View source for Caribbean Development Bank

{{Short description|International financial institution}}
{{Infobox organization
| name                     = Caribbean Development Bank<ref name="UIA">{{Cite web |url=https://uia.org/s/or/en/1100062241 |url-access= |title=Caribbean Development Bank (CDB) |author1=Staff writer |year=2024 |department=UIA Global Civil Society Database |website=uia.org |publisher=[[Union of International Associations]] |agency=Yearbook of International Organizations Online |location=Brussels, Belgium |format= |arxiv= |asin= |bibcode= |doi= |isbn= |issn= |jfm= |jstor= |lccn= |mr= |oclc= |ol= |osti= |pmc= |pmid= |rfc= |ssrn= |zbl= |id= |access-date=29 January 2025 |url-status= |archive-url= |archive-date= |via= |quote= |trans-quote= }}</ref>
| formation                = {{start date and age|1969|10|18}}
| logo                     = Caribank_Logo.png
| logo_size                = 150
| purpose                  = Regional development
| headquarters             = Wildey, St. Michael, [[Barbados]]
| membership               = 28 <br>(19 borrowing members) <br> (9 non-borrowing members)
| leader_title             = President
| leader_name              = Daniel Best
| website                  = {{URL|https://www.caribank.org/}}
}}

The Caribbean Development Bank (CDB) is a [[development bank]] that helps [[Caribbean]] countries finance social and economic programs in its member countries through loans, grants, and technical assistance. The CDB was established by an Agreement signed on October 18, 1969, in Kingston, Jamaica, which entered into force on January 26, 1970.<ref name="UIA" /> The idea for the bank originated from the 1966 Canada/Commonwealth Caribbean Conference.<ref>{{Cite web |url=https://www.caribank.org./bank-history}}</ref>

The permanent headquarters of the CDB is located in Wildey, St. Michael, Barbados, adjacent to the campus of the [[Samuel Jackman Prescod Institute of Technology|Samuel Jackman Prescod Polytechnic]]. On September 21, 2018, the Bank officially opened its Country Office in Haiti, the first outside its Headquarters in Barbados. The headquarters in Barbados serves all of the regional borrowing member countries, with staff recruited from its member states.<ref>{{Cite web |title= Caribbean Development Bank (CDB) &#124; LAIF - Latin America Investment Facility|url=https://www.eulaif.eu/en/partners/caribbean-development-bank-cdb}}</ref>

== History ==
The Caribbean Development Bank was established by an agreement between sixteen members of the [[Commonwealth of Nations]] in the [[Caribbean]] region, along with [[Canada]] and the [[United Kingdom]]. Signed on October 18, 1969, in [[Kingston, Jamaica|Kingston]], [[Jamaica]], the Agreement entered into force on January 26, 1970 when 15 of the 18 signing states [[Ratification|ratified]] it. <ref name=":02">Ingham, Barbara, and Mark Figueroa. “W. Arthur Lewis and the Legacy of the Caribbean Development Bank.” ''Journal of Eastern Caribbean Studies'', vol. 34, no. 4, Dec. 2009, pp. 1–20. Sir Arthur Lewis Institute of Social and Economic Studies, University of the West Indies. <nowiki>https://www.jecsonline.com/wp-content/uploads/2019/09/JECS-Vol-34-No.-4-Dec-2009.pdf</nowiki>.</ref> The bank's initial capital was 50 million USD, equivalent to 100 million [[Eastern Caribbean dollar]], with main contributions from Jamaica (11,200,000 USD and 19.52% of votes), and the United Kingdom and Canada contributing 10,000,000 USD each with 17.55% of votes in bank.<ref>Tomanović, M. (1971). ''Hronika međunarodnih događaja 1970''. [[Belgrade]]. Institute of International Politics and Economics Archived 2018-08-16 at the [[Wayback Machine]], p.2201. (in [[Serbo-Croatian]])</ref>

The bank was created with the purpose of promoting sustainable economic growth and reducing poverty in the region, aligning with [[W. Arthur Lewis]]'s vision of economic development. <ref>Wood, Anthony, and Anya Lewis. “Risk Culture Development and Its Impact: The Case of the Caribbean Development Bank.” ''International Journal of Business and Economic Development'', vol. 6, no. 1, Mar. 2018, pp. 18–24. Academy of Business and Retail Management. <nowiki>https://ijbed.org/cdn/article_file/content_48979_18-04-04-07-11-25.pdf</nowiki>.</ref> During the first meeting of governors in Nassau, Lewis, who was an economist, was appointed the first president of the Caribbean Development Bank. His leadership was essential to establishing the bank's operations, emphasizing the importance of financial discipline and efficiency in development through agriculture and infrastructure projects. At this time, the bank aimed to reduce economic disparities among its member states by using soft loans to finance public works and agricultural development in the less developed states. <ref name=":02" />

