Download Mechanism for Competitiveness of the Small Caribbean State in the

THE CARICOM SINGLE MARKET AND ECONOMY (CSME):
MECHANISM FOR COMPETITIVENESS
OF THE
SMALL CARIBBEAN STATE
IN THE
NEW ECONOMY
Ronnie R. F. Yearwood
[email protected]
and
Marsha A. Drakes
[email protected]
Prime Minister’s Office1
Government Headquarters
Bay Street
St. Michael
Barbados
ABSTRACT
This paper explores the rationale that underscores Caribbean integration, demonstrating that it is located
within the inherent small size of economy of Caribbean states. The paper also examines the failure of the
national option as a means to promote meaningful and sustained economic growth. It therefore highlights
that the CARICOM Single Market and Economy (CSME) can be a mechanism to promote economic
growth and development through its potential to increase trade and promote human capital development
based on its principles of the free movement of labour, capital and business. Overall, it is concluded that
the CSME is highly desirable as a mechanism for small Caribbean states to use to promote economic
growth in the new global economy driven by information and communications technology, through its
potential to foster human capital development, research, skills and educational development, creativity
and innovation.
1
The views expressed in this paper are solely attributed to the authors and not necessarily the Prime Minister’s
Office (Government of Barbados). Needless to say, any errors are all our own.
I.
CONCEPTUALISING INTEGRATION
The study of integration in international politics has been a consistent feature given concern for the
construction of a peaceful and stable world order among states in the post 1945 period,1 competing in a
Hobbesian type world order based on conflict and war.2 In the Caribbean,3 integration has however been
more concerned with solidifying the economic fortunes and ascension of the region in the global political
economy,4 rather than as an agent of peace given the de-militarised nature and null propensity of the
region for war or high levels of conflict.
Therefore integration in the Caribbean has been studied to understand how the individual state entities can
become a more highly integrated unit from its current position of functional cooperation. The
functionalist school of thought has not only dominated international politics,5 but also the integration
policies of the Caribbean.6 Functionalism is based on a consensus incremental approach perched on a
sensibility that ‘eventually’ the participating units will realise the logic for stronger integration after the
success of lower levels of functional cooperation.7 Given that the central concern of Caribbean states
since independence has been to formulate a means for capital accumulation8 away from a state of
underdevelopment and dependence,9 it comes at no variance that the regional integration project from
inception has taken on this nature within the global political economy.
The integration of the Caribbean has been historically advocated as a platform from which the region,
given its constraints of limited size and vulnerability to external economic shock and natural disasters, can
actively participate within the global political economy. Integration in the region has therefore been
largely tied to the changing nature of the global political economy10 with the process towards integration
being mainly reactionary,11 where it has then been “motivated by and framed around reactions to global
trends, instead of evolving based on local demands”.12 Understanding the nature and study of integration
in the Caribbean as a response to global economic trends, it is imperative that integration be defined.
Integration within the study of politics has often assumed difficulty in fixing a definition.13 Integration
can however be defined as, “… either a ‘process’ toward or ‘end product’ of social, political or economic
unification among separate national units within geographical proximity of one another…”14 Furthermore,
integration refers to varying degrees and types of cooperation15 at the economic or political level as
attempts by sovereign independent states to overcome handicaps of vulnerability posed by size16.
For the Caribbean, given its inability to accumulate capital for development purposes17 due in part to large
external debt18 and historical antecedents of underdevelopment19 integration has taken shape not so much
as a tool to stem anarchist behaviour of state units in regional or international politics, but as a, “tool by
which individual units pool resources in order to achieve a higher level of capital and resource
accumulation”20. Integration is therefore seen as a means for greater collaboration, removal of
discriminations (economic) among participating states and to ensure collective bargaining in response to
external actors21.
II.
THE NATURE OF CARIBBEAN ECONOMIC DEVELOPMENT
The Caribbean has historically been faced with the challenge of finding ways to stimulate sustainable
economic development22 in the global political economy from the 1960s, independence era where
sovereignty has been characterised as a foreign-export of decolonisation23 and questions raised to the
survival of small states in the global economy.
2
Table 1: Determining Factors for Development and Economic Characteristic in (Latin America and
the) Caribbean, 1960 -2000
Sub period
1960/73
1974/82
1983/90
1991/2000
Economic characteristics of Latin America and
International context
the Caribbean
Economic Inflation
Others
growth
Moderate Low
- Agricultural exports - Bretton Woods institutions
and high
Start of trade
- Relative stability in systems of
agreements
finance and international trade
- Models of flexible exchange rates
(1973)
- End of the US$/gold parity (1971)
Moderate Low
- Generation of
- Rising oil prices (1973, 1979)
and high
external debt problem - High liquidity levels of international
banks
Low
High
- Economic adjustment - Increases in US interest rates
plans
- Strong dollar until Sept 1985
- Flexible exchange
- Declining flows of capital to LAC
policies
- Export promotion
Moderate Low
- Economic adjustment - Recovery of capital flows to LA
plans
- From 1990 to 1991 economic
- Export promotion
recession in the most developed
- Strengthening of
nations
regional trade treaties - Since 1991 economic expansion in
the United States and Western Europe
- 1995 Mexican crisis
- 1997/98 financial crisis originating in
South-East Asia
- 1999/2000 high prices for oil and
products, with mixed results in the
region.
Source: Giovanni E. Reyes, SELA, 2002, pp. 924
The region has therefore been generally underwritten by low to moderate economic growth with the
principle challenge to induce higher levels of economic growth (Table 1).
III.
SIZE DOES MATTER
The overall defining characteristic of Caribbean economies has been their size (Table 2). For all intents,
size does matter in the global economy and Caribbean countries being inherently small underscore this
fact. Size as an economic indicator for a country has been difficult to define, as it is a relative concept and
can therefore take no real quantitative measure.25 Additionally the view that small economies are prices
takers cannot stand as all economies even the largest of them, in some cases are price-takers.26 However
three basic indicators have emerged to define small in terms of economic size which are population, land
area and Gross Domestic Product. Population size can be used as indicator of human resource capacity in
relation to labour force. Land size can be used as a “proxy for both the amount and diversity of natural
3
resources”27, which is a key for the base of production, given that small states have low amounts of
production based on physical endowments. The third measure which is the typical gauge of a country’s
wealth, GDP, measures productive output and thereby can act as an indicator of economies of scale and
the productive capacity of a country.
