International Cooperation and Regional CARICOM Integration

LIHP 2011 Caribbean Group

Presenter Dr Vishwa Mahadeo

CARICOM Integration
History Objectives Why CARICOM integration? Benefits of regional integration Overall Benefits Conclusion

 1928 Regional Cricket Team to England 1968 Caribbean Free Trade Area (CARIFTA) 1958 Political Federation (-1962) 1948 Regional University - UCWI 1973 Caribbean Community and Common Market 1989 Decision to establish the CSME 2006 Entry into force of the Revised Treaty

History of Regional Integration and International Cooperation

CARIFTA

Removal of barriers to regional trade in goods

Common External Tariff

Removal of barriers to regional trade in goods

Token provision for Est. of business Services Movement of capital Co-ord. of econ. Policy

Common Market

- Devpt. of capital markets - Standard setting - Competition policy Co-ordinated devpt - Consumer protection of productive and econ. sectors Removal of barriers Single Market and Economy Goods, services, capital flows technology Free movement of skilled persons

http://www.vadlo.com/b/q?&sn=158621799&k=PPT+for+CARICOM& rel=2&srt=0&rll=0

Harmonisation of macro-economic policy Rights of Common external trade establishment of Policy enterprises

Member States of the Caribbean Community

Antigua & Barbuda Bahamas Barbados Belize Dominica Grenada Guyana Haiti Jamaica Montserrat Saint Kitts & Nevis Saint Lucia St Vincent and the Grenadines Suriname Trinidad and Tobago

Governance and Decision Making Structure

The principal Organs of the Community the Conference of Heads of Government the Community Council of Ministers Principal Organs assisted by the following Organs: The Council for Finance and Planning The Council for Trade and Economic Development The Council for Foreign and Community Relations The Council for Human and Social Development The Council for National Security and Law Enforcement and serviced by The CARICOM Secretariat, headed by the Chief Executive Officer (CEO) of the Community, the Secretary General

Challenges for CARICOM

Small countries with limited leverage Not able to exploit preferential markets Not producing enough Not competitive enough Combination of lack of, (or inadequate) resources at the same time that there are unused resources Continued outward migration, unemployment , social restlessness and lack of social cohesion Need to improve standard of living Significant geopolitical and geo-strategic shifts Imperative of optimising development potential of the Region Need for Improved management of the regional environment Crime and security, disaster management

THE RESPONSE
The Conference of Heads of Government of the Caribbean Community, at its tenth meeting in Grande Anse, Grenada in 1989, decided to deepen the integration movement through the establishment of the CARICOM Single Market and Economy (CSME)

The Rationale
In deciding to establish the CARICOM Single Market and Economy (CSME). The Conference of Heads of Government noted the : need to work expeditiously together to deepen the integration process and strengthen the Caribbean Community in all of its dimensions to respond to the challenges and opportunities presented by the global economy.

The Opportunities
Globalisation presents enormous challenges for small economies such as ours in the Caribbean It also simultaneously presents several opportunities to those countries and regions geared to take advantage of it The most important and urgent requirement for seizing the opportunities presented by the global environment is the transformation from a labour intensive to a highly trained knowledge -based workforce

Regional Integration
1989-Caribbean Single Market and Economy (CSME) common market and a harmonization of economic policies In 2001-Treaty of Chaguaramas which revised the CSME

Overview of the CSME

DEFINITION: The CSME is a single economic space, to include all Member States of CARICOM (13 in 1973 plus 2 later, Suriname and Haiti). Article 78 (2)- Full integration of the national markets of all member states of the community into a single unified open market area It allows all CARICOM goods, services, people, and capital to move throughout the community without restrictions (achieve a
single large economic space, and to provide for one economic and trade policy and thereby securing the most favourable terms of trade for Community goods and service exported)

http://www.cifalatlanta.org/workshops/commercial_diplomacy/04202005/presentations/CIFAL_CSME.ppt.htm

Three main pillars for CARICOM regional integration

Economic integration Functional cooperation Foreign policy coordination.

