeaseFire program from, 34
China
ECPs and, 126–27, 126n7, 127n8
tourism from, 41
Citizenship-by-investment (CBI), 125t
in Grenada, 92n10
inflows under, 129f
in St. Kitts and Nevis, 141, 141n25, 165
Clawback feature, in debt restructuring, 167–68
CL Financial Group, 195, 197, 198–99, 222, 227
Climate change, 8, 25
adaptation efforts for, 93
Belize and, 84
natural disasters from, 83, 88
Cobb-Douglas output production function, 36
Collateral requirements
financial inclusion and, 182–83, 183f, 184, 189, 191f
NPLs and, 247, 251
Collective action clauses (CACs), 151, 168
in Grenada, 162, 163
Commodity exports, 1, 8, 9f
debt-to-GDP ratio and, 149
GDP per capita and, 23f
growth in, 19, 19n1, 20, 21–23, 22f
natural disasters and, 25, 87
NPLs for, 27
per capita income in, 22f
property rights for, 27
tourism and, 39
Common External Tariff (CET), of CARICOM, 101, 108, 114
Competitiveness
from ECPs, 126
growth and, 27
remittances and, 327
in tax incentives, 119–20
Cook’s distance, 29, 29n11, 30t
Corporate income tax exemptions
in Grenada, 119
in Jamaica, 115–16
for offshore banking and insurance companies, 107
Correspondent banking relationships (CBRs), 12, 265–87
AML/CFT and, 13, 270, 272, 275–76, 281–82
bank profitability and, 284–85
central banks and, 283
de-risking and, 13, 266, 266n1
in EMDEs, 13
FDI and, 267, 271
financial account flows and, 267
of global banks, 279–81, 280t
global financial crisis and, 265–66
importance of, 266–69
international trade and, 266–67
losses of, 266, 267t, 271, 281–85
money transfer services and, 272
offshore banking and, 269
policies for losses of, 281–85
remittances and, 267, 273f
sanctions for, 279
taxes and, 277–79, 278t
U.S. and, 274, 282, 285
withdrawals of, 269–81
Corruption, 137n18
competitiveness and, 27
FDI and, 111
growth and, 25t
Costa Rica
education in, 32n13
medium-term growth in, 32n13
Credit
in Barbados, 178–79
caps on, 143
external shocks to, 215f
in Jamaica, 178–79, 187
natural disasters and, 92
NPLs and, 13, 232, 236, 240f, 245
for SMEs, 12, 180f, 182n4
CRFP. See Caribbean Regional Financial Project
Crime, 4, 14f, 25n6, 329–44
cost of, 333–37, 335f, 336f
GDP and, 15, 338
growth and, 25–26, 32, 33–34
international comparisons of, 334–36, 335f
medium-term growth and, 30, 30n12, 32t, 33f
monitoring of, 342
policy recommendations for, 341–43
prevention of, 33–34, 342
private sector impact of, 337–38, 338f–40f
reduction of, economic impact of, 340–41, 341f
regional comparisons of, 336–37
restorative justice for, 34
security against, 15, 334, 338, 340f
stylized facts on, 330–31
victimization from, 15, 330–31, 332f, 333f, 337
See also Homicides
Criminal justice system, 15
Crisis management, for financial stability, 227
Cross-border spillovers
of banks, 211–12, 212f, 214, 218
of ECCU, 214, 218
for insurance companies, 212, 224–25
Cross-country NPLs, 235f
Cross-supervisor coordination, for financial sector, 219–24, 220t–21t
C-SERMS. See Caribbean Sustainable Energy Roadmap and Strategy
Cuba
airlift to, 68f, 69n5
Canada and, 64–73, 65f
exchange rates in, 69
gravity model for, 70–71, 70nn7–9
natural disasters in, 82
policy implications for, 74–75
revolution in, 63, 63n1
structural model for, 72–74
tourism in, 41, 43, 46, 63–75, 63n2, 72f
UK and, 71
U.S. and, 3, 5, 46, 59, 63–75, 68f, 69n5, 72f
Customs duty exemptions, 108
in Grenada, 119
D
Dabla-Norris, M. E., 175, 181
Debt restructuring, 10, 149–68, 149n2
in Belize, 155–60
capital markets and, 160, 168
clawback feature in, 167–68
debt-to-GDP ratio and, 167
features of, 168t–69t
in Grenada, 160–65
innovations and policy lessons for, 167–68
in Jamaica, 151–55
for NPLs, 251, 252f
NPV and, 160, 168
in Seychelles, 167n9
in St. Kitts and Nevis, 165–67
Debt-to-GDP ratio, 7n2
in Belize, 158, 159f
commodity exports and, 149
debt restructuring and, 167
energy costs and, 15
in Grenada, 161f, 164
in Jamaica, 153, 156f
natural disasters and, 84, 87
in St. Kitts and Nevis, 165f
Demirci, Ozge, 30n12
Democracy, 1
Department of the Treasury, U.S., CBRs and, 282
Department of Transportation, U.S. (DOT), 52n10
Deportations, from U.S., 30n12
Deposit insurance, 227, 227n43
Depreciation allowances
in Grenada, 119
in Jamaica, 116
De-risking, CBRs and, 13, 266, 266n1
Disasters, economic damage from, 82, 82f
Discretionary waivers, in Jamaica, 116, 116f
Domestic economy, tourism and, 40
Dominica
airlift to, 50n9
banking liquidity in, 133–34, 134f
debt restructuring in, 149n2
ECPs in, 123, 131, 132f, 141–42, 141n24
geothermal energy in, 302
growth in, 88, 297
hydroelectric power in, 291
natural disasters in, 82, 84
real estate investment in, 126, 126n6
tax incentives in, 103t
tourism in, 73
Dominican Republic
airlift to, 50
natural disasters in, 57, 82
natural gas in, 291n5
tourism in, 41, 43, 46, 63n2, 74
DOT. See Department of Transportation, U.S.
