Parliament is slated to continue debate sometime in the future on a motion calling for the establishment of a national development bank in St. Vincent and the Grenadines (SVG).
Government senator Chelsea Alexander tabled the motion in Parliament on Tuesday, telling legislators that such an institution is essential to supporting small and medium-sized enterprises and driving rural transformation.
Alexander noted that the Godwin Friday-led New Democratic Party (NDP) promised the electorate a development bank during the campaign for the Nov. 27 general election, which saw the ULP voted out of office, 14-1 in the 15-member Parliament.
She said the NDP government intends to be “proactive, intentional, and focused” in reshaping national institutions so that they are “purposefully designed” to remove longstanding barriers to economic growth.
“It was a central promise in our election campaign that small and medium-sized business enterprises will receive government support that would help them to develop and maintain their long-term sustainability,” Alexander told lawmakers.
She said SVG’s economy is not dominated by large conglomerates and that small and medium-sized businesses form “the backbone of our economy”.
“Businesses such as Joe’s Bar and Grill, Cassandra’s Cake Wine, Touch of Dawn, Coco La Sherry, Lifestyle, The Gel Palace, Shoots with Romaine, Marsha’s Hair Magic Beauty Salon all stand as living examples of Vincentian grit and industry,” she said, adding that the key question is whether more can and should be done to support such enterprises.
“This government answers that question with a resounding ‘yes’,” Alexander said.
The motion called on Parliament to support the government undertaking “a comprehensive review of the present development finance architecture” in SVG with a view to establishing a modern national development bank.
It further resolves that, following such a review, the government should prepare and lay before Parliament a policy paper or legislative proposal setting out recommendations for a contemporary development finance framework.
That framework, Alexander told lawmakers, should be designed to advance sustainable national development and broaden access to finance for the four pillars of the economy under the NDP administration: agriculture, the blue economy, tourism and the new economy.
The motion also asked Parliament to support the government’s stated policy of promoting small and medium-sized business development and for the creation of a National Development Bank as a key tool in that effort.
Alexander noted that the idea of development banking is not new to SVG, adding that prior to 2000, development financing functions were largely undertaken by the St. Vincent and the Grenadines Development Corporation (DEVCO).
However, because DEVCO had a broad mandate and delivered a wide range of services, “the specific function of development financing was sort of diluted”.
Alexander said that in 2000, under the then-NDP administration, the St. Vincent and the Grenadines Development Bank was established by statute with a clear mandate to support development enterprises in agriculture, fishing, tourism, housing, and industry.
However, in 2009, that development bank was amalgamated with the then National Commercial Bank — now the Bank of St. Vincent and the Grenadines — creating what she described as a “hybrid institution” that combined commercial banking with development financing functions.
Alexander told lawmakers that while these changes may have strengthened the commercial banking landscape, they also had the effect that “the development function took a seat on the back burner”.
“That function became diluted, and development financing over the years has become very selective,” she said, adding that early‑stage entrepreneurs and high‑risk or emerging sectors “often struggle to access the finance that they need”.
“This is in no way a critique of commercial lending institutions,” Alexander said. “By their very nature, they are risk-averse… Their primary remit is to generate a profit.
“But I’m only highlighting these concerns to illuminate … the true issue before us, and that is: access to finance in St. Vincent and the Grenadines remains a significant challenge.”
Alexander framed the proposed national development bank as a central vehicle for rural transformation, particularly in constituencies where livelihoods depend on farming and fishing.
She reiterated the government’s focus on the four pillars of economic growth.
“In tandem with this vision, deliberate steps have been taken to designate the constituencies of North Leeward, North Windward and the Southern Grenadines as special development zones, ensuring that development is both intentional and inclusive,” she said.
For farmers, Alexander said a development bank would mean “access to credit on fair and flexible terms” to acquire modern equipment and improved tools, and to scale operations to compete in local and regional markets.
For fishers, she argued that such an institution could facilitate the acquisition of boats, refrigerated storage, vessel monitoring systems and communication tools such as VHF radios, through affordable financing.
In tourism, Alexander said the bank would have a dual role, providing both financing and technical assistance and training. It would go beyond offering money to also deliver institutional support to help projects succeed, she said.
Alexander emphasised that many young people working in emerging sectors fall outside traditional lending criteria.
She cited podcasting, social media influencing, shared workspaces, and graphic design as areas where young Vincentians are active but lack access to capital.
“Many young people engaged in these new emerging industries … often struggle to access financing,” she told Parliament, adding that a national development bank would “bridge that gap” by providing funding and support to start-ups and innovators who “often fall outside the scope of traditional lending criteria…
“In this way… the establishment of the National Development Bank is an invitation, especially to young people, to think beyond convention, to embrace innovation, entrepreneurship and the reimagining of traditional industries,” Alexander said.
Alexander said the benefits of a national development bank include direct funding and support through a specialised institution and provision of technical and developmental assistance, not just finance.
It will also act as a conduit for international and regional funding; facilitate national outreach programmes, such as internships; and, strengthen public sector partnerships in pursuit of sustainable development.
“Ultimately… a national development bank ensures that growth is not left to chance,” Alexander said.
“We are ensuring that it is intentional, strategically financed and carefully and equitably shared among our people,” she said and bipartisan support for the motion.
The proposed bank is intended to ensure that “no sector, no community and no citizen is left behind in our development,” Alexander said.
The motion was not disposed of by 5 p.m., the time by which debated on private member’s motions must end.
Prime Minister Friday asked that the debate be adjourned to a date to be decided.