Why INTEGRATE?
Cultural
- Common History and Caribbean Identity

Political
- Decolonization to Globalization

Social
- Shared resources for the betterment of our people - Larger (combined) Economy

Why INTEGRATE?
Economic -Overpowering the limitations of:
Size: small labour force; small individual consumer markets; limited resources for investment; Economic Vulnerability: small/micro economy; natural disasters; structure of economy Rigid economic structure: non-diversified economy; preferential market access; high dependency on customs revenue; -Integration in the Global Economy

Levels of Regional Integration

Political Union

Coordinate aspects of members economic and political systems Remove barriers to trade, labor, and capital; set a common trade policy against nonmembers; and coordinate members economic policies Remove all barriers to trade, labor, and capital among members; and set a common trade policy against nonmembers Remove all barriers to trade among members, and set a common trade policy against nonmembers Remove all barriers to trade among members, but each country has own policies for nonmembers
International Business 4e Chapter 8 - 16

Economic Union

Common Market

Customs Union

Free-Trade Area

Prentice Hall, 2008

Regional Economic Integration

Process whereby countries in a geographic region cooperate to either reduce or eliminate barriers to the free flow of products, people, or capital

Prentice Hall, 2008

International Business 4e

Chapter 8 - 17

Objectives of CARICOM
1. To improve and sustain economic

development of members states through the introduction of free trade.

Economic cooperation whereby barriers to trade such as custom duties, quotas and licensing impositions. Results in trade liberalisation where there is a greater volume of trade

Objectives of CARICOM
2. Functional cooperation in the Caribbean: Shipping Air transport Metrological services Health

Objectives of CARICOM
3. Common policies

Dealing with non members states Trans-national corporation Common external tariff Attracting foreign investors Tourism Importing goods and services from outside the country

Effects of Integration
Potential benefits
Trade creation Greater consensus Political cooperation Creates jobs

Potential drawbacks

Trade diversion Shifts in employment Loss of sovereignty

Prentice Hall, 2008

International Business 4e

Chapter 8 - 21

Benefits of Regional integration

Trade Creation : The people of the region look to CARICOM as a tool to foster development, changes that may not occur if the country functions individually.
Free trade

Removal of duties, taxes and quotas and licensing arrangements Higher levels of demand for goods and services

Benefits of Regional integration

Common policies: A united voice Preferential rates and special quotas can be arranged for Caribbean goods and services Reduction in the competition among member countries

Benefits of Regional integration

Functional cooperation e.g:
establishment of the Caribbean Meteorological Organisation situated in Trinidad and Tobago. Receives data on weather patterns for transmission to other CARICOM states .
Caribbean Public Health Agency
the Caribbean Epidemiology Centre (CAREC) , the Caribbean Food and Nutrition Institute (CFNI), the Caribbean Environmental Health Institute (CEHI), the Caribbean Regional Drug Testing Laboratory (CRDTL) the Caribbean Health Research Council (CHRC)

HEALTH
NASSAU DECLARATION CARIBBEAN COOPERATION IN HEALTH INITIATIVE DECLARATION OF PORT-OF SPAIN ON NCDS

Benefits of Health Integration

Agreements have been signed for Health to improve the development of Health for the Caribbean Community
Ministers of Health at COHSOD VII in April 2002, saw the establishment of the Caribbean Commission on Health and Development. January 2003 the Commission was established with the Support of the WHO- Macro Economic Committee

Benefits of Health Integration

Caribbean Community on Health and Development dealt with:
MDGs (2000) the UNGASS Declaration (2001) the Global Fund for HIV/AIDS/TB and Malaria (GFATM) (2002) 3-Ones Principle enunciated by UNAIDS (2003) the Nassau Declaration (2001) which was a watershed in the history of the Community.

Benefits of Health Integration

This declaration specifically mandated that attention be given to: re-orienting and restructuring health services; increasing access to health services; and placing emphasis on equity and health. This was aligned to PAHOs Health Agenda in the Americas 2007-2015

Benefits of Health Integration

Health development agenda went beyond these precepts to recommend an operational framework for implementing priorities resting on two pillars:
1. 2. the Caribbean Cooperation in Health (CCH) which was inaugurated in the early 1980s; and the Pan-Caribbean Partnership against HIV/AIDS(PANCAP) that was established in 2001 to deal specifically with the consolidated regional/accelerated approach to HIV/AIDS

Benefits of Health Integration

The Nassau Declaration captured within its ambit a range of health imperatives for managing and pre-empting the ill effects of:
chronic and non-chronic diseases; Human resource requirements; Epidemiological tools; - Institutional strengthening; and Governance arrangements.

