Offshore Financial Operations, Development Strategy or Neo-liberal Illusion? The case of the First International Bank of Grenada

With declining Foreign aid flows to the region, Caribbean countries now need to intensify their focus on national and regional means of financing development. The Monterrey Consensus (2002) notes that many developing countries increasingly depend on local funds to finance their development needs. Domestic financial institutions are important in this respect, as by intermediating between savers and borrowers, they can efficiently mobilize and use society’s savings (Levine 1997).