Regional Integration (SS)

• Regional Integration

  An agreement between many countries or groups to achieve unity
• Multi-lateral agreement

  An agreement among many countries or groups
• Multi-Lateral agreements An agreement between two countries or groups
• Major Stages in the integrated movement

  • The West Indies Federation (1958-1962)
  • CARIFTA (Caribbean Free Trade Association) (1968-1973)
  • CARICOM (Caribbean Community / Common Market) (1973)
  • CSME (Caribbean Single Market & Economy)
• The West Indies Federation

  • To strengthen the move for self governments
  • To promote economic development
• Countries that were part of the federation

  • Antigua
  • Barbados
  • Jamaica
  • Trinidad & Tobago
• Jamaica withdrew from the federation in 1961 following a referendum. Shortly after, Jamaica's withdrawal, Trinidad also withdrew. Eric Williams, the leader of the Trinidadian government at the time summed up the reason for their withdrawal in a statement that is now popular within the Caribbean: '1 from 10 equal 0.) (means Jamaica was one of the countries with the most resources in the federation, so if they withdrew it made no sense because to like a group without a head.)
• CARIFTA (Caribbean Free Trade Association)

  • To foster economic and social development through the establishment of free trade among members
• CARIFTA was an attempt to join the economies of these recently independent nations and to give them a stronger presence in international affairs. It also sought to increase balanced regional development by increasing trade between members and encouraging diversification of products and services and liberalization of trade. CARIFTA soon be came CARICOM come as we now know it.
• CARICOM (Caribbean Community / Common Market)

  • To improve economic development of members through free trade
  • To establish functional cooperation in areas such as health, education, intra-regional assistance, meteorological services, broadcasting and other areas
  • To establish common policies in dealing with non-members and overseas investors
• CSME (Caribbean Single Market & Economy) The CSME intended to strengthen trade and economy, following trade liberalisation and globalisation. CSME aims to coordinate member countries and monatary and fiscal quality, along with basic laws.
• Aims of the Single Market

  • Free movement of goods and services
  • Free movement of capital
  • Free movement of skilled labour
• Domestic Factors that promote Regional Integration

  • Common language
  • Common history
  • Small population
  • Common social issues
• Limitations to Regional Integration

  • Limited physical resources
  • Limited human resources
• Globalization

  The spread of products, technology, information and jobs across national borders
• Trade Liberalization

  The removal or reduction or reduction of restrictions or barriers on the free exchange of goods between
• Trading Blocs

  Groups of countries in specific regions that manage and promote trade activities
• Benefits of Regional Integration

  • Increased employment opportunities
  • Improved quality of life
  • Free movement of goods, labour & capital
• Free Trade 


  This is removing all barriers to trade so that goods and services can move about more freely. This increases production and employment.
• Free Movement of Goods and Services

  Achieved through measures such as eliminating all barriers to intraregional movement and harmonizing standards to ensure acceptability of goods and services traded
• Free movement of Capital

  Through measures such as eliminating foreign exchange controls, convertibility of currencies and the creation of an integrated capital market, such as a regional stock exchange.
• Free movement of skilled labour

  Achieved through measures such as removing all obstacles to the free movement of skills, labour and travel harmonizing social services like education, health.
• Common History

  •Caribbean countries were once colonized

  •Farming and tourism are main contributors to economic growth

  • Multi-racial population
• Small Population

  The region consists of small developing countries. This does not only imply to the land area but also the size of the population and the economy.
• Common Social Issues

  Crime,Teenage Pregnancy, Child Abuse

  Experiencing the same issues leads to a level of mutual understanding between countries of one another's situation and also encourages cooperation in dealing with them.
• Factors that hinder regional integration

  •Competition among Caribbean countries

  • Different Stages of Growth and Development

  • Conflict between local and regional demands
• Competitions among Caribbean countries

  Though Caribbean countries integrate to improve, there are many instances in which they compete against each other. Once there is competition, these countries will always be somewhat divided.
• Different stages of growth and development

  Some countries may be using a development strategy that was used by another country a long time ago because they are at different stages of growth. This will make it difficult for them to investigate.
• Conflict between local and regional demands

  The demands of the individual countries may be different from the demands of the region. There is likely to be a conflict surrounding country vs region.
• Role of Individual Citizens

  • Entrepreneurship
  • Supporting Regional Producers
  • Investing in Local and Regional Business
• Entrepreneurship

  Entrepreneurs are individuals who establish and run business ventures. All countries need such individuals because they are important producers of economic activity and depending on the kind of ventures they establish, are sometimes able to provide a number of employment opportunities.
• Supporting Regional Producers 


  In a globalised business environment individual citizens can choose to buy products and services from around the world. If Caribbean citizens deliberately choose to purchase from regional producers and services providers this will help these businesses to prosper and grow.
• Investing in Local and Regional Business

  Individual citizens can also choose to invest in local and regional businesses. Rules regarding the free movement of capital and the right to establish are intended to encourage such investment
• Role of Business Organisations in the Integration Process

  • Improving competitiveness
  • Improving choice and quality
  • Integrated operations
• Improving Competitiveness 


  Caribbean countries generally have a low level of productivity. This means that the amount of input or production costs, in capital and labour for example, does not generate a particularly high level of output. While governments and agencies can introduce policies that are favourable to businesses, it is the responsibility of each of those businesses to make sure that their operations are running efficiently and that they can be competitive.
• Improving choice and quality 


  Consumers do not make their choices solely on price and part of the process of competition between businesses is offering choice and quality. If regional producers are hoping to encourage local consumers to buy local products then they have to ensure that the quality and choice matches that offered by producers from outside the region.
• Integrated Operations 


  Pushing for, and contributing towards, the upgrading of regional infrastructures, especially regarding transport and communication.
• Role of Governments in the Integration Process

  • Harmonising Policies
  • Honouring Protocols
  • Educating Citizens
• Harmonising Policies 


  Governments also work together to harmonise policies with the aim of ensuring that no country is placed at a particular disadvantage nor receives any advantage. Harmonising trade policies seeks to stimulate economic activity and promote growth by making trade more straightforward and fairer, for example by the application of common tariff agreements.
• Honouring Protocols 


  Governments work cooperatively to devise policies that affect the region as a whole. For example, there are regional polices addressing the importance of the Caribbean Sea which recognises that this is a natural resource for the whole region. Such polices are usually found in documents known as agreements or conventions.