Lewis set the CDB's independence up by retaliating against political interference in the financial decisions of the bank. He also ensured there would be efficient administration and a focus on the Caribbean states to become a key financial instrument for the countries that lacked access to international financial institutions. Lewis also played a key role in building strong relationships with other international organizations like the [[Inter-American Development Bank|Inter-American Development Bank (IDB)]] and USAID that helped the bank gain legitimacy and credibility.<ref name=":02" />

== Organization ==
=== Board of Governors ===
The Board of Governors is the apex governing body of the CDB. It meets annually and has the authority to:

* Admit new members
* Amend the charter
* Elect the Board of Directors and President
* Change the bank's outstanding capital
* Dissolve the bank.

Each country is represented by one governor and one alternate, with the [[British Overseas Territories|British Overseas Territory]] members counted as one country. <ref name=":2">{{Cite web |url=https://www.caribank.org./about-us/bank-organisation|title=Bank Organisation &#124; Caribbean Development Bank}}</ref>

=== Board of directors ===
The Board of Directors is responsible for:

* Determining the bank's programs and annual budget
* Overseeing its operations
* Appointing the Oversight and Assurance Committee

As with the Board of Governors, each country is represented by one director and one alternate. Directors serve renewable two-year terms. <ref name=":2" />

=== President ===
The President is the chief executive officer of the CDB, and also serves as the Chairman of the Board of Directors. Different offices for communication, risk management, and compliance are part of the Office of the President. 

Presidential candidates are nominated by individual country members. A candidate must receive votes from two-thirds of the Board of Governors (representing 75% of the member countries) in order to be selected. The President serves for a five-year term, with the possibility of re-election.<ref name=":2" />

=== List of presidents ===
The Bank has had seven presidents since its inception.<ref name=":0">{{Cite web|title=President {{!}} Caribbean Development Bank|url=https://www.caribank.org/about-us/bank-organisation/president|access-date=2021-01-20|website=www.caribank.org}}</ref>
{| class="wikitable"
!Name
!Dates
!Nationality
|-
|[[William Arthur Lewis]]
|1970–1973
|{{flagcountry|Saint Lucia|variant=1967}}
|-
|[[William Demas|William G. Demas]]
|1974–1988
|{{flagcountry|Trinidad and Tobago}}
|-
|Neville Nicholls
|1988–2001
|{{flagcountry|Barbados}}
|-
|Compton Bourne
|2001–2011
|{{flagcountry|Guyana}}
|-
|William Warren Smith
|2011–2021
|{{flagcountry|Jamaica}}
|-
|Hyginus 'Gene' Leon<ref>{{Cite web |date=2021-01-20 |title=Saint Lucian Is New Caribbean Development Bank President |url=https://stluciatimes.com/saint-lucian-is-new-caribbean-development-bank-president/ |access-date=2021-01-20 |website=St. Lucia Times News |language=en-US}}</ref>
|2021–2024
|{{flagcountry|Saint Lucia}}
|-
|Daniel Best
<ref>{{Cite web |title=Caribbean Development Bank Appoints Daniel Best as its Seventh President {{!}} Caribbean Development Bank |url=https://www.caribank.org/newsroom/news-and-events/caribbean-development-bank-appoints-daniel-best-its-seventh-president |access-date=2025-02-17 |website=www.caribank.org}}</ref>
|2025 - Present
|{{flagcountry|Barbados}}
|}

=== Corporate leadership ===
The two corporate leaders that report to the boards are the Vice-President Finance and Corporate Services and the Vice-President (Operations). 

== Financial Overview ==
As of December 31, 2021, the CDB's total assets stood at US$3.71 billion, which included US$2.21 billion of Ordinary Capital Resources and US$1.50 billion of Special Funds Resources.

