Economic Task Force - Another CARICOM step in the right direction

Economic Task Force – Another CARICOM step in the right direction

Feb 08, 2009 Clarence E. Pilgrim, Features / Columnists

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, programmes 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 holds about a 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 US$800 billion.

A jump-start here 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 UK in April is eagerly awaited and watched as anticipated plans for international economic reform will be advanced for deliberation and necessary action. Saying that the future of our global village will depend on the outcome would be a gross understatement!

The US will hold significant clout, particularly since they possess veto authority in the two major international institutions – World Bank and the International Monetary Fund – both 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 blue print 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 governments have devised plans to address their respective challenges. Also, the Jamaican government received a 4.5% 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.

What is quite clear is that the world economic crisis will only have a lessened impact within the region, through proactive leadership and the right kind of social and financial management, which would allow for creative and productive solutions at the grass-roots level to a number of existing problems.

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!

Clarence E Pilgrim is an environmentalist, advocate for human rights, educator, a senior officer in the Antigua & Barbuda Civil service and volunteer for various non-profit organisations. His pen and speeches are consistent platforms for Caribbean Integration, social policy issues, environmental protection, development of alternative energy and the careful management of our natural resources.

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Economic Task Force – Another CARICOM step in the right direction

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