Regional Integration Key to Caribbean Development

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Study Companion for CXC CSEC Social Studies Exam Based on the CXC CSEC Social Studies Syllabus (Effective May/June 2010) Section B: Sustainable Development and Use of Resources (2) Regional Integration
1: Concepts and Terms Associated With Regional Integration

Bilateral Agreement - An agreement between two groups, countries or nations Multilateral agreement - Agreement among many groups, countries o nations. Common Market - An economic unit, formed of nations , intended to eliminate or markedly reduce trade barriers among its members Single market - A group of countries that have few or no restrictions on the movement of goods, money and people between the members of the group
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A+ Academic Solutions Social Studies Study Companion Section B2. Regional Integration
Economic integration - the process by which the economies of a group of countries are drawn more closely together so that the group as well as the individual countries becomes stronger or more developed. Independent State - self-government of a county , nation or state by its residents and population Underdeveloped country - a relatively poor country with little or no material wellbeing. Developing country - a country that has not yet reached the stage of economic growth to stand on its own for further growth. Developed country - a country that has high level of development and high gross domestic product (GDP) per capita. Trade Liberalization - the movement towards the removal of trade barriers among the members of the World Trade Organization (WTO) Globalization - the process by which countries all over the world are becoming connected or similar because large companies are doing business in many different countries. Multinational Corporation - Sometimes called transnational corporation is a corporation or enterprise that manages production and delivers services in more than one country. Regionalism - the expression of a common sense of identity and purpose combined with the creation and implementation of institutions that express a particular identity and shape collective action within a geographical region. / Development of a political or social system based on a distinct region with a homogeneous population Regional Integration - A number of groups, societies or countries within an area joining together to cooperate
and operate under one system or as one group
Trading Bloc - made up of a large number of countries, with the same political and economic aims, linked by special trading arrangements among them. Free trade Area - an arrangement whereby a group of countries agrees to remove the tariff and non-tariff barriers to trade among them. Free Trade Area of the Americas (FTAA) -The FTAA is an expansion of NAFTA. It is an organization of 34 countries of the Americas including North and South America, Canada and the Caribbean except for Cuba. North American Free Trade Agreement (NAFTA) - This agreement allows duty free entry of goods among Canada, United States and Mexico. Intra-Regional Trade - countries in the region buying locally produced goods from or selling locally produced goods to, other countries in the region. Fiscal Policy - the use of government spending and revenue collection to influence economy. Monetary Policy - the process a government, central bank or monetary authority of a country uses to control the supply of money, availability of money and cost of money or rate of interest to attain a set of objectives oriented towards the growth of the economy. Caribbean Basin Initiative (CBI) - CBI allows certain Caribbean and Central American products duty free entry into the United States. Products exported include chemicals, manufactured goods, fresh fruits and vegetables.
A+ Academic Solutions CXC CSEC -Social Studies - Section B Sustainable Development and of Resources Regional Integration
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World Trade Organization (WTO) - The WTO is an international organization that monitors and regulates trade among the nations of the world based on trade agreements by member states. The WTO replaces the General Agreement on Tariffs and Trade (GATT). -----------------------------
2: The Major Challenges Facing the Caribbean Region Caribbean countries face similar economic problems, for example, the difficulty of getting imports priced to a level they can afford as well as the difficulty competing with their exports. Also most Caribbean countries lack the proper local infrastructures to create suitable employment for their populations. Major Challenges: (a) Small size, small national markets (b) Lack of diversification (c) Unemployment and underemployment Unemployment - (or joblessness) occurs when people are without work and actively seeking work. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. Globalization has contributed significantly to unemployment in the Caribbean. With the removal of trade barriers, some industries have not been able to compete globally. The lack of adequate skills that are required for the new industrial paradigm for example, information technology skills have also contributed to the problem of unemployment. A high level of unemployment among the young people of the Caribbean may results in various social problems, as survival may depend on illegal activities. Reasons for unemployment Businesses e.g. multinationals closing down lack of investment to create new businesses lack of skills training Underemployment - refers to an employment situation that is insufficient in some important way for the worker, relative to a standard. Examples include holding a part-time job despite desiring full-time work, and over qualification, where the employee has education, experience, or skills beyond the requirements of the job. (d) Low levels of production and productivity (e) Differences in resource distributions (f) High levels of indebtedness (debt burden) Many Caribbean countries have high debt- to-GDP ratios. This ratio is the amount of national debt of a country as a percentage of its Gross Domestic Product. High debt-to-GDP can stifle an economy as a large portion of its GDP is consumed in debt payment and very little is left for investment in the economy. A very low debt- to- GDP ratio is desirable for economic growth and development. (g) High level and cost of imports (h) Shortage of skilled workers (i) Inadequate technology (j) Low value of exports
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(k) Difficulties in accessing markets of developed countries (l) Shortage of capital (m) Vulnerability to natural disasters Population Density - Population density Refers to the average number of people living on every square kilo meter in a country. Very high population densities can indicate overpopulation. This occurs when the facilities in a location, are not able to serve the number of persons in that location. This will cause heavy competition for jobs, schools, health facilities etc. Migration - Caribbean people migrate to first world countries in search of opportunities such as employment and education. When skilled and professional workers migrate, Caribbean countries may experience shortages in critical areas such as health care. Loss of skilled workers from industry will also retard growth and development. Social problems may arise when children are left in the care of grandparents and other relatives who have challenges to discipline them. Sourcing Capital and Raw Materials - While the Caribbean might be rich in certain natural resources such as bauxite, oil and gold the region lacks other very important resources such as capital and entrepreneurial skills. Capital is important as it increases production through the use of machinery, equipment and money invested. The spirit of entrepreneurship is necessary for the creation of new business ideas and entrepreneurship skills are important for the successful running of the businesses. Economic Dualism in the Region - Economic dualism occurs in countries where there exist two opposite economic sectors. One sector is characterized by development, capital intensive industries, large scale farming and technological advancement, and the other sector is characterized by subsistence farming, labour intensive industries, handicraft industries and simple trading means of survival. Other Economic Problems Facing Caribbean Economies Are: . Dependence on single-crop agricultural production and exports - (b) lack of diversification Government plays a dominant role in employment, consumption and production . Flight of the educated to the developed countries High unemployment and under-employment caused by lack of industrial development Under-development of domestic markets to spur domestic production Over-consumption of imported, particularly US produced goods Possible Solutions to Economic and Social Problems Access to Foreign Direct Investment (FDI) Foreign Direct Investments refers to capital investments into factories, machinery and equipment by a foreign company or an individual. FDI is important for the development of Caribbean economies as they are challenged by their high debt- to-GDP ratios and increased global competition for export earnings. Attracting foreign direct investment is a way for Caribbean countries to obtain capital for growth and development. Benefits of FDI include: Employment for nationals Increased access to global markets Introduction of advanced technologies and processes Improvement in human resource skills Development of Human Resource - Investment in human resources is imperative for Caribbean economies to compete globally. Improving the value of human resources through education and training will increase the productive capacity of Caribbean countries.
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Development of Manufacturing Sector- The manufacturing sector creates value added products which increases export earnings for Caribbean economies. Developing the manufacturing sector therefore will impact on the potential economic growth of a country. Methods of developing the manufacturing sector: Encouraging Foreign Direct Investment Retooling Research and development Technological advancement ---------------------------3: The Major Stages in the Integration Movement (i) West Indian Federation Federation means the amalgamation or coming together of a number of entities to form one cohesive group with the same aims and destiny. The earliest Federal experiment took place in Barbados in 1626, where the Leeward Islands were integrated under one governor, the Earl of Carlisle. From 1833 to 1855, the Windward Islands and Barbados were united under one government, of which Trinidad was a part for two years. In the 1930s, the idea of West Indian territories integrating as a Caribbean community under one federal or Caribbean government was proposed and meetings were held to effect this change. The federation was established by the British Caribbean Federation Act of 1956 with the aim of establishing a political union among its members. Why A Federation? 1. West Indians were generally dissatisfied with the unresponsiveness and reluctance shown by the British government to deal with the social, economic and political problems being faced by the colonies. They wanted an end to poor living and working conditions, limited political powers and discrimination based on race and class. 2. West Indians in leadership positions felt that they were trained and knowledgeable about their own nation states and could take over control of their own governance. 3. The teachings of Marcus Garvey helped to empower blacks to take charge of their own governments. 4. They questioned the accomplishments of Crown colony government, and realized that not much had been done to improve the conditions of the people. 5. Colonialism as a constitutional and ideological form of governance was now under attack, as it was seen as an outdated and backward political rule. 6. The British government felt that it would make administrative decisions easier, as this could be dealt with by the federal government that, in turn, would be answerable to the metro pole. 7. The British government believed it would be more efficient and cheaper to replace the Governor and his staff in each colony with one governor-general and few officials for the entire Caribbean region. The West Indies Federation Membership - Established in 1958, the West Indies Federation comprised the ten territories of: Antigua and Barbuda, Barbados, Dominica, Grenada, Jamaica, Montserrat, the then St Kitts-Nevis-Anguilla, Saint Lucia, St Vincent and Trinidad and Tobago. The Federation was established by the British Caribbean Federation Act of 1956 with the aim of establishing a political union among its members.
