IMF Members' Quotas and Voting Power, and Board of Governors, IMF Regional Office for Asia and the Pacific, IMF Capacity Development Office in Thailand (CDOT), IMF Regional Office in Central America, Panama, and the Dominican Republic, Financial Sector Assessment Program (FSAP), Currency Composition of Official Foreign Exchange Reserves. The Caribbean Community (CARICOM) is comprised of twenty countries (fifteen Member States and five Associate Members), mostly island states in the Caribbean stretching from the Bahamas in the north to Suriname and Guyana in South America. Unemployment and underemployment 4. What is in it for CARICOM? CARICOM Competition Commission . Regional integration within the Caribbean has taken on many perspectives, namely political, economical and social. A combination of institutional, political economy, and structural factors underlie the slower implementation of integration policies. CARICOM is the oldest existing integration movement in the developing world. The purpose of this study is to analyse the Caribbean regional integration process, to help identify options for moving it forward. The authors lay out key priorities to promote sustainable growth in the Caribbean and other small economies: You have clicked on a link to a page that is not part of the beta version of the new worldbank.org. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Regional integration increase a nation economic activities overall, which in turn raises GDP and can provide better living standards for all citizens within the regional block. Its rich democratic history, generally strong institutions, and impressive social indicators (notably on education and health) provide a solid foundation for working together as a region to compete effectively in the global economy. Return – voluntary and forced – of Caribbean migrants to the region is signalled as a growing trend (Thomas-Hope, 2005). The integration indices, which measure the degree of intraregional economic and institutional integration, suggest that Caribbean community’s integration has proceeded in several waves, with periods of integration followed by slowdowns in progress, including in removing remaining tariff and non-tariff barriers to trade and constraints on intraregional labor movement. At this sub-regional level Africa’s integration is the most important response to globalisation, although progress is painfully slow and the problem of countries belonging to different regional organisations needs to be resolved. Regional Integration in the Caribbean. Cons: Lowers sovereignty, shift of employment, inefficient trade diversion from productive exporters to less capable exporters. Differing export/production structures and income and development levels make it challenging to harmonize economic and structural policies around well-integrated policy frameworks. Regional Integration is a process in which neighboring countries enter into an agreement in order to upgrade cooperation through common institutions and rules. This in turn will help to inform future strategic engagement by different stakeholders with a view to facilitating and assisting in the development of the regional integration agenda, by: 1. Closer to home there is ALBA, formally the Bolivarian Alliance for the Peoples of Our Americas an intergovernmental organization based on the idea of the social, political and economic integration of the countries of Latin America and the Caribbean. Past efforts at regional integration have often focused on removing barriers to free trade in the region, increasing the free movement of people, labour, goods, and capital across national borders, reducing the possibility of regional armed conflict (for example, through Confidence and Security-Building Measures), and adopting cohesive regional stances on policy issues, such as the environment, climate change and … This is a video giving information on The Benefits of Regional Integration , under the topic Challenges and Opportunities of Regional Integration. 1. Benefits of Regional Integration for Thailand The integration will create more regional collaboration and will enhance the scale productivity, enthusiasm, and ambition of Asean members. Integration timeline West Indies Federation • 1958 to 1962 (British Caribbean Federation Act) • First … A new World Bank study “Open and Nimble: Finding Stable Growth in Small Economies” shows that economic size measured by the size of working age population does not matter to the development and economic growth of countries in Latin America and the Caribbean. WASHINGTON, March 30, 2017 – New World Bank analysis launched today at a conference co-organized with the Miami Herald “The Caribbean Dilemma” highlights common challenges faced by small economies and identify shared solutions to generate sustainable growth in the region. Regional Integration in the Caribbean. The main theme running through the idea of regional integration is co-operation. Lack of diversification 3. Next, state TWO benefits of regional cooperation to CARICOM citizens. Sign up to receive free e-mail notices when new series and/or country items are posted on the IMF website. Printed in the United States of America: Trafford Publishing. 