{"id":340866,"date":"2025-04-29T08:00:57","date_gmt":"2025-04-29T12:00:57","guid":{"rendered":"https:\/\/dominicanewsonline.com\/news\/?p=340866"},"modified":"2025-04-29T01:02:19","modified_gmt":"2025-04-29T05:02:19","slug":"world-bank-approves-support-to-dominica-for-disaster-resilience","status":"publish","type":"post","link":"https:\/\/dominicanewsonline.com\/news\/homepage\/homepage-carousel\/world-bank-approves-support-to-dominica-for-disaster-resilience\/","title":{"rendered":"World Bank approves support to Dominica for disaster resilience"},"content":{"rendered":"
\"\"
25 days after Hurricane Maria destroyed Dominica in 2017. Photo Credit – Zaimis Olmos<\/figcaption><\/figure>\n

The World Bank’s Board of Executive Directors has given its green light to new financial support aimed at aiding Dominica in bolstering its domestic revenue generation, reinforcing the resilience of its financial sector, and advancing biodiversity preservation and disaster preparedness efforts. This Development Policy Credit amounts to a total of US$ 24 million, shared a World Bank statement on the issue.<\/p>\n

The report goes on to say that Dominica boasts remarkable biodiversity and marine ecosystems that are important for its tourism-reliant economy. Unfortunately, it continues, the nation’s development has been adversely affected by a series of natural disasters and climate-related challenges.<\/p>\n

The impacts of Tropical Storm Erika in 2015 and Hurricane Maria in 2017 were particularly devastating. Although Hurricane Beryl in July 2024 did not wreak havoc on Dominica, it still resulted in infrastructural damage and disrupted the livelihoods of many residents. The World Bank describes these events, along with other external shocks, as having severely strained the country\u2019s public finances and financial system; public debt soared to 118.2 percent of GDP in 2020 and remains elevated at 103 percent in 2024.<\/p>\n

To address these pressing issues, the Dominica Strengthening Fiscal and Climate Resilience Programmatic Development Policy Credit has been established to support the reform initiatives of the government, encompassing a series of policy measures designed to aid economic and climate resilience reforms.<\/p>\n

They include the reform of excise taxes\u2014specific taxes applied to certain goods such as fuel, alcohol, and sugary drinks, which could have detrimental effects on health or the environment. The anticipated results of these reforms include increased revenue, reduced greenhouse gas emissions, and improved public health outcomes. Furthermore, it enhances financial oversight for pivotal institutions, including the Dominica Agricultural Industrial and Development Bank and credit unions, thereby promoting greater stability within the financial sector.<\/p>\n

The second component of this initiative focuses on preserving Dominica’s marine ecosystems and bolstering climate resilience. A significant aspect of this effort is the creation of the world\u2019s first marine protected area designated specifically for sperm whales. Projections indicate that revenue from permits allowing swimming with these whales is expected to increase by 177% by 2027, thereby supporting conservation efforts, local livelihoods, and eco-tourism.<\/p>\n

In addition, the government is implementing a new risk-based asset management system for public buildings aimed at enhancing disaster preparedness and informing investments in resilient infrastructure. By the year 2027, the World Bank anticipates that 40% of public fixed assets will be inventoried and prioritized activities that strengthen Dominica’s ability to manage future climate-related crises.<\/p>\n

This initiative is in alignment with Dominica\u2019s National Resilience Development Strategy 2030 and the Climate Resilience and Recovery Plan for 2020\u20132030. It has been formulated through extensive consultations with national stakeholders and development partners, notably including the Caribbean Development Bank and the International Monetary Fund.<\/p>\n

The financial support is being provided by the International Development Association (IDA), the World Bank Group’s branch dedicated to assisting low-income nations and small island economies. IDA offers grants and low-interest financing to help countries invest in their futures, enhance the quality of life for their citizens, and foster safer, more prosperous communities worldwide.<\/p>\n

Unlike traditional project financing, Development Policy Credits serve as budgetary support for governments that have already instituted mutually agreed-upon policies and reforms. With this approval, funds will be channeled directly to Dominica\u2019s treasury to bolster budgetary goals that align with the country\u2019s resilience strategy.<\/p>\n

\u201cDominica faces the dual challenge of managing high disaster vulnerability and fiscal fragility. This initiative supports strategic policy reforms that are vital for building resilience, generating sustainable revenue, and protecting Dominica\u2019s extraordinary natural heritage<\/i>,\u201d remarked Lilia Burunciuc, World Bank Division Director for the Caribbean.<\/p>\n","protected":false},"excerpt":{"rendered":"The World Bank’s Board of Executive Directors has given its green light to new financial support aimed at aiding Dominica in bolstering its domestic revenue generation, reinforcing the resilience of its financial sector, and advancing biodiversity preservation and disaster preparedness…","protected":false},"author":13,"featured_media":340685,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_cbd_carousel_blocks":"[]","footnotes":""},"categories":[158,235,285,9],"tags":[],"class_list":["post-340866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-disasters","category-homepage-carousel","category-infrastructure","category-news"],"acf":[],"yoast_head":"\nWorld Bank approves support to Dominica for disaster resilience - 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