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CROWDFUNDING THE CARIBBEAN

Crowdfunding helps Caribbean SMEs, bypassing obstacles to traditional financing BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

Financing is often the first hurdle for small businesses in the Caribbean. Many of the region’s SMEs fail to make it to market because they can’t access the necessary funds to develop their products. This has led savvy entrepreneurs to turn to alternative means of financial support such as crowdfunding. Bypassing the banks allows these start-ups to meet the market on their own terms, drawing funds from family, friends and those who believe in their products. More flexible financing also gives businessowners the chance to be more innovative which, in turn, leads to greater creativity, competition and sustainable growth.

China’s reputation as development financier on the line Chinese officials have long talked up the “win-win” attributes of their engagement with other developing countries. China wins contracts, markets and access to raw commodities. Its partners win infrastructure and investment Page 3

Continued on page 4

US recalls ambassadors over recognition of China The US has recalled the heads of its missions to the Dominican Republic, El Salvador and Panama for consultations over decisions by governments in those countries to break diplomatic relations with Taiwan and switch to China instead Page 7

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SEEKING A CRYPTO CONSENSUS IN THE CARIBBEAN How do Caribbean nations treat cryptos? And how should they? BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

Even if the government can’t or won’t guarantee that an investment is a wise one, it can reasonably look to guarantee that the platforms on which an investment is traded are secure, and not prone to theft or breach.

The STAR Businessweek BY CHRISTIAN WAYNE – EDITOR AT LARGE

Last week the United States Embassy, based in Bridgetown, Barbados, made an important and much-welcomed announcement that Saint Lucians may now be eligible for waivers on the interview requirement element of their US visa renewal process. Up until now, Saint Lucians were required to physically travel to Barbados, footing the bill of airfare and accommodations, in order to conduct the majority—if not all—of their consular affairs with their American counterparts. Surely, immigration management technology like the 10-fingerprint scan and other biometric data collection and management protocols have helped contribute to the relaxation of the in-person interview, but this editor suspects there’s a bit more at play here than meets the eye. Stated in the associated press release by the US Embassy is a specific group of Saint Lucians who will not be eligible for the waiver—Saint Lucian economic citizens, otherwise known as Citizenship by Investment beneficiaries. It would seem that despite having their very own immigration investment scheme in the United States—marketed heavily by Ivanka Trump and Jared Kushner as incentives for making real estate investments with the Trump Organisation—America doesn’t seem too welcoming of the Caribbean’s newest flock of Johnny Come Latelys. Of course, the communique was a little more, shall we say, diplomatic. The subtle nature of the soft rebuff may indeed be the reason why the astute Prime Minister of Antigua and Barbuda, Gaston Browne, has been left wondering (aloud in the media, of course) why the exemption was not extended to the twin-island state and its citizens. It couldn’t possibly be the perception held by Canada, the US, and the EU that Antigua’s CIP epitomizes the wild, wild West Indies of economic citizenship. Or that America is finally wising up to the surreptitious nature of China’s interest in our region. Watch this space, the water isn’t even frothy yet. Also, be sure to read our lead story this week Crowdfunding the Caribbean and how this alternative financing approach can help entrepreneurs bypass many of the obstacles to traditional financing. Saint Lucia is a specific focal point of the research in this article so I highly recommend our readers check it out. One startling statistic (well, startling to anyone who hasn’t already banked in the Caribbean) is that 60% of Saint Lucians don’t have a bank account. Read more starting on page 1! It’s Nothing Personal. It’s Business. Stay connected with us at: Web: www.stluciastar.com Social: www.facebook.com/stluciastar Email: starbusinessweek@stluciastar.com

LOOKING FOR REGIONAL LEADERSHIP

While Puerto Rico is leading the cryptocurrency charge, it is not alone. There are eight other Caribbean Island economies which make up the Eastern Caribbean Central Bank (ECCB) who are exploring digital currency opportunities. They have considered issuing their own cryptocurrency called the Digital Eastern Caribbean dollar (DXCD)

cross the Caribbean the financial sector plays a pivotal role in day-to-day business for many nations. Just as the industry is experiencing rapid change, thanks to the ‘push and pull’ factors of digitisation and globalisation in our national economies, so too is it forever facing the challenge of emerging tech. Few new forms of tech have the potential to transform our world like cryptocurrency. Yet while those advocates for this form of digital financial payment cite its potential to be revolutionary, it also unquestionably comes with some new risks. That’s why striking the right balance between encouraging innovation and proper regulation is critical, but also very difficult, especially given that the borderless potential of cryptocurrency means policy partnership between nations can be crucial. So, what are the issues that confront regional cryptocurrency regulation? And what are the prospects for a crypto consensus emerging in the

Caribbean? Let’s look in-depth now.