Table 2: Economic Indicators of Small Size of Caribbean States (2000)
Country/Indicator
Antigua and Barbuda
Barbados
Bahamas
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
Suriname
Trinidad and Tobago
GDP %
(US$ billion)
0.7
2.6
5
0.8
0.3
0.4
0.7
4.0
7.7
0.3
0.7
0.3
0.8
7.7
Population
(thousands)
68000
267000
303000
240000
73000
98000
761000
7959000
2633000
41000
156000
115000
417000
1301000
Surface area
(sq km)
440
430
13880
22960
750
340
214970
27750
10990
360
620
390
163270
5130
Source: World Development Indicators Database, 2000
The features of small size for the Caribbean state are clearly highlighted with the population of most
countries below 0.5 million. Further, land mass is small within most Caribbean countries, presenting a
limited resource base for production, and most countries also have a GDP below a billion dollars (Table
2). These figures are indicative of the small size of regional economies, especially in the new global
political economy where private capital appears more pervasive than the nation-state.28 This places the
Caribbean in a peculiarly vulnerable position where every Caribbean country (with the exception of
Trinidad and Tobago) has been categorised within a “high” status on the Commonwealth Vulnerability
Index. This categorisation is concomitant with the nature of Caribbean economies as discussed (Table 3).
4
Table 3: Vulnerability of the Caribbean State
High Vulnerability
Higher Medium Vulnerability
Lower Medium Vulnerability
Low Vulnerability
Antigua and Barbuda
Barbados
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
5
Suriname
Trinidad and Tobago
Source: Small States: Meeting Challenges in the Global Economy: Report of the Commonwealth
Secretariat/World Bank Joint Task Force on Small States (2000:22)
IV: CHARACTERISTICS OF CARIBBEAN ECONOMIES: RATIONALE FOR INTEGRATION
Caribbean economies are characterised by a number of features due to their inherent nature of being
small, which translates into a peripheral position within the global economy. As individual countries, this
small nature has undermined efforts at economic development within the global economy and has
therefore been a large part of the failure of the national option which is discussed in the next section.
Demonstrated here are the features of Caribbean economies such as being open, dependent, mono-culture
that lend to their vulnerability and peripheral integration in the global political economy. It is from these
characteristics that we can locate the rationale for the region to integrate given the inability as separate
state units to pursue meaningful and sustained development levels.
Table 4: Characteristics of Caribbean Economies29
Feature
High Degree of Openness
Description/Reasons
-
6
Low resource base
Heavy reliance on external trade.
High trade dependency ratio
Low potential for export activity based on
natural resource endowments. Example, only
22% (approx.) of total production in
Barbados is based on natural/physical
resources of the country such as agriculture,
mining/quarrying and tourism.
Small Markets
-
-
Mono-Culture/Export Concentration
-
-
Small markets for product and export.
Import Substitution is not a viable option.
Limited economies of scale and scope.
Economies of scale may however be
achieved in transportation, distribution and
advertising cost in the domestic market but
not for export, given quantity of export is
small compared to an international export
market.
Production alternatives limited.
Limited labour markets which encourage the
generalist rather than specialised worker.
Specialised workers within a small economy
have fewer opportunities for employment
than the generalist.
Few goods produced for export.
Economy is not large enough to capitalise on
economies of scale for expansion and
diversification. (But still cannot rely on a few
exports. This is the dilemma of being a small
economy).
Export usually concentrated in primary
products.
Physical Shock/Natural Disasters
-
Prevalence of natural disasters, especially
hurricanes can wipe away economic gains
and devastate infrastructure.
Economic Shock
-
More exposed to economic and market
fluctuations and high terms of trade volatility
than larger economies which not only have
large domestic markets to absorb
shock/change but international markets.
Financial dependency
-
High degree of financial dependency on
multilateral and bilateral flows, commercial
borrowing to finance expenditure and
infrastructural development.
Trade Taxes dependency
-
Trade taxes (customs revenue) make up large
portions of the revenue base the economy.
Reduction in tariffs due to trade liberalisation
therefore threatens economic substantiality
due to lost of customs revenue.
-
Trade dependency
-
7
Preferential access for Caribbean
products/goods through Lome (African-
-
-
-
-
V.
Caribbean-Pacific-European Union),
Caribbean Basin Initiative (CBI) and
Caribbean-Canada (CaribCan) trade
arrangements.
Preferential access arrangements did not
promote product diversification and
competition as only some products were
guaranteed and those were produced.
Preferential access encouraged mono-culture
economic base and primary commodity
production.
Primary products losing market share to
information and service goods.
FAILURE OF THE NATIONAL OPTION
The primary reasons for this “crisis of the national option”30 are to be located within the very nature of the
Caribbean economies as discussed above. Caribbean economies generally have few resources as
individual units for a sustainable resource base, lack avenues for achieving economies of scale and scope
for production, and the economic crutch upon which they are hitched is linked to the export success of
primary product production in the national economic framework. The countries were therefore situated
within the periphery31 of the global economy as, small island developing states, which are susceptible to
the vagaries of the global economy due to limited resources to adapt and adjust in a satisfactory way.
Moreover, it has also been argued that this peripheral nature delineates the states in the region, not only to
positions of underdevelopment and dependency but to drive them towards a process of re-colonisation32
in the new global political economy. It therefore follows that because of the structure of Caribbean
economies the pursuit of development oriented around the national option is not adequate as a model or
framework for Caribbean countries. This has been evidenced as early as in the decade of the debt crisis of
the 1980s. Caribbean economies struggled to contain inflation, which was in turn caused by increasingly
high interest rates. The result was a contraction especially for exporters of primary products as declining
international demand for these primary products affected export earnings, which were the pillars of these
Caribbean economies.33 Simultaneously the debt that had been incurred by Caribbean states in their
formative years also became difficult to service because of the high interest rates. Notwithstanding that
the effects of the crisis were not only felt by Caribbean countries but across the world, it must be
highlighted that the national option for Caribbean states placed severe limitations on their ability to adjust
to global economic change and negotiate and realise development opportunities.
Current socio-economic indicators demonstrate that the national option has not failed to encourage
sustained levels of economic growth and development as (Table 7) demonstrates. Despite this, the
national option has persisted in the Caribbean as state centrality and state ownership have defined the
nature of the market since the post independence era.34 Caribbean countries therefore have not fully
capitalised on regional initiatives for a closer economic union.
With the failure of the national option for development, it is highly dubious that the Caribbean as
individual nation-states can mount the competitive advantage and development of enterprises necessary
for active participation in the global economy. It has been argued that, “It… [may even be] unrealistic to
expect a market of less than six million to provide sufficient trading opportunities to become the engine of
growth for the region.”35 Clearly, therefore if the Caribbean as a unit still faces difficulties in supporting
efficient economies of scale and scope in the new global political economy, then it follows that any
8
consideration of development pursuits based on the national option will severely impair and limit the
development of Caribbean economies.
VI:
REGIONAL OPTION: INTEGRATION AND TRADE
It is premised in this section that the regional option is a means of overcoming the vulnerabilities of small
Caribbean states as it facilitates the promotion of increased trade and thereby economic growth. The study
of Philippe Egoume-Bossogo and Chandima Mendis (2002) represent an attempt to provide a systematic
economic analysis using a gravity model to test the trade creating and diverting aspects of CARICOM.
