REGIONAL INTEGRATION
Regional Integration involves the unification of a numbers of nation states into a larger whole.
The degree to which the separate states are willing to share and unify indicates the degree of
integration.
Challenges faced by the Caribbean Region:
1. Small island nations
2. Human resources
3. Unemployment & Underemployment
4. Migration
5. Brain Drain
6. Economic Challenges
a. Debt Burden
b. Shortage of Capital
c. Productivity
d. Limited Physical Resources
e. Lack of Diversification
f. Imports and Exports (More “high cost” imports and less “low cost” exports)
g. Markets in developed countries
7. Technology and Infrastructure
a. Inadequate technology
b. Transport
8. Natural Disasters
Why Regional Integration?
The purpose of regional integration is to enhance the development of the region. There are many
benefits of regional integration:
1. Members are too small to withstand economic competition from larger countries and
trading blocs. When resources are pooled together, a unified Caribbean is better able to
negotiate deals with bigger countries and trading blocs.
2. Stronger more persuasive voice in a global matters as CARICOM
3. Foster a sense of Caribbean identity to better understand and appreciate cultures,
traditions, values and customs of other member states.
4. Providing greater employment benefits as persons could apply for work permits to work
in member states.
5. Improving the economy by helping businesses to thrive through policies of free trade,
free movement of labour and tariff (tax) reduction or elimination.
6. Developing the human resources and reduction of brain drain.
7. Improving infrastructure and access to educational and health facilities throughout the
region.
TIMELINE OF REGIONAL INTEGRATION:
ORGANISATION
West Indian Federation
Caribbean
Free
Trade
Association (CARIFTA)
Caribbean
Community
(CARICOM)
Organisations
of
Eastern
Caribbean States (OECS)
Association of Caribbean
States (ACS)
CARICOM Single Market &
Economy (CSME)
ESTABLISHED
1956
1965
COLLAPSED
1962
1973
1973
-----
1981
-----
1994
-----
2002
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ATTEMPTS AT POLITICAL INTEGRATION IN THE CARIBBEAN:
1) WI FEDERATION
The WI Federation was the first attempt at political union among a group of 10 British colonies
with the signing of the British Caribbean Federation Act of 1956.
Member states:
1. Antigua & Barbuda
2. Barbados
3. Dominica
4. Jamaica
5. Grenada
6. St. Kitts-Nevis-Anguilla
7. Montserrat
8. St. Lucia
9. St. Vincent & the Grenadines
10. T&T
FUNCTION: To seek Independence from Britain as a single state.
N.B. – The WI Federation collapsed in 1962, following a 1961 referendum in Jamaica and the
subsequent withdrawal of T&T.
2) CARIFTA
Was founded in 1965 with the signing of the Dickenson Bay Agreement with original members:
1. Antigua and Barbuda
2. Barbados
3. Guyana
4. T&T
Subsequent members:
5. Dominica,
6. Grenada,
7. St. Kitts-Nevis-Anguilla,
8. St. Lucia &
9. St. Vincent & the Grenadines (July 1968)
10. Montserrat &
11. Jamaica (August 1968)
12. Belize (1971)
FUNCTION: Established to unite the economies of these countries and to give them a more
powerful, joint international presence.
N.B. – CARIFTA became CARICOM in 1973.
3) CARICOM
CARICOM was established on 1973 with the signing of the Treaty of Chaguaramas.
FUNCTION: promotes economic integration and functional co-operation among its members.
In addition to the 15 member countries, there are also 5 Associate Members and 8 Observers.
The 5 Associate Members, who do not receive the full benefit of being a member state, are:
1. British Virgin Islands (1991)
2. Turks & Caicos Islands (1991)
3. Anguilla (1999)
4. Cayman Islands (2002)
5. Bermuda (2003)
N.B. – CARICOM is the main organisation promoting regional integration.