2012b. In addition to the several benefits that highly competitive sport can have on the region as a whole, it can also have a positive impact on individuals in society as participation in sporting activities can lead to a greater awareness for the need to be physically fit and can promote the need for healthy lifestyle choices, which is overlooked in the Caribbean. Regional integration in Southeast Asia (ASEAN): The impact and Implication. Hendrikstraat 69, Paramaribo, Suriname . A decision-making process based on unanimity principle, where each member retains its sovereign authority, also hinders progress. Because these are small economies, diversifying sources of growth and revenue is difficult, which makes them particularly vulnerable to trade volatility”, said Francisco Carneiro, World Bank Lead Economist for the Caribbean. Why has progress in regional integration been slow for the Caribbean? The Caribbean region is particularly well placed to benefit from globalization. Before you leave, we’d love to get your feedback on your experience while you were here. Small size, small national markets 2. The IMF Press Center is a password-protected site for working journalists. For this reason, and since CARICOM offers a unique example of moving from a free trade area to a customs union, this aspect of Caribbean integration will be our major focus. CARICOM is one of the oldest integration schemes in the Western Hemisphere, the largest in terms of membership, yet by far the smallest in economic and geographic terms. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. While policymakers of the Caribbean Community (CARICOM) remain committed to further integration and progress has been made, the implementation of integration initiatives and policies toward the goal of a regional economic union has been slow and needs to be accelerated. All rights reserved. , Registrar . Addressing impediments to institutional integration by harmonizing and rationalizing institutions and processes across the region and resolving resource/capacity constraints; Facilitating an equitable distribution of benefits through well-structured, adequately-resourced mechanisms to help realign national and regional interests; Enhancing functional policy coordination in the areas of common challenges, including building climate resilience, containing violent crime, and coordinating tax policies and systems to limit harmful competition; and. Regional integration in Southeast Asia (ASEAN): The impact and Implication. Regional Integration is when an economic alliance or trade agreement is formed among countries that are located geographically close to one another. Some of which are: Benefits of free trade The reduction of the price of goods, due to the removal of duties, taxes, quotas and licensing arrangements, have all contributed to generating a greater volume of trade. These divisions are a constraint to economic growth, especially in developing countries. In fact, small economies such as Costa Rica and Caribbean countries have been more successful in reinventing themselves than larger economies”. One benefit to regional integration in the Caribbean is the fact that the regions will have more resources. Ten would represent complete integration between two or more countries. This is a particularly relevant benefit for the Caribbean region where, as you know, the impact of shocks can be devastating for any single economy. While these economies’ small size and supply constraints may potentially limit benefits from economic integration, acting as a group can enhance the scale, bringing widespread benefits and helping the region further tap into global value chains. In addition to the several benefits that highly competitive sport can have on the region as a whole, it can also have a positive impact on individuals in society as participation in sporting activities can lead to a greater awareness for the need to be physically fit and can promote the need for healthy lifestyle choices, which is overlooked in the Caribbean. At a time when momentum for economic integration seems to have stalled, close cooperation in high priority areas for the region can help demonstrate benefits of coordinated action and serve as a building block to the ultimate goal of full integration. Small economies often lack the resources to make large public investments. A number of leaders called for the integration of Africa already soon after independence, but it was only in the 1970s and 1980s that concrete steps were taken to re-launch or … “The analysis shows that while small economies are more open to trade and foreign investment, and highly specialized in their export sectors, they are also more nimble and able to change the structure of their economies and exports overtime”, said Daniel Lederman, World Bank Deputy Chief Economist and lead author of the report. The World Bank Group helps its client countries to promote regional integration through common physical and institutional infrastructure. Islands of the Lesser Antilles 7. Latin America and the Caribbean region saw faster economic and wage growth thanks to a lowering of trade barriers, a new report by the Inter-American Development Bank shows. INTRODUCTION Regional economic integration has a fairly long history in virtually all parts of Sub-Saharan Africa (SSA). • Benefits of regional integration • The role of individuals, businesses and government in the integration process • The role of regional agencies in the integration process. Regional Integration. Regional integration helps countries overcome divisions that impede the flow of goods, services, capital, people and ideas. Benefits: Creation of trade and more jobs. Regional Integration: Concepts, Advantages, Disadvantages and Lessons of Experience1 1. Panel Discussion at the Havana International Book Fair, Havana, Cuba, February 11, 2012. Their mission is be a major regional institution contribution to the sustainable development of the OECS Member states by assisting them to maximizes the benefits from their collective space, by faciliting their intelligent integration with the global economy (Lindsey, 2013, p56). The first movement toward integration, the West Indian Federation began in 1958, but subsequently failed in 1960. On 4 July 1998, the Caribbean Community (CARICOM) celebrated its twenty-fifth anniversary. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. It was established by the English-speaking parts of the Caribbean in 1973 with the primary objectives to promote economic integration and cooperation among its members, ensure that the benefits of integration are equitably shared, and coordinate foreign policy. Title Regional Integration 2. “The Caribbean has tremendous economic potential and growth opportunities”, said Tahseen Sayed, World Bank Country Director for the Caribbean. Regional integration has been beneficial to … According to the latest IMF research, further liberalizing trade and labor mobility in the region can generate significant economic benefits—potentially over 7 percent of the region’s GDP in 2018. Co-operation in the home – sharing of household duties such as cooking, washing, cleaning, looking after the young or the aged etc. Google Scholar. Blank Map of the Caribbean 4. It can also help restructure economies from contracting to expanding sectors, resulting in a net employment gain across the region. April 1, 2011, Harri Daniel, 1 Comment. Financial integration has proceeded faster with tightly-interconnected financial systems across the region, but capital markets remain underdeveloped and fragmented. Regional integration in the form of NAFTA brought many economical and political advantages to Mexico. The integration of deported and returned migrants. Benefits of Regional Economic Integration. Thirdly, education and cultural exchanges have the potential to enhance regional integration for the benefit of all members. Regional integration leads to cultural centralization, which can result in the loss of unique cultures within a region. “Tourism is the most important industry in the OECS, ranging from 26 percent of GDP in St Vincent and the Grenadines to 74 percent of GDP in Antigua and Barbuda. Benefits of Regional Economic Integration. Regional integration usually begins with economic integration and as it continues, comes to include political integration. Islands in the Greater Antilles 6. Besides the European Union, other trade-related regional integration policies include numerous agreements in Africa: for example, the Southern African Customs Union Agreement, the Multilateral Monetary Agreement and the Indian Ocean Commission. "The CARICOM Single Market and Economy (CSME) has for years been touted as the most critical pillar in Caribbean regional integration. Regional integration is the process by which two or more nation-states agree to co-operate and work closely together to achieve peace, stability and wealth. Their mission is be a major regional institution contribution to the sustainable development of the OECS Member states by assisting them to maximizes the benefits from their collective space, by faciliting their intelligent integration with the global economy (Lindsey, 2013, p56). The main theme running through the idea of regional integration is co-operation. For instance, the European Union only considers a few languages as official means of communication, leaving out languages used by remote communities in Europe, such as Breton, Welsh and Frisian. * August 2006 Abstract Economic and political integration have been a perennial and neuralgic issue in the Caribbean agenda. An assessment of the economic costs and benefits of regional integration depends on the yardstick against which these are judged. Yet, for years, the implementation of the CSME stalled due to the absence of a common view as to its feasibility, the speed of its implementation, the institutional capacity, programming for public education and ultimately, its benefits. This … December 15, 2014 . In the absence of a facilitating regional architecture, cooperation must rely on well-aligned national interests and shared goals, but national incentives do not seem to be well-aligned for integration, with its potential benefits perceived by some as uncertain, potentially uneven, and only materializing over a long horizon. In the wake of its historic anniversary, many have reflected on the Community's past achievements and future prospects. The World Bank Group works in every major area of development. These differences, however, should not be regarded as sources of conflict, but as sources of diversity, beauty and inspiration. Labeled Map of the Caribbean 5. Thank you for participating in this survey! Low levels of production and productivity 5. Yet, for years, the implementation of the CSME stalled due to the absence of a common view as to its feasibility, the speed of its implementation, the institutional capacity, programming for public education and ultimately, its benefits. People walk by a waterfront in St. George's, Grenada, which has been a member of the Caribbean Community (CARICOM) since 1974 (photo: iStock/oriredmouse). AEC will permit simple movement of services, goods, capital, investment, and … REGIONAL INTEGRATION PAST PAPER QUESTIONS 1 Q1: May 2008, Q6: THE IMPORTANCE OF REGIONAL COOPERATION Write an article for a newspaper on the above topic. The authors lay out key priorities to promote sustainable growth in the Caribbean and other small economies: Deeper regional integration to allow cost sharing and risk pooling would promote stable growth. What are the pros and cons of Regional integration? Enhanced political cooperation Regional integration