The ocean is a vital resource for the small island developing States in the Caribbean, as 70% of their population lives along the coast and depends on it for subsistence and income. 

Moreover, their ocean territories range from 0.1x to over 50x larger than their land mass – offering the potential for significant development of the blue economy.

Additionally, the value of ocean assets in the Caribbean has been declining rapidly due to destroyed reefs, rising sea levels, hurricanes, floods, and other weather impacts, and excessive coastal development compounded with ocean pollution.

Therefore, the blue economy in the Caribbean is of high significance. The IDB and IDB Invest define the blue economy as the sustainable use of ocean resources, lakes, and rivers for economic growth, improved livelihoods and jobs, and ocean ecosystem health.

Expanding blue economy opportunities can create jobs, alleviate poverty, create inclusive growth, and improve infrastructure, but it is important to address any social trade-offs or adverse impacts and actively promote more inclusive business models. 

Measuring Impact

While environmental metrics for the blue economy have received significant attention in recent years, the social impact of the blue economy has not had as much of a focus. 

Understanding the specific social indicators that deserve attention and analysis is necessary to assess the full picture—both the environmental and social impacts. 

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Negative screening indicators can be used to establish a minimum set of criteria which need to be met to ensure that investment in the blue economy does no harm. While positive screening indicators can be used to identify where an investment may deliver enhanced social impact. 

As a result, gathering information across a range of social indicators, can help to ensure that blue economy investments not only provide environmental benefits, but also offer opportunities to create tangible benefits for local communities and wider stakeholders.

Guided Investment

The Caribbean basin has a mixed, vibrant culture and unique social demographics, which require specific consideration to ensure that the blue economy ensures that no one is left behind or pushed behind in the transition to an environmentally sustainable economy. 

IDB Invest, in partnership with Finance Earth, has developed a set of social indicators to guide investment in the blue economy. 

The key issues in the design of the proposed blue economy social impact indicators, grouped across the following areas:

• Employment and Working Conditions: The seasonality of employment in the Caribbean deserves careful consideration across multiple sectors, including tourism and fishing.
• Community Benefit and Cultural Preservation: The Caribbean is home to a range of cultures and backgrounds, including indigenous communities, and it is crucial to respect their rights and interests and incorporate these in project development and ongoing business operations across blue economy sectors.
• Socioeconomic Opportunities: The level of access varies widely across sectors and countries, higher in some and lower in others.
• Governance: Robust governance is crucial to ensuring a fair distribution of the blue economy's benefits among sector participants. 

Social Indicators

The guidance includes a range of social indicators that apply across multiple sectors and geographies, covering critical areas such as fair wages, job security, vulnerable populations, and community engagement – beyond just being relevant for the blue economy. 

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The indicators can be measured through a mixture of qualitative and quantitative metrics.  

Corporate entities and financial institutions can use the indicators to provide a first filter through negative screening (compulsory minimum requirements) and positive screening focused on driving community impact in the Caribbean. 

Informed Decisions

The indicators primarily target the social impacts of private sector activity in the blue economy. 

When integrated with commercial and environmental indicators, it is possible to measure and monitor progress toward achieving a more equitable and sustainable blue economy.

The analysed sectors are key in the Caribbean: tourism, conservation, energy, fishing, biotechnology, deep-sea research, transport, and shipping, and benefitted from extensive stakeholder consultation in Jamaica, Belize, and The Bahamas. 

By using universal metrics and sector-specific key performance indicators, stakeholders can better understand the prevailing social landscape of the Caribbean´s Blue Economy, empowering private enterprises and financial institutions to make informed business decisions.