Flag of the Caribbean Common Market and Community (CARICOM)
Caribbean societies are very different from other Western societies in terms of size, culture, and degree of mobility of their citizens. The current economic and political problems which the states face individually are common to all Caribbean states. Regional development has contributed to attempts to subdue current problems and avoid projected problems. From a political economic perspective, regionalism serves to make Caribbean states active participants in current international affairs through collective coalitions. In 1973, the first political regionalism in the Caribbean Basin was created by advances of the English-speaking Caribbean nations through the institution known as the Caribbean Common Market and Community (CARICOM).
Certain scholars have argued both for and against generalizing the political structures of the Caribbean. On the one hand the Caribbean states are politically diverse, ranging from communist systems such as Cuba toward more capitalist Westminster-style parliamentary systems as in the Commonwealth Caribbean. Other scholars argue that these differences are superficial, and that they tend to undermine commonalities in the various Caribbean states. Contemporary Caribbean systems seem to reflect a “blending of traditional and modern patterns, yielding hybrid systems that exhibit significant structural variations and divergent constitutional traditions yet ultimately appear to function in similar ways.” The political systems of the Caribbean states share similar practices.
The influence of regionalism in the Caribbean is often marginalized. Some scholars believe that regionalism cannot not exist in the Caribbean because each small state is unique. On the other hand, scholars also suggest that there are commonalities amongst the Caribbean nations that suggest regionalism exists. “Proximity as well as historical ties among the Caribbean nations has led to cooperation as well as a desire for collective action.” These attempts at regionalization reflect the nations’ desires to compete in the international economic system.
Furthermore, a lack of interest from other major states promoted regionalism in the region. In recent years the Caribbean has suffered from a lack of U.S. interest. “With the end of the Cold War, U.S. security and economic interests have been focused on other areas. As a result there has been a significant reduction in U.S. aid and investment to the Caribbean.” The lack of international support for these small, relatively poor states, helped regionalism prosper.
Following the Cold War another issue of importance in the Caribbean has been the reduced economic growth of some Caribbean States due to the United States and European Union’s allegations of special treatment toward the region by each other.
United States effects on regionalism
The United States under President Bill Clinton launched a challenge in the World Trade Organization against the EU over Europe’s preferential program, known as the Lomé Convention, which allowed banana exports from the former colonies of the Group of African, Caribbean and Pacific states (ACP) to enter Europe cheaply. The World Trade Organization sided in the United States’ favour and the beneficial elements of the convention to African, Caribbean and Pacific states has been partially dismantled and replaced by the Cotonou Agreement.
During the US/EU dispute the United States imposed large tariffs on European Union goods (up to 100% on some imports) from the EU in order to pressure Europe to change the agreement with the Caribbean nations in favour of the Cotonou Agreement.
Farmers in the Caribbean have complained of their falling profits and rising costs as the Lomé Convention weakens. Some farmers have faced increased pressure to turn towards the cultivation of illegal drugs, which has a higher profit margin and fills the sizable demand for these illegal drugs in North America and Europe. European Union effects on regionalism
The European Union has also taken issue with US based taxation extended to US companies via the Caribbean countries. The EU instituted a broad labeling of many nations as tax havens by the France-based OECD. The United States has not been in favor of shutting off the practice yet, mainly due to the higher costs that would be passed on to US companies via taxation. Caribbean countries have largely countered the allegations by the OECD by signing more bilateral information sharing deals with OECD members, thus reducing the dangerous aspects of secrecy, and they have strengthened their legislation against money laundering and on the conditions under which companies can be based in their nations. The Caribbean nations have also started to more closely cooperate in the Caribbean Financial Action Task Force and other instruments to add oversight of the offshore industry.
One of the most important associations that deal with regionalism amongst the nations of the Caribbean Basin has been the Association of Caribbean States (ACS). Proposed by CARICOM in 1992, the ACS soon won the support of the other countries of the region. It was founded in July 1994. The ACS maintains regionalism within the Caribbean on issues which are unique to the Caribbean Basin. Through coalition building, like the ACS and CARICOM, regionalism has become an undeniable part of the politics and economics of the Caribbean. The successes of region-building initiatives are still debated by scholars, yet regionalism remains prevalent throughout the Caribbean.
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