The Political Social and Economic Situation in the Caribbean Latin America and the Caribbean in 2007-2008: Diversity & Challenge Chinese Academy of Social Sciences Presentation by H.E. Wayne McCook, Ambassador of Jamaica 27 February 2008 OUTLINE •CARICOM • Economy •Political Framework •Integration processes •Future of CARICOM integration - The CSE •Wider regional relations, Cuba, DR, ACS •Foreign policy in CARICOM •Concluding Observation The Caribbean Community •Most countries of the Caribbean community are formerly British Colonies (except Suriname and Haiti). •They share a common history, political system, language, culture and path to independence •They have endured the effects of Conquest, Colonisation, Slavery and Indenture and emerged as stable and progressive societies despite vulnerabilities imposed by size, exposure to natural disasters and the effects of globalization. •The territories of the Caribbean Community share the Caribbean space with Cuba and the Dominican Republic with whom the community has advanced Trade arrangements and maintains special relationships. 1 Dutch, French US and British Territories complete the wider Caribbean area. Describing the Commonwealth Caribbean, Professor Franklin Knight, a leading Caribbean and Latin American scholar observes: “THE COMMONWEALTH CARIBBEAN ISLANDS have a distinctive history. Permanently influenced by the experiences of colonialism and slavery, the Caribbean has produced a collection of societies that are markedly different in population composition from those in any other region of the world. •Lying on the sparsely settled periphery of an irregularly populated continent, the region was "discovered" by Christopher Columbus in 1492. Thereafter, it became the springboard for the European invasion and domination of the Americas, a transformation that historian D. W. Meinig has aptly described as the "radical reshaping of America." (Knight) Caribbean Economy The Caribbean Community is comprised in the main of middle income developing countries characterised by small size and relatively open economies. The Caribbean Economy is largely service oriented with Tourism being the predominant industry. Oil and related industries have long been pivotal to the Trinidad and Tobago Economy and recent discoveries in other territories as well as ongoing exploration in others are widening the scope of this sector. 1 CARIFORUM/CRNM/ACS Bauxite/Alumina remains dominant in the Jamaican Industrial sector and to a lesser extent in Guyana while agriculture continues to play a significant role in Guyana, Suriname, Belize and Jamaica. (Add Slides Economic and notes) Political Systems The political systems in the region reflect to some degree the historical legacy of the colonial arrangements with the “First Past the Post – Winner takes all electoral principle prevailing. There are with exceptions in Haiti, Suriname and Guyana, in which Legislative Seats are awarded in proportion to votes received. Within the First Past the Post tradition some countries have demonstrated by and large, a predictable and entrenched two party system in particular Jamaica and Barbados where, while smaller parties might exist, the two main parties dominate, with power alternating between them. 2 In some nominally two party systems the reality for decades after independence was one party electoral dominance for example in Trinidad and Tobago, the People's National Movement remained in power from 1956 to 1986. A similar situation obtained in Antigua & Barbuda, Saint Kitts and Nevis, and Grenada where parties at Independence retained power for an extended period. This has been altered in recent years with most countries now having viable alternatives in the two party/multi party framework. These parties, many of which were formed at, or soon after independence, all have core bases of support which virtually guarantee their longevity and a minimum level of electoral support. Observations on the Political System Some commentators have sought to analyse critically, the impact of the choice of political systems on Caribbean Governance. They offer mixed reviews on the applicability of pure Westminister/Whitehall principles in the Caribbean. In heterogenous societies like Trinidad and Tobago one political leader suggested that in the context of the plurality of the society “surely we could 2 P9 Selwyn Ryan: An analysis of elections and party systems in the Anglophone Caribbean between 1944 and 1991 by Patrick Emmanuel (1992) reveals that there were 130 entities variously styled which contested the 101 elections which were held in the 10 countries over the period. Most of them were mini-party