The Country Strategy Paper (CSP) outlines the proposed assistance strategy of the Caribbean Development Bank (CDB) for Belize over the period 2011-15.  Staff assessment of the development challenges confronting Belize were informed by a review of the country’s Medium-term Development Strategy, the National Poverty Elimination Strategy and Action Plan, a number of other sector plans and strategies, discussions with various stakeholders including Government officials, selected private sector bodies, Non-governmental Organisations and the country’s other development partners. 

Given the need to enhance growth as an anchor for poverty reduction, it is proposed that the Bank assists Belize to strengthen the environment and the institutional framework for sustainable growth. Hence, the proposed interventions are designed to contribute to the following outcomes:

• maintenance of a stable macroeconomic environment;
• improved public financial management; and
• enhanced environment for output growth.

Recognising that growth by itself may not be sufficient to reduce poverty, it is proposed that the Bank assist Belize to close the growth-poverty gap by improving the opportunities for persons to escape poverty, increase inclusivity and reduce vulnerability.  Thus, other interventions proposed are designed to contribute to the following additional outcomes:

• improved quality and access to education and training;
• enhanced social and community development; and
• improved environmental sustainability.

Among the specific interventions, CDB proposes a second Policy-Based Loan to help Belize maintain a stable macroeconomic environment.  This will provide financing in the face of risks related to the volatility of Government earnings and grant receipts, as well as expenditure pressures stemming from the stepped-up interest payments on the “super-bond”.  There is also the need to maintain critical social expenditure and undertake other expenditure necessary to reduce poverty and address crime and security.