-says governance issues crucial
The Caribbean Community (Caricom) is at a crossroad and governance issues are very important, Trinidad Prime Minister Patrick Manning declared yesterday in Georgetown.
He said that the current Heads of Government Conference is critical to decide where the movement is heading.
He told reporters at the Guyana International Conference Centre that the integration movement and the economic situation in the Caribbean are important issues to be discussed.
Meantime, with regards to another hotly-debated topic – the proposed union between Trinidad and Tobago and the Organisation of Eastern Caribbean States (OECS), Manning said that this will form a significant part of the discussions between the Heads.
“What you are seeing really in terms of the initiative of Trinidad and Tobago is advancing the movement in a different direction and this is consistent with the Treaty of Chaguaramas, where if there are those who wish to move at a faster pace, they could do that”, he told reporters. He pointed out that the OECS countries took a decision to arrive at a single economy by the end of 2009 and “that predated any decision that was taken to expand that process of integration within the context of Caricom”. Several regional leaders have posited the view that a new intra Caricom alliance could further weaken the community.
Meanwhile, Barbados Prime Minister David Thompson said yesterday that on his part, issues relating to advancing the single market and commencing the process for the single economy would be principal ones for this 30th summit of Heads of Caricom. Others are freedom of movement, the removal of capital controls and other impediments. “Right now an audit is being undertaken by the single market and economy unit of every territory within Caricom looking at what progress they have made or not made as the case may be in implementing the decisions that were taken by previous heads”, he said. The audit will also look at member states’ obligations under the treaty. He noted that they had also agreed to have a convocation on the single economy which would involve stakeholders and that exercise discussed “exactly where we are and where we want to go.”
Responding to a question about the Regional Development Fund (RDF), he stated that the target of US$70 million has been met for the first tranche. He declared that all the countries have made the contributions and there is no issue with the RDF. With respect to members drawing down on the funds, the Prime Minister noted that countries can only do so if they have contributed and there has to be proper accountability procedures in place.
“Obviously there are some countries that are saying that we have immediate development needs and obviously there are some countries that are saying look because of the situation this year, the financial and liquidity problems in respect to its subsidiaries except Barbados, that some of those funds should be used to assist in stabilizing the financial sector”, he noted, referring to CL Financial and its Clico subsidiaries.
He asserted that there has to be a process in any financial institution regarding how funds are disbursed and utilized. Meantime, regarding the progress of a proposed regional regulatory mechanism for the financial sector, he stated that the college of regulators has met and is monitoring the situation in respect to the OECS countries.
They have been looking at a mechanism in relation to British American Insurance Company, he said, noting that Barbados has already stated what it will do in relation to Clico subsidiaries in Barbados. He noted that Trinidad has also indicated how it will resolve the issues in Port-of-Spain and he believes that the countries have come up with a very effective regional mechanism to deal with the issue “and barring any major issues along the way, I think what we have determined at the end of the day policyholders will be satisfied” with.
Regarding the institutionalization of a Caricom-wide regulatory organization, Thompson identified this as a necessity. He noted that there is an agreement in respect to investments that has to be signed. He, however, said that Barbados has a few problems with it, as did Jamaica, and that it is being fine-tuned in that respect. Thompson explained that what has been put in place is an interim measure which facilitates the exchange of information across the region and allows the regulators to sit down and develop best practices in managing the situation. He said that agreements have to be implemented in order to facilitate investments as well as regional regulation of investment decisions and prudential issues with respect to financial institutions.