The Bank holds a high credit rating from international agencies:

* [[Moody's Ratings|Aa1 (Stable)]] by Moody's
* [[S&P Global Ratings|AA+ (Stable)]] by Standard & Poor's
* [[Fitch Ratings|AA+ (Stable)]] by Fitch Ratings.

In 2021, the Bank approved US$269.5 million in loans and grants. At the end of 2020, the total value approved projects by the bank was US$122.6 million, including US$71.2 million in loans and US$51.4 million in grants.

== Membership ==
The CDB's membership consists of 28 countries, including:

* 19 regional borrowing members<ref>{{Cite web |title=Members |url=https://www.caribank.org./countries-and-members/borrowing-members}}</ref>
* 4 regional, non-borrowing members: Brazil, Colombia, Mexico and Venezuela <ref name=":1">{{Cite web |url=https://www.caribank.org./countries-and-members/non-borrowing-members|title=Non-Borrowing Members &#124; Caribbean Development Bank}}</ref>
* 5 non-regional, non-borrowing members: Canada, China, Germany, Italy, and the United Kingdom<ref name=":1" />

=== Member states ===
[[Image:CaribbeanDevelopmentBankMap.png|thumb|300px|Regional in green, other regional blue, non-regional members in red]]As of 2023, there are nineteen borrowing members<ref>{{Cite web|title=Borrowing Members {{!}} Caribbean Development Bank|url=https://www.caribank.org/countries-and-members/borrowing-members|access-date=2021-01-21|website=www.caribank.org}}</ref> and nine non-borrowing members.<ref>{{Cite web|title=Non-Borrowing Members {{!}} Caribbean Development Bank|url=https://www.caribank.org/countries-and-members/non-borrowing-members|access-date=2021-01-21|website=www.caribank.org}}</ref>

==== Regional ====
{|
|
* {{flagcountry|Anguilla}} 
* {{flagcountry|Antigua and Barbuda}} 
* {{flagcountry|The Bahamas}} 
* {{flagcountry|Barbados}}
* {{flagcountry|Belize}}
* {{flagcountry|British Virgin Islands}}
* {{flagcountry|Cayman Islands}}
* {{flagcountry|Cuba}} <sub>pending</sub><ref name="Argentina+Cuba+DR">{{cite news|date=March 17, 2018|title=Forging closer ties|work=[[Barbados Today]]|url=https://www.barbadostoday.bb/2018/03/17/forging-closer-ties/|url-status=dead|access-date=January 21, 2021|archive-url=https://web.archive.org/web/20180326200623/https://www.barbadostoday.bb/2018/03/17/forging-closer-ties/|archive-date=March 26, 2018|quote=Smith pointed to the incorporation of Brazil, Colombia, Venezuela and Mexico as full members of the CDB. He also spoke of the imminent memberships of Cuba and the Dominican Republic, adding that the Bank was interested in incorporating the Argentine Republic in the near future.}}</ref>
* {{flagcountry|Dominica}}
* {{flagcountry|Dominican Republic}} <sub>pending</sub><ref name="Argentina+Cuba+DR"/>
* {{flagcountry|Grenada}} 
|
* {{flagcountry|Guyana}} 
* {{flagcountry|Haiti}} 
* {{flagcountry|Jamaica}} 
* {{flagcountry|Montserrat}} 
* {{flagcountry|Saint Kitts and Nevis}} 
* {{flagcountry|Saint Lucia}} 
* {{flagcountry|Saint Vincent and the Grenadines}}
* {{flagcountry|Suriname}}
* {{flagcountry|Trinidad and Tobago}} 
* {{flagcountry|Turks and Caicos Islands}} 
|}

===Other regional===
{|
|-
|
* {{Flagcountry|Argentina}} <sub>(pending)</sub><ref name="Argentina+Cuba+DR"/>
* {{Flagcountry|Brazil}}
* {{Flagcountry|Colombia}} 
* {{Flagcountry|Mexico}} 
* {{Flagcountry|Venezuela}}
|}

===Non-regional===
{|
|-
|
* {{flagcountry|Canada}} 
* {{flagcountry|China}} 
* {{flagcountry|Germany}}
* {{flagcountry|Italy}} 
* {{flagcountry|United Kingdom}}
|}

== United Nations Development Business ==
The [[United Nations]] launched ''[[Development Business]]'' in 1978 with the support of the Caribbean Development Bank, the [[World Bank]], and many other major development banks from around the world. Today, Development Business is the primary publication for all major multilateral development banks, United Nations agencies, and several national governments, many of whom have made the publication of their tenders and contracts in Development Business a mandatory requirement.<ref>{{Cite web|title=Development Business|url=https://devbusiness.un.org/|access-date=2021-01-21|website=devbusiness.un.org}}</ref>

