PR2062013 - Distinguished Lecture by Amb Irwin LaRocque Secretary-General of The Caribbean Community PDF

PRESS RELEASE
CARIBBEANCOMMUNITYSECRETARIAT,P.O.Box10827,TURKEYEN,GREATERGEORGETOWN,GUYANA; Tel:5922220001/0075;Fax:5922220171/0095;Email:<carisec3@caricom.org><piu@caricom.org.
NO:206/2013
DATE:04October2013
DistinguishedLecture By AMBASSADORIRWINLaROCQUE SECRETARYGENERAL CaribbeanCommunity OnthestatusoftheRegionalIntegrationProcess and VisionfortheFutureofCARICOM PortofSpain,TrinidadandTobago 3October2013

INTRODUCTION IamhonouredtobeherewithyouthisafternoonattheinvitationofProfessorSankattodeliverthis lectureandbegintheseriesofDistinguishedLecturesonourintegrationmovement.Itisadiscourse that is much needed and if my understanding is correct, I look forward to hearing from some of the Regionsiconicfiguresonthistheme. There can hardly be a better place for such a conversation, given the long involvement and prominentroleoftheUniversityoftheWestIndiesinintegration.Theintellectualfoundationforthe modernmovementemanatedfromthisinstitutionandsomeofitsleadingacademicshavecontinued in that tradition by contributing their thoughts, views and in many cases their time and energy towards furthering the integration process. The alumni of this institution have been providing
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leadership in all fields in the Region and abroad and many of those who have passed through the hallshaveconfessedthattheirgroundinginandsupportforregionalintegrationfounditsgenesisat theUniversity.TheRegionowesadebttoUWI.Morenowthanever,thetraditionmustcontinue. Thenexusbetweenthisinstitutionandtheregionalintegrationprocesswascementedwhenin1963, trying to salvage the wreck of the Federation, the then Prime Minister of Trinidad and Tobago, Dr Eric Williams, called for a meeting of his colleague Heads of Government in the Anglophone Caribbeantodiscussthefutureofcommonservices.ChiefamongthesewasUWI,whichwasviewed asindispensabletotheintegrationmovement.Fiftyyearslater,thatcharacterisationstillholdstrue. The experiences and the knowledge that so many gained from their stint at the institution doubtlesslywouldhavebothencouragedandfortifiedtheregionalnationalismthatexistedatthe timeandissoneededtointegratethisRegion.Formakenomistake,tointegratesmallstatessuchas ours, united and divided by the Caribbean Sea, with disparities of capacity, in different stages of economicdevelopment,jealousoftheirsovereignty,andamongsomeoftheyoungestnationstates in the world, requires fortitude, patience and vision. Indeed, one of the most ardent devotees of regional integration, Sir Shridath Ramphal stated in a speech in 1975: The natural state of our Caribbeanisfragmentation:withoutconstanteffort;withoutunrelentingperseveranceanddisciplinein suppressing instincts born of tradition and environment, it is to our natural state of disunity that we shallreturn. No surprise therefore that regional integration has had a long history of gradualism, moving, some will argue, at the pace of the slowest. Of course, it can also be argued that such a steady approach has resulted in the Caribbean Community being the longest surviving economic integration movement among developing countries and indeed second only to the European Union, globally, in longevity. That unrelenting perseverance of which Sir Shridath spoke, fuelled by our innate desire to come together, has ensured that this year we celebrate 40 years as the Caribbean Community (CARICOM).AndIamconfidentthatCARICOMwillbeheretocelebrateitsachievementsinanother 40years. In sharing my thoughts with you this evening I will briefly trace the evolution of the integration movement,giveasenseofwherewearetoday,pointtothemajorchallengesandlooktothefuture.
