KINGSTON, Jamaica - Seventeen countries of the Caribbean face a heightened period of economic uncertainty now that Venezuelan President Hugo Chavez has died. Twelve of the 17 Caribbean countries are members of the Caribbean Community (Caricom). They have become highly reliant on their oil supplies from Venezuela on a part payment-part loan scheme, called PetroCaribe, without which their difficult economic circumstances would be decidedly worse.
Of the $14-billion worth of oil that Venezuela provided under PetroCaribe to the 17 dependent countries up to last year, $5.8 billion constituted long-term financing. Cuba is the principal beneficiary but, in per capita terms, so too are a number of Caricom countries — Jamaica particularly.
The attendant ALBA Caribe Fund (ACF) and ALBA Food Fund (AFF) -- both financed almost entirely by Venezuela — are also significant contributors to the welfare of the beneficiary states. In six years up to 2012, the ACF had invested $178.8 million in 88 projects ranging from education to water. In nine countries, the AFF had invested in 12 projects worth $24 million.