Evidence from the study36 suggest that CARICOM has had a positive effect on intra-regional trade with
further integration being seen as desirable to allow the region to realise its full trade potential and
consequently, growth potential.
Additionally, the lowering of the Common External Tariff (CET), though trade diverting by resulting in
higher trade with international partners, has not had a negative impact on intra-regional trade as this has
been higher overall. This suggests that further reductions in the CET would facilitate higher levels of
intra-trade. The study also suggest that the World Trade Organisation (WTO) had a negative impact on
trade, given that it has yet to have a positive one, globally and that Caribbean countries need to diversify
given the negative impact that a greater access to the European Union (EU) market for non-AfricanCaribbean-Pacific (ACP) producers have had, for example on the banana market where Caribbean nations
have lost considerable market share. Overall, the study revealed that further regional integration, as it
promoted intra-regional trade was desirable as it had positive effects on the region’s economy.
VII:
THE NEW ECONOMY AND THE NATURE OF COMPETITION
The effects of the so-called new economy, information age and globalisation37 have been discussed in
many differing places and it is therefore not intended for the specific scope of this to engage in that
debate. However the discussion will highlight key points that will shape the analysis for laying a new
groundwork for regional integration, given the premise that if the nature of the global political economy is
changing, then the nature of integration through the practical application of the CSME as a tool must be
representative of that change.
Shifting Economic and Market Principles
The three principles of the old economy; excludability (easy to control), rivalry (scare and expensive for
society to make use of) and transparency (easy to identity) of commodities, are significantly challenged in
the new information driven economy.38 The “value-added” in the new economy is therefore not located
within labour and raw materials as such, though these will remain essential elements in any production
process, but in information and technological innovation. Information goods and services given the
pervasive use of technology, which makes information easily stored, readily transmitted, non-rival and
non-excludable, is coupled with a shift in global trade from primary commodities (agriculture) to services.
Recent economic indicators for the Caribbean are consistent with this trend (Table 7).
Competition in the new economy is therefore shifting away from the final assembly and vertical control
of markets by producers of commodities to proprietary ownership and de facto product standards, which
locate market power39 and the ability to be competitive in the global political economy. This is the new
economy that the CSME and its constituent businesses and governments will have to participate within to
gain competitive edge. The pervasive nature of information technology as it craves out a network society
where information becomes an integral part of all human activity40 drives the new economy. The
extensive use of the computer and internet technology is the most demonstratable evidence.
9
The new market, which extrapolates global reach underpinned by cross-national production networks,
permits a fine division of labour where innovation is located at many points within the production cycle
and available as a commodity on the market.41 Whereas the production process was primarily organised
within national economic framework, based on an international trade system on the exchange of raw
material and commodities manufactured in a national economy42, the new economy lifts that process out
of the national economy onto a global scale of production, driven by information technology and
communications. In the post-Fordist era, “…information is the raw material: these are technologies to act
on information, not just information to act on technology, as was the case in previous technological
revolutions.”43 Information has therefore become a good within and of itself.
As such, the new division of labour is not principally based on low wage or natural resource production44
but on local technical specialisation and the ability to use technology to deliver lower cost products45 and
innovations. The potential savings from shifting productions to exploit low wages are consistently less46
in the production process based more on innovative ability, information technology and communications
than on direct labour costs. This largely pre-empts the industrialisation option for most Caribbean
countries.47 The new economy is therefore based on “more brain, less brawn”.48 With value no longer
rooted in wage-labour, wealth is generated artificially, intensifying the consumption of increasingly nonproductive commodities,49 produced by technological innovation, to underwrite the super symbolic
economy.50 Information within this context as a means to engender economic growth assumes an almost
infinite character that runs parallel to the nature of the new economy.
Resources are infinite
In the new economy, resources can come to possess an “almost” infinite character because of the crucial
component of ideas/knowledge/information and the human capacity to devise new ways of doing things,
which is increasingly providing the base for economies. Simply put, the human capacity to innovate is
infinite. Information then as an economic good that is non-excludable and non-rival contradicts classical
economic thinking about scarcity. The sale of an idea (information good) does not deprive the original
creator of the idea or information, unlike in the sense of a physical good. Further, the sale of a physical
good is still the sale of an idea or information, given it had to be created and translated to physicality for
use.
Integration based on this school of economic thought opens new possibilities as to a new dynamic for
regional integration as well as provides a mechanism for competitiveness in the new economy. Therefore
understanding that resources are not finite in the sense that they can be re-arranged for better usage
provides scope for economic growth.
Thus “…an economy cannot grow merely by accumulating more and more of the same kinds of capital
goods.”51 This is in contrast to classical economic theory, which encourages saving and less spending, or
more spending to stimulate growth. However when the consumer saves to purchase at a later time, they
will buy new products and services. Those new products and services are created by innovation, which
comes from ideas – brainpower, so that when a product was bought, essentially, an idea was purchased.
Growth therefore does not permeate from accumulating the same capital goods as this induces
diminishing returns. It is located within a country’s ability to create new products and services through an
institutional environment that supports technological change.52 Therefore the nature of the CSME is not
only to accumulate capital, which does not in and of itself, assure economic growth, but also to provide a
fertile bed for the growth of creative ideas, which translates into new products and services for economic
growth.
10
Creative destruction53 entails the old production standard being replaced by the new which implies that
essentially the rules of the market will change. In relation to the CSME, for it to function effectively as an
engine for regional development, it must then facilitate a fertile environment for technological innovation
to occur. “Intuitively” innovation has been recognised as a critical factor of economic performance, as
well as improvements in information technology and the cross-boarder movement of intangibles
(information and ideas) that underwrite competitive advantage54 in the new economy. Innovation,
creativity, information are now recognised beyond the classical view of factors of production; capital,
labour and natural resources, though these are still essential ingredients for expanding economic
potential.55 This environment to drive innovation and the competitive nature of the Caribbean must be
supported by a sound regional institutional framework, as the CSME as a mechanism can provide.
VIII.
TOOL OF COMPETITIVENESS: THE CSME
There is a need in the region for a new conceptualisation of competitiveness. Indeed the old concept of
countries being competitive only in terms of production and exports is constantly being revised in light of
the new economy. Competitiveness has shifted in part from the “sweat and brow” or “brawn” of labour
incentive commodity production to the “brain power” of information intensive production. Competitive
advantage is located in information technology and its use to promote human capital development or
people’s ability to innovate through them.
