– warns region on crime economy
President of the Caribbean Development Bank (CDB) Dr Compton Bourne expects that in a single regional economy Guyana and Suriname will emerge as big energy producers and he predicts a revitalized agriculture sector and the growth of intra-Caricom tourism.
Dr Bourne made these pronouncements in his address at the 27th Annual Conference of the Institute of Chartered Accountants of the Caribbean on the issue of the Future Caribbean Economy. Dr Bourne said he believes the region’s problem is not an absence of analysis or prescription, but the failure to act sooner rather than later.
Stating that his assertions were speculative, Dr Bourne agreed that the economics of the region today is not much different than a few years ago; adding that in today’s world the region’s economy is vulnerable to outside shocks. He pointed out that with globalization, all forms of human activity were tightly intertwined and small developing countries are made to operate in the context of rules devised by bigger states.
As regards claims to sovereignty, Bourne posited that these had become just assertions as in political and economic reality the decisions of smaller states were constrained by the bigger picture. He also told the gathering to acknowledge that there are really two Caribbean economies – the one that is the complex of economic activity and transactions legally recognized and is regulated, and the crime economy where there are illegal transactions in goods and services and in which some of the input into income generation are procured outside the legal and regulatory framework.
The CDB head said he has witnessed the rapid growth of the crime economy, which has trans-border dimensions and has encroached on the authority of the state. He said too this has become a real problem for some countries in the region, citing for example, Trinidad and Tobago where the crime economy has given birth to things like extra-judicial means of dispute settlements. According to Bourne, the rise of the crime economy has been a major problem particularly due to its effect on the legal economy. “The investments in security, loss of production time, the loss of human lives, a sense of futility and disbelief of citizens in the future …. These consequences are here and long,” he said. In this regard he suggested that, “The economy as we know it, conceived in the framework of law and order will not survive if the crime economy continues to flourish.”
Looking ahead
Meanwhile, with specific reference to the future of the Caribbean economy, he pondered whether this would entail “one single economy” or a collection of loosely integrated economies of closely similar nature. Bourne noted that the revised Treaty of Chaguaramas committed heads to “one economy” and even though this has not yet been accomplished, the question ought not to arise.
He said too for there to be a complete realization of a single economy, there must be some surrender of sovereignty.
It is felt that many countries continue to hold on to their claim to sovereignty and this has posed many challenges for the proper realization of the Caricom Single Market and Economy as there are still many restrictions. According to Bourne this issue has been an obstacle to deep Caribbean integration.
Nevertheless, he said on the basis of trends he envisages a revitalized agriculture sector for the future Caribbean economy. Bourne said he also sees three sugar-exporting countries in the Region and the continued production of rice for international markets.
The importance of
intra-Caricom tourism
He believes too that tourism will remain strong to Caribbean growth and will be diversified to include historical and cultural tourism. Dr Bourne posited that Guyana and Dominica would be the major eco-tourism providers. He also cautioned that Caribbean people needed to accept that “Caribbean tourists are tourists too and deserve no less service.”
With regard to the development of the energy sector the CDB head sees Guyana and Suriname leading the region in the production of renewable energy. Trade, he added, would become more diversified and increase with Latin American partners. In reference to international competitiveness, he said Caribbean producers could not escape this in the light of globalization.
New trade agreements and the Economic Partnership Agreement will provide opportunities for economic growth. Bourne also pointed out that businesses in the Caribbean were sometimes handicapped by issues including interrupted telephone networks, electricity, water and labour and he cited the need for governments to reduce infrastructure issues which are critical to the development of Caribbean economies.
