JAMAICA-UNDP to launch a new DRR program for the Caribbean

KINGSTON, Jamaica, CMC – The United Nations Development Programme (UNDP) is to launch a new Disaster Risk Resilience (DRR) for the Caribbean with estimates showing that from 1980-2020, loss and damage (L&D) as a percentage of gross domestic product (GDP) was the highest in the Caribbean small island developing states (SIDS).

UNDP Resident Representative Dr. Kishan Khoday stated that this was an average of 2.5 percent, compared to 2 percent for the Pacific Small Island Developing States (SIDS), 0.2 percent for the rest of Latin America, and 0.1 percent for Africa.

Speaking at the UNDP’s Hurricane-Ready and Resilient Forum on Loss and Damage for Micro, Small, and Medium Enterprises (MSME), Khoday, the Resident Representative for The Bahamas, Belize, Bermuda, Cayman Islands, Jamaica, and the Turks and Caicos Islands, said the UNDP has been prioritizing support to countries on the loss and damage agenda, “and in that regard we are now open for business in terms of discussing possible new L&D projects in Jamaica, Bahamas and elsewhere in the sub-region.

He said climate damages alone are forecast to increase in the Caribbean from 5 percent of GDP in 2025 to 20 percent by 2100, presenting US$22 billion of annual losses.

“This has implications for key sectors in SIDS economies, such as tourism and agriculture, the former of which could see GDP reduced by 38-47 percent by 2100. A particular concern is the impact on high-risk communities and MSMEs, which are at the base of key sectors and community livelihoods. ”

The UNDP official stated that this vulnerability became more evident with the passage of Hurricane Beryl in 2024, particularly among micro, small, and medium-sized enterprises (MSMEs). He said they constitute 97 percent of all enterprises in Jamaica and 98 percent of all enterprises in The Bahamas.

They contribute 28 percent to Jamaica’s GDP and account for 80 percent of the jobs. These enterprises employ 47 percent of the workforce in the Bahamas and contribute between 20 and 30 percent of the GDP.

Khoday said micro-enterprises, in particular, are tiny and mighty, yet largely informal, and yet a hurricane can easily undermine the power of MSMEs.

“MSMEs are disproportionately vulnerable to hurricane impacts because of their informality, especially in the micro-enterprise sector; size, limited resources, inadequate access to financing, insurance, and disaster preparedness resources.

“MSME operated by women and persons with disabilities contend with added layers of vulnerabilities traced to gender norms, and stereotypes, family responsibilities and inadequate access to capital. There are also nuanced requirements related specifically to the needs of women and persons with disabilities that tend to be overlooked.”

“MSMEs are, simply put, too significant to national economic wellbeing to fail or to sustain lengthy closures after a disaster. We must redouble our efforts to secure their disaster resilience and accelerate their recovery. ”

Khoday said that the UNDP’s 2021 Socio-Economic Impact Assessment of Hurricane Dorian and the COVID-19 Pandemic on MSMEs in The Bahamas, for example, showed that 63 percent of MSMEs were affected, with more than 55 percent permanently closing in Abaco and 11 percent in Grand Bahama.

“We need comprehensive disaster preparedness plans tailored for MSMEs and allocation of resources to enhance their resilience and disaster recovery capabilities. And, by enhancing financial support mechanisms for disaster-impacted MSMEs, including possibly via the new L&D Fund, we can expand relief beyond grants to accessible insurance schemes and public-private partnerships.”

Khoday said that Disaster Risk Resilience and Recovery (DRRR) remains a cornerstone of the UNDP’s offer, and over the years, it has allocated US$100 million annually to these efforts. He stated that this is coupled with an ongoing portfolio of over $4 billion in grants for climate action in more than 140 countries.

He stated that through the UNDP’s current Country Programme in Jamaica, the Bahamas, Bermuda, Cayman, and the Turks and Caicos Islands (TCI), support for climate adaptation, disaster risk reduction, and recovery interventions is a centerpiece.

“Most recently in Jamaica, following last year’s hurricane Beryl, UNDP’s support for the livelihoods recovery of 54 enterprises led by women and persons with disabilities included grants for the restoration of small businesses as well as gender-sensitive climate-smart DRR training.”

He stated that over the years, the UNDP has provided similar support to impacted MSMEs in The Bahamas and the Turks and Caicos Islands.

The post-hurricane Dorian package of interventions in The Bahamas, bolstered by a UNDP grant allocation, supported Resilient Recovery regulatory frameworks and strategies approved by Cabinet; Housing Building and Damage Assessments of more than 4000 structures, Marine Debris studies and cleanups, and cash for work programs targeting the poorest and most impacted residents.

“We also support a climate resilient multipurpose shelter on Abaco in The Bahamas capable of withstanding 200 miles per hour winds. Supported by the government of India and UNDP, this will stand as a model lesson in infrastructural resilience.”

Khoday said he wanted to commend the governments of Jamaica and The Bahamas for their “leadership and dynamism” in developing and sustaining fit-for-purpose national disaster management governance arrangements, as well as the partners in Cayman, Bermuda, and TCI for their examples of resilience in the face of increasingly severe hurricanes in recent years. “Your example models the kind of leadership that is critical for shaping resilient economies, and we look to your leadership in further strengthening support for MSME resilience and recovery.

“To further advance our support, UNDP, UNDRR, UNICEF, and WFP, with the invaluable support of the EU, will soon launch a new DRR program for the Caribbean, with significant region-wide results in focus as well as dedicated country grants of up to US$500,000 for example in Jamaica aimed at capacity development to scale up policy, institutional and financing mechanisms for resilience recovery. Options for embracing loss and damage finance can be a key outcome.

“As Small Island Developing States of the Caribbean, you are well positioned and qualified to model a resilient future where no one is left behind, one that embraces new financing options, technology, and governance solutions.

“Resilience must become our first line of defense against unpredictable weather patterns and how we accelerate recovery from loss and damage,” Khoday said.