Of Sir Edwin, CARICOM and regional integration

by Carlos James, Esq.


CARICOM Secretary General Sir Edwin Carrington has had his share of work cut out for him. However, after nearly 20 years as head of the Caribbean Community, there is little to be excited about in terms of progress made towards full integration.

This, however, does not minimise the significance of the ceremonial activities held in Antigua last week to mark his knighthood, one of the highest honours of an individual’s contribution to national life. Some may rightly argue that a Caribbean Community Award would have been even more symbolic and appropriate, considering his contribution to the region spanning nearly two decades.

It was interesting to read Sir Edwin’s comments, admitting that the institution had failed to bring home its policies to the common Caribbean man, who simply does not see or understand the workings of CARICOM. If I may suggest, Sir Edwin’s comments on CARICOM’s failed public relations policy is more than just a lack of public awareness. What can CARICOM really put forward to the region and flaunt as effective integration policies?

Yes, the people of the region understand what CARICOM means to them, what it implies and what it requires of them, but what exactly is being done, where are the functional policies?

Frankly, there is not much to look forward to from CARICOM as a regional entity. It has lost its sparkle. No longer are we hearing the chorus of regional leaders, who once sang the same tune of regionalism, a single market and a single economic space.

Interestingly enough, Sir Edwin has admitted that the framework to make the CARICOM Single Market (CSM) and the CARICOM Single Market and Economy (CSME) fully operational is in place. In what can be considered a diplomatic cry for help, Sir Edwin confessed that more thrust is needed for both initiatives to take firm steps towards realisation.

In plainer language, for farmers in North Leeward and North Windward, and other rural communities across the region who want better regional access to markets for trade purposes, the vision of a Caribbean single market is failing because of the lack of interest from regional leaders.

CARICOM has become stagnant and cannot handle the surmountable challenges of our region’s changing political economy. It is swiftly withering into a failed institution lacking the energy, vision and the political will to carry forward its mandate which is central to regionalism - The Revised Treaty of Chaguaramas. In no uncertain terms can a framework for integration survive solely on the technical machinery of the CARICOM Secretariat without the political will of the region’s leaders. The structure for the integration process is merely skeletal, crippled, non-functional and hangs on life support.

No amount of media relations, as Sir Edwin envisaged, can connect the people of the region to something that lacks any form of functional capacity without coming across in an ostentatious way. The need for reforms at every faction of the CARICOM fibre is needed.

I must agree that formalising a single economic space is no easy task, the difficulties faced by the powerful European Union is evidence of this, but we must be reminded that the Caribbean Community is characterised by a people of common cultural and political identity. The socio-political dynamics of our region puts us in a more suitable position to establish and benefit from such a union.

Even the big capitalist countries are moving away from monopolistic ideals and trade protectionism. German Chancellor Angela Merkel, ahead of this week’s G20 meeting in Seoul, has warned that the greater danger facing the global economy is a return to trade protectionism. So why is CARICOM failing to further develop its single market and economic space? Where is the political will?

St Vincent’s Prime Minister Dr Ralph Gonsalves, and perhaps a few others, stand out as the lone batsmen at the crease, so vocal and tirelessly struggling to add to the score of the opening political giants of Eric Williams, Tom Adams, Errol Barrow, Michael Manley, et al.

It was Dr Gonsalves in 2003 who, while presenting a lecture in Trinidad to commemorate CARICOM’s 30th Anniversary, questioned:

-- What is the most advanced model of regional integration that the political market nationally can bear?

-- Do the leaders of the region -- political, economic, community and social -- and the people themselves possess the political will and readiness to go beyond the parameters of the individual nation-states and embrace a union deeper than that which currently exists?

-- What is to be done right now to construct, or prepare for the construction of a deeper union between CARICOM countries, or at least between those who are ready and determined, to go forward?

The Caribbean community has yet to answer. CARICOM is in retreat and this makes it hard for the region to get its voice heard. We need to reinvigorate the CSME process or CARICOM will suffer.

Instead of moving towards full integration as a region, we are seeing prime ministers becoming more nationalistic in their policies and utterances. These unreasoning allegiances are insensitive to the harmonisation efforts made by our leaders over the years.

I note the recent tongue-tied comments by Trinidad and Tobago’s Prime Minister Kamla Persad-Bissessar while the hurricane ravaged islands lay open and vulnerable after the onslaughts of hurricane Tomas.

PM Persad-Bissessar, has made similar gaffes in the past, including her now infamous ATM reference at the CARICOM Heads of Government meeting in July. Her utterances on regional matters have been extraordinarily undiplomatic for someone holding the office of prime minister and Commonwealth Chair-in-Office. It is hard to distinguish her constructive utterances from insentient reasoning.

Common foreign policy?

Sir Edwin rightly pointed out that the region needs to develop a strategic foreign policy in order to represent itself on the international stage. I am in agreement with the position that co-ordination of such a framework is paramount, but it must be noted that, while some countries take an aggressive approach towards foreign relations, others are quite stagnant and remain passive in befriending new diplomatic allies. We must not be seen as chiding regional countries who take on new focus in forging diplomatic relations with emerging economies.

In fact, we are in trouble if we continue to sit on the laps of traditional allies, who themselves are going further East, seeking new trading partners and political friends. It is important to our sovereignty to move away from this docile form of diplomacy, no country owns us. We need to shift from this conservative foreign policy focus on bilateral relationships and focus on multilateral action.

Not surprisingly, we see foreign policies grounded on national interest, ignoring the obvious regional implications of which Sir Edwin is so concerned about. Relations with China and Taiwan among our regional states is a never ending game of diplomatic hopscotch, while some continue to act as political stooges to the US and other G8 countries.

