Surviving Fiscal Odysseys in the Caribbean

ABSTRACT

In the aftermath of the globalfinancial crisis and in the wake of the COVID-19 pandemic, and the subsequent diminishing fiscal spaces of small islands, fiscalpolicy and the search forfiscal sustainability have regainedprominence on both policy and research agendas. Strengtheningfiscal rules andfiscal institutions have indeed emerged as a key response to the fiscal legacy of the crisis. This is more evident across small island economies in the Caribbean, especially the tourism-dependent island economies. While the recent surge in policy debates and discussion is certainly a sign of the mountingfiscalpressures, these are by no means new to the Caribbean. Over half-a-century ago fiscal matters were prominently on the Caribbean federation agenda. Nevertheless, fiscal sustainability remains ephemeral and illusionary;indeed, an odyssey in the Caribbean.