Caribbean integration is a mockery - CSME at a standstill

by Oscar Ramjeet


It seems as if Caribbean leaders are not serious about regional integration. The talk about freedom of movement is only lip service and there is no genuine effort for this to become a reality.

It is since 1989, more than 21 years since the CARICOM Single Market and Economy (CSME) agreement was signed and, although there has been a series of meetings throughout the region, very limited progress has been achieved to date, especially in the area of free movement of capital, skilled labour and the freedom to establish business enterprises anywhere in the Community.

It is rather surprising that former Barbados Prime Minister Owen Arthur, who had been travelling from island to island "preaching" regional unity and for governments to adhere to CSME, has criticised St Lucian-born Mara Thompson, for contesting the vacant seat in St John created after the death of the late prime minister.

The action by Arthur is very surprising and, in my view, very ridiculous because it defeats CSME and the regional integration process, but two friends of mine who are very familiar with regional affairs reminded me that Thompson, when he was prime minister, completely disregarded CSME when he took stringent, harsh and unconscionable action against non-Barbadians, especially Guyanese. He chased them out of the country and many of them did not get the opportunity to take their assets with them.

My friends said that you reap what you sow and said that the sins pass on to the third and fourth generation.

However, two wrongs cannot make a right and Arthur, who served three terms as prime minister, should know better because Mara is a citizen of Barbados and under the Constitution she can hold office as a lawmaker. The Constitution does not state that you have to be a Barbadian by birth. It states a citizen of Barbados and she has been a citizen for the past 21 years by marriage and residency.

Barbados Prime Minister Freundel Stuart has expressed surprise at Arthur's comments.

It seems to me that there is a dim future for the regional integration movement and recently distinguished commentators have been questioning if the CSME has a future. One is David Jessop, Director of the Caribbean Council. He spoke of the criticism meted out against CARICOM Governments and institutions for not ensuring the capacity and economic strength to create a sound regional economic base for investment and trade.

He also touched on the failure to implement regional and external agreements which, he suggests, indicates at best the absence of any coherent long term strategy and, at worse, irreconcilable divisions.

Sir Ronald Sanders, former Caribbean diplomat and well known commentator, suggested that the time had come to stop playing with the aspirations of the Caribbean people and argued that CARICOM needed to devise urgently a comprehensive regional plan utilising the best Caribbean brains that can be assembled from inside and outside the region.

Jessop agrees with Sir Ron's comments and said there is desperate need for a commission with popular support to be empowered to make recommendations on how to move forwards and modernise CARICOM.

The delay by most of the regional governments to abolish appeals to the Privy Council and accept the Caribbean Court of Justice (CCJ) is another glaring example of the lapse by the various administrations. So far only three jurisdictions, Guyana, Barbados and Belize have accepted the CCJ as the final appellate court.

January 15, 2011

caribbeannewsnow

Bahamas Blog International

Economic prosperity in The Bahamas and the Overseas Territories

By D. Markie Spring
Turks and Caicos Islands


The Bahamas and the overseas territories, especially the British Territories -- British Virgin Islands, Cayman Islands and the Turks and Caicos islands -- have always declined the idea of regional integration -- sometimes from an individual prospective and at times from governmental concerns.

In fact, The Bahamas is mostly dependent upon tourism to grow its economy. This country’s proximity to North America has placed it in an ideal position, which ignites, propels and escalates the tourism industry there. Furthermore, its tourism industry accounts for about 60 percent of the country’s gross domestic product (GDP), whilst other important sectors of the GDP, such as tax and the financial sectors, make up the other 40 percent of GDP.

Let me stress that, although the economy there seemed vibrant hitherto, in years to come The Bahamas tourism industry will not be able to sustain its economy. From an economic prospective, The Bahamas economy is not diverse enough for future sustainability.

Recently, the global economic downturn has resulted in the loss of thousands of jobs in The Bahamas alone. Because its economy relies heavily on visitors’ arrivals, which experienced a sharp decline, hoteliers were then forced to lay off workers. Some hotels had more employees than guests in-house.

The government of The Bahamas has an obligation to further diversify its economic environment through regional integration. When the tourism sector is affected, whether by natural disasters or by an act of terrorism or by challenges derived from social, environmental, political and economic factors, The Bahamas must be able to turn to an alternative sector for economic sustainability.

Similarly, the overseas territories -- especially Britain’s -- have also illustrated lack of support for regional integration. With much focus on the Cayman Islands, this country’s economy relies heavily on its humongous financial services industry, which is ranked fifth in the world’s banking centers. In addition, the government also piled up revenues from its taxation system. This together has placed the Cayman Islands at the top in the region, relative to the standard of living.

Looking at Cayman’s economic environment allows me to conclude, hitherto, that this country’s economy is not diverse enough to maintain viability in the long run. With the financial challenges faced by the United States and the European Union, the financial sector there is gravely affected.

Additionally, the Cayman Islands were forced to regulate its banking operations under the principles of the European Union Savings Directives (EUSD), coupled with intense pressure from the Organization for Economic Cooperation and Development (OECD) to prevent Cayman Islands’ offshore financial centers from becoming a tax haven. In addition to this, the current US president has disclosed his intention to exert severe pressure of the use of Cayman’s financial centers by multinational corporations.

Moreover, the International Monetary Fund (IMF) has set up programs that regulate the money laundering regime, and the country’s banking, securities and insurance industries. Similar environments exist in the other overseas territorial states.

Constructively, I looked at the lack of interest in regionalism from a Bahamian and from the prospective of the overseas territories and I understand the reason. Picturing the many people who would move from countries with weak economies and high unemployment rates to seek jobs in those places; figuring the movements of other Caribbean national – creating mass migration – I do understand. However, if the situation is being looked from a wider prospective then it should be known that there will be many benefits to gain and that rules and other stipulations will be in place, which would govern the movement of foreign citizens, such as having an assigned job before taking up residence in another country where more jobs are available.

The Bahamas and the Caymans Islands along with the other overseas states must join the rest of the Caribbean to integrate their efforts in making the Caribbean a region a region to reckon with. I stress that individually we won’t be able to sustain our economy and these countries’ economies are not diverse enough to stay strong for much longer. Some citizens purported that too many Caribbean countries are economically disabled to have successful integration; this does carry some concerns; however, the EU has successfully integrated with only the countries in Western Europe having strong economies.

Interestingly, the US, the world economic power, has established many regional bodies to enhance the country’s economic sector.

December 15, 2010

caribbeannewsnow

Bahamas Blog International