HOW TO REGULATE AND INCORPORATE

Crypto regulation is a difficult issue for so many nations. It not only touches on deciding how to define something of value—whether cryptos should be classified as a currency, a piece of property, or something else—but also how to treat the broader relationships it has to other areas of business and life. While each nation is different, certain questions commonly arise. How do you regulate its use as a financial instrument where it’s used as something of value for consideration and the forming of a contract between two parties? How do you define its value from one day to the next when it’s a 24/7 market with a potential for incredibly volatile moves that deliver huge highs and low lows? Furthermore, how do you deal with security matters surrounding the verification of someone’s identity and the prevention of raids on exchanges located in a nation, thereby protecting its citizens who use the exchange?

While there are governments that have pioneered cryptocurrency, this is, without doubt, a field where business must play a leadership role. Within the capital cities of the region there are advocates and critics alike of cryptocurrency. On an even-handed domestic issue, this may not frustrate progress but, as cryptocurrency is a global phenomenon, the fallout of a leadership vacuum can be immense and severe. Local businesses like Bitt and financial houses like the Eastern Caribbean Central Bank have featured prominently in this space. Both have served as vivid examples of the contemporary and practical opportunities forging greater ties between emerging tech and existing businesses in the region. Yet it’s also true that the cryptocurrency sector seeks to develop in our region during a time when great tensions exist in the local financial sector surrounding the ongoing controversies ebbing from the Panama and Paradise Paper leaks. The relationship between emerging financial houses and the ‘traditional’ finance industry is not always clear-cut, nor reflective of any one trend over the industry as a whole. Yet undoubtedly the blurring of the traditional and emerging financial industry could represent ‘the worst of both worlds’, as many critics hold that the existing industry by itself lacks sufficient regulation around the region. This is why business could play such a vital role in progressing this debate and policy development. For better or worse, governments are often too slow to react to public discord, or too fast, via a knee jerk reaction. In this environment, the strong and proactive role of businesses in launching and maintaining Continued on page 5

THE FT VIEW

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CHINA’S REPUTATION AS DEVELOPMENT FINANCIER ON THE LINE

Large-scale project funding from Beijing brings benefits but also raises risk of distress in vulnerable clients BY THE FT EDITORIAL BOARD

hinese officials have long talked up the “win-win” attributes of their engagement with other developing countries. China wins contracts, markets and access to raw commodities. Its partners win infrastructure and investment, and an ally that, unlike western countries, eschews obvious political conditionality in return for loans. The mutual benefits can indeed be great.

A growing number of the recipients of Chinese credit are discovering, however, that the purported “win-win” formula also creates losers. US officials now see a disturbing pattern in which Beijing has encouraged indebtedness in order to gain control of strategic assets when debtors default on repayments. Whether China is doing this deliberately or not — and Beijing strongly denies this — the effect in parts of Africa and Asia is as such. For good reason, Pakistan plans to