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The Federal government was headed by an Executive Governor-General, appointed by Britain and included: A Prime Minister, elected from among and by the members of the House of Representatives

A Cabinet, comprising the Prime Minister and ten other elected Members chosen by him A Council of State presided over by the Governor General. The Council included the Prime Minister and Members of the Cabinet as well as three senators and three civil servants. The senators and civil servants were chosen by the Governor General. (The Council of State was the principal policy (decision)making body at the start of the Federation. In 1960 Britain agreed to abolish this Council and allow the Cabinet to take over the powers of the Council) A forty five-member House of Representatives, with Members elected from among the Territories; and A nineteen-member Senate, nominated by the Governor General following consultation with the Prime Minister
The Governor General was Lord Hailes of Britain and the Prime Minister was Sir Grantley Adams, (Premier of Barbados). The Federal capital was located in Trinidad and Tobago. During its brief existence (1958-62), a number of fundamental issues were debated with a view to strengthening the Federation. Among these were direct taxation by the Federal Government, Central planning for development, Establishment of a Regional Customs Union and Reform of the Federal Constitution. The issue of direct taxation was particularly controversial. The Federation was not permitted to levy (impose) income tax for at least the first five years of its life. Added to this, were the greatly differing positions among the Territories with respect to how other federal taxes should be levied. In addition, the Federation began quickly to seek to establish federal institutions and supporting structures. It created a federal civil service; established the West Indies Shipping Service (in 1962) to operate two multipurpose ships - the Federal Maple and the Federal Palm - donated to it by the Government of Canada. It had embarked also on negotiations to acquire the subsidiary of the British Overseas Airways Corporation (BOAC), namely British West Indies Airways (BWIA). Cooperation in tertiary education was consolidated and expanded during this period. The then University College of the West Indies (UCWI), which was established in 1948 with one campus at Mona, Jamaica, opened its second campus at St Augustine, Trinidad and Tobago, in 1960. Problems with Federation 1. The larger territories feared their development would be held back by smaller and generally poor colonies. They feared that if the free movement of Caribbean people were allowed, they would be bombarded by more immigrants, and they already had more than they could manage. 2. In 1947, Alexander Bustamante said that people were "rushing to set up a federation of paupers". Grantley Adams from Barbados said, "The plan would lead to nothing more than glorified form of colonial rule." The Trinidadian representatives stated that it represented no constitutional advance for the Caribbean. 3. The question of funding became an issue of debate. 4. There was also a problem concerning the location of the capital, as each country that was proposed, was met with opposition and jealousy. The End of the Experiment In 1961, Jamaica, after a referendum in which people were asked to vote whether or not to let Jamaica remain in the federation, to which the people of Jamaica responded "No", officially withdrew.
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Dr. Eric Williams of Trinidad and Tobago stated after Jamaica's withdrawal that "ten minus one equals nothing", which meant that Jamaica's withdrawal would make it impossible to bring about a strong and unified federation, so he declared Trinidad and Tobago would also withdraw. In 1961, the federation was dissolved. Both Trinidad and Jamaica gained their independence in 1962. Despite the failure of creating a federation of Caribbean states, the idea of regional integration was never fully lost. A number of regional organizations were formed with the aim of fostering Caribbean unity and development. (ii) Caribbean Free Trade Association CARIFTA The end of the federation meant the beginning of more serious efforts on the part of the political leaders in the Caribbean to strengthen the ties between the islands and mainland. The heads of government kept meetings to discuss the possibility of establishing a free-trade area. A free-trade area is an area in which there are no barriers to trade. Membership - The heads of government of the islands of Antigua, Barbados and British Guyana signed an agreement at Dickenson Bay, Antigua, to set up the Caribbean Free Trade Association (CARIFTA) in 1965. It came into effect on May 1, 1968, with the participation of Antigua, Barbados, Trinidad and Tobago and Guyana. They agreed that there should be no trade barriers between themselves and that any import duties they imposed on goods should be the same in all territories. By 1970, the membership included Antigua and Barbuda, Barbados, Trinidad and Tobago, Guyana, Dominica, Grenada, St. Kitts /Nevis /Anguilla, St Lucia, St. Vincent and the Grenadines, Jamaica, Montserrat and British Honduras (Belize). CARIFTA was intended to unite their economies and to give them a joint presence on the international scene. It was intended to encourage balanced development of the region by: Increasing Trade Buying and selling more goods among the Member States Diversifying Trade Expanding the variety of goods and services available for trade Liberalizing Trade Removing tariffs and quotas on goods produced and traded within the area Ensuring fair competition Setting up rules for all members to follow to protect the smaller enterprises
In addition to providing for free trade, the Agreement sought to: ensure that the benefits of free trade were equitably distributed promote industrial development in the LDCs promote the development of the coconut industry (through an Oils and Fats Agreement) which was significant in many of the LDCs rationalize agricultural production but in the interim, facilitate the marketing of selected agricultural products of particular interest to the LDCs (through the Agricultural Marketing Protocol); and provide a longer period to phase out customs duty on certain products which were more important for the revenue of the LDCs In 1973, CARIFTA became the Caribbean Community (CARICOM). (iii) Caribbean Community (CARICOM) The Treaty of Chaguaramas The Treaty of Chaguaramas is the Treaty which established the Caribbean Community (CARICOM). It was signed at Chaguaramas, Trinidad, on 4 July 1973 The Treaty of Chaguaramas which established the Caribbean Community came into force on 1 August 1973
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CARICOM Members The CARICOM member states are: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. The meetings of the Heads of Government and of the ministerial Councils, also known as institutions, represent the main means of achieving consensus on regional issues and policies. The Conference of Heads of Government is the highest decision-making forum and the final authority of the Community. It is made up of the Heads of Government of the Member States. Because of the increasing number of issues to be decided and implemented, a subset of the Conference, called the Bureau, was instituted in 1992. The Bureau meets as necessary and reports to the Conference. The Community Council of Ministers is the second highest organ of CARICOM, and consists of Ministers responsible for Community Affairs and any other Minister designated by Member States in their absolute discretion. The Community Council has primary responsibility for the development of Community strategic planning and co-ordination in the areas of economic integration, functional co-operation and external relations. The Community Council also has the responsibility for establishing a system of regional/ national consultations in order to ensure the effectiveness of the decision-making and implementation processes in the Community. The following Ministerial Councils were also established to streamline the functioning of the Community and increase the smooth functioning of the different sectors: The Council for Trade and Economic Development (COTED), which has been charged with the responsibility for the promotion of trade and economic development of the Community; The Council for Foreign and Community Relations (COFCOR), which has been charged with responsibility for determining relations between the Community, and international organizations and Third States; The Council for Finance and Planning (COFAP), which has been charged with primary responsibility for economic policy coordination and financial and monetary integration of Member States The Council for Human and Social Development (COHSOD), which is responsible for human and social development in the Community especially in the areas of health, education, labour and industrial relations, youth, women, and sports The following Subsidiary Bodies have also been established: (a) The Legal Affairs Committee composed of Ministers responsible for Legal Affairs and/or AttorneysGeneral of Member States; (b) The Committee of Central Bank Governors consisting of the Governors and Heads of Central Banks of Member States or their nominees; (c) The Budget Committee consisting of senior officials of Member States. The CARICOM Secretariat, located in Guyana, is the principal administrative organ of the community. Institutions of CARICOM Caribbean Disaster Emergency Response Agency (CDERA) headquarters is in Barbados Caribbean Meteorological Institute (CMI) headquarters s in Barbados Caribbean Food Corporation headquarters in Trinidad and Tobago Caribbean Environmental Health Institute (CEHI) headquarters is in St. Lucia Caribbean Agricultural Research and Development Institute headquarters is in Trinidad on the UWI St Augustine Campus
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Caribbean Regional Centre for the Education and Training of Animal and Veterinary Public Health Assistants (REPAHA) headquarters is in Guyana Association of Caribbean Community Parliamentarians (ACCP) Caribbean Centre for Development Administration (CARICAD) headquarters is in Barbados Caribbean Food and Nutrition Institute (CFNI) has two locations, namely at the Mona Campus of UWI (Jamaica) and the St. Augustine Campus of UWI (Trinidad). Caribbean Court of Justice (CCJ) Caribbean Development Bank (CDB) located in Barbados Caribbean Examination Council (CXC) located in Barbados Caribbean Law Institute/Caribbean Law Institute Centre (CLI/CLIC) located at the Faculty of Law, Cave Hill Campus of the UWI, Barbados University of Guyana located in Guyana University of the west Indies three campuses located in Jamaica, Trinidad and Barbados.
