As someone associated with the development of the Single Market and Economy, I most excitedly welcome the publication of the Caribbean Trade and Investment Report 2000. Empirical research has to be the foundation of meaningful policy-making, especially in our rapidly changing regional, hemispheric and global environment, and it is in that regard that this publication will contribute immensely to informing our deliberations on the deepening of the integration process.
The Report deals with two of the pillars of our regional integration process i.e, trade and investment, and the dynamic interface with the world economy. In that regard, it is gratifying to note that a considerable amount of data has been generated not only on trade relations within the Region, but also on trade with the hemisphere of the Americas and the European Union. It also provides vital information on investment flows involving these same partners.
In the past, we have tended to focus almost exclusively on trade when dealing with the regional integration paradigm, but the Report shows that intra-CARICOM investment is a very rapidly developing phenomenon and deserves closer attention. For example, for the OECS countries in recent years, over 25 per cent of foreign investment flows is from intra-regional sources. These intra-regional flows would be expected to become even greater when Protocol II is fully implemented and existing restrictions relating to Establishment, Provision of Services and Movement of Capital are eliminated.
The richness of the policy analysis in the Report has many dimensions, but one deserves special mention. I refer to the detailed statistical information showing how little advantage has been taken of the preferential access to the markets of the USA, Canada, Venezuela, Colombia and the European Union. While the coming into being of a Single Market and Economy would help to provide for firms, the critical mass and efficiency platform for penetrating extra-regional markets, this is not likely to be enough for effective viability in the new global environment. Improved firm performance is key. Accordingly, I would like to support the idea for a 3-day Conference next year on “Business Competitiveness and Capacity Enhancement in the 21st Century.”
The mode of supply that was used to produce the Report reflects what Caribbean business organisation could look like in the new Single Market and Economy. The Report was prepared by Caribbean scholars in the Secretariat in Georgetown, printed by Coles in Bridgetown; and co-published with Ian Randle in Kingston. This is a good example of “Integrated Caribbean Production” as distinct from the typical stand-alone form of business organisation in the Region.
This is the first Report of its kind and we need to ensure that it is not the last. I note that in the Preface, the Secretary-General states that efforts will be made to publish the Report either annually or biennially, “providing resources are available.”
Let me pointedly say that the Economic Intelligence and Policy Unit in the CARICOM Secretariat should be so strengthened, and provided with the required human and financial resources, to make the Report a regular publication. The Report is very useful to policy makers and business planners. It also provides the University system with a wealth of data and information on which its course on economic integration, for the training of the future leaders of Caribbean politics and business can be built.
It is very troubling to note from the Report that there are certain CARICOM countries which continuously fail to provide trade data to the CARICOM Secretariat’s statistical department. These are some of the same countries which have not yet been able to provide the list of restrictions that ought to be removed under Protocol II. Appropriate decision-making for deepening the Caribbean integration process cannot take place in a situation of statistical and analytical darkness!
Finally, I would like to congratulate the researchers and everyone involved for making this publication such a great success.
