Professional Documents
Culture Documents
DEFINABLE CHARACTERISTICS OF
THE CARIBBEAN REGION
1. LIMITED NATURAL RESOURCES
a) Minerals (T&T has oil, Jamaica has bauxite)
b) Agriculture-based economies (fertile soils: sugar,
bananas, arrowroot, ground provisions)
c) Tropical climate: suitable for agriculture and tourism
2. DEPENDENCE ON TOURISM
– Historical sites, scenic beauty: eco-tourism (nature
trails, bird watching, mud volcanoes etc)
– Tourism industry is characterized by fickleness e.g.
H1N1 outbreak in Barbados can cause major losses
in the hotel industry
– Present world economic and financial crisis crippling
tourist industry worldwide
– Price fluctuations etc can lead to major losses of
foreign exchange revenues
3. PRONE TO NATURAL DISASTERS:
– e.g. hurricanes , floods and earthquakes which
destroy property and cause economic setbacks
(Grenada)
Globalisation
could involve
all these
things!
Integration of Economies
• The increasing reliance of
economies on each other
• The opportunities to be able to
buy and sell in any country in the
world
• The opportunities for labour and
capital to locate anywhere in the
world
• The growth of global markets in
finance
• Characteristics:
– Expanding revenue
– Lowering costs
– Sourcing raw materials
– Controlling key supplies
– Control of processing
– Global economies
of scale
1958-1962
The West Indian Federation was
one of the first major attempts at
regional integration in the
Caribbean (1958-1962)
10 Member States
1. Antigua
2. Barbados
3. Dominica
4. Grenada
5. Jamaica
6. Montserrat
7. St. Kitts/Nevis/Anguilla
8. St. Vincent
9. St. Lucia
10.Trinidad and Tobago
AIMS AND OBJECTIVES OF THE WEST INDIAN
FEDERATION
1. To generate ideas to solve their social and
economic problems
– Sugar industry in decline (unprofitable)
– Shortages of goods & high prices after WW2
– Low wages
– High unemployment
– Poor social facilities (hospitals, schools,
utilities)
CHEAPER GOODS
AND SERVICES
SAVINGS IN
GREATER PRODUCTION TO
FOREIGN
MEET DEMAND
EXCHANGE
BENEFITS OF COMMON POLICIES
1. Greater bargaining power through a united voice
– better price for extra-regional exports
– Cheaper prices for imports
2. Preferential Rates and Special Quotas can be
arranged for CARICOM goods entering the
European Union (EU) and the United States (US)
(especially agricultural goods such as bananas,
sugar, rum)
3. Reduced competition in attracting foreign
investment leading to better deals with foreign
investors
BENEFITS OF FUNCTIONAL
COOPERATION
1. METEOROLOGY: Caribbean Meteorology
Organisation located in T&T collects weather
information and transmits it to the other
CARICOM states
2. HEALTH: CAREC (1975) – Caribbean
Epidemiology Centre: conducts research into
certain communicable diseases e.g. polio,
typhoid, cholera, AIDS
3. ENVIRONMENTAL HEALTH: CEHI (1988) –
Caribbean Environmental Health Institute
– Preservation and protection of the environment (air,
land, water)
– Solutions for disposal of toxic waste
– Coastal and marine pollution
– Testing quality of drinking water
– Collection and treatment of waste water
4. NATIONAL DISASTERS: CDERA – Caribbean
Disaster Emergency Response Agency (1991)
– Hurricanes, earthquakes, flooding, volcanic eruptions
– Coordinates relief in response to natural disasters
– Provides assistance rebuilding after a disaster
5. AGRICULTURE: CARDI (1975): Caribbean
Agricultural Research Development Institute
(UWI, St. Augustine)
– Develop systems to improve productivity in
agriculture
– Establish farming techniques to meet the needs of
small farmers
– Lower production costs in agriculture
– Undertake research to find solutions for plant
diseases
– CARDI is funded by CARICOM governments, the CDB
and other international lending agencies
* The Caribbean region depends heavily on
agriculture for export and local consumption
but various problems have stifled the sector
resulting in a high food import bill.
