...countries ("trade bloc," 2014). The concept of regional economic integration takes the trade bloc concept and centers it into different regions on the globe. Regional economic integration is an agreement to reduce regional trade barriers, remove tariffs and non-tariff barriers that will hinder the flow of free trade of goods, services, and factors of production among countries in a geographic region (Hill, 2009). There are many regional trade blocs in place today that have achieved harmonious and non-harmonious integration. Following is a closer look at some of the advantages and disadvantage one trade bloc that is situated in the Caribbean region named, Caribbean Community (CARICOM) and its expansion into CARICOM Single Market and Economy (CSME). Caribbean Community (CARICOM) The Caribbean Community (CARICOM) was established in July 1973 as an expansion of the former Caribbean Free Trade Association (CARIFTA) that had been in place for seven years prior ("Caribbean community (caricom)," 2014). The CARICOM trading bloc profile states that it goes beyond the normal boundaries of free-trade to encompass programs that will sustain economic development within the region ("Caribbean community (caricom)," 2014). States located outside the CARICOM region also see benefits from the trading bloc in the way of a unified trade, economic, and foreign policies ("Caribbean community (caricom)," 2014). There are 15 members' states in the CARICOM trading bloc: Antigua and Barbuda, Barbados...
Words: 952 - Pages: 4
...ARTHUR LOK JACK GRADUATE SCHOOL OF BUSINESS THE UNIVERSITY OF THE WEST INDIES EXECUTIVE MASTERS IN BUSINESS ADMINISTRATION GLOBAL MACROECONOMICS AND THE CARIBBEAN BUSINESS ENVIRONMENT (BUAD 6085) INDIVIDUAL COURSEWORK ASSIGNMENT CAN SMALL DEVELOPING COUNTRIES SURVIVE IN A GLOBALISED ENVIRONMENT? Submitted by: VITRA SINGH (UWI ID #: 91780646) Cohort 22 25 OCTOBER 2010 It has been said that arguing against globalization is like arguing against the laws of gravity. - Kofi Annan INTRODUCTION I sit at a food court near a Manchu Wok take out in O’Hare International Airport in Chicago, waiting on a flight to Miami and a connection back home, to Trinidad. My Dell laptop is on the table in front of me and my Nokia phone is next to it. My roll-on hand luggage is at my feet, a SwissGear brand, bought in London with a tag on the side which reads ‘Made in China’. Across the table from me, sits a group of young American men on their way to Beijing. Announcements in the background call the departure of an Air France flight. A family walks by; a man, a woman and a girl of about six. The man calls out to the little girl and his accent confirms for me, his East Indian heritage. The girl’s attention is absorbed in a bright pink Nintendo DSi. Later at the gate, a seventy five year old woman from Nebraska, sits next to me and tells me that she is on her way for an ‘overseas adventure’ in South America. She has always wanted to do this, she says, handing...
Words: 3615 - Pages: 15
...INTEGRATION EFFORTS IN THE CARIBBEAN ESSAY Sir Arthur Lewis in 1965 wrote ‘these islands did not start on the federal road in a fit of idleness. They start because it was clear that a federation is the only possible solution to their problem.” To understand what Sir Arthur Lewis meant regional integration must be defined. According to Carbough (2004), regional integration is a process of eliminating restrictions on international trade, payments and factors of mobility. Full regional integration is the economic, social, legal, political, business and environmental factors into one common regional space. There are six levels of integration which are the trade association, free trade area, customs union, common market, economic and political union. Over the past decade regional integration movements have been undergoing tremendous pressure as they attempt to sustain viability. Hippolyte- Manigot (1979) stated “Since the mid 1970s, so serious have some of these difficulties been that practitioners and analyst of regional integration have indicated their doubts about the viability of regional integration.” The first effort for integration took place in 1958. This was known as the West Indies Federation. The federation faced several problems but what really led to the demise of the federation was fell apart in January 1962 was the withdrawal of Jamaica. This withdrawal was to lead to a movement within Jamaican for national independence from Britain. The withdrawal of Jamaica then...
