Case Study: Economic Recovery Support Function

We are part of a team of consultants that provided subject matter expertise in economic recovery and resilience in the US Virgin Islands following Hurricanes Irma and Maria.  While this multi-year initiative and contract has evolved over time, the following core focuses have remained: capacity building, coordination/collaboration, workforce development, ocean economy, and economic data indicators.  

Capacity Building- Increase organizational capacity for economic recovery and resilience through support for the USVI’s agencies and organizations aligning with the USVI strategic vision. The USVI faces ongoing challenges with long-term implementation of strategic comprehensive economic recovery vision and subsequent projects that support sustainable economic development.  We have been providing ongoing support to the territory with professional expertise and technical assistance by promoting the alignment of economic recovery and resilience plans including, but not limited to: the USVI Hazard Mitigation Plan, the USVI Tourism Plan, the USVI Comprehensive Economic Development Strategy, and the 2040 Vision.

Coordination and Collaboration- Facilitate federal interagency coordination and collaboration pertaining to economic recovery to ensure fiduciary stewardship of funds and access to economic recovery programs in the USVI. We collaborate within the FEMA National Disaster Recovery Framework to ensure there is coordination on several areas of recovery.  The National Disaster Recovery Framework is guided by eight principles to achieve recovery success through interagency collaboration: Individual and Family Empowerment; Leadership and Local Primacy; Pre-Disaster Recovery Planning; Engaged Partnerships and Inclusiveness; Unity of Effort; Timeliness and Flexibility; Resilience and Sustainability; and Psychological and Emotional Recovery.

Access to Capital and Technical Assistance- Facilitate the availability of capital access and technical assistance resources for small business recovery and entrepreneurial development projects and activities. Small businesses require financing in the immediate aftermath of a disaster are typically considered high risk for traditional loan underwriting.  We work with local banks, credit unions, foundations, grant-makers, community development financial institutions (CDFI), and federally funded low-interest disaster loans and grant programs to establish post-disaster revolving loan funds. There are also several federal grant opportunities, angel investor networks, venture capital investors, and some philanthropic opportunities for early-stage entrepreneurs. Insurance has also been identified as a challenge for businesses including business continuity insurance due to ongoing energy outages and not limited to natural disasters in the area.

Workforce Development- Facilitate strategic leverage of workforce development resources, including apprenticeship and job training programs, in collaboration with federal partners in support of projects and activities that help rehire displaced workers and develop the workforce pipeline. Workforce development includes programs focusing on training, placement services, and community support. It is critical to ensure that the workforce has flexible skill sets and their own personal recovery plans will increase the ability of the workforce to weather changes in the economy and be available for business needs. From a strategic perspective, a regional economy must not be reliant on any one industry which could be devastated by a disaster or economic downturn.  Preparing the local economy and a diverse talent pipeline with the education system (cradle to college with various pathways), the employers, and the workforce labor training organizations to identify appropriate training programs and empower an adaptable and flexible workforce.

Ocean Economy- Facilitate regional Caribbean collaboration between USVI and Puerto Rico on a comprehensive and integrated Caribbean economic recovery strategy, aka “ocean economy” initiative. Economic development is blind to geographic boundaries and it is no different in the Caribbean.  However, the USVI and Puerto Rico are competing with other countries; and not other counties and states (as is typical in stateside disasters) for workforce, business attraction, and private investment.  It is imperative that Puerto Rico and the USVI Collaborate whenever possible to leverage resources to be a more competitive regional “ocean economy.”

Economic Data Indicators- Collaborate with federal agencies to coordinate the collection and analysis of relevant, timely data necessary for the purposes of short term and long term economic strategic planning in the USVI and Caribbean region. Meaningful economic data within the USVI is somewhere between non-existent and poor. Most demographic data is dated to the 2010 Census. Further, the closure of oil refinery on St. Croix in 2012 caused an estimated 30% reduction of the population in 2013 and vastly changed the GDP of the territory which is difficult to capture without data monitoring.