Grenada - The First And Second Recovery And Resilience Programmatic Development Policy Credits

Overview & Synopsis

Ratings of the Grenada Second Recovery and Resilience Programmatic DPC for Grenada were as follows: Overall Outcome was satisfactory; Relevance of Prior Actions was satisfactory; Achievement of Objectives (Efficacy) was satisfactory; Bank Performance was satisfactory. Lessons learned emphasized that very small island economies benefit from streamlined operations focused on a smaller set of high-priority reforms closely aligned to the program development objectives, as complex, numerous prior actions can strain limited administrative capacity and complicate results measurement. The experience showed that fiscal and human resource constraints are particularly binding in small administrations, making the establishment of new independent agencies difficult within available capacity and budget; therefore, such institutional creations should be avoided unless fiscal and human resources are clearly identified and secured in advance. The series also demonstrated that technical assistance is essential to compensate for capacity limitations and sustain reform implementation; task teams should proactively secure complementary technical assistance from trust funds and development partners to accompany budget support, especially where investment operations are limited. Recommendations are to design leaner budget support programs that prioritize fewer, stronger, and PDO-focused measures; to resist creating independent agencies unless adequate financing, staffing, and leadership are confirmed; and to ensure that technical assistance is available and well-coordinated to support implementation, capacity building, and follow-through on reforms.