Dutch disease, 123, 324
E
Ease of doing business
for growth, 35
medium-term growth and, 32t, 33f
natural disasters and, 88
World Bank and, 27, 27n8
Eastern Caribbean Central Bank (ECCB), 259n17, 283
Eastern Caribbean Currency Union (ECCU), 109, 120
AMCs of, 259
banks of, 210n22
Barbados and, 200
CAR of, 214n26
CBRs of, 272
CRFP and, 196
cross-border spillovers of, 214, 218
ECPs and, 123, 144
energy regulation in, 301
financial development and, 178, 181
global financial crisis and, 195
Grenada debt restructuring and, 164
inflation in, 295n8
NPLs in, 245n10, 259n17
Eastern Caribbean Energy Regulatory Authority, 301
Eastern Caribbean Financial Holding Company (ECFH), 197
ECCB. See Eastern Caribbean Central Bank
ECCU. See Eastern Caribbean Currency Union
ECFH. See Eastern Caribbean Financial Holding Company
Economic citizenship programs (ECPs), 10, 123–46
in Antigua and Barbuda, 127, 128f, 136, 138–39, 139n21
BIS and, 143, 144t
competitiveness from, 126
in Dominica, 123, 131, 132f, 141–42, 141n24
exchange rates and, 136
financial sector and, 143–44
fiscal accounts for, 142
fiscal buffers and, 139–40, 141n25
fiscal revenues, 130f
GDP and, 131, 131f, 135, 135f
government debt and, 140, 141f
in Grenada, 126, 133, 133n14, 138, 141n23
investment requirements for, 135, 137t
macroeconomic impact of, 129–34
money laundering and, 124, 128, 143
natural disasters and, 133, 133n14
nature and scope of, 124–29
potential risks of, 134–39
potential savings in, 143, 144t
prudent policy framework for, 139–45
race to the bottom and, 135–36
in St. Kitts and Nevis, 123, 131, 131f, 132–33
in St. Lucia, 126, 135–36, 135n17
suspension of, 138–39, 139t
tax evasion and, 124, 128, 143
visa-free access and, 126, 127f
See also Citizenship-by-investment
Economic Program Oversight Committee, in Jamaica, 154–55
Economic shocks, 212–18
remittances and, 325
ECPs. See Economic citizenship programs
Education
in Costa Rica, 32n13
crime and, 26, 34
emigration and, 24n5, 318, 319f
EFF. See Extended Fund Facility
EFZs. See Export free zones
Eigencentrality, 29n9
ELA. See Emergency liquidity assistance
Electricity, 289–90, 289n1
for air conditioning, 301n19
as business constraint, 296f
fossil fuels for, 290–91
net metering for, 301n18
tariffs on, 290, 290f, 291f
utility companies for, 292, 294t
Electricity costs, 14f, 15
growth and, 295–99
renewable energy and, 302n21
EM-DAT. See Emergency Events Database
EMDEs. See Emerging market and developing economies
Emergency Events Database (EM-DAT), 36, 55n11
on natural disasters, 80n1
Emergency liquidity assistance (ELA), 226–27, 227n42
Emerging market and developing economies (EMDEs), 1, 1n1, 18
CBRs in, 13
global financial crisis and, 30
government debt in, 26–27
growth of, 24
per capita income for, 21, 21n2
PPP for, 21
Emigration, 13, 14f, 15
curbing and reversing, 33
education and, 24n5, 318, 319f
growth and, 24–25, 33, 322–24, 324f
policy implications for, 327–28
rates of, 26f
remittances and, 315–28
stylized facts for, 316–18, 317f
Employment
tax incentives for, 108, 112f
See also Unemployment
Employment Tax Credit (ETC), in Jamaica, 116–17
Energy costs, 13, 14f, 15, 289, 295f
inflation and, 296f
macroeconomic impact of, 293–95
Energy efficiency, 298–99, 298n14, 301–2
in CARICOM, 302n20
GDP per capita and, 306n26
targets for, 303t
Energy sector, 289–313
consumption in, 292–93, 293f, 294f
diversification of, 302–3
generation capacity of, 292f
government debt and, 304–8, 307n29, 309f, 310f
investment for, 303–12
physical infrastructure for, 306n24
PPPs in, 15, 308–12, 311f
regulation of, 299–301, 300f, 312n32
state of, 289–93
strategies for, 299
technical assistance for, 312n33
See also Electricity; Renewable energy
Enterprise Surveys, of World Bank, 178, 337
Environmental levies, 114
Erbenová, Michaela, 265, 269
Espinosa-Vega, M., 209
ETC. See Employment Tax Credit
European Union (EU)
ECPs and, 127–28
tax incentives and, 120, 120n9
Exchange rates
in Cuba, 69
ECPs and, 136
oil prices and, 295n8, 297n10
for tourism, 48, 49, 69
Expedia, 44, 46f
Export free zones (EFZs), in Jamaica, 118
Export Rediscount Facility, in Barbados, 179
Exports. See Commodity exports
Extended Fund Facility (EFF), 151
External shocks, 2, 8, 11
CAR and, 218f
to credit, 215f
