Belize Compact - Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

The Constraints Analysis Report for the Belize Compact highlights the following binding constraints to economic growth: 

1. Education: Low quality of education has led to a shortage of trained professionals in all industries.
2. Government regulation and tax policy: Tax policy, licensing, and permitting increases business costs and limits market entry.
3. Electricity: High costs of electricity drive up input costs for all industries.
4. Natural Capital Management: Degradation of coastal and marine resources constrains growth in tourism.
5. Access to Finance: Limited access to finance is constraining SMEs’ ability to optimally invest.