Regional Integration/Development Nexus

Caribbean StudiesAntigua State College

7th March 20119:30-10:30am

PRESENTATION OUTLINEWhat is Integration?The Objectives of the Regiobal Integration

Process in the Caribbean.What is Development?Regional Integration /Development NexusChallengesStatus of the Integration Process in the RegionImplications for other International

AgreementsConclusion

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 IntegrationRegional integration initiatives, according to Van

Langenhove, should fulfil at least eight important functions:

the strengthening of trade integration in the regionthe creation of an appropriate enabling environment for

private sector developmentthe development of infrastructure programmes in

support of economic growth and regional integrationthe development of strong public sector institutions and

good governance;the reduction of social exclusion and the development of

an inclusive civil societycontribution to peace and security in the regionthe building of environment programmes at the regional

levelthe strengthening of the region’s interaction with other

regions of the world

Regional Integration in the CaribbeanEvolution of Regional Integration

Regional Integration in the CaribbeanWest Indies FederationCariftaCaribbean 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

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 CaribbeanEnhanced co-ordination of Member States'

foreign and [foreign] economic policies; andEnhanced functional co-operation, including :– more efficient operation of common services

and activities for the benefit of its peoplesaccelerated promotion of greater understanding

among its peoples and the advancement of theirsocial, 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 NexusDeepening 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 NexusGeopolitical 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.

CHALLENGESDiversity among Members :1.sizei. level of development,ii. commitment to the integration processUn-evenness in intra-regional trade

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.

CONCLUSIONRegional 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.