By: Staff Writer
March 11, 2025
The Inter-American Development Bank said in a new report that the Caribbean Sea, though covering less than one percent of the world’s ocean area, contributes significantly to the global ocean economy (14 percent to 27 percent) and accounts for 18 percent of regional GDP. The region’s maritime exclusive economic zone is nearly 4.5 times larger than its land area, supporting over 70 percent of the population living along the coast.”
The report, “Development of Social KPIs for the Financing of a Blue Economy in the Caribbean,” also said: “The Caribbean Sea holds significant economic potential, but further investment is essential for sustainable growth. It is important that this investment is targeted in a way that incentivizes the generation of positive impacts for all and mitigates any potential negative outcomes associated with the sectors that make up the blue economy.
“The blue economy has the potential to improve human well-being across company value chains, areas of influence, and consumers alike. Economic activity in ocean and water-related projects has huge potential to advance human rights-related issues and improve well-being as a whole
“The use of relevant key performance indicators (KPIs) can provide a means for steering investment and action towards a more equitable and sustainable Caribbean Blue Economy.”
The absence of comprehensive impact data makes it difficult to assess whether investments truly contribute to equitable growth and sustainable development. KPIs can guide investment decisions, ensuring they drive positive social outcomes while preventing harm.
This study, conducted by IDB Invest, IDB, together with Finance Earth, aims for foster inclusive economic progress, human well-being, and long-term sustainability for the Caribbean region through the development of Social KPIs.
The report further advocated for inclusive and continuous stakeholder engagement.
The report also noted: “The absence of social indicators has the potential to generate multiple adverse effects. By not measuring their social impact, companies will continue to practice business as usual, unaware of the ramifications.
“There is also a latent risk that there will be no intentionality in changing the social status quo in their area of influence.
“There may be inadequate focus on the creation of quality jobs and working conditions, potentially leading to a lack of job opportunities for local people and unsafe labor practices.”