Associate Institutions of CARICOM
(iv) Organization of Eastern Caribbean The OECS was established by the Treaty of Basseterre signed on June 18, 1981 in an effort to deepen the subregional arrangements among the then WISA Members. The Objectives of the OECS are to: promote co-operation among its Members and defend their sovereignty, territorial integrity; promote economic integration; assist them in meeting their international obligations and responsibilities; and establish wherever possible, arrangements for joint overseas representation and common services. Membership - The OECS comprises Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines. Anguilla and the British Virgin Islands were admitted to the Organization as Associate Members in 1995 and 1984 respectively. As Associate Members they participate in all the Committees of the Organization except those related to Foreign Affairs, Defense and Security. The OECS is governed by The Authority (Heads of Government) comprising the Prime Ministers/Chief Ministers from all of the Member States. Supporting the Authority is: the Foreign Affairs Committee, the Defense and Security Committee, the Economic Affairs Committee (which oversees the operations of the East Caribbean Common Market) and a Central Secretariat. The Central Secretariat is the principal administrative organ of the OECS. The OECS has its headquarters in Saint Lucia and is headed by a Director General. (v) Association of Caribbean States (ACS) The Convention Establishing the Association of Caribbean States (ACS) was signed on 24 July 1994 in Cartagena de Indias, Colombia, with the aim of promoting consultation, cooperation and concerted action among all the countries of the Caribbean, comprising 25 Member States and three Associate Members. Eight other nonindependent Caribbean countries are eligible for associate membership. The objectives of the ACS are enshrined in the Convention and are based on the following: the strengthening of the regional co-operation and integration process, with a view to creating an enhanced economic space in the region; preserving the environmental integrity of the Caribbean Sea which is regarded as the common patrimony of the peoples of the region; and promoting the sustainable development of the Greater Caribbean. The ACS Membership has identified 5 areas of concern for the attention of the Association:
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The preservation and conservation of the Caribbean Sea. The preservation and conservation of this natural resource is a mandate of primordial importance for the ACS; a manifestation of the duty of all Caribbean citizens to protect this very tangible shared birthright. Sustainable Tourism. The importance of the tourism industry to the economic development of all the Members of the ACS transcends questions of physical size or language. Trade and Economic External Relations. The ACS provides a framework for the dialogue and activity necessary to further advance economic integration and intra-regional trade and investment, thereby improving the economic competitiveness of the Greater Caribbean region. Natural Disasters. The continued vulnerability of all countries and territories of the Greater Caribbean to the physical ravages and economically crippling consequences of natural disasters is a theme of the utmost importance on the regional agenda Transport. The proper functioning of efficient and viable intraregional air and maritime routes not only facilitates closer intraregional relations, but represents a fundamental base in the achievement of cooperation in the aforementioned areas Member States El Salvador Panama Grenada St. Kitts and Nevis Guatemala St. Lucia Guyana St. Vincent and the Grenadines Haiti Suriname Honduras Trinidad and Tobago Jamaica Venezuela Mexico Nicaragua Observer States Finland Peru India Russia Italy Spain Netherlands Turkey South Korea Ukraine Morocco United Kingdom
Membership Antigua and Barbuda Bahamas Barbados Belize Colombia Costa Rica Cuba Dominica Dominican Republic Argentina Brazil Canada Chile Ecuador Egypt Associate Member States Aruba Curaao France Sint Maarten Turks and Caicos Islands
(vi) CARICOM Single Market and Economy (CSME) The CARICOM Single Market established in 2006 is an arrangement which allows CARICOM goods, services, people and capital to move throughout the Caribbean Community without tariffs and without restrictions to achieve a single large economic space, and to provide for a common Economic and Trade Policy ( i.e. to transform the common market into a single market and economy). It was established to deepen the integration among Caribbean states and to respond effectively to the challenges and opportunities globally. A CARICOM Single Economy is an arrangement which further harmonizes economic, monetary and fiscal policies and measures across all Member States of the Caribbean Community to underpin the sustainable development of
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the Region. This would mean the coordination of foreign exchange and interest rate policies, the harmonization of tax regimes and of laws and the convergence of economic performance among other measures The CARICOM Single Market and Economy is not a political union The CARICOM Single Market and Economy is not a replacement for national identity and sovereignty Reasons for Single Market There is more economic and political strength from a grouping of 15 countries as against the strength of a single country. The small states of the Caribbean face better prospects within the CARICOM grouping than they do if they face mega-blocs and superpowers across the negotiating tables individually. The Single Market and economy creates more opportunities for employment, investment, production and trade for the inhabitants of the Caribbean Community. Trade liberalization is the movement towards the removal of trade barriers among the members of World Trade Organization (WTO). Globalization is the process by which countries all over the world are becoming connected or similar especially because large companies are doing business in many different countries. Implementation of CARICOM Single Market and Economy (a) By amending the Treaty which established the Caribbean Community (the Treaty of Chaguaramas) (b) By modification of the national laws, policies and programmes of Member States to accommodate these and other decisions made at the regional level (c) By active interest in and participation of the Regions people in the CARICOM Single Market and Economy. The Treaty is being amended by way of Protocols. There are nine Protocols: Protocol I addresses Organs, Institutions, Procedures of the Community Protocol II addresses Right of Establishment. The Right to provide Services and the Right to move Capital by any CARICOM national in the Community, which has been defined to include the Single Market and Economy Protocol III address the Community Industrial Policy Protocol IV addresses Trade Liberalization Protocol V addresses the Community Agricultural Policy Protocol VI addresses the Community Transport Policy Protocol VII addresses Disadvantaged Countries, Regions and Sectors Protocol VIII addresses Disputes Settlement Protocol IX addresses Rules of Competition
Membership
These Protocols are now Chapters within the Revised Treaty. Suriname and Trinidad and Tobago were the first six to implement the CARICOM Single Market on January 1, 2006. Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines were the next batch of members (six in all) that joined the CSM on July 3, 2006
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Montserrat -Current full members of CARICOM and signatory for the CSME
Current 12 full members of both CARICOM and the CSME: Antigua and Barbuda Jamaica Barbados Saint Kitts and Nevis Belize Saint Lucia Dominica Saint Vincent and the Grenadines Grenada Suriname Guyana Trinidad and Tobago 4. Functions of the Different Caribbean Institutions Secretariats Functions of the OECS Secretariat The secretariat comprises four main divisions responsible for: external relations, functional cooperation, corporate services and economic affairs. It, therefore, serves as the administrative arm of the OECS. The functions of the Organization are set out in the Treaty establishing the Organization of Eastern Caribbean States, which was signed on 18th June, 1981 in Basseterre, and are coordinated by the Secretariat under the direction and management of the Director General. The work of the Secretariat is constantly informed by considerations of cost effectiveness in the context of the need to respond to the increasing challenges placed on it, taking into account the limited fiscal capacities of its members. The Secretariat consists of four main Divisions namely: Division of the Office of the Director General, Social and Sustainable Development Division, Corporate Services Division and Economic Affairs Division. These four Divisions oversee the strategic direction of the Organization, as well as the work of a number of specialized institutions, work units or projects located in six countries - Commonwealth of Dominica, Saint Lucia, Belgium, Switzerland, Canada, and the United States of America. In carrying out its mission, the OECS works along with a number of sub-regional and regional agencies and institutions. These include the Eastern Caribbean Central Bank (ECCB), the Caribbean Community (CARICOM) Secretariat, and the Caribbean Development Bank (CDB). Functions - The objectives of the ACS are enshrined in the Convention and are based on the following: the strengthening of the regional co-operation and integration process, with a view to creating an enhanced economic space in the region; preserving the environmental integrity of the Caribbean Sea which is regarded as the common patrimony of the peoples of the region; and promoting the sustainable development of the Greater Caribbean. Its current focal areas are trade, transport, sustainable tourism and natural disasters. OECS Commission The OECS Commission is the principal Organ responsible for the general administration of the Organization. The OECS Commission comprises of the Director-General, who is responsible for the day to day administration of the Organization, and will convene and preside at meetings of the OECS Commission. The Commission will also include one Commissioner of Ambassadorial rank named by each Member State. This Commissioner will represent the OECS Commission in the Member State.
