A $15m initiative, to be implemented through the International Monetary Fund, will run for the next four fiscal years. A third of the funding will be allocated to Jamaica with the remainder being shared between eastern Caribbean countries.

The project will provide short-, medium- and long-term advice and training to help Caribbean governments respond to difficult financial situations, such as recessions. In particular it will help them improve their cash planning and cash-management systems, manage their debt effectively and improve macro-fiscal management.

It will also assist Caribbean governments in modernising their legal and institutional frameworks for budget and treasury management, improve revenue administration, update tax laws and widen tax bases, and strengthen audit capacity.

Announcing the funding on August 2, Canadian finance minister Joe Oliver said: ‘I am proud that Canada promotes solid public financial management and helps stimulate economic prosperity, thus reducing poverty in the Caribbean.’

Many Caribbean economies – especially those that rely on tourism – have not yet recovered from the global crisis, he noted.

‘Public debt averages 90% of gross domestic product in countries that depend on tourism.'

International development minister Christian Paradis added: ‘Canada is committed to helping strengthen the capacity of Caribbean countries to create and maintain the conditions for a dynamic, transparent and rules-based commercial and investment environment, which will help the region prosper going forward.’