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THE CARIBBEAN COMMUNITY(CARICOM

THE CARIBBEAN COMMUNITY(CARICOM. REGIONAL INTEGRATION AND PRODUCTIVE AND INDUSTRIAL DEVELOPMENT. CARICOM MEMBER STATES. ANTIGUA AND BARBUDA BAHAMAS BARBADOS BELIZE DOMINICA GRENADA GUYANA HAITI JAMAICA MONTSERRAT ST. KITTS AND NEVIS ST. LUCIA ST. VINCENT AND THE GRENADINES

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THE CARIBBEAN COMMUNITY(CARICOM

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  1. THE CARIBBEAN COMMUNITY(CARICOM REGIONAL INTEGRATION AND PRODUCTIVE AND INDUSTRIAL DEVELOPMENT

  2. CARICOM MEMBER STATES • ANTIGUA AND BARBUDA • BAHAMAS • BARBADOS • BELIZE • DOMINICA • GRENADA • GUYANA • HAITI • JAMAICA • MONTSERRAT • ST. KITTS AND NEVIS • ST. LUCIA • ST. VINCENT AND THE GRENADINES • SURINAME • TRINIDAD AND TOBAGO

  3. CARICOM SINGLE MARKET AND ECONOMY (CSME) MEMBER STATES • ANTIGUA AND BARBUDA • BARBADOS • BELIZE • DOMINICA • GRENADA • GUYANA • JAMAICA • ST. KITTS AND NEVIS • ST. LUCIA • ST. VINCENT AND THE GRENADINES • SURINAME • TRINIDAD AND TOBAGO

  4. NEED FOR ECONOMIC TRANSFORMATION • CARICOM States described as low growth, high debt economies • Over last 4 years (2009-2012), CARICOM growth has averaged less than 2% and projection for 2013 – 2.3% is lower than Latin America and the world as a whole • CARICOM debt to GDP ratios at over 60% for majority of States - clearly unsustainable • Growth of merchandise exports is at around 8% - lagging behind the world average of 11% • Major issue – how to transform CARICOM economies into high growth , competitive , globally integrated economic space

  5. INTEGRATION FRAMEWORKSTRATEGIC FRAMEWORK FOR INTEGRATION IN CARICOM IS THE CSME THE CARICOM SINGLE MARKET AND ECONOMY (CSME) –is an enlarged economic space for competitive production based on free movement of factors including • FREE MOVEMENT OF SKILLS NATIONALS • FREE MOVEMENT OF GOODS • FREE MOVEMENT OF CAPITAL • FREE MOVEMENT OF SERVICES • – an enlarged economic space for competitive production based on free movement of factors.

  6. SUPPORTING INSTRUMENTS OF THE CSME : • CARICOM Investment Code (CIC) • CARICOM Financial Services Agreement (CFSA) • Intra-CARICOM Double Taxation Agreement (ICDTA) • Investment Incentives Agreement (IIA) • CARICOM Securities Market Law (CSML) • Industrial Development Policy • Harmonised Model Legislation for SMEs • Related Initiatives

  7. THE INDUSTRIAL DEVELOPMENT CHALLENGE • FINANCING – THE ACHILLES HEEL • LIMITED ACCESS TO DONOR FINANCED PROGRAMMES • HIGH COST OF FINANCING, ONEROUS LOAN APPLICATION PROCESSES AND COLLATERAL REQUIREMENTS RELATING TO COMMERCIAL FINANCING • ABSENCE OF INNOVATIVE SOURCES OF FINANCING SUCH AS LEASE FINANCING, LOAN GUARANTEE PROGRAMMES, VENTURE CAPITAL, DEBT FACTORING, ANGEL FINANCING • HIGH DEBT TO CAPITAL RATIOS IN MOST MEMBER STATES • LACK OF AN ENABLING ENVIRONMENT FOR DOING BUSINESS – DESCRIBED AS BEING “UNFRIENDLY” WITH A HIGH LEVEL OF GOVERNMENT BUREAUCRACY • WEAK BUSINESS SUPPORT ORGANISATIONS (BSOS) AND LIMITED BUSINESS DEVELOPMENT PROGRAMMES AT THE NATIONAL LEVEL • UNCOMPETITIVE FACTORS OF PRODUCTION ESPECIALLY ENERGY AND TRANSPORTATION • INEFFICIENT, INADEQUATE AND VERY EXPENSIVE AIR AND SEA LINKS FOR PEOPLE AND GOODS • INEFFICIENT PORTS AND EXORBITANT PORT CHARGES • LACK OF DYNAMIC PUBLIC/PRIVATE SECTOR PARTNERSHIPS • LACK OF A HARMONIZED LEGISLATIVE , POLICY AND REGULATORY INDUSTRIAL FRAMEWORK • ABSENCE OF NATIONAL INDUSTRIAL DEVELOPMENT FRAMEWORKS IN SOME MEMBER STATES