alliances, have won election alliances which enabled governments to be formed. The patterns and character of the altenations that have taken place cross the region were also varied. Selwyn Ryan – Winner Takes All. find a system that is indigenous to our own makeup” 3 – Selwyn Ryan, Winner Takes All. In homogenous societies like Jamaica one Party Leader has called for adaptation of specific measures to better effect a separation of Executive Power from other mechanisms of authority and governance. The debate however does not question the commitment to the enfranchisement of the populations and the accountability of Governments to the electorate and so far no radical change to the basic model of Government has yet been effected in The English Speaking Caribbean. The quest for an optimal political structure continues to arise as observers assess such factors as: – – – The seeming paradox of the “Loyal Opposition” by definition a partner in Government recognised by constitutions to be so, yet required by political realities to pursue ultimate party success by unseating the Governing party in the Government to which it must be loyal. This unseating cannot be achieved by benign steps and so the Opposition must often choose to aggressively challenge the incumbent to sharpen the distinctions between themselves and the leadership. This balance of cooperation and competition varies with issue and circumstance but in the election season the latter appears to trump all other concerns. The concentration of power in the executive with the vesting of far reaching authority in the Prime Minister and Government. Parlimentary restraint is limited to specific constitutional and legislative prescriptions outside of which the executive has a wide ranging ability to shape and implement its agenda. The challenge of balancing equity with the inexorable push for patronage that comes from the competitive process for securing power. Parties often face the challenge of balancing the need to draw into government those who shared and shaped their platform and philosophy and delivering visible benefits to supporters and constituents without succumbing to the excesses that privilege patronage over progress and victimisation over responsible balancing of benefits and responsibilities. Globalisation and Ideology – In the post Cold war era the distinctions between parties are less sharply drawn in ideological terms. In recent times the Caribbean parties have increasingly tended to the centre 3 No other region in what has been called the Third World has had, for so long, so many liberal politics. The Caribbean’s capacity to sustain liberal democratic politics is impressive. Since independence (beginning with Jamaica and Trinidad and Tobago in 1962) ten of the twelve (Guyana and Grenada excepted) Anglophone Caribbean countries have consistently held fair elections and have been free from unconstitutional transfers of power. (Dominguez, Pastor and Worrell 1993:7) (whether left or right of it) with hybrid policies of pro market economics and responsive social polices prevailing. Parties that have responsed Democratic Socialism like the PNP, adopted polices of economic liberalisation and fiscal restraint often requiring social and economic adjustments to secure economic goals. The incoming Jamaica Labour Party in the face of pressures of commodity price increases and effects of a natural disaster has introduced fiscally demanding social support measures that require new public expenditure to address social needs. – Globalisation in all its aspects has tempered the ability of political parties to adopt narrowly defined principles and priorities particularly in Governance. – The Caribbean with its open economies, many vulnerable to a variety of shocks cannot but be affected by globalisation. – Parties with a commitment to Labour must contend for example with the tide of Trade and economic liberalisation which inevitably poses challenges to their constituencies. The globalisation of certain social agendas has impact on policy choices such as the Death Penalty for example where international activism has run counter to the mood of the Caribbean populace but has to be given political attention in view of the sheer weight of that lobby. Background To understand the political order that predominates in the caribbean Community in particular the English speaking Caribbean it is important to recall the Colonial order that was established and maintained in the region. The Colonial society was essentially an extension of the Metropole wherein settlers control was exercised by the Colonial authority with and in the primary interest of the British settlers. With sugar and slavery it meant rule for and behalf of a minority and the enslavement of the majority. Post Slavery this gave way to grudging and excrutiatingly slow and painful concessions to the interests of the majority. 