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The OECS Commissions functions include the provision of Secretariat services to the Organs of the Organization, including coordinating of meetings of the Organs of the Organization; and acting on decisions, recommendations or directives approved at such meetings. The OECS Commission will make recommendations to the OECS Authority and the Council of Ministers regarding the formation of Acts and Regulations of the Organization; and undertake other work and studies, and perform other services relating to the functions of Organization as required under this Treaty or by the OECS Authority or by any other Organ. The Main Functions of the CARICOM Secretariat The CARICOM Secretariat is the principal administrative organ of the community and it is headed by a secretary general who is the chief executive officer of the community. Mission Statement of the Secretariat To provide dynamic leadership and service in partnership with community institutions and groups, toward the attainment of a viable, internationally competitive and sustainable community, with improved quality of life for all. Provide, on request, services to member states on community-related matters Take appropriate follow-up action on decisions taken by the various organs Collect, store and disseminate relevant information to member states as becomes necessary Assist community organizations in the development and implementation of proposals and programmes Help in the mobilizing of resources from donor agencies to assist in the implementation of community programme Initiate or develop proposals for consideration and decision by the relevant organs Prepare the draft Work Programme and Budget of the secretariat for examination by the budget committee Provide, on request, technical assistance to national authorities to facilitate implementation of community decisions Conduct, as mandated, fact-finding assignments in member states
The Conference of Heads of Government This consists of the heads of government of the member states or any other person designated to represent him or her at any meeting of the conference. The Bureau of the Conference of Heads of Government The Bureau, consisting of the current Chairman and the immediately outgoing and incoming Chairmen of the Conference shall perform the following functions: a) initiate proposals for development and approval by the Ministerial Councils as it considers necessary; (b) update the consensus of the Member States on issues falling to be determined by the Conference; (c) facilitate implementation of Community decisions, both at the regional and local levels, in an expeditious and informed manner;
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(d) provide guidance to the Secretariat on policy issues Functions and Powers of the Conference of Heads of Government The conference is the supreme organ of the community and it determines and provides policy direction for the community It acts as the final authority for the conclusion of treaties on behalf of the community and for entering into relationships between the community and international organizations and states It makes financial arrangements as it becomes necessary to defray the expenses of the community and it is the final authority on questions arising in relation to the financial affairs of the community. It may establish such organs or bodies as it considers necessary for the achievement of the objectives of the community The conference may issue policy directives of a general or special character to other organs and bodies of the community concerning the policies to be pursued for the achievement of the objectives of the community and effect shall be given to such directives The conference may consider and resolve disputes between member states. The conference shall regulate its own procedure and may decide to admit at its deliberations as observers of non-member states of the community and other entities. --------------------5: Objectives of Caribbean Organizations Caribbean Community CARICOM The three main objectives of the community at its inception were economic integration, coordination of foreign policy, and functional cooperation in areas such as health, education and culture, as well as other areas related to human and social development Main Objectives of CARICOM 1. To encourage trade between member states (economic cooperation). 2. To foster cooperation in non-economic areas such as health, education, culture, sport, etc. 3. To coordinate foreign policy among the members of states. These objectives have been simplified to include: Improved standards of living and work in the region Full employment of labour and other factors of production Accelerated, coordinated and sustained economic development and convergence Expansion of trade and economic relations and enhanced levels of international competitiveness Organization for increased production and productivity Enhanced functional cooperation, including efficient operation of common services and activities for the benefit of its peoples Accelerated promotion of greater understanding among its peoples and the advancement of their social, cultural and technological development
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Intensified activities in areas such as health, education, transportation, telecommunications
The Specific Objectives of CARICOM The Community has the following objectives: (a) Improved standards of living and work (b) Full employment of labour and other factors of production (c) Accelerated, coordinated and sustained economic development and convergence (d) Expansion of trade and economic relations with third States (e) Enhanced levels of international competitiveness (f) Organization for increased production and productivity (g) The achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description (h) enhanced co-ordination of Member States' foreign and [foreign] economic policies (i) Enhanced functional co-operation, including: (i) more efficient operation of common services and activities for the benefit of its peoples; (ii) accelerated promotion of greater understanding among its peoples and the advancement of their social, cultural and technological development; (iii) Intensified activities in areas such as health, education, transportation, and telecommunications. Organization of Eastern Caribbean States (OECS) OECS was formed in 1981 for the purpose of promoting cooperation among member states. These countries include Montserrat, Anguilla, Antigua, Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent, Anguilla and the British Virgin Islands are associate members. The OECS Mission The Mission of the Organization of Eastern Caribbean States is to be a Center of Excellence contributing to the sustainable development of OECS Member States by supporting their strategic insertion into the global economy while maximizing the benefits accruing from their collective space OECS Objectives As set out in the Treaty of Basseterre:

To promote co-operation among the Member States and the regional and international level; To promote unity and solidarity among the Member States and to defend their sovereignty, territorial integrity an independence; To assist the Member States in the realization of their obligations and responsibilities to the international community with due regard to the role of international law as a standard of conduct in their relationships; To seek to achieve the fullest possible level of harmonization of foreign policy among the Member States; to seek to adopt, as far as possible, common positions on international issues and to establish and to maintain wherever possible, arrangements for joint overseas representation and/or common services; To promote economic integration among the Member States To pursue these purposes through its respective institutions by discussion of questions of common concern and by agreement and common action.
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The CARICOM Single Market CSME The CARICOM Single Market and Economy (CSME) is intended to benefit the people of the region by providing more and better opportunities to produce and sell our goods and services and to attract investment. It will create one large market among the participating member states. Deepening economic integration. Free trade of services. Free movement of capital, labour and the freedom to establish business enterprises anywhere within CARICOM states. Widening of membership. A common currency/single currency. The Main Objectives of the CSME are: Full use of labour and full exploitation of the other factors of production. Competitive production leading to greater variety and quantity of products and services to trade with other countries. It is expected that these objectives will, in turn, provide improved standards of living and promote sustained economic development Free movement of goods and services - Through measures such as eliminating all barriers to intra-regional movement and harmonizing standards to ensure acceptability of goods and services traded Right of establishment - To permit the establishment of CARICOM-owned businesses in any member state without restrictions A common external tariff - A rate of duty applied by all members of the market to a product imported from a country which is not a member of the market Free circulation -Free movement of goods imported from extra-regional sources which would require collection of taxes at first point of entry into the region and the provision for sharing of collected customs revenue Free movement of capital - Through measures such as eliminating foreign exchange controls, convertibility of currencies (or a common currency) and integrated capital market, such as a regional stock exchange A common trade policy - Agreement among the members on matters related to internal and international trade, and a coordinated external trade policy negotiated on a joint basis Free movement of labour - Through measures such as removing all obstacles to intra-regional movement of skills, labour and travel, harmonizing social services (education, health, etc.), providing for the transfer of social security benefits and establishing common standards and measures for accreditation and equivalency
Harmonization of Laws: such as the coordination of company, intellectual property and other laws. There are also a number of economic, fiscal and monetary measures and policies which are also important to support the proper functioning of the CSME. These include:
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- Economic Policy measure: coordinating and converging macro-economic policies and performance; harmonizing foreign investment policy and adopting measures to acquire, develop and transfer appropriate technology; -Monetary Policy measures: coordinating exchange rate and interest rate policies as well as the commercial banking market; - Fiscal Policy measures: including coordinating indirect taxes and national budget deficits. The Objectives of The ACS The strengthening of regional cooperation and integration Preserving the environmental integrity of the Caribbean Sea Promoting the sustainable development of the Caribbean
CARICOM Single Economy Taxation The main purpose of the CSME is to allow the free movement of goods, services, capital and CARICOM nationals and to regulate the treatment of economic enterprises within the Single Market. CARICOM Heads of Government have recognized that the harmonization of taxation is an important step in the achievement of the CSME as failure to do so is likely to result in barriers to the free movement of goods and capital. The existence of the Treaty is clearly a step in the right direction towards tax harmonization. However, in order to achieve real harmonization, some measure of uniformity in the way in which taxable income is calculated as well as harmonization of tax rates within the various Member States will be necessary. The Intra-Regional Double Taxation Agreement replaced the 1973 tax Agreement which was previously concluded between the more developed countries ("MDC") within CARICOM, i.e. Barbados, Guyana, Jamaica and Trinidad and Tobago, and the less developed CARICOM countries ("LDC"), being Antigua, Belize, Dominica, Grenada, Montserrat, St. Lucia, St. Vincent and St. Kitts, Nevis and Anguilla. It was hoped that the Treaty would be more successful in its implementation and effect than the LDC/MDC Treaty which was never formally ratified, or honoured, by all of the countries that were parties to it. In any event, the LDC/MDC Treaty was limited in its scope as it was designed only to try to stimulate international trade and investment between the MDCs and LDCs, and not among the MDCs themselves. The Treaty was intended to encourage and facilitate trade and investment between residents of all Caricom member states who ratified the Agreement by removing the barriers which previously existed, mainly because of the high effective rate of tax levied on income derived from one Caricom territory by a resident of another. Taxation of persons: CARICOM Nationals must be cognizant of the fact that they are subject to all applicable Tax Laws of their host country. It is therefore important to have knowledge about the types of taxes to be paid, before moving to work in another Member State. The intra-regional Double Taxation Agreement protects self-employed CARICOM Nationals from paying taxes twice on the same earnings. This Agreement is currently enacted in Antigua and Barbuda, Barbados, Belize, Dominica, Guyana, Jamaica, Saint Lucia, St. Vincent and the Grenadines and Trinidad and Tobago.
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The Caribbean Single Market And Economy: Is It Realistic Without Commitment To Political Unity? Havelock R. Brewster A. From Common Market to Single Market and Economy A 'single market' is a space within which goods and services, people, capital and technology freely circulate. When created among States, it involves, so far as market transactions are concerned, the complete removal of physical, technical and fiscal frontiers. Thus, for example, moving goods or services, capital or people from Trinidad and Tobago to Barbados would be no different from moving them across parish borders in Barbados itself. A single market is thus somewhat different from a 'common market' which is an arrangement among States to remove market barriers, while the frontiers themselves remain. In the Revised Treaty of Chaguaramas, unlike the Single European Act (1986), there is no concept of an area without frontiers. In fact, to the contrary, the Treaty implicitly rests on the maintenance of frontiers, within which it is the aim to liberalize conditions of access to markets. Thus, although the Treaty refers to a 'single market' this is in effect no different from the pre-existing common market. The Revised Treaty of Chaguaramas goes further to establish a 'single economy.' This requires unified economic and monetary policies, including related legislation, executive instruments and institutions. One of the most important instruments of a single economy is a single currency just as there is a single Barbados currency for all parishes of the country. The Revised Treaty actually provides, in principle, for most aspects of a single economy, incorporating the original protocols on establishment, services and capital; industrial policy; trade policy; agricultural policy; transport policy; disadvantaged countries, regions and sectors; competition policy and consumer protection; dumping and subsidies; dispute settlement. In addition, macroeconomic policy convergence, fiscal policy harmonization, monetary convergence, fiscal policy harmonization, monetary union/single currency, as well as the Caribbean Court of Justice, complete the mandate for implementing the Caribbean Single Market and Economy (CSME). The free trade regime and the common external tariff (CET) were core features of the earlier Common Market, and of course are essential components of a CSME. There are a few notable single economy omissions, such as the absence of provisions in the Treaty for Community Transnational Enterprise Law, Labor Law and Property Law. B. Progress of the Caribbean Single Market and Economy The Institutional and Legal Framework The Caribbean Court of Justice (CCJ) The establishment of the CCJ is considered vital to ensuring an environment of economic stability and legal certainty in the Community and the CSME. In its original jurisdiction it will interpret and apply the Revised Treaty of Chaguaramas. The target date for the CCJ to begin functioning is mid-2003. Of the prospective eleven participating States, four have so far ratified the agreement (three being the minimum required number needed for entry into force). However, no member State has to date enacted the Agreement into domestic law. The Board of the Caribbean Development Bank (CDB), at the request of Heads of State, has authorized the borrowing of US$96 million on behalf of the eleven States, intended to be disbursed to a Trust Fund that will finance the budget of the Court out of its earned income. However, the CDB will not commence mobilization of the funds until the Agreement establishing the CCJ has been signed and ratified by all of the prospective participating States. Competition Policy - Implementation of the Treaty provisions has not been undertaken in any Member State. Model laws are being examined.
