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COMMENTARYThe paralysis of fear: CARICOM’s greatest enemyTuesday, January 24, 2006by Sir Ronald Sanders
On January 1st last year the CARICOM countries were scheduled to launch the Caribbean Single Market (CSM) with the development into a Single Economy by 2008. It didn’t happen.
Numerous public statements from the CARICOM Secretariat declare that the Single Market started on January 1st this year. In contradiction to those statements, there is to be a ceremony to launch the Single Market in Jamaica on January 30th, and then only by six of the member states: Barbados, Belize, Guyana, Jamaica, Trinidad and Tobago and Suriname. In truth, the world knows that over the last two years great fears have surfaced about the CSME, particularly among the member countries of CARICOM who are also members of the Organisation of Eastern Caribbean States (OECS). These countries are: Antigua and Barbuda, St Kitts-Nevis, Dominica, Grenada, St Lucia and St Vincent & The Grenadines. These fears have paralyzed the necessary action to launch the Single Market by all the countries of CARICOM collectively and joyously. The OECS members have now made it known that they will not sign up to the Single Market at the Jamaica ceremony on January 30th. We can list some of the fears. They include: fear among some of the people that their country will be swamped by persons from other Caribbean countries bringing crime, drug addiction and even ‘another culture’; fear by some of the people that their jobs will be taken by persons from other Caribbean countries; fear by some business people that their enterprises will be put out of business by other Caribbean companies or by imports into their local markets from other Caribbean countries; fear by some governments that unemployment will rise from the collapse of local businesses; fear by some governments that their indigenous people will turn against them politically for allowing entry to ‘foreigners’ from other Caribbean countries; and, fear by some governments that their countries will be relegated to markets for exports from other Caribbean countries while their own exports will decline, thus retarding their development. During the course of 2005, in light of the failure to launch the CSME on January 1st 2005 and with some of the public fears being revealed by the press, the Secretariat did mount region-wide public education programmes. But, by then many of the fears had become deeply ingrained. And, what is very significant is that few of the CARICOM leaders actually went out to public meetings, to town hall occasions or even on radio and television to allay fears and convince people of the importance of the CSME. Barbados’ Owen Arthur was a notable exception. Over the last few months Barbados Prime Minister Owen Arthur and a special Technical Team visited several countries to discuss their concerns, and to indicate that special and differential treatment - including compensatory measures and preferred access to a Regional Development Fund - would be given to Guyana, as a highly indebted poor country, and to the OECS countries. But, a month ago – on December 23rd - the OECS countries indicated to the CARICOM Secretariat that they had decided “individually, and as a group”, that they are “unable to be party to the CSME at this time” Then this month, the same group of countries promised to sign on to the Single Market by March 31st, 2006, provided certain measures are in put in place by then. Among the measures are: a meaningful Development Fund, special industry protection for the OECS, and delayed removal of Alien landholding restrictions. Similar circumstances occurred when the Caribbean Free Trade Association (CARIFTA) was being inaugurated in 1968. The governments of Antigua, Barbados and Guyana had signed the Caribbean Free Trade Agreement at Dickenson Bay in Antigua in 1965 with the intention of reviving the regional integration movement which appeared to have died with the collapse of the West Indies Federation in 1962. After painstaking work by regional technocrats and much bickering among regional governments, the terms of a Treaty to be signed on 1st May 1968 were agreed. But, on that date only Trinidad and Tobago joined the original three countries. Except for Antigua, which was a founding member of CARIFTA, the Leeward and Windward Islands (now the OECS), at the last moment laid a declaration of intent to join on 1 July 1968. A major hold up then was their insistence on the establishment of the Caribbean Development Bank from which they expected development funds would flow mainly to them. Earlier, they had insisted upon – and been granted – various compensatory mechanisms which were embodied in the CARIFTA Treaty. Further, as a response to CARIFTA, they formed the Eastern Caribbean Common Market (ECCM). Not dissimilarly the same countries are now talking about forming an Economic Union. The development of an OECS Economic Union would be a good thing, particularly if it means that the Union would be a single member of the CSME setting trade policy and speaking and acting on behalf of OECS countries as a whole. It would make the OECS group a stronger entity and better able to bargain within the CSME since it would command greater resources and would itself become a bigger market. While history repeats itself, the fears about the Caribbean Single Market live on. They need to be quelled. A clear picture needs to emerge about the establishment and funding of the Regional Development Fund. OECS countries should understand that while they may be given preferential access to its resources, they also need to contribute to it. It is also time that it is said that some inefficient and uncompetitive companies will collapse throughout the region, but stronger Caribbean companies will replace them providing job security and contributing to economic growth; some skilled workers will be displaced in their native locations, but they will have the option of transferring to other places in their Caribbean homeland; criminals from one area of the Caribbean will not be able to travel to other parts of the region to commit crimes for immigration controls will still be in place, and information about criminals will be better organised; there will be competition in the production and sale of goods and services, but competition will also reduce prices. There is still much to do. CARICOM has to develop reliable and sustainable air and sea transportation links if the region’s production is to be truly integrated, and if the region is to become a market for its own production. It will not be plain sailing everyday; but everyday as a single market, the Caribbean will be better placed to endure in a highly competitive world. It is boldness not fear that will take the people of CARICOM forward. Responses to: ronaldsanders29@hotmail.com Back...Most popular articles: viewed, printed and e-mailed
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