Madam Speaker, I rise today to introduce an Opinion Editorial from the New York CaribNews that reflects support for the development of the Caribbean Community and Common Market (CARICOM) states. CaribNews is a New York based publication…
Madam Speaker, I rise today to introduce an Opinion Editorial from the New York CaribNews that reflects support for the development of the Caribbean Community and Common Market (CARICOM) states. CaribNews is a New York based publication that serves as the voice of the Caribbean community.
The editorial which was published on Tuesday, July 8, 2008 is entitled; ``The Diaspora And The Rolling Heads of State''. The author of the Op-Ed, Dr. Basil Wilson, recognizes the achievements made by CARICOM nations to improve trade relations within the region and globally. ``In 2008, CARICOM is to make further strides in the development of a single market economy''.
Dr. Wilson also addresses the New York based Caribbean Diaspora as it relates to Caribbean economies. He explains; ``Billions of dollars (from the U.S.) are sent to the respective islands to help out family members, to expand existing homes, to start businesses, and to provide some of the basic necessities of life''.
This piece acknowledges the economic achievements made by Caribbean nations, therefore contributing to the region's legitimacy as a viable trading partner. At the same time, Dr. Wilson encourages entrepreneurial leadership in the Caribbean to further stimulate economic growth.
[From the CaribNews, July 8, 2008]
The Diaspora and the Rolling Heads of State
(By Dr. Basil Wilson)
It was befitting to hold the meeting bringing together the
Caribbean community in New York and the Caribbean heads of
state at York College, City University of New York, where the
President of that institution, Marcia Keizs and the Provost
and Senior Vice President of Academic Affairs have roots in
the Caribbean and a majority of the 6,000 student body are
either first or second generation Caribbean.
As one of the Caribbean heads of state remarked, he had to
travel to New York to address an audience of Caribbean people
as the movement of Caribbean people within the region remains
limited with the exception of the students in higher
education moving among the Mona, Cave Hill and St. Augustine
campuses of the University of the West Indies. The Friday
evening meeting on June 20, 2008 was designed to facilitate
an intellectual exchange between leaders and non-leaders
about the Diaspora and the future of, CARICOM.
The Diaspora community already plays a critical role in the
form of remittances. Billions of dollars are sent to the
respective islands to help out family members, to expand
existing homes, to start businesses, and to provide some of
the basic necessities of life. In many islands remittances
have been instrumental in reducing the percentage of people
living in poverty.
The format of the exchange enabled designated heads of
state to address the audience and to allow the audience to
ask questions or to make comments. This kind of mass
questioning tends to attract to the open microphones speakers
who are long-winded and with wide ranging concerns that
invariably brings a certain incoherence to the discourse.
The world economy has changed dramatically since the
initiation of CARICOM. In 2008, CARICOM is to make further
strides in the development of a single market economy. Even
within the units of CARICOM, there are no economies of scale.
There are opportunities for investment and for the pooling of
resources. The economist, Dr. Norman Girvan, has produced a
paper outlining the future for further economic expansion.
Trinidad and Tobago has emerged as the economic giant in the
region and is standing even taller as the price of oil soars
towards one hundred and fifty dollars per barrel. T and T is
overflowing with investment capital at the same time
nonexporting oil countries in the region are reeling from the
rapid rise in oil and food prices that are now the norm in
the world economy.
CARICOM at the beginning of the year signed a trade
agreement with the European Union that opens those economies
to Caribbean products and European products to the Caribbean
region. CARICOM and CARIFORUM can no longer look inwards. It
must look outwards either as a region or as independent
islands. There is the dire urgency to put together an export
oriented strategy to compete in the global economy of the
21st century.
The crime calamity in the Caribbean basin is indeed an
outgrowth of the economic crisis and even though some sorely
needed initiatives will be able to strengthen the shaky
social order, long term stability will depend on the
strengthening of the export sector in relationship to the
world economy.
The Caribbean entered the world economy as an exporter of
sugar with African slave labor. By the beginning of the 19th
century, sugar production in the old English colonies had
peaked and was unable to match the yield per acre of the new
sugar-cane fields in Cuba. In the post-emancipation years and
post-colonial interlude, the economies of the Caribbean
remained moribund, starved of British investment capital and
survived through the British protectionist system reserved
for primary producers of the colonial empire. That
arrangement created a condition of chronic surplus labor and
forced segments of the Caribbean labor force to seek their
fortunes elsewhere such as in the banana fields of Central
America, the sugar-cane fields of Cuba, the construction
complex of the Panama Canal, and the industrialized factories
in the United States at the advent of World War 1. In the
post-second world war, thousands fled the region to work in
the industrial and service enterprises of the United Kingdom.
In the post-colonial years in an age of global
protectionism, most Caribbean countries opted for the
developmental strategy of industrialization by invitation
hiding behind the high walls of tariff barriers. That
resulted in an economy with an export producing primary
sector of sugar and banana and the new sector of light
manufacturing serving the needs of the domestic market. The
developmental strategy accelerated the movement from country
to town where the
limited manufacturing sector lacked the capacity to absorb
the burgeoning labor force. Salvation came through the export
of skilled and unskilled labor to the United States, Canada
and the United Kingdom.
The growth in the labor force has tapered off in the
contemporary period and the unemployment rate in April 2006
was estimated at 134,000 or 10.7 percent of the labor force.
Nonetheless, Jamaica has a precious stratum of own-account
workers estimated at 376,000. In the goods producing sector,
there are 200,000 people employed in agriculture, 105,000 in
construction and a mere 80,000 in manufacturing. Traditional
agriculture, particularly sugar-cane, there is an effort to
adapt that industry through the conversion of sugar-cane into
the fuel producing ethanol. The purchase of the sugar
industry by Brazilian investors should make the sugar
industry more viable and contribute to reducing Jamaica's
dependency on fossil fuel and with sufficient capacity to
export ethanol to the United States.
Jamaica's economy in the last decade has seen the expansion
of the alumina industry and a massive increase in the tourist
sector. Alumina and bauxite are highly capital intensive and
only 7,000 workers are absorbed in the mining industry. The
tourist industry is labor intensive but has failed to absorb
all those looking for work as the burgeoning squatter
settlements are rampant in the parishes where tourism is
concentrated.
Jamica has made some headway in the export of manufacturing
goods. That sector exports approximately 700m in 2006 and if
Jamaica is going to absorb its surplus labor problem, there
will have to be exponential growth in that sector of the
economy, particularly in agro-products.
The Jamaica exporting sector is assisted by state policy.
Members of the Jamaica Exporters Association are eligible for
loans with reduced interest rates. But what is desperately
needed is a strategic developmental plan that brings together
venture capitalists from abroad and Jamaica's indigenous
bourgeoisie aimed at creating large scale production of
juices like guava, june plum, etc. aimed at flooding both the
European and the United States market. Micro-enterprises
cannot compete in a global market and Jamaica is in need of
large scale production aimed at mega-markets to absorb
Jamaica's surplus workers.
All the successful countries that have made the transition
from fledgling developing countries, like Singapore, South
Korea, Malaysia, Taiwan and China, have made it through
adopting an export-oriented strategy.
What is required is the emergence of an entrepreneurial
class with a clear understanding of the complexity of
globalization that will partner with government to build that
export capacity. In this age of globalization, CARICOM must
look outwards and build the necessary bridges with the
Caribbean Diaspora to ensure that the Caribbean is not
trapped in the backwater of globalization.