The talk of economic integration and the creation of a single market and economy for all CARICOM member states should be followed by robust implementation, according to the new Chair of the Caribbean Community (CARICOM) Prime Minister of Belize, John Antonio Briceño.
Briceño made the call yesterday at the opening of the 33rd inter-sessional meeting of CARICOM heads in San Pedro, Belize.
Providing statistics on the current state of the region, the Prime Minister in his maiden address as Chair, expressed that the community is battling one of the worst economic recessions in modern history. He explained that in 2020 most countries saw a double-digit economic contraction while thousands became unemployed.
“…remittances dried up. In Belize we estimate that the poverty rate has increased from 50% in 2018 to 60% in 2021 — two-thirds of all Belizeans are poor. That is clearly unacceptable. No doubt, similar circumstances obtain across the region. The robust economic recovery that appeared to be at hand in the first part of 2021 is now slowing,” he said.
Making his case for a more robust implementation for the CSME arrangement, Briceño informed that in August 2021 the Economic Commission for Latin America and the Caribbean (ECLAC) pegged regional growth at 4.1% for the year but by January 2022 that was revised to 3% and a further to 1.2% excluding Guyana.
For 2022, ECLAC has already revised downward its projections for the Caribbean from 7.8% to 6.1%.
“In addition to these circumstances, many of us are carrying unsustainable debt loads and have limited fiscal space to mount the necessary economic response. Unfortunately, only four CARICOM Member States are participating in the IMF’s Debt Service Suspension Initiative.
“And in 2020 only five Member States, including Haiti, received concessional financing from the World Bank. This is wrong. It is also unjust. While it is imperative that we continue to press our case, which is fair and just; we know from experience that the wheels of international cooperation grind slowly and we cannot afford to lose further ground; we cannot afford to lose our future. Therefore, we must be more strategic and coordinated in our advocacy. We must demand an immediate reform of the international financial system,” he said.
He noted that the CSME is at the centre of the region’s integration and is the answer to the questions of reduction of the region’s food import bill and the generation of economic growth.
“Reflecting on our undertakings in the St Ann Declaration of 2018, we need to re-double our efforts to complete the removal of the remaining barriers to intra-regional trade, empower our private sector and give full effect to the regime for free movement, including by addressing administrative obstacles.
“How do we improve and benefit more from trade with extra regional partners? A robust CSME is indispensable to building resilient economies; it is central to our economic recovery. Integration binds together our Community, and this Community is at its core family,” the Prime Minister said.
He further explained that the region’s recovery should be aligned to a new regional agenda that is centred on creating prosperity for its people. He added that such a step would include digital transformation, transformation of agri-food systems and empowering the CSME to deliver on its objectives.
Briceño told the conference that some of the elements of a new regional agenda are taking shape and are being fueled by the changes brought about by the COVID pandemic. He pointed to the integration of digital technologies into economic, social and governance structures while calling for the expansion and acceleration of this effort together with investments to increase connectivity, ICT education and to guard against cybercrime.
Operationalizing CSME
Outgoing Chair, Prime Minister of Antigua and Barbuda Gaston Browne urged the leaders to be vigilant in managing the threats of de-risking, the proposed global minimum corporation tax and sanction-listing of so-called uncooperative jurisdictions by the Organisation for Economic Co-operation and Development (OECD) and European Union.
He noted that diversification and rapid economic expansion through digitalization require widespread enhancement of the region’s ICT infrastructure adding that the cost of telecommunications and access to cheaper and more efficient broadband is quintessential for robust economic growth and development.
“These and other realities should encourage us to move more urgently with the implementation of the CARICOM Single Market and Economy (CSME). We can no longer afford the luxury of delaying approval of key instruments such as the Financial Services Agreement, Investment Policy, Incentive Regimes and the Development and Regulation of a Regional Securities Market.
“The full operationalization of the CSME is required for the transformation of our economies and to fight for a robust post COVID recovery. CARICOM needs to be able to shift gears and close its project implementation gaps, to ensure the full operationalization of the CSME,” he opined.
Food security
The new Chair also used his time to commend Guyana’s President Irfaan Ali for his leadership commitment to transforming the regional agri-food system.
“The Special Ministerial Task Force on Food Production and Food Security has already made substantial progress to identify priority commodities, levels of investment required, and policy reforms needed against a timeline,” the Belizean Prime Minister said.
Adding to the commendation of Guyana’s leadership in addressing the region’s food import bill was outgoing Chair Browne. He said that decisions were taken to allow the region to give priority to agriculture and tourism in its COVID-19 recovery strategy citing the impact of the pandemic on those sectors.
“It is a truism that no community of nations could be considered great if it cannot feed itself. Food and Nutrition Security is an achievable goal and I look forward to the recommendations on the urgent implementation of the plan from the Ministerial Task Force, which is chaired by the distinguished President of Guyana,” he said.
Prime Minister Browne added “As we produce and consume more regional products, we must commit to joint action, to develop reliable logistics and sustainable transportation to move goods and people within the region. This necessitates increased commitment and joint action among member states, to facilitate a fully functional integration movement.”
He further stated that the nutrition element is also vital as the region continues to battle against non-communicable diseases.
