Mr. Prosper
The Implications of the Current Global Financial\Economic Crisis on Integration
“The Caribbean Experience”
Diedron Lewis [1]
Samantha C. Joseph[2]
Khellon Q. Roach[3]
Abstract
The current financial crisis has brought with it a number of challenges for global economies. The impact of the crisis on the survival of regional blocs has attracted much attention in international circles. More so, the interdependence and interconnectedness of global and regional economies have increased their vulnerability and exposure to the contagion effects of the present crisis. Caribbean countries are no different in this respect. The challenges coming out of the crisis have exacerbated the already difficult economic conditions within the region. Reduced exports, foreign reserves, government revenues, remittances and employment are some of the challenges facing regional economies.
In light of the crisis and its associated challenges, the Caribbean is now at a critical decision point with respect to its drive for deeper regional cooperation. The crisis threatens the core of the region’s integration initiative and also provides opportunities to strengthen regional ties. This paper, therefore, examines whether the strategic responses of individual CARICOM member states facilitates or hinders deeper integration within the region. The paper posits that the sustainability of the region’s integration initiative lies in the adoption of a pragmatic and coordinated regional response to the crisis.
Keywords: CARICOM, Global Financial Crisis, Integration
1. Introduction
The current crisis started with the failure of the Subprime Mortgage Market in the USA. There were a number of key operating factors that contributed to the current financial meltdown; including the existence of a highly innovative and deregulated global financial system, rising assets prices and readily available credit. However, while many may attribute the main cause of the global financial crisis to the lack of
“The Caribbean Experience”
Diedron Lewis [1]
Samantha C. Joseph[2]
Khellon Q. Roach[3]
Abstract
The current financial crisis has brought with it a number of challenges for global economies. The impact of the crisis on the survival of regional blocs has attracted much attention in international circles. More so, the interdependence and interconnectedness of global and regional economies have increased their vulnerability and exposure to the contagion effects of the present crisis. Caribbean countries are no different in this respect. The challenges coming out of the crisis have exacerbated the already difficult economic conditions within the region. Reduced exports, foreign reserves, government revenues, remittances and employment are some of the challenges facing regional economies.
In light of the crisis and its associated challenges, the Caribbean is now at a critical decision point with respect to its drive for deeper regional cooperation. The crisis threatens the core of the region’s integration initiative and also provides opportunities to strengthen regional ties. This paper, therefore, examines whether the strategic responses of individual CARICOM member states facilitates or hinders deeper integration within the region. The paper posits that the sustainability of the region’s integration initiative lies in the adoption of a pragmatic and coordinated regional response to the crisis.
Keywords: CARICOM, Global Financial Crisis, Integration
1. Introduction
The current crisis started with the failure of the Subprime Mortgage Market in the USA. There were a number of key operating factors that contributed to the current financial meltdown; including the existence of a highly innovative and deregulated global financial system, rising assets prices and readily available credit. However, while many may attribute the main cause of the global financial crisis to the lack of
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