CARICOM: Caribbean Community

• CARICOM (Caribbean Community)

Overview

• CARICOM was established in 1973 with the Treaty of Chaguaramas.
• It replaced the Caribbean Free Trade Association (CARIFTA).
• It aims to promote economic integration and cooperation among its member states.
• It also coordinates foreign policy.
• The main pillars are economic integration, foreign policy coordination, human and social development, and security.
• The CARICOM Secretariat is headquartered in Georgetown, Guyana.

Membership

• Founding members include Barbados, Guyana, Jamaica, and Trinidad and Tobago.
• Other member states include Antigua and Barbuda, Bahamas, Belize, Dominica, Grenada, Haiti, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, and Suriname.
• Associate members include Anguilla, Bermuda, British Virgin Islands, Cayman Islands, and Turks and Caicos Islands.

Objectives

• To improve standards of living and work.

• To fully employ labor and other factors of production.

• To accelerate, coordinate, and sustain economic development and integration.

• To expand trade and economic relations with third states.

• To enhance levels of international competitiveness.

• To organize for increased production and productivity.

• To achieve a greater measure of economic leverage and effectiveness of member states in dealing with third states, groups of states, and entities of any description.

• CSME (CARICOM Single Market and Economy)

Overview

• The CSME is an extension of CARICOM aimed at creating a single economic space.
• It allows for the free movement of goods, services, capital, and skilled labor within the region.
• It seeks to harmonize economic policies and legislation among member states.
• The Revised Treaty of Chaguaramas (2001) provides the legal framework for the CSME.

Key Components

• Free movement of goods: Elimination of trade barriers.
• Free movement of services: Allowing service providers to operate across the region.
• Free movement of capital: Facilitating investment and financial flows.
• Free movement of skilled labor: Recognizing qualifications and allowing professionals to work in member states.
• Right of establishment: Allowing businesses to set up operations in any member state.
• Common external tariff: Applying a uniform tariff on goods imported from outside the CSME.

Objectives

• To enhance economic growth and development.

• To increase competitiveness.

• To promote higher levels of employment.

• To improve the standard of living for the people of the region

• Globalization and Its Effects

Overview

• Globalization refers to the increasing interconnectedness and interdependence of countries through flows of goods, services, capital, information, and people.
• It is driven by technological advancements, reduced trade barriers, and international agreements.

Economic Effects

• Increased trade and investment flows.
• Greater competition.
• Access to larger markets.
• Potential for economic growth and development.
• Risk of economic instability due to interconnectedness.
• Increased income inequality.

Social Effects

• Cultural exchange and homogenization.
• Increased awareness of global issues.
• Migration and diaspora formation.
• Challenges to local cultures and traditions.

Political Effects

• Rise of international organizations and agreements.
• Increased cooperation and diplomacy.
• Loss of national sovereignty.
• Challenges to national identity.

Effects on CARICOM

• Access to larger global markets.

• Increased competition for local industries.

• Need to adapt to international standards and regulations.

• Opportunities for attracting foreign investment.

• Vulnerability to global economic shocks.

• Brain drain due to migration of skilled workers.

• Terms Associated with Regional Integration

Free Trade Area (FTA)

• Member countries eliminate trade barriers among themselves but maintain individual trade policies with non-member countries.

Customs Union

• Member countries eliminate trade barriers among themselves and adopt a common external tariff on imports from non-member countries.

Common Market

• A customs union with the additional feature of free movement of factors of production (labor, capital) among member countries.

Economic Union

• A common market with further harmonization of economic policies and institutions among member countries.

Monetary Union

• An economic union with a common currency and a single monetary policy.

Political Union

• The highest form of integration, involving the unification of political institutions and policies.

• Factors that Promote Integration

Economic Factors

• Potential for increased trade and investment.
• Economies of scale.
• Access to larger markets.
• Opportunities for specialization and efficiency gains.
• Need to address common economic challenges.

Political Factors

• Desire for increased political influence and bargaining power.
• Shared political values and institutions.
• Need to address common security concerns.
• Desire for regional stability and cooperation.

Social Factors

• Cultural similarities and shared history.
• People-to-people connections and exchanges.
• Desire for regional identity and solidarity.
• Need to address common social challenges.

Institutional Factors

• Strong regional institutions and legal frameworks.

• Effective mechanisms for policy coordination and implementation.

• Commitment to regional cooperation and integration.

• Leadership and political will.

• Dates When Each Federation Signed and Where (Likely refers to West Indies Federation)

Overview

• The West Indies Federation was a short-lived political union that existed from 1958 to 1962.
• It aimed to create a unified, independent nation from the British West Indies colonies.

Founding Members

• The Federation was formally established on January 3, 1958.

Signatories

• It's important to note the Federation was formed by the British government through the West Indies Federation Act passed by the UK Parliament, rather than a treaty signed between the colonies themselves. The actual process involved each territory agreeing to join and then being formally included in the Federation by the UK.
• The territories that became part of the Federation included:
  • Antigua and Barbuda
  • Barbados
  • Dominica
  • Grenada
  • Jamaica
  • Montserrat
  • Saint Kitts-Nevis-Anguilla
  • Saint Lucia
  • Saint Vincent and the Grenadines
  • Trinidad and Tobago
• Jamaica and Trinidad and Tobago were the largest and most influential members.
• The capital was initially in Port of Spain, Trinidad and Tobago, but was intended to move to Grand Anse, Grenada.

Dissolution

• The Federation collapsed in 1962 after Jamaica withdrew following a referendum.
• Trinidad and Tobago also withdrew shortly after, leading to the dissolution of the Federation.