NewsWhore
04-13-2009, 01:10 PM
The World Bank has just released a report, "Caribbean: Accelerating Trade Integration. Policy Options for Sustained Growth, Job Creation, and Poverty Reduction." The report says that the Caribbean compares poorly with some Asian countries with similar levels of trade integration 30 years ago.
"A new global and regional trade environment presents the Caribbean countries with critical challenges, but also many opportunities to reposition itself as a growing and competitive region, translating into significant economic and social gains," said Yvonne Tsikata, World Bank Director for the Caribbean.
The World Bank says that while many Caribbean countries (most notably Trinidad and Tobago, the Dominican Republic and Jamaica) have taken on policy measures to improve their trade policy, significant weaknesses remain in five major areas: Customs procedures and administration; Legal framework for businesses, including taxation; Comprehensive competition policy; National institutions in charge of trade policy formulation and implementation; and Trade policies have thus had limited outcomes. Trade costs are relatively high in the Caribbean, potentially impeding trade.
Economic growth in the Caribbean countries is expected to slow down compared to 2007 as these economies have been hit hard by recent shocks, including a recession in the US economy, the global financial crisis and a period of high food and fuel prices. Lower economic growth and consumption in North America and Europe could reduce exports, remittances, tourism, foreign direct investment and foreign aid.
The report suggests taking prompt steps to strategically reposition the Caribbean and make the most of new market opportunities, particularly in services, where the region has consistently demonstrated comparative advantage. On average, the Caribbean derives 45 percent of its GDP from services.
The report sets out five specific policy recommendations: Reducing macro-economic and fiscal imbalances, while investing massively in trade infrastructure and social programs, to facilitate the region's integration in the global economy and protect recent gains in human development. Accelerating the implementation of national trade policy reforms and improving investment incentives. Adjusting to the erosion of preferences, accelerating the implementation of the Caricom Single Market and Economy (CSME), and using the EPA (European Partnership Agreement) enhanced competitiveness and global trade integration. Developing a long-term trade strategy with a focus on increased competitiveness and new areas of opportunities. Strengthening the Caribbean Forum of African, Caribbean, and Pacific States (CARIFORUM's) regional institutions with a focus on implementation. This could be done through the creation of a Regional Implementation Mechanism (RIM) in charge of coordinating regional objectives and activities with national bodies.
This report is a joint effort between the World Bank, the Organization of American States (OAS) and the Governments of the Caribbean.
See: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/... (http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22128538~pagePK:34370~piPK:34424~theSitePK:4607,00.html?cid=ISG_E_WBWeeklyUpdate_NL)
More... (http://www.dr1.com/index.html#11)
"A new global and regional trade environment presents the Caribbean countries with critical challenges, but also many opportunities to reposition itself as a growing and competitive region, translating into significant economic and social gains," said Yvonne Tsikata, World Bank Director for the Caribbean.
The World Bank says that while many Caribbean countries (most notably Trinidad and Tobago, the Dominican Republic and Jamaica) have taken on policy measures to improve their trade policy, significant weaknesses remain in five major areas: Customs procedures and administration; Legal framework for businesses, including taxation; Comprehensive competition policy; National institutions in charge of trade policy formulation and implementation; and Trade policies have thus had limited outcomes. Trade costs are relatively high in the Caribbean, potentially impeding trade.
Economic growth in the Caribbean countries is expected to slow down compared to 2007 as these economies have been hit hard by recent shocks, including a recession in the US economy, the global financial crisis and a period of high food and fuel prices. Lower economic growth and consumption in North America and Europe could reduce exports, remittances, tourism, foreign direct investment and foreign aid.
The report suggests taking prompt steps to strategically reposition the Caribbean and make the most of new market opportunities, particularly in services, where the region has consistently demonstrated comparative advantage. On average, the Caribbean derives 45 percent of its GDP from services.
The report sets out five specific policy recommendations: Reducing macro-economic and fiscal imbalances, while investing massively in trade infrastructure and social programs, to facilitate the region's integration in the global economy and protect recent gains in human development. Accelerating the implementation of national trade policy reforms and improving investment incentives. Adjusting to the erosion of preferences, accelerating the implementation of the Caricom Single Market and Economy (CSME), and using the EPA (European Partnership Agreement) enhanced competitiveness and global trade integration. Developing a long-term trade strategy with a focus on increased competitiveness and new areas of opportunities. Strengthening the Caribbean Forum of African, Caribbean, and Pacific States (CARIFORUM's) regional institutions with a focus on implementation. This could be done through the creation of a Regional Implementation Mechanism (RIM) in charge of coordinating regional objectives and activities with national bodies.
This report is a joint effort between the World Bank, the Organization of American States (OAS) and the Governments of the Caribbean.
See: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/... (http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22128538~pagePK:34370~piPK:34424~theSitePK:4607,00.html?cid=ISG_E_WBWeeklyUpdate_NL)
More... (http://www.dr1.com/index.html#11)