Production And Trade For The Caribbean Region example essay topic

CARIBBEAN POLITICS and SOCIETY Caribbean Integration Rationale for Integration. The Caribbean remains fragmented both economically and politically as a result of competition and conflict among the European powers. Fragmentation is in part the product of a long history as separate colonies of a metropolitan power or powers. It is also in part the psychological effects on people of separation by sea. The case for regional integration is both simple and irrefutable. First we are small and we need to achieve economies of scale.

We need to achieve such economies in markets, production, the mobilisation of regional capital for regional use, university education, science and technology, sea and air transport to mention some areas. We therefore need to pool as far as is feasible our markets and our financial human and natural resources. We need a single unified and truly common market for goods and services, capital, and trained manpower. In addition we need to coordinate not only the development of our productive sectors but also our economic policies.

And we need both a common external tariff and a common set of external trade, economic and other policies. Very basically put, we must come closer together because even the more economically advanced and biggest of us are mere specks of dusts in international terms. To admit that we are specks of dust does not however mean that we should sink ourselves in passive apathy in economic and international matters; rather we should get together to forma an object with more mass and more weight so that our presence could be more easily seen and more effectively used in the promotion of our own interests. We are small states by world and even Hemispheric standards, we are economically and politically weak individual units. We must avoid the temptation if at any given time our individual national economy is more prosperous than those of our other partner states, to be so arrogant as to forget that our economic situation may be suddenly reversed and that therefore we will soon need close links with our partner states in matters concerning both the intra-regional and extra-regional spheres. West Indian history abounds with instances of countries suffering sudden reversals of their economic fortunes.

Advantages of Integration. a stronger voice internationally (a) small countries cannot afford to support teams of negotiators. (b) a single team representing the region would show a united front and lessen the chance for bilateral arrangements that might lead to self-destructive intra-regional competition more control of local regional resources less dependency on foreigners; therefore less exploitation increased regional trade: less outflows of hard currency needed for development increased movement of people and capital throughout the region increased job opportunities for Caribbean people the creation of a Caribbean identity According to McA free", Strengthened regional cooperation could enhance the Caribbean's self reliance and productive capacity. Exchanges of skills and technology, and a division of labour among Caribbean states in the production of various commodities and specialised services, could increase economic efficiency and the quality, range and value of what the region produces, both for local consumption and for export". Factors Encouraging Integration. a common history (slavery, exploitation, colonialism, etc.) similar political institutions and ideology (Westminster) similar social, economic and political issues (debt, crime, unemployment, etc) the impact of international trading blocs, e.g. NAFTA, the EU similar language and culture (English language) similar colonial experience and subjection to neo-colonialist ic and imperialistic policies similar export relation (the entire region is dependent) the effects of globalisation Factors Discouraging Integration. geographical separation (by sea) different rates of economic growth and development disparities in the exchange rates of the various currencies parochialism and insularity, e.g. West Indies cricket competition for international loans and tourists isolation from centuries of colonialism all the territories are sovereign states lack of commitment from regional leaders and a "go it alone" attitude of some Caribbean governments limited knowledge understanding of integration Psychological Dependence on the outside world In spite of our achievements in many fields of endeavour, we still have a strong sense of psychological dependence on things external particularly North American, Europe, and some of the bigger countries of Latin America. We still (as good ex-colonials) see big countries in the hemisphere and in Europe as being some sense better (intrinsically and not just economically) than out individual countries and the other West Indian countries and we sometimes carry this perception into the field of international relations. Organisations that Enhance Caribbean Integration. o The Caribbean Community (CARICOM) o Caribbean Examination Council (CXC) o University of the West Indies (UWI) o Caribbean Tourism Organisation (CTO) o Caribbean Development Bank (CDB) o Caribbean Conference of Churches ( ) o West Indies Cricket Board (WIC B) o Organisation of Eastern Caribbean States (OECS) POLITICAL INTEGRATION.

THE WEST INDIES FEDERATION 1958-1962. In 1958 Great Britain organised the West Indies Federation among (ten) the majority of its West Indian colonies partly to avoid granting independence to seemingly small non-viable micro states. The Federal experiment was terminated when Jamaica gained independence in 1962. A federation is a system of government where there is the constitutionally guaranteed division of power between the central government and the governments of the member units of the federation. Reasons Why the Federation Failed. o The delays and manipulation on the part of the government of the United Kingdom. o There were differences between the leadership of the region, particularly Jamaica and Trinidad & Tobago on the structure and the future direction of the Federation. Trinidad & Tobago favoured a strong union while Jamaica favoured a system closer to a confederation. o Parochialism, mainly the result of three centuries of isolated history and the absence of a common identity.

