“This regional strategy was developed in close consultation with the OECS countries and is directly aligned with their short- and medium-term development priorities,” said Yvonne Tsikata, World Bank Director for the Caribbean. “It is framed by the crippling effects of the global and regional crises, the need to protect social gains, and the OECS' continued focus on deepening regional integration and cooperation.”

Owing to their small size and populations, the OECS countries face particular challenges in terms of infrastructure development and global market access. Their location also makes them vulnerable to periodic natural disasters and climate change impacts, such as rising sea levels. While they enjoy the benefits of very open economies, they are at the same time vulnerable to external policy changes, such as the removal of trade preferences and the still unfolding impact of the global financial crisis.

OECS countries have achieved clear gains in social progress and enjoy middle income status, but several countries face the challenges of youth unemployment, crime and public insecurity, as well as weak institutions. In addition, authorities are making a renewed effort to improve economic management, reduce public debt and improve the business environment.

The strategy focuses on two pillars:

1. Building resilience by promoting fiscal and debt sustainability, investing in peopleparticularly social safety nets, education and healthand developing climate resilience.

· Promoting fiscal and debt sustainability by strengthening debt management, enhancing efficiency and transparency of public spending, and improving service delivery across the region.

· Investing in people by better targeting social safety net systems, increasing the proportion of qualified teachers and the number of skilled post-secondary graduates, as well as improving data about the region's chronic non-communicable diseases.

· Developing climate resilience through improved understanding of the vulnerability of critical infrastructure, a reduction in the number of people at high risk of landslides in St. Lucia, improved management of protected areas, and the establishment of financing mechanisms for critical ecosystems.

2. Enhancing competitiveness and stimulating sustainable growth by improving the countries' domestic financial sectors, which includes improving the regulatory environment and supervisory frameworks for financial institutions.

The Bank's program will be complemented by support from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, through its financing and advisory services, focused on the following areas: improving investment climate, financial market development, energy and access to finance, infrastructure, sustainable tourism and emerging sectors in health, education and agribusiness.