Regional Integration/Development Nexus
Caribbean Studies
Antigua State College
7th March 2011
9:30-10:30am
PRESENTATION OUTLINE
 What is Integration?
 The Objectives of the Regiobal Integration Process in
the Caribbean.
 What is Development?
 Regional Integration /Development Nexus
 Challenges
 Status of the Integration Process in the Region
 Implications for other International Agreements
 Conclusion
What is Regional Integration?
 Regional integration is a process in which states enter
into a regional agreement in order to enhance regional
cooperation through regional institutions and rules. ...
Regional Integration
Regional integration initiatives, according to Van Langenhove,
should fulfil at least eight important functions:
 the strengthening of trade integration in the region
 the creation of an appropriate enabling environment for private
sector development
 the development of infrastructure programmes in support of
economic growth and regional integration
 the development of strong public sector institutions and good
governance;
 the reduction of social exclusion and the development of an
inclusive civil society
 contribution to peace and security in the region
 the building of environment programmes at the regional level
 the strengthening of the region’s interaction with other regions
of the world
Regional Integration in the Caribbean
 Evolution of Regional Integration
Regional Integration in the Caribbean
 West Indies Federation
 Carifta
 Caribbean Community (CARICOM)
 CARICOM Single Market and Economy (CSME)
 OECS – OECS Economic Union
Objectives of the Integration
Process in the Caribbean
• Improved standards of living and work;
• Full employment of labour and other factors of production;
• Accelerated, co-ordinated and sustained economic
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development and convergence;
Expansion of trade and economic relations with third States;
Enhanced levels of international competitiveness;
Organisation for increased production and productivity;
The achievement of a greater measure of economic leverage
and effectiveness of Member States in dealing with third
States, groups of States and entities of any description;
Objectives of the Integration Process
in the Caribbean
 Enhanced co-ordination of Member States' foreign and
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[foreign] economic policies; and
Enhanced functional co-operation, including :–
more efficient operation of common services and
activities for the benefit of its peoples
accelerated promotion of greater understanding among
its peoples and the advancement of their
social, cultural and technological development;
intensified activities in areas such as health, education,
transportation, telecommunications.
What is Development
 A basic perspective equates development with
economic growth.
 The United Nations Development Programme uses a
more detailed definition- development is 'to lead
long and healthy lives, to be knowledgeable, to
have access to the resources needed for a decent
standard of living and to be able to participate in
the life of the community.'
Regional Integration/Development Nexus
 Alternative Development Model – An alternative
model or paradigm to mainstream development
thinking. Alternative development has been concerned
with introducing alternative practices and redefining
the goals of development and the path taken to arrive
at them.
Regional Integration/Development Nexus
 Deepening Trade Liberalization – The elimination of
trade barriers , has deepened liberalization commitments
among partners, lowering average levels of protection
and increasing competition in our economies.
 Broadening the Scope of Liberalization Disciplines –
Agreements have moved beyond goods trade to
effectively incorporate new disciplines in services,
intellectual property rights, investments, and other issues
of macro economic coordination.
Regional Integration/Development Nexus
 Creating Trade – Generates completely new trade among
its members.
 Attracting Foreign Direct Investment – Creation of
regional markets with a recognizable trademark has been
a tool for distinguishing an area and its nations from
other developing countries.
Regional Integration/Development Nexus
 Economic Transformation – Opportunities for greater
specialization in differentiated products, new
investments, corporate alliances , new export experience,
competitiveness and progressive completion of local
markets in finance, labour and technology.
 Signaling and Locking-in of Structural Reform
Commitments – Establishing legally binding
liberalization and policy coordination arrangements ,
regional integration signals to the private sector the
commitment to the new market-based reforms
Regional Integration/Development Nexus
 Geopolitical Tool – Effective organizing and joint
negotiation enhances the bargaining power beyond that
which each country could have expected to achieve
individually.
 Enhanced Regional Cooperation – Open economies,
greater regional trade and investment have fostered much
cooperation.
CHALLENGES
 Diversity among Members :
size
i. level of development,
ii. commitment to the integration process
 Un-evenness in intra-regional trade
1.
Status of the Integration Process
 Signing, and implementation of the provisions of the
CARICOM Single Market and Economy.
 Signing of the OECS Economic Union Treaty.
Implications for Other International
Agreements
 Use of International Agreements as tools of
development.
CONCLUSION
 Regional integration has provided a backdrop against
which devlopment policy in the has been conducted,
and can continue to be conducted.
 This concept is deeply embedded in the regional
consciousness, that any conception of development,
which downplays it is considered to be inappropriate
to Caribbean needs, or even disloyal to Caribbean
values.