PART TWO

Second: need to achieve higher productivity levels. Third: need to strengthen fiscal positions and reduce public debt burden. It is proven that developed countries fight for more open markets while they do not want to give up their agricultural subsidiaries or restrictions on freedom of labour. Gov’t subsidiaries to cover damage could increase to weak levels if exports were to continue. The Caribbean is now challenged to quickly develop new high productivity sectors that would push the region’s development. One prominent reason for this decline is the lower productivity of both public and private investments. As a result of Caribbean migration, there has been a brain drain leaving countries with little or weakened skills and capacity of regional economies. Development is needed in regions to grow fiscally. High public debt affects this growth. For countries with high debt, it is suggested that they reform their debt or create high primary surpluses. The region thinks implementation of CSME is detrimental for regional growth. Recent integration model is said to be one of open regionalism and is trying to find the main reasons for economic under achievement in regions. The CSME has fallen behind with the realization of many significant provisions.