TOWARDS A SINGLE ECONOMY AND A SINGLE DEVELOPMENT VISION Norman Girvan

Lessons of the past Adjustment and transformation imperative No coherent regional strategy Lack of an institutional framework Tyranny of the short-term/crisis management Wide intra-regional disparities Little popular involvement

Why a Singe Development Vision Now? Urgency of economic adjustment and transformation Framework for policy harmonisation under CSME & for external negotiations - EPA Facitate participation and ‘ buy-in of stakeholders

Suggestions Review previous studies Sequencing important – aim for ‘early harvest’ Place equal emphasis on non-economic aspects of integration Market integration insufficient Functional cooperation a necessary complement

Caveats on CSME CSME should not ‘ promise more than it can deliver ’ CSME cannot be ‘ all things to all men ’ Development still mainly a national responsibility CSME and functional cooperation must ‘ add value ’ to national effort

DEVELOPMENT VISION  Economic  Social  Governance  Environmental ECONOMIC INTEGRATION  Single Market  Single Economy FUNCTIONAL COOPERATION  Social  Environmental FOREIGN POLICY COORDINATION NATIONAL POLICIES & PROGRAMMES

Structure of Report · Scope and Vision · Drivers · Economic Policy · Social And Institutional · Sequencing

SIX ELEMENTS OF A SINGLE DEVELOPMENT VISION Economic, social, environmental and governance dimensions 1. Self-sustaining economic growth 2. Full-employment economy & elimination of poverty; 3. Spatially equitable growth 4. Social equity, social justice, social cohesion and personal security; 5. Environmental protection 6. Democratic, transparent and participatory governance.

ECONOMIC DIMENSION Social partnership Drivers of growth Private sector – leading role Government – enabling environment Common sectoral policies Harmonised functional policies Investment in human and social capital Promotion of entrepreneurial culture

SOCIAL DIMENSION Caricom Charter for Civil Society Corporate Social Responsibility Community Social Compact Investment in human capital Models of ‘best practice’ in public policy Regional minimum wage Caribbean Diaspora

GOVERNANCE DIMENSION Implementation of the Rose Hall Declaration Automatic application of decisions Caricom Commission Funding of regional institutions Assembly of CC Parliamentarians Caribbean Business Council Caribbean Corporate Governance Forum Charter for SMEs

ENVIRONMENTAL DIMENSION Caricom Environmental Regulatory Regime State of the Caricom Environment Reports

ECONOMIC DRIVERS Energy Agriculture Sustainable Tourism and Agro-tourism New export services

Economic drivers Sectors/ clusters of industry and service activities whose expansion will drive regional economic growth. Must have the potential for –sustained growth of exports to international markets, or –or growth in intra-regional exports, or –significant growth in supplies, at low real cost, of a key input that is important to the achievement of international competitiveness in other activities Growth potential have been identified through an iterative process of technical studies and stakeholder consultation

ENABLING ENVIRONMENT III. 1Social Partnership III. 2 Human Resources III. 3 Policy Harmonisation and the Business Environment III. 4 Transport III.5 Enhanced Monetary Cooperation III. 6 Regional Development Fund

POLICY HARMONISATION & BUSINESS ENVIROMENT III.3.1 Investment III.3.2 Taxation and Incentives III.3.3 Financial Services III.3.4 Capital Market Integration III.3.5 Small and Medium Enterprises III.3.6 Corporate Governance III.3.7 Competition Policy III.3.8 Technical Standards

PHASE – 2010 Extend and a streamline free movement of labour Free movement of service providers Prepare/approve HRDS CCCS – legal status Revised Governance Social Partnership

PHASE 1 Con’t Regional Development Fund – operational Caricom Investment Regime - adopt Caricom Financial Services Agreement - adopt Regional Stock Exchange- operational Sectoral policy frameworks – finalise Harmonisation of taxation/fiscal regimes - finalise

PHASE 1 Con’t Protocol on Enhanced Monetary Cooperation – adopt Common Currency numeraire – agree Finalise Environmental Regulatory Regime SMEs regime Competition Policy Technical Standards IP regime Corporate Governance

PHASE 2 – Implementation of Common sectoral policies Harmonised taxation, incentives, financial & regulatory environment Harmonised Fiscal & monetary policies Competition Policy IP Regime Monetary Union