Netherlands - Summary of the external public debt

This Country Assistance Strategy (CAS) for the Eastern Caribbean States, covers the period FY02-06, and, outlines the sub-region's key features, and recent trends in development priorities. In line with the previous CAS (May 1995), it also includes discussions on socioeconomic developments in Barbados, given its influence in the sub-region's development outcomes. Although Barbados graduated from Bank lending in 1993, a loan is being proposed - on an exceptional basis - to enable its full participation in an HIV/AIDS prevention, and care program in the Caribbean. During this period, the main objective of the Bank's assistance is poverty reduction, in collaboration with sub-regional organizations, and external partners. This assistance should reduce income insecurity at the aggregate, and household levels, and, build human, and institutional capacity. Sustainable private sector-led economic diversification will be promoted, creating a supportive environment for emerging industries, to include lowered infrastructure costs, and improved management of natural resources. Assistance will also be provided to governments for social basic needs, namely for the education, and health sectors - not only for HIV/AIDS control - but for broader public sector functioning. The CAS objectives are consistent with the regional development framework, drawn by the Organization of Eastern Caribbean States (OECS); thus, lending will be allocated based on country policy, and portfolio performance, and, in terms of lending instruments, cost-effectiveness points at grouping operations under a sub-regional umbrella, through new flexible instruments, and the Adaptable Program Loan, and Learning Innovation Loan instruments, while the International Finance Corporation will continue private sector support through regional initiatives. However, external shocks, and fiscal constraints are risks to be considered, though prudent public sector finance, and fiscal control should off-set those risks.