Caribbean Development Bank facts for kids

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Caribbean Development Bank

Formation	October 18, 1969; 55 years ago (1969-10-18)
Purpose	Regional development
Headquarters	Wildey, St. Michael, Barbados
Membership	28 (19 borrowing members) (9 non-borrowing members)
President	Daniel Best

The Caribbean Development Bank (CDB) is like a special bank that helps countries in the Caribbean region. It provides money and advice to help these countries grow and improve the lives of their people. The CDB offers loans, grants (money that doesn't need to be paid back), and expert help for social and economic projects.

The idea for the CDB started in 1966. It was officially created on October 18, 1969, when an agreement was signed in Kingston, Jamaica. The bank started its work on January 26, 1970. Its main office is in Wildey, St. Michael, Barbados. In 2018, the CDB also opened an office in Haiti to better support that country.

What is the Caribbean Development Bank?
- How the Bank Started
How the Bank is Organized
How the Bank Manages Money
Who are the Members?
- Member Countries
Working with the United Nations
Improving How the Bank Works
Working with Partners
See also

What is the Caribbean Development Bank?

The Caribbean Development Bank (CDB) was set up to help countries in the Caribbean. It was formed by an agreement between sixteen countries from the Commonwealth of Nations in the Caribbean, plus Canada and the United Kingdom. This agreement was signed in Kingston, Jamaica, on October 18, 1969. The bank officially began its work on January 26, 1970, after 15 of the 18 signing countries agreed to it.

The bank started with about 50 million US dollars. This money came from its founding members. Jamaica, the United Kingdom, and Canada were some of the biggest contributors. The main goal of the CDB was to help the region grow economically and reduce poverty.

How the Bank Started

A famous economist named W. Arthur Lewis had a big vision for economic development in the Caribbean. He believed in helping countries grow in a way that lasts. He became the first president of the Caribbean Development Bank. His leadership was very important in getting the bank started. He made sure the bank managed its money well and focused on important projects. These projects included improving farming and building new roads or buildings.

Lewis also made sure the CDB stayed independent and didn't let politics get in the way of its financial decisions. He wanted the bank to be a key helper for Caribbean countries. Many of these countries found it hard to get money from bigger international banks. He also built strong connections with other big organizations like the Inter-American Development Bank (IDB). These partnerships helped the CDB become a trusted and respected financial helper.

How the Bank is Organized

The CDB has different groups of people who help run it. These groups make sure the bank works well and achieves its goals.

The Board of Governors

The Board of Governors is the highest decision-making group at the CDB. They meet once a year. This board has important powers, such as:

Allowing new countries to join the bank.
Making changes to the bank's rules.
Choosing the Board of Directors and the President.
Changing the bank's total money.
Deciding to close the bank if needed.

Each member country has one governor and one alternate. The British Overseas Territories are counted as one country together.

The Board of Directors

The Board of Directors helps manage the bank's daily work. They are responsible for:

Deciding on the bank's plans and yearly budget.
Watching over how the bank operates.
Choosing a special committee that checks the bank's work.

Like the Board of Governors, each country has one director and one alternate. Directors serve for two years and can be chosen again.

The President

The President is the main leader of the CDB. They are also the head of the Board of Directors. The President's office includes teams for communication, managing risks, and making sure rules are followed.

Countries nominate people to be President. A candidate needs votes from two-thirds of the Board of Governors to be chosen. This also means they need support from 75% of the member countries. The President serves for five years and can be re-elected.

Past Presidents of the CDB

The bank has had seven presidents since it started.

Name	Dates	Nationality
William Arthur Lewis	1970–1973	Saint Lucia
William G. Demas	1974–1988	Trinidad and Tobago
Neville Nicholls	1988–2001	Barbados
Compton Bourne	2001–2011	Guyana
William Warren Smith	2011–2021	Jamaica
Hyginus 'Gene' Leon	2021–2024	Saint Lucia
Daniel Best	2025 - Present	Barbados

Corporate Leadership

Two other important leaders report to the boards. These are the Vice-President for Finance and Corporate Services and the Vice-President for Operations. They help manage the bank's money and its projects.

How the Bank Manages Money

As of December 31, 2021, the CDB had a total of about 3.71 billion US dollars. This money helps the bank provide loans and grants to its member countries.

Big international groups that rate banks give the CDB high scores. This means the CDB is seen as a very reliable and strong bank. For example, it has high ratings from Moody's, Standard & Poor's, and Fitch Ratings.

In 2021, the bank approved 269.5 million US dollars in loans and grants. This money helps fund many important projects across the Caribbean.

Who are the Members?

The CDB has 28 member countries. These members are divided into different groups.

19 are regional borrowing members. These are countries in the Caribbean that can borrow money from the bank.
4 are regional, non-borrowing members. These are countries in the wider Caribbean region that are members but don't borrow money.
5 are non-regional, non-borrowing members. These are countries from outside the Caribbean that are members but don't borrow money.

Member Countries

Map showing CDB members: Regional borrowing members (green), other regional members (blue), and non-regional members (red).

As of 2023, there are nineteen countries that can borrow money and nine that do not.

Regional Borrowing Members

Other Regional Members

Non-Regional Members

Working with the United Nations

The United Nations started a publication called Development Business in 1978. The Caribbean Development Bank helped launch this. Today, Development Business is a main place where big development banks and UN agencies announce their projects and contracts. Many of them must publish their tenders (offers for work) there.

Improving How the Bank Works

In 2012, the CDB's credit rating went down a bit. This happened because some of the countries borrowing money were facing financial challenges. This made people worry about the bank's ability to give out loans.

To fix this, the CDB started using a new system to manage its risks. This system helped the bank improve how it is run and how it handles its money. It made sure there was better oversight and financial stability.

Working with Partners

The CDB works with many different organizations to help the Caribbean. For example, it partners with the Green Climate Fund. This partnership helps promote projects that protect the environment and deal with climate change in the region.

The bank also works closely with partners like the Inter-American Development Bank and the World Bank. These partnerships help the CDB provide special loans and expert advice to its smaller member countries.