Op-Ed
Commentary
Sir
Ronald Sanders:
The paralysis of fear: CARICOM’s greatest enemy
On
January 1st last year the CARICOM countries were scheduled to
launch the Caribbean Single Market (CSM) with the development
into a Single Economy by 2008.
It
didn’t happen.
But the citizens and residents of CARICOM countries –
as well as the rest of the world – were assured that the
CSM would be inaugurated on January 1st 2006.
Numerous
public statements from the CARICOM Secretariat declare that
the Single Market started on January 1st this year. In contradiction
to those statements, there is to be a ceremony to launch the
Single Market in Jamaica on January 30th, and then only by six
of the member states: Barbados, Belize, Guyana, Jamaica, Trinidad
and Tobago and Suriname.
In
truth, the world knows that over the last two years great fears
have surfaced about the CSME, particularly among the member
countries of CARICOM who are also members of the Organisation
of Eastern Caribbean States (OECS). These countries are: Antigua
and Barbuda, St Kitts-Nevis, Dominica, Grenada, St Lucia and
St Vincent & The Grenadines.
These
fears have paralyzed the necessary action to launch the Single
Market by all the countries of CARICOM collectively and joyously.
The
OECS members have now made it known that they will not sign
up to the Single Market at the Jamaica ceremony on January 30th.
We
can list some of the fears.
They
include: fear among some of the people that their country will
be swamped by persons from other Caribbean countries bringing
crime, drug addiction and even ‘another culture’;
fear by some of the people that their jobs will be taken by
persons from other Caribbean countries; fear by some business
people that their enterprises will be put out of business by
other Caribbean companies or by imports into their local markets
from other Caribbean countries; fear by some governments that
unemployment will rise from the collapse of local businesses;
fear by some governments that their indigenous people will turn
against them politically for allowing entry to ‘foreigners’
from other Caribbean countries; and, fear by some governments
that their countries will be relegated to markets for exports
from other Caribbean countries while their own exports will
decline, thus retarding their development.
During
the course of 2005, in light of the failure to launch the CSME
on January 1st 2005 and with some of the public fears being
revealed by the press, the Secretariat did mount region-wide
public education programmes. But, by then many of the fears
had become deeply ingrained.
And,
what is very significant is that few of the CARICOM leaders
actually went out to public meetings, to town hall occasions
or even on radio and television to allay fears and convince
people of the importance of the CSME. Barbados’ Owen Arthur
was a notable exception.
Over
the last few months Barbados Prime Minister Owen Arthur and
a special Technical Team visited several countries to discuss
their concerns, and to indicate that special and differential
treatment - including compensatory measures and preferred access
to a Regional Development Fund - would be given to Guyana, as
a highly indebted poor country, and to the OECS countries.
But,
a month ago – on December 23rd - the OECS countries indicated
to the CARICOM Secretariat that they had decided “individually,
and as a group”, that they are “unable to be party
to the CSME at this time”
Then
this month, the same group of countries promised to sign on
to the Single Market by March 31st, 2006, provided certain measures
are in put in place by then. Among the measures are: a meaningful
Development Fund, special industry protection for the OECS,
and delayed removal of Alien landholding restrictions.
Similar
circumstances occurred when the Caribbean Free Trade Association
(CARIFTA) was being inaugurated in 1968.
The
governments of Antigua, Barbados and Guyana had signed the Caribbean
Free Trade Agreement at Dickenson Bay in Antigua in 1965 with
the intention of reviving the regional integration movement
which appeared to have died with the collapse of the West Indies
Federation in 1962.
After
painstaking work by regional technocrats and much bickering
among regional governments, the terms of a Treaty to be signed
on 1st May 1968 were agreed. But, on that date only Trinidad
and Tobago joined the original three countries.
Except
for Antigua, which was a founding member of CARIFTA, the Leeward
and Windward Islands (now the OECS), at the last moment laid
a declaration of intent to join on 1 July 1968. A major hold
up then was their insistence on the establishment of the Caribbean
Development Bank from which they expected development funds
would flow mainly to them.
Earlier,
they had insisted upon – and been granted – various
compensatory mechanisms which were embodied in the CARIFTA Treaty.
Further,
as a response to CARIFTA, they formed the Eastern Caribbean
Common Market (ECCM). Not dissimilarly the same countries are
now talking about forming an Economic Union.
The
development of an OECS Economic Union would be a good thing,
particularly if it means that the Union would be a single member
of the CSME setting trade policy and speaking and acting on
behalf of OECS countries as a whole. It would make the OECS
group a stronger entity and better able to bargain within the
CSME since it would command greater resources and would itself
become a bigger market.
While
history repeats itself, the fears about the Caribbean Single
Market live on. They need to be quelled.
A
clear picture needs to emerge about the establishment and funding
of the Regional Development Fund. OECS countries should understand
that while they may be given preferential access to its resources,
they also need to contribute to it.
It
is also time that it is said that some inefficient and uncompetitive
companies will collapse throughout the region, but stronger
Caribbean companies will replace them providing job security
and contributing to economic growth; some skilled workers will
be displaced in their native locations, but they will have the
option of transferring to other places in their Caribbean homeland;
criminals from one area of the Caribbean will not be able to
travel to other parts of the region to commit crimes for immigration
controls will still be in place, and information about criminals
will be better organised; there will be competition in the production
and sale of goods and services, but competition will also reduce
prices.
There
is still much to do. CARICOM has to develop reliable and sustainable
air and sea transportation links if the region’s production
is to be truly integrated, and if the region is to become a
market for its own production.
It
will not be plain sailing everyday; but everyday as a single
market, the Caribbean will be better placed to endure in a highly
competitive world. It is boldness not fear that will take the
people of CARICOM forward.
