Caricom Has Failed in Its Bid to Make Caribbean Economies Competitive Through the Csme

CARICOM has failed in its bid to make Caribbean economies competitive through the CSME. Critically assess this statement, using examples to support your answer.

The acronym "CARICOM" stands for the "Caribbean Community and Common Market" or the "Caribbean Community". It was established in 1973 by the Treaty of Chaguaramas, at that time it was signed by four (4) countries. Since then twelve (12) other countries have signed on; the entire member body is made up of sixteen (16) countries, Trinidad and Tobago, Jamaica, Barbados, Guyana (the initial four (4)); Antigua and Barbuda, Belize, Grenada, Montserrat, St. Vincent and the Grenadines, Turks and Caicos Islands, The Bahamas, British Virgin Islands, St. Kitts and Nevis, Suriname, Dominica and Saint Lucia. The formation came about when the initial four (4) countries governments saw the need for an integration of its members and economies, and the creation of a common market. Its mission is to provide dynamic leadership and service, in partnership with community institutions and groups, toward the attainment of a viable, internationally competitive and sustainable Community, with improved quality of life for all. This statement epitomizes the idea of full integration of all its member states; and its eleven (11) observers. The objectives of CARICOM are "to achieve improved standards of living and work; full employment of labor and other factors of production; accelerated, coordinated and sustained economic development and convergence; expansion of trade and economic relations with third States; enhanced levels of international competitiveness; organization for increased production and productivity; greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description; enhanced coordination of Member States' foreign and [foreign] economic policies; and enhanced functional cooperation (CARICOM Secretariat 2011)." In order to facilitate the full achievement of the agreed set of objectives the CARICOM member states the heads of government further proposed to institute another body whose sole purpose will be to meet the objectives established by them, the CSME or "CARICOM Single Market and Economy" was born.

The CARICOM Single Market and Economy (CSME) is the vision of fifteen (15) CARICOM States to build shared prosperity within the Member States, by removing trade barriers and allowing the free movement of goods, services, capital and people. The CSME comprises of the Single Market and the Single Economy. It is intended to benefit the people of the Region by providing more and better opportunities to produce and sell goods and services and to attract investment. It will create one large market among the participating member states. According to the CARICOM Secretariat (2011), the main objectives of the CSME are "full use of labour (full employment) and full exploitation of the other factors of production (natural resources and capital); competitive production leading to greater variety and quantity of products and services to trade with other countries." It is expected that these objectives will in turn provide improved standards of living and work and sustained economic development.

The CSME has three (3) target areas of development (CARICOM Secretariat, 2011);

"The targeted areas of development are economic, social, environmental and governmental. The economic sector of the CSME offers an accelerated economic growth through adjustment and transformation of regional economies and an improved global competitiveness through sustained innovation and productivity. The main drivers of economic growth and transformation are expected to come from the goods and services industries in the area of the energy sectors, agriculture, forestry and fishing, manufacturing, tourism and some exports services. This would be achieved by a harmonizing of the foreign trade policies, human resource utilization, monetary incentives, transport, investment, financial services, capital market integration, quality infrastructure and functional corporate cooperation."

It is through the former sector that I will establish whether or not CARICOM has failed in its bid to make Caribbean economies competitive through the CSME.

Like any new idea or product that comes on stream, the CSME has had its share of critics. It is through the thoughts of these critics and speculators that I will discuss the statement. A closer look at what CARICOM should be doing through the CSME has revealed that to some extent it has failed in its bid to make the Caribbean economies competitive through the latter. Many argue that CARICOM has failed because of its inability the complete the CSME. Other criticisms come in light of the fact that CARICOM has not ensured the capacity and economic strength necessary to create a sound regional economic base for investment and