Caribbean region launch Development Bank for resilient prosperity

The Development Bank for Resilient Property (DBRP), launched on Friday, represents a bold step forward in addressing the financial challenges faced by Small Island Developing States (SIDS). Dr. Hyginus “Gene” Leon, the bank’s executive director, emphasized that the institution challenges the status quo and signals a commitment to no longer accept “half-measures” in confronting global crises.

The idea for such a financial institution was first introduced at the SIDS Inter-Regional Conference in Cabo Verde in August 2023. The concept was designed to provide a platform for SIDS to have a stronger voice, mobilize financing for resilient infrastructure, and tackle regional economic disparities.

This initiative gained further momentum during the SIDS4 Conference in Antigua and Barbuda in May 2024, where the need for the DBRP was underscored, especially considering the long-standing difficulties SIDS face in accessing affordable financing and managing unsustainable debt. The DBRP aims to directly address these issues and support the development of more resilient economies and infrastructure in these vulnerable states.

Leon, the former president of the Barbados-based Caribbean Development Bank (CDB) told the event co-hosted by the University of the West Indies (The UWI) and the PVBLIC Foundation that the launch demands bold action and calls on all stakeholders, including governments, the private sector, academia, and civil society “to rise to the challenge and reshape how development works for people and the planet.

The United States based Public Foundation is a public charity that creates and manages programs and partnerships to advance social impact and sustainability around the world.

“The current system is failing us. Climate change is accelerating, inequality is growing, and outdated financial models lock countries, particularly Small Island Developing States (SIDS), in cycles of debt and despair,” said the St Lucia-born economist. He said for decades, global development has been measured by a single flawed metric, namely the gross domestic product (GDP) but that “GDP doesn’t count what matters most.

“It doesn’t measure the destruction of natural resources, the costs of inequality, or the fragility of our ecosystems. It’s time to admit that this model is broken,” he said, adding that the DBRP is the bold solution that is needed.

“It is not just another development bank, it’s a bank designed for this moment. It prioritizes people and the planet, embedding equity, sustainability, and resilience into its DNA,” he said, noting that the DBRP takes a systems approach because the challenges are deeply interconnected.

Leon, a former senior International Monetary Fund (IMF) official, said that poverty, inequality, and ecological collapse aren’t separate issues, noting “they are symptoms of a system in crisis.

“We cannot fix one without addressing the others. That’s why the DBRP is grounded in a simple but transformative principle: to create lasting stability, we must balance economic, social, and environmental priorities.”

He said this  approach ensures that no single aspect of development comes at the expense of others.

“It’s about allocating resources equitably, economic, valuing human rights, social, and embracing sustainability, ecology, as the foundation of progress. That is, maximize the productive capacity function subject to attaining ecological stability.

“Let’s be clear: the DBRP cannot do this alone. Partnership is the cornerstone of this vision – a new PPP -partnership for prosperity and planet- in finance, in productivity enhancing activities”.

Leon said that the private sector is critical to driving innovation and mobilizing resources and that by collaborating with business leaders, such as those engaged in the Family Offices for Sustainable Development, bridges are being built between purpose and profit.

He said academia is equally essential as he praised the UWI “for its bold statement of partnership and for agreeing to host the DBRP’s launch.

“This is a testament to UWI’s unwavering commitment to the Caribbean and SIDS globally. For decades, UWI has been the intellectual backbone of the region, shaping policies, nurturing leaders, and driving innovative solutions. By partnering with the DBRP, UWI underscores the vital role academia plays in changing systems that have failed SIDS, ensuring that these nations have a voice and the tools to secure their future.

“Together, the DBRP and UWI are sending a powerful message: that resilience, sustainability, and equity are not just aspirations—they are achievable realities when we work in partnership,” he said.

The UWI described the bank as a transformative financial entity focused on advancing sustainable climate resilience development across the Caribbean, Pacific Africa, Latin America, and SIDS.

It said the establishment of the DBRP is significant and timely, noting that climate finance has taken center stage at the United Nations Conference of the Parties (COP29) in Azerbaijan, with discussions focusing on supporting climate action and enhancing resilience in developing countries.

The UWI said that the launch highlights the bank’s “innovative approach to addressing critical challenges through partnerships and data-driven finance”.

Leon told the ceremony that the DBRP is not just here to talk about change but to deliver change for sustainable development.

“We will champion the monetization and tokenization of natural assets, create value to natural assets and promote a regenerative economy with ecosystem services in all nine planetary boundaries (to drive sustainable development.

“We will leverage innovative financing tools (propose broadening reserve assets, state contingent instruments that reward performance and manage disaster risks linked to resilience capacity, swaps for ecological sustainability, guarantees to help countries build resilience and break free from cycles of debt”.

He said the bank will also reimagine return by adopting a total cost measure including social and environmental and will align every decision with the principle that development must serve both people and the planet.

“This is a new model for a new era. The moral imperative for change Let me say this plainly: this is not just a financial challenge; this is a moral reckoning.

“How can we accept a world where the richest one per cent captures 63 per cent of all new wealth while hundreds of millions live on less than US$2.15 daily? How can we call ourselves stewards of the Earth when G20 nations, responsible for 75 per cent of global emissions, continue to fall short of their climate commitments?

“This isn’t just about numbers, bout lives, livelihoods, and the legacy we leave for future generations. The DBRP is a declaration that we will not stand by while inequality and environmental degradation threaten the foundations of global stability.

“Today, I am calling on you, not to support the DBRP but to own its mission; embrace joint responsibility. To governments: invest in a future that values resilience over short-term growth.

To the private sector: put your capital and innovation where they matter most. To academia and civil society: hold us accountable and ensure we stay true to this vision.

“The DBRP is not just a bank; it’s a rallying point for those who believe we can do better, with bigger, bolder actions! Let us be clear: incremental change is no longer enough. The time for bold, systemic action is now. Together, we can build a world where resources are shared equitably, ecosystems are protected, and everyone can thrive,” Leon said.