CARIFORUM and UK EPA Study

10. OPPORTUNITIES AND CONSTRAINTS

The Study utilises the recent Productive Capacity Index (PCI) developed by UNCTAD, which is based on the three pillars of sustainability (economic, social, and environmental) to address possible barriers to achieving sustainable trade. The Productive Capacities Index (PCI) is an online portal with publications, manuals, resources and tools that allow policymakers to measure their countries’ performance in achieving their national development goals, as well as their ability to meet the UN’s Sustainable Development Goals (SDGs). The use of the PCI indicator as a measure of sustainability, is based on the rationale, founded on the work of UNCTAD, that “productive capacities….are essential for generating inclusive and sustained economic growth and achieving sustainable development” (UNCTAD, n.d.). The index is peer reviewed and as UNCATD “can help diagnose the areas where countries may be leading or falling behind, spotlighting where policies are working and where corrective efforts are needed”, the index can suggest “a roadmap for future policy actions and interventions under each of its eight components: human capital, natural capital, energy, ICTs, structural change, transport, institutions and the private sector.” 58

10.1 Insights from the PCI

UNCTAD notes that the overall level of a country’s productive capacities, as well as performance in the eight components of the PCI, “are markers of its strengths, weaknesses and possible future growth patterns.” There is a high degree of correlation between the PCI and GDP per capita. This speaks to the fact that addressing these issues will bring the country closer to achieving the SDG targets.

58 See Appendix 1 for a description of the PCI and its components.

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