REGIONAL INTEGRATION - THE UNIFICATION OF COUNTRIES THROUGH ECONOMIC AGREEMENTS. A BLOC OR GEOGRAPHIC REGION/AREA THAT HAVE THINGS IN COMMON.

INTEGRATION – COMING TOGETHER FOR A COMMON PURPOSE.

CARICOM – CARIBBEAN COMMUNITY AND COMMON MARKET.

BI-LATERAL AGREEMENT – TRADE AGREEMENT BETWEEN TWO COMPANIES OR COUNTRIES.

MULTI-LATERAL – TRADE AGREEMENT AMONG SEVERAL COMPANIES OR COUNTRIES.

MDC’S – MORE DEVELOPED COUNTRIES (GUYANA, BARBADOS, JAMAICA, TRINIDAD AND TOBAGO AND THE BAHAMAS) (* usually it is not for Caribbean islands but places like UK and USA)

LCD - less developed countries (Leeward and Windward islands)

Why is regional integration necessary?

1. Regional integration is necessary so that Caribbean counties can combat restrictions that prevent the free flow of goods, services and capital.

2. Regional integration is necessary so that Caribbean producers are able to sell in the international markets at competitive prices.

3. Regional integration allows Caribbean countries to combat poverty, unemployment and decreased revenue by uniting so that they can develop their human resources.

GLOBALIZATION

As a result of improvements in transportation, and communication & removal of barriers, the process of Globalization was developed through interconnecting separate economies.

Globalization promotes integration in the Caribbean by creating and increasing the opportunities in various categories among different businesses. It is the unification of the different countries.

Trade liberalization

This refers to the removal of or the reduction of trade practices that restricts the free flow of goods from one country to another.

Negative effects of Globalization & free trade

• Destruction of businesses

• Destruction of the local culture •

• reduction in the population as a result of migration

• Islands indebt to bigger rich countries
  

POSITIVE IMPACTS OF GLOBALIZATION:

1. Economic growth - globalization exposes countries to new customer bases / global economy/market

2. Job creation - globalization has lead to expansion of industries and businesses

3. Acess to information and education - globalization enhances the flow of information and increases access to educational resources

FACTORS HINDERING GLOBALIZATION

Quality and standards compliance

Poor infrastructure

Limited access to finance

Trade Barriers & tariffs

Geographic location

Dependence on few export commodities

Vulnerability to natural disasters

1. Quality and standards compliance - a high standard of quality must be met for Caribbean countries to gain access to the global market.

2. Poor infrastructure - factors that affect the movement of goods result in increased costs and a decrease Caribbean products competing in international markets.

3. Limited access to finance - limited funds hinder the expansion of production value, which makes it difficult to compete in international markets.

4. Trade Barriers & tariffs - these restrictions make it difficult for Caribbean products to enter international markets.

5. geographic location - being far distances from major global markets causes higher costs in production and longer shipping time.

6. Dependence on few export commodities - limited products and resources leaves Caribbean countries vulnerable to fluctuation.

7. Vulnerability to Natural Disasters - natural disasters hinder development

MAJOR CHALLENGES FACING THE CARIBBEAN REGION

1) Small population

2) Unequal resource and distribution

3) Under-developed human resources

4) Difficulty in accessing developed country markets

5) Shortage of skilled nation

6) Lack of diversification

7) Shortage of capital

8) Vulnerability to natural disasters

9) Low levels of production

10) Low productivity

11) High level of debt burden

12) Low value exports, high cost impacts

13) Unemployment and underemployment

THE MAJOR STAGES IN THE INTEGRATION MOVEMENT

Previous attempts at integration:

CARIFTA 1968 - 1973 (didn’t fail but got upgraded to CARICOM)

OECS 1981 (CARICOM 1973)

West Indies Federation 1958 (failed)

Organization of Eastern Caribbean States (OECS) 1981

CARICOM Single Market and Economy

COUNTRIES IN THE FEDERATION (10)

AIM OF FEDERATION

1) To strengthen the movements

2) To promote economic development

3) To safe the democratic system of government

ACHIEVEMENTS OF FEDERATION

1) Federation facilitated the movement from colonialism to independence through a united voice

2) The coming together of small strengthened their effectiveness in dealing with international bodies such as the United Nations.

WHY DID FEDERATION COLLAPSE (1962)

1) The masses were not educated on the importance of federation