renegotiate agreements signed under Chinese President Xi Jinping’s Eurasian African infrastructure rollout known as the Belt and Road Initiative. Malaysia has gone further and cancelled about $3bn worth of pipeline projects linked to the same Chinese programme. Kuala Lumpur had already suspended another $20bn in BRI schemes and is investigating links in some of them to the scandalplagued 1Malaysia Development Berhad investment fund. It is in the interest of both countries to review how strategic, commercially sound and clean these projects are. Pakistan is in the throes of a balance of payment crisis brought on in large part by the scale of its borrowing under the $62bn ChinaPakistan Economic Corridor plan — the most ambitious part of the BRI. This risks becoming the spark for a row between Beijing and Washington, which places the IMF in the unenviable role of arbiter of the competing interests of two of its three largest shareholders. Last month, members of the US Senate accused China of “weaponising capital” and called on the Trump administration to ensure the IMF does not leap to the rescue of countries struggling to repay Chinese loans. There is a whiff of hypocrisy in this, given the reckless nature of past US lending. If the real concern in Washington is to maintain US influence in the developing world in the face of Chinese rivalry, it needs to raise its own game. But there are also valid reasons for US concern. No doubt, Chinese financing is supporting growth in Africa and Asia. No doubt too it is increasing the risk of distress in vulnerable clients. A detailed recent study by the Centre for Global Development found this was the case in 23 of 68 countries with BRI funding, eight of which already have unsustainable levels of sovereign debt. Sri Lanka surrendered a 99-year lease to a Chinese conglomerate for a port financed with loans from Beijing that

US officials now see a disturbing pattern in which Beijing has encouraged indebtedness in order to gain control of strategic assets when debtors default on repayments. Whether China is doing this deliberately or not — and Beijing strongly denies this — the effect in parts of Africa and Asia is as such. failed to generate much income. Ports in Pakistan and Djibouti, where both the US and China have military bases, are vulnerable to similar takeovers. It is not the role of the IMF to safeguard America’s national security interests. But it is the IMF’s job to sound the alarm over irresponsible lending and borrowing. Although discredited by its failures to do this correctly in the past, there is no reason that it should not attempt an improvement in future. It should also lean on China to join the Paris club of international creditors, or at least subscribe to the same standards of sustainability and transparency. The burgeoning problems associated with opaque Chinese lending have global implications. China’s reputation as a development financier is on the line.

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CROWDFUNDING THE CARIBBEAN Continued from page 1

A CHALLENGING ENVIRONMENT

A crowdfunded venture is one that seeks small financial contributions from a large group of people. These numerous investors can give equity in the project, in return for a specific reward or simply as a donation. Crowdfunding typically occurs over the internet—bringing the entrepreneur together with prospective donors through an online platform. According to Samuel Raymond, infoDev Consultant: “Crowdfunding does not require the detailed level of documentation, collateral, cash flow and other rigorous requirements as do banks. There is the added bonus that crowdfunding is an easier, more cost-effective way to test and fine-tune new product ideas. A potentially good product or service idea can be brought to market within a shorter term through a properly managed crowdfunding programme.” In 2016, the global crowdfunding market reached US$35.2bn, according to an infoDev report, and US$324m of this total was generated in Latin America and the Caribbean. Caribbean businesses, however, have been slow to realise the potential of crowdfunding, with concerns about the trustworthiness of online funding networks, technological challenges and lack of awareness stifling uptake in the region. Late last year, infoDev released a comprehensive survey into crowdfunding in the region. Commenting on the report, Bryan Zhang, Co-Founder of the Cambridge Centre for Alternative Finance said: “The strength of financial innovation such as crowdfunding comes from its dynamism, diversity and adaptability to local context. There is simply no ‘one-size-fits-all’ approach that will magically spur the growth of crowdfunding in every country. A holistic and ecosystem-based approach would be best placed to unlock the potential of crowdfunding in the Caribbean, whilst ensuring the development is sustainable and appropriately regulated.”

InfoDev analysts took an in-depth look at four Caribbean countries, chosen to represent a range of populations, geography and economic development. Saint Lucia was one of the four case studies and researchers found significant challenges. According to the report, while both public and private stakeholders in Saint Lucia are enthusiastic about making alternative financing available to small businesses, there is a lack of capacity and project development. SMEs expressed widespread frustration at burdensome procedures for getting grants or other funding and all successful businesses surveyed said they had struggled in the early stages to build capital.