4) OECS
OECS is a group of the Lesser Developed Countries (LDCs) of the Commonwealth Caribbean. It
was established in 1981 following the signing of the Treaty of Basseterre. The British Virgin
Island joined in 1984 and Anguilla in 1995.
FUNCTION: promote integration among the LDCs. They also share a common currency (the
Eastern Caribbean Dollar)
5) ACS
The ACS was established in 1994 in Cartagena de Indias, Colombia.
FUNCTION: It sought to bring together a number of Caribbean and Latin America countries, to
strengthen the processes of regional co-operation and integration and promote sustainable
development in the region.
Heads of Government Conference functions:
 To determine policies of CARICOM
 Concludes treaties between countries
 To be responsible for making financial arrangements
 The final authority on questions relating to financial affairs
 Considers and resolves disputes between member states
 Admits or allows observers
 Establishes other organisations
Sub-committee is made up of the Chairman of the conference, incoming Chairman, outgoing
Chairman and Secretary General. The functions of the sub-committee include:
 To initiate proposals
 To update consensus of members states which will be determined by the Conference
 To implement decisions of Caribbean community
 To provide guidance to Secretariat on policy issues
The CARICOM Secretariat is located in Georgetown, Guyana and is headed by the Secretary
General (who is currently Irwin LaRocque from Dominica).
The main functions of the Secretariat are:
 Initiate or develop proposals for consideration and decision by the relevant Organs
 Initiate, organise and conduct studies
 Provide, on request, services to Member States on Community-related matters
 Service meetings of the Organs and Bodies of the Community and take appropriate
follow-up action on decisions taken
 Collect, store and disseminate relevant information to Member States
 Assist Community Organs in the development and implementation of proposals and
programmes
 Mobilise resources from donor agencies to assist in the implementation of Community
Programmes
 Prepare the draft Work Programme and Budget of the Secretariat for examination by the
Budget Committee
 Provide, on request, technical assistance to national authorities to facilitate
implementation of Community decisions; and
 Conduct, as mandated, fact-finding assignments in Member States
Source: http://www.caricom.org/jsp/secretariat/secretariat_index.jsp?menu=secretariat
Objective: By the end of this lesson, you should be able to explain why the small size of
Caribbean countries makes it difficult to overcome certain challenges and how regional
integration would help the members of the Caribbean.
Factors that promote regional integration:
a) Common history & cultural heritage – have similar experiences (colonisation & slavery)
b) Common language – with the exception of Haiti & Suriname, all member states speak
English
c) Small population and economy – which makes it difficult to support sustainable
development
d) Limited physical resources – bigger market to buy & sell goods
e) Underdeveloped human resources - educational aspect such as illiteracy &
underachievement could be addressed regionally (CXC, UWI)
f) Common social issues – teenage pregnancy, HIV/AIDS, drug & alcohol abuse can be
tackled at a regional level
g) Effects of globalization, trade liberalisation and trading blocs
h) Vulnerability to economic shocks and natural disasters – the global village affects the
economies around the world and natural disasters could also affect the region.
Factors that hinder (obstruct) regional integration:
a) Geography of the region – separate islands
b) Absence of common model or strategy for development – each government operates on its
own
c) Differences in stages of growth and development – some countries are more developed than
others
d) Competition – problems occur when the countries are looking for a new location for
industries and they produce the same goods.
e) Insularity – conflict between territorial and regional demands and loyalties. Governments
seek to protect their own interests and their citizens before the region.
f) Absence of a common currency ($)
g) Unequal distribution of resources
h) Lack of diversification in production
i) Influence of Multi-National Corporations (MNCs) – mainly concerned with remittances
and profits
Benefits of regional integration:
a) Reduction in unemployment and underemployment
b) Better response to economic implications of globalisation and trade liberalisation
c) Improvement in the quality of life
d) Reduction in the inequality of wealth distribution
e) Free movement of goods, labour and capital
f) Increased market size
g) Improved levels of international competitiveness
h) Expansion of trade
i) Increased co-operation among member states