CSME is necessary for meeting the economic and social objectives of the region’s economy.
Caribbean economic development has lagged behind as compared to other small economies, such as Singapore, Ireland and Cyprus, as they have depended on the exploitation of natural resources as well as preferential arrangements for products such as sugar and bananas.
In 1975 the Caribbean was at the same level, in terms of GDP per capita, with Ireland, Singapore and Cyprus. However, Ireland and Singapore’s GDP was almost twice the size of the Caribbean region by the turn of the century.
Compared to other developing economies, the Caribbean ranks high on the human development index. Both the region’s average literacy and life expectancy rates are high. On the other hand however, poverty rates are also high and income inequality is significant.
Three of the main economic challenges facing the region are the loss of preferential arrangements, importance of achieving higher productivity levels and the need to strengthen fiscal positions and reduce the public debt burden.
In terms of loss of preferential arrangements, the estimated cost of producing and exporting sugar by the lowest cost Caribbean producers is 50 to 60 percent higher than that of the higher cost free market exporters.
In terms of economic restructuring, the reality is that the Caribbean agricultural sector will find it difficult to globally compete as the high labour intensive manufacturing in the Caribbean can no longer compete internationally due to high wage structures and the rise in exportation of Chinese manufacturers.
Caribbean economies need to improve productivity since there was a decline in productivity in the 1990’s in both public and private investments. Migration is another reason for the decline in productivity as it has represented a brain drain which has weakened the skills base and capacity of regional economies.
Monday, January 25, 2010
PART ONE...-------> DUM DUM DUMMMM... NOT FINISHED... TO BE CONTINUED
CSME is fundamental to the erasure of economic development challenges in the Caribbean region.
The Caribbean has made a fall back in their econmic development because of their abuse of natural resources and high dependence on main agricultural products(sugar and bananas).
GDP per capita of the Caribbean in comparison to that of the mentioned countries, in 1975, were almost equivalent, however, with the passing of the century the countries were ahead of the region.
T&T did not experience poor growth performance in the 1990’s , due to resurgence of oil.
GDP growth improved in the Caribbean in 2000
This was due to the the indicators of development: Income Health Education and Birth Rate
The first main economic challenge: the loss of preferential arrangements,for example,in terms of traditional agricultural exports and the necessity to make changes in the economies to meet the current global trading environment. This led to competition in export markets.
The Caribbean has made a fall back in their econmic development because of their abuse of natural resources and high dependence on main agricultural products(sugar and bananas).
GDP per capita of the Caribbean in comparison to that of the mentioned countries, in 1975, were almost equivalent, however, with the passing of the century the countries were ahead of the region.
T&T did not experience poor growth performance in the 1990’s , due to resurgence of oil.
GDP growth improved in the Caribbean in 2000
This was due to the the indicators of development: Income Health Education and Birth Rate
The first main economic challenge: the loss of preferential arrangements,for example,in terms of traditional agricultural exports and the necessity to make changes in the economies to meet the current global trading environment. This led to competition in export markets.
part one:
Challenges in economic development in the region, propose that the CSME is necessary for economic and social objectives of the region. Development in the caribbean has lagged behind those of commparable countries because of our independence on the exploitation of natural resources and preference for agricultural produce (sugar and bananas). Economic performance suffered a decline which, while marginally better than that of Latin America, was still not as good as Asian countries. The notable exception to this poor growth performance was Trinidad and Tobago. While, the universally accepted indicators of development were considered to be income, health , education and life expectancy.
stay tuned for part two...
Challenges in economic development in the region, propose that the CSME is necessary for economic and social objectives of the region. Development in the caribbean has lagged behind those of commparable countries because of our independence on the exploitation of natural resources and preference for agricultural produce (sugar and bananas). Economic performance suffered a decline which, while marginally better than that of Latin America, was still not as good as Asian countries. The notable exception to this poor growth performance was Trinidad and Tobago. While, the universally accepted indicators of development were considered to be income, health , education and life expectancy.
stay tuned for part two...