Competitiveness must therefore be conceptualised in terms of a country’s ability to create an environment
that fosters innovation and creativity. As such, each new innovative output located in the regional option,
should have the ability to reduce the negative externalities of the national option. If the CSME is to be a
mechanism for competitiveness it must therefore create an environment that fosters innovation to give the
region the ability to create new products and services or highly enhance old ones as a matter of course,
through its ability to stimulate human capital development. Continuous and profitable innovation in the
new economy is based on three factors which include; the development of knowledge and information,
the cross-fertilisation of ideas among knowledgeable people and good governance, especially with regard
to legal protection for innovation.56 The CSME can provide for such given its principle elements include
the free movement of labour, capital, business enterprises and services. However, “In no part of the
world, including the developing world does integration in itself bring advantages. Integration helps to
provide a framework within which both the public and private sectors have to be active. It is merely a
facilitating process… the economic agents must exploit all the opportunities created by the integration
instruments.”57
Human Capital Development
Therefore we seek to seek to illustrate the practical utility of the CSME made possible within the legal
framework of the Revised Treaty of Chaguaramas that establishes that the CARICOM Single Market and
Economy58, as a tool for regional development. The first sub-regional Human Development Report for
the Organisation Eastern Caribbean States (OECS)59 has identified the development of human resources a
critical prerequisite for the improvement of the competitiveness of the economies. Articles 3560, 4561, and
4662 of Chapter 363, and 6364, 6465 and 6666 of Chapter 467 of the Revised Treaty have been identified to
address this key development sector specifically. To illustrate the practicality of the CSME as the best
utility for Caribbean competitiveness to date, the relevant articles of the Revised Treaty will be unpacked
so that issues of methodology and modes of application can be discussed. The scope of this paper, places
our discussion within a context to address human capital development with specific reference to education
and the movement of skills and labour (knowledge).
11
As previously discussed, the global political economy, fuelled by information technology emphasises that
development no longer hinges solely on raw material resource base and primary production capacity.
Success in export competition depends largely on a critical mass of talent and skills.68 It is desirable
therefore for regional economies, which lack this essential feature singularly, to have a shared resource of
highly skilled persons in different fields. Optimal sharing of a resource such as this is not unlike financial
capital. For skilled labour to benefit, people must have the ability to move freely, unrestricted throughout
the regional marketplace, concomitant with exchange of information and cross-fertilisation of ideas for
innovative capacity. Article 45 (Movement of Community Nationals) and Article 46 (Movement of
Skilled Community Nationals) is an articulation of this common goal and commitment. Approaching the
realisation of this end, functional-incremental methodologies of Caribbean integration have been utilised,
where specific categories of skilled persons were articulated to provide the first prototype for
implementation of Article 45 in the interim period. These included university graduates, the media,
sportspersons, artistes and musicians. Eventually all categories of labour and skill must be allowed to
move to accrue the potential benefits of information exchange and innovation that are central to the new
economy.
It follows that to benefit from a framework which facilitates the sharing of skills and expertise across the
region, Caribbean states must also engage in a system that seeks to share the means of acquisition of
skills. Therefore, as the Treaty provides, there must be a systematic coordination of the development of
human capital resources. Specifically this is outlined in Article 6369 of the Treaty as follows:
1. Without prejudice to any other provision of this Treaty relating to human resources
development, the COTED shall, in collaboration with the COHSOD, adopt measures to develop
the Community’s human resources which shall, inter alia, support its thrust toward international
competitiveness in the development, production and delivery of goods and services.
2. The measures referred to in paragraph 1 of this Article shall be designed to address the
economic, social and cultural aspects of human resources development, and shall include the
following:
a. Development of programmes that will assist Community nationals in engendering the
attitudes and acquiring the competence to function effectively;
b. Development of the skills and attitudes required to foster a culture of entrepreneurship;
c. Establishing and strengthening educational and training institutions for formal and informal
modes of delivery and alternative modes for distance education;
d. Development of industry-oriented curricula designed to improve the competitiveness of
regional industries; and
e. Promotion of multi-lingual skills at all levels for general education, with particular emphasis
on the needs of the services sector.
This type of development necessitates significant investment for Caribbean states in the form of education
and skills training. Significant commitment to educational reform, addressing issues of capacity
improvement of educational institutions, and adequacy and relevance of curriculum is a necessary
requirement for Caribbean states. The OECS Report70 concurs it can no longer be adequate to assume
access to primary and secondary education as standards of human development of the kind that can
translate into the sustainability of the competitiveness of Caribbean economies in this new global
economy. Human development assessment and prescribed reforms must take into consideration the
changing idiosyncrasies of Caribbean culture and the ways that it affects the educational system. For
example, particular attention must be placed on an examination of gender relations and inequities and the
ways it affects education.71
12
The development of policy designed to facilitate the implementation of Articles 45 and 46 (Movement of
Caribbean Nationals) and 63 (Human Resources Development) will require the harmonisation of
educational systems within the Caribbean. Part of this process will be the necessary creation of broad
standards and mechanisms of accreditation and certification, as well as the provision and implementation
of technical and vocational skills training.
To illustrate the effective utility of the CSME for national development it is useful to examine the way
these two areas have been addressed at the regional level. Article 35 forms the facilitating framework to
derive standards of certification and accreditation necessary for the implementation of the free movement
of skills as expressed in Article 45 of the Treaty.
An appropriate process of arriving at a suitable model for the type of coordination required for
implementation is therefore required. The Regional Accreditation Mechanism72 involves the creation of
an overarching Regional Agency that will have administrative authority over the creation and function of
National Accreditation Bodies, drawing membership from representative educational organisations and
civil society (labour) (Table 5 and 6).
Table 5: Functions of Regional Accreditation Agency
Setting regional standards for implementation at the national level
Effecting reciprocity among national awards
Establishing multinational recognition of professional and skilled personnel
Quality assurance/quality enhancement
Equivalency/Foreign Qualifications Evaluation
Institution accreditation in special circumstances
Approval of regional examinations and awards
Research
Maintaining links with international bodies
Securing and maintaining international recognition of the regional agency and the signing of international
agreements to facilitate mutual recognition arrangements with third countries
Settlement of disputes
Source: Adapted from CARICOM Secretariat (Report of the Seventh Meeting of the Council for Human
and Social Development, 2002) p.51
13
Table 6: Composition of the Governing Body of the Regional Accreditation Agency
National Accreditation Agencies
Association of Caribbean Tertiary Institutions (ACTI)
Universities/University Colleges in CARICOM
Licensing/Professional Bodies
Regional representatives of business, industry and labour
Caribbean Examinations Council (CXC)
CARICOM Secretariat
Source: Adapted from CARICOM Secretariat (Report of the Seventh Meeting of the Council for Human
and Social Development, 2002) p.51
The primary responsibilities of the National Bodies will include the accreditation and re-accreditation of
tertiary education providers, and the supervision of standards of awards in compliance with regional and
international standards. To maintain the functioning of these national bodies, support structures and
procedures were developed,73 which included the coordination of the development of the National
Agencies in accordance with the regional mandate; the assessment of institutional and financial capacity
of Caribbean states necessary for the development of the Agencies; and the development of a draft
legislation model to technically assist states to implement the legislative framework for the development
of the agencies.