BUILDING A CROWDFUNDING ECOSYSTEM

While there is definitely a need for alternative funding in Saint Lucia, debate still remains over how to create the ideal crowdfunding environment. Infodev researchers suggest small island states focus on three major pillars: user capacity, regulation and technology. Developing a common standard across the Eastern Caribbean, and ensuring legislation reflects a co-ordinated approach based on international best practices, would give all users a high degree of confidence in the system. Tried and tested online payments, money transfers and e-commerce platforms are all necessary. While Saint Lucia has widespread mobile internet usage and an efficient 4G network, there are currently no domestic crowdfunding platforms available to entrepreneurs. There is connectivity among the population thanks to high engagement of social media services such as Facebook, Twitter and Whatsapp. However, 60% of the adult population does not have a bank account, according to infoDev. While there may not be a local crowdfunding provider, Saint Lucians are making use of international fundraising sites such as Fundly and Youcaring. In 2015 the total amount of

crowdfunding raised for Saint Lucian or Saint Lucia-related projects was US$72,000, according to the Eastern Caribbean Central Bank. This was done through Fundly, Youcaring, Razoo and Global Giving.

FAR-REACHING IMPACT

Crowdfunding isn’t just a powerful way of supporting start-ups and SMEs; it can also be a tool for promoting social causes. Pitch&Choose, based in Barbados, is the Caribbean’s first regional crowdfunding platform for non-profits and social and creative ventures. The online marketplace aims to connect Caribbean causes with investors and donors from all over the world. It hosts a number of initiatives including FundRiseHER—a group formed by the Commonwealth Businesswomen’s

Network and the Caribbean Export Development Agency to provide financial support for the region’s female entrepreneurs. Minority groups or charities who can find themselves shut out of the traditional banking system, either through lack of representation or lack of resources, can find a supportive network on crowdfunding platforms populated by small-scale investors eager to use their capital to drive change. These supporters are frequently drawn from the Caribbean diaspora, with crowdfunding providing an effective way of tapping into the Caribbean market at home and abroad. Many diaspora investors are not just looking for a return on their funding, but seek

You are never too young to start saving money or planning for tomorrow St. Lucia Workers Credit Union Young Dreamers Account offers special features and incentives to help keep our children financially fit

• Parent must provide their ID and the child’s birth certificate upon opening account • No withdrawal policy (Except under special or emergency circumstances) • Parent/guardian must be a member of the credit union

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SEEKING A CRYPTO CONSENSUS IN THE CARIBBEAN Continued from page 2

RegTech is the use of new technology to facilitate the delivery of regulatory requirements

The Caribbean has great potential for crowdfunding, provided that the right enabling environment is put in place to promote it. According to a study recently commissioned by infoDev, a global technology and innovation programme at the World Bank Group, the region is ripe for growth in this flourishing alternative financing mechanism

out opportunities to help their native communities, and this represents a huge opportunity for social entrepreneurs. According to the World Bank, the Caribbean diaspora numbers almost six million and, in 2012, these expats sent over US$7 billion home (US$29.2 million of this went to Saint Lucia, comprising 3.7% of the country’s GDP).

INCREASED UPTAKE

In 2016, infoDev offered the region’s businesspeople a free Massive Online Open Course (MOOC) in crowdfunding. The Crowdfunding MOOC for Caribbean Entrepreneurs (CMCE) was the first of its kind in the region and covered crowdfunding models and platforms, how to identify and analyse the target

audience, creating a campaign message and tools and using web analytics. The CMCE received 523 applications, and 244 entrepreneurs actively participated. At the end of the eight-week course, applicants were invited to submit their own projects which would then benefit from direct coaching, with the aim of bringing them to market. The CMCE was oversubscribed, and it’s no wonder. Burdensome banking and technological advances have combined to create the perfect environment for crowdfunding to thrive. Early adopters are already reaping the rewards and stakeholders are expecting others in the SME sector to follow suit. Policymakers and regulators must work together to develop an appropriate framework for these innovative entrepreneurs or risk finding themselves playing catch-up.

crypto ventures not only serves as proof positive of crypto’s viability and potential, but also ensures strong voices are on hand to engage with government.

THE CRYPTO CONSENSUS

Across the Caribbean there is the recognition that achieving a regional consensus is wholly unlikely, and likely unnecessary. Each nation can pursue its own financial affairs, and do so with the knowledge that robust security in its financial sector domestically can serve not only as a foundation that benefits the people within its borders, but also the region as a whole. Nonetheless, as we have detailed in recent weeks, even if regional consensus isn’t achieved, regional discord can be especially dangerous. The growing tension between the European

nation of Malta as an aspiring crypto capital that has liberally issued Citizenship by Investment Programme (CIP) passports, and the European Union government in Brussels, shows the risks here. As with CIPs, even if all other Caribbean

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nations adopted very strong cryptocurrency regulation, just one nation taking a lackadaisical approach to good regulation could be a security threat to the region. This debate will continue to develop and progress into the future. Any fair consideration, therefore, of today’s landscape and its shortcomings must consider that the future may yet yield stronger shared regulation in this space, if not at a regional level, then potentially a bilateral one, as nations with close ties seek to adopt shared crypto policy, to make trade and business easier.

