CONTACT Magazine (Vol.19 No. 2 – June 2019)

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COURTESY CARIBBEAN COMMUNITY
CSME: Are we getting it right? Small economies, big plans Established 30 years ago with lofty ideals, the intention of the Caricom Single Market and Economy (CSME) was to provide more and better opportunities for employment, trade and investment. What have we achieved over the past three decades? How can we get CSME right, in order to advance the region’s growth and development? by Colin Soo Ping Chow Executive Chairman, EY Caribbean When the Caricom Single Market and Economy (CSME) was established in 1989, the vision was clear: we would create a single, regional economic zone, not unlike the European Union (EU), which would be an attractive destination for business and foreign investment. This would be facilitated by the free movement of labour, and supported by laws and regulations designed to grow intra- Caribbean and extra-regional trade. Thirty years have since passed, and we are nominally closer to this goal. several problems including potential defaults on foreign loans as foreign exchange reserves declined precipitously. To address these challenges, Barbados increased its debt, maintained its fixed exchange rate, and continued its expansionist policies. Guyana, on the other hand, in trying to deal with its own difficulties, adopted a strategy which involved the nationalisation of major enterprises across a wide spectrum. This strategy eventually failed, and the country’s economy fell into recession. The background In the 1990s, immediately after the formation of the CSME, four of the larger Caricom member states – Trinidad and Tobago, Barbados, Jamaica and Guyana – simultaneously encountered serious economic difficulties. Dr Alvin Hilaire, then a senior economist with the International Monetary Fund, wrote an article reviewing the countries’ strategies for economic stabilisation. Trinidad and Tobago and Jamaica both sought to address their difficulties with a range of remedial actions including debt reprofiling, major currency devaluations, public expenditure cuts, rationalisation of state assets, and intervention in the financial services sector. These measures came at a huge cost to their respective economies. Barbados’s major sectors – tourism, sugar and manufacturing – were all declining, and the country faced On reflection, one can argue that the ambitions set out in the 1989 Grand Anse Declaration (for the advancement of the integration movement) were always going to be difficult, though not impossible, to achieve Impact of economic challenges On reflection, one can argue that the ambitions set out in the 1989 Grand Anse Declaration (for the advancement of the integration movement) were always going to be difficult, though not impossible, to achieve. Today, by and large, the CSME objectives have not been met. While some commentators can justifiably criticise Caribbean governments for their lack of execution, one view is that it would have been incredibly difficult to achieve common market status while the larger economies in the trade zone were seriously afflicted by economic challenges. Out of necessity, these governments became internally focused on their individual economic priorities. It is arguable, then, that the interests of the wider group of member states would not have been aligned regionally – a pre-requisite for achievement of the CSME goals. chamber.org.tt JUNE 2019 9
Page 1 and 2: Vol.19 No.2 - June 2019 The Voice o
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Page 12 and 13: CSME: Are we getting it right? Toda
Page 16 and 17: CSME: Are we getting it right? Can
Page 18 and 19: CSME: Are we getting it right? ST A
Page 20 and 21: Services The human benefit of machi
Page 22 and 23: CSME: Are we getting it right? Kari
Page 24 and 25: Voice of business the voice of busi
Page 26 and 27: Are you ready for a natural disaste
Page 29 and 30: Disaster preparedness accounted for
Page 31 and 32: Disaster preparedness is a standard
Page 33 and 34: Business profile get to know older
Page 35 and 36: Business profile COURTESY MUSIC LIT
Page 37 and 38: Growth and learning corner The Cham
Page 39 and 40: Innovation in business COURTESY CAR
Page 41: chamber.org.tt JUNE 2019 39
Page 48 and 49: Energy update Energy update Local c
Page 50 and 51: The Chamber and its Members Welcome
Page 52: FROM THE HOUSE OF ANGOSTURA top ten

CONTACT Magazine (Vol.19 No. 2 – June 2019)

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