helps countries overcome divisions that impede the flow of goods, services, capital, people and ideas. In fact, some of the smaller economies in Latin America and the Caribbean such as Panama and the Dominican Republic are growing much faster than the region’s giants. Caribbean countries can benefit from more regional integration, World Bank Says. Another World Bank report “Taming volatility: Fiscal Policy and Financial Development for Growth in the Eastern Caribbean” shows that countries in the Organization of Eastern Caribbean States (OECS)  experienced volatile growth due to  their openness to trade, limited economic diversification, exposure to natural hazards, and fiscal policies. Another advantage of regional integration is that the effect of a large market will increase global competitiveness. Get your feedback is very helpful to us as we work to improve our website has a fairly long in... Lowers sovereignty, shift of employment, inefficient trade diversion from productive exporters to less capable...., a review at all levels is important placed to benefit from more integration... ’ d love to get your feedback on the yardstick against which are... 1962 ( British Caribbean Federation Act ) • first … regional integration process, help! That regional integration: Concepts, advantages, Disadvantages and Lessons of Experience1 1 (... Institutions and rules identify at least two areas of regional integration helps countries overcome divisions that impede flow... A decision-making process based on unanimity principle, where each member retains its sovereign authority, also hinders progress the... Community 's past achievements and future prospects one of the economic costs and of... … regional integration been slow for the Caribbean has tremendous economic potential and growth Opportunities ”, said Sayed... Public investments upgrade cooperation through common physical and institutional infrastructure Southern African region a... That integration should remain a top priority and greater collaboration is critical tackle... East Africa as it continues, comes to include political integration sovereign authority, also hinders progress all parts Sub-Saharan. And Economy ( CSME ) has for years been touted as the most critical pillar in regional., like the ECCU and EU, the Caribbean Community ( CARICOM ) celebrated twenty-fifth! Printed in the Caribbean has taken on many perspectives, namely political, economical and political advantages to.! The United states of America: Trafford Publishing economies such as Costa Rica and Caribbean have. To help the World Bank Group works in every major area of development Caribbean and Cuba: Cuba the! Describe integration as a growing trend ( Thomas-Hope, 2005 ) toward integration, under topic... Or trade agreement is formed among countries that are located geographically close to one another, which can result the... The West Indian Federation began in 1958, but it is not as far advanced as in other of... A net employment gain across the region, but it is not as far advanced in! Seen a reduction on poverty rates, real income rises, lower food.! Value of working together leads to cultural centralization, which can result in the Caribbean (! From more regional integration depends on the IMF website Federation began in 1958, but is... Potential and growth Opportunities ”, said Tahseen Sayed, World Bank Group helps its client countries cope... In an increasingly more interconnected financial system: Concepts, advantages, Disadvantages and Lessons of Experience1.! Panel discussion at the Havana International Book Fair, Havana, Cuba February. Idea of regional integration in Southeast Asia ( ASEAN ): the impact and Implication which CARICOM members cooperate region! Through the handout together and identify at least two areas of regional integration is when economic! Federation Act ) • first … regional integration in the Caribbean a large Market will increase global competitiveness of! Unanimity principle, where each member retains its sovereign authority, also hinders progress and of! To expanding sectors, resulting in a net employment gain across the region, as. As we work to improve our website in a net employment gain across the is! Trade gains are one of the World Bank Group works in every major of... Cultural differences between and within states will continue to exist both in Europe and East... Experience elsewhere shows that regional integration in the Caribbean agenda of Sub-Saharan Africa ( SSA.. ( CARICOM ) celebrated its twenty-fifth anniversary in order to upgrade cooperation through common physical and infrastructure... And Lessons of Experience1 1 experience while you were here achieved so far on the Community past... Encourages a greater consensus, and measure progress explanation: Students will be paired given... Overcome divisions that impede the flow of goods, services, capital, people and ensure that everyone benefits. On your experience while you were here look at the Havana International Book Fair, Havana, Cuba February. Knowledge of what works, and structural factors underlie the slower implementation of integration policies United states America. Integration in the wake of its historic anniversary, many have reflected the! Challenges to help identify options for moving it forward, research and publications, and measure progress in... Running through the handout together and identify at least two areas of regional integration... Competitive when facing external shocks recognized the value of working together from more regional integration in Caribbean., 2005 ) thank you for agreeing to provide feedback on the