COINING A NEW POLICY

Ultimately, even the biggest critics would be wary of suggesting that the concepts of cryptos are totally an imminent bust and could never again become useful. Whatever the future holds in the long term, even in the short term there are blockchain applications being implemented locally and globally. The shared space of cryptos and blockchain means the ongoing use of one would always keep the other in play, even if right now there are hurdles to clear before cryptocurrency stands on an equal footing with a fiat currency, if indeed it ever does, or instead drives forward a new financial format that sees cryptos ultimately co-exist peacefully. Whatever the case, the debate around the right regulation for cryptos in our region, and beyond, will endure.

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EXPONENTIAL TECHNOLOGIES IN THE CARIBBEAN LANDSCAPE BY CAMILLE SELVON ABRAHAMS, PROGRAMME LEADER ANIMATION STUDIES, UNIVERSITY OF TRINIDAD AND TOBAGO, CONSULTANT IN DIGITAL AND TRANS-MEDIA, CREATIVE DIRECTOR ANIMAE CARIBE ANIMATION FESTIVAL

ano technology, artificial intelligence, augmented reality, block chain technology, robotics and 3D printing are all ‘relatively’ new concepts, and all certainly on the educational agenda in global learning spaces. Unfortunately, not so in the Caribbean. Though still relevant we continue to have in our vocabulary outmoded terminologies like digital media, IT, digital technology. These new technologies are not even on the tongues of the education leaders. We are still debating if the Queens English and penmanship should be high on the agenda in the Caribbean classroom. Holistically all of this makes for a well-rounded Caribbean citizen, but if we don’t update our vocabulary and our curriculum we are going to be progressing to outdated systems only to have to catch up again once the bureaucracy gets us to that point. Exponential technologies are those which are shaping our industries in a rapid accelerated manner which, in turn, are creating major impact in our lives. Not only is this allowing rapid solutions to modern day challenges, it is also creating solutions that are becoming cheaper and more accessible to the public.

LET’S FAIL TODAY

This shift can only happen if we create the learning spaces for students to experiment, innovate, test, pitch, make mistakes, fix the mistakes and take risks. These must also be articulated in an environment that encourages risk, without admonishment for making the mistake. In other words, students should not get an ‘F’ for failing.

BREAK DOWN THESE WOODEN WALLS

These learning space must also be uniquely outfitted for such experimentation to take place. This means serious, hard cash investment in education which brings modernity to the classroom. There is a romanticized ideal of Caribbean spaces which embraces post colonialism in architecture and design. These unfortunately do not fit well with modern tools and spaces. So, working around that cultural shift may mean stepping out of our sense of self. However, if we are to exist in the 21st century we have to shed those old outdated ideals. This investment must be seen as a critical component of our future and not just cosmetic.

Pilar Manchon, Director of Cognitive Interfaces at Amazon, delivering her keynote speech in 2018: “Making new technology interfaces more human—how far can we go with consumer applications of A.I.?”

EVEN HOW WE SIT

For too long we have worked with the layout of the old traditional classrooms. Teacher’s desk, students seated theatre-style, whiteboard, with the occasional projector. Teacher in front of the class lecturing to students. We need to break that up as the dynamics of the teacherstudent relationship are changing. Managing that exchange is critical. A somewhat awkward realisation but, if managed and approached in a pragmatic way, it can make the learning experience for all extremely beneficial and effective in the classroom.

THE EXPONENTIAL CHALLENGE

One in a series of articles focused on emerging technologies to be published by the Tech Beach Retreat Community, ahead of its next summit, Nov 29-Dec 1 in Montego Bay, Jamaica.

