It was recognized that wealth creation is generated mainly from the productivity of labour which in turn is determined by inherited nature and nurture. In addition, ineffective and sub-optimal performance of key institutions can constrain the development of innovation and entrepreneurism. The CSME is characterized by wide disparities in population size (nature) and expenditure on social services – education and health (nurture). Poorly designed and institutional frameworks operating with differentially across the region characterize the single market area. These and other disparities have been recognized by the CARICOM Community and are included for attention in the provisions of the Revised Treaty of Chaguaramas 1973. During the previous and current subvention cycles, capacity development has been identified as a priority for CDF’s assistance; in the first cycle, grant resources have been allocated to the Governments of Antigua and Barbuda, Belize, Dominica, Grenada and Saint Lucia for the development and support of human resource capacity as well as the strengthening of key institutions.