In the area of the provision and implementation of technical and vocational skills training in the region,
some significant developments have occurred. One of which is the adoption of definitions of competency
based on occupational standards derived through the collaboration of the relevant industries.74 By so
doing, standards are simplified because they are defined within the context of specific occupations and
work functions. Another development of significance was the creation of a Revised Qualification
Framework.75 This was created in recognition of the need to merge technical and vocational systems with
academic systems to create a framework for certification as a way of reducing wastage, by preventing
duplication in certification, and allowing students to advance across various levels of skill acquisition and
certification. The framework also considers the certification of work experience however attained. This is
significant in so far as it is indicative of attention placed on the consideration of the culture of the
Caribbean education, which has ranging characteristics peculiar to different states.
Despite the advancements made at a regional level to implement the foundations of Articles 35, 45 and
63, there have been serious constraints on the progress of implementation at national levels.
Notwithstanding the framework and supporting structures and mechanisms that have been developed at a
regional level through the use of the Revised Treaty and through other collaborations,76 there are certain
procedures that individual states must enact to shape policies at national level that can facilitate the
mandate articulated in the Articles aforementioned.
Caribbean states must have the technical means by which they can assess the existing standards at the
regional and international level and based on that, an assessment of their own training needs and
14
deficiencies must also be assessed. Capacity building necessary for creating the institutional frameworks
for this exercise must arise through collaborative efforts of the Social Partners and civil society in
Caribbean states. The requirements for capacity building involve access to training resources and more
importantly finance resources. To date, the problems involved in the application of the regional
mechanisms at national levels have been situated within the practical ability of Member States to bring
their institutional systems and frameworks in line with the provisions of the Treaty. Caribbean states are
finding it difficult to negotiate the implementation of the provisions of the CSME simply because the
fiscal and financial status of these countries is dubious at this point (Table 7), given the changing global
economic climate, loss of preferential markets and general average or low economic performance.
It is clear that it is important to recognise the limitations at this point in getting full participation of all
states in the CSME. The issue is not the feasibility of the CSME within and of itself as a mechanism to
promote economic development; rather it is the feasibility of Caribbean economies at this moment.
Therefore the stabilisation of flagging economies is and integral part for the full implementation of the
CSME. The experience of the evolution of the European Union (EU) indicates that it is critical for the
functioning of integrated markets to bring weaker countries to a point of economic development that will
allow them the capacity to be involved fully in the single market and economy. The principle for the
creation of EU Social Cohesion Funds and Regional Development Funds to assist weak economies to
integrate into the Union has influenced the efforts by the Caribbean in the creation Regional Stabilisation
Fund and Programme. This fund not only offers financing to stabilise but also facilitates mandatory fiscal
reform for weaker countries to ensure sustainable recovery and development.
Overall, the development of human capital will form the crux of an integrated Caribbean as espoused in
the single market and economy. It is therefore imperative that the creation of necessary funds to bolster
this area of development be implemented, in light of the fact that human capital, skills, creativity and
innovation shape the nature of the new economy. The CSME has practical utility for Caribbean states,
however it is a tool that must be used effectively to exploit the full benefits of its principle elements – free
movement of labour, capital, and business, which will serve to stimulate innovative capacity of the region
for economic development in the new economy, driven by information and communications technology.
IX.
CONCLUSION
This paper has principally asserted that the CSME to date is the best mechanism, given the failure of the
national option to promote the economic development and growth of the small Caribbean state in the
global economy. Based on its principle elements of the free movement of labour, capital and business, the
CSME represents a mechanism for competitiveness of the Caribbean in the new economy. Overall, it is
concluded that the CSME is advantageous as a tool for Caribbean states to use to promote economic
growth, through its potential to foster human capital development and innovation.
15
Table 7: Selected Economic Indicators for the Caribbean (2000)
Country/
Indicator
Antigua and
Barbuda
Bahamas
Barbados
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
St. Kitts and Nevis
St. Lucia
St. Vincent and the
Grenadines
Suriname
Trinidad and Tobago
GDP % GNI per
Agriculture
(US$ capita, Atlas value added
billion)
method
% of GDP
(current
US$
thousand)
Industry
value
added %
of GDP
HighServices Import of Trade in FDI, net
technology
Value goods and goods
flows
exports (%
added
services (% of
(BoP
of manu- % of GDP % of
GDP) Current
factured
GDP
US$
exports)
million)
Present Total debt Short term
Value of service (%
Debt
Debt
of exports outstand(Current of goods
ing
US$
and
(DOD on
billion) services)
Current
US$
millions)
0.7
8960
4
20
..
76
86
53
..
..
..
..
5
2.6
0.8
0.3
0.4
0.7
4.0
7.7
0.3
0.7
0.3
14960
9250
2890
3190
3830
860
510
2760
7200
4090
2750
..
6
23
17
8
31
28
6
3
8
11
..
21
29
23
24
29
20
31
25
20
23
..
23
..
7
..
..
..
0.1
0.6
8
0
..
73
48
59
68
40
51
63
72
72
66
..
56
68
65
75
111
27
54
76
66
60
55
55
78
74
68
173
30
61
60
61
63
250
19
18
11
37
67
13
456
96
49
28
..
..
0.5
0.1
0.2
0.8
0.7
4.3
0.1
0.2
0.2
..
..
16
7
5
..
8
14
13
10
9
..
..
50
19
25
125
90
750
2
68
31
0.8
7.7
1790
5160
10
2
20
43
..
1
70
55
17
45
116
107
..
650
..
2.6
..
10
..
861
Source: World Development Indicators Database, 2000
16
NOTES AND REFERENCES
1
Fiona Butler (1997) "Regionalism and Integration,” ed. John Baylis and Steve Smith, The Globalization
of World Politics: An Introduction to International Relations (Oxford: Oxford University Press) p.412
Robert Kehoane and Joseph S Nye, Jr., “International Interdependence and Integration,” Handbook of
Political Science, ed. Fred I. Greenstein and Nelson W. Polsby (Reading, MA: Addison-Wesley, 1975)
363-377. [in Paul R. Viotti and Mark V. Kauppi, International Relations Theory: Realism, Pluralism and
Globalism (Massachusetts: Allyn and Bacon, 1993). 384-401]
2
Robert Kehoane and Joseph S Nye, Jr., op. cit.
3
The Caribbean in this paper refers primarily to the English-speaking or Commonwealth Caribbean that
constitute the 15 member Caribbean Community and Common Market (CARICOM) which are as
follows:
Antigua and Barbuda
Bahamas
Barbados
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
Montserrat
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
Suriname
Trinidad and Tobago
4
See the following work for an examination of the nature of integration. William Demas, Critical Issues
in Caribbean Development: West Indian Development and the Deepening and Widening of the Caribbean
Community (Jamaica: Ian Randle Publishers, 1997).