financial development and, 174
financial interconnectedness and, 212–18
financial safety nets for, 226–27
in financial sector, 12, 209–12, 211f
to households, 217f
multi-sector, 214
to real estate, 217f
single-sector, 213–14, 218f
See also Economic shocks
F
FATCA. See Foreign Account Tax Compliance Act
FDI. See Foreign direct investment
Federal Reserve, U.S., CBRs and, 282
FIA. See Fiscal Incentives Act
Financial account flows, CBRs and, 267
Financial Crimes Enforcement Network, 138
Financial development
external shocks and, 174
financial inclusion and, 173–92
GDP per capita and, 174f
index for, 174–76, 175f, 177f
physical access to, 179f
policy implications for, 190–92
PPP and, 174f
SMEs and, 175, 176–79
stylized facts on, 175–76
Financial inclusion
borrowing constraints for, 181, 189–90
collateral requirements and, 182–83, 183f, 184, 189, 191f
constraints on, 181–90, 182f, 186f
financial development and, 173–92
intermediation costs for, 181, 183n5, 185f, 186
in Jamaica, 182, 187–90, 188f, 190t
participation costs for, 181, 184f, 185–86, 189, 191/
policy implications for, 190–92
Financial interconnectedness
capital markets and, 197, 200
centrality view of, 208f
direct exposures for, 200–204, 205t
external shocks and, 212–18
financial stability and, 195–227
network maps for, 204–7, 206f
risk analysis for, 200–218
systemic spillovers for, 207–18
Financial Oversight Management Committee, in Barbados, 219n29
Financial Regulatory Council, in Jamaica, 219n29
Financial safety nets, 226–27
Financial sector, 4, 11–13, 11f
assets of, 198f, 228t
of Barbados, 207
cross-supervisor coordination for, 219–24, 220t–21t
ECPs and, 143–44
external shocks on, 12
growth and, 27
insurance companies in, 197
interconnectedness of, 12
overview of, 196–200
regulation of, 12, 219–27, 222n31
subcomponents of, 178f
systemic spillovers in, 209–12, 211f
of Trinidad and Tobago, 207
See also Banks
Financial Sector Assessment Programs, 210
Financial Sector Stability Fund, in Jamaica, 167
Financial stability
crisis management for, 227
financial interconnectedness and, 195–227
NPLs and, 232
Fiscal balances, 6–7, 7f, 7n2
Fiscal buffers
ECPs and, 139–40, 141n25
for natural disasters, 79, 91–92
Fiscal Incentives Act (FIA), 101, 115–16, 115n6
Fiscal Responsibility Law, of Grenada, 92n10
Foreign Account Tax Compliance Act (FATCA), 128
Foreign direct investment (FDI), 5–6, 9–10
CBRs and, 267, 271
ECPs and, 144
electricity costs and, 295
remittances and, 316f
tax holidays and, 109
tax incentives and, 101, 108–9, 109t, 112
Forster, Johanna, 55
Fossil fuels, 290–91
Fruchterman-Reingold Algorithm, 207n18
G
Gambling, AML/CFT and, 276
GCT. See General consumption tax
GDP
commodity exports in, 20
crime and, 15, 26, 338
ECPs and, 131, 131f, 135, 135f
energy costs and, 293
energy efficiency and, 298n14
financial development and, 175
financial inclusion and, 183, 189
government debt and, 32
natural disasters and, 81, 83f
sea-level rise and, 88nn5–6
tax expenditures and, 111, 111f, 117, 118f
tourism in, 20, 39, 40f, 48n5
See also Debt-to-GDP ratio; Real GDP
GDP per capita, 13, 14f
energy efficiency and, 306n26
financial development and, 174f
growth in, 23f
natural diasters and, 86n2
General consumption tax (GCT), 117
Geothermal energy, 302
oil prices and, 307n28
Gini coefficient, financial inclusion and, 183, 189
Global banks, 200, 265
CBRs of, 279–81, 280t
ECPs and, 143
remittances and, 322
Global Competitiveness Index, 27
Global financial crisis, 3, 4, 8
CARICOM and, 34
CBRs and, 265–66
ECCB and, 259n17
EMDEs and, 30
financial stability and, 195
growth and, 30
NPLs and, 12, 236, 245
tourism and, 20, 39
unemployment and, 43
Globalization, 2
Global Microscope Survey, 189
Gold, Judith, 10
Government debt, 2, 4, 5–10, 6f
in Belize, 157–58, 157f
ECPs and, 140, 141f
in EMDEs, 26–27
energy sector investment and, 304–8, 307n29, 309f, 310f
GDP and, 32
in Grenada, 162, 162f
growth and, 26–27, 32
in Jamaica, 152, 152f
medium-term growth and, 32t, 33f
natural disasters and, 86–87
in St. Kitts and Nevis, 166f
totals for, 150f
See also Debt restructuring; Debt-to-GDP ratio
Goyal, Rishi, 109
Granvorka, Charley, 55
Gravity model, for Cuba, 70–71, 70nn7–9, 76t
Grenada
airlift to, 50n9
bond market in, 162, 163f
CACs in, 162, 163
