Regional Trade Interactions

Regional Integration

by Melissa Ayow

Challenges facing the Caribbean region

1. Small size/small national markets - small geographically and in population size. Small populations leads to fewer people contributing to the economy and to development. Limited production of goods also makes trading difficult.

​2. Lack of diversification - limited range of skills and types of goods being produced makes Caribbean vulnerable (emphasis only on tourism, trade in natural resources, agriculture and industry).

​3. Unemployment and underemployment

​4. Low levels of production and productivity - shortage of skilled workers, high unemployment/underemployment leads to emigration.

​5. Differences in resource distribution - some countries have more potential to make money than others.

Challenges facing the Caribbean region

6. High levels of indebtedness (Debt burden) - in the Caribbean, government debt equals around 70% of the region's gross domestic product (GDP) which is the total value of all of the finished goods and services produced within that economy during a specified period (year). Governments may borrow money to pay for natural disaster recovery or to offset the money they spend rather than earn. large scale borrowing makes it challenging to invest in education, health care, infrastructure and prevents countries from achieving developed status.

​7. High level and cost of imports and low value of exports - imports are higher than exports, therefore we spend more money on trade than we earn.

Challenges facing the Caribbean region

8. Inadequate technology - low investments in advanced technology as compared to developed countries.

​9. Difficulty accessing international markets - link to globalization

​10. Shortage of capital.

​11. Vulnerability to natural disasters.

Poll

High Levels and cost of imports

• Social Challengs

• Trade/Economic Challenge

• Natural Challenge

Multiple Select

Vulnerability to Natural Disaster

• Social

• Trade/Economic

• Natural

Multiple Select

High levels of debt and unemployment

• Trade/Economic

• Social

• Natural

​Group Work

​In groups of TWO work to solve how regional integrative efforts can address ONE of the following challenges facing the Caribbean.

​

Food insecurity, heavy import bills, natural disasters/preparation for disaster.

​

Define the concept you have chosen and highlight how and why it is a challenge for the region. State examples of this challenge using Caribbean countries and statistical data. State at least THREE solutions to the issue and why each measure will be successful. Include videos, pictures, charts of graphs to enhance your presentation.

​Factors that hinder regional integration

​(a) geography of region;

(b) absence of common model or strategy for development;

(c) differences in stages of growth and development;

(d) competition for location of industries;

(e) conflict between territorial and regional demands and loyalties (insularity);

(f) absence of common currency;

(g) unequal distribution of resources;

(h) lack of diversification in production;

(i) influence of multinational corporations.

National interests vs Regional interests.

Open Ended

One of the factors that has hindered regional cooperation is the differences in the stages of growth and development of CARICOM Member States. List THREE factors which are likely to continue to affect the growth and development of CARICOM countries.

​The factors are:

• ​high levels of unemployment

• ​shortage of money for investment

• ​difficulties accessing extra-regional markets for exports

• ​shortage of skilled personnel

• ​recruitment of skilled workers by foreign countries

• ​devaluation of domestic currencies (e.g. Guyana and Jamaica)

• ​inability to produce a wide variety of products to replace sugar and bananas