Words: 1392 - Pages: 6
...A BRIEF HISTORY OF THE CARIBBEAN COMMUNITY (CARICOM) WEST INDIES FEDERATION Established in 1958, the West Indies Federation comprised the ten territories of Antigua and Barbuda, Barbados, Dominica. Grenada, Jamaica, Montserrat, the then St. Kitts-Nevis-Anguilla, Saint Lucia, St. Vincent and Trinidad and Tobago. The Federation was established by the British Caribbean Federation Act of 1956 with the aim of establishing a political union among its members. Although a plan for a Customs Union was drawn up, emphasis was not placed on the economic aspect of Federation during the four years of its existence. Economically, the Region remained as it had been for centuries, and not even free trade was introduced between the member countries during this period. The West Indies Federation came to an end in 1962 but its end, in many ways, must be regarded as the real beginning of what is now the Caribbean Community. The end of the Federation meant the beginning of more serious efforts on the part of the political leaders in the Caribbean to strengthen the ties between the English-speaking islands and the mainland territories, Guyana and Belize, by providing for the continuance and strengthening of the areas of cooperation that existed during the Federation. To this end, in mid-1962, a Common Services Conference was convened to take decisions on these services, the major ones among them being the University of the West Indies (UWI), founded in 1948 and the Regional Shipping...
Words: 3062 - Pages: 13
...Guyana and Trinidad and Tobago. CARICOM was built in order to promote an economic integration and a real cooperation between its members, in order to coordinate foreign policy and in order to ensure that the benefits of integration are equally shared. Its aim was to take part in the international trade scene . In 1989, 13 of the 15 members of the CARICOM decided to change the strategy and to become a single market economy (CSME) so as to better and deeper integrate the members , to widen the membership and to expand the economic mass of the Caribbean community, and to progressively insert the region in the global trading and economic system. Almost 40 years after the creation of the CARICOM, we could ask ourselves about the efficiency of this trade bloc, about its successes and failures. It seems that the CARICOM managed to reach some of its objectives but that its expansion was blocked by several important negative factors. Let’s try to understand what happened. As we said, , the creation of the CARICOM and the CSME planned to integrate the different members in order to gain efficiency and benefits. As we discussed in class, there are huge advantages in creating a trade bloc, as it allows to reduce costs, to reach economies of scale, to diversify economies and to enlarge markets. In the precise case of CARICOM, the objectives were numerous and were supposed to solve local problems. For example,...
Words: 1012 - Pages: 5
...Monitoring and Evaluation within Stabilisation Environments Registration Numbers: Mariya Ilieva Spyridon Bonikos Nikolaos Manolitsis Smaro Kelesidou Ed Ostler Viswanathan Subramaniam Julian Schwarzkopf Ciro Fisicaro Alozie Glory Uche 201489866 201490054 201453124 201455352 201488881 201476168 201463502 201459312 201474863 Abbreviations: ICRG - International Country Risk Guide MPICE - Measuring Progress in Conflict Environments CA - Contribution Analysis CSME - Conflict Sensitivity Monitoring and Evaluation Executive Summary There are many different monitoring and evaluation techniques used by the industry that could be adapted to post conflict zones. They all have different strength and weaknesses that need to be weigh up carefully to fit the technique to the situation. The techniques investigated are: · International Country Risk Guide (ICRG) uses different variables to measure a country’s creditworthiness and estimate its ability and willingness to comply with its financial obligations. · Contribution Analysis (CA) is a logic model that evaluates the degree of contribution that the intervention is making to the observed measures. · Measuring Progress in Conflict Environments (MPICE) measures the effectiveness of diplomatic, military, and development efforts · Conflict Sensitivity Monitoring and Evaluation provides a detailed understanding of the conflicts context. Some of these techniques are more theoretical than others and can be applied in different speed and with...
Words: 2423 - Pages: 10
...Regional integration can be described as the union of a geological area, the main theme running through the efforts is that of cooperation. Hence regional integration is the interaction and cooperation of various countries in a specific region working together in order to foster their own well being, the idea of integration suggests unity and teamwork. On the other hand, regional integration also refers to an outcome, occurring when pre set criteria are met. Regional integration involves some compromise on the part of nation states, but should enhance the general quality of life for the citizens of those states. Regional integration can be described as a dynamic process that entails a country’s willingness to share or unify into a larger whole. The degree to which it shares and what it shares determines the level of integration. Exploration of the factors promoting regional integration within the Caribbean * Common language - The language of the Caribbean people is English, and this facilitates easy communication. * Close Proximity - The Caribbean countries are relatively close to each other, hence, travel by air or sea from one country to another can be done in a relatively short space of time. * Caribbean countries share a common history - Most of the Caribbean people are descendants of people who had been subjected to slavery and indentureship. This makes it possible for the Caribbean people to embrace each other. * Common Cultural Heritage - The Caribbean...
