The Governments of the Organisation of Eastern Caribbean States (OECS) are now in the process of undertaking public consultations on an initiative towards transformation of the present organization into an OECS Economic Union by 2009. The Government of St Vincent and the Grenadines commenced consultations in October, and St Lucia has now taken its turn with a public ceremony initiating the consultations on Monday of this week.
With the establishment of the OECS in 1981, the states initiated an integration process replacing an institution, the West Indies Associated States Council of Ministers (WISA) which supervised, among efforts of functional and external relations cooperation, a free trade process intended to move towards a customs union. The OECS brought together a number of institutions of cooperation in which the countries had been involved as colonies of the United Kingdom, and over the years additional areas of functional cooperation have been agreed. The OECS also assumed responsibility for the Eastern Caribbean Supreme Court, a sub-regional precursor, in a sense, to what is now the Caribbean Court of Justice. And side by side with that institution exists the Eastern Caribbean Central Bank, reflecting the relationship of a currency union among the states, all sharing the Eastern Caribbean Dollar.
More recently, the heads of government decided that they should establish processes and institutions which would lead to a Single Market and Economy among them. This economic union would have an upgraded governance system, (a draft treaty has been agreed and is the subject of the consultations) responsible for effective decision-making and implementation, under the guidance of a series of commissioners, modelled somewhat along the lines of the European Union’s governance system.
The intention is that the OECS states should create, among themselves by 2009, what Caricom has since 1992 promised to establish – the Caricom Single Market and Economy. As we know, what has transpired is that, in the case of Caricom, though the single market has now been formally established, hesitations seem to be appearing among member states about the wisdom of moving on to a single economy. The OECS states already have a monetary union, so what follows from this is that if the OECS economic union is up and running by 2009, then it will be a more integrated and cohesive system than the larger grouping of which its member-states are also members.
If this were to be the case, it would not be entirely surprising. The OECS countries, left over as the ‘Little Eight’ (then including Barbados) after the demise of the federation in 1961, proceeded to formalize their relations particularly after Barbados decided to proceed to independence. Subsequently too, Barbados decided to leave the common currency (Eastern Caribbean dollar) zone then managed by an Eastern Caribbean Currency Authority.
As time has gone on, the case for continuing cohesion has appeared strong, not simply because of the common monetary system, but also because a number of what appeared to be indispensable institutions managing their common affairs already existed. These are reflected today, for example, in the common diplomatic missions which some of them share, and a common Directorate of Civil Aviation for regulating the air space between them, to which can be added similar institutions established after the foundation of the OECS itself.
What is striking, in the light of the wider Caricom experience, is the existence of common institutions which the larger countries of the Caribbean have insisted would be incompatible with their newly-won sovereignty – in particular the Eastern Caribbean Central Bank, the Eastern Caribbean Supreme Court and a sub-regional judicial system, and more recently the Regional Security System which they share with Barbados, and an Eastern Caribbean Pharmaceuticals Purchasing system designed to spread and minimize the costs of these expensive items.
And what, so far has been encouraging about the progress of the OECS is the persistent implementation of decisions about common or shared systems, creating a web of cohesiveness among them as, in some senses, a small country protection arrangement. There are, for example, many who feel that were it not for the common monetary system, it would have been hard for these small countries, in times of economic stress, not to succumb to the temptation to ‘print money,’ as has happened in other Caribbean states, with attendant consequences with which we are so familiar today. The people of the OECS might well feel that if the price of a certain stability has been what others might consider a concession of sovereignty, then it has probably been well worthwhile.
Undoubtedly, the governments of this sub-region will be aware that the relative stability of the years which has accompanied the growth of the OECS, is giving way to more turbulent times. One reason for the establishment of the economic union is, apparently, to provide a greater cohesion for coping with this new situation.
But it may also have been a reason for the recent willingness of some of the OECS governments to listen to the invitation offered by Prime Minister Manning of Trinidad and Tobago, to join his state in a wider east-southern Caribbean economic union by 2011, and then some form of what is referred to as “appropriate political integration” by 2013. The demise of the banana industry in some islands, and the prospect of difficulty in making an economic adjustment to current international economic circumstances, may well be inducing the perception that there may be strength in greater numbers.
It is left to be seen how the OECS as a whole responds to this ‘Manning Initiative,’ they having given, as a group, an indication of willingness to consider what eventually evolves as a potential structure. But in the meantime, it is evident that the countries are intent on pursuing the effort of greater cohesion among themselves, and we can only wish them well.
