Prime Minister Bruce Golding of Jamaica is reported as having expressed concern about ‘a number of things’ that are ‘destabilising and threatening the existence of Caricom’. In particular he believes that the political integration being pursued by Trinidad and a number of countries in the Eastern Caribbean may be ‘commendable’, but is ‘to the detriment to the deepening and strengthening of Caricom’ (Jamaica Observer June 10, 2009).

The Prime Minister is also concerned that membership of ALBA (Bolivarian Alternative for the Americas), ‘which now engages three Caricom countries, is going to have a destabilising effect on Caricom’.

I have to say that when the Trinidad-Eastern Caribbean integration initiative was launched back in 2008, I was of the same view as Prime Minister Golding. Since then I have experienced a 180-degree about turn in my thinking.

Before I explain the reasons for this, I would like to go back to a statement made by Prime Minister Golding in Nassau on March 9, 2008; as reported by Caribbean Media Corporation and cited by Rickey Singh in his column in the Jamaica Observer of Sunday, March 16, 2008. Prime Minister Golding is reported as saying:

"We remain open to discussions that would seek to expand the capacity of the single market (component of the CSME). We have expressed our reservations about the single economy; not reservation based on disagreement but based on what is being proposed, but simply indicating that it's going to be considerably difficult to establish single economic space unless you have a single set of economic policies...

"Macro-economic policies, monetary policies, fiscal policy, debt management policy, and possibly a single currency. It is going to be extremely difficult to do that without a political structure and once you get there, that is when we have to get off, because we are under a mandate that we are not going there..."

The Prime Minister’s remarks were very specific. They hardly brook any misunderstanding.

Whether or not it was his intention, his statement was widely interpreted in the eastern Caribbean to mean that his government was not committed to completing the ‘E’ part of the CSME*. Also clear was his opposition to any reform of Community governance that involved some pooling of Jamaica’s sovereignty into some form of collective sovereignty.

Coming from a JLP Administration, the statement also resurrected all the bad memories of Jamaica’s precipitate withdrawal from the West Indies Federation back in 1961; which led to the break-up of the Federation. Once again, Jamaica was cast in the role of spoiler.

I have good reason to believe that this statement was the catalyst for the Trinidad-Eastern Caribbean integration initiative. There is considerable irony, therefore, in the Prime Minister’s disquiet over the potential effect of the initiative on Caricom integration. There is a sense in which he is himself at least partially responsible for the initiative that now causes him concern.

This brings me to the reason for my change of thinking on the initiative. Quite simply: the CSME process is at virtual standstill, and has been for at least the last three years. The ‘deepening and strengthening of Caricom’, which Prime Minister Golding does not wish to see undermined, is hardly taking place. And that, because of the inaction of Caricom leaders, including Prime Minister Golding himself; as well as recent actions by other governments.

Back in January and June of 2006, Caricom leaders signed a ‘Declaration of Single Market Compliance’ which formally inaugurated the Caricom Single Market. They also agreed that the essential elements of the Caricom Single Economy would be brought into effect by the end of 2008.

Since then implementation of the Single Economy has fallen far behind schedule. What is more, some elements of the Single Market to which the governments were committed are now on the back-burner, or even in reverse gear.

Freedom of movement within the Community, which should have been instituted by the end of 2008, is not in effect. Two countries, Barbados and Antigua, have now resorted to deportations of undocumented Caricom nationals under circumstances widely reported to be discriminatory and inhumane.

The protocol on the Contingent Rights of Skilled Caricom nationals, promised by the leaders in January 2006, is languishing in interminable meetings.

Of the nine categories of skilled nationals that have, in theory, been freed for movement throughout the Community, several are non-operational or only partially operational. This is the case for teachers, nurses, skilled artisans and holders of associate degrees.

The Caricom Investment Code and the Caricom Financial Services Agreement, both drafted some time ago, have yet to be put into effect. The failures of CL Financial and Stanford Investment Bank have dramatised the need for these instruments.

Caricom Heads have had before them detailed proposals for the reform of Community Governance for the past three years, prepared by leading regional experts. Their inaction on the Report implies rejection of its recommendations.

The Caribbean Court of Justice is still not the final Court of Appeal for many member states, including Jamaica.

In the meantime, Caricom governments signed on to an Economic Partnership Agreement with Europe whose obligations are far wider in scope, and more detailed, than those so far agreed for the incomplete CSME. And they did so as individual states, rather than through Caricom as a juridical entity. I have argued that this will undermine the CSME and Caricom itself.

Regarding ALBA, in May of 2008 I prepared an analysis of Dominica’s accession to this grouping which concluded that membership is not incompatible with membership of Caricom. Nevertheless I suggested that it would be in Caricom’s interest to negotiate a collective agreement with ALBA (and with Petrocaribe), to attenuate the risks of economic and political dependency and to maximise its bargaining power. Coordination of foreign economic and trade relations is actually a principle enshrined in the Revised Treaty of Chaguaramas.

Caricom member countries accepted the conclusion but rejected the suggestion. Put simply, every country jealously guards the right to conduct its foreign economic relations in unilateral mode.

There is an old adage that says you cannot have your cake and eat it too. If you want to deepen and strengthen Caricom, then there are some things you will have to give up at the national level.

The Revised Treaty of Chaguaramas calls for a monetary union. Over ten years ago, when this matter was first mooted, Jamaica was one of the countries that argued that it couldn’t be done. Jamaica’s Central Bank and Finance Ministry are not known for their enthusiasm for Caricom monetary cooperation; to put it politely.

Perhaps if we had pressed ahead with monetary union in the 1990s, Jamaica would not be in the sorry position of going to the IMF, cap in hand, in 2009. Trinidad and Tobago’s currency reserves would have helped to provide a regional cover for the problems caused by the fall-out of the global crisis.

If the Trinidad and Tobago-Eastern Caribbean initiative were at the expense of the wider scheme of Caricom integration, I would continue to be opposed to it. But it is not. The alternative right now is continued malaise in CSME completion and continued inaction on reform of Caricom governance.

So why shouldn’t they press on with doing what the wider Community should be doing, but isn’t? It might actually stimulate other Caricom members to make up their minds as to where they want to go.

Significantly, the report of the task force set up to study the initiative (now available on the Internet) is titled The Establishment of a Single Economy and Appropriate Political Integration between Trinidad and Tobago and Eastern Caribbean States. (Caveat: my comments are on the principle of what is proposed; not the details, which I have not yet had the time to examine.)

To conclude: if Prime Minister Golding’s statement indicates a change of position on his part, which is expressed through his support for meaningful reforms in Community governance and accelerated CSME implementation; then we should expect to see evidence of this at the upcoming Caricom Heads of Government Conference in Guyana in July.

But if it merely expresses dismay at other integration initiatives, without addressing the underlying issues; then it seems likely that these initiatives will continue to be pursued and consolidated.

Its crunch time for Caricom. It has been, for some time.

* Ed.: CSME: CARICOM Single Market and Economy