UNITED STATES FIDDLES WHILE CARIBBEAN BURNS

Government’s plan to assist several Caribbean countries whose economic, structures have been savaged by hurricane Ivan should be expanded to embrace, where practicable, the ideas of an earlier Caribbean rescue initiative — the Caribbean Aid Project — which had been conceptualised by late Prime Minister Dr Eric Williams. What should be understood clearly is that the rebuilding of Caribbean countries adversely affected by hurricane Ivan, will not merely be of benefit to them but to Trinidad and Tobago as well. CARICOM is this country’s second largest export market after the United States of America and a pronounced and drawn out slide in Grenada and CARICOM’s ability to import TT goods and services will lead, ultimately, to a rise in unemployment levels here.

In turn, should there be a massive undocumented influx, for example, of Grenadians fleeing the economic downturn in their country, as happened in the mid-1990s, when Guyana’s economy was sliding, then there will be a downward pressure on relative Trinidad and Tobago employment and wage levels. Meanwhile, as Newsday’s Business Day magazine pointed out in its Editorial of Thursday, September 16, any move by Grenadian skilled workers to seek refugee status here “would lead to a loss to Grenada of valuable human resource capital needed greatly at this time.” The Editorial also stressed that the remaining in Grenada of that human resource capital was crucial to the rebuilding of that country. And while it might be beneficial to Trinidad and Tobago in the short term, it would slow down if not stunt the redevelopment of Grenada and adversely affect its ability to import goods and services.

Prime Minister Patrick Manning has announced a $30 million economic aid package for Grenada, Jamaica, Cuba, St Vincent and the Grenadines and the Bahamas. In addition, the Manning Plan includes a $300 million oil facility — in any one year — for the provision of economic relief to CARICOM States as a result of the current and persistent high international prices for crude. The commitment is inferred by the former UNC government’s write off in 1998 et sequitur of approximately $4 billion of the debt which Guyana had owed to Trinidad and Tobago. The debt had been accumulated over a period of a little more than two decades and had its genesis in the provision by this country of an initial $120 million following a request by Guyana’s Government for balance of payment and budgetary aid support.

Had the UNC secured the $4 billion instead of writing it off (and of course had Guyana been able to pay it) and the money placed in the highest yielding fund of the Trinidad and Tobago Unit Trust Corporation it would probably be worth in excess of $8 billion today. Its annual yield of some $2 billion would have “gone a long way,” to use a cliche, in the assisting of CARICOM countries today. I had spoken earlier of the Caribbean Aid Project (Caribbean Aid Consortium). Late Prime Minister Dr Eric Williams had proposed in 1977 to the then United States Administration the establishment of a Caribbean Aid Consortium, as a result of “the deterioration of the Caribbean economies” which had accelerated that year. The United States, which has always been quick to invoke the infamous Roosevelt Corollary of the Monroe Doctrine under which it reserved the “right” ro intervene militarily and otherwise in the affairs of Latin American (and later English speaking States), rejected the proposal to intervene to help this country assist CARICOM economically.

Instead, it cynically put to Trinidad and Tobago, as Dr Williams, who was also Minister of Finance, would reveal in his 1978 Budget Speech on December 2, 1977, that this country should take “financial and ideological leadership” in arranging the Aid Consortium. Any question of this country, an economic peewat in comparison to the US, taking “financial and ideological leadership” in the Caribbean which was then and still is regarded as coming under the Monroe Doctrine and, ipso facto, the US sphere of influence, was pointedly absurd. But it should be understood that Dr Williams had emerged in the 1970s both as the most influential Caribbean Prime Minister and as the premier Caribbean Statesman. It should be added also that Trinidad and Tobago was in a position to exert the most influence politically, because of the leverage afforded it by the sudden and large increases in international crude prices, increases dictated by OPEC.

Today, Patrick Manning has emerged, as Williams had in the 1970s, as the most influential Caribbean Prime Minister and the premier Caribbean Statesman. But with the attitude of the United States to Cuba, it is not difficult to see that the Bush Administration would have taken exception both to his declared TT$3 million aid package to Cuba (the Americans offered Cuba US$50,000 following on damage by an earlier hurricane) as well as to his having gone to Cuba recently for a pace-maker implant! Prime Minister PJ Paterson of Jamaica has sought international help for his hurricane battered nation and has spoken to United Nations Secretary-General, Kofi Annan. In turn, Trinidad and Tobago’s Prime Minister, Patrick Manning, who this week will be attending the 59th Assembly of the United Nations, has spoken with Annan with respect to relief to Grenada. The two Caribbean leaders hope to internationalise what after all is a joint Caribbean tragedy.

The United States is fiddling while the Caribbean, battered and bruised by one of the worst hurricanes ever to hit the archipelago, struggles to get on its proverbial feet. If the truth be told, I would not be in anyway surprised if the Bush Administration should indicate to Trinidad and Tobago that the Caribbean is its responsibility, of course short of the power the US has arrogated to itself by its 1904 “big stick” Roosevelt Corollary of the Monroe Doctrine. And in this context tell Mr Manning as it told Dr Williams 27 years ago that Trinidad and Tobago should take on the “financial and ideological leadership” in organising economic aid to the Caribbean, whether it be in the form of “balance of payment support, budgetary aid support,” reconstruction support or what have you.