HISTORY LadiesandGentlemen,inrealtermsourintegrationprocesscanberegardedasbeginningeightyone years ago, given that it was in 1932 that the first concrete proposals for Caribbean unity were put forwardatameetingofCaribbeanlabourleadersinRoseau,Dominica. It was the labour movement which championed and pioneered integration as a means of self governance for the West Indian territories. At congresses in the late 1920s and 1930s, Caribbean labour leaders went from discussion of the idea to actually drafting a constitution for the unified territories, aided in large measure by a young economist from Saint Lucia, Arthur Lewis, who later distinguishedhimselfandtheRegionasourfirstNobelLaureate. Progress stalled with the intervention of the Second World War but shortly after its end in 1945, momentum was regained towards independence as a unit. This was the main theme of a landmark meeting which took place in 1947 at Montego Bay, Jamaica. Out of that meeting, the process began towards the West Indies Federation. This Federation would eventually involve the British colonies, with the exception of then British Guiana and British Honduras, and came into being in 1958. Its goal was Independence and some services were established to support the West Indian nation, including aSupremeCourtandashippingline.InpreparingforIndependence,aplanforaCustomsUnionwas drawn up but during the four years of the Federations existence free trade was not introduced amongtheislands. The end of the Federation in 1962 brought a close to this phase and to this approach to integration. In many ways, however, the end of the Federation led to the beginning of another chapter in the integration process which would evolve into the Caribbean Community. The need to maintain and possibly expand the Common Services that existed during the Federation was the catalyst for that (1963) Common Services Conference which I mentioned earlier. The UWI and the Regional Shipping Service along with the Caribbean Meteorological Service, which began one year later, kept the embers of integration glowing along with the socalled Little 8, comprising the Windward and LeewardIslandsandBarbadoswhichstayedtogetherafterthedissolutionoftheFederation. The Little 8 folded in 1965 and later that year, the Premiers of Barbados and British Guiana and the Chief Minister of Antigua and Barbuda Messrs Barrow, Burnham and Bird respectively, agreed to establish the Caribbean Free Trade Association (CARIFTA). It was the first attempt to integrate through trade. The other territories joined this initiative and CARIFTA was launched in 1968 along withtheCommonwealthCaribbeanRegionalSecretariat,whichbecametheCARICOMSecretariat.
During that period, regional nationalism was alive and well. It was a nationalism born out of the common desire and recognition of the imperative to forge our individual nationalism within a regionalcontext.TherewasapoliticalchemistryamongourLeaders. Eight years later, recognizing that CARIFTA could only carry us thus far, our Leaders felt confident enough to move on to a Common Market and Community and deepened the integration arrangements on the basis of three pillars: economic integration; foreign policy coordination and functionalcooperation.TheTreatyofChaguaramasformalisingthisnewarrangementwassignedin 1973. That Treaty which reflected the aspirations of the time could only carry us so far. It included a Common External Tariff (CET) which incidentally requires Member States to give up some sovereignty. However, decisions were largely unenforceable and dispute settlement arrangements were weak. Trade barriers among members were also rampant and many of the provisions of the Treatywerebestendeavourclauses. Sixteenyearslater,thewatershedmeetingofHeadsofGovernmentatGrandAnse,Grenadain1989, set the Region on course towards the CARICOM Single Market and Economy (CSME). Grand Anse was a bold response to the circumstances of the day. The Community was faced with a changing global economic environment while the performance of the regional economy was sluggish. The traditional market for our commodities was threatened with the advent of the European Single Market,and discussionscontinuedon theglobaltradingarrangements.Bothofthesedevelopments would result in preference erosion for the commodities the Region had come to rely on so heavily. Grant assistance was also declining. Our Leaders recognized that we needed to become more self reliant for our development. A deeper form of integration was the logical answer to those challenges. To accommodate this even deeper form of integration, the Treaty was revised significantly and was signed in 2001. That revision of the Treaty set out the objectives for the Community, including the Single Market and Economy. These include improved standards of living and work; full employment of labour and other factors of production; accelerated, coordinated and sustained economic development and convergence; enhanced coordination of Member States' foreign policies; and enhanced functional cooperation. That last objective recognized the need for more efficient operation of common services and intensified activities in areas such as health, education, transportationandtelecommunications.