  8. FRAMEWORK FOR INDUSTRIAL DEVELOPMENT • THE PRIVATE SECTOR WILL PLAY THE LEADING ROLE IN INVESTMENT AND IN THE OWNERSHIP AND MANAGEMENT OF ECONOMIC ACTIVITIES • SUSTAINABLE DEVELOPMENT WOULD BE BASED ON PARTNERSHIPS OF THE PUBLIC AND PRIVATE SECTORS, LABOUR AND CIVIL SOCIETY • GOVERNMENT WILL PROVIDE THE ENABLING ENVIRONMENT FOR PRIVATE SECTOR ACTIVITY THROUGH POLICY HARMONISATION, COMMON POLICIES AND SUPPORT MEASURES INCLUDING:

  9. FRAMEWORK FOR INDUSTRIAL DEVELOPMENT (cont’d) STRATEGIC PLAN FOR REGIONAL DEVELOPMENT (SPRD) WHICH INCLUDES REGIONAL CLUSTERS OF PRIORITY SECTORS INCLUDING: - ENERGY - AGRICULTURE - NICHE MANUFACTURING - TRANSPORTATION - AGRO-TOURISM - FINANCIAL SERVICES - NEW EXPORT SERVICES - INFORMATION AND COMMUNICATION TECHNOLOGY - STRATEGY FOR FOOD AND NUTRITION SECURITY - STRATEGY FOR PRIORITY SERVICES SUB-SECTORS - INDUSTRIAL POLICY PARTICULARLY SMES

  10. FRAMEWORK FOR INDUSTRIAL DEVELOPMENT (cont’d) • REGIONAL STRATEGY FOR FOOD AND NUTRITION SECURITY • STRATEGY FOR SUB-SECTORS OF THE SERVICES SECTOR • REGIONAL DRAFT INDUSTRIAL POLICY • HARMONISED MODEL LEGISLATION AND A REGIONAL POLICY FOR SMEs • INTEGRATED REGIONAL COMPANIES AND VALUE ADDED CHAINS • ROADMAP FOR A REGIONAL INNOVATION AND ENTREPRENEURSHIP SYSTEM AND ICT • FACILITATE THE FORMATION OF THE CARIBBEAN BUSINESS COUNCIL (SINGLE VOICE OF THE REGION’S PRIVATE SECTOR – ASSOCIATE INSTITUTION STATUS)

  11. OBSTACLES • SLOW ADOPTION PROCESS IN MEMBER STATES • LIMITED PROGRESS WITH THE SINGLE ECONOMY • NO REGIONAL FRAMEWORK FOR PUBLIC PRIVATE SECTOR PARTNERSHIPS • LIMITED FINANCIAL RESOURCES TO CONTINUE THE WORK OF HARMONISED INDUSTRIALIZATION • NO UNIFIED SINGLE PRIVATE SECTOR VOICE

  12. THANK YOU Leela Ramoutar Deputy Programme Manager Private Sector Facilitation and Industrial Development CARICOM Secretariat Tel: (592) 222 0001 – 75 Ext. 2784 Email: lramoutar@caricom.org

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