Barbados is poised to become the smallest full member of the Development Bank of Latin America and the Caribbean (CAF), unlocking access to over US$18 billion (approximately BDS$36 billion) in financing for government projects, private sector ventures, and individuals.
Finance and Economic Affairs Minister Ryan Straughn introduced legislation on Tuesday to formalize the island’s upgraded status, piloting the Development Bank of Latin America and the Caribbean Bill, which transitions Barbados from Series C to Series A membership. This elevation grants the country greater voting power in CAF’s governance and opens the door to expanded funding opportunities.
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Headquartered in Caracas, Venezuela, CAF — formerly known as the Andean Development Corporation (Corporación Andina de Fomento) — is a regional development bank owned by its member nations and financial institutions. The institution supports sustainable growth, regional integration, and social inclusion throughout Latin America and the Caribbean.
To secure full membership, Barbados will contribute just over US$1 million (BDS$2 million) in dues. The new legislation repeals existing provisions to align with the updated membership framework.
Minister Straughn explained that joining CAF as a full member offers Barbados greater flexibility to access concessional loans, particularly as other international financial institutions, such as the World Bank, shift their focus in line with evolving U.S. policy positions.
He told Parliament: “We received financing from the World Bank initially because of COVID. Then, in 2021, as climate impacts worsened, Barbados successfully made the case that middle-income countries like ours, due to our vulnerability, should have access to development financing. CAF now provides us with a more stable and equitable avenue to continue this access.”
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Unlike many global lenders where non-borrowing members wield significant influence, CAF is primarily governed by borrowing countries and operates in their collective interest. Straughn compared the structure to a cooperative system: “It’s almost like a credit union for Latin America and the Caribbean. When you put your money in, you own a piece of the action.”
He emphasized that maintaining access to concessional financing remains crucial for small island developing states, especially when external shocks—such as pandemics or climate events—create crises “not of our making.”
CAF’s financing portfolio includes concessional loans, grants, and technical assistance for infrastructure, energy, water, transport, and climate resilience projects. Through its new full membership, Barbados aims to strengthen its financial resilience and deepen partnerships that advance sustainable, inclusive development across the region.
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