In 2006, five years after the signing of the Revised Treaty, the Single Market was ushered in. Twelve of our fifteen Member States form the Single Market, while Haiti and Montserrat are working towardsputtingitintoplace. In the midst of these various transitions in the wider Region, the Organisation of Eastern Caribbean States (OECS), whose Members are either Member States or Associate Members of CARICOM, have also been strengthening their integration arrangements which were first codified with the Treaty of Basseterre in 1981. In many ways the OECS has moved beyond CARICOM with the Revised Treaty of Basseterre Establishing the OECS Economic Union, signed in 2010, which among other things has granted free movement of persons within the Member States. This is an integration group that has had its own single currency and institutions, such as its Central Bank, Supreme Court and Stock Exchange. There is much to be learnt from the progress being made at the level of the OECS which couldassistthewiderintegrationeffort. WHEREAREWENOW TheframersoftherevisedTreatyincraftingtheelementsoftheCSME,alsosoughttoaddresssome of the short comings of the 1973 Treaty. An attempt was made to move away from unanimity in decision making; to establish a rulesbased system; the dispute settlement mechanism was strengthened and the Caribbean Court of Justice (CCJ) was established as a means of ensuring the rightsandobligationsundertheTreatyareobserved. The Caribbean Community rests on four pillars, economic integration, human and social development, security cooperation and foreign policy coordination. All four pillars are important elements within our integration arrangements although the Treaty focusses heavily on the creation of a CARICOM Single Market and Economy and even more so, on the market dimensions of the CSME. The important dimension of the services sector was added. This was a clear recognition that the regional economy is being oriented more towards services while not minimising the continued importance of agriculture and other sectors. In that regard, human resource development is crucial intheexploitationofnewopportunitiesarisingintheservicessector. While the Treaty creates or gives rise to certain Institutions of our Community such as the CCJ, the CARICOM Competition Commission, the CARICOM Development Fund, CROSQ and CAHFSA, CARICOMs integration architecture is not limited to those and consists of some 20 institutions. The
Caribbean Development Bank and, as I mentioned before, UWI, are an integral part of our Community. All of these institutions have an important function in delivering on the objectives of ourCommunity. Ladies and Gentlemen, these progressive steps in regional integration have been taken against a background of an international system that has undergone a number of profound changes over the last two decades spawned by the process of globalization, itself fuelled by free trade, market liberalizationandtheInformationandCommunicationsTechnology(ICT)revolution.Thesesystemic changes have resulted in significant modifications to the contours and functioning of the internationalsystemandinfundamentalshiftsintheglobalbalanceofpower.Thesetransformative changes pose challenges to the continuing development of the Community. They also create opportunitiesthatcanbeexploitedtoourbenefit. ForCARICOM,enhancingcompetitivenessandexpandingtradearecrucialforimprovingthewelfare of the Region. However, small developing economies like ours have structural and institutional characteristics, which affect the process of economic growth, constrain their ability to compete internationally,increasetheirvulnerabilitytoexternalevents,andlimittheircapacityforadjustment. These include small population, geographical dispersal, minimal export diversification and dependency upon very few export markets, inadequate infrastructure, low competitiveness, economic rigidity with high adjustment costs, high transport and transit costs, and difficulties in attractingforeigninvestment. These constraints have been exacerbated by the effects of the global economic and financial crises on Caribbean economies. The impact on CARICOM States is represented by continuing sluggish growthprospectsandthechallengesof a) b) c) d) e) f) g) Risingfoodprices; Aslumpindemandfortraditionalcommodityexports; Increasingunemploymentrates,especiallyamongtheyouth; Aslowdowninforeigndirectinvestmentflows; Unpredictableremittanceflows; Risingdebtandtheinabilitytoeffectivelyservicethedebt;and Risingfiscaldeficits.
Globally, several countries have responded to the deteriorating economic environment by introducing countercyclical fiscal policies. However, the ability of CARICOM countries to apply such policy measures is constrained by the lack of fiscal space exacerbated by a severe debt burden. CARICOMs debt stock currently stands at approximately US$19 billion, while the debt to GDP ratio rangesfrom60to144percentforourMemberStates. Debt servicing, particularly of external debt which accounts for a major percentage of the total public sector debt, continues to deprive CARICOM countries of resources that could otherwise be directedtowardsproductiveactivities. ThisdebtsituationisaggravatedbythediminutionoftheRegionsaccesstoconcessionaryfinancing because International Financial Institutions and the Donor Community have insisted on using GDP per capita as the sole criterion to determine whether or not a country qualifies for development support.Throughthisconceptof"graduation"or"differentiation",mostCARICOMMemberStates, categorisedasmiddleincomecountries,areincreasinglydeniedaccesstoconcessionaryfundingand development assistance. The Community has been lobbying actively for quite some time against graduation solely based on our relatively high per capita income while ignoring the vulnerabilities whichfacesmalleconomiessuchasours. Itisclearthatfacedwiththoserealities,thereisanimperativetocometogether,ratherthanlooking inward,tobebetterabletomeetthosechallenges.Ourpathtoregionaldevelopmentispremisedon thecommitmentbyourMemberStates,topromoteinitiativesaimedatachievingacoordinatedand strategic approach through the pursuit of increasingly coordinated policies and the combined use of the resources and capacities of the Region. Regional integration is the vehicle that the Community haschosentotakeusalongthispathwiththeCSMEastheengine. The ultimate goal of the CSME is the creation of a single economic space encompassing all Member States. It has the following core regimes: free movement of skills, goods, services, and capital, and the right of establishment. It also includes abolition of exchange controls, free convertibility of currencies, an integrated capital market, convergence of macroeconomic policies, and harmonised companylegislation.Acriticalelementistheharmonisationoflawsandadministrativepractices. To date, a lot of attention has focussed on the Single Market aspect of the CSME, perhaps since one can readily discern rights and obligations enshrined in the Treaty and because it is the easier part of
