Barbados Prime Minister Mia Mottley is urging Caribbean nations to embrace CARICOM bonds as a new tool for regional development, offering citizens a direct stake in building a stronger, more resilient community. Speaking at the 49th CARICOM Heads of Government Meeting in Montego Bay, St. James, Mottley said the bonds could be offered at competitive rates, appealing to citizens while still remaining below the cost of lending from international capital markets.
The initiative is intended to address the chronic underfunding of the CARICOM Development Fund, which provides support to disadvantaged countries and sectors across the region. However, Mottley acknowledged that even if all member states contributed, the fund would still fall short of what is needed to adequately finance the needs of disadvantaged economies, sectors, and regions—an inherent consequence of a single market and economy.
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To overcome this, Mottley called for the leveraging of regional liquidity and the creation of international guarantee mechanisms to empower Caribbean people to finance their own development. She emphasized that the region must move beyond dependency and find creative ways to mobilize its resources.
Highlighting Barbados’ recent innovations, Mottley shared her country’s success with regional debt swaps, which allow for the financing of major projects without increasing national debt. Over the past six months, Barbados has completed two such swaps: one that directed funds into marine conservation through the Marine Sustainability Trust, and another that supported climate adaptation by financing a new South Coast sewage treatment plant. Both projects were achieved without adding to the national debt.
She also announced plans for a third debt swap, this time focused on social sector investments, and invited other CARICOM nations to join the effort. Her vision is to see the Caribbean become the first region in the world to establish a regional debt swap directorate.
Mottley further called for the inclusion of natural disaster and pandemic clauses in financial instruments, referencing Barbados’ recent issuance of US$500 million in bonds that allow for a two-year pause in principal and interest payments in the event of a qualifying natural disaster. This innovation, she argued, is critical for building financial resilience in a region highly vulnerable to climate shocks.
Citing recent catastrophic flooding in Texas as an example, Mottley warned that no country is immune to the climate crisis. She stressed the urgency of climate adaptation and resilience and challenged regional leaders to act boldly and decisively.
“We must find the boldness to move into action, because without that our region will not be ready for the defense of small states,” she said.