Caribbean blah blah blah...
Summary:
1. Throughout this presentation, we will be discussing the challenges facing the region, namely the region’s economic development, as well as the proposal that economic integration is essential for the region’s economic and social objectives.
2. The Caribbean economy is less developed than other small countrries such as Singapore, Ireland and Cyprus because the Caribbean depended on the exploitation of both the natural resources, and the preferetial rates of the main agricultural products, being sugar and bananas.
3. Though the Caribbean was in line with Ireland, Singapore and Cyprus in 1975 with respects to GPD, they fell behind greatly, with Singapore and Ireland doubling their GDP compared to the region’s highest per capita country.
4. The Caribbean experienced a steady decline in GDP with a decrease from 3.9 percent in the 1970s to 1.9 percent in the 1990s, lower than the average growth rate of the world’s small island countries. This continued in the 1990s, with the exception of Trinidad and Tobago, who experienced a revival of world oil prices and implemented economic policy reforms which resulted in the continuation in per capita growth.
5. High oil prices and population growth resulted in the doubling of per capita income from 2000-2006 in Trinidad and Tobago while tourism and infrastructural development aided in the growth of other Caribbean islands. Included in the factors indicating growth were life-expectancy, income, health-care and education.
6. The region ranks high on the Human Development Index with high literacy and life-expectancy rates while also experiencing high poverty rates.
7. The economic challenges facing the nation are: 1.Loss of preferential arrangements, 2. Higher productivity levels and, 3. The need to reinforce fiscal positions and reduce public debts.
1. Throughout this presentation, we will be discussing the challenges facing the region, namely the region’s economic development, as well as the proposal that economic integration is essential for the region’s economic and social objectives.
2. The Caribbean economy is less developed than other small countrries such as Singapore, Ireland and Cyprus because the Caribbean depended on the exploitation of both the natural resources, and the preferetial rates of the main agricultural products, being sugar and bananas.
3. Though the Caribbean was in line with Ireland, Singapore and Cyprus in 1975 with respects to GPD, they fell behind greatly, with Singapore and Ireland doubling their GDP compared to the region’s highest per capita country.
4. The Caribbean experienced a steady decline in GDP with a decrease from 3.9 percent in the 1970s to 1.9 percent in the 1990s, lower than the average growth rate of the world’s small island countries. This continued in the 1990s, with the exception of Trinidad and Tobago, who experienced a revival of world oil prices and implemented economic policy reforms which resulted in the continuation in per capita growth.
5. High oil prices and population growth resulted in the doubling of per capita income from 2000-2006 in Trinidad and Tobago while tourism and infrastructural development aided in the growth of other Caribbean islands. Included in the factors indicating growth were life-expectancy, income, health-care and education.
6. The region ranks high on the Human Development Index with high literacy and life-expectancy rates while also experiencing high poverty rates.
7. The economic challenges facing the nation are: 1.Loss of preferential arrangements, 2. Higher productivity levels and, 3. The need to reinforce fiscal positions and reduce public debts.
Economic Integration and Development
Noting the economic challenges within the Caribbean region, the CSME is necessary for economic integration. The Caribbean exploits natural resources because economic development in the region is delayed in comparison to small and comparable countries and we have preferential rates for agricultural produce. The Caribbean was in line with Ireland, Singapore and Cyprus in 1975. However, there has been a steady decline in growth in the 1970’s to the 1990’s of 1% of the GDP per capita. In 2000, there has been some growth in the real GDP in the Caribbean, increasing per capita incomes. Although poverty rates in the region are high, the Caribbean ranks high on the Human Development Index based on income, literacy and life expectancy. The main economic challenges facing the Caribbean are the loss of preferential arrangements, the ability to achieve higher productivity levels and the necessity to strengthen fiscal positions and reduce public debt burden.