creating a Single Market and Economy. However, on the macro economic issues of the Single Economy, at best, the Treaty points to best endeavours. As we move along the integration continuum from Single Market to Single Economy an artificial distinction for purposes of implementation it impinges more and more on national sovereignty and brings into question governanceissuesandpossiblysomesortofpoliticalintegration. The Single Development Vision adopted in 2007, envisioned the completion of the Single Economy by 2015. Once again the Community had overreached in its ambitions just as it had done at Grand Anse in 1989, which had put the operation date of the CSME at 1993. The fact is that the Revised Treatywascompletedandsigned12yearsafterGrandAnseandtheSingleMarkettookafurtherfive years before becoming operational in 2006. We set ourselves overambitious and unrealistic targets, whichbytheirverynature,doomustoapparentfailurewhentheyarenotmet. Iamnotsuggestingthatwesettargetsthatallowforaleisurelypace.Theworldisnotwaitingonus. I am suggesting that we set targets which take into account not only the necessity and urgency of achieving the goal but equally important, what it takes to get there, and the resources and capacity oftheentireCommunitytodoso. This is not to say that we have not made progress in our economic integration arrangements. All of the core regimes under the Single Market are operating, although work still needs to be done in some areas. Additionally, regional policies have been approved or are in progress in areas such as, agriculture and food and nutrition security, energy, industry, ICT and security. Work has also commenced on a policy with respect to small and medium sized enterprises. We are fairly well advanced on a regulatory framework for Financial Services and an Investment Code. These policies, once implemented by Member States, will contribute to the development of the respective sectors andtoimprovingtheircompetitiveness. However, the true test of the CSME is if it has helped in solving the economic problems of the Member States. We have begun a discussion on whether the construct of the CSME addresses the immediate concerns of Member States and do we need to recalibrate and focus more on the productive sector and making our economies more competitive. I am of the view that we do. We probably have adopted a too theoretical model of economic integration. Our regional economists have long called for us to focus on production integration and on the competitiveness of our economies.
Production integration can only be achieved through the full involvement of a competitive private sector. To facilitate the private sector involvement we must address the ease of doing business across borders and within the CSME, as a whole. There is also an urgent need to strengthen the institutional capacity of private sector support organisations. These institutions are vital to give the private sector a cohesive voice at the table of decisionmaking in matters of interest to their members. Inthefinalanalysis,focusmustbeonincreasingproductioninordertogenerateincomeandaddress the standard of living in our various Member States. Key to increasing production is agriculture, export services and manufacturing. The success of these sectors is of course underpinned by affordableenergyandaffordableandreliabletransportationservices. Ladies and Gentlemen as we forge ahead, what has emerged over these first seven years of the operations of the CSME is that the Treaty, as it now exists, may be limited as a tool to advance the integration movement and thus pass the test mentioned above. The Treaty is basically tradebased with insufficient attention paid to the Single Economy. Whereas there are clear obligations under the Treaty with respect to the Single Market, for the most part, the provisions relative to the Single Economycanideallybedescribedasbestendeavours. Further, the governing arrangements for the CSME have become bureaucratic, unwieldy and lethargic and we spend more time and resources discussing the same issues rather than making decisions we can effectively implement. There is need for more care and attention in the decision makingprocess,includinganeffectiveconsultativemechanism. Ibelievewehavereachedthestagewherewemustaskfundamentalquestionsabouttheefficacyof thegovernancestructuresoutlinedintheTreatyandoftheTreatyitself. This issue is among the areas of priority being considered by the reconstituted Inter Governmental Task Force which is working towards making recommendations for further Revising the Treaty. Two of the areas are Governance of the Caribbean Community and Related Issues and the Working Methods of the Various Organs and Bodies of the Caribbean Community. What we are seeking to do is build the regional architecture for integration to ensure that it helps in the growth and developmentofMemberStatesandhasanimpactonthelivesofourcitizens.
