Globalisation And The CSMEA 1
DRAFT
GLOBALISATION, TRADE LIBERALISATION AND THE CSME
Patrick Kendall
Economist
Economics Department, CDB
January 2008
“The people of the Caribbean today face a set of challenges of a complexity and magnitude that are unprecedented in the history of the Caribbean and which demand from us as governments and people the most carefully thought out, timely and effective responses. It concerns the workings of globalisation and our response to them.”1
“All of these forces and tendencies taken together ……… will require that we conceive of and build in a very short space of time, a virtual new economic system, featuring enterprises that can hold their market position without any special preference or coddling and that can adapt to rapidly changing market and technological convulsions.”2
“We have as a country supported and actively participated in promoting deeper
Caribbean regional integration as one of the strategic responses to the threats of the processes of globalisation and trade liberalisation, and the CARICOM Single Market and
Economy (CSME) is the centrepiece of this strategy today.”3
Introduction
In July 1989, the political leaders of the Caribbean Community decided to move the Caribbean economic integration process forward from a common market to a single market and economy. The rationale given was that it was the appropriate regional response to the severe economic challenges posed by trade liberalisation and globalisation. Essentially the political leadership views the Caribbean Single Market and
Economy (CSME) as pushing the Region towards greater economic competitiveness in response to the new international economic order dominated by marketisation and the loss of preferences. In 2006, after a period of seventeen years, the CSME was established.4 The questions however remain: (i) In relation to trade liberalisation and globalisation, how appropriate/strong a policy response is this for the Region? If need be, how can the response be strengthened?
The
GLOBALISATION, TRADE LIBERALISATION AND THE CSME
Patrick Kendall
Economist
Economics Department, CDB
January 2008
“The people of the Caribbean today face a set of challenges of a complexity and magnitude that are unprecedented in the history of the Caribbean and which demand from us as governments and people the most carefully thought out, timely and effective responses. It concerns the workings of globalisation and our response to them.”1
“All of these forces and tendencies taken together ……… will require that we conceive of and build in a very short space of time, a virtual new economic system, featuring enterprises that can hold their market position without any special preference or coddling and that can adapt to rapidly changing market and technological convulsions.”2
“We have as a country supported and actively participated in promoting deeper
Caribbean regional integration as one of the strategic responses to the threats of the processes of globalisation and trade liberalisation, and the CARICOM Single Market and
Economy (CSME) is the centrepiece of this strategy today.”3
Introduction
In July 1989, the political leaders of the Caribbean Community decided to move the Caribbean economic integration process forward from a common market to a single market and economy. The rationale given was that it was the appropriate regional response to the severe economic challenges posed by trade liberalisation and globalisation. Essentially the political leadership views the Caribbean Single Market and
Economy (CSME) as pushing the Region towards greater economic competitiveness in response to the new international economic order dominated by marketisation and the loss of preferences. In 2006, after a period of seventeen years, the CSME was established.4 The questions however remain: (i) In relation to trade liberalisation and globalisation, how appropriate/strong a policy response is this for the Region? If need be, how can the response be strengthened?
The
Bibliography: Paramaribo, Suriname, October 19, 2004. 646, may 30, 1992. Biswas, T. and McHardy, J. “Measuring the Balance of Intra-regional Integration,” Applied Economics, Vol.37, 2005, p.2221-2230. XXXII (December 1994), p. 1667-1717. Brewster, H., “The CARICOM Development Fund – Operationalisation,” April, 2007. Caribbean Connect, A High Level Symposium on the CSME, Bridgetown , Barbados, 2830 June, 2006. Growth,” CGCED Report, no.17556-LAC, May, 1998. Caribbean Expert Group Meeting on Human Rights and Development in the Caribbean, “Migration in the Caribbean – What do we know?” 14-15 September, 2005, Port of Spain, De Quiros, L.B., “The European Monetary Union: A Political Time Bomb,” Cato Journal, Vol 19, No.1, (Spring/Summer 1999), p.143-160. Farrell, T. and Worrell, D. (eds.) Caribbean Monetary Integration, Caribbean Information and Services Ltd., Trinidad, 1994. Geneva, 2003. Lall, S., “Market Stimulating Technology Policies in Developing Countries: A Framework with Examples from East Asia,” World Development, Vol.26, 1998, p.1369-1385. Lall, S., “The Technological Structure and Performance of Developing Country Manufactured Exports, 1995-98,” Oxford Development Studies, Vol Programme’s Human Development Report 2001: Harnessing Technology for Human Development, 2001. Lamfalussy, A., “Towards an Integrated European Financial Market,” Blackwell Publishers, Oxford, UK, 2001, p.1287-1294. Peree, E and Steinherr, Alfred, “The Euro and Capital Markets: A New Era,” Blackwell Publishers, Oxford, UK, 2001, p.1295-1308. Randle Publishers, Kingston, 2002, p.455-63. Currency Unions, UC Berkeley, 2000,p.9-45.. Tharakan, P.K.M., “European Monetary Union and Beyond,” Blackwell Publishers Ltd, Oxford, 2001, p.1279-1285.