In the Dominican Republic, discounts on Venezuelan oil imports keep the lights on. In Jamaica, they are helping a limping economy stay afloat, and in Haiti, a young and inexperienced leadership is using them to achieve quick results.
But despite financial benefits of the late Venezuelan President Hugo Chávez’s Petrocaribe oil agreement with cash-strapped Caribbean countries, analysts and critics say inadequate oversight has contributed to a lack of transparency in many of the 17 beneficiary nations.
In almost every case, the program has allowed governments to postpone politically unpopular but critical economic reforms. And while Petrocaribe debt carries only a 1 percent interest rate, the size of the accumulated debt is raising serious concerns about repayment.