CARICOM Chair Says Bahamas Could Still Play Role In CSME:
By Candia Dames -

BRIDGETOWN, Barbados – Heads of Government of the Caribbean Community (CARICOM) meeting here this week are expected to receive a special report which could serve as the roadmap for the implementation of a Single Economy in the region.

While Bahamian government officials are sitting in on meetings in this regard, Prime Minister Hubert Ingraham - who is absent from the conference - has already made it clear that The Bahamas has no interest in the Single Economy or the Single Market, which was established in the region last year.

Barbados Prime Minister Owen Arthur, chair of CARICOM, said that after an unprecedented process of consultations involving all the relevant stakeholders across the region, heads should approve the report of the special taskforce: "Towards A Single Economy and a Single Development Vision."

The plan is to have the Single Economy fully operational by 2015.

"The creation of a Single Economy, as is generally known, will entail measures to support production integration, the harmonization and coordination of economic policies pursued in the region, the building of new regional institutions to carry out the regional policies and new arrangements for economic cooperation to ensure that the benefits of economic integration are more fairly distributed," Prime Minister Arthur said.

On Sunday evening, he strongly urged the adoption of the taskforce report on the Single Economy.

Actions proposed for implementation over the next 18 months include the adoption of the CARICOM Investment Code, the CARICOM Financial Services Agreement, the extension of the free movement of labour to a wider category of CARICOM citizens and early action on the Jagdeo Initiative in respect of collaboration on Production Integration in Agriculture.

According to Prime Minister Arthur, there are also very clear and strong recommendations for approval in relation to the integration of the region’s financial and capital market and the establishment of a regional stock exchange.

Of even greater significance, he said, are the recommendations in respect of the establishment and commencement of operations of a Regional Development Fund to provide the resources to enable lesser developed countries in the Caribbean to benefit more from, and to be properly fitted into the Single Regional Economy and Market Space.

Prime Minister Arthur noted that there are countries like The Bahamas which are members of CARICOM, but do not participate in CSME.

He suggested that The Bahamas and other countries that fall into this category could still play a meaningful role in the agreement – from a social development perspective.

"Can we not conceive of a programme of integration outside and beyond the mere economic sphere, addressing fundamental quality of life issues in respect of education, health care, the protection of our environment, technological development, transportation, security, support for marginalized groups, cooperation in the fight against poverty and towards the achievement of the Millennium Development goals as a collective regional exercise that can benefit both CSME and non-CSME members of our community?" he asked.

"Can we dare to envision therefore a community for all in terms of the geographical embrace of the entire region as well as the extension of benefits beyond those contemplated from the CSME? We can. History is on our side."

Last year, participating states put in place the arrangements to remove the more than 400 barriers and restrictions on the movement of goods, services, the flow of capital, the movement of people and skills, and the capacity of CARICOM citizens to establish enterprises, thus constituting in the region a Single Market.

Prime Minister Arthur said that already, issues regarding the fair distribution of benefits from the CSME are surfacing.

Intra-regional exports have grown between 1995 and 2005 from 13 percent to more than 20 percent of the total exports in the region, but this growth has largely been to the benefit of one country, Trinidad and Tobago, the prime minister said.

"This is unsuitable," he said.

According to Prime Minister Arthur, there has also been an upsurge in intra-regional investment.

"Most of the investments, however, have taken the form of mergers and acquisitions rather than investment in new production capacity," he said. "While some element of corporate consolidation is to be expected, it would not be desirable for the principal effects of capital mobility in the region to be the re-incarnation of the old regional corporate economic system in new institutional garb."

Prime Minister Arthur said the CSME agenda is an ambitious one.

"But the progress we have made, despite the odds, in bringing the CSME into existence, should give us the confidence to take the road least traveled – that of collaborative effort in developing our social systems, our common services and the institutions which directly affect the quality of life our people," he said.

3 July 2007