IDB Unveils Bold New Support Package for Caribbean at Brazil-CARICOM Summit

The Inter-American Development Bank (IDB) unveiled a sweeping suite of initiatives at the historic Brazil-CARICOM Summit held at the Itamaraty Palace in Brasília. With the participation of heads of state and government from Brazil and the 15-member Caribbean Community (CARICOM), the IDB reaffirmed its commitment to deepening regional integration, enhancing resilience, and accelerating development in the Caribbean.

IDB President Ilan Goldfajn emphasized that the Caribbean’s partnership with Brazil reflects a broader confidence in multilateralism and shared progress.

“The IDB is fully committed to the development of Caribbean countries. Together with leaders from the region and Brazil, we are working to strengthen resilience and security and generate opportunities throughout the region.”

At the heart of the announcements was the launch of a Caribbean Multi-Donor Trust Fund, expanded support for Haiti, and a groundbreaking regional debt-for-resilience swap mechanism.

ONE Caribbean Program: A Platform for Collective Action

One of the IDB’s cornerstone strategies is the ONE Caribbean platform—a framework designed to drive climate resilience, disaster risk management, citizen security, food security, and private sector development.

The IDB has already initiated 11 regional programs under this umbrella, including the ONE SAFE Caribbean initiative, which is dedicated to climate and human security, and a regional coordination mechanism for streamlined project preparation.

Now, the platform is being elevated with the creation of a Caribbean Multi-Donor Fund, an instrument designed to pool international support for regional priorities.

Caribbean Multi-Donor Trust Fund: A Call for Collective Investment

The new Caribbean Multi-Donor Trust Fund, announced at the summit, launches with $13 million in initial contributions from Canada and the United Kingdom. This fund will operate under the ONE Caribbean framework and will be central in enabling:

• Disaster resilience and preparedness

• Public safety and regional stability

• Inclusive economic development through private sector engagement

• Food security and agricultural modernization

The IDB is actively inviting other donor countries and international institutions—including Brazil—to join the initiative and strengthen the Caribbean’s capacity to address cross-border challenges.

Haiti: A Lifeline of Support and Recovery

Recognizing the deep humanitarian and economic crises facing Haiti, the IDB announced an unprecedented R$1.6 billion ($283 million) grant commitment to support key infrastructure and social development priorities.

Key Investments:

• School meal programs to improve student health and attendance

• Hospital renovations to rebuild essential healthcare services

• Basic infrastructure projects for underserved communities

These efforts form part of the 2025–2030 Haiti Recovery Plan, a comprehensive blueprint for stabilization and growth outside the embattled capital of Port-au-Prince. The plan is being crafted in close collaboration with Haitian authorities, the United Nations, the European Union, and the World Bank, with the IDB taking the lead in coordination.

In a novel move, the IDB will also explore private sector financing projects to generate local employment and economic activity in rural and regional centers.

A First-of-Its-Kind: Multi-Country Debt-for-Resilience Swap

One of the most ambitious announcements at the summit was the IDB’s plan to coordinate a standardized debt-for-resilience swap framework, following a request by Barbados Prime Minister Mia Mottley, the current CARICOM Chair.

This initiative is designed to:

• Unlock fiscal space in debt-burdened Caribbean nations

• Create transparent and efficient pathways for debt relief

• Channel resulting savings toward public investments in resilience, such as renewable energy, coastal protection, and health systems

While debt-for-nature or debt-for-climate swaps have been implemented in isolated cases, the IDB’s new plan seeks to scale up these instruments regionally—a crucial advancement for small island developing states (SIDS) often excluded from international financial reforms due to their size and vulnerability.

The standardized approach will streamline negotiations, reduce transaction costs, and attract greater multilateral and private sector interest, allowing for broader, more impactful outcomes.

Brazil’s Emerging Role in Caribbean Integration

This summit also marked Brazil’s renewed engagement with the Caribbean, positioning itself as a strategic development partner and climate ally.

Through its collaboration with the IDB and CARICOM, Brazil is expected to:

• Support regional infrastructure projects

• Participate in multilateral financing mechanisms

• Offer technical assistance in agriculture, renewable energy, and education

The IDB’s call to Brazil to contribute to the Multi-Donor Fund underscores a growing alliance aimed at transforming the South Atlantic into a zone of sustainable development, trade, and peace.

Looking Forward: A New Era of Resilience and Unity

The IDB’s commitments at the Brazil-CARICOM Summit reflect a transformative moment for Caribbean development cooperation. By offering innovative financial tools, fostering inclusive regional platforms, and deepening its partnership with Brazil, the IDB is enabling the Caribbean to meet today’s challenges with boldness and foresight.

With strategic support for Haiti’s recovery, a focus on regional resilience, and mechanisms to mobilize donor capital, these initiatives present a roadmap for a more integrated, sustainable, and secure Caribbean future.