In the first three parts of the insight series ‘Bridging Islands, Connecting Futures’, we addressed the importance of interconnectivity, data sovereignty and cloud readiness in the Caribbean. In this insight, we turn our attention to why and how Caribbean governments should improve their digital public services. Across the region, the demand for faster and more accessible government services is growing. This shift is fueled by rising public expectations, an increasingly digital global economy, and the Caribbean’s own drive for resilience and modernization.
Most Caribbean residents – especially younger generations – expect the same ease of use from public services as they do from banks, delivery apps or e-commerce platforms. Meanwhile, businesses and investors aspire quicker, more transparent interactions with regulatory agencies to streamline permit approvals or digital customs processes. Moreover, the pandemic further exposed the limits of paper-based, in-person systems, underlining the need for governments to deliver services that are accessible anytime, anywhere.
Prioritizing digitalization, why now?
According to research by the Economic Commission for Latin America and the Caribbean (ECLAC), ten Caribbean countries experienced a decline in their working-age populations in 2023, primarily due to population ageing. This makes it increasingly challenging for these countries to generate enough revenue to sustain public services and provide adequate social care for the elderly. As this trend continues to develop throughout the Caribbean, governments are seeking new ways to improve efficiency of their services while reducing costs at the same time. Digitalizing public services offers Caribbean governments a solution. Digitalization brings significant benefits, including increased cost efficiency by automizing manual processes and potential savings in labor costs, enhanced service accessibility by enabling citizens to access government services anytime, anywhere – an important improvement for individuals with limited mobility, such as the elderly, and economic competitiveness by streamlining administrative procedures, which contribute to a more stable and investment-friendly environment.
Digital progression challenges
Despite the potential of digital transformation in the Caribbean, there are some challenges hindering progression. One of the key barriers is the fragmentated state of digital infrastructure and the uneven progress of digital transformation across governments in the region. Many countries either use systems that are unable to communicate with systems from other governments – using different technologies, standards and processes – or they do not yet have comprehensive digital systems in place. This lack of development and coordination makes it difficult to integrate services, share data or collaborate effectively across and between borders. The absence of common frameworks for data exchange, cybersecurity or cloud usage further widens the gap. Without a shared vision and interoperable infrastructure, the region risks missing out on the full benefits of digitalization – including improved service delivery, cost savings and stronger regional cooperation.
Another major challenge in developing e-government services and advancing digital transformation is the shortage of skilled IT professionals in the region. Although many skilled professionals originate from the region, Caribbean countries often face challenges in retaining the talent needed to design, implement and maintain digital systems. This shortage can lead to delays in project execution, increased reliance on expensive external consultants and difficulties in maintaining and updating critical government infrastructure. Regional collaboration, such as sharing IT staff, creating joint training and study programs or building a pool of tech experts, could help the entire Caribbean to address this challenge.
Data sovereignty concerns
As Caribbean governments expand their digital services and progress their digital transformation efforts, concerns around data sovereignty are becoming increasingly urgent. Many Caribbean governments currently rely on foreign public cloud providers to deliver digital public services – storing data in data centers outside the region. This raises questions about who controls access to sensitive citizen data and how it is protected under foreign laws (notably the U.S. CLOUD Act). To maintain sovereignty over public – potentially sensitive – data and ensure compliance with local and regional regulations, Caribbean countries must prioritize regional or in-country data hosting solutions.
Interconnectivity
Stronger interconnectivity between Caribbean island states has the potential to significantly accelerate the development of e-government services across the region. Instead of building digital systems independently from the ground up, regional collaboration can enable the sharing of infrastructure, standards and best practices. This may include joint platforms for functions such as cross-border customs processing, regional tax coordination or interoperability in trade systems. Crucially, this approach does not require all countries to adopt identical systems; it rather ensures national systems are able to communicate and exchange information effectively when needed, supporting more seamless and efficient regional cooperation without limiting countries’ choices.
Caribbean Datacenter Association
The Caribbean Datacenter Association (CDA) is currently lobbying to gain support from local players and governments to establish a Caribbean federated cloud. At the same time, CARICOM, and the Organization of Eastern Caribbean States (OECS), are working to create and improve frameworks for the easy and safe exchange of information, goods, and services within the Caribbean. Until the required treaties and frameworks are in place, local organizations and players can already begin to demonstrate some of the great things we can expect from such a broader Caribbean approach, with proof-of-concept practical applications that will lead to a more substantial flywheel effect. The Caribbean can claim its place as strong international stakeholder, both technologically and commercially, provided we collaborate.