Words: 2411 - Pages: 10
...The effects of globalization on CARICOM Caribbean economies Introduction The impact of globalization on trade has been reflected in increased liberalization and market-opening policies, especially during the latter part of the 1980s and the 1990s. Influenced by the paradigm shift in policies at the global level, Caribbean countries responded with a package of policies geared towards limiting the role of the State in the economy and reinvigorating stagnant production systems, which were reoriented towards export markets. Trade reforms were implemented and regional integration gained new impetus. Noted scholar Norman Girvan defines globalization as the “allegedly irreversible process towards the formation of a single world economy, society and culture driven by technology and by the trans-nationalization of investment and capital. Globalization pursues the “reduction and eventual elimination of barriers t the movement of goods, services and capital across national borders”. Girvan further postulated that globalization is no longer just a process it is also an ideology wherein everyone ought to benefit. (Girvan 1999). Caribbean integration as a positive response to globalization With the challenges of globalization came the notion of having a collective group within the Caribbean that will aid in the effective trading of goods and services to the rest of the world. This meant not only diversifying its trade links with extraregional trading partners, but also and most importantly...
Words: 633 - Pages: 3
...Is Caricom still relevant? by TABLE OF CONTENTS Chapter 1 - Introduction # Section 1.1 – The genesis of caricom # Section 1.2 – Countries currently part of caricom # Chapter 2 - relevance # Section 2.1 – Objectives # Section 2.2 - Achievements # Chapter 3 - Conclusion # Introduction The Caribbean, a region comprising of some 30 countries, is largely known for leisure and relaxation as tourist bask in the Sea and Sun. However as small economies the question of how these economies can shape their futures, has always been at the fore-front of its political minds. Thus recognizing the power of unity, a number of these countries have forged together into a force that can compete on the world stage, now known as the “Caribbean Community and Common Market” i.e CARICOM. However there have been many challenges and the road ahead is uncertain. The Trinidad Guardian, April 26th 2012, asked the question “Caricom, soon to be Carigone?” The relevance of this question is of concern for all citizens that form part of the Caribbean Community. Whether aware or not the impact or lack thereof, of CARICIOM affects the way of life of the persons in the Countries that make up this Community. the genesis of caricom The states making up the Caribbean have long recognized the value of unity and integration and in 1958 established the “British West Indies Federation”, which was done made up of 10 states. The Federation ended in 1962; however the idea of a unified Caribbean Community...
Words: 958 - Pages: 4
...CAVE HILL SCHOOL OF BUSINESS UNIVERSITY OF THE WEST INDIES CAVE HILL CAMPUS Executive Diploma in Management Group 3 Case Analysis: Elegant Furniture Company using the Seven-Step Case Analysis Format COURSE: GEMA5100 – Marketing Management ID Numbers: 00680885 411005098 FACILITATOR: Ms. Candice Warner-Barrow WORD COUNT: PAGES: TABLE OF CONTENTS |EXECUTIVE SUMMARY | | 2 | |MISSING INFORMATION AND ASSUMPTIONS | |2 | |SITUATION ANALYSIS | | | |SWOT Analysis | |4 | |Strategic Fit Analysis | |7 | |Environmental Fit | |7 | |Internal Fit | |8 | |Customer Fit | |9 ...
Words: 2692 - Pages: 11
...which can be labelled into three categories: these are developed countries, developing countries and underdeveloped countries. Interaction between these countries in the different categories leads to integration among these countries. Integration, especially regional integration, is found among, developed and developing countries, between just developing countries and or developed and underdeveloped countries. Trade is a major core aspect which builds integration between countries, also their geographic location. Countries which have a common geographical location develop a regional integration among companies. An example is Caribbean Community (CARICOM). In the article , The Building Blocks of Successful Regional Integration Lessons for CSME from other Integration Schemes, the authors Rachel Simms and Errol Simms quoted integration as “…..the formation by neighboring territorial units, of alliance to boost economic and subsequently, political integration through free trade areas of customs union. The whole world is operating in trading blocks for better economic and negotiating purpose” (Simms & Simms, 2007). Despite regional integration is mostly seen as a positive effect, which can benefit a country and its...