debt restructuring in, 160–65
debt-to-GDP ratio in, 161f, 164
Eastern Caribbean Energy Regulatory Authority in, 301
ECPs in, 126, 133, 133n14, 138, 141n23
Fiscal Responsibility Law of, 92n10
government debt in, 162, 162f
growth in, 88
Hurricane Ivan in, 47, 55, 161–65
natural disasters in, 55, 84, 92n10
NPLs in, 245n10
NPV in, 161
tax incentives in, 104t, 108, 118–19
The Grenadines
CBRs in, 272
geothermal energy in, 302
hydroelectric power in, 291
natural disasters in, 84, 89n8
NPLs in, 245n10
physical infrastructure in, 89n8
tax incentives in, 106t
tourism in, 73
GRF. See Growth and Resilience Fund
Growth, 19–36
accounting methodology for, 36
in commodity exports, 19, 19n1, 21–23
competitiveness and, 27
crime and, 25–26, 32, 33–34
data sources for, 35t
diagnostic of relevant characteristics for, 24–29, 25t
ease of doing business for, 35
electricity costs and, 295–99
of EMDEs, 24
emigration and, 24–25, 33, 322–24, 324f
equations for, 29–31, 30t
financial sector and, 27
global financial crisis and, 30
in global perspective, 20–23
government debt and, 26–27, 32
in Jamaica, 32
natural disasters and, 25, 86n2, 88
NPLs and, 27, 30, 233f, 242–43, 242f
policies for, 31–35
property rights and, 27, 35
of real GDP, 19, 20f, 21t
remittances and, 322–24, 324f
sector-specific interventions for, 34
structural impediments to, 13–15, 14f
TFP and, 23, 36
in tourism, 19n1, 21, 31, 31f
trade integration and, 27–28, 32, 34
See also GDP
Growth and Resilience Fund (GRF), in St. Kitts and Nevis, 92, 140–41
Guardian Group, 198, 198n11
Guns, 331
Guyana
growth in, 297
remittances in, 267
tax incentives in, 104t
tourism in, 43
H
H1N1, 70n8
Haiti
financial sector of, 207
natural disasters in, 82
remittances in, 267
tax incentives in, 105t
tourism in, 43, 63n2
Harmonized Scheme of Fiscal Incentives, 120
Hausmann, Ricardo, 34
Hedging, 9
for natural disasters, 93
Helms-Burton Act, 70
Heng, Dyna, 174, 176
Higher-end destinations, in tourism, 48, 48n4, 60t
Holtz-Eakin, D., 243n7
Homicides, 330, 330n4, 331f, 337
by age group, 333t
tourism and, 49, 341
Hotel Aids Act, 101
Hotel beds, for tourism, 48, 49
Households
external shocks to, 217f
financial development and, 176–79
Human capital, medium-term growth and, 32t, 33f
Hurricane Earl, 82, 156
Hurricane Ivan, 47, 55, 161–65
Hurricane Omar, in Nevis, 47
Hurricanes. See Natural disasters
Hydroelectric power, 291, 307
I
IBCs. See International business companies
IDB. See Inter-American Development Bank
IMF. See International Monetary Fund
Immigrant investor programs, 124
Imports, tax incentives for, 108, 113–14
Incarceration, 15, 334
Income Tax Act, in Grenada, 119
Income volatility, remittances and, 325, 326f
Independent power producers (IPPs), 292, 299
Infant mortality, 1
Inflation
in Belize, 158
in ECCU, 295n8
ECPs and, 123
energy costs and, 296f
government debt and, 27
oil prices and, 297f
remittances and, 327
Infrastructure. See Physical infrastructure
Innovation
crime and, 337
in SMEs, 23
Insurance companies, 9, 197, 198–99, 199n12
banks and, 204, 212
corporate income tax exemptions for, 107
cross-border spillovers for, 212, 224–25
defaults by, 209
in financial sector, 197
for natural disasters, 87, 90n9, 91, 92–93, 93nn12–13
parametric, 93
sovereign haircuts to, 218, 218f
sovereign risk scenarios for, 218
in Trinidad and Tobago, 225
Inter-American Development
Bank (IDB), on crime, 15, 26, 33–34, 329–30
Interest rates, 199n13
Intergovernmental Panel on Climate Change, 84
Intermediation costs, for financial inclusion, 181, 183n5, 185f, 186
International business companies (IBCs), 274–75, 275n8
International Financial Reporting Standards, for NPLs, 247
International Monetary Fund (IMF)
on AML/CFT, 276
Belize and, 158–60
on CBRs, 266, 269, 272
CRFP by, 195–96, 200, 201–2
debt restructuring by, 10
EFF of, 151
FIA and, 115–16
on natural disasters, 83–84, 86–87
Poverty Reduction and Growth Facility of, 162
Rapid Credit Facility of, 92
Rapid Financing Instrument of, 92
SBA of, 151
on small states, 19n1
on tax incentives, 102, 120–21
on tourism, 40–41
trade connectivity and, 29n9
International trade, CBRs and, 266–67
Investment
crime and, 26
decision determinants for, 113f
from ECPs, 10
for energy sector, 303–12
tax incentives for, 6, 9–10, 101–21, 114f