The bedrock of our governance arrangements is that we are a Community of Sovereign States, as statedadecadeagointheRoseHallDeclarationof2003.Withthatinmind,thefundamentalissueis how to balance that reality against the need for an effective system of governance to allow for efficientandtimelyimplementationofdecisions. Over the years, ideas have surfaced in this regard, particularly after the 1992 report of the West Indian Commission, Time For Action. That report suggested a system of Commissioners empowered to enforce decisions. Latterly, the idea of a Permanent Committee of CARICOM Ambassadors, comprising individuals of sufficient rank and influence to drive the implementation processatthenationallevel,hasbeenputforward. That concept envisages each Member State establishing a Regional Integration Unit, headed by an AmbassadorwhowouldbethecountrysrepresentativeontheCommittee.TheOECSCommissionis fashioned broadly along similar lines and presents an opportunity for us to observe the workings of suchanarrangement. While the Committee of Ambassadors may not be the ideal option, it is the best we can possibly achieve in the short term under the current circumstances. However, the issue of some form of supranationalauthoritymustbekeptalive. In that context, key to the functioning of any such authority is the role of the SecretaryGeneral, the SecretariatandCommunityInstitutionsestablishedtoassistinthedevelopmentoftheCommunity. Already in place to ensure certainty in the interpretation and application of the Treatys provisions is the Caribbean Court of Justice (CCJ) in its original jurisdiction. The Court, in its early judgements, has cemented the Communitys rulesbased system, engendered a level of confidence and occasioned a shiftinthewaybusinessisdoneintheRegionsCouncils. ACHIEVEMENTSANDWORKINPROGRESS Ladies and Gentlemen, one of the unintended side effects of the concentration on trade and economic aspects of our integration movement has been the tendency to judge the success of the entire movement by the efforts in those areas. Indeed in some quarters, the effectiveness of
CARICOM is judged on issues related to the movement of persons or merchandise trade balances. This view is at odds even with the economic reality, given the important contribution that trade in services is making to the Region. While these issues need to be addressed, it is unfortunate that thesearethecriteriaoftenusedinthecourtofpublicopinion,sincesomuchelsehasbeenachieved in the past 40 years. It has also had the effect of minimising the important role of human and social developmentinoursocieties.Therehavebeenseveralnotableachievementsinthisarea. In recognition of the importance of Health to the development of our Community, the Heads of Government set up the Caribbean Commission on Health and Development under the leadership of the Chancellor of this University, the Honourable Sir George Alleyne, OCC. The Commissions report in 2007, made the point that a healthy population is an essential prerequisite for the economic growth and stability of the Caribbean and stressed the importance of health to achieving the goals ofeconomicdevelopmentasenunciatedinourTreaty. Theseriousimplicationsofnoncommunicablediseases(NCDs)werepointedoutbytheCommission which identified one Member State in which the combined cost of dealing with diabetes and hypertension, two of the NCDs, amounted to more than US$58 million annually, an indication of the economic burden that these diseases place on our countries. It was due to leadership by CARICOM, that the ravages of the NCDs commanded global attention and action, prompting a UN High Level Forumontheissuein2011. In order to efficiently address the public health concerns of the Region, five regional agencies were amalgamated to form the Caribbean Public Health Agency (CARPHA). CARPHA will, among other things,addressthesurveillanceandmanagementofcommunicableandNonCommunicableDiseases and public health response to disasters,. This week, the Agency is facing its first test with the outbreakofH1N1inatleastthreecountries. Faced with the threat posed by HIV/Aids to our Region, and the youth population in particular, the Pan Caribbean Partnership against HIV and AIDS (PANCAP), established by CARICOM in 2001, has madeacriticalimpacton reversingandstabilizing thespreadoftheAIDSepidemicintheCaribbean. The Caribbean also stands to be the first region in the world to eliminate mothertochild transmission of HIV by 2015. This is largely due to its unique governance arrangements, for which it wasdesignatedaUNBestPracticein2004. The Caribbean Examinations Council (CXC), an institution of our Community, celebrating its 40th anniversary this year, continues to provide regionally and internationally recognised examinations
and curricula relevant to the needs of the Region, among a raft of education services. Some of their innovativemethodshavebeenstudiedandintroducedinthirdcountries. Beyond academics, the Community has developed the Caribbean Vocational Qualification (CVQ) to establish standards and to provide our artisans and tradespersons with a qualification recognised throughouttheCommunity.InordertobetterpositiontheRegiontobemorecompetitive,emphasis is placed on developing quality human resources through the provision of technical and vocational trainingtoprovidetherequisiteskillsthatwouldsatisfythedemandsoftheworkplace.TheCVQhas the potential to ensure that the Community has available to it, a regional pool of certified skilled persons. It puts the opportunities of the CSME within reach of many, given its inclusion in the free movement of skills regime in certain specified fields. It gives the lie to those who contend that the movementofskillsisreservedfortheelite. Ladies and Gentlemen, the Youth of our Community deserve special attention. Following the Report ofaCARICOMCommissiononYouthDevelopmentin2010,afiveyearCARICOMYouthDevelopment Action Plan (CYDAP) has been created to give expression to the six CARICOM Youth Development Goals which underpin the Paramaribo Declaration on the future of youth in the Community. The Commission on Youth Development was established by Heads of Government, and following consultationswithyouthsthroughouttheCommunity,providedafullscaleanalysisofthechallenges and opportunities for youth in the CSME and made recommendations on how to improve their well beingandempowerment. The Action Plan spans the areas of: education and economic empowerment; universal access to secondary education by 2016; reshaping of national education policies to reflect the life cycle approach to learning; and the establishment of integrated programmes providing employability skills,transitionskillsandentrepreneurialskillsforyouthinandoutofschool. TheSecretariatiscollaboratingwiththeCARICOMYouthAmbassadorsandDevelopmentPartnersto engage, motivate and inspire entrepreneurial interest and action among youth, and to increase livelihoodopportunitiesandemployabilityforeconomicallyandsociallymarginalizedyouth. TheYouthofourRegionismakingasignificantcontributionintheareasofsports,musicandculture inparticular,allofwhichcontributetoemploymentanddevelopmentofourregionaleconomy.
