REGIONAL INTEGRATION
WHY INVEST IN TRINIDAD &
TOBAGO?

http://www.youtube.com/watch?v=0bzmJO6zXnk
THE MIGHTY SPARROW FEDERATION

www.youtube.com/watch?v=NZ7mU4DCtbc
BOB MARLEY – ONE LOVE

http://www.youtube.com/watch?v=gWBrlnlKeqE
REGIONAL INTEGRATION –
Glossary of Terms
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Regional Integration – involved the unifying of a number
of nation states into a larger whole. The main theme running
through the efforts at regional integration is that of cooperation.
Economic Integration – is an agreement and attempt
among countries in a geographic region to reduce and
ultimately remove, tariff (tax or duty) and non-tariff barriers
to the free flow of goods or services, labour or capital among
member states.
Stages of economic integration – The degree of economic
integration can be categorized into five stages:
1.
2.
3.
4.
5.
Free trade area
Customs union
Single market
Economic and monetary union (single currency)
Complete integration (political union)
REGIONAL INTEGRATION –
Glossary of Terms
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
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Common Market (or ‘Free’ Market) – a group of
countries, in a common geographical area, formed to promote
few or no duties on trade and free movement of labour and
capital among its members. For example, CARICOM
(Caribbean Community and Common Market)
Single Market – is a space within which goods and services,
people, capital and technology freely circulate. Thus, for
example, moving goods or services, capital or people from
Trinidad and Tobago to Barbados would be no different from
moving them from Port of Spain to San Fernando.
Single Economy – This requires unified economic and
monetary policies, including related legislation, executive
instruments and institutions. One of the most important
instruments of a single economy is a single currency, so ALL
members states would use the same money.
An example of a Single Market and Single Economy is the
CSME (The Caribbean Single Market and Economy).
REGIONAL INTEGRATION –
Glossary of Terms
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Bilateral Agreement – an agreement or contract made
between two countries
Multilateral Agreement – an agreement or contract made
between more than two countries.
Independent State – is a sovereign (free) state which
exercises self-government over its affairs.
Underdeveloped
Country
–
a
non-industrialised
(agricultural) poor country that is seeking to develop its
resources by industrialization.
Developing Country – a semi-industrialised country that is
seeking to become more advanced economically and socially.
Developed Country – a country with a lot of industrial
activity and where people generally have high incomes.
Criteria used to measure development for countries are:
Gross Domestic Product (GDP), industrialisation and Human
Development Index (HDI).
REGIONAL INTEGRATION –
Glossary of Terms
Harmonisation – to come to some agreement or
harmony of something (e.g. a policy or contract).
 Trading Bloc – is a type of agreement where regional
barriers to trade (tariffs, customs and duties) are
reduced or eliminated among participating countries.
 Fiscal Policy – it is the policy of a government in
controlling its own expenditures and taxation, which
together make up the budget deficits & indirect taxes
 Monetary Policy – is what central banks use to
manage the amount of liquidity (cash & credit) in the
economy and they focus specifically on exchange,
interest rates and the commercial banks.

REGIONAL INTEGRATION –
Glossary of Terms
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Trade Liberalisation – The removal or reduction of
restrictions or barriers on the free exchange of goods between
nations. This includes the removal or reduction of both tariff
(duties and surcharges) and non-tariff obstacles (like licensing
rules, quotas and other requirements).
Globalisation – The worldwide movement toward economic,
financial, trade, and communications integration through the
use of advances in technology. It refers to the world as a
“global village.”
Multinational Corporation (MNC) – a corporation or large
business that has its facilities and other assets in at least one
country other than its home country. Such companies have
offices and/or factories in different countries and usually have
a head office where they co-ordinate global management.
Acculturation – is when a culture changes because of other
cultures (e.g. American influence on T&T).
BENEFITS AND DISADVANTAGES OF
GLOBALISATION & TRADE LIBERALISATION
ADVANTAGES
DISADVANTAGES
• Free movement of labour and money • Freer markets means governments
means more investment in poorer
have less control over trade & MNCs
countries
• Globalisation via the internet have • Richer countries have an advantage
opened up international markets for
over poorer ones because they have
local businesses (Angostura Bitters)
more resources
• Sharing technology helps developing • There
is
risk
of
harmful
countries catch up with richer ones
acculturation as cultures lose their
uniqueness because of influences of
American media
• Easy access to goods should raise • Small developing states become a
standard of living of many in poorer
‘dumping ground’ for unwanted
countries
products from wealthy countries.
• Regional
integration
may
enhanced and accelerated
be • Employment may increase but with
very low wages, in poor working
conditions with little job satisfaction.
WORLD TRADE BLOCS
REGIONAL TRADE BLOCS
Major Challenges facing the Caribbean
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
Small size; small national markets
Lack of diversification
Unemployment and underemployment
Low levels of production and productivity
Differences in resource distribution
High levels of indebtedness (debt burden)
High level of cost imports
Shortage of skilled workers
Inadequate technology
Low value of exports
Difficulties in accessing markets of developed countries
Shortage of capital
Vulnerability to natural disasters
STAGES OF REGIONAL INTEGRATION

