REGIONAL INTERGRATION AND DEVELOPMENT

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REGIONAL INTERGRATION AND
DEVELOPMENT
Presentation Overview
 Define the concept of Regional Integration
 Outline the current Regional Integration process
 Compare the current Integration process on three levels
(market, economy and political)
 Limitations and Challenges of the Regional Integration
Process
 Regional Integration and Development
 Conclusion
Defining the concept of Regional
Integration
 Regional integration has been defined as an association of states
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based upon location in a given geographical area, whose terms are
fixed by a treaty or other arrangements.
Regional integration initiatives, should fulfill the
following functions:
the strengthening of trade integration in the region
the creation of an appropriate enabling environment for private
sector development
the development of infrastructure programmes in support of
economic growth and regional integration
contribution to peace and security in the region
the strengthening of the region’s interaction with other regions of
the world.
Defining the concept of Regional
Integration
 Economic Integration: the elimination of tariff and nontariff
barriers to the flow of goods, services, and factors of production
between a group of countries.
 Market Integration: is where the rules and procedure in the
operation of the market is harmonized between a group of
countries. Market Integration can take place on a sectorial level
e.g. finance.
 Political Integration: the creation of supranational units among
a group of countries duly empowered to strengthen the decision
making process.
The Current Regional Integration
Process
OECS
Economic
Union
CSME
• Bilateral
Arrangements -
WTO
Comparison of the Integration Process
OECS Economic Union
CARICOM Single Market Bilateral Arrangement
and Economy
Unrestricted movement of
the factors of production
(goods, services, capital,
people)
Unrestricted movement of
the factors of production
(goods, services, capital,
people)
Restrictions /structured
movement of the factors of
production.
Use of a single currency
through the ECCU
No single currency
Restrictions on capital
movements based on national
legislations.
Harmonization of policies
and procedure for the
financial sector e.g. banking
No harmonization of policies
and procedure for the
financial sector.
Commitment for the
financial sector is based on
national legislations.
Greater degree of legislative
harmonization.
Legislative harmonization
No legislative harmonization.
relates to the implementation
of the CSM.
Comparison of the Integration Process
OECS Economic Union
CARICOM Single
market and the
Economy
Bilateral Agreements
Creation of an OECS
No enforcement
Assembly to enact legislation mechanism.
and policies in the Economic
Union.
Enforcement is based on
commitment made in the
agreement.
Authority to develop subregional policies in the areas
of tourism, environment,
agriculture.
Policies are developed based
on the Treaty Chaguaramas.
Implementation of policies
are based on commitment
made in the agreement.
Existence of the Eastern
Caribbean Court system
Creation of the CCJ –
specialized court
Establishment of dispute
mechanism.
Single procurement
framework for
No single procurement
framework.
Procurement framework
based on commitment s
Limitations and Challenges of Regional
Integration
 The high degree of economic differentiation among member
states, which enormously complicates the task of finding common
ground on intra-regional and external policies.
 Lack of unequivocal political commitment to regionalism among
political leaders and lack of leadership on, or champions of, the
regional project.
 Policy incoherence within and among member countries on key
economic, social and foreign
 policy issues (e.g. on the questions of relations with Taiwan vs The
People’s Republic of China, Petrocaribe/ALBA, or effective
responses to the global financial and economic crisis).
Limitations and Challenges of Regional
Integration
 Shifts in the regional, hemispheric and global contexts,
including the proliferation of competing regional
organisations such as ALBA.
 Limited regional and national capacity to follow-up and
implement decisions and no legal capacity of enforcement.
 Emergence of new ‘existential threats’ to regional states in
the form of climate change, the rising incidence and cost of
natural disasters and the impact of proliferating transnational
crime.
 States are more inward looking in relation to development of
policies.
Regional Integration and Development
 Financial stability
 Development of a quality assurance framework for the
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production, packaging of goods and services
Increase levels of competitiveness
Policy convergence and coordination
Promotes good governance
Modernization of the legislative framework
Creates the enabling environment for businesses to expand
and grow
Regional Integration and Development
 Increases regional exports and trade
 Increases the regions international awareness and voting
power
 Increases the regions ability to access international donor
resources
 Expands national economies and opportunities
Conclusion
 It is for you to determine whether Regional Integration
impacts positively or negatively on development in the
Caribbean.

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