The lack of a sense of community. Infrequent personal contact between the inhabitants of the region Today it is argued that the selection of the West Indies Cricket Team still suffers from this insularity. o Differences in the level of development of the units. Jamaica and Trinidad & Tobago with the more advanced economies, both felt that residents of other islands would swamp their territories causing resources to be diverted from their further development. o The reluctance of regional leaders to enter federal politics weakened the support of civil society for the whole integration process. o Significant constitutional progress after 1944 (when adult suffrage was granted to Jamaica) that made local political leaders eager to consolidate political gain and fearful of surrendering them to a regional authority. o The central government was virtually powerless. Only limited legislative and executive powers were assigned to the central government. The office of Governor General was the most powerful institution in the Federation. It's budget was small.

It only had one-tenth of the revenue of either Jamaica or Trinidad & Tobago, therefore would not have been able to achieve any significant economic transformation in the region. Lack of financial resources made it dependent on the unit governments. o The reluctance of the mainland territories, i.e. Guyana and Belize to join the Federation. o The absence of a unifying force prompted by external danger and the want of a common struggle against a reluctant colonisers o Trade and communications between the territories was sporadic There have been many proposals and recommendations for a political union since the Federation collapsed in 1962. What seems sure is that at present a political integration of the region seems unlikely. Most recognise that closer cooperation is however vital for the region to survive into the 21st century. In 1992 a West Indian Commission, established to make recommendations on the way forward for the region said in its report, "Time For Action", : "Both federation and other form of political union involve surrender of sovereignty to a federal or unitary Government... We do not believe that a political climate for this exist in the region".

ECONOMIC INTEGRATION. CARIBBEAN FREE TRADE ASSOCIATION (CARIFTA) 1968-1973. The founding members of the Caribbean Free Trade Association are Antigua, Barbados, Guyana, Jamaica, and Trinidad & Tobago. CARIFTA provided for a free trade area among the English-speaking Caribbean territories.

THE CARIBBEAN COMMUNITY & Common Market (CARICOM) 1973-Present The member states of CARICOM are Antigua & Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Lucia, St. Kitts & Nevis, St. Vincent & the Grenadines, Suriname and Trinidad & Tobago. These states are all former West Indian colonies of Great Britain with the exception of Suriname and Haiti. The Treaty of Chaguaramas that established the Caribbean Community was signed at Chaguaramas, Trinidad on 04 July 1973 and came into force on 01 August 1973. This replaced the former Caribbean Free Trade Association. CARICOM's main purpose is to further economic integration and cooperation among its members. Both common external tariffs and common protective policies for trade with countries beyond its membership were established by Caricom to protect goods produced in the region.

It also established fiscal incentives to industry and taxation arrangements to facilitate smooth relations among its members. Among Caricom's activities are coordination of economic policies and development planning as well as the provision of free intra-regional trade. It also devises and institutes special projects for the less-developed countries within its jurisdiction. The long-term objective is to reduce external dependence through regional integration and economic development.

The Three Main Areas of Activity of the Caribbean Community The substantive provisions of the Treaty itself set out three areas of activity of the Community: 1. The pursuit of economic integration; 2. Functional or non-economic cooperation which now covers an increasing number of areas, ranging from common services such as the UWI to LIST and CARI CARGO. 3. The coordination of the foreign policies of member states both in trade and economic and in general areas. Caribbean economic integration was curtailed between 1976 and 1978, in part because of import restrictions imposed by Jamaica and Guyana, and in part because of dissatisfaction among the less-developed countries, who claimed that they were not receiving their fair share of trading revenues.

By 1980 Jamaica and Guyana had removed their import restrictions, and the Caricom Council had endorsed several measures to improve the status of the less-developed countries within Caricom. The less-developed countries, however, remained dissatisfied, and in 1981 the seven former members of the West Indies Associated States (Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts-Nevis, Saint Lucia, and Saint Vincent) formed a sub-regional economic integration organization, the Organization of Eastern Caribbean States. They have retained their Caricom membership. THE ORGANISATION OF EASTERN CARIBBEAN STATES (OECS) 1981-Present Established in 1981 (see above paragraph), the British Virgin Islands became an associated member in 1986. The OECS is conceived as an institution that would provide the legal framework for collective action in foreign affairs, while consolidating the continuing processes of cooperation in common services and economic integration. The OECS is not a political union and the implementation of any recommendations depends on the political leaders of the member territories.

