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Caricom's new approach: economics, not sentiment

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Dear Editor,

The European Commission recently predicted that Eurozone GDP would fall 0.4 per cent this year, worse than the 0.3 per cent declined previously forecasted.

Europe is currently experiencing a new wave of austerity and the average European has no connection with the Caribbean. Therefore, a differentiated approach should not be a surprise to the region's technocrats.

A differentiated approach means that by 2014, the Caribbean — with the exception of Haiti — will graduate from development assistance. Europe's new policy for the region is outlined in the Joint Caribbean EU Partnership Strategy. Instead of focusing on individual states, the European Union will be investing in regional projects for climate change and other programmes.

Furthermore, Economic Commission for Latin America and the Caribbean Executive Secretary Alicia Barcena recently called for a bolstering of the "bi-regional partnership". Barcena urged the region to build a new relationship with Europe based on science and innovation. The region should heed her advice.

We must not fool ourselves that the foreign policy of Europe and the East is based on economic pragmatism and not benevolence. With the conclusion of the Cold War, the region is no longer of significance to either bloc. Although, the balance of power is slowly shifting from the West to the East, the Caribbean is still playing the role of a mendicant. For example, China and Taiwan are competing for dominance in the region; hence the reason for their gifts to Grenada and Belize respectively. If the political directorate is serious about enhancing the region's competitiveness, then Caricom must go beyond functional cooperation. Improving the region's R&D capabilities must become a major priority. This will build the innovative capacity of the region and create new industries.

According to the World Bank, the region's top 20 products account for 70 per cent of exports. In order to become competitive the regional economy must be diversified. There is too much dependence on traditional exports.

Also, regional integration should be strictly about economics, not sentiment. For example, the region should create a Caribbean Institute for Science and Technology to provide entrepreneurs and researchers with financial and technical expertise. In addition, the Office of Trade Negotiations should establish a private sector advisory group to assist with policy formation. Contrary to popular belief, Caribbean countries have little in common; therefore regional integration should exclude functional cooperation, except in areas like education and health. Countries in the region should see each other as business partners, not as brothers and sisters.

Lipton Matthews

lo_matthews@yahoo.com

Caricom's new approach: economics, not sentiment

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