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Intellectual Property Rights - Several member States do not have laws on Intellectual Property Rights (IPR) and have not taken action on WTO TRIPS compliance. No action has been taken to date on the establishment of a regional administration for IPR, about which there are also national reservations. Virtually nothing has been done in respect of the Treaty provisions regarding establishing mechanisms for the protection of indigenous culture, expressions of folklore and traditional knowledge. Company Law -Virtually nothing has been achieved to date in respect of the harmonization of company law, and in any case some member States have serious conceptual differences about the approach to it. Financial ServicesBanking, Insurance and Securities - Action on harmonization in these fields seems to be for the distant future as studies are only now being undertaken on the similarities and dissimilarities in existing national legislation. Customs Law - The model law that has been prepared has been adopted by only one Member State. It has been abandoned de facto by the Organization of Eastern Caribbean States (OECS), which has devised its own law. In any case, several member States have serious difficulties with the model law. Government Procurement- The CSME has no provisions on government procurement, which is a feature of the WTO, the FTAA and ACP-EU New Trading Arrangements. No action has been taken so far on drafting and negotiating a Community Government Procurement Protocol. Standards and Technical Requirements The Caribbean Organization for Standards and Quality (CROSQ) has been established but there are concerns about the adequacy and reliability of funding for the institution. Dispute Settlement - Apart from the role of the CCJ in respect of dispute settlement, other dispute settlement modes are provided for in the Treaty, including a Conciliation Commission and Arbitration Tribunal. Most member States have not submitted nominees for the List of Arbitrators and Conciliators. Single Market Free Movement of Goods - According to the Caribbean Community Secretariat (CCS) some 95 percent of intraregional trade is free of barriers. Nevertheless, after 30 years of the Community's existence, intra-regional exports amount (in 2000) to only 18 percent of total regional exports, having increased from 11.5 percent in 1990. Moreover, in domestic value-added terms the absolute value of intra-regional trade would be substantially less than its nominal value (perhaps one-half). While the increase that took place over the last decade is almost wholly attributable to Trinidad and Tobago, some 75 percent of this country's intra-regional exports consists of mineral fuels, lubricants, chemicals and related materials that would have taken place without the free trade regime. There has been a small increase in the intra-regional exports of Barbados but this has been offset by the complete stagnation in those of the Eastern Caribbean States and a substantial decline in Jamaica's. Intra-regional trade probably could be increased to some extent since there still remains in several Member States unauthorized barriers and licenses, as well as discriminatory internal taxes and other fiscal charges. However, even with the removal of these remaining restraints, intra-regional trade is unlikely to rise to a significantly higher level without the kind of transformation of the productive structure that would make this possible. Free Movement of Services -No Member State has yet enacted legislation to put into effect the Treaty provisions on the removal of restrictions to trade in services (including self-employed service providers, entrepreneurs, technical, managerial and supervisory staff, spouses and immediate dependent family members). Free Movement of Persons - All States will two exceptions (and The Bahamas that does not participate in the Common Market) have implemented legislation enabling the movement without work permits of certified tertiary graduates (skills). Movement is nevertheless subject to constraints, the severity of which varies from State to
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State, such as national certification requirements, immigration procedures, administrative delays, the rights and status of family members, and other contingent rights. Most States have not yet put into effect legislative and administrative arrangements for the movement of media workers, artistes, musicians, and sportspersons. Although the skills legislation has been adopted in most Member States for more than five years, relatively few skilled persons have actually moved to other Community States (statistics are not available). Ironically, there seems to have been more movement among unskilled persons though they are not included in the "free movement" legislation. Free Movement of Capital - To date, no Member State has enacted legislation or implementation programs to put into effect the Treaty provisions on the removal of restrictions to the free movement of capital. Complicating issues that need to be determined concern the different modes under which capital moves in and out of Member States that are governed by specific national laws (e.g. direct foreign investment, portfolio investment, banking, insurance, securities, real estate, industrial establishment, profit and capital repatriation, etc) and also vary from State to State. Common External Protection While most States have adopted de jure the fourth phase of the CET, a common external protective regime is still far from having been achieved. This is due to the incomplete or defective application of the CET, and the increasing use of derogations from it; the presence of non-tariff barriers, including standards, health and environmental protective measures, subsidies, and inter-country differences in value-added and in the application of rules of origin. Single Economy Sectoral Policies - The Treaty provides for sectoral policies in respect of agriculture, industry, services and transport. These policies are mostly expressions of intentions to promote, cooperate, collaborate, and coordinate actions in respect of a variety of common problems. They fall very far short of what would be expected of sectoral policy in a single economic space. Even at the level of intergovernmental cooperative actions (with the exception of limited aspects of the tourism sector) little or nothing has actually been achieved. Macroeconomic Coordination - The Treaty provisions are also expressions of intentions to promote, collaborate, coordinate policies conducive to sound national macroeconomic policies, and again are not what would be expected of a commitment to create a single economic space. In fact, even at the level of intergovernmental collaboration on macroeconomic policies very little has been done or even attempted. The Council for Finance and Planning (COFAP) itself nevertheless recognized (in 2001) that 'lack of macroeconomic coordination could result in severe disintegrative effects and that countries must be prepared to cede some degree of sovereignty in economic policy formulation to the regional level.' Fiscal Policy Harmonization - Technical work on the issue has scarcely begun. COFAP agreed that a tax harmonization framework and tax harmonization guidelines should be developed for its consideration, and a Working Group on Fiscal Policy has been established. Likewise, a Community Investment Policy, including a harmonized system of investment incentives, is a long way off as technical preparations are still in progress. A Protocol on a Harmonized Corporation Tax Structure has been prepared and is currently going through the process of intergovernmental examination. The CARICOM Double Taxation Agreement has been signed and ratified by most Member States and is effective among eight of them that have put the enabling legal framework in place. Monetary Union/Single Currency - The approach to this issue has been to monitor set macroeconomic parameters against pre-determined targets, so as to gauge the extent of macroeconomic convergence, the accepted precondition for moving to a single currency. Not only has attainment of the targets generally been below expectation in respect of all parameters, but also no mechanisms are provided to correct underperformance.
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In considering the issue of monetary union, COFAP recently accepted the recommendation of the Committee of Central Bank Governors that a monetary union involving all CARICOM Member States is not achievable at this point in time, but should remain a long-term goal. For all practical purposes a single currency for the single market has been abandoned. C. Political Implications of the Single Market and Economy As illustrated above, although the range and depth of decisions made in respect of creating a CSME, going back to 1989, is impressive, very little has actually been put into operation. This cannot be due wholly to inadequate institutional capacity. There is no apparent correlation among the Member States between their institutional capacity and their record of implementation. Nor does there seem to be a correlation between the complexity of the task and institutional capacity. Institutional strengthening cannot be a substitute for political conviction, for the Revised Treaty of Chaguaramas merely recognizes a number of narrowly defined technical objectives, such as 'improved standards of living and work,' 'enhanced levels of international competitiveness,' 'enhanced functional cooperation.' There is nothing in the Treaty objectives that commits States to the essential values of Caribbean Community. Yet the creation of a unified economic space is now the declared purpose of the Community. For example, a single economy with a multiplicity of currencies is a contradiction in terms. Thus, while declaring their commitment to high levels of regional economic unity, governments continue to operate in a mode of full national sovereignty. The CSME has been defined in the same way as the concepts applied to the earlier Common Market, that is, the gradual, State-by-State removal of barriers. By contrast, the European Union when inaugurating its single market in the mid-1980s introduced the concept of the internal market that created an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured. Physical (checks on persons and goods at internal customs ports), technical (national rules in a variety of fields), and tax-related (different indirect taxes) frontiers were thereby abolished. The change to a single market was accomplished by changes in the Community legislative system (the introduction of European Directives, approved by qualified majority voting for most subjects, that are obliged to be transposed into national law in the Member States) designed to encourage adoption of the measures needed for completion of the single market. The Caribbean Community is yet to make the political transition that is necessitated by the commitments undertaken to create a single market and economy. The adjustments needed are best illustrated in respect of the CSME implications for national sovereignty and the financing of the Community institutions. National Sovereignty The Caribbean Community intends to create a Single Market and Economy with each Member State retaining maximum national sovereignty. It intends to do so apparently through a mode of discretionary intergovernmental cooperation. These objectives clearly are contradictory. The effects of this approach are manifest in the failure to achieve any significant progress in respect of the program of legislative harmonization, the removal of barriers to the movement of people, services and capital, and the merely titular commitments made to macroeconomic coordination, fiscal harmonization and monetary integration. This was also the experience of the European Community. By the mid-1980s, there had been no substantial reduction in non-tariff measures; except for certain professions, the free movement of services had been instituted only as non-discrimination on the grounds of nationality; free trade in goods was still restricted by anti-competitive practices imposed by public authorities.