4 Colonial Governance The British Colonies were administered as Crown Colonies – direct administration by an appointed Governor or via A somewhat representative form of government in which the legislature was elected by limited numbers from the elite.5 Agitation and Political Change The Early to mid 20th Century was characterized by agitation for improvements in the conditions of the majorities and ultimately calls for universal suffrage, self government and political independence. These were manifested in several instances of violent protest, riots and clashes as well as strikes and agitation. Over time education and exposure of an emerging intellectual elite spawned more organized and vigorous efforts at political activism with the Labour movement playing a vitally important role. It is in this context that many of •4 The early English colonies, peopled and controlled by white settlers, were microcosms of English society, with small yeoman farming economies based mainly on tobacco and cotton. A major transformation occurred, however, with the establishment of the sugar plantation system. To meet the system's enormous manpower requirements, vast numbers of black African slaves were imported throughout the eighteenth century, thereby reshaping the region's demographic, social, and cultural profile. Although the white populations maintained their social and political preeminence, they became a numerical minority in all of the islands. Following the abolition of slavery in the mid-nineteenth century, the colonies turned to imported indentured labor from India, China, and the East Indies, further diversifying the region's culture and society. The result of all these immigrations is a remarkable cultural heterogeneity in contemporary Caribbean society HISTORY ( McKnight) •5 The abolition of slavery was also a major watershed in Caribbean history in that it initiated the long, slow process of enfranchisement and political control by the nonwhite majorities in the islands. McKnight the enduring political parties were formed and based their organizations and structure. 6 The increased opportunities for education opened up a space for the emergence of new thinkers who sought to apply the lessons learned to the task of decolonization, self government and nation building. The fuel for this effort was largely the workers’ movements whose organizations were able to organize and deploy considerable pressure on the authorities in the interest of their workers and, in alliance with political movements, lay the basis for effective political action. In this context the political leadership of many territories came from the ranks of Labour Leaders. 7 6 Education produced two groups in the British West Indies. The first identified closely with the British system--especially with the Fabian Society of radical thinkers within the newly formed British Labour Party--and sought political reforms through conventional parliamentary channels. •The second group, inspired by the idea of a spiritual return to Africa, was more populist and more independent than the first group. •The political agitation of these groups laid the groundwork for the generation of politicians who later dismantled colonialism in the British Caribbean: Norman Manley and Alexander Bustamante in Jamaica; See Knight: The Commonwealth Caribbean •7 In most colonies a very close bond developed between the political parties and the workers' unions. In Jamaica, the Jamaica Labour Party drew its basic support from the Bustamante Industrial Trades Unions. Its rival, the People's National Party, was at first affiliated with the Trades Union Council, and after the purge of the radicals in 1951, created the National Workers' Union--the popular base that catapulted Michael Manley to political eminence in 1972 (see Historical Setting, ch. 2). In Barbados, the Barbados Labour Party depended in the early days on the mass base of the members of the Barbados Workers' Union. Likewise, labor unions formed the catalyst for the successful political parties of Vere Bird in Antigua, Robert Bradshaw in St. Kitts, and Eric Gairy in Grenada (see Government and Politics on individual countries, ch. 4 and ch. 5). The notable exception was Eric Williams in Trinidad. His Peoples' National Movement, established in 1956, succeeded despite a constant struggle against a sharply divided collection of strong unions Robert Bradshaw in St. Kitts; Vere Bird, Sr., in