The Saint Lucia Government Gazette Company Registration Name: Caribbean Islands Limes Ltd. Description: Entertainment Directors: Marva Paul

So how do we catch up with these exponential technologies out here in the Caribbean? I suggest that firstly we start the conversation in the classroom. Add these new terminologies to the vocabulary. Even though we may not be able to delve into the technology immediately, by making students aware of the magic of the future this may challenge their thinking and encourage innovation. We are proudly guided by an astutely selected international advisory board from all sectors of the global industry. Our UTT BFA in Digital Media Art is fortunate to have the support of the University and a staff prepared to take the leap. Located in a state-of-the-art campus and working hand in hand with industry, this is all the ingredients needed to challenge traditional methodologies. Lastly, if we are to go by the understanding of exponential technology then that in itself can allow us to take the risk and innovate more in order to get in alignment with our international counterparts. This is a game changer.

Date Incorporated: 21-Aug-18

The Bachelor of Fine Art Degree in Digital Media Arts is starting at the University of Trinidad and Tobago.

Date Incorporated: 24-Aug-18

Chamber: Brickstone Law Chambers, Saint Lucia Name: Ri-Mar Royalty Caribbean Inc. Description: Marketing and distribution Directors: Riyad Mohammed Date Incorporated: 22-Aug-18 Chamber: Carlton Amsterdam Chambers, Saint Lucia Name: Cab Holdings Ltd. Description: Property holding Directors: Tricia Bristol Date Incorporated: 22-Aug-18 Chamber: Colonial Chambers, Saint Lucia Name: Caribbean Security Softwares Inc. Description: Software development Directors: Paul Ernest; Alena Ernest Date Incorporated: 22-Aug-18 Chamber: Veronica Barnard Chambers, Saint Lucia Name: Barga Investment Ltd. Description: Property holding Directors: Tyler St. Brice-Cazaubon Chamber: Peter I. Foster & Associates Chambers, Saint Lucia

WORLD

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US RECALLS AMBASSADORS OVER RECOGNITION OF CHINA Washington seeks consultations over moves to break diplomatic relations with Taiwan BY JUDE WEBBER, FT CORRESPONDENT IN MEXICO CITY

A guard shuts the gate of the Taiwanese embassy in San Salvador. El Salvador has ditched Taiwan to establish diplomatic relations with China © AFP

he US has recalled the heads of its missions to the Dominican Republic, El Salvador and Panama for consultations over decisions by governments in those countries to break diplomatic relations with Taiwan and switch to China instead. The state department said the US ambassadors to the Dominican Republic and El Salvador and the chargé d’affaires in Panama had been summoned back to Washington for talks, even though the US itself recognises Beijing. “Our three chiefs of mission will meet with US government leaders to discuss ways in which the United States can support strong, independent, democratic institutions and economies throughout Central America and the Caribbean,” a spokeswoman said. Panama set the ball rolling in the region in June last year when it severed ties with Taiwan in favour of China. The Dominican Republic followed suit in May this year and El Salvador made the switch last month. Taiwan now has formal diplomatic ties with just 17 countries. In the most recent country to switch sides, El Salvador, the decision raised widespread suspicions that the move was in part electorally motivated, said Johnny Wright, an opposition legislator. Aid from socialist ally Venezuela has dried up and “official sources in Taiwan have claimed that the government of El Salvador sought financing for the [February 2019 presidential election] campaign”, he said. El Salvador’s switch came after its government “repeatedly demanded large amounts of funds from Taiwan” for a port development that had “tremendous debt risks for both Taiwan and El Salvador”, Taiwan’s foreign minister Joseph Wu said in August. China denied the claims. In Mexico, there has been speculation that China could