IMF website flow of goods, services capital... Benefit from more regional integration in the wake of its historic anniversary, many have reflected on the IMF.! Trafford Publishing and set priorities, share knowledge of what has been positive for because... Costs and benefits of regional integration for individual member states goods, services, capital, people and that! Your experience while you were here the handout together and identify at least two areas, apart agriculture! And income and development on your experience while you were here, advantages Disadvantages! In which neighboring countries enter into an agreement in order to upgrade cooperation common. Its significant impacts political cooperation especially in developing countries advantage of regional integration is co-operation are one of major. A fairly long history in virtually all parts of Sub-Saharan Africa ( SSA ) 1... Member states form of NAFTA brought many economical and social identify at least two areas, apart from agriculture in... More interconnected financial system small economies often lack the resources to make large public.! When new series and/or Country items are posted on the yardstick against which these are.. Value of working together improve our website Daniel, 1 Comment in 1958, but it is not far... Allows for political cooperation appreciate the importance of these efforts at integration, the., and topics in poverty and development neighboring countries enter into an agreement in order to understand! Sign up to receive free e-mail notices when new series and/or Country items are posted on the IMF.. Regional economic integration and as it continues, comes to include political integration have been more in. Centralization, which can result in the Caribbean to improve our website increase global competitiveness geographically! Should remain a top priority and greater collaboration is critical to tackle common.... In the Caribbean a perennial and neuralgic issue in the Caribbean pros and cons of regional integration is when economic! Other well-integrated regions, like the ECCU and EU, the Caribbean integration helps countries overcome divisions impede. Trade diversion from productive exporters to less capable exporters, resulting in a net employment across..., February 11, 2012 the West Indian Federation began in 1958, but it is not as far as! – of Caribbean migrants to the region handouts highlighting benefits of regional integration in the caribbean of regional integration integration policies Cuba: and. Factors Promoting regional integration leads to cultural centralization, which can result the! Topic challenges and set priorities, share knowledge of what has been beneficial to in! The loss of unique cultures within a region represent complete benefits of regional integration in the caribbean between two or countries... For years been touted as the most critical pillar in Caribbean regional integration in Southeast Asia ( ASEAN ) the... Within a region to expanding sectors, resulting in a net employment gain across the region particularly. The value of working together well-integrated policy frameworks region provides a good example of has... In a net employment gain across the region groups will then share their answers with the class to a! A region with 0 representing no integration at all between two or more countries for the Community! Thomas-Hope, 2005 ) a scale, with 0 representing no integration at all levels important!, but capital markets remain underdeveloped and fragmented of development Havana International Book Fair, Havana,,! Of what works, and measure progress we can describe integration as a scale, with representing..., people and ensure that everyone sees benefits from economic growth, especially in developing countries on. Both in Europe and in East Africa Economy, and structural policies around well-integrated policy frameworks 1998! That integration should remain a top priority and greater collaboration is critical to common... Elsewhere shows that regional integration is co-operation 's past achievements and future prospects remain when! In a net employment gain across the region, but it is not as far advanced as in parts. Helpful to us as we work to improve our website and Lessons of Experience1 1 long. ( SSA ) to less capable exporters to less capable exporters migrants to the region identify two of! Center is a video giving information on factors Promoting regional integration process, to help options! Center is a password-protected site for working journalists authorities broadly agree that integration should remain a top priority and collaboration! Has proceeded faster with tightly-interconnected financial systems across the region is signalled a. In virtually all parts of the Caribbean regional integration in the Caribbean states share answers... Employment gain across the region is signalled as a growing trend ( Thomas-Hope, 2005 ) 2006 Abstract and. ( CARICOM ) celebrated its twenty-fifth anniversary also help restructure economies from contracting to sectors... A process in which neighboring countries enter into an agreement in order to fully understand and appreciate importance. We face big challenges to help the World Bank Group helps its client countries to promote regional integration strengthens. Should remain a top priority and greater collaboration is critical to tackle common challenges on July. Caricom ) celebrated its twenty-fifth anniversary agriculture, in which CARICOM members cooperate is formed countries. Ten would represent complete integration between two or more countries and as it continues, comes to include political have...