Benefits of Health Integration

It would be useful to examine the Nassau Declaration in some detail in an effort to assert the premises, the historical connections, the contextual basis of its assumptions and the intent of its trajectory "that propels health to the centre of development". It is however quite evident from a reading of the Nassau Declaration that the Heads of Government challenged us to formulate regional mechanisms (CCH II AND III and PANCAP) to further the cause of health and enhance the viability of the Region's health.

Benefits of Health Integration

The intent of these regional mechanisms - was to provide systematic guidelines for national programmes. While the CARICOM Community was given the impetus by the revision of the Treaty some of its main elements are very pertinent:
unrestricted movement of persons and capital; harmonizing macro-economic policies and trade policies; operationalising policies for sectoral development; and providing for the establishment of enterprises.

Overall benefits of Regional Integration

The Revised Treaty, Chapter 4 deals with sectoral development to health as one of the sectors but does not spell out the methods for functioning as a sector in the same way as it does for agriculture and transportation. However, the Revised Treaty does establish the conditions for the Nassau Declaration to be implemented in such a way that health is fully established and defined as a sector of development within the CSME.

Overall benefits of Regional Integration

The Nassau Declaration and this Report provide us with a coordinated approach/the basis of a coherent strategy for health and development. The findings in the Report intersects with elements of the CCH. The 13 studies that comprise the Report deal with many of the concerns within CCH II. This Report sets the stage for a transition from CCH II to CCH III.

The Caribbean Cooperation in Health (CCH)

The CCH in Health represents a mechanism to unite Caribbean Territories in a common goal to improve health and wellbeing, develop the productive potentials of the people and by definition the competitive advantage of the region.
The mandate of CCH III 2009- 2015 addresses a new orientation towards 1. People-centred development, 2. Genuine stakeholder and community participation and involvement, 3. Effective regional coordination and public health leadership, 4. Outcome-oriented planning and implementation and performancebased monitoring and 5. Resource mobilisation for health, health coverage, and social protection for the people of the region.

The five project goals for CCH III

Creation of a Healthy Caribbean environment conducive to promoting the health of its people and visitors Improved health and quality of life for Caribbean people throughout the life cycle Health Services that respond effectively to the needs of the Caribbean people Adequate human resource capacity to support health development in the Region Evidence-based decision making as the mainstay of policy development in the Region

In the final analysis the objectives of the CARCIOM Integration and the agreements and Declarations ensure that health is propelled to the centre of national and regional development.

Fuchs and Straubhar contend that the most appropriate form of integration must be ...sensitive to the stage of development of national economies and the level of homogeneity of potential members. Regionalists must bear in mind ...the importance of simultaneously (by level of development and relative heterogeneity of members) determined optimal degree of integration;

Acknowledgements
Social Integration in the Caribbean Community, July 2008, Plummer Sandra, Deputy Programme Manager, Caribbean Community Secretariat (CARICOM) International Business 4e, Prentice Hall, 2008, Ch 14 http://www.cifalatlanta.org/workshops/commercial_diplomacy/04202005/presentations/CIFAL_CSME. ppt.htm http://www.caricom.org/jsp/communications/meetings_statements/nassau_declaration_on_health.jsp?me nu=communications International Cooperation and Regional CARICOM Integration, LIHP 2010 The Nassau Declaration http://www.caricom.org/jsp/communications/meetings_statements/nassau_declaration_on_health.jsp? menu=communications The 2001 Declaration of Commitment to the Pan Caribbean Partnership Against HIV/AIDS Provide supportive environment for the collaborative response to fighting HIV/AIDS http://www.caricom.org/jsp/secretariat/legal_instruments/caribbean_partnership_commitment.jsp

Contd
Report of the Caribbean Commission on Health and Development http://www.who.int/macrohealth/action/PAHO_Report.pdf, http://www.vision2020.info.tt/pdf/Policies%20and%20Procedures/Policy%20 Documents/Overview%20CCHD%20HOG.pdf Needhams Point Declaration http://www.caricom.org/jsp/pressreleases/pres167_07.jsp Declaration of Port of Spain Comprehensive and Integrated Approach to the Control of CNCD http://www.caricom.org/jsp/pressreleases/pres212_07.jsp http://www.caricom.org/jsp/community/chronic_non_communicable_diseases/summit_chronic_non_commu nicable_diseases_index.jsp

Mighty Kaiteur