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According to the European Parliament 'stagnation in the achievement of the common market was largely attributed to the choice of detailed legislative harmonization as the method of removing the obstacles of national technical regulations, when harmonization was in fact very difficult to achieve' The Single European Act that created the European single market was the answer to this impasse. It incorporated the concept of the internal market referred to above and radically altered the legislative decision-making machinery. CARICOM however, unlike the EU, in moving to a single market kept the old common market concepts (of frontiers and State-by-State liberalization of market access), and legislative procedures (of intergovernmental harmonization and national ratification) in place. This dichotomy lies at the root of the impasse in CARICOM. Beyond the legislative and market access areas, it is becoming increasingly apparent in CARICOM that such issues as sectoral policy, macroeconomic coordination, fiscal harmonization and monetary integration simply cannot proceed in an environment of unabridged national sovereignty. The CCJ is itself an illustration of sovereignty being breached by default. In its original jurisdiction the Court becomes necessary since in its absence the municipal courts of the Member States would be competent to interpret and apply the Revised Treaty, with the possible consequence that their decisions may not be consistent. However, ensuring consistency of legal decisions in this way results in an important aspect of supranationality being inserted into an otherwise intergovernmental mode of cooperation. Indeed, even outside the CSME framework, signs of encroachment on the principle of national sovereignty are observable, for example, in respect of such sectoral policy areas as offshore financial services and regional security (illicit drugs, arms trafficking, money laundering). Financing the Caribbean Community and Single Market and Economy The CSME calls for the establishment of a number of new Community institutions. They include the Caribbean Court of Justice, a standards organization, a competition commission, a conciliation commission, a regional securities body, a regional intellectual property rights office, and a regional development fund. Most of these new Community institutions are premised on the existence of national counterparts that actually do not currently exist in most Member States. Already the Community supports over a dozen regional organizations, including the Community Secretariat, the Regional Negotiating Machinery, and the University of the West Indies. In the absence of an independent source of income for the Community institutions, all these new institutions will require national appropriations (apart from the CCJ for which, as indicated above, trust fund arrangements are being made through the Caribbean Development Bank). How this will be achieved, including the resources needed for the national counterparts, remains to be seen. Experience does not inspire confidence that governments will be prepared to fund all these new institutions adequately and reliably especially in an environment that is already politically strained and financially distressed over commitments to the existing regional institutions. The financing issue was also one that confronted the European Community and was resolved by a decision in 1970 on 'own resources' for the Community. In fact, this was originally provided for under the Treaty of Rome, which stipulated that the EEC was to be financed by national contributions for a transitional period before changing to a system of own resources. Own resources have been found in a mixture of 'natural' own resources, which are revenues collected by virtue of Community policies such as customs duties, agricultural levies, VAT own resources, and GNP based balancing resources. Currently the own resource system is based on a ceiling of 1.27 percent of the Union's GNP. The European Court is financed out of the Union's own resources. By way of comparison, 1.0 percent of the GNP of the CARICOM States (excluding Haiti) would amount to about US$300 million a year. Currently governments contribute US$10 million to the CCS annual budget (donors
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contribute an additional US$4 million). The financing issue, and particularly the institution of an own resources system, thus becomes a real test of political conviction on the future of regional integration. D. Conclusion Caribbean governments since 1989 have undertaken deep and far-reaching commitments to establish a Single Market and Economy, representing a major advance over the Common Market. However, very little has actually been achieved in terms of implementing these commitments. The root cause of the situation can be found in the fact the most of the CSME commitments are premised on the existence of higher degrees of political integration than currently exist. While a mode of intergovernmental cooperation, by way of discretional State-by-State progressive market liberalization, legislative harmonization and ratification, may have been more or less workable for Common Market arrangements, they are unlikely to be effective for the purposes of creating a single market and economy. The experience of the only grouping of States that has attempted such a transition indicates that it is necessary to move beyond intergovernmental cooperation to selective forms of supranational action. Two initial priority areas for the application of this conclusion in the Caribbean Community would be the program of legislative harmonization and arrangements for financing the Community institutions. The Caribbean Development Fund CDF Objectives The CDF was established under Article 158 of the Revised Treaty of Chaguaramas for the purpose of providing financial or technical assistance to disadvantaged countries, regions and sectors . It is the centre-piece of a regime to address the disparities among the Member States of the Community which may result from the implementation of the CSME. The signing of the Agreement Relating to the Operations of the Fund in July 2008, followed years of negotiations by CARICOM Member States regarding the principles, size and structure of a regional development fund. There was a sense of achievement when the Agreement was finally signed and technicians employed by the CDF got down to the task of making the mechanism operational. Notwithstanding all the challenges, on 24 August 2009, in keeping with expectations, the CDF officially opened its doors. This was achieved after nine months of feverish effort by the start-up staff to put systems in place to allow for the receipt of requests for loans and grants. Beneficiaries of the Fund Whilst all Members of the CSME contributing to the CDF are eligible to receive financial and technical assistance support from the Fund, only the designated disadvantaged countries - the LDCs (OECS and Belize) and Guyana (as a Highly Indebted Poor Country) will have access to resources during the first contribution cycle. To identify the needs of the eligible Member States and to inform the CDF Board as it signed off on governance rules and regulations, needs assessment consultations were undertaken to the LDCs and Guyana. Informed by these consultations and consistent with its remit to address disparities resulting from the implementation of the CSME, the CDF will focus on disbursing concessionary loans and grants that address objectives related to the implementation of the CSME, preferably small-to-medium size projects of a short implementation period. In an attempt to guarantee the sustainability of the CDF capital fund, the size of direct loans will range between US$0.5million and US$ 4million; the minimum size of grants will be US$20,000. In each Contribution Cycle, the Board will earmark up to US$10 million to finance private sector projects that are regional or sub-regional in scope. The CDF will also look to work with its development partners in leveraging the technical assistance it can provide.
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6: Factors Promoting Integration in the Caribbean The Caribbean was shaped by a logic of both unity and diversity. On the one hand, the region has been historically divided as a result of colonialism by various European powers; on the other hand, the slave trade and the entry of the Caribbean into the global market by way of agricultural production, created a common cultural base which has persisted to this day. The following article sketches elements of today's Caribbean reality that foster or hinder development work in the region. In different eras many efforts have been made towards Caribbean unity, for instance, the proposed West Indian confederation in the 19th century. But Caribbean unity as a real and urgent challenge has arisen only today. In Caribbean countries a new consciousness has emerged, reflecting the growth of a new regional order that goes beyond the nation-state. That is to say, Caribbean nations face challenges that began outside national borders and which must therefore be resolved at a regional level. If some elements display the region's heterogeneity (such as different political traditions and linguistic diversity), the common factors that define the region outweigh the differences. In reality there are few development problems that are not related in some way to similar problems in other societies, or to the region as a whole. For example, Caribbean countries were economically shaped by agricultural systems geared to requirements abroad; and their industrialization has been based on the facility of cheap labour to attract foreign capital. As a result there are common economic and labour issues. On the other hand, Caribbean societies face similar social processes as a result of urban transformation, itself the result of a huge migration of people from different countries and with different languages, as well as tourism, drug trafficking, and environmental deterioration. Moreover, all Caribbean countries have in common the existence of a Diaspora scattered around the world, which interacts intensely with societies within the Caribbean region. These new challenges require joint action by Caribbean actors. There are important state initiatives such as the West Indian Commission, the Association of Caribbean States, and other regional political initiatives. In addition, civil society has mobilized in a significant way precisely because of the difficulties facing state and private enterprise to tackle the enormous number of national and regional problems. Common goals Common resources though limited Common political ideology Common history: colonialism, descendants of migrants, slavery Common economic status, developing countries Common problems, local and international Common climate, soil, landforms Common culture, language Strategic locations: all Caribbean countries are surrounded by the Caribbean Sea. The challenges of globalization and trade liberalization.
Factors Promoting Regional Cooperation (Internal) Domestic Factors Common language The CARICOM Member States, except for Haiti and Surinam, use English as the official language; The common history and cultural heritage which the people share make it possible for them to embrace common values and goals Small population this is necessary for them to co-operate to form a large market; their small size also makes it difficult for them to influence international organizations or countries individually. Limited resources (human and physical)
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Common local and international problems e.g. Difficulty in accessing international markets, pressure from international organizations such as the World Trade Organization, the International Monetary Fund, the World Bank and the exploitation by international businesses require a united approach.
