Caricom must stay in the game

Government will need to step up its financial assistance to other Caricom countries, if it wants to encourage and sustain regional economic growth. One just has to look at the turmoil caused by hurricanes and WTO rulings that threaten to topple them. These small island states  could easily fall prey to external  initiatives such as Petro Caribe orchestrated by Hugo Chavez. Already, Prime Minister Patrick Manning, has promised in his 2005/2006 Budget Speech, to maintain the year old Petroleum Fund at $300 million a fund “directed to poverty alleviation and disaster recovery efforts.” Aid from TT to Caricom is not without benefits. Any economic assistance that strengthens their economies,  creates  new employment opportunities and adds to their GDP and job growth, will better position them to purchase this country’s manufactured goods and other products.

The financial assistance has  moved from the balance of payments aid to Jamaica in the 1970s, with its “guarantees of commodity trade” and similar aid to Guyana, to today’s declared emphasis on poverty alleviation and disaster recovery efforts. Moreover, Government’s efforts at strengthening regional economies of our less fortunate  Caricom neighbours, have been complemented by the TT private sector through the injection of billions of dollars in investments since the 1990s. So that even as TT seeks to develop their infrastructure and economic growth, the private sector has stepped in to further develop the islands by way of loans and to create job oppportunities through setting up and  investing in existing businesses or the outright purchase of enterprises in Caricom member states.

Still, while  the private sector here continues to invest in Caricom,  Government needs to do much more in the context of economic aid —  whether it is balance of payments assistance, poverty alleviation or recovery efforts — if Caricom is to continue to be our  second largest market after that of the US. Instead of dwelling on the negatives of globalisation, although it would be foolhardy to completely ignore them, we need to develop strategic initiatives in 2006 to help move Caricom forward, economically and socially. While it is true that energy will continue to propel our economy, our manufacturers  need Caricom’s support to survive.