Antigua; Eric Matthew Gairy in Grenada; Grantley Adams in Barbados; and Uriah Butler, Albert Gomes, and Eric Williams in Trinidad. Integration short of political union8 In response to the rising tide of political agitation for enfranchisement and ultimately self government and Independence the British sought to pursue this objective en bloc by seeking to create a Federation that would be the political structure for an independent West Indies. The Montego Bay Conference of 1947 sought to develop the idea and over several decades efforts were made to advance the idea in the region. Dispersed as the territories were with many being small and lacking direct linkages with others the idea was ultimately to fail.9 With the failure of the Federal effort the movement to full independence began with the larger territories of Jamaica, followed by Trinidad and Tobago being the first to go.10 Many of the advocates for self government, •8 Despite shared historical and cultural experiences and geographic, demographic, and economic similarities, the islands of the former British Caribbean empire remain diverse, and attempts at political federation and economic integration both prior to and following independence have foundered. Thus, the region today is characterized by a proliferation of mini-states, all with strong democratic traditions and political systems cast in the Westminster parliamentary mold, but all also with forceful individual identities and interests. Caribbean Islands (Knight) •9 As part of its decision to push modified self-government, the British authorities encouraged the experiment in confederation. The idea had been discussed in the Colonial Office since the later nineteenth century, but it was brought to new life with a regional conference held at Montego Bay, Jamaica, in 1947. The British were interested in administrative efficiency and centralization. The West Indians talked about political independence. Knight The federation began inauspiciously with the leading politicians in Jamaica--Norman Manley (then prime minister) and Alexander Bustamante--and in Trinidad and Tobago-Eric Williams-- refusing to contest the federal elections. This uneasy federation of ten island territories (Jamaica, Trinidad and Tobago, Barbados, Grenada, St. Kitts-NevisAnguilla, Antigua and Barbuda, St. Lucia, St. Vincent and the Grenadines, Dominica, and Montserrat) lasted from 1957 to 1961. Knight 10 In 1962, Jamaica and Trinidad and Tobago became the first Anglophone Caribbean countries to achieve independence. Barbados gained its independence in 1966; the Bahamas in 1973; Grenada in 1974; Dominica in 1978; St. Lucia and St. Vincent and the Grenadines in 1979; Antigua and Barbuda in 1981; and St. KittsNevis in 1983. In late 1987, Montserrat, the British Virgin Islands, the Cayman Islands, and the Turks and Caicos Islands remained crown colonies with limited internal self-government. Anguilla, workers’ rights and “regionalist” and nationalist assertiveness were to lead their territories into negotiated and peaceful transitions to independence. 11 CARIBBEAN Politics Today The prevalence of Westminster style democracy among the majority of CARICOM states and the common approaches to representative democracy shared by all members has made CARICOM a remarkable example of political stability despite the challenges of size, resources and vulnerability to shocks. The immediate post Independence leadership of those who led the charge for independence has in time given way to a new generation of leaders whose support derives less from their historical role and more from the policies and programmes they seem capable of delivering. In recent years electoral results have reflected a certain dynamism in the Political order with the strength of the Two Party structure being reaffirmed in a number of countries. In the case of Jamaica, after a predictable “rotation” of Parties through Government and Opposition an extended run of four terms for the PNP was ended with a return of the JLP in elections in 2007. Similarly in Barbados the return of the DLP to power came after a sustained “Innings by the BLP under Owen Arthur” and in Belize Dean Barrow’s UDP replaced Said Musa”s PUP. In the Bahamas Perry Christie’s PLP was replaced after only one term by the Hubert Ingraham led FNM. In Guyana and Trinidad and Tobago incumbents were returned in their most recent elections. The region is characterized by an engaged electorate for the most part. This compels political parties despite their popularity to be always mindful of the willingness of the populace to assert themselves based on their concerns or their expectations. Taken as a