TFP and, 24n4
See also Citizenship-by-investment; Economic citizenship programs; Foreign direct investment
Investment Code, of CARICOM, 120n8
Investment Migration Council, 129
IPPs. See Independent power producers
Izquierdo, A., 327
J
Jahan, S., 149n2
Jaitman, Laura, 15, 26, 334
Jamaica
airlift to, 50
AML/CFT in, 276
banks in, 226n39
bond market in, 153, 154f, 155f
collateral requirements in, 184
credit in, 178–79, 187
crime in, 15, 25n6, 32, 330, 336
debt-to-GDP ratio in, 153, 156f
deposit insurance in, 227
discretionary waivers in, 116, 116f
Economic Program Oversight Committee in, 154–55
financial development in, 176, 191
financial inclusion in, 182, 187–90, 188f, 190t
Financial Regulatory Council in, 219n29
financial sector in, 199
Financial Sector Stability Fund in, 167
government debt in, 32, 152, 152f
growth in, 32
insurance companies in, 197, 204
natural disasters in, 57
natural gas in, 291, 291n4
NPLs in, 236
NPV in, 153
Office of Utility Regulation in, 301
PetroCaribe buyback in, 168
remittances in, 267
restorative justice in, 34
tax expenditures in, 117, 117f
tax incentives in, 105t, 108, 115–18
tourism in, 43, 74
Jamaica Debt Exchange (JDX), 151–55
Job creation, 19
Jordan, A., 233n2
K
Khadan, Jeetendra, 15
Klemm, Alexander, 109
Klinger, Bailey, 34
L
Labor, TFP and, 24n4
Laeven, Luc, 27
Laframboise, Nicole, 4, 44, 44n2, 47, 48n4, 55, 83–84
Large-Scale Projects and Pioneer Industries Act (LPPIs), in Jamaica, 118
Latin American Public Opinion Project Survey, 329
Lim, C. H., 225n37
Liquidity
of banks, 133–34, 134f, 175
buffers, 153, 192
ELA for, 226, 227n42
spillovers, 210
Loayza, N., 86
Loko, B., 84
Loss carryforwards, in Jamaica, 116
Lower-cost destinations, in tourism, 48, 48n4, 60t
Loyola, Franz, 8–9
LPPIs. See Large-Scale Projects and Pioneer Industries Act
M
Market diversification, for tourism, 43–44, 59
McIntyre, A., 9–10, 15, 297, 298, 299, 302nn20–21, 307n29
Medium-term growth, 32t, 33f
in Costa Rica, 32n13
crime and, 30, 30n12
Melecky, M., 86n3
Memoranda of understanding (MOU), 222–24, 222n32, 224n33
Mexico
MultiCat Program in, 93n13
natural disasters in, 82
See also Cancun
Mincer equation, 24n5
Money laundering
CBRs and, 266
ECPs and, 124, 128, 143
See also Anti-money laundering/combating the financing of terrorism
Money transfer operators (MTO), 322
CBRs and, 272
Montiel, P., 327
Montserrat
geothermal energy in, 302
NPLs in, 247
Moral hazards, of natural disasters, 90–91
Moreno, Edward, 30n12
MOU. See Memoranda of understanding
MTO. See Money transfer operators
MultiCat Program, in Mexico, 93n13
Myrvoda, A., 10, 233n2
N
National Crisis Management Group
in Bahamas, 219n30
in Trinidad and Tobago, 219n30
National Debt Exchange (NDX), 151–55
National development funds (NDFs), 129, 132, 139
in Antigua and Barbuda, 141
fiscal accounts for, 142
National Transformation Fund, in Grenada, 92n10
Natural disasters, 2, 4, 8–9, 10
annual average disaster damage from, 84f
average annual effects of, 83f
budget deficits from, 86n3
catastrophe bonds for, 93, 94
from climate change, 83, 88
commodity exports and, 25, 87
credit and, 92
criteria for, 55n11
debt restructuring and, 10
debt-to-GDP ratio and, 84, 87
ECPs and, 133, 133n14
EM-DAT on, 80n1
fiscal buffers for, 79, 91–92
fiscal challenges of, 79–95, 87n4
GDP and, 81, 83f
GDP per capita and, 86n2
government debt and, 86–87
gravity model and, 70n8
growth and, 25, 86n2, 88
hedging for, 93
IMF on, 83–84, 86–87
insurance companies for, 87, 90n9, 91, 92–93, 93nn12–13
macroeconomic impact of, 83–87, 96f–97f
medium-term growth and, 32t, 33f
moral hazards of, 90–91
occurrence and impact of, 81t
occurrence of, 85f
parametric insurance companies for, 93
physical infrastructure for, 89n8
policy response to, 88–94
populations affected by, 80f
postdisaster risk management for, 93–94, 94t
poverty and, 87
predisaster risk management for, 89–93, 90f
remittances and, 325–26, 326f
in small states, 86–87, 86n2
TFP and, 23n3
tourism and, 25, 46–47, 47f, 55–58, 56f, 57f
unemployment and, 86
See also Climate change; Sea-level rise
Natural gas, 291, 291nn4–5
Nauru, ECPs in, 138
NDFs. See National development funds
NDX. See National Debt Exchange
Net metering, for electricity, 301n18
Net present value (NPV), 151