As governments face political mandates to improve social and economic conditions, European markets are eroded. Developing countries have not taken the advantage of the long period of preferential market access to increase productivity of agricultural produce. The agricultural sector in the Caribbean is finding it difficult to be globally competitive. The lower productivity of both public and private investments has declined in the 1990’s. The agriculture sector has declined as a result of migration. Currently, remittances are a major factor to foreign exchange receipts in the region. However, migration has caused the brain drain which weakens the region’s human resources. Excessive build up in public debt hurts growth as resources were redirected to debt servicing.
As governments face political mandates to improve social and economic conditions, European markets are eroded. Developing countries have not taken the advantage of the long period of preferential market access to increase productivity of agricultural produce. The agricultural sector in the Caribbean is finding it difficult to be globally competitive. The lower productivity of both public and private investments has declined in the 1990’s. The agriculture sector has declined as a result of migration. Currently, remittances are a major factor to foreign exchange receipts in the region. However, migration has caused the brain drain which weakens the region’s human resources. Excessive build up in public debt hurts growth as resources were redirected to debt servicing.
Why The Lag?
Caribbean economic development has lagged behind that of similar countries due to its dependence on the exploitation of our natural resources .
E.S Williams
*CSME is important for eceonomic and social development of the caribbean region.
§ *The exploittion of natural resources in the Caribbean, and dependence on prefential trade has caused economic develpmnent to lag behind
§ *Deveplopment of carbbean countries has lagged behind because of their expliotation of natural resources
§ *development in the caribbean has lagged behing those of comparible countries like singaporo, Ireland and Cyprus because we depend on exploitation of natural resoures and on preferential rates for agricultural produce( sugar and bananas ).
§ *All the countries started off the same position and now the Caribbean countries are lagging behind.
§ Per capita income is one of the main economic development indicators. HDI:
Ireland=4
Barbados=31
§ With the exploitation of resources and dependence on preferential agreements, the Caribbean experienced a decline in both income per capita and GDP.
§ GDP experience lower growth rates with Asia moving 3times its pace
§ However, high oil prices have incresed incomes per capita reulting in economic growth, improving infrastructure and tourism facitlities
§ Though there was underdevelopment before 2000, progress and development has been made thruough income, health, education and life expectancy
§ All countries are middle income except haiti and guyana
§ Although there are high literacy and life expectancy rates, poverty and income inequality is also high which can cause adverse effects
§ the main economic challenges facing there gionis the loss of preferential arrangements- move away from agriculture and access to European market is challenging..
§ higher productivity levels-
§ strengthen fiscal positions and reduce the public debt burden-
§ *The exploittion of natural resources in the Caribbean, and dependence on prefential trade has caused economic develpmnent to lag behind
§ *Deveplopment of carbbean countries has lagged behind because of their expliotation of natural resources
§ *development in the caribbean has lagged behing those of comparible countries like singaporo, Ireland and Cyprus because we depend on exploitation of natural resoures and on preferential rates for agricultural produce( sugar and bananas ).
§ *All the countries started off the same position and now the Caribbean countries are lagging behind.
§ Per capita income is one of the main economic development indicators. HDI:
Ireland=4
Barbados=31
§ With the exploitation of resources and dependence on preferential agreements, the Caribbean experienced a decline in both income per capita and GDP.
§ GDP experience lower growth rates with Asia moving 3times its pace
§ However, high oil prices have incresed incomes per capita reulting in economic growth, improving infrastructure and tourism facitlities
§ Though there was underdevelopment before 2000, progress and development has been made thruough income, health, education and life expectancy
§ All countries are middle income except haiti and guyana
§ Although there are high literacy and life expectancy rates, poverty and income inequality is also high which can cause adverse effects
§ the main economic challenges facing there gionis the loss of preferential arrangements- move away from agriculture and access to European market is challenging..
§ higher productivity levels-
§ strengthen fiscal positions and reduce the public debt burden-
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