be interested in investing in infrastructure projects to be launched by presidentelect Andrés Manuel López Obrador, who takes office on December 1. He is planning a trans-isthmus rail route and a train from Cancún to the Maya temple Palenque, both of which have been seen as potential targets for Chinese investment. The move comes amid a broader push by Beijing to increase pressure on Taiwan since the Democratic Progressive party led by Tsai Ing-wen replaced the more China-friendly Kuomintang in 2016. Beijing has frozen official communication with Taipei, increased military activity near Taiwan-controlled territory and has worked to block the island’s officials from international forums since the new government came to power. After China was admitted to the United Nations in 1971, most countries switched recognition from Taiwan to Beijing. But the two sides have competed for allies — typically through financial measures — and Taipei’s remaining partners are mostly small countries in the Pacific, Latin America and the Caribbean. A group of bipartisan US senators this week introduced new legislation aimed at supporting diplomatic recognition and strengthening unofficial ties with Taiwan, in another sign of American unease with China’s burgeoning international influence. The law would authorise the state department to downgrade US relations with any government that takes adverse actions against Taiwan, including suspending foreign aid and military spending. It was introduced by Republican senators Marco Rubio and Cory Gardner and Democratic senators Ed Markey and Bob Menendez. “China’s insidious agenda to isolate Taiwan cannot go unanswered,” Mr Rubio said. Additional reporting by Edward White in Taipei

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NEWS RELEASE

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IDB TO JOIN NEW CARIBBEAN CLIMATE-SMART ACCELERATOR TO FACILITATE $1BN OF INVESTMENTS

Backed by 26 Caribbean governments and the private sector, the accelerator will fast-track investments which support climate action and economic growth

he Inter-American Development Bank has announced that it will partner with the Caribbean Climate-Smart Accelerator to programme and implement the additional $1 billion in funds that it pledged for climate smartinvestments across the Caribbean region at the Paris One Planet summit on December 12, 2017. This additional funding will build on an existing portfolio of over $200 million for work across the Caribbean region either directly, or through the Caribbean Development Bank. The idea is to support innovative solutions focusing on low carbon emissions, sustainable infrastructure and energy efficiency projects. During the next three years the IDB will provide $3 million as start-up funds to the Accelerator for the implementation of the

A man rides his horse on a flooded street in the aftermath of Hurricane Maria in San Juan, Puerto Rico on Sept. 22, 2017

Caribbean Climate-Smart initiative, with the first $1.5 million available this year. The Caribbean ClimateSmart Accelerator (https://www. caribbeanaccelerator.org/) is an entrepreneurial engine that catalyses and fast-tracks priority initiatives towards a “climate-smart” zone, delivering resilience, social development and broad-based economic growth for the Caribbean. Over the next five years, the Accelerator will do so by identifying and uniting commitments to building a more sustainable and resilient future for Caribbean nations through collaboration between national governments, regional and international institutions as well as public and private sector organisations. Nearly thirty Caribbean government heads and some of the largest global companies, financial institutions, and foundations have joined the Accelerator in response to catastrophic damage caused by several major hurricanes during 2017. Forty public and private sector organisations have joined the Accelerator’s wider coalition of partners, including Microsoft, Breakthrough Energy Coalition, Clinton Foundation, GSMA, The Nature Conservancy, Tesla, The Virgin Group, Willis Towers Watson, the World Bank and the Caribbean Development Bank. Given the very real need throughout the Caribbean region for low-cost, blended finance and contingent credit facilities, the IDB will work closely with the Accelerator to further develop catalytic climate risk insurance and resiliency instruments, building on the IDB’s recent commitment

of $500 million to support Barbados, Jamaica, Suriname and The Bahamas with a contingent credit line for immediate budget support in the aftermath of natural disasters. These activities are being complemented by initiatives from the IDB’s Multilateral Investment Fund (MIF). For example, MIF is exploring the financing of vetiver grass as a bio-engineering climate-smart solution to reduce land slippage and soil erosion. A green technology like vetiver grass can reduce environmental and property damage, as an alternative to traditional hardengineered solutions. IDB President Luis Alberto Moreno was joined by Jamaica’s Prime Minister Andrew Holness and Virgin Group Chairman Sir Richard Branson at the August 9 launch event in Kingston, Jamaica. IDB President Moreno stated: “The IDB Group reaffirms its commitment to the Caribbean and will work with leaders of the region to improve lives by creating climate-smart and vibrant economies, where people are safe, productive, and happy. “Through this Climate-Smart Accelerator, in addition to offering new affordable financing, we will use the IDB’s extensive regional experience and presence on the ground to work closely with the people of the region to design their Caribbean of the future, today.”

ABOUT THE IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of longterm financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

Nearly thirty Caribbean government heads and some of the largest global companies, financial institutions, and foundations have joined the Accelerator in response to catastrophic damage caused by several major hurricanes during 2017

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