whole, the results point to a vibrancy in the Caribbean electoral environment and among the electorate and a consciousness of their important and potentially effective role in deciding by whom they will be governed. having broken away unilaterally from St. Kitts-Nevis in 1967, became an Associated State of Great Britain in 1976 11 Knight Independence and Integration – Towards a Community In the wake of the Federation’s, demise Caribbean countries chose the path of individual self government, in some cases as twin/multiple island territories. Shortly after the federation folded, Caribbean Leaders of newly independent countries quickly embarked on a mission to pursue new forms of integration. Chastened by the rejection of the Federal Option these Leaders focused on trade and economic and later functional cooperation. It is in this context that the Caribbean Free Trade Association (CARIFTA) was founded by Antigua and Barbuda, Barbados, Guyana, and Trinidad and Tobago on 15 December 1965, (with the signing of the Dickenson Bay Agreement, the Agreement establishing the Caribbean Free Trade Association). They were joined on 1 July, 1968 by Dominica, Grenada, St Kitts-Nevis-Anguilla, Saint Lucia and St Vincent and the Grenadines; and on 1 August, 1968 by Montserrat and Jamaica. In 1971 Belize (then British Honduras) joined the Association. It is to be noted that the OECS members have chosen an even deeper process of integration within the Caribbean space. CARICOM Conscious of the need to effect more far reaching mechanisms for regionl integration the Heads of Government of the Caribbean continued to deliberate on ways of deepening the integration process and ultimately established the Caribbean Community and Common Market (CARICOM). The Community was established by the Treaty of Chaguaramas (Trinidad; 1973, revised 2001) Recognising the limitations posed by limiting the Integration movement to a common market focused primarily on goods the Heads of Government embarked on a revision of the Treaty based on their 1989 decision at the Conference in Grand Anse Grenada. They decided to establish a Single Market and Economy and after nearly a decade of Negotiations the revised Treaty was signed in 2001 clearing the way for the Single Market and Economy’s Establishment. The Caribbean Single Market is now in effect but all observers acknowledge that the Single Economy will be an even more challenging endeavour. The Caribbean Single Market CSM includes 12 countries and provides for inter alia: •Free Movement of Goods •Free Move of Skilled Nationals •Free Movement of Services, and •Free Movement of Capital The CARICOM Economy The Single Economy is slated to begin in 2008 phased to 2015 It envisages the coordination of Fiscal Policy, Financial Policy, Monetary Policy, and Exchange Rate Policy. Tax Harmonisation seems a far way off. Financial Market Integration and liberalisation of services is under study while the Monetary Union is on hold. A policy on currency convertibility is in place and non-binding currency stability standards have been established. Significant challenges remain and it is clear that the achievement of the single economy remains a daunting task. CARICOM has also agreed to the establishment of a Regional Development Fund to be capitalized by Member States’ contributions with a target of US$120 million initially and an ultimate target of US$250 million. In the area of trade, community cooperation has been most significant. CARICOM has also established the CRNM which is a common mechanism for the negotiation of Trade Agreements. It has entered into a number of FTAs and Partial Scope agreements to extend the reach of its Single Market and deepen its integration with selected partners. Agreements reached include: •CARICOM / Colombia Trade, Economic and Technical Cooperation Agreement (not FTA) •CARICOM / Cuba Trade and Economic Co-operation Agreement •CARICOM / Costa Rica Free Trade Agreement •CARICOM / Dominican Republic Free Trade Agreement •CARICOM / Venezuela Trade & Investment Agreement. (not FTA) •USA ?–Canada ?