Multilateral Aid Review summary - The Caribbean Development Bank (CDB)

CDB is a regional development bank that provides concessional loans and grants across the Caribbean. The bank promotes economic growth and inclusive social development through education, market infrastructure and regional integration.  Commitments in 2009 were $151m ($298m in 2008). It serves some small island states and UK overseas territories that do not have access to finance from other multilateral development banks.

	comment
Contribution to UK development objectives	Weak
	+	Providing development finance for Commonwealth countries and UK Overseas Territories with limited access to other funding institutions.
	_	Relatively small; limited expertise in areas like climate change.
	_	Apart from Haiti, all members are middle income.
	+	Increasing focus on results and can demonstrate outputs.
	_	Still too early to identify success of recent results focus; large number of small scale projects makes aggregation and reporting of impact difficult.
	_	Only fragile state in the region is Haiti.  CDB works with NGOs there but does not have a permanent office.
	_	Good policy on gender equality, but limited impact on operations.
	+	Good work on disaster risk reduction for hurricanes and attempts to make projects climate proof.
Organisational strengths	Satisfactory
	+	Administrative budgets have been controlled.
	_	Procurement limited to member countries.
	_	No evidence of emphasis on securing cost effectiveness in the design of development projects.
	+	Strong partnerships with governments; ability to work with other banks and donors, and willingness to accept expertise from others (IBRD, IADB).
	+	Periodic and independent evaluations are used to improve future performance.
	+	Process for senior management recruitment is transparent and merit based.
	_	Strategies and results frameworks need to be improved.
	_	Weaknesses in HR policies and practices.
	_	Little proactive reform - tends to follow pressure from shareholders.
	+	Rules based allocation process, multi-year commitments possible; provides policy based loans (budget support).
Capacity for positive change	Uncertain
	+	Leadership keen to work with shareholders and other banks to improve systems and operations.
	_	Ongoing reforms are improving the bank’s effectiveness but more is needed, linked to clear strategies, leadership and results culture.