Development Progress | Challenges Ahead | World Bank Assistance | Project Achievements | Contacts DEVELOPMENT PROGRESS Trinidad and Tobago, a twin island State of 1.3 million people, is a country rich in cultural diversity and natural resources. It has one of the highest per capita incomes (US$10,440 in 2005) in Latin American and the Caribbean. The economy is largely based on oil and gas, which currently account for 40% of GDP and 80% of exports but only 5% of employment and the country has become a major financial center in the Caribbean. Trinidad and Tobago is a leader in the Caribbean regional integration effort, including the CARICOM Single Market and Economy (CSME), which went into effect January 1, 2006.  The current administration, resulting from the February 2003 elections and led by Prime Minister Patrick Manning, enjoys a solid parliamentary majority but popular support has been deteriorating due to high crime levels. Governance indicators, as measured by Transparency International as well as the World Bank, have shown deterioration in recent years. The oversight and accountability of the executive is improving but some weaknesses remain. Steps are underway to improve governance and the efficiency of public service delivery. The national media is active and the authorities disseminate a significant part of the policies and outcomes, through the media, brochures and the web. Trinidad and Tobago ranks # 59 on the Transparency International Corruption perception index.
Growth in Trinidad and Tobago has averaged 6 percent per year since 1994, among the highest level in Latin America and the Caribbean region. In 2005, the economy grew by 7 percent, fuelled by high oil prices which also created substantial fiscal and balance of payment surpluses. The government has pursued an expansionary fiscal policy to fund infrastructure, education, social programs, and national security, leading to a deterioration of non-oil fiscal balances. With this effort the authorities aim to improve social indicators, which remain at about regional averages.
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CHALLENGES AHEAD Trinidad and Tobago aims to become a developed country by 2020. The draft of the Vision 2020 paper, prepared through an inclusive process, articulates the five pillars of the strategy to be followed: (1) developing innovative people, (2) governing effectively, (3) enabling competitive business, (4) nurturing a caring society, and (5) investing in sound infrastructure and environment. To achieve the goals set in the Vision 2020, Trinidad and Tobago would need to accelerate the steps now ongoing to diversify the economy. This would require improvements in competitiveness and public service delivery of services. The Social and Economic Policy Framework 2006-2008 defines as medium-term priorities of the government to expand educational opportunities at all levels, improve access to health and housing, strengthen security, and enhance the environment for private investment, while maintaining a stable macroeconomic policy framework. The country’s challenge is to develop a national consensus on how to utilize the abundant revenues from the energy sector to build a solid base for sustainable development. Trinidad and Tobago also needs to continue the process of strengthening and improving the legal and regulatory framework in order to facilitate economic and social transformation. Another challenge relates to the evolution of the political environment, which in recent years has become more ethnic-based, and the rise in domestic violence and kidnappings. To address these issues, the government has adopted plans to strengthen governance and continue ongoing decentralization process, while fostering more inclusive growth. Given the political polarization in the country, it will be important to build and maintain a national consensus on a shared vision and development priorities. back to top
WORLD BANK ASSISTANCE TO TRINIDAD AND TOBAGO
The World Bank’s last Country Assistance Strategy for Trinidad and Tobago covered the years 1999-2009. The current World Bank program with a total commitment of US$50.2 million, of which US$16.9 million is undisbursed, includes: The Postal Service Reform project assists the Government in the privatization of the Postal Service, with the objective of reducing public sector losses while improving the quality and efficiency of the postal service. The HIV/AIDS Prevention and Control Program: The project is funded under the Multi-Country APL for the Caribbean Region, with the following objectives: (i) curbing the spread of HIV/AIDS epidemic; (ii) reducing the morbidity and mortality attributed to HIV/AIDS; (iii) improving the quality of life for persons living with HIV/AIDS; and (iv) developing a sustainable organizational and institutional framework for managing the HIV/AIDS epidemic over the longer term.
Regarding Economic and Sector Work, A Financial Sector Assessment Program by the World Bank and IMF was completed in February 2006. 
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PROJECT ACHIEVEMENTS The Basic Education Project (Loan 3956-TR) was designed to provide a framework of support to enhance the quality of education, to reduce the disparity in the education system and to achieve an effective and efficient management of the education sector. The project improved access to preschool, primary, and secondary education and enhanced the quality of teaching. Six curricular areas were reformed (five were piloted), teachers were trained in these areas, and 474 teachers and principals completed the B.Ed. in Education at the UWI. Library materials and textbooks were purchased and distributed and low-income students received textbooks through the project (in the first phase about 53,000 benefited and in the second phase about 56,600 students benefited). The textbooks are owned by the schools and lent at no charge to low-income children. The project had a significant impact on improving school environment quality and modernizing school facilities (report by construction management firm). School services were significantly upgraded (libraries, computer rooms, sport facilities, concert halls etc). New schools are already fully occupied and refurbished schools were well received by communities. Environmental Management Project
The major objective of the project was to build effective institutional capacity to plan and
implement sound environmental management in Trinidad and Tobago. A second objective was to prepare a National Environmental Action Plan (NEAP), support a priority work program which would strengthen the legal and regulatory framework, and implement measures for improved environmental management consistent with the findings of the NEAP. By the project's closure, the Authority was operating with 38 trained staff (18 more than estimated at appraisal, at which time it was stated that during the project the required number of staff would be ascertained). In the final months of the project government approved a new organizational structure and funds for employment of 34 additional staff (bringing the complement to 72), which reflects the comprehensive functions of the EMA. The EMA is already executing its core functions of monitoring, public education, information management and enforcement on a limited scale until all relevant legislation is finalized in Parliament, (see Section 4.2). Furthermore, it is now considered a credible organization by other government agencies, the private sector, NGOs and the public. back to top
CONTACTS
To obtain further information on the World Bank activities and programs in Trinidad and Tobago, please contact Michael Corlett (mcorlett@worldbank.org) or Alejandro Cedeno, Communications Officer for the Caribbean (acedeno@worldbank.org) both at the World Bank Headquarters in Washington DC.
For more information on World Bank assistance to Trinidad and Tobago, including lending breakdown and project reports, see:
Proposed Projects
All Projects Updated on September 2006
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