== Recent Developments and Risk Management ==
In 2012, the CDB experienced a credit downgrade due to weaknesses in the banks credit profile. The downgrade reflected concerns about the deteriorating financial conditions of its borrowing member countries, this posed risks the banks ability to finance loans effectively. There were also inefficiencies in CDB's risk management practices which prompted the bank to adopt a Enterprise Risk Management framework to address these issues. This design was meant strengthen the bank's governance, risk management, and operational processes, ensuring better oversight, accountability, and financial stability. <ref>Wood, Anthony, and Anya Lewis. “Risk Culture Development and Its Impact: The Case of the Caribbean Development Bank.” ''International Journal of Business and Economic Development'', vol. 6, no. 1, Mar. 2018, pp. 18–24. Academy of Business and Retail Management. <nowiki>https://ijbed.org/cdn/article_file/content_48979_18-04-04-07-11-25.pdf</nowiki>.</ref><ref>Ingham, Barbara, and Mark Figueroa. “W. Arthur Lewis and the Legacy of the Caribbean Development Bank.” ''Journal of Eastern Caribbean Studies'', vol. 34, no. 4, Dec. 2009, pp. 1–20. Sir Arthur Lewis Institute of Social and Economic Studies, University of the West Indies. https://www.jecsonline.com/wp-content/uploads/2019/09/JECS-Vol-34-No.-4-Dec-2009.pdf.</ref>

== Partnerships ==
The CDB collaborates with distinct institutions like the [[Green Climate Fund]] to promote sustainable development and climate resilience across the region. <ref>“Caribbean Development Bank (CDB).” ''Green Climate Fund'', Green Climate Fund, 13 Oct. 2016, www.greenclimate.fund/ae/cdb.</ref> The bank also facilitates soft loans and technical assistance for its smaller member states by working closely with partners like the Inter-American Development Bank and the [[World Bank]]. <ref>Wood, Anthony, and Anya Lewis. “Risk Culture Development and Its Impact: The Case of the Caribbean Development Bank.” ''International Journal of Business and Economic Development'', vol. 6, no. 1, Mar. 2018, pp. 18–24. Academy of Business and Retail Management. <nowiki>https://ijbed.org/cdn/article_file/content_48979_18-04-04-07-11-25.pdf</nowiki>.</ref><ref>Ingham, Barbara, and Mark Figueroa. “W. Arthur Lewis and the Legacy of the Caribbean Development Bank.” ''Journal of Eastern Caribbean Studies'', vol. 34, no. 4, Dec. 2009, pp. 1–20. Sir Arthur Lewis Institute of Social and Economic Studies, University of the West Indies. <nowiki>https://www.jecsonline.com/wp-content/uploads/2019/09/JECS-Vol-34-No.-4-Dec-2009.pdf</nowiki>.</ref>

== See also ==
{{Portal|Banks}}
* [[African Development Bank]]
* [[African, Caribbean and Pacific Group of States]]
* [[Asian Development Bank]]
* [[Asian Infrastructure Investment Bank]]
* [[Association of Caribbean States]]
* [[CAF – Development Bank of Latin America and the Caribbean]]
* [[CARIFORUM–United Kingdom Economic Partnership Agreement]]
* [[Central banks and currencies of the Caribbean]]
* [[European Investment Bank]]
* [[New Development Bank]] (BRICS)/NDB BRICS
* [[Islamic Development Bank]]

== References ==
{{reflist}}

==External links==
* [http://www.caribank.org/ Official Caribbean Development Bank website]

{{International development and investment banks}}
{{Belt and Road Initiative}}
{{Caribbean topics}}
{{Pan-Americanism}}
{{South-South}}
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[[Category:Banks of the Caribbean]]
[[Category:International banking institutions]]
[[Category:International organizations based in the Caribbean]]
[[Category:Multilateral development banks]]
[[Category:Supranational banks]]
[[Category:Intergovernmental organizations established by treaty]]
[[Category:Financial services companies of Barbados]]
[[Category:Organizations established in 1969]]
[[Category:1960s establishments in the Caribbean]]
[[Category:1969 establishments in North America]]