5
A. J. R. Groom and Paul Taylor, “Introduction: Functionalism and International Relations,”
Functionalism: Theory and Practice in International Relations, ed. A. J. R. Groom and Paul Taylor
(London: University of London Press Ltd., 1975) p.1-6
6
Anthony T. Bryan and Roget V. Bryan, The New Face of Regionalism in the Caribbean: The Western
Hemisphere Dynamic (Florida: University of Miami North-South Centre, 1999) p. 5
7
Ibid, p. 5
8
Don D. Marshall, Caribbean Political Economy at the Crossroads: NAFTA and Regional
Developmentalism, (London: Macmillan Press Ltd., 1998) 7.
9
Walter Rodney Walter Rodney, How Europe Underdeveloped Africa (Washington: Howard University
Press, 1981[1972]) highlights that underdevelopment cannot be viewed as the absence of development for
societies have developed in some way or another; however reflecting on the fact that human social
17
development has been uneven. Therefore some countries have developed (economically) more than
others.
For a full discussion of underdevelopment theory see the works noted at endnote, 18, 19, 31 and 32 for
guidance.
10
Integration in the late 1950s – 1960s period was seen as a means towards independence from the United
Kingdom. After the Federation collapsed and political independence was pursued singular by the
countries in the Caribbean, integration became a means to assert the sovereignty and legitimacy as newly
independent states to make their way in the global economy. Such attempts were made through
CARIFTA and then CARICOM in the 1970s – 1980s period. Integration of late (the 1990s – 2000s) has
been marked a means for Caribbean countries to become active players in the global free trade regime
under the aegis of the World Trade Organisation and in the hemisphere, the Free Trade Area of the
Americas.
11
C.LR. James, “Birth of a Nation,” Contemporary Caribbean: A Sociological Reader, ed. Susan Craig
(Trinidad and Tobago: College Press, 1981) 3-35.
C. L. R James, Party Politics in the West Indies, (Trinidad: Vedic Enterprises, 1962) x-xi;
Norman Girvan, “The Development of Dependency Economics in the Caribbean and Latin America:
Review and Comparison,” Social and Economic Studies, (1973) 1-27.
Kathy McAfee, Storm Signals: Structural Adjustment and Development in the Caribbean, (Boston:
Oxfam America, 1991).
Anthony P. Gonzales, “World Restructuring and Caribbean Economic Diplomacy,” Diplomacy for
Survival: CARICOM States in a World of Change, ed. Lloyd Searwar (Jamaica: Friedrich Ebert Stiftung,
1991) 1-18.
Neville Duncan, Mechanisms of Impoverishment in the Anglophone Caribbean: The Role of the Bretton
Woods Institutions and the Recommendations of Caribbean NGOs, (Jamaica: Friedrich Ebert Stiftung,
1995)
Hilbourne Watson, “The Caribbean in the Global Political Economy,” ed. Hilbourne Watson, The
Caribbean in the Global Political Economy, (Colorado: Lynne Rienner Publishers Inc., 1994) p.225-231
Pat Thompson, “Europe 1992: Implications for the Caribbean,” ed. Alan Colbey, Crossroads of Empire:
The Europe-Caribbean Connection, 1492-1992, (Barbados: University of the West Indies, Cave Hill,
1994) p. 111-124
Trevor Harker, “Caribbean Economic Performance in the 1990s: Implications for Future Policy,” ed.
Hilbourne Watson, The Caribbean in the Global Political Economy, (Colorado: Lynne Rienner
Publishers Inc., 1994) p.9
P. K. Menon, Regional Integration: A Case Study of the Caribbean Community (CARICOM)
(Unpublished paper: Convention of the International Studies Association, Chicago, 1994)
18
Peter Wickham,
“Factors in the Integration and Disintegration of the Caribbean,” ed. John G. LaGuerre, Issues in the
Government and Politics of the West Indies, (Trinidad: University of the West Indies, St. Augustine,
1997)
“Towards Recapturing Popular Sovereignty in the Caribbean through Integration,” ed. Mark Lee,
Elements of Regional Integration: The Way Forward, (Jamaica: Ian Randle Publishers, 1998)
Demas, op. cit., p.xiii, 3-4
Marshall op. cit; p. 183
Cynthia Barrow-Giles, Dangerous Waters – Sovereignty and Self-Determinism under attack: Resistance,
Cultural and Regional Assertion as a Means of Capturing Some Semblance of that Elusive Dream, (St.
Lucia: Unpublished paper, 1999)
Anthony T. Bryan and Roget V. Bryan, op. cit., p. 1-3
Ronnie Yearwood and Sherryl Burke-Marshall, The CARICOM Single Market and Economy: A Strategy
for Competitiveness in the New Economy, (Unpublished paper: Central Bank of Barbados Annual Review
Seminar, 2002
Ronnie Yearwood. Situational Analysis of the CARICOM Single Market and Economy, (Barbados:
Caribbean Policy Development Centre, 2002)
12
Peter Wickham, op. cit., 1998, p. 14.
13
Robert Kehoane and Joseph S Nye, Jr., op. cit.
Fiona Bulter, op. cit., 411.
Ernest B. Hass, “The Study of Regional Integration: Reflections on the Joy and Anguish of
Pretheorizing,” International Organisation (24) (1970) p.610.
14
Peter Wickham, op. cit., 1997, p. 39
15
P. K. Menon, op. cit., p.1
16
Ronnie Yearwood, op. cit., p. 8
17
Don D. Marshall, op. cit.
Neville Ducan, “The Rise of Mega Trading Blocks and Implications for the Caribbean,” Global
Developments: Caribbean Impacts and Organised Labour, ed. Neville Duncan (Barbados: Fredrich Ebert
Stiftung, 1995) p. 43.
Duncan notes that, almost ½ of the Caribbean’s export earnings or 1/3 of its GNP is used to repay debt,
which makes capital accumulation “virtually impossible” and reduces productive capacity.
18
James H. Mittleman and Mustapha K. Pasha, Out from Underdevelopment Revisited: Changing Global
Structures and the Remaking of the Third World (London: Macmillan Press Ltd., 1997) p.77. They
underscore that the, “The story of debt is… the problem of underdevelopment itself.”
19
Kathy McAfee, op. cit., p. 6, estimates the external debt of the region rose during the 1980s to US$21
billion, which was a “staggering burden” on the small economies.
Ramesh Ramasran, The Challenge of Structural Adjustment in the Commonwealth Caribbean (New York:
Praeger Publishers, 1992) p.141, estimates that between 1977 and 1988, all Caribbean states had negative
balance of payments.
19
Norma Girvan, op. cit., 1973.
Walter Rodney, op. cit.
George Beckford, Persistent Poverty: Underdevelopment in Plantation Economies of the Third World
(Jamaica: University of the West Indies Press, 1999 [1972])
Lloyd Best and Kari Levitt, “Character of the Caribbean Economy,” Caribbean Freedom: Economy and
Society from Emancipation to the Present, ed. Hiliary Beckles and Verene Shepherd (Jamaica: Ian Randle
Publishers Ltd., 1993)
Dennis Benn, Ideology and Political Development: The Growth and Development of Political Ideas in the
Caribbean, 1774-1983 (Jamaica: ISER Mona, 1987) p.84-106.
