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Author:
Mr. Alfred Schipke
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Abstract

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

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

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Macroeconomics and Financial Systems