Factors Promoting Regional Cooperation (External) The challenges of Globalization The Challenges of trade liberalization Caribbean governments can no longer restrict extra-regional imports to protect regional manufacturers; they MUST compete in the world market on the same terms as the rich, industrialized nations. The increase in the number of trading bloc the trend throughout the world is moving towards the establishment of trading blocs and economic groupings e.g. The European Union (EU) and the Free Trade Area of the Americas (FTAA). NB: Trading blocs are made up of a large number of countries with the same political and economic aims, linked by special trading arrangements among them.

Common Language - The language of the Caribbean people is English, and this facilitates easy communication. Close Proximity - The Caribbean countries are relatively close to each other, hence, travel by air or sea from one country to another can be done in a relatively short space of time. Caribbean Countries Share A Common History - Most of the Caribbean people are descendants of people who had been subjected to slavery and indentureship. This makes it possible for the Caribbean people to embrace each other. Common Cultural Heritage - The Caribbean people share a common culture in terms of language, dress, music, cuisine and general lifestyle. All these features make the integration process smoother. Small Population - The Caribbean countries are at a disadvantage when competing against international markets because of their small size. Thus, coming together makes it easier to influence international markets. Limited Human and Physical Resources the limited resources available in the Caribbean region necessitate the pooling and trading of these resources among Caribbean countries. Common Economic, Political and Social Problem - The Caribbean countries encounter similar problems, inclusive of, but not limited to unemployment, difficulty in accessing international markets, lack of adequate capital, poor housing and inadequate health facilities. The Common Challenges of Globalization and Trade Liberalization - Companies all over the world are doing business in many countries, filtrating into the Caribbean region creating unwelcomed competition. The Caribbean government can no longer restrict extra-regional imports to protect regional manufacturers/companies, hence, Caribbean businesses are required to amalgamate or face ruin. The increase in the number of trading blocs - Across the world, economic groupings and trading blocs are being established where a large number of countries are linked by special trading arrangements among them. For example, the European Union (E.U.) The Caribbean is required to do the same to ensure productivity and continuity in its economic growth.
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7: Factors Hindering Regional Integration
Conflict between territorial and regional demands and loyalties some governments and citizens may be torn between the loyalty to their own countrys needs and demands and the regional integration objectives. Differences in resource distribution the unequal distribution of natural resources in the region makes those countries with limited resources feel that they would be at a disadvantage when trading with countries that have greater resources. Countries produce similar products and this may hinder trading relationships because it has reduced the opportunities for trade. Competition between countries there is competition between countries for the location of new industries. There is also competition in the tourism industry. Differences in stages of growth and development the LDC fear that the differences in the stages of growth and development between them and the MDC put them at a disadvantage in trading with the MDC in the region. This has led them to reject or delay implementing some of the integration decisions. Influence of multi-national and metropolitan agencies some of the countries in the region are not independent, e.g. Montserrat and Anguilla are still subject to the control of England. An independent state is a country which is not governed or controlled by another country or organization.
Caricom member states have made several attempts at integration, while some of these attempts have been successful, others have met upon obstacles that persist to present. The following factors have hindered the integration process of the Caribbean region:
Absence of common model or strategy for development - Caricom member states have pursued different strategies for political and economic development. There are some that depend on agriculture, another on tourism, one on petroleum. The fact that the varying countries are placing different emphasis on different strategies suggests that a common policy will not exist and countries will only be interested in policies that relates to the strategy they are pursuing. Jamaica would be more interested in debating a common policy on tourism or agriculture because they depend on those for economic development, but would generate little or no interest in a policy on petroleum because they do not pursue such for development. Differences in stages of growth and development - The fact that the Caribbean countries pursue different strategies for development means that they will all be at different levels of growth and development. The less developed countries are hesitant to trade with the more developed countries because of fear that they might be at a disadvantage. Such fear has led to the delay in the implementation of certain factors that would ensure or facilitate the integration process.
Among the diverse levels of development in the region some countries are deeply underdeveloped (such as Haiti and Guyana) and need special attention. Here co-operation and regional action are limited by two types of problem: The absence of a good communications infrastructure; and an ideology of survival that forces inhabitants to prioritize daily problems over long-term matters.
Competition for location of industries - The government of each Member States wants what is best for their country; such aspiration usually leads to competition between the countries for the location of new industries. The competition often times evolves into envy and jealousy among member states. Conflict between territorial and regional demands and loyalties (Insularity) - The Caribbean countries tend to be more interested in satisfying the immediate needs of the residence within their countries than attending to the demands of the region. The member states work hard to attain
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international attention as an individual country than working together as a part of Caricom to attain the same.
Absence of Common Currency - The value of the money in each Caribbean country is different. There are some member states that do not accept the currency of others. In this regard, Caricom residents travelling through the region have to obtain the relevant currency. A common currency would provide for greater level of integration. Unequal distribution of resources - Some member states are blessed with more natural resources than others. Those countries that are abundant in natural resources have utilized the income gained from this wealth for their country's benefit rather than for regional benefit. Lack of diversification in production - It is interesting to note that most of the Caricom member states produce similar products. Most of the member states are dependent on agriculture; therefore, they process and manufacture products from sugar cane, bananas, cocoa, coffee and ground provisions. This puts constraint on intra- regional trade. Influence of multinational corporations - Trans-national corporations have contributed to some of the Caricom Member states running a foul to the objectives of Caricom. Those corporations enter individual member states and bargain with individual governments to grant special benefits such as tax free holidays, repatriation of profits, duty free on raw materials among other things. Those benefits, most times, run contrary to the objectives of Caricom. ------------------------------
8: The Benefits Of Regional Integration The benefits of the Caricom Single Market and Economy Some benefits of the CARICOM Single Market and Economy are: Increased production and trade in goods and services in a combined market of over 6 million persons and for the world beyond. Competitive products of better quality and prices Improved services provided by enterprises and individuals, including transportation and communication Greater opportunity for travel Opportunities for nationals to study and work in CARICOM countries of their choice Increased employment and improved standards of living
There are many benefits to be derived from being a member of Caricom:
Reduction in unemployment and underemployment - The removal of the barriers to intra-regional trade among member states of Caricom increases employment in the region as consumers buy more regionally produced goods. Buying regionally produce goods ensure that jobs are maintained or created because of the demand. Increased market size - Caricom is committed to trade within the region. Therefore, integration provides a larger market for individual member state.
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Free movement of goods, labour and capital - All goods which meet the Caricom standards are traded duty free throughout the region, therefore, all goods created within the region can be traded without restrictions. There is also an agreed upon policy called The Caribbean Community Free Movement of Persons Act enacted in all CSME member states. Under this Act, it allows for the free movement of certain categories of skilled workers, which will later evolve into the free movement of all persons across the CSME member states. There is also a move to eliminate the various restrictions such as foreign exchange controls which will allow for the free movement of capital across the CSME member states. This will allow for the convertibility of currencies or a single currency and capital market integration. Better response to economic implications of globalization and trade liberalization - The act of the larger international companies doing business across the world and in the Caribbean has forced the Caribbean businesses to amalgamate in order to survive, thus creating a greater sense of unity. Caribbean governments can no longer protect the regional manufacturers by restricting extra-regional imports, as such; the Caribbean people have been encouraged to support regional manufacturers. Regional manufacturers have improved their products and services, and this has made it possible for them to compete with producers in developed countries. Improved levels of international competitiveness - Caricom has a stronger, more persuasive voice on international matters than as individual countries. The size of a country dictates to its power, and the integrated approach of the Caribbean countries has lent to greater influence on the international scene. Individual member states are too small to withstand economic competition from more developed countries and trading blocs. A united voice among member states has resulted in better prices for extraregional exports and cheaper prices for imports to the region from other international sources. Increased co-operation among member states -The Integration process among member states of Caricom has allowed for greater co-operation and utilization of the services offered by the different institutions of the organization. Improvement in the quality of life - The increased job opportunities accrued through the cooperative effort of the Caribbean states have led to job creation and economic development and a consequent increase in the quality of life for the Caribbean people
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The Conference of Heads of Government This consists of the heads of government of the member states or any other person designated to represent him or her at any meeting of the conference. Functions and powers of the Conference of Heads of Government The conference is the supreme organ of the community and it determines and provides policy direction for the community It acts as the final authority for the conclusion of treaties on behalf of the community and for entering into relationships between the community and international organisations and states It makes financial arrangements as it becomes necessary to defray the expenses of the community and it is the final authority on questions arising in relation to the financial affairs of the community It may establish such organs or bodies as it considers necessary for the achievement of the objectives of the community The conference may issue policy directives of a general or special character to other organs and bodies of the community concerning the policies to be pursued for the achievement of the objectives of the community and effect shall be given to such directives The conference may consider and resolve disputes between member states. The conference shall regulate its own procedure and may decide to admit at its deliberations as observers of nonmember states of the community and other entities. WEST INDIES FEDERATION The federation was established by the British Caribbean Federation Act of 1956 with the aim of establishing a political union among its members. CARICOM The three main objectives of the community at its inception were economic integration, coordination of foreign policy, and functional cooperation in areas such as health, education and culture, as well as other areas related to human and social development These objectives have been simplified to include: Improved standards of living and work in the region Full employment of labour and other factors of production Accelerated, coordinated and sustained economic development and convergence Expansion of trade and economic relations and enhanced levels of international competitiveness Organisation for increased production and productivity Enhanced functional cooperation, including efficient operation of common services and activities for the benefit of its peoples Accelerated promotion of greater understanding among its peoples and the advancement of their social, cultural and technological development Intensified activities in areas such as health, education, transportation, telecommunications
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CSME The CARICOM Single Market and Economy (CSME) is intended to benefit the people of the region by providing more and better opportunities to produce and sell our goods and services and to attract investment. It will create one large market among the participating member states. The main objectives of the CSME are: Full use of labour and full exploitation of the other factors of production. Competitive production leading to greater variety and quantity of products and services to trade with other countries. It is expected that these objectives will, in turn, provide improved standards of living and promote sustained economic development Free movement of goods and services Through measures such as eliminating all barriers to intra-regional movement and harmonising standards to ensure acceptability of goods and services traded Right of establishment To permit the establishment of CARICOM-owned businesses in any member state without restrictions A common external tariff A rate of duty applied by all members of the market to a product imported from a country which is not a member of the market Free circulation Free movement of goods imported from extra-regional sources which would require collection of taxes at first point of entry into the region and the provision for sharing of collected customs revenue Free movement of capital Through measures such as eliminating foreign exchange controls, convertibility of currencies (or a common currency) and integrated capital market, such as a regional stock exchange A common trade policy Agreement among the members on matters related to internal and international trade, and a coordinated external trade policy negotiated on a joint basis Free movement of labour Through measures such as removing all obstacles to intra-regional movement of skills, labour and travel, harmonising social services (education, health, etc.), providing for the transfer of social security benefits and establishing common standards and measures for accreditation and equivalency.