The Region does have a comparative advantage in culture, due to our acknowledged creativity for which we are known and respected internationally. Culture is central to the promotion of regional identity and unity, and an important component in the regional integration construct. One way that the people of the Region will feel connected and intensely Caribbean, with a strong sense of community and identity, is by unleashing creative and cultural appreciation, imagination and production. The development of cultural and creative industries has been identified as one of the priority areas for job creation and growth. The diversification of Caribbean economies through these innovative, indigenousindustriesshouldbeviewedasanindispensablecomponentofanydevelopmentstrategy to assist Member States to make the necessary adjustments to survive in this globalised environment. The cultural and creative industries therefore present significant opportunity for building competitive export industries using local talents and resources. We now have a Regional DevelopmentStrategyandActionPlanfortheCulturalIndustries. In response to the increasing frequency and intensity of natural disasters in our Community, we establishedamechanismtocoordinatepreparednessforandreliefintheeventofanaturaldisaster, through the Caribbean Disaster Emergency Management Agency (CDEMA). Their Comprehensive Disaster Management System has proven its value both in the preparation for disasters and in the aftermathwithitscoordinationofreliefefforts. Tostrengthenreliefeffortswehavealsocreatedthefirstmulticountrydisasterinsuranceschemein the world, through the Caribbean Catastrophe Risk Insurance Facility (CCRIF). This is a notforprofit entity, owned, operated and registered in the Caribbean for Caribbean governments. It has been able to limit the financial impact of some catastrophic natural disasters to Caribbean governments, byquicklyprovidingshorttermliquiditywhenapolicyistriggered. Well before climate change became a global issue, our Community began to address the need to mitigate the effects of and adapt to this phenomenon. Through the work of the Caribbean CommunityClimateChangeCentre(CCCCC),theCommunityhasbecomeveryinfluentialintheglobal response to climate change, including in the formation of the Climate Fund. The work of the Centre in providing climate changerelated policy advice and guidelines to CARICOM Member States has been outstanding, so much so that the Centre has also been identified as a best practice internationallyandnowlendsadviceandassistancetootherthreatenedregions. In the area of Foreign Policy coordination, CARICOM has demonstrated that its influence in international affairs has far exceeded its size. Our experience has shown that when we act in concert, our collective voice in the international community is greater than the sum of its parts.
Another element of this coordination is securing the election of CARICOM candidates for positions ininternationalorganisationsinordertoinfluencetheinternationalagenda. WehaveseenthefruitsofsuchanapproachinrecenttimesthroughthepromotionofNCDsandthe plight of Small Highly Indebted Middle Income Countries among others, put on the table by CARICOM, as major components for consideration in the Post 2015 Development Agenda. The leading role played by CARICOM in advocating for the Arms Trade Treaty at the UN, was because of ourdeepconcernabouttheprevalentuseoffirearmsbycriminalsinoursociety. It was also CARICOM which led the way for the recognition of small and vulnerable economies as a groupwithintheWorldTradeOrganisation. Additionally, the Community used its leverage to have the International Civil Aviation Organisation adopt the community of interest principle under which a country belonging to a grouping such as CARICOM, and which has no airline of its own, could designate an airline of another member of the grouping to use its route rights in the conclusion of air services agreements. That has been of inestimablevaluetoairlinesbasedintheRegion. We are therefore seeing that our foreign policy coordination can be used to address regional and national problems. Our increasing coordination in foreign policy has resulted in the recognition of CARICOM as an international actor. This recognition has led to an increasing number of states seeking closer ties with the Community. Last May was the latest example of this reality when, within the space of a week, the President of China and the Vice President of the United States both came to Trinidad and Tobagotomeetwithregionalleaders. Tomakeoptimumuseofsuchopportunities,theCommunityhasestablishedandidentifiedthebasic principles as well as the operational modalities to inform the conduct of its foreign policy coordination. One of the fundamental principles is that the pursuit of our development goals and interests must shape our external outreach. Also of importance, is that in todays fast paced and globalized world, foreign relations are no longer the preserve of Foreign Ministries. Community foreign policy coordination therefore requires the harmonisation of messages and policies at the nationallevelbetweenForeignMinistriesandlineministries. Ihavetakentimetoillustratesomeoftheachievementsandsomeoftheissuesthatweareworking on as a Community. They show that he pooling of our skills and resources to bring about improvements in our circumstances and the lives of our citizens stands as testimony to the benefits ofintegration.