-MERCOSUR? The Wider Caribbean The Caribbean Community has sought to establish and maintain a strong linkage with all other countries and territories. CARICOM/CUBA CARICOM and Cuba share deep and close links. These have been institutionalized in a summit process encompassing all Leaders of CARICOM and Cuba. The summit is to meet every three years. The first was held in Havana 2002, the second in Barbados, 2005 and the 3 rd to take place in 2008. A CARICOM/Cuba joint commission has been in place since 1992. There is a far reaching Free Trade Agreement that has enabled deeper links between the Single Market of CARICOM and the market of Cuba. Besides Trade there are direct investments by CARICOM companies in Cuba and there is strong people to people contact. Cuba is a participant in the Caribbean regional negotiating machinery and collaborates with CARICOM in a number of Trade Policy areas. CARICOM Dominican Republic CARICOM has close relations with the Dominican Republic and although unlike Cuba there is not a structured Summit mechanism the Community and the DR cooperate and collaborate in many areas. In the Economic and Trade Sphere the conclusion with the DR of the first far reaching Free Trade Agreement enabled the Community to expand its regional trade integration to encompass much of its trade with the DR. The DR is also a member of the Caribbean regional negotiating machinery and recently entered into an EPA with Europe together with CARICOM. In this sphere it is a member of CARIFORUM which encompasses all the countries of the region. The ACS • Beyond the special bilateral relations between CARICOM and Cuba and the Dominican Republic it continues to pursue wider regional linkages through the Association of Caribbean States. The ACS provides the institutional framework for widening by encompassing all “Caribbean territories” defined by “contact” with the Caribbean Sea. The ACS is Headquarted in Port of Spain and has focused on functional areas such as Sustainable Tourism, Transport and Natural Disaster issues. Members of the ACS are: Antigua & Barbuda El Salvador Grenada Guatemala Guyana Haiti Honduras Jamaica Mexico Nicaragua Panama St Kitts Nevis St. Lucia St Vincent & the Grenadines Suriname Trinidad & Tobago Venezuela Aruba France Netherland Antilles Turks and Caicos The Bahamas Barbados Belize Colombia Costa Rica Cuba Dominica Dominican Republic Foreign Policy Of CARICOM CARICOM members have agreed to coordinate positions on foreign policy within the context of individual sovereign capacity in this sphere. 12 The region has antradated common positions in bilateral and multilateral fora and has consensual mechanisms to advance this such as the Caucus of Heads of Missions operating in several centres. 12 FN. See Article 6 (h) and Article 16- Treaty of chaguaraness. Some noteworthy Regional Challenges The challenges being faced by the region include – crime which has caused serious public policy concerns in several countries. The impact of drugs and gun running on small states is acutely manifested in some territories and the measures to respond are constrained by issues of scale and resources. The issue of Climate Change and the Environment is particularly important for the region which relies on its natural environment to sustain the main industry tourism and to a lesser extent agriculture and recognizes the impact that sea level rise and changing weather patterns can have on the very survival of the region. The region is also concerned about the global trading environment and is seeking to ensure that matters of size and vulnerability can be properly addressed in the global trade and economic framework. The Way Forward The countries of the Caribbean Community have concluded that in confronting these challenges and pursing goals of sustainable development, a coherent and coordinated community approach is the best way to go. It is in this context that CARICOM remains one of the most deeply integrated communities outside of the European Union. The adherence of all its members to open and democratic traditions which secure the role of the people in electing their leaders and ensuing their accountability is an important commitment that all countries in the region must keep in constant focus. Dominica Independence Head of Date Government SPENCER, Nov. 1, 1981 Baldwin INGRAHAM, July 10, 1973 Hubert Nov. 30, 1966 David Thompson Sept. 21, 1981 Dean Barrow SKERRITT, Nov. 3, 1978 Roosevelt Grenada Feb. 7, 1974 Guyana Country Antigua & Barbuda Bahamas Barbados Belize Last Election Mar. 23, 2004 Next Election by Mar. 2009 May 2, 2007 by May 2012 Jan. 15, 2008 by Jan. 2013 Feb. 7 2008 by Feb. 2013 by May 2010 May 26, 1966 MITCHELL, Keith BHARRAT, Jagdeo May 5, 2005 Nov. 27, 2003 Aug. 28, 2006 Haiti Jan. 1, 1804 PRÉVAL, Réne Feb. 7, 2006 2011 Jamaica St. Kitts &Nevis Aug. 6, 1962 Oct. 2007 by Oct. 2012 Sept. 19, 1983 Bruce Golding DOUGLAS, Denzil St. Lucia St. Vincent & the Grenadines Feb. 22, 1979 Stephonson King Suriname Trinidad & Tobago Nov. 25, 1975 Oct. 27, 1979 Aug. 31, 1962 GONSALVES, Ralph VENETIAAN, Ronald MANNING, Patrick by Nov. 2008 by Aug. 2011 by Oct. 2009 Oct. 25, 2004 Dec. 11, 2006 by Dec. 2011 Dec. 7, 2005 by Mar. 7, 2010 May 25, 2005 May 2010 Nov. 6, 2007 by Nov. 2012