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The Objectives of the OECS It serves to promote cooperation among its members and defend their sovereignty and territorial integrity. It also promotes economic integration, assists them in meeting their international obligations and responsibilities, and establishes, wherever possible, arrangements for joint overseas representation and common services. The objectives of the ACS This includes the strengthening of the regional cooperation and integration process with a view to creating an enhanced economic space in the region, as well as preserving the environmental integrity of the Caribbean Sea which is regarded as the common patrimony of the peoples of the region. Finally, promoting its sustainable development. Sources Ruel Reid (1998) Challenges to Caribbean Development - 2000 and Beyond. Activities 1. Identify five organisations established in the Caribbean between 1958 and 2010. i) Give the dates each was established ii) Identify the treaty and signatories iii) State the objectives of each organisation iv) Outline the functions of each organisation 2. Suggest three reasons why these organisations were established Integration The need for integration and helping each other in the region; the various ways in which we integrate and factors that facilitate this integration are all looked at. As individuals, we are always given options and so we have three options to choose one - we will look at communications, consumer affairs or tourism. Your teacher may decide which is best for you to do. Question: Is it necessary to study the society and what individuals make of it? Why do you think individuals are necessary for any society to survive? The Road from Colonialism to Independence THE CARIBBEAN has practised/seen several forms of government in its history. The type of government practiced reflected the particular conditions, which existed at the time. Most Caribbean states were at one stage a colony, owned and controlled by another country. Jamaica between 1655 and 1962 was owned and controlled by Britain. THE DEVELOPMENT OF GOVERNMENT IN THE 'C'BEAN' (With special emphasis placed on Jamaica most of the time) The English colonies were first governed under the Proprietary System, with one person the Lord Proprietor responsible for the success or failure of the colonial initiative. Prior to 1656, Jamaica was under Spanish Rule, they were expelled by the English in 1661
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1656-1661 Military Rule: The military took Charge because of the unsettled state of affairs in the island. 1661-1664 Civil Government First civil governor was colonial Edward D'Oyley 1664-1865 Old Representative System This was first introduced in the 1650s and Jamaica never had the Proprietary System
THE OLD REPRESENTATIVE SYSTEM The Government was elected by a minority of the population and ruled for the benefit of only a few people. Only the white landowners, which formed a small number, could vote or had the franchise. This franchise was based on the ownership of property and the payment of taxes. In 1864 out of a population of 450,000 people only 1,903 persons had the right to vote. (Civics for Young Jamaicans) The assembly voted very little very few positive measures for the black masses in the population even after emancipation. The people who formed the government were out of touch with the conditions among the common people. Most Jamaicans in the 1830s were unhappy with colonial rule. They did not have a part in the government of the country and were therefore unwilling to support those who governed. Poor work and social conditions angered them further. Cost of living was rising; wages in 1840 were low. They could not get land and if they squatted on Government lands they got into trouble with the law. This came to a head with the Morant Bay Rebellion in 1865. 1865-1938 Crown Colony After 1865 Direct Colonial rule or the Crown Colony government in Jamaica and other older colonies replaced the ORS.
No assembly as after the Morant Bay Rebellion in 1865 they dissolved and invited England to rule the colony directly. It held great promise of reform for the colonies social welfare and political system. The CC (Crown
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Colony) system was an attempt to introduce greater control by the British authorities. It also ensured that the majority of the population, blacks still did not qualify to vote. The black majority was still unrepresented by their own people with their particular interests in government. In Jamaica by the 1930s many people began to feel that only by achieving self-government could Jamaica progress. Unstable conditions added to widespread political and social distress and sparked off several disturbances/riots. Arising from these riots, several recommendations for improving the social and economical life of the people were made by the Moyne Commission such as: * Universal Adult Suffrage (the right of all citizens over the age of 21 to vote) 1944. This age has since then been lowered to 18 years. * Political activities: vigorous citizenship education aimed at making the Jamaican people aware of what they could do and believe. ROAD TO INDEPENDENCE * 1906: Dr. Love's election to the Legislative Council - first black man to sit there. * 1938: Riots due to social, political and economic distress. * 1944: New constitution recommended by Moyne Commission. Universal Adult Suffrage introduced. * 1953: Ministerial system introduced. * 1957: Free internal self-government. * 1958: Attempt at Federation. * 1962: Independence or Dominion Status. This new constitution provided for full control over internal and foreign affairs. Alexander Bustamante's party won the first general election of that year and so Bustamante became the first Prime Minister of independent Jamaica. Jamaica still remains in an association with Britain by staying within the Commonwealth of Nations. The British Monarch, through her representative the Governor General, remains as the Head Of State. These countries are called the Constitutional Monarchies. Constitutional Monarchy is based on the Westminster Model (British System) CHARACTERISTICS OF WESTMINSTER MODEL *Separation of powers *Two-party system *General elections every five years *Cabinet system of Government *Difference between Head of State and Head of Government CONSTITUTIONAL MONARCHY Jamaica Barbados St. Vincent Grenada REPUBLICS Trinidad and Tobago Guyana Dominican Republic ASSOCIATED STATEHOOD Montserrat
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TRINIDAD AND TOBAGO AND THE DOMINICAN REPUBLIC The President is Titular Head of State, having mainly ceremonial power. GUYANA The President is Head of State and also Head of Government. He/she is referred to as an Executive President.
two benefits that Caribbean people can obtain from being members of the CSME. Correct responses included skilled Caribbean workers can obtain jobs in the different Caribbean member countries and Caribbean people can obtain goods at cheaper prices because of reduced trade barriers among the countries factors that hinder economic integration among Caribbean countries. Correct responses that were welldeveloped and clearly explained to warrant full marks included The countries are at different levels of development and those which are at a higher level such as Jamaica, Trinidad and Barbados may consider that they will carry most of the responsibilities in the integration movement, which would retard their development. The countries produce similar goods and thus there is competition among the territories to produce goods for inter-regional trade and trade on the international market. CARICOM: Helping Disaster Victims. identified a natural disaster and popular responses included hurricanes, volcanoes and earthquakes. Many also gave correct responses for the effects. For example, candidates stated that hurricanes which are usually associated with high winds result in the destruction of forests and other types of vegetation. Another effect was that the beaches are destroyed due to the high and powerful waves which remove sand from the beach. reasons why Caribbean governments need to cooperate in the event of a disaster e Caribbean Disaster Emergency Response Agency (CEDERA) as the regional organization. Correct responses included the fact that there may be damage to infrastructure such as roads and buildings and the country may be unable to rebuild these without aid from Caribbean neighbours. Some areas may be isolated and people may be without water, food and emergency supplies for days. A country may have sufficient trained personnel, equipment and supplies to help in the rescue mission, thus cooperation from among Caribbean governments would be
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necessary. Candidates were asked to suggest to citizens three measures they may take to assist community members in the event of a natural disaster. An example of a measure that was well-developed and clearly explained was for citizens to organize themselves in various groups to do voluntary work in cleaning different sections of the community. Activities included removing fallen trees and properly - 8 disposing of the dead animals. A well explained justification for the measure was that if citizens helped in cleaning the community immediately after the disaster, this would prevent health problems such as the outbreak of diseases the benefits of cooperation and to suggest ways to promote industrial development how to use water from waterfalls and rivers to turn turbines to generate energy. r reasons Caribbean countries develop their physical resources. -Many reasons focused on earning foreign exchange, job creation and to improve the quality of life of citizens. There were some clear responses with reasonable development that were linked to a better standard of living. A few candidates mentioned that the development of physical resources would help in the establishment of industries.
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Regional Integration Key to Caribbean Development

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Regional Integration Key to Caribbean Development

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1: Concepts and Terms Associated With Regional Integration

Associate Institutions of CARICOM

Intensified activities in areas such as health, education, transportation, telecommunications

7: Factors Hindering Regional Integration

There are many benefits to be derived from being a member of Caricom:

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