THECHALLENGES LadiesandGentlemen,notwithstandingourachievements,ofwhichIamproud,andplans,thereare serious challenges which need to be addressed if we are to move the integration process forward andmakeitmoremeaningfultothepeopleofourCommunity.Someofthesechallengesinclude, sustainableeconomicgrowth; transportation; hasslefreetravel; thehighcostofenergy;and equitabledistributionofthebenefitsofintegration,whichifnotadequatelyaddressedcould leadtodiscontent. As we move to address those challenges, we must reach to the realisation that our national growth and development is inextricably tied to regional growth and development. Regional policies and national policies must be so intertwined as to be almost indiscernible. It is in that actualisation that ourcitizenswillfeelmostacutely,thatsenseofbeingpartofaCommunity. THEFUTURE A major realisation in going forward is that the current and future situation demand that we change ourmodusoperandiandcrucially,thewaywethinkaboutintegration.Onceagainweareatanother junctureintheprogressionofourregionalintegrationmovement. Our capacity to respond to the various challenges and to exploit such opportunities as they may bring,dependinsignificantmeasure,ontheextenttowhichourarrangementscanbestrengthened. Itwillrequirefirstofallconsistentandpositiveengagementintheareasselectedforpriorityaction; secondly,effectivedecisionmakingmachinery;andthirdly,thecapacitytodeliver.
Instituting change is never easy and is more difficult if it is attempted in the face of entrenched attitudes and structures. That notwithstanding, the Community is engaged in a three year reform process that encompasses every facet of its operations. In short we are changing the way we do business. Heads of Government agreed in March 2012 that since form followed function, it was necessary to reexamine the future direction of the Community and the arrangements for carrying this forward. This includes the role and function of the CARICOM Secretariat and the Institutions of theCommunity. A Change Facilitation Team has been recruited to assist me with this process of change. The Team is currently undertaking consultations in Member States on the first ever Strategic Plan for the Community. These country Consultations provide an opportunity for nationals of each Member StateandAssociateMembertoinfluencethestrategicdirectionoftheCommunity,theirCommunity, our Community. The five year Strategic Plan will set out a common vision and identify our priority areasoffocusovertheperiod. Critically, it will also address issues of implementability including the roles and responsibilities of all participants in the Community architecture: namely the Conference of Heads of Government; the Ministerial Councils; the Bodies, such as the Committee of Central Bank Governors and the Budget Committee; the CARICOM Secretariat; and the Institutions; as well as issues of governance, institutionalandoperationalarrangementsandmonitoringandevaluationmechanisms. The Consultations on the Strategic Plan are not starting with a blank slate. They are drawing on approved policies and programmes as a starting point. These include the 2007 Single Development Vision; the Strategic Plan for Regional Economic Development, on which there was close collaboration between the Secretariat and UWI; the priorities articulated by Heads of Government themselves at their retreat held in Guyana in May 2011; and approved policies and action plans in a rangeofareas,suchasagriculture,energy,industry,security,health,youth,ICTandClimateChange, tonameafew.Thesepoliciesandprogrammesarethentakeninthecontextoftherapidlychanging globalenvironmentthatimpactsourMemberStates,tochartthewayforward. Witheightconsultationscomplete,commonthemesareemerging.Includedamongtheseare: The need to address economic recovery and growth as a core strategy over the next five years;
The need to strengthen governance and decisionmaking arrangements, beginning with the HeadsofGovernmentConference,tosecureamoreeffectiveCommunity; The need to solve the challenges with interregional transport, the free movement of personsincludinghasslefreetravel,ascriticalsuccessfactorsforregionalintegration; TheneedtosecuretheRegionsfuturethroughtargetedinterventionsinagricultureforfood security,energysecurity,education,healthandICT; The need to reignite the fire of regionalism among our Caribbean people, through shared understandingandbuildingofasenseofCommunity; Theneedtocommunicatefullyandconsistentlywiththepeopleontheissuesofintegration; and The need to embrace and optimise the diversity of the people and Member States that lend toourstrengthasaunifiedRegion.
