May_BVC

10 11 OPENING LINES ECLAC has already formed a multi-organization- al task force to move ahead with the proposal. Comprised of representatives from Antigua and Barbuda, Saint Lucia, and St. Vincent and the Grenadines, the task force has already met twice, in November 2017 and February 2018. However, even as the Caribbean continues to grapple with its huge debt crisis, the subregion finds itself facing a new economic and financial threat. Commonly known as ‘de-risking’, this latest chal- lenge consists in the loss of correspondent banking services and correspondent banking relationships. Prime Minister of Antigua, Gaston Browne, fur- ther highlighted the intrinsic challenges caused by de-risking to Caribbean economies. In particular, Browne noted that,“The most effective mechanism to fight anti-money laundering and countering financing of terrorism is full global cooperation among all states, not de-risking.” Recognizing the need for urgent action, Coor- dinator of the Economic Development Unit at ECLAC Caribbean, Sheldon McLean, presented the main short and long-term recommenda- tions emerging from ECLAC’s latest study on the de-risking challenge. “A disruption in CBR pre- cipitates a financial shock which potentially can destabilize affected economies,” McLean stated. In addition, through panel presentations and dialogue, the CDR considered other major issues facing the subregion, including opportunities for financing green investment for resilience building and structural transformation, and the need to promote fiscal responsibility and financial man- agement through for the use of public expendi- ture reviews (PER). Held every two years, the CDR provides a space for intellectual exchange and suggestions, with a view to identifying workable solutions to address the vulnerabilities of Caribbean small island de- veloping states (SIDS).