Achievements of CARDI
• Developed a special variety of tomato suited to
local conditions (CALYPSO)
• Provided solutions for brown spot disease which
affects yams
• Established systems to increase peanut
production in St. Vincent
• Developed feeds/rations for animals using locally
available by-products
• Developed pesticides for the sugar-cane moth
borer, the sugar cane mealy bug and the diamond
back moth which attacks cabbage
Some Institutions of CARICOM
7. CEHI: Caribbean
1. CARDI: Caribbean
Environmental Health
Research and
Institute
Development Institute
8. CDEMA: Caribbean
2. CXC: Caribbean
Disaster Emergency
Examinations Council
Management Agency
3. CAREC: Caribbean
9. CCJ: Caribbean Court
Epidemiology Centre
of Justice
4. RSS: Regional Security
10. CMO: Caribbean
System
Meterological
5. CFNI: Caribbean Food Organisation
and Nutrition Institute
ASSOCIATE INSTITUTIONS OF CARICOM
1. Organisation of Eastern Caribbean States (OECS)
2. Caribbean Development Bank (CDB)
– Located in Barbados.
3. Caribbean Law Institute (CLI)
– Located in Barbados. Promotes law reform in the
Commonwealth Caribbean.
4. University of the West Indies (UWI)
– 1948, Mona, Jamaica
– 1960, St. Augustine, Trinidad and Tobago
– 1963, Cave Hill, Barbados
5. University of Guyana (UG)
CDB
1. Provides assistance to CARICOM sates affected by disasters
2. Stimulates and encourages the development of capital
markets
3. Promotes public and private investment in development
projects
4. Provides aid to financial institutions in the region
5. Finances projects and programmes to foster development
6. Provides technical assistance such as pre-investment surveys,
project proposals and preparation
7. Mobilizes additional financial resources for regional
development
BENEFITS OF CARICOM
1. Creates more employment for CARICOM nationals
2. Goods imported from member states cost less
3. Greater unity and friendliness among member states
4. Assistance to members States in times of natural and
national disasters
5. Crime fighting through the Regional Security Service
6. Culture boosted through CARIFESTA
7. Regional cooperation in sporting activities enhances
the skills and talents of our sportsmen and women
8. Greater cooperation among member states through
the Caribbean Media Corporation
9. Exploitation by transnational corporations is reduced
CARICOM SINGLE MARKET AND
ECONOMY (CSME)
1989…
Main objectives of the CSME
The main objectives of the CSME are:
1) Right of Establishment
2) A Common trade policy
3) A Common External Tariff
4) Free circulation
5) Free movement of goods and services
6) Free movement of capital
7) Free movement of labour
8) Harmonisation of Laws and common economic, monetary
and fiscal measures
Key elements of the Single Market and Economy
1. Right of Establishment - to permit 5. Free movement of goods and
the establishment of CARICOM services - through measures such as
owned businesses in any Member eliminating all barriers to intra-
State without restrictions; regional movement and harmonising
standards to ensure acceptability of
2. A Common trade policy - agreement goods and services traded;
among the members on matters
related to internal and international 6. Free movement of Capital - through
trade and a coordinated external measures such as eliminating foreign
trade policy negotiated on a joint exchange controls, convertibility of
basis; currencies (or a common currency)
and integrated capital market, such
3. A Common External Tariff - a rate of as a regional stock exchange;
duty applied by all Members of the
Market to a product imported from a 7. Free movement of labour - through
country which is not a member of the measures such as removing all
market; obstacles to intra-regional movement
of skills, labour and travel,
4. Free circulation - free movement of harmonising social services
goods imported from extra regional (education, health, etc.), providing
sources which would require for the transfer of social security
collection of taxes at first point of benefits and establishing common
entry into the Region and the standards and measures for
provision for sharing of collected accreditation and equivalency.
customs revenue;
• The CARICOM Single Market and Economy
(CSME) is operating at about sixty-four
percent (64%) overall level of compliance.
