Policy Brief | Strengthening Territory Development

This policy brief examines long-term economic development challenges and opportunities across U.S. territories, using the U.S. Virgin Islands (USVI) as a case study. It outlines how decades of economic concentration, aging infrastructure, and heightened federal risk perceptions have contributed to fiscal fragility, population decline, and barriers to sustained growth in the territories. The brief situates these challenges within a broader federal–territorial context, emphasizing the strategic importance of revitalizing territorial economies beyond tourism dependence.

The brief is intended to support federal policymakers, territorial leaders, and institutional stakeholders by providing a concise, evidence-based analysis of structural constraints and practical policy pathways. It highlights recommendations to modernize federal funding models, pair oversight with hands-on technical assistance, and strengthen territorial execution capacity through phased project delivery and targeted investment in high-feasibility growth sectors such as infrastructure, logistics, renewable energy, and the blue economy.