Clive Y. Thomas, The Poor and the Powerless: Economic Policy and Change in the Caribbean (New
York: Monthly Review Foundation, 1988)
Rex Nettelford, Inward Stretch, Outward Reach: A Voice from the Caribbean (London: Macmillan Press
Ltd., 1990) p.102
20
Ronnie and Sherryl Burke-Marshall, op. cit., p.5
21
William Demas, op. cit.; Menon, op. cit., p.1; Yearwood, op. cit.,
22
Neville Duncan, op. cit., 1995, p.11; Levitt and Best, op. cit., 1993, p.405
23
Marc Williams, “Rethinking Sovereignty,” Globalisation: Theory and Practice, ed. Eleonore Kofman
and Gillian Youngs, (London: Cassell Imprint, 1996) p.11
24
(http://www.lanic.utexas.edu/~sela/AA2K2/ENG/docs/Coyuntura/coyun2/coyun2.htm )
25
Richard L. Bernal, op. cit., 1998, p. 2
Small States: Meeting Challenges in the Global Economy: Report of the Commonwealth
Secretariat/World Bank Joint Task Force on Small States (2000) p. 3
26
Richard L. Bernal, op. cit., 1998, p.2
27
Richard L. Bernal, op. cit., 1998, p.3
28
Susan Strange, Retreat of the State (London: Macmillan Press Ltd., 1999). p.4
20
Simon Dalby, “Crossing Disciplinary Boundaries: Political Geography and International Relations after
the Cold War,” Globalisation: Theory and Practice, ed. Eleonore Kofman and Gillian Youngs, (London:
Cassell Imprint, 1996) p. 27.
29
The table was formulated drawing insights from the following works:
Richard L. Bernal,
Strategic Global Repositioning of Caribbean Economies (Unpublished Paper, IMF and CDB Conference
- Toward A Caribbean Consensus; A Region Coping with Globalisation, 2000) p.13-16
The Integration of Small Economies in the Free Trade Area of the Americas (Washington: Centre for
Strategic and International Studies, 1998) p. 2-10
Small States: Meeting Challenges in the Global Economy: Report of the Commonwealth
Secretariat/World Bank Joint Task Force on Small States (2000) p.3
Andrew Downes An Analysis of Economic And Social Development in Barbados: A Model for Small
Island Developing States (Economic Commission for Latin America and the Caribbean, 2001)
Jose Antonio Ocampo, Small Economies in the Face of Globalisation (Unpublished paper, The Third
William Demas Memorial Lecture, 2002).
Norman Girvan, Societies at Risk? The Caribbean and Global Change (Jamaica: Unpublished paper,
1997) Available at the Management of Social Transformation (MOST), www.unesco.org/most/girvan.htm
30
Don D. Marshall, op. cit. 64-69, 123 – 153.
31
The dependency/structuralist/globalist school of thought argued that the world was divided into three
main economic sections of the centre/core, periphery (and the semi-periphery. Wallerstein (1979:38)
noted that the, “Core, semi-periphery and periphery all refer to positions within the economic system. The
core areas were the location of a complex variety of economic activities – mass-market industries… ,
international and local commerce in the hands of an indigenous bourgeoisie, relatively advanced and
complex forms of agriculture… The peripheral areas, by contrast, were monocultural, with each cash
crops being produced on large estates by coerced labour. The semi-peripheral areas were in the process of
deindustrialising. …in transition [it] still retained for some the time being some share in international
banking and high cost, quality industrial production.”
The relationship between the core/centre and the periphery was characterised as an unequal one which
underdeveloped the periphery in the world system. The world system was seen to be the primary unit of
analysis that began 500 years (Wallerstein) or 5000 years (Frank) ago and continues in its unequal nature
to under-develop the periphery (Addo) which remains marginally integrated in the global political
economy.
For a fuller discussion see the following works:
Immanuel Wallerstein,
The Modern World-System: Capitalist Agriculture and the Origins of the European World-Economy in
the Sixteenth Century (New York: Academic Press, 1974).
The Capitalist World Economy (New York: Press Syndicate of the University of Cambridge, 1979).
The Politics of World-Economy: The States, the Movements and the Civilisations (London: Press
Syndicate of the University of Cambridge, 1984).
21
"The Modern World-System and Evolution." Journal of World Systems Research, Vol. 1 No. 19 (1995):
15 pp. Online. Internet. March 1999. Available at http://csf.colorado.edu/wsystems/jwsr.html
"The Rise and the Future of Demise of World-Systems Analysis." Fernand Braudel Center (1997).
Online. Internet. March 1999. Available at http://fbc.binghamton.edu/papers.htm
Arrighi, Giovani, "Capitalism and the Modern World-Systems: Rethinking
Non-Debates of the 1970s." Fernand Braudel Center (1997). Online. Internet. March 1999. Available at
http://fbc.binghamton.edu/papers.htm
Herb Addo, Imperialism: The Permanent Stage of Capitalism (Japan: United Nations University, 1986).
Gunder Frank,
Latin America: Underdevelopment or Revolution: Essays on the Development of Underdevelopment and
the Immediate Enemy (New York: Monthly Review Press, 1969)
World System History (University of Amsterdam, 1994) Online. October 1999. Available at the
University of Amsterdam, Netherlands.
32
For a full understanding of the re-colonisation school of thought as part of the world-systems logic, see:
George Belle, Against Colonialism: Political Theory and Re-colonisation in the Caribbean (Unpublished
paper: Conference on Caribbean Culture, University of the West Indies Mona, Jamaica, 1996) where he
examines re-colonisation as part of the globalisation paradigm, being brought to bear upon the Caribbean,
not by a single European country but by an ‘Imperialist metropolitan consortium’; offering a way out by
an epistemological rethink asserting African thought and regional integration.
Kathy McAffe, op. cit., described the role of structural adjustment programmes as implemented by the
IMF as promoting dependency in the Caribbean and further examines full effects on the region offering
an alternative model of development through democratisation.
Neville Duncan, op. cit., 1994, demonstrated the role that large economic and political blocs like NAFTA
and the WTO play in the re-colonisation of the Caribbean, offering an alternative model which is to
‘indigenise’.
33
Trevor Harker, “A Brief Overview of Economic Performance in the Eighties,” Caribbean Economic
Development the First Generation, ed. Lalta, Stanley and Marie Freckleton (Jamaica: IanRandle
Publishers, 1993). p 17-34.
34
Carl Stone, Democracy and Clientelism in Jamaica (New Brunswick: Transaction Inc., 1980) p.74
Clive Y. Thomas. “The Caribbean State as an Agent of Social Change,” A Caribbean Reader on
Development, ed. Judith Wedderburn (Jamaica: FES, 1986) p.179
35
Harker, op. cit., p.26
36
Philippe Egoume-Bossogo and Chandima Mendis, op. cit.