A point of interest is the headlines this week where the US and Britain are courting both India and China. The West has turned to the East. So what is so wrong with diplomatic relations with Brazil, Russia, India and China (BRIC), Cuba, Venezuela and oil-rich Iran?

Caribbean countries need to let go of this erroneous belief of indirect dependency on the so-called powerful traditional allies and provide a common foreign policy agenda that can attract the courting eyes of industrialised and emerging economies.

We have made many strides as a region, let’s not turn the wheel back. Let us continue the process of region-wide engagement on the issue integration. There are obvious lessons that the OECS can offer the larger bloc.

November 18, 2010

caribbeannewsnow

Bahamas Blog International

Caribbean globally uncompetitive: Time to get serious

By Sir Ronald Sanders:


Only one Caribbean Community (CARICOM) country made the top 50 countries in the World Economic Forum’s “Global Competitiveness Report 2010-2011”. Barbados is rated at 43 of 139 countries that were surveyed. Trinidad and Tobago, Jamaica, and Guyana were rated 84, 95, and 110 respectively.

No other CARICOM country was rated because of a lack of survey data.

This is not good news for the CARICOM area already beset by severe economic problems including high debt to GDP ratios, increasing unemployment, and contracting economies.

Barbados’ higher ranking over the three other CARICOM countries surveyed is due, according to the Report, to its better health and education facilities and technological readiness, but it got poor marks for inefficient government bureaucracy, access to financing, a poor work ethic among the labour force and foreign currency regulations.

Crime is rated highest among the problems that beset Trinidad and Tobago followed by an inefficient government bureaucracy and, surprisingly, access to financing. None of its rankings – not for basic requirements, efficiency enhancers or business sophistication and innovation - matched Barbados.

However, Barbados’ ranking in the specific areas of business sophistication and innovation at 52, suggests that there is need for the business community to improve its performance if Barbados is to continue to be a leader for the region in maintaining global competiveness.

The Report highlights University-Industry collaboration in Research and Development as a strong point for Barbados. With a ranking of 40, this is an area that Barbados could further develop, and that other CARICOM countries should emulate across a broad area of economic activity.

Like Trinidad and Tobago, crime was identified as the biggest problem facing Jamaica’s competitiveness. An inefficient government bureaucracy, access to financing and an inadequately educated work force were also identified among its major setbacks.

High tax rates headed the list of Guyana’s problems, followed by crime, and inadequately educated work force and access to funding. The enrolment rate for secondary education and hiring and firing practices were Guyana’s two most notable competitive advantages with rankings of 16 and 20 respectively.

So, who are the top ten most competitive countries in the world for business? In order of priority, they are: Switzerland, Sweden, Singapore, United States, Germany, Japan, Finland, Netherlands, Denmark, and Canada.

The inclusion of Singapore, a small island state, is significant. It shows that small size is not a barrier to being competitiveness in business. Singapore, incidentally, was the top recipient last year of investment of every country in the world.

And, what distinguishes these top ten countries from the other 129 nations in terms of their ability to be competitive globally and attract businesses? The World Economic Forum identifies 12 interrelated pillars for competitiveness, among them are: the strength of institutions and laws, political stability, the quality of infrastructure, public health, and education, and levels of technology and innovation. The Forum makes the point that “the pillars are not independent; they tend to reinforce each other and a weakness in one area often has a negative impact on other areas”.

In the case of Singapore, a physically small island state, it is ranked “number one for government efficiency; second for its financial market sophistication ensuring the proper allocation of these factors to its best use”. It is also ranked fifth for its world-class infrastructure with excellent roads, ports, and air transport facilities. In addition, it has a strong focus on education, providing individuals with the skills needed for a rapidly changing economy.

Singapore’s accomplishments are greatly to be admired particularly when it is considered that both Guyana and Jamaica at the time of their independence in 1962 and 1966 respectively were more prosperous than Singapore.

Clearly there are lessons to be learned by Caribbean states from Singapore’s success. Not all of them will be transferable because of the different work culture that exists between Singapore and the Caribbean, but there are other basic experiences and knowledge that Singapore could offer, among them: how to make government more efficient and institutions stronger.

Lessons might also be learned from Malaysia, which, like 13 of the 15 CARICOM states and Singapore, is a member of the 54-nation Commonwealth. Apart from Taiwan, China, and a few oil-rich Arab states, Malaysia is the highest ranked developing country in the competitive index at number 26. In business sophistication and innovation, it is ranked at 25 and 24 respectively of the 139 surveyed countries. Were it not for its security situation, Malaysia would have been higher up the list.

CARICOM countries have to do much better if they are to emerge from their present economic morass and rise up to claim a significant share of the world’s opportunities for investment and business.

Bringing crime under control has to be a top priority for CARICOM countries and they can best do so together. The sooner governments explore the establishment of regional machinery for collectively tackling crime within each country, the better.

Establishing the Caribbean Single Market also should be accelerated with mergers and acquisitions between Caribbean countries being facilitated by legislation. This will improve business sophistication, enhance efficiencies, and strengthen institutions. Taxation levels in many countries also have to be reviewed to make them more competitive globally. Importantly, access to financing should be a high priority that should be tackled by governments and the private sector collectively devising ways to do it.

The government bureaucracy that slows down investment also has to be overhauled rapidly. Inordinate delays and red tape that slow investment cost Investors money. They don’t hang around; not with a world eager to lure them.

A series of meaningful consultations between governments and the University of the West Indies; between governments and the regional private sector organizations; and the creation of task forces drawn from all three could offer implementable solutions to the problems of competitiveness that beset the Caribbean region.

It is time to get serious, or get left behind.

September 10, 2010

caribbeannewsnow

Bahamas Blog International