debt restructuring and, 160, 168
in Grenada, 161
in Jamaica, 153
in St. Kitts and Nevis, 166
Nevis. See St. Kitts and Nevis
Newey, W., 243n7
Nonperforming loans (NPLs), 11–12, 231–59
bank profitability and, 234, 236, 239, 239f
collateral requirements and, 247, 251
by country, 232f
credit and, 13, 232, 236, 240f, 245
cross-country, 235f
debt-enforcement for, 251–53, 253f, 258
debt restructuring for, 251, 252f
determinants of, 243–45, 244t, 246t
in ECCU, 245n10, 259n17
by economic sector, 237f
financial stability and, 232
global financial crisis and, 12, 236, 245
growth and, 27, 30, 233f, 242–43, 242f
information obstacles for, 253–54, 254f
international comparison for, 250f
International Financial Reporting Standards for, 247
macro-financial implications of, 236–43, 242t
markets for, 254–56, 255f, 255n14, 258
medium-term growth and, 32t, 33f
obstacles to resolution of, 245–56, 245n11, 248f, 249f
provisioning ratios for, 238f, 249, 250f
prudential and supervisory framework for, 247–51
PVAR for, 239–41, 239n4, 241f, 242f, 261f–63f
ratio for, 231n1
real GDP and, 240f, 243–44
recent resolution measures for, 260
seriousness of, 234–36
strategy for resolution of, 256–59, 257f, 257n15
taxes and, 256
for tourism, 27, 231, 236, 245
unemployment and, 234, 241
VAR for, 233
Noy, I., 86
NPLs. See Nonperforming loans
NPV. See Net present value
O
OECS. See Organization of Eastern Caribbean States
Office of Utility Regulation, in Jamaica, 301
Offshore banking, 197
CBRs and, 269
corporate income tax exemptions for, 107
Oil prices, 295–99, 295n8
exchange rates and, 297n10
geothermal energy and, 307n28
inflation and, 297f
real GDP and, 297n10, 298f
Oil production, by Suriname, 290, 290n2
Okwuokei, Joel, 10
Ordinary least squares (OLS), 29, 30t
Organization of Eastern Caribbean States (OECS), ECPs and, 144
Otker, Inci, 8–9
Out eigencentrality, 29n9
P
Panel vector autoregression (PVAR), for NPLs, 233, 239–41, 239n4, 241f, 242f, 261f–63f
Parametric insurance companies, for natural disasters, 93
Par bonds, 166
Paris Club, 161, 163, 164
St. Kitts and Nevis and, 167
Participation costs, for financial inclusion, 181, 184f, 185–86, 189, 191f
Per capita income, 1n1
in commodity exports, 22f
for EMDEs, 21, 21n2
in tourism, 20, 22f
See also GDP per capita
Permanent Court of Arbitration, Belize and, 156n5
Perrelli, Roberto, 47
PetroCaribe buyback, in Jamaica, 168
Physical infrastructure
for energy sector, 306n24
for natural disasters, 89n8
for tourism, 59
Poverty, 1
natural disasters and, 87
Poverty Reduction and Growth Facility, of IMF, 162
PPP. See Purchasing-power-parity
PPPs. See Public-private partnerships
Private credit-to-GDP ratio, financial development and, 175
Productivity, Technology, and Innovation Survey, 330
Property rights, 12
growth and, 27, 35
Property tax exemptions, 108, 114
Provisioning ratios, for NPLs, 238f, 249, 250f
Public debt. See Government debt
Public-private partnerships (PPPs), in energy sector, 15, 308–12, 311f
Public services, for tourism, 58–59
Puerto Rico, tourism in, 63n2, 66, 73, 74
Purchasing-power-parity (PPP), 1
for EMDEs, 21
financial development and, 174f
for tourism, 20
PVAR. See Panel vector autoregression
R
Race to the bottom, 10
ECPs and, 135–36
Raddatz, C, 86n3
Rapid Credit Facility, of IMF, 92
Rapid Financing Instrument, of IMF, 92
Real estate, 202
ECPs and, 10, 126
external shocks to, 213, 217f
seal-level rise and, 88
Real GDP, 1, 3f, 4, 5f
growth of, 19, 20f, 21t
NPLs and, 240f, 243–44
oil prices and, 297n10, 298f
Regional Financial Stability Coordination Council (RFSCC), 222–24
Remittances, 316f
CBRs and, 267, 273f
competitiveness and, 327
costs of, 318, 321f, 322
economic shocks and, 325
emigration and, 315–28
growth and, 322–24, 324f
income volatility and, 325, 326f
inflation and, 327
as macroeconomic stabilizers, 324–27, 325t, 326f
natural disasters and, 325–26, 326f
policy implications for, 327–28
stylized facts for, 318–22, 320f
taxes on, 325n1
from U.S., 323f
Renewable energy, 15, 302
in Barbados, 103t
by country, 302f
electricity costs and, 302n21
targets for, 304t
Residency-by-investment programs, 125, 125t
Restorative justice, 34
RFSCC. See Regional Financial Stability Coordination Council
Risk-layered framework, of World Bank, 94, 94t
