Caribbean Essay

Economic Integration refers to trade unification between different states by the partial or full abolishing of customs tariffs on trade taking place within the borders of each state. However, there are several factors that affect economic integration among member countries of CARICOM. One major factor affecting economic integration is development since it affects the extent to which economic integration is achieved. There are various aspects that must be taken into consideration when expressing the view that the levels of disparity of development affect economic integration. Such aspects include the economical, social and political development among member countries of CARICOM and will now be discussed.

In terms of the economical development among member countries of CARICOM economic development has lagged behind as compared to other smaller Caribbean countries especially that of Trinidad and Tobago since they have depended on the exploitation of natural resources as well as preferential arrangements for products such as sugar and bananas. Also many member countries of CARICOM tend to have low levels of productivity, one reason for this has been migration as it has represented a brain drain which has weakened the skills base and capacity of regional economies. Economic development has also suffered since many member countries of CARICOM need to strengthen fiscal positions and reduce the public debt burden. High public debt hurts growth as resources that should be devoted to productive expenditure and social programmes are redirected to debt servicing. Having mentioned these faults of economical development among CARICOM member countries, solutions need to be implemented in order for economic integration to successfully move ahead in these member states. For example, Trinidad and Tobago has moved away from the production of sugar and has started to import it. However to deal with the issue of chronic fiscal imbalances these member states may need to consider debt restructuring or the generation of high primary surpluses. Jamaica is an example of a CARICOM member state that has tried this approach however public debt continues to rise because of high interest costs and low growth. In order to achieve this, member states must first increase levels of productivity if not they may not be able to survive in terms of competing globally. Therefore, it can be seen that member countries of CARICOM still have a lot of work to do to improve their economic development if they are to reap the full benefits of economic integration.

Moreover, in terms of social development, there have been a number of institutions that have been established to help economic integration move ahead. For example in terms of education The University of the West Indies has tremendously assisted with social development among member countries of CARICOM. Social development has occurred because of this since it has produced committed people to the CARICOM regions also it has helped to develop science and technology and it has produced research which has fueled the private sectors. Another example of social development has come through The West Indies Cricket board as it has organized coaching programmes in collaboration with territorial Boards from the individual countries to develop the sport in the various territories. This has helped economic integration to move forward as it helps to achieve the objective which sets out to accomplish close links with member countries. However, these institutions may face challenges in the future as the world is rapidly changing and there are always more options available but these challenges are ones CARICOM member states can work on to overcome. All in all these examples have clearly illustrated the point that social development is striving for member countries of CARICOM therefore it can be said that there are hardly any disparity levels of development for the social aspect of economic integration among member states. Also if these institutions keep up the good work then, in terms of social development, member countries can gain a lot of benefits from economic integration.

Additionally, in terms of political development, CARICOM member countries have implemented trade barriers such as tariffs and quotas. This has reduced the impact of trade liberalization among member states of CARICOM. For example, the impact of trade liberalization has been reduced by the large number of exemptions from the common tariff reduction scheme. This therefore shows that such trade restrictions have hindered regional integration among CARICOM member countries since it does not comply with the objectives of free trade among CARICOM countries.

In conclusion, the economical, social and political development among CARICOM member countries has posed a problem to economic integration due to the wide disparity levels of development. This is so since many of the objectives of economic integration are not being achieved among CARICOM member countries. Hence, the member countries of CARICOM will not reap the benefits of economic integration if they do not address the faults stated in the above factors.