1. Functional cooperation
2. Integration of the economies of the member
states
3. Harmonization of foreign policy
Objectives of the CARICOM Single
Market
1. Free movement of goods and services
2. Right of establishment
3. Free movement of capital
4. Free movement of skilled labour
Objectives of the CARICOM Single
Economy
Harmonization of:-
• Fiscal (tax) policies
• Monetary policies (including a single
CARICOM currency)
• External trade policy
• Legislation (custom, companies)
• Sectoral policies in agriculture,
manufacturing and fisheries
Objectives of the Regional
Development Fund
• CARICOM is divided with a group of smaller
states belonging to the Organization of Easter
Caribbean States. The OECS countries have
called for the establishment of the Regional
Development Fund to assist them to
overcome any economic difficulties that their
participation in the Caribbean Single Market
and Economy may have on their individual
economies.
• Define the following terms and concepts related to regional
integration:
– Bilateral agreement, multilateral agreement, common market, single
market, single economy, economic integration, independent state,
underdeveloped country, developing country, developed country,
trade liberalization, globalization, multinational corporation,
regionalism, trading bloc, fiscal policy, monetary policy
• Major challenges facing the Caribbean Region
• Major stages in the integration movement
• Functions of the various organizations (OECS Secretariat, CARICOM
Secretariat, Conference of Heads of Government)
• Objectives of the various organizations: OECS, CARICOM, CSME
• Factors that promote regional integration
• Factors that hinder regional integration
• Benefits of regional integration
• The role of individuals, businesses and government in the
integration process
• The role of regional agencies in the integration process
Factors that promote regional integration
• Common history
– Colonialism, slavery and indentureship
• Common cultural heritage
– Language, dress, cuisine, music, general
lifestyle
• Close proximity
• Common economic and social issues
• Effects of globalization, trade liberalization
and trading blocs
• Vulnerability to economic shocks and natural
disasters
Factors that Hinder Regional Integration
1. Geography of the region
Caribbean countries are separated by water and inter-island transport is not always
easy.
2. Absence of a common strategy for development
Different emphases on strategies for growth: one depends on petroleum, some on
tourism, others on agriculture (common policies difficult to achieve)
3. Differences in stages of growth and development
4. Competition for location of industries
Territorial interests often supercede regional ones eg the countries compete among
themselves to attract foreign investors
5. Absence of common currency and non-acceptance of each other’s currency
6. Fear of political integration
7. Unequal distribution of resources
the more developed member states that are fortunate to have mineral resources
often utilize income gained from this wealth only for their country’s benefit rather
than shared regional benefit.
Factors that Hinder Regional Integration
8. Influence of MNCs / TNCs
TNCs still bargain with individual governments for tax-free holidays, duty free import of
raw materials, repatriation of profits etc in contravention of CARICOM objectives
10. Insularity
11. Delayed implementation of policies agreed on at meetings of regional
heads
12. Citizens know little about CARICOM organizations and what they do
13. Poor information dissemination, slow implementation and ratification
of plans
14. Poor media coverage
Insufficient information about CARICOM countries in newspapers, on radio and cable
television
Benefits of Regional Integration
1. Reduction in unemployment and underemployment
2. Better response to globalization and trade
liberalization
3. Improvement in the quality of life
4. Reduction in the inequality of wealth distribution
5. Free movement of goods, labour and capital
6. Increased market size
7. Improved levels of international competitiveness
8. Expansion of trade
9. Increased cooperation among member states
10. Increased chances of achieving sustainable
development
The Role of Individual Citizens
in the Integration Process
Entrepreneurship
Supporting regional producers
Showing solidarity and mutual support
towards regional fellow citizens
Investing in local and regional businesses
Being informed
The Role of Businesses in the
Integration Process
Improving competitiveness
Increasing range and quality of goods
and services
Providing opportunities for investment
and employment
The Role of Government in the
Integration Process