Romeu, Rafael, 70n7
Rosen, H. S., 243n7
Royal Bank of Canada, 198n9
Russia, ECPs and, 126–27, 127n8
S
Sagicor Financial Corporation, 198, 198n10, 199n12
SBA. See Stand-By Arrangement
Schengen Agreement, 126, 126n4
Sea-level rise, 84–85, 88
GDP and, 88nn5–6
in small states, 88nn5–6
Sector-specific interventions, for growth, 34
Security
against crime, 15, 334, 338, 340f
for tourism, 58–59
September 11, 2001 terrorist attack
gravity model and, 70n8
tourism and, 49
Seychelles, debt restructuring in, 167n9
SGMM. See System generalized method of moments
Shocks. See External shocks
SIDF. See Sugar Industry Diversification Foundation
Sint Maarten
Cuba and, 71
tourism in, 71
Slemrod, J., 128n10
Small and medium-sized enterprises (SMEs), 2
credit for, 12, 180f, 182n4
financial development and, 175, 176–79
innovation in, 23
policies for, 192
Small states
ECPs in, 123
IMF on, 19n1
natural disasters in, 86–87, 86n2
sea-level rise in, 88nn5–6
SMEs. See Small and medium-sized enterprises
Solar power, 302
Sole, J., 209
Sookram, Sandra, 55
Sovereign haircuts
to banks, 214, 216f
to insurance companies, 218, 218f
Sovereign risk scenarios, for insurance companies, 218
Sovereign wealth fund (SWF), 124
Spillovers. See Cross-border spillovers; Systemic spillovers
Stamp duties, 114
Stand-By Arrangement (SBA), 151
Step-up coupons, 157, 161, 166
St. Kitts and Nevis
airlift to, 50n9
banking liquidity in, 133–34, 134f
CBI in, 141, 141n25, 165
debt restructuring in, 165–67
debt-to-GDP ratio in, 165f
ECPs in, 123, 131, 131f, 132–33
geothermal energy in, 302
government debt in, 166f
GRF in, 92, 140–41
growth in, 88
Hurricane Omar in, 47
natural disasters in, 55, 82, 85, 92
NPV in, 166
sea-level rise in, 85
tax incentives in, 105t, 108
tourism in, 48n5
St. Lucia
airlift to, 50n9
CBRs in, 274
Eastern Caribbean Energy Regulatory Authority in, 301
ECFH in, 197
ECPs in, 126, 135–36, 135n17
natural disasters in, 84
tax incentives in, 106t
Strobl, Eric, 55
Structural impediments to growth, 13–15, 14f
Structural model, for Cuba, 72–74
Structural vector autoregression model (SVAR), for airlifts, 50–52
St. Vincent
CBRs in, 272
geothermal energy in, 302
hydroelectric power in, 291
natural disasters in, 84, 89n8
NPLs in, 245n10
physical infrastructure in, 89n8
tax incentives in, 106t
tourism in, 73
Sugar Industry Diversification Foundation (SIDF), 131, 133, 141
Superbond 3.0, in Belize, 155–60, 159f
Suriname
banks in, 212
CAR of, 214
CBRs in, 274
central bank in, 179
debt-to-GDP ratio in, 149
financial sector of, 207, 219n29
hydroelectric power in, 291, 307
NPLs in, 245n10
oil production by, 290, 290n2
tax incentives in, 107t
Sutton, Heather, 15
SVAR. See Structural vector autoregression model
SWF. See Sovereign wealth fund
SWIFT, 269n3, 270–72, 283
System generalized method of moments (SGMM), 243n7
Systemic spillovers
CAR, 210
for financial interconnectedness, 207–18
in financial sector, 209–12, 211f
T
Taglioni, D., 70n7
Taiwan Export-Import Bank, Grenada debt restructuring and, 164
Tariffs, 114
on electricity, 290, 290f, 291f
Taxes
CBRs and, 277–79, 278t
evasion of, ECPs and, 124, 128, 143
NPLs and, 256
on remittances, 325n1
See also Value-added taxes
Tax expenditures
budgeting for, 115
GDP and, 111, 111f, 117, 118f
in Jamaica, 117, 117f
Tax holidays, 107, 107n1, 113
FDI and, 109
Tax incentives
caps for, 115
competitiveness in, 119–20
effectiveness of, 108–13
for employment, 108, 112f
EU and, 120, 120n9
FDI and, 101, 108–9, 109t, 112
in Grenada, 104t, 118–19
IMF on, 102, 120–21
for imports, 113–14
for investment, 6, 9–10, 101–21, 114f
in Jamaica, 105t, 115–18
policy recommendations for, 112–15
regional approach to, 119–21
revenue losses from, 110t, 111
rules-based system for, 114–15
for tourism, 101
typology of, 102–8, 103t–7t
worldwide prevalence of, 102t
See also Corporate income tax exemptions
Technological leapfrogging, 21
Terrorism
ECPs and, 128
See also Anti-money laundering/combating the financing of terrorism; September 11, 2001 terrorist attack
TFP. See Total factor productivity
Tacker, Nita, 27, 36, 47
Tompson, S., 233n2
Tintchev, K., 233n2
Torre, I., 334
Total factor productivity (TFP)
financial inclusion and, 189
growth and, 23, 23n3, 36
investment and, 24n4