Stages:
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



West Indian Federation
Caribbean Free Trade Area (CARIFTA)
Caribbean Community (CARICOM)
Organisation of Eastern Caribbean States (OECS)
Association of Caribbean States (ACS)
The CARICOM Single Market and Economy (CSME)
TIMELINE OF REGIONAL
INTEGRATION
MEMBERSHIP OF REGIONAL
INTEGRATION
ORGANISATION
CARICOM
# OF MEMBERS
STATES
15
OECS
9
ACS
25
The diagram above shows the Caribbean countries who are members
of OECS, CARICOM and ACS.
FUNCTIONS
OECS
 CARICOM SECRETARIAT
 CONFERENCE OF HEADS OF GOVERNMENT

(Please see handout for more information)
OBJECTIVES
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OECS & CARICOM:
1.
2.
3.
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The establishment of common services and cooperation in
functional matters such as health, education, culture, industrial
relations & communications.
Integration of the economies of member states
Harmonisation of foreign policy
CSME:
1.
2.
3.
4.
5.
6.
Free movement of goods and services
Right of establishment where any CARICOM-owned business can
establish in any member state without restriction.
Free movement of capital
Free movement of skilled labour
Improved standards of living and work
Enhanced international competitiveness
OBJECTIVES

The CARICOM Single Economy Harmonisation of:
1.
2.
3.
4.
5.

Fiscal (tax) policies
Monetary policies (including a single CARICOM currency)
External trade policy
Legislation (custom companies)
Sectoral policies in agriculture, manufacturing, fisheries
The Regional Development Fund – is a fund or
account that goes towards development of the
Caribbean region. It is used to assist member countries
to reach a certain economic level so they can benefit
from the integration process.
FACTORS PROMOTING REGIONAL
INTEGRATION

1.
2.
3.
4.
Why should we have regional integration?
Common cultural heritage
Common economic and social issues
Effects of globalisation, trade liberalisation and trading
blocs
Vulnerability to economic shocks and natural disasters
FACTORS THAT HINDER REGIONAL INTEGRATION

1.
2.
3.
4.
5.
6.
7.
8.
9.
What factors deter or hinder regional integration?
Geography of region – islands isolated by water
Absence of a common model or strategy for
development
Differences in stages of growth and development
Competition for location of industries
Conflict between territorial and regional demands and
loyalties (insularity)
Absence of a common currency
Unequal distribution of resources
Lack of diversification in production
Influence of MNCs
BENEFITS OF REGIONAL INTEGRATION
1.
2.
3.
4.
5.
6.
7.
8.
9.
Reduction in unemployment and underemployment
Better response to economic implications
globalisation and trade liberalisation
Improvement in the quality of life
Reduction in the inequality of wealth distribution
Free movement of goods, labour and capital
Increased market size
Improved levels of international competitiveness
Expansion of trade
Increased co-operation among member states
of
Role of Citizens, Businesses and
Government in Regional Integration
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Role of Citizens:
Entrepreneurship – starting your own business
b) Supporting regional producers (e.g. Sunshine)
c) Showing unity and mutual support towards regional fellow
citizens
d) Investing in local and regional businesses
e) Being informed
a)

Role of Business Organisations:
1.
2.
3.
4.
Improving competitiveness
Increasing range and quality of goods and services
Providing opportunities for investment and employment
Successful MNCs within the region (TCL, Sandals, Grace)
Role of Citizens, Businesses and
Government in Regional Integration

Role of Government:
Enacting or enabling legislation
b) Harmonising policies
c) Honouring protocols
d) Educating citizens about the objectives and benefits of
integration
a)
The role of regional agencies in the
integration process

a)
Areas of regional co-operation:
AGRICULTURE:

b)
The Caribbean Agricultural Research and Development Institute
(CARDI)
SPORTS:
West Indies Cricket Board (WICB)
 OECS sports desk
 Confederation of North, Central American and
Association of Football (CONCACAF) – 40 associations

c)
Caribbean
HEALTH:
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Caribbean Public Health Agency (CARPHA), which is made up of:
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Caribbean Environmental and Health Institute (CEHI)
Caribbean Epidemiology Centre (CAREC)
Caribbean Food and Nutrition Institute
Caribbean Regional Drug Testing Laboratory
Caribbean Health Research Council
d)
EMERGENCY RESPONSE:

e)
Caribbean Disaster Emergency Response Agency (CEDERA)
MEDIA:
Caribbean Media Company (CMC)
 One Caribbean Media Limited
 Caribvision

f)
EDUCATION:
University of the West Indies (UWI)
 Caribbean Examinations Council (CXC)

g)
JUSTICE:

h)
Caribbean Court of Justice (CCJ)
SECURITY:

Regional Security Service (RSS) – military and police
personnel from members of OECS
REFERENCES & MORE READINGS
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http://www.businessdictionary.com/definition/commonmarket.html#ixzz33oESWJ77
CARICOM Website –
http://www.caricom.org/jsp/speeches/csme_politicalunit
y_brewster.jsp
http://www.caricom.org/jsp/community_organs/caribbea
n_market.jsp?menu=cob