Since the Secretariat has a communicating rather than an enforcing role. Successes of the OECS. o Joint overseas representation and the harmonization of foreign policy. o Cost-saving measures through multi-accreditation and joint representation with respect to overseas missions. o The establishment of the Eastern Caribbean Central Bank, which is responsible for monetary policy throughout the sub-region. - The creation of a common currency that is stable and the second strongest in the Caricom region. CARIBBEAN SINGLE MARKET and ECONOMY (CSME) The CSME is an arrangement that seeks to create a single economic space without cross-border restrictions and allow for the free movement of goods and services, labour and capital among member states of CARICOM. The Treaty The Treaty of Chaguaramas was revised in 2001 to give effect to the establishment of the CSME. Rationale.

It is believed that a single market and economy is essential for the survival of Caribbean countries that face increased competition from large countries and regional integration movements. It is envisioned that the single market and economy will create more opportunities for employment, investment, production, and trade for the Caribbean region. The Single Market. An initiative that allows goods, services, people and capital to move throughout the Caribbean Community without barriers and any other restrictions. Its aim is to achieve a single large economic space, and to provide for a common economic and trade policy to govern that space.

The Single Economy. Seeks to harmonize the economic, monetary and fiscal polices and measures of all member states of the Caribbean Community, with the objective of achieving a common regional policy in these areas. It is an arrangement in which foreign exchange and interest rate policies, tax regimes, laws and national currencies, among other things, are coordinated and harmonized. Potential Benefits. (a) Increased bargaining power in the international arena by presenting a united front to foreign investors. (b) The creation of strong regional companies to compete internationally as capital is available to travel freely within the region. (i) firms will achieve greater efficiency and increased competitiveness (ii) an increase of the market size available to regional firms ( ) regional firms better position to counter the economic challenges of globalization. (c) It will facilitate the diversification of skills within the region as labour will be able to move freely across the region. (d) The elimination of competing and contradicting development strategies and policies. Potential Disadvantages. (a) Loss of jobs as a consequence of liberalis ed trade and free movement of labour. (b) Social dislocation. (c) Capital likely to flow to countries perceived to be politically and economically stable. (d) Higher cost of living occasioning negative social and political consequences. (e) Loss of national economic control and ownership of limited resources as a consequence free movement of capital. Suggested Reading: Barrow-Giles, C. (2002), Introduction to Caribbean Politics, Ian Randle Publishers, Kingston; Chapter 7 Carrington, E. (2000) 'The Challenge of Change,' in Hall, K. and Benn, D. (eds.) (2000) Contending with Destiny: The Caribbean in the 21st Century, Jamaica: Ian Randle Publishers.

Gir van, N. (2000) 'Creating and Recreating the Caribbean in Hall, K. and Benn, D. (eds.) (2000) Contending with Destiny: The Caribbean in the 21st Century, Jamaica: Ian Randle Publishers. Hall, K. and Benn, D. (eds.) (2000) Contending with Destiny: The Caribbean in the 21st Century, Jamaica: Ian Randle Publishers. Mullierleile, C. (1996) Caribbean Integration: Progress and Hurdles: A European View, Kingston: Kingston Publishers. West Indian Commission (1992) An Overview of the Report of the West Indian Commission: Time for Action, Barbados: West Indian Commission. Issues to Think about: What are your reasons for Caribbean Integration. Is the integration process within CARICOM marred by cynicism, lack of political will and self-aggrandisement of the political directorate?

Comment with regard to the issues confronting the realisation of the CSME. What role can the OECS play in strengthening the Caribbean Community? Can the goal of integration be realised without the building of trust? What is the role of the ACS (Association of Caribbean States). Do you think the ACS will enhance or undermine CARICOM?

Questions to Consider: 1. "What God have divided no man can put together". Discuss in relation to Caribbean integration. 2. Assess the approaches to integration in the region and consider what have been the main failures and benefits of the movement.

What else needs to be done and why? 3. Should Commonwealth Caribbean countries politically integrate?