labor and, 24n4
natural disasters and, 23n3
Tourism, 1n1, 3, 3f, 4–5, 8, 9f, 77t
actual vs. predicted arrives for, 71t
airlift for, 41, 48, 49–50, 50n8, 51f, 52n10, 53f, 60t, 61t
in Anguilla, 71
Arellano-Bond estimation for, 48n6
arrivals by source, 66f
in Te Bahamas, 41, 63, 63n2, 66, 73, 74
in Barbados, 63n2
in Belize, 71
branding for, 49
in Cayman Islands, 66
commodity exports and, 39
crime and, 15, 26
in Cuba, 63n2, 72f
declining global share of, 41, 44f
demand and supply factors for, 47–54
domestic economy and, 40
in Dominica, 73
in Dominican Republic, 41, 43, 46, 63n2, 74
energy efficiency and, 301
estimated price and income elasticities for, 48, 48n4
evolution of, 45f
exchange rates for, 48, 49, 69
in GDP, 20, 39, 40f, 48n5
GDP per capita and, 23f
global financial crisis and, 20, 39
in the Grenadines, 73
growth in, 19n1, 20, 21, 22f, 31, 31f
in Haiti, 43, 63n2
higher-end destinations in, 48, 48n4, 60t
homicide rate and, 49, 341
hotel beds for, 48, 49
IMF on, 40–41
in Jamaica, 74
lower-cost destinations in, 48, 48n4, 60t
market diversification for, 43–44, 59
natural disasters and, 25, 46–47, 47f, 55–58, 56f, 57f
NPLs for, 27, 231, 236, 245
per capita income in, 20, 22f
policy implications for, 58–59
PPP for, 20
preferences for, 72n11, 73f, 74
in Puerto Rico, 63n2, 66, 73, 74
regression results for, 59t
relative cost of, 40, 44–47, 44n2
rising arrivals in, 41, 42f, 43f
September 11, 2001 terrorist attack and, 49
share of sources for, 67, 67f
in Sint Maarten, 71
in St. Vincent, 73
tax incentives for, 101
trends, drivers, and challenges for, 39–59
in Trinidad and Tobago, 63n2
in Turks and Caicos, 66
unemployment in, 39
from U.S., 43, 50, 63–75, 74f
in U.S. Virgin Islands, 66, 71
VAT for, 108
Tourism Encouragement Act of 1851, 63
Trade, medium-term growth and, 32t
Trade connectivity
IMF and, 29n9
index, 28f
Trade integration
country size and, 28f
growth and, 27–28, 32, 34
medium-term growth and, 33f
Trade openness, 28f
Trinidad and Tobago
AML/CFT in, 276
banks in, 197–98, 226
CBRs in, 274
CeaseFire program in, 34
central bank in, 226n40
crime in, 15, 25n6, 34, 336
debt-to-GDP ratio in, 149
deposit insurance in, 227
financial development in, 176, 191
financial sector of, 207
Guardian Group in, 198
insurance companies in, 197, 204, 225
National Crisis Management Group in, 219n30
natural gas in, 291n5
NPLs in, 245n10
restorative justice in, 34
Royal Bank of Canada in, 198n9
SMEs in, 179
tax incentives in, 107t
tourism in, 63n2
Tropical Storm Erika, 133, 133n13
Tucker, C., 233n2
Turks and Caicos, tourism in, 66
U
UK. See United Kingdom
Unemployment
ECPs and, 132–33
global financial crisis and, 43
natural disasters and, 86
NPLs and, 234, 241
in tourism, 39
UN Energy Report, 312n32
United Kingdom (UK)
Cuba and, 71
immigrant investor programs in, 124
Migration Advisory Committee of, 126n5
tourism from, 43
United States (U.S.)
airlift from, 50, 51f, 52n10
CBRs and, 274, 282, 285
Cuba and, 3, 5, 46, 59, 63–75, 68f, 69n5, 72f
deportations from, 30n12
FATCA in, 128
immigrant investor programs in, 124, 124n1
remittances from, 323f
tourism from, 43, 50, 63–75, 74f
Urban Renewal Program, in Jamaica, 118
U.S. See United States
U.S. Virgin Islands
Cuba and, 71
tourism in, 66, 71
V
Vale Columbia Center, 101–2, 107n1
on FDI, 108–9
on tax expenditures, 111
Valencia, Fabian, 27
Value-added taxes (VAT), 107
in Grenada, 119
for tourism, 108
Van Fossen, A., 137n18
Van Parys, Stefan, 109
Van Wincoop, E., 70n7
VAT. See Value-added taxes
Victimization, from crime, 15, 330–31, 332f, 333f, 337
Violence. See Crime
Virgin Islands. See U.S. Virgin Islands
W
Week-@-the-Beach Index, 44, 46f, 72
Wong, Joyce Cheng, 12, 15, 30n12
World Bank
Business Environment and Enterprise Performance Survey of, 334
Caribbean Catastrophe Risk Insurance
Facility and, 93n12
Catastrophe Draw-Down Option of, 92, 92n11
on CBRs, 270
ease of doing business and, 27, 27n8
Enterprise Surveys of, 178, 337
risk-layered framework of, 94, 94t
Worldwide Governance Indicators of, 27
World Economic Forum, 27
World Economic Outlook, 36
World Tourism and Travel Council, 39
World Tourism Organization, 63n2
Worldwide Governance Indicators, of World Bank, 27
Worrel, Delisle, 275n8
Y
Youth vocation training, crime and, 15