Issues in Caribbean Development
CARIBBEAN STUDIES MODULE TWO: ISSUES IN CARIBBEAN DEVELOPMENT TOPIC: THE INTEGRATION MOVEMENT 1. The evolution of: Federation, CARIFTA, CARICOM, OECS, ACS 2. The achievements and challenges of any THREE of the following: * Caribbean Community (Caricom) * University of the West Indies (UWI) * Caribbean Examinations Council (CXC) * West Indies Cricket Board (WICB) * Caribbean Tourism Organisation (CTO) * Caribbean Single Market and Economy (CSME) * Regional Security System (RSS) A// The West Indian Federation (1958 – 1962) One of the first major attempts at regional integration was the formation of the West Indian Federation of 1958.
Member States included: * Antigua * Barbados * British Guiana * Dominica * Jamaica * Montserrat * St kitts/Nevis/Anguilla * St Vincent * St lucia * Trinidad and Tobago The Federal government was headed by an Executive Governor-General, appointed by Britain and included: * A Prime Minister, elected from among and by the members of the House of Representatives * A Cabinet, comprising the Prime Minister and ten other elected Members chosen by him * A Council of State presided over by the Governor General. The Council included the Prime Minister and Members of the Cabinet as well as three senators and three civil servants.
The senators and civil servants were chosen by the Governor General. (The Council of State was the principal policy (decision)-making body at the start of the Federation. In 1960 Britain agreed to abolish this Council and allow the Cabinet to take over the powers of the Council) * A forty five-member House of Representatives, with Members elected from among the Territories; and * A nineteen-member Senate, nominated by the Governor General following consultation with the Prime Minister The Governor General was Lord Hailes of Britain and the Prime Minister was Sir Grantley Adams, (Premier of Barbados).
The Federal capital was located in Trinidad and Tobago. During its brief existence (1958-62), a number of fundamental issues were debated with a view to strengthening the Federation. Among these were direct taxation by the Federal Government, Central planning for development, Establishment of a Regional Customs Union and Reform of the Federal Constitution. The issue of direct taxation was particularly controversial. The Federation was not permitted to levy (impose) income tax for at least the first five years of its life.
Added to this, were the greatly differing positions among the Territories with respect to how other federal taxes should be levied. In addition, the Federation began quickly to seek to establish federal institutions and supporting structures. It created a federal civil service; established the West Indies Shipping Service (in 1962) to operate two multipurpose ships – the Federal Maple and the Federal Palm – donated to it by the Government of Canada.
It had embarked also on negotiations to acquire the subsidiary of the British Overseas Airways Corporation (BOAC), namely British West Indies Airways (BWIA). Cooperation in tertiary education was consolidated and expanded during this period. The then University College of the West Indies (UCWI), which was established in 1948 with one campus at Mona, Jamaica, opened its second campus at St Augustine, Trinidad and Tobago, in 1960. The Federation however faced several problems.
These included: the governance and administrative structures imposed by the British; disagreements among the territories over policies, particularly with respect to taxation and central planning; an unwillingness on the part of most Territorial Governments to give up power to the Federal Government; and the location of the Federal Capital. The decisive development, which led to the demise of the Federation was the withdrawal of Jamaica – the largest member – after conducting a national referendum in 1961 on its continued participation in the arrangement.
The results of the referendum showed majority support in favour of withdrawing from the Federation. This was to lead to a movement within Jamaica for national independence from Britain. It also led to the now famous statement of Dr Eric Williams, the then Premier of Trinidad and Tobago that, one from ten leaves nought, referring to the withdrawal of Jamaica and signifying and justifying his decision to withdraw Trinidad and Tobago from the Federal arrangement a short while later. The Federation collapsed in January 1962.
AIMS AND OBJECTIVES: 1. To strengthen the movement for self government 2. To promote economic development 3. To safeguard the democratic system of government vis a vis dictatorship and communism ACHIEVEMENTS 1. Federation facilitated the movement from colonialism to independence through a united voice 2. The coming together of small states strengthened their effectiveness in dealing with international bodies such as the United Nations REASONS FOR FAILURE 1. The masses were not educated on the importance of Federation 2.
