opinion

CARICOM steps in
the right direction
by Clarence E. Pilgrim

At a time when the world continues to experience a financial crisis the 13th Meeting of the Caribbean Community (CARICOM) Council for Finance and Planning (COFAP), held in Barbados, recently made a welcome move by establishing a task force to recommend policies, programs and approaches to lessen the effects of the global recession.

I believe that this one step is a giant leap in bringing a sense of collective responsibility within the CARICOM leadership.

A release describes the work of the task force as to "identify the critical challenges facing CARICOM as a result of the global financial crisis and global recession; identify the areas and sectors which call for priority treatment; outline possible measures which could mitigate the effects of the global recession; and highlight those remedies which are feasible and emphasize those responses which should be avoided."

The "critical mass" of each member nation makes it an economic imperative that a common underlying structure be devised and implemented, to face challenges through the anticipated strength of joint problem-solving and decision-making.

This important regional step comes on the heels of angry protests in a number of nations throughout the world, including Russia and in France where transportation services were disrupted by huge crowds. Iceland saw angry protests over the handling of the financial crisis lead to the collapse of the coalition government.

It is believed by analysts that the United States accounts for about one-quarter of the world's economy, therefore many nations are supporting its attempt to resuscitate its domestic financial status with a proposed stimulus package of over $800 billion (US dollars).

A jump-start there would indeed have a ripple effect and would contribute to the overall attempt to halt the global recession, if not immediately reverse it.

The G20 Global Economic Summit, to be held in the United Kingdom in April, is eagerly awaited as plans for international economic reform will be advanced there. Saying that the future of our global village will depend on the outcome would be a gross understatement. The United States will hold significant clout particularly since they possess veto authority in two major international institutions --- the World Bank and the International Monetary Fund --- both of which are expected to play a major role in the architecture of a new financial system to combat the present crisis.

Key CARICOM policy makers, especially the Ministers of Finance and particularly the newly established COFAP task force, will be looking carefully at the G20 outcome, which may help them to guide the crafting of a blueprint for any multi-dimensional economic stimulus package that could be presented to the CARICOM leadership. Such a document should include suggestions on addressing regulatory failures and the priority reforms which must be embedded in this package and beyond.

From the laying off of workers at the Stanford Development Company in Antigua & Barbuda to the cash strapped companies belonging to CL Financial Ltd in Trinidad and Tobago, businesses in the Caribbean are under siege from an uncertain business climate. Both the Antiguan and Trinidadian governments have devised plans to address their respective challenges. Also, the Jamaican government received a 4.5 percent interest loan from the Caribbean Development bank, to boost its fiscal and debt sustainability. This injection of US$100 million or (J$8.5 billion) will be in three tranches over a two-year period.

The world economic crisis will have only a lessened impact within the region if there's proactive leadership and the right kind of social and financial management, which would allow for creative and productive solutions to a number of existing problems at the grass-roots level.

These are times when we cannot have myopic vision, but a broad understanding of what we can do collectively and generate the will to implement what is necessary for the greater good of all. Any other option would be to miss the point.

The author is an educator and senior civil servant in Antigua & Barbuda