The TRUTH about Caribbean Development

Over the last few decades, the Caribbean has experienced various setbacks which have hindered the process of economic development in the Caribbean region. However this was not always the case. In 1975, for example, the level of development within the region coincided with levels in similar comparably small countries such as Ireland and Cyprus. Several reasons may be said to account for this staggering process. Primarily, the Caribbean lost its preferential trade agreements to lower-cost producers with the advent of free trade. The loss of these arrangements, which meant that the Caribbean nations were assured of export markets, and low levels of productivity placed Caribbean nations in a quandary as Caribbean island states were used to dependence on and exploitation of resources in one particular sector. As a result, this was marked by significant declines in the GDP per capita of these countries during the period of the 1970s, 80s and for some even into the 1990s, with the exception of Trinidad and Tobago who saw improvements as a result of subsequent increases in world oil prices and policy reform.

However, the dawn of the twenty-first century has brought some improvements. Since 2000, the Caribbean has experienced some significant indicators of development such as improvements in infrastructure, education and life expectancy rates. Notwithstanding, the Caribbean still grapples with high poverty rates and income inequality.

The CSME, therefore can be seen as a vehicle for advancement within the region on a global level. Although for it to be successful it requires high external financing, the implementation of a single market and economy may benefit the Caribbean by increasing its market shares and competitiveness in the global market.