Opportunities in the blue economy for post-COVID reactivation in the Caribbean

The Caribbean islands traditionally depend on tourism and fishing as primary economic drivers for income and jobs creation in rural areas where other industries have little or no reach. It is estimated that in 2019, the fishing sector provided stable employment to around 350,000 people in 17 Caribbean countries, generating production valued at over USD 500 million.

The impact of COVID-19 on the Caribbean has had direct effects on the fishing and tourism sectors, reducing productivity, value chains integration, and, consequently, the capacity of these industries to induce jobs and generate income.

However, it is relevant to recognize that, before the pandemic, the economic activity associated with oceans in the Caribbean was already showing signals of decline, with a notable reduction in fish stocks and fishing fleets.

According to the Caribbean Regional Fisheries Mechanism (CRFM), in 2019, fish production in the Caribbean region had decreased by 40 percent, with a record low in ten years. The FAO has classified fisheries resources in the Caribbean as the most overexploited in the world, with 55 percent of overexploited commercial fishery populations.

The current performance of the economy of the Caribbean oceans is also the result of a combination of aspects that require attention from green funding, which is a call to increase its contributions to the blue economy.

Among the underlying causes of the current scenario, the following stand out: (i) difficulty in promoting regional approaches to conservation and provision; (ii) difficulty in complying with existing policies and regulatory frameworks, at the national level and in international waters; (iii) a lack of resources for investment in R&D, which allows for adding value and generating more sophisticated services; and (iv) difficulty in understanding and acting proactively in the management of marine-coastal ecosystems.

Concerted action to address these critical factors could strengthen the comparative advantages of the region, preparing it to better face the challenge of weakened ecosystems and global warming, as well as to promote a new generation of services and productive clusters associated with the blue economy, highlighting: (a) food security and health care by investing in bioeconomy / biotrade; (b) a sustainable ecotourism activity managed from an integrated marine-coastal territorial approach; (c) clean and renewable energy through technology development and  management of water and geothermal resources, leveraging on climate financing opportunities with applying blue bonds and blue carbon principles.

CAF has been developing integral approaches to the blue economy since 2016, generating relevant communication channels with Caribbean countries and combining components to boost diversification, sustainability, and resilience.

• The first is the systemic (territorial) approach, which examines the value of marine and coastal systems in providing benefits and services. This approach recognizes, for example, that fish stocks reflect a healthy ecosystem and that vital stocks recovery implies sustainable ecosystem management. The 'Blue Economy and Sustainable Fishing in the Caribbean' project proposes this approach. This regional initiative is the result of CAF's collaboration with Belize, Barbados, Guyana, Jamaica, Panama, and Saint Lucia.

• The second is the value chain approach, which focuses on the sustainable use of biodiversity resources regarding comparative advantages, market development, and fair and equitable distribution of benefits. At CAF, we have vital biocommerce experience, which the Caribbean applies in the value chains of fishing, aquaculture, and tourism.

• The third approach is adaptive management, which recognizes shifting environmental and climate conditions. It also acknowledges that port and coastal infrastructure interventions rely on the natural ecosystem's resilience during regeneration efforts. CAF has aided coastal development in Tobago through this approach, introducing this perspective to coastal recovery analysis and efforts. 

COVID-19 has revealed marine resources' vulnerability worldwide, including in the Caribbean. However, we have also seen hopeful signs that marine life can recover and repopulate spaces once considered lost when offered the conditions and time to do so.

The challenge coming ahead for post-COVID 19 recovery is crystal clear, it is fundamental to reconcile and truly connect economic growth, with the regeneration of marine-coastal ecosystems, recognizing that taking care of the oceans will guarantee, without a doubt, long-term economic competitiveness and prosperity for all.