Study: European funding does not guarantee economic growth

ORANJESTAD – The possibility of Aruba gaining access to additional European Union funding does not automatically mean the island's economy will grow. That is one of the main conclusions of an official report by the University of Curaçao, published on the potential change in the European status of the Caribbean countries within the Kingdom of the Netherlands.

According to the study, while obtaining Overseas Countries and Territories Plus (OCT+) status could provide access to additional funding from Brussels, the ultimate outcome will depend on Aruba's ability to apply for, manage and properly account for the projects receiving financial support.

The report explains that many European regions with access to EU funds have not necessarily achieved sustainable economic growth. To benefit fully, a country must have sufficient administrative and technical capacity to turn investments into tangible results for its population.

The researchers emphasize that without adequate preparation, a change in status could even create financial and administrative risks.