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
(MDC)
A country which has more
infrastructure, more
competitive industries, and
more exploitable resources
than those countries
considered less well off.
Less Developed Country
(LDC)
A country which is heavily
dependent on agriculture
and lacks competitive
industries, infrastructure,
and exploitable natural
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
Members Antigua, Barbados, Grenada, Dominica, Jamaica,
Montserrat, St. Kitts & Nevis/Anguilla, St. Vincent,
St. Lucia, Trinidad & Tobago
Aims &  To strengthen the movement of self-government
Objectives  To promote economic development
 To safeguard the democratic system of
government vis-a-vis dictatorship and
communism
Reason for  Lack of knowledge on the importance of
failure federation.
 Inefficient communications between the islands
including shipping, telephone and postal.
 Envy and jealousy among member states
stemming from their various levels of economic
prosperity.
 Distrust of smaller states of larger states.
CARIFTA (Caribbean Free trade
Association)
Guyana, Trinidad & Tobago, Barbados, St.
Vincent, St. Lucia, Dominica, Montserrat,
Antigua, , St. Kitts & Nevis/Anguilla, Jamaica,
Belize
To foster economic and social development by
encouraging trade among members states. This
involved the removal of custom duties, taxes,
licensing arrangements which previously stifled
greater volumes of trade among the region.
Unlike federation, CARIFTA did not fail.
Numerous trade and cooperation occurred
between states. Therefore, CARIFTA was
enlarged and deepen by forming CARICOM in
1973.