As indicated, some of the sectoral issues had already been identified by Heads of Government as criticalareasandappearinsomeforminthenationalplansofmostMemberStates. It is clear from the consultations, that the people of CARICOM remain committed to realising the potential of our integration movement, our single but diversified space, and even eventually our UnitedStatesoftheCaribbeanasithasbeendescribedinsomeoftheconsultations. OnthebasisoftheStrategicPlan,thereviewandrestructuringoftheSecretariat,andindeedOrgans and Institutions of CARICOM, will be addressed to enable the construct to deliver in a much more focussedandeffectivemannertothepeopleoftheCommunity. This reform process is central to the future of the integration movement and Prime Minister Anthonys call for a big conversation could not be more timely. It would be, he said, an opportunity to chart a new paradigm for growth, review the role and performance of our regional institutions to determine how they can help in these times and better assist us to restore growth to oureconomies. ThatbigconversationhasbegunandasaformerPrimeMinisterofthiscountrysaidincallingforthe establishment of the West Indian Commission, let all ideas contend. It affords an opportunity, for
example, for a new generation of intellectuals from UWI, and other universities and organisations in theRegion,tooffertheirviewsandprescriptions. In such a conversation, voices from our civil society must be heard as the call for participatory governance in the consultations is a clear sign that the top down form of integration will not be acceptedbyourpeople. In joining that conversation we must be prepared to examine every aspect, principle and underlying philosophy that has guided this integration movement. Should we seek to widen our fold and embrace more of our Caribbean neighbours or should we concentrate on deepening our arrangements? Can we achieve both at the same time? What are the implications for the Single Marketasweforgeahead,aswemust,withtradearrangementswithThirdStates?Shouldsanctions be introduced as a means of enforcing compliance with Treaty provisions and decisions? What are themostappropriategovernancearrangementswhichwemustputinplaceinorderforustorealise our full potential as a Community? And what would be the implications for such governance arrangementsinawidenedCommunity? These questions and others must form part of the introspection that admittedly has as its fundamentalpremise,thatregionalintegrationisthebasisfornationaldevelopment. VISION Ladies and Gentlemen, two years and six weeks ago, I assumed the position of SecretaryGeneral of the Caribbean Community expressing in my inaugural statement that while there was cynicism in somecases,acommonthreadwasacommitmentandbeliefinourintegrationmovement,aswellas hope for change. I said then, it was a hope as SecretaryGeneral I would strive to fuel. That hope is what guides my long term vision for our Community. It is also guided by the optimism and enthusiasm for CARICOM, by our youth in particular. It has been heartening and humbling to experience, atfirsthand,inmyinteractionwiththeyoungpeopleinevery MemberStatethatIhave visited, their desire for integration and their impatience for it to become a lived experience. I have witnessed at first hand, what Prime Minister Anthony referred to, as the integrating power of the peopleacrossourRegion. Primarily,itwouldbeaCommunityinwhichallareinvolved.Therewouldbeasystemofmeaningful consultations from which a free flow of ideas emanate, allowing for the distillation of the best and
mostpractical.Thiswouldhelptocapturetheimaginationandinterestofallandallowthepeopleto seize a stake in the integration process allowing for the sense of being Caribbean to take precedenceoverallelse.Itwouldalsoleadtomoreefficientimplementationofdecisionshavinghad thebenefitofthewidestpossibleinput. ItwouldbeaCommunityinwhichregionalplansandpoliciesareharmonisedwithnationalplansand policies.Thenationalwouldbecomeregionalandtheregionalnational. We would have deepened the integration process, with a single economic space a reality, and a closerconvergenceofeconomicpolicies. Ideally those issues that are important to the people of the Community would have been resolved. I speak here of hassle free travel, free movement, currency convertibility, and contingent rights. We have to create a Community in which the people have tangible proof that integration is working for them and that their domestic space extends from Belize in the west to Barbados in the east, from Suriname in the south to The Bahamas in the north and all in between. This would mean being able to travel freely, change their currency and have the families who move, treated to all intents and purposes,ascitizensoftheiradoptedcountry. To achieve such goals we must frankly discuss andresolve the concerns of all Member States. These concernsarerealasitrelatestofreemovementinparticular. I would like to see our foreign policy coordination strengthened as a means of achieving our developmentgoals. IwouldliketoseetheCCJembracedbyallMemberStates,inbothitsjurisdictions,asasteptowards completingthecircleofsovereigntyfortheRegion. I would like to see a single CARICOM ICT Space, in which a telephone call from Port of Spain to Kingstonisalocalcallandbroadbandisubiquitousandeasilyaccessibletoall
Iwouldliketoseeacommunitythathasachievedsustainablegrowthanddevelopment,wherethere is confidence and belief in where we can go, and what we can achieve together, where its institutionsareseenasreliantandintegraltoachievingourgoalofaCommunityforall. I intend to deliver a Secretariat that is strategic in outlook and efficient, effective and responsive in servingtheneedsofitsMemberStatesandprovidingleadershiptotheintegrationarrangements. I would like to see, a Community therefore, that makes maximum use of its human resources, technology, international relations and secures the commitment of all its citizens to the integration process. Thetaskisourstomakethisintegrationmovementsomuchalivedexperiencethatournaturalstate becomesoneofunity.ItisatasktowhichIhavededicatedmyselfandinviteyoutojoinme.

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DistinguishedLecture By AMBASSADORIRWINLaROCQUE SECRETARYGENERAL CaribbeanCommunity OnthestatusoftheRegionalIntegrationProcess and VisionfortheFutureofCARICOM PortofSpain,TrinidadandTobago 3October2013

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