CSME may never be realized, says Dr Gonsalves

The dream of a Caribbean Single Market and Economy (CSME) is yet to be realized and possibly never will be.

In 1973, the Caribbean Community (CARICOM) was established under and by virtue of the Treaty of Chaguaramas. In 2001, the juridical framework for the CSME was formally elaborated in the Revised Treaty of Chaguaramas.

But the Single Economy is yet to be operationalized as envisaged. 

“It is not that some progress has not been made, but the CARICOM Single Economy is still to be achieved, said Prime Minister Dr Ralph Gonsalves while delivering a lecture recently entitled “Some Salient Issues for Resolution in CARICOM.”

Gonsalves, speaking on February 22 before a conference room filled with senior public servants and members of the private sector, told them that we have witnessed solid progress in trade facilitation, freedom of movement of CARICOM nationals, the establishment and functioning of the supra-national Caribbean Court of Justice (CCJ) in its original jurisdiction, and the enhancement of functional cooperation in education, health, security, and the coordination of foreign policy. 

However, “Still, in each of the areas of progress, there is much that is yet to be accomplished. But more than all this, the core features of the CARICOM Single Economy are yet to be realized.”

Gonsalves noted that although a March 2017 Report of the Commission to Review Jamaica’s Relations within the CARICOM and CARIFORUM Frameworks (the Golding Report, called after its Chairman, former Prime Minister of Jamaica, Bruce Golding), has proffered an “highly stylized and somewhat overblown critique” of the lack of progress in the implementation of the CSME, there is much truth in it. 

Quoting from the report, Gonsalves said, “…Something cannot be said to have failed unless it has been tried. The Single Market and Economy that we so often declare is not working cannot, in reality, be expected to work, because it has not yet been functionally established.

“So much time has elapsed and so much that should have been done has not been done that we are in danger of succumbing to ‘integration fatigue’ without having actually integrated and we are having difficulty sustaining or renewing our commitment to the process.”

The Prime Minister said the Golding Report tells of a Jamaican-centered perspective, from which flows a bundle of 33 recommendations, with suggested timelines for implementation.

He said many of these recommendations are relatively run-of-the-mill, sensible correctives to specific challenges or initiatives which have been

canvassed repeatedly by this or that review, internal and external, of CARICOM. 

But, according to Gonsalves, “some, though, are plain unworkable under the extant governance arrangements in CARICOM; and altered governance has been enduringly problematic.”

He said that the Golding Report’s telling recommendation with undoubted far-reaching consequences for Jamaica and CARICOM is this: “There needs to be a clear, definitive commitment now from each Member State to a specific time-bound, measurable and verifiable programme of action to fulfill all its obligations and complete all the requirements for the single market and economy to be fully established and operational within the next five years.” 

Gonsalves stated that the report says that in the absence of such a commitment and its diligent execution, Jamaica will withdraw from the single market and economy, but seek to retain its position as a member of CARICOM in a status similar to that held by The Bahamas. After doing this, Jamaica would then consider what form of trading arrangement it would wish to pursue with other CARICOM Member States.

“This recommendation is central to the Golding Report’s menu of recommendations; its no-nonsense, take-it-or-leave-it “litmus test,” he said, adding that under the rubric of this central recommendation, the Golding Report lists 22 “must do” items for the CSME over the next five years, or else withdrawal by Jamaica.

Gonsalves said while the Golding Report has been laid in the Jamaica Parliament, CARICOM does not yet know the position of the Jamaica government on Golding’s recommendations. 

Gonsalves, however, said that in his opinion, only a well-constructed, authoritative executive CARICOM Commission will be able to push and manage the CSME as a lived reality, but many current enthusiasts were lukewarm to the idea when they were in office. 

Gonsalves said the integration process in the Caribbean has always been marked by distinct but connected circles of integration, such as the OECS, CARICOM, the ACS, CELAC and ALBA-Petro Caribe. 

“Each integration circle has its points of contact and relevance with others, all of which are designed to advance the interests of their member countries in solidarity with each other.  None of these integration circles undermines the integrity and efficacy of another; indeed, they are all supplementary and complementary to each other in a dynamic integration process.”

Gonsalves told the gathering that St Vincent and the Grenadines is committed to deepening and broadening, in all practical circumstances, the process of regional integration in the collective interest of our people’s further development.

He said in his opinion, it is doubtful, given the current context of globalization, the condition of the regional economies, the unequal yoking of the Member States of CARICOM, and the highly unlikely attainment of an executive CARICOM Commission, that a single economy can be fashioned in CARICOM now or in the foreseeable future. 

“If this assessment is correct, we ought reasonably to spend our time more usefully on the attainment of the goals resident in the other pillars of CARICOM’s design. In this way, our focus is likely to yield substantial results even on modest objectives, than to be in thrall of a permanent condition of dissatisfaction because of the elusive single economy, and its essential precondition, an authoritative executive governance apparatus.”