We are all familiar with the EU but most people think it just involves one currency, the Euro. In fact, the EU is a political and economic union which was formed in 1993 and comprises of 27 members. It established a single market with a standard system of laws which apply to all members. It grants freedom of movement and maintains a common trade policy. Only 15 member states use the Euro.
In order to join the EU, a country must fulfill the economic and political conditions under the "Copenhagen criteria". This requires that the candidate country is stable, guaranteeing democracy, abides by the rule of law, protects human rights and minorities, and has a functioning market economy.
Membership presumes the country's ability to meet the obligations of membership. If the Caribbean were to form a CU, it would have to implement similar rules and regulations to ensure order and national safety.
A number of people are concerned that a CU would actually be damaging to our individual nations but in fact, the advantages of creating a Caribbean Union are countless.
The most obvious of these is the ease of travel and work. With this union, citizens of countries in the CU will be free to travel and work among the qualifying countries without hindrance. A unified front will open up many opportunities within the union so citizens will not be as inclined to "flee" the zone. As a result, travelling overall would be simplified and visas to visit countries outside of the CU will be more easily accessible.
Although countries in the Caribbean are miniscule compared to massive countries such as the US and Brazil, we will be formidable opponents as one. Unity of voices will bring together resources. Specialization and ease of trade within members of the CU will not only make natural resources cheaper and more accessible for us, but more competitive in the worldwide marketplace. We will be able to tap into the Caribbean's natural gas and oil resources and be self-sufficient as a region in terms of agriculture. It is time to think global. As a unified zone we will no longer need to compete with each other in regards to tourism. In working together, we can boost these revenues since we will have a larger variety of tourist attractions to offer. We should all be benefiting from the beauty and luxury of the Caribbean competing against Paris and Milan, not our neighbours.
Joining forces goes along with the plan to build a Caribbean Stock Exchange allowing all the members to fall under one securities roof. This will increase companies' marketability across the entire zone and allow them to raise more capital.
Moreover, a CU will allow for the creation of a Caribbean Central Bank like the European Central Bank. With this banking system the CU will be able to not only create and issue a stronger currency, but it will pool each country's money. Why would we want to pool our money into one bank? This will not only give us increased leverage when negotiating trade agreements with other countries but simply, more money equals more power. As a collective, the CU will have one voice, a louder voice that will be heard, as power rests in the unified hands of many.
Most importantly, unifying the region stimulates economic growth at a fast pace. With a stronger economy we will see "brain gain". Citizens of CU countries will want to return from the US, UK et al, as the overall health of our countries will blossom luring them. Many Jamaicans, Trinidadians, etc abroad have their flags pasted on cars and pinned on their windows. We are a very proud people who miss our homelands when we are away. Those abroad will return if the chance for a better life prevails.
A CU sounds like an excellent plan that would be beneficial for each individual country. So why then wasn't a CU created a long time ago? The answer is that there are some disadvantages to having a unified region. For starters, migration would become a challenge for the less developed countries. Not only would residents leave seeking a better standard of living, but they would also migrate due to wage competition. Citizens from the lower income countries would migrate to the richer and higher-paying islands. If you can get the same job in Jamaica and Barbados but in Barbados you will be paid more, what is to stop you from leaving Jamaica?
Another concern is price wars. Bigger businesses will create stiffer competition for smaller businesses and put pressure on them to cut their prices. Larger companies can buy products in bulk and therefore can sell them for cheaper than smaller companies. In turn, this could lead to local businesses losing their market share because of increased competition.
For most, the major concern however, is the loss of sovereignty. Though these apprehensions are valid, we must not lose sight of the "big picture". Each country will have its own government and individuality. The CU's agreement will be formed carefully and selectively so that it will build us up rather than tear down our current foundations. With every great change comes some trade-off, but undoubtedly the positives of a CU far overshadow the few drawbacks.
Jhana Saunders
http://www.blogger.com/post-create.g?blogID=4829691472310395722
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