37
Globalisation of the world economy is not new, given that is underscored that capitalism from inception
was a world system. However what is new and different about the current world economy is the growing
nature of interconnectedness and speed that underlines economic and social relations through information
technology and communications. David Held and Andrew McGrew (Entry for the Oxford Companion to
Politics) noted that, “Globalisation can be conceived as a process (or set of processes) which embodies a
22
transformation in the spatial organisation of social relations and transactions. Expressed in
transcontinental or interregional flows and networks of activity, interaction and power… It is
characterised by four changes… [meaning]… Globalisation, in short, can be thought of as a widening,
intensifying, speeding up, and growing impact of world-wide interconnectedness.” (taken from
www.polity.co.uk/global)
For a further discussion on globalisation consult the following works:
Malcolm Waters, Globalization (New York: Routledge, 1995).
Leslie Sklair, “Competing Conceptions of Globalisation,” Journal of World-Systems Research. Vol.2
(1999): 143-162. Available on the Internet at http://csf.colorado.edu/jwsr
Eleonore Kofman and Gillian Youngs (ed.) Globalization: Theory and Practice (London: A Cassell
Imprint, 1996).
Christopher Chase-Dunn, “Globalization: A World Systems Perspective.” Journal of World Systems
Research, Vol. 5 No. 2 (1999): 22 pp. Online. Internet. March 1999. Available at
http://csf.colorado.edu/wsystems/jwsr.html
Ankie Hoogvelt, Globalisation and the Postcolonial World: The New Political Economy of Development
(London: Macmillan Press Ltd., 1997).
Jill Krause and Neil Renwick (ed.), Identities in International Relations (London: Macmillan Press Ltd.,
1996).
www.polity.co.uk/global
www.emory.edu/SOC/globalization
38
Bradford De Long, How New Is Today’s Economy? (Online: 1998) p.2
Available at http://econ161.berkeley.edu/
39
Michael Borrus and John Zysman, “Globalisation with Borders: The Rise of Wintelism as the Future of
Global Competition,” Industry and Innovation 4.2 (1997) p. 1
40
Manuel Castells, The Rise of the Network Society (Oxford: Blackwell Publishers, 2000) p.70.
41
Michael Borrus and John Zysman, op. cit., p.1-11.
42
Hobsbawn (1979:313) taken from Peter Dickens, "A New Geo-Economy,” The Global Transformation
Reader: An Introduction to the Globalization Debate, ed. David Held and Andrew McGrew (Cambridge:
Polity Press, 2000).
43
Manuel Castells, op. cit., p.70
44
Anthony Gonslaves, op. cit., p. 6-9; Richard L. Bernal, op. cit., 2000, p.17
45
Michael Borrus and John Zysman, op. cit., p.13
23
46
Michael Best. The New Competition: Institutions of Industrial Restructuring (Massachusetts: Harvard
University Press, 1990) p.259
Anthony Gonslaves, op. cit.
47
Richard L. Bernal, op. cit., 2000, p18
48
Economist Survey, “Untangling e-conomics,” (Economist Magazine Print Edition, September 21, 2000)
Available online at www.economist.com
49
Philip McMichael. "World-Systems Analysis, Globalization, and Incorporated Comparison." Journal of
World-Systems Research, Vol. 1 No. 3 (2000):688-690 pp. Online. Internet. May 2000. Available at
http://csf.colorado.edu/wsystems/jwsr.html
50
Alvin Toffler, Powershift: Knowledge, Wealth and Violence at the edge of the 21st
Century (New York: Bantam Books, 1991).
51
Paul Romer “Beyond Classical and Keynesian Macroeconomic Policy,” Policy Options July –August
(Online, 1994). p. 3
Available at www.Stanford.edu/~promer/policyop.htm
52
Ibid.
53
Joseph Schumpeter. Capitalism, Socialism and Democracy (London: Ruskin House, 1961[1943]).
54
Clarke Eustace, The Intangible Economy: Impact and Policy Issues (European Commission, Enterprise
Directorate-General, 2000) p. 11-12
55
Avinash Persaud, “A Penny For Your Thoughts?” Foreign Affairs (Council on Foreign Relations,
March/April 2001) p. 107-117. Available at FirstSearch.org
56
Ibid.
57
William Demas, op cit., p. 30.
58
The 1973 Treaty of Chaguaramas was revised by a series of nine protocols to bring into force the 1989
Grand Anse Declaration to establish a single market and economy. The Revised Treaty of Chaguaramas
to establish the CARICOM Single Market and Economy came into force when the protocols were signed
in 1997.
59
Summary of OECS report, “Building Competitiveness in the Face of Vulnerability” in the Revised
Working Document for the Seventh Meeting of the Council for Human and Social Development ( Guyana:
Caribbean Community Secretariat, October 2002)
60
Acceptance of Diplomas, Certificates, and other Evidence of Qualifications
61
Movement of Community Nationals
62
Movement of Skilled Community Nationals
24
63
Chapter Three of the Revised Treaty of Treaty – Establishment, Services, Capital and Movement of
Community Nationals
64
Human Resources Development
65
Research and Development
66
Protection of Intellectual Property Rights
67
Chapter 4 of the Revised Treaty – Policies for Sectoral Development, Part Three, Common Supportive
Measures
68
Don Marshall, op. cit., p.2.
69
Revised Treaty of Chaguaramas, Article 63, p.43
70
Summary of Chapter 4 of the OECS report, “Building Competitiveness in the Face of Vulnerability” in
the Revised Working Document for the Seventh Meeting of the Council for Human and Social
Development ( Guyana: Caribbean Community Secretariat, October 2002)
71
Barbara Baileys, “Feminisms and Educational Research and Understanding the State of the Art in the
Caribbean,” Caribbean Portraits Essays on Gender Ideologies and Identities, ed. Christine Barrow
(Jamaica: Ian Randle Publishers, 1998).
72
This principle was approved at the Special Meeting of the CSME held in Barbados in 1997.
(CARICOM Secretariat, Report of the Seventh Meeting of the Council for Human and Social
Development, 2002)
73
The procedure was developed by the CARICOM Secretariat, the University of the West Indies (UWI)
and the Association of Caribbean Tertiary Institutions (ACTI) through the use of meetings and
consultations, over the period 199-2000. [CARICOM Secretariat (Report of the Seventh Meeting of the
Council for Human and Social Development, 2002) p. 47]
74
CARICOM Secretariat (Report of the Seventh Meeting of the Council for Human and Social
Development, 2002) p. 70
75
This was endorsed by the Fifth Meeting of the Council on Human and Social Development (COHSOD)
in October 2001. [CARICOM Secretariat (Report of the Seventh Meeting of the Council for Human and
Social Development, 2002)]
76
Op. cit., at endnote 72.
25