The Country Diagnostics and Strategy work stream at the OECD Development Centre provides governments and regional organisations with concrete policy advice for the design and implementation of their development strategies. Its work follows a multi-dimensional approach to encompass the multi-dimensionality of development and relies on comprehensive peer exchanges amongst member countries of the OECD Development Centre through the Multi-dimensional Reviews Mutual Learning Group.

The project “OECD support to Organisation of Eastern Caribbean States (OECS) strategy implementation” aims at assisting the OECS region in achieving development through the implementation of the regional development strategy. Since its creation in 1981, the OECS has been at the forefront of the process of regional integration between its independent member states. Building on the existence in the region of a single currency (the Eastern Caribbean dollar) the OECS established an economic union in 2010. Its aims include the free movement of capital, labour and goods. Today, the OECS faces the challenge of finding a new model of development that can carry the region towards sustainable, dynamic and inclusive growth, and that can help it to overcome declining growth rates, persistent unemployment, disparities between its members, the fallout from recurrent extreme weather events, and the impact of the COVID‑19 pandemic. To this end, the OECS designed a joint development strategy for its member countries in 2018. This strategy runs from 2019 to 2028, and is organised around three main pillars. The first of these is Generating Economic Growth, the second is Promoting Human and Social Wellbeing, and the third is the Sustainable Use of Natural Endowments. The OECD Development Centre has supported the OECS in setting priorities for the implementation of its strategy, and in building a framework for implementation and monitoring in order to meet the specific goals that the OECS Development Strategy (ODS) sets out to achieve.

This chapter presents the key findings and recommendations of the Development Strategy Assessment of the Eastern Caribbean. It starts with a brief history of the economic development of the OECS region, describes key trends affecting the member states of the OECS and provides an overview of the OECS Development Strategy. The chapter then presents key strategic priorities for the member states of the OECS. These priorities include investment in renewables, closing the skills gap in the region and enhancing the quality of education, resilience to natural disasters, a sustainable ocean economy hub, digital services, better policy implementation and regional integration.

This chapter discusses key opportunities and constraints falling into the first pillar of the OECS Development Strategy: generating economic growth. Economic opportunities for OECS countries include increasing value-added in the tourism industry; developing sectors that are closely linked to tourism, such as agriculture, fisheries and the so-called orange, or creative, economy; as well as making headway in digital services, facilitated by a reform of the telecommunications sector. Furthermore, cutting red tape, reducing business costs, and establishing a regional competition framework could foster more private investment and boost productivity in region. Supporting the macroeconomic environment by reducing government debt and non-performing loans, is important for stability and strong economic growth in the region.

This chapter discusses key opportunities and constraints falling into the second pillar of the OECS Development Strategy: promoting human and social well-being. Persistently high unemployment rates, sticky levels of poverty and inequality, and the prevalence of crime, in particular among young people, all pose significant challenges in the OECS region. To reduce unemployment, and to provide young people with better opportunities, it is essential to close the skills gap in the region and to improve the quality of education. Better social-protection systems could support those in need and build the bedrock for more flexible labour markets. In addition to better opportunities for young people, reducing high levels of crime requires a stronger focus on crime prevention, as well as strengthening the region’s judicial systems and police forces. Finally, better and more prevention policies would be important to tackle high levels of NCDs in the region.

This chapter discusses key opportunities and constraints falling into the third pillar of the OECS Development Strategy: the sustainable use of natural endowments. The development of renewable energies constitutes a key opportunity and could reduce the cost of energy in the region. This requires strong political will and a strategic vision. Furthermore, there is a need to secure sufficient financial resources and for reform to regulatory frameworks in the energy sector in OECS countries to facilitate private investment in renewable energies. OECS countries’ location and rich ocean biodiversity open opportunities in the sustainable ocean economy. There could be potential opportunity in establishing a regional sustainable ocean economy hub, both for academic research and education. Given OECS countries’ vulnerability to climate disasters, improving their resilience to such disasters should be a key policy priority for the region. Finally, waste management in the OECS region could be improved through increased recycling and better plastic regulations.

This chapter discusses constraints to policy implementation in the OECS region, and how the regional strategy scorecard developed by the OECD Development Centre, OECS Commission and national focal points in OECS member states can support effective policy implementation. In all areas of this report, policy implementation and regulation have surfaced as constraints. The regional strategy scorecard is a tool to support the effective implementation of the OECS Development Strategy (ODS), through a continuous assessment of progress in terms of concrete results. It aims to use measurable targets that OECS member states have committed to to foster commitment to the ambitions of the ODS, tracking progress towards these targets, and holding policy makers accountable for results.