Words: 1282 - Pages: 6
...Introduction “There is no commerce without community,” (Jennae as cited in Goodreads, n.d.). Indeed, commerce has pervaded the global stratosphere, linking countries in a communal bond of trade. Designated as trade blocs, these bonds are a type of intergovernmental agreement, usually associated with geographically aligned intergovernmental confederations, “where regional barriers to trade, (tariffs, and non-tariff barriers) are reduced or eliminated among the participating states” (Boundless, n.d.). As such trade blocs enable politico-economic ventures to flourish in the benefaction of its member nations. Albeit, trade blocs also represent diverse forms of economic integration, markedly, the preferential trade area, free trade area, custom union, common market, economic union and complete political integration (“What are trading blocs?”, n.d.). Customarily, the preferential trade area denotes the lowest level of commitment to reducing tariff barriers; typically member nations reduce trade barriers sans eliminating any amoung themselves (Finance Train, 2012). Whereas, the free trade area exists under the terms whereby trade barriers are removed on all member country imports, whilst independent tariff policies for non-member imports are retained (Finance Train, 2012). Comparatively, within the custom union, trade barriers are not only removed on all imports from member states, but a set of common policies are authorized in dealing with imports from non-member countries (Finance...
Words: 3675 - Pages: 15
...International Burch University, Sarajevo Managment Department Introduction to Economics I TRADE AGREEMENTS AND WORLD TRADE ORGANIZATION PROFESSOR ASSISTANT STUDENTS Nataša Tandir Nedžad Isaković Sejid Abaz Sarajevo, December 2011. CONTENT Trade Agreements.......................................................................................................................... 3 Bilateral and Multilateral Agreements................................................................................. 3 Trade Agreements and Trading Blocks............................................................................... 3 Different types of trade agreements..................................................................................... 3 1. Free Trade Areas (FTA)........................................................................................... 3 2. Common Monetary Area (CMA)............................................................................. 5 3. Customs Union......................................................................................................... 5 4. Common Market...................................................................................................... 6 5. Monetary Union....................................................................................................... 6 6. Economic Union......................................................................................
Words: 2886 - Pages: 12
...Evaluation of the Success of Economic Integration Movement in the Caribbean A clear judgment of the success of economic integration in the Caribbean can be highlighted by the optimism of the positive outcomes of the varying levels of the Caribbean’s economic integration. These include: Common Trade Policy and Strategy One of the strengths of the Caribbean Single Market Economy is its aim towards embracing a common trade policy. This is expected to emanate from a unified approach, some level of substantial advantage. These include increased negotiating capacity as well as reduced costs at a national level. This is as result of cost sharing, greater bargaining power from unanimity on trade issues greater ease in cooperating with other countries and regions. The Caribbean Single Market Economy offers several important strengths which can enhance regional economic performance. Among these are the implementations of a common trade strategy. Economic, Fiscal, Monetary and other Policy Harmonization It is envisaged that member countries will harmonize taxation regimes and also pursue fiscal policy integration as in the European Union. Monetary policy harmonization envisages the coordination of exchange rate, interest rate, and commercial banking and securities policies with the intention eventually of having a single currency, a Caribbean Central Bank and a regional stock exchange. In addition, there are other areas of functional cooperation that include harmonization of policy...
Words: 566 - Pages: 3
...Caribbean; the independent English-speaking Caribbean region (about.com, 2012). Today Guyana is deemed as a republic with an executive branch of government filled by the president and the prime minister. Some of the concerns with the economy are that The Guyanese economy displayed modest economic progression in recent years and is centered mainly on agriculture and extractive industries (state.gov, 2011). The economy is very much reliant on the distributing of 6 goods which are: sugar, gold, and bauxite, shrimp, timber, and rice which speaks for approximately 60% of the country's GDP and are very much vulnerable to hostile conditions and the rising and falling of commodity prices. Guyana's entry into the CARICOM Single Market and Economy (CSME) in January 2006 has expanded the country's export market, mostly in the raw materials sector (state.gov, 2011). Economic recovery from the time when the 2005 flood-related contraction was buoyed by surges in remittances and foreign direct...
Words: 927 - Pages: 4
