Dear Editor,
The Heads of Caricom will meet in Georgetown from today. The meeting is taking place against the backdrop of the exit of Britain from the European Union which is the largest trading bloc in the world.
The impact of Brexit on the Caribbean, more particularly the Anglophone Caribbean will most likely be the subject of much attention given the fact that the vast majority of Caricom countries were former colonies of Britain which to a large extent continue to have their political and administrative systems fashioned after the British Westminster model. Moreover, the EU still has strong links with the Caribbean both at the bilateral and multilateral level and any change in the internal dynamics of the EU could have repercussions on the economies of Caricom countries.
Guyana in particular has been the recipient of substantial assistance from the EU both financial and technical following the end of preferential prices under the Lome Convention for our sugar and rum. The current plight of the sugar industry is partially the result of precipitate cuts in the export price of sugar to the European market and despite EU compensation assistance the industry remains financially untenable.
It was precisely because of such unanticipated exogenous shocks to Caricom economies that the late President Dr Cheddi Jagan advocated over two decades ago the need for the setting up of a Regional Development Fund aimed at cushioning the effects of economic dislocations for the more vulnerable economies such as Guyana’s which are heavily dependent on expensive imported fuel and manufactured goods to drive its economic growth. Guyana, like so many other Caricom countries, still remains vulnerable to fluctuating prices for its main exports in particular sugar and rice which together constitute the largest employer of labour. The same is true of the market price for bauxite, gold and other minerals which can and do have an adverse effect on the economy and the thousands who depend on the sector for a living.
The challenge facing Caricom is to come up with innovative strategies on how to integrate the respective economies to benefit from natural and comparative advantages. There needs to be much greater intra-regional trade especially with respect to agricultural products such as rice, sugar and other non-traditional crops. The import bill for food continues to be staggeringly high which militates against those who depend on the farm for their living.
The above notwithstanding, there can be no doubt that Caricom has come a long way over the decades in significant ways even though the creation of a single market and economy and the free movement of skills remain elusive. There is still a fair amount of insularity and territorial self-interest which is inconsistent with the dream of our Caribbean people for a society where strength is derived from our diversity and our common historical and cultural bonds.
Yours faithfully,
Hydar Ally
