REGIONAL INTEGRATION
4th Form Social Studies
WHAT IS
REGIONAL It is the unification of
INTEGRATIO countries through
N? economic agreements
which promote free
trade between them by
the removal of barriers
to trade.
WHY IS REGIONAL
INTEGRATION NECESSARY?
Yes!
Caribbean countries need to work together to
develop policies to survive in a world in which the
restrictions which prevent the free flow of goods,
services, and capital throughout the world are being
removed.
GLOBALIZATION
The process by which the world separate
economies are becoming interconnected
as a result of the improvements in
transportation and communication and the
removal of barriers to trade and the flow
of capital and information.
COOPERATING COUNTRIES
More Developed Country Less Developed Country
(MDC) (LDC)
A country which has more A country which is heavily
infrastructure, more dependent on agriculture
competitive industries, and and lacks competitive
more exploitable resources industries, infrastructure,
than those countries and exploitable natural
considered less well off. resources.
FACTORS
PROMOTING
REGIONAL
INTEGRATION
Common cultural heritage
Common economic and social
issues
Effects of globalization, trade
liberalization and trading blocs
Vulnerability to economic shocks
and natural disasters
CHALLENGES
FACING THE
CARIBBEAN
REGION
Small size
Debt burden
Limited range of products
Difficulty in exporting to international markets
Unemployment and poverty
Shortage of skilled labour
Vulnerability to natural disasters
Lack of diversification
Inadequate technology
Low level of productivity
GLOSSARY (COOPERATION)
1. Bi-lateral agreement: an agreement between two group or two countries.
2. Multi-lateral agreement: an agreement among many groups or
countries.
3. Custom’s union: an agreement between neighbouring countries to
remove trade barriers, and reduce or eliminate customs duty on mutual
trade.
4. Federation: (political union): a group of countries or states that have
joined together to form a single group. The group is recognized
internationally as a single political entity.
TRADE LIBERALIZATION
The removal of or the
reduction of trade practices
that restrict the free flow of
goods from one country to
another.
REGIONAL INTEGRATION IN THE CARIBBEAN REGION
Attempts Meaning Start - End Aims/Objectives (3) Members Reason(s) for
(acronym) failure
(where applicable)
West Indian
Federation
CARIFTA
CARICOM
OECS
CSME
ACS
GLOBALIZATION
BENEFITS OF REGIONAL
INTEGRATION:
A. Reduction in unemployment and under-employment
B. Better response to economic implications of globalization and
trade liberalization
C. Improvement in the quality of life
D. Reduction in inequality of wealth distribution.
BENEFITS OF REGIONAL
BENEFITSINTEGRATION:
OF REGIONAL
INTEGRATION:
E. Free movement of goods, labour and capital
F. Increased market size
G. Improved levels of international competitiveness
H. Expansion of trade
I. Increased co-operation among member states.
FACTORS HINDERING
REGIONAL INTEGRATION:
a) Geography of region
b) Absence of common model or strategy for development
c) Differences in stages of growth and development
d) Competition for location of industries
FACTORS HINDERING
REGIONAL INTEGRATION:
e) Conflict between territorial and regional demands and
loyalties.
f) Absence of common currency
g) Unequal distribution of resources
h) Lack of diversification from production
i) Influence of multinational corporations.
Role of Individual citizens, business organizations and government in the
integration process.
Individual citizen Entrepreneurship
Supporting regional producers
Showing solidarity and mutual support towards regional fellow
citizen.
Investing in local and regional businesses
Being informed
Business organization Improving competitiveness
Increasing range and quality of goods and services
Providing opportunities for investment and employment
Government Enacting/enabling legislation
Harmonizing policies
Honouring protocols
Educating citizens about objectives and benefits of integration
EFFORTS IN REGIONAL
INTEGRATION
(A) West Indian Federation: 1958 - 1962
(B) CARIFTA 1968 – 1973
(C) CARICOM: 1973
(D) Organization of Eastern Caribbean States (OECS): 198
(E) CSME 1989
(E) Association of Caribbean States: 1995
West Indian Federation CARIFTA (Caribbean Free trade
Association)
Members Antigua, Barbados, Grenada, Dominica, Jamaica, Guyana, Trinidad & Tobago, Barbados, St.
Montserrat, St. Kitts & Nevis/Anguilla, St. Vincent, Vincent, St. Lucia, Dominica, Montserrat,
St. Lucia, Trinidad & Tobago Antigua, , St. Kitts & Nevis/Anguilla, Jamaica,
Belize
Aims & To strengthen the movement of self-government To foster economic and social development by
Objectives To promote economic development encouraging trade among members states. This
To safeguard the democratic system of involved the removal of custom duties, taxes,
government vis-a-vis dictatorship and licensing arrangements which previously stifled
communism greater volumes of trade among the region.
Reason for Lack of knowledge on the importance of Unlike federation, CARIFTA did not fail.
failure federation. Numerous trade and cooperation occurred
Inefficient communications between the islands between states. Therefore, CARIFTA was
including shipping, telephone and postal. enlarged and deepen by forming CARICOM in
Envy and jealousy among member states 1973.
stemming from their various levels of economic
prosperity.
Distrust of smaller states of larger states.
