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Is the Whole Greater than the Sum of its Parts? Strengthening Caribbean Regional Integration
Author:
Abdullah Al-Hassannull

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Mary E. Burfishernull

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Mr. Julian T Chow
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Ding Ding
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Fabio Di Vittorionull

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Dmitriy Kovtun
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Arnold McIntyre
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Ms. Inci Ötkernull

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Marika Santoronull

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Lulu Shuinull

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Karim Youssef
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Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 008
Language:
English
Publication Date:
17 Jan 2020
DOI:
https://doi.org/10.5089/9781513525860.001
ISBN:
9781513525860
ISSN:
1018-5941
Pages:
79
Keywords:
WP; sovereign state; common market; ECCU authorities; labor market; CARICOM state; OECS authorities; factor market; average revenue; CARICOM economy; banking sector; CARICOM trade; trade cost; national budget; CARICOM member; Tax incentives; Regional integration; Caribbean; Global; Europe; exercise authority; Economic integration; CARICOM; CSME; Cooperation
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Deeper economic integration within the Caribbean has been a regional policy priority since the establishment of the Caribbean Community (CARICOM) and the decision to create the Caribbean Single Market and Economy (CSME). Implementation of integration initiatives has, however, been slow, despite the stated commitment of political leaders. The “implementation deficit” has led to skepticism about completing the CSME and controversy regarding its benefits. This paper analyzes how Caribbean integration has evolved, discusses the obstacles to progress, and explores the potential benefits from greater integration. It argues that further economic integration through liberalization of trade and labor mobility can generate significant macroeconomic benefits, but slow progress in completing the institutional arrangements has hindered implementation of the essential components of the CSME and progress in economic integration. Advancing institutional integration through harmonization and rationalization of key institutions and processes can reduce the fixed costs of institutions, providing the needed scale and boost to regional integration. Greater cooperation in several functional policy areas where the region is facing common challenges can also provide low-hanging fruit, creating momentum toward full integration as the Community continues to address the obstacles to full economic integration.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2020: Issue 008