Communication among the islands including shipping, telephone and postal services was inefficient 3. Envy and jealously among member states from their varying levels of economic prosperity 4. Distrust by the smaller states of the larger members (Trinidad and Tobago, Jamaica) proposal to prematurely change the constitution of the Federation B//CARIFTA (1968 – 1973) The Caribbean Free Trade Association (CARIFTA) was founded by Antigua and Barbuda, Barbados, Guyana, and Trinidad and Tobago on 15 December 1965, with the signing of the Dickenson Bay Agreement (the Agreement establishing the
Caribbean Free Trade Association). They were joined on 1 July, 1968 by Dominica, Grenada, St Kitts-Nevis-Anguilla, Saint Lucia and St Vincent and the Grenadines; and on 1 August, 1968 by Montserrat and Jamaica. In 1971 Belize (then British Honduras) joined the Association. These Caribbean countries had recently become independent, and CARIFTA was intended to unite their economies and to give them a joint presence on the international scene.
Specifically, CARIFTA was intended to encourage balanced development of the Region by: | • increasing trade – buying and selling more goods among the Member States • diversifying trade – expanding the variety of goods and services available for trade • liberalising trade – removing tariffs and quotas on goods produced and traded within the area • ensuring fair competition – setting up rules for all members to follow to protect the smaller enterprises| In addition to providing for free trade, the Agreement sought to: | • ensure that the benefits of free trade were equitably distributed • promote industrial development in the LDCs promote the development of the coconut industry (through an Oils and Fats Agreement) which was significant in many of the LDCs • rationalise agricultural production but in the interim, facilitate the marketing of selected agricultural products of particular interest to the LDCs (through the Agricultural Marketing Protocol); and • provide a longer period to phase out customs duty on certain products which were more important for the revenue of the LDCs| In 1972, Commonwealth Caribbean leaders at the Seventh Heads of Government Conference decided to transform the Caribbean Free Trade Association (CARIFTA) into a Common Market and establish the Caribbean Community, of which the Common Market would be an integral part. The signing of the Treaty establishing the Caribbean Community, Chaguaramas, 4th July 1973, was a defining moment in the history of the Commonwealth Caribbean. Although a free-trade area had been established, CARIFTA did not provide for the free movement of labour and capital, or the coordination of agricultural, industrial and foreign policies.
The objectives of the Community, identified in Article 6 of the Revised Treaty, are: to improve standards of living and work; the full employment of labour and other factors of production; accelerated, coordinated and sustained economic development and convergence; expansion of trade and economic relations with third States; enhanced levels of international competitiveness; organisation for increased production and productivity; achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description and the enhanced co-ordination of Member States’ foreign and foreign economic policies and enhanced functional co-operation. In 1973, CARIFTA became the Caribbean Community (CARICOM). C//CARICOM The agreement giving birth to the Caribbean Community and common Market (CARICOM) was signed on July 4, 1973 at Chaguaramas in Trinidad and Tobago. Effective operation of Caricom began on August 1, 1973. Main objectives include: 1.
To improve the economic development of member states through the introduction of free trade. 2. Co operation among member countries in the areas of: shipping, air transport, meteorological services, health, education, culture etc.. 3. To establish common policies in dealing with non-member states and transnational corporations D//OECS – Organization of Eastern Caribbean States The organization of Eastern Caribbean states (OECS) was established on June 18, 1981 with the signing of a treaty among the following countries: 1. Antigua and Barbuda 2. Dominica 3. Grenada 4. Montserrat 5. St Kitts/Nevis 6. St Lucia 7. St Vincent and the Grenadines Objectives: 1.
To promote development by the formation of a common market among member states 2. To deal more effectively with international bodies by forming a common foreign policy 3. To assist each other in defending and maintaining political independence OECS member states have a common Eastern Caribbean Currency, they all belong to the Lesser Antilles, they are all small, independent states, share common strategies for development, a common Central Bank, a common High Court and a Joint Stock exchange. ACS: Association of Caribbean States The association of Caribbean States is an orgsanisation which at present consists of 25 Member states, 3 Associate members and 14 countries with observer status. Objectives:
The ACS was inaugurated on July 02, 1995 with its administrative office in POS, Trinidad. The main objectives of the Association relate to cooperation, discussion and action leading to the sustainable development of the entire Caribbean region. These include: 1. Incorporating the collective human and physical resources of the Caribbean for economic, social, cultural and technological advancement 2. Maximizing the potential of the Caribbean Sea by working with member states and other organizations 3. To encourage increased trade and investment opportunities through cooperation 4. To provide new and improved measures to promote the cultural identities of its members.
