Caribbean Trade Law and Development

Tag: Current Affairs

  • The 2012 London Olympics: Rally around the Caribbean!

    Alicia Nicholls

    David Rudder’s famous calypso ‘Rally ’round the West Indies’ came to my mind as I watched the end of the track and field events of the 2012 London Olympics on television today with regional pride. This song, which has become the anthem of the West Indies cricket team, is about cricket but the regional pride and call to action which it exudes can apply to any facet of regional life.

    Of the two hundred and four countries represented at the games of the XXX Olympiad, twenty-two were from the Caribbean,  representing our unique melting pot of cultures and tongues. Since the region’s first showing at the Olympic Games in London in 1948, the way for our younger athletes today has been paved by several regional track and field legends, the likes of which include: Arthur Wint (Jamaica’s first Olympic gold medalist),  Rodney Wilkes (Trinidad & Tobago’s first Olympic gold medalist), Hasely Crawford, Donald Quarrie, Merlene Ottey, Ato Bolden,  just to name a few.

    I would be the first to admit that unlike previous years, I was not initially feeling the hype of the Summer Olympic Games this time around.  But by the second week of the games, the strong Caribbean presence, particularly in the track and field events, was enough to shake my apathy and keep me glued to my computer to hear the latest updates.

    The London Olympic Games were full of heart-warming, tear-inducing moments for all Caribbean people here and in the diaspora. Thanks to Jamaican athletes Usain Bolt and Shelly-Ann Fraser-Pryce’s lightning fast wins in their respective 100m events, the Caribbean can boast the fastest man and woman on earth. Smashing world record after record, Usain Bolt has been the first to successfully defend an Olympic gold medal in not one but two events (men’s individual 100m and 200m) and has undoubtedly sealed his place in history as the greatest sprinter of all time. Anchored by Bolt, the record-setting performance of the Jamaican quartet in the 4 by 100m relay brought a resounding end to the track and field events for the region.

    The 2012  London Olympics has been the best Olympic Games for the Caribbean in terms of medal tally and the distribution of medals. The region won 15 medals in Sydney, 15 in Beijing and now 18 medals in London, of which  7 are gold medals.  This is also the best Olympic performance by individual CARICOM countries, with Jamaica, Trinidad & Tobago, the Dominican Republic, Grenada and the Bahamas all winning Olympic gold in track and field events. Jamaica has finished third overall in the track and medal table, winning 12 medals, only behind the United States and Russia, but ahead of other big countries like the UK. While the English-speaking Caribbean’s medal success has been in track and field, Cuba represented the region well off-track by winning gold in judo, boxing, shooting and wrestling.

    Perhaps the most poignant moments  of the games for me were the successes of our young, first-time Olympians. Hitherto unknown and not yet twenty, Trinidad & Tobago’s Keshorn Walcott became the first person from the western hemisphere in over six decades to win Olympic gold in the javelin throw. Kirani James’ stunning win in the 400m dash gave Grenadians the world over their country’s first Olympic medal and the inspirational moment of hearing their national anthem being played at an Olympic Stadium for the first time.

    The Caribbean is traditionally used to world-dominance in cricket, producing some of the greatest cricketers the world has ever seen. Now our region’s world class track and field athletes have shown the rest of the world that the track dust which we stir up is larger than the dots that represent us on maps. The symbolism of the Caribbean’s domination of the track and field events in this year’s games cannot be escaped.  For the English-speaking Caribbean, being able to flex our athletic muscle and assert our dominance against seasoned athletes from metropolitan countries, in the capital city of our former mother country, was an empowering feeling. The performance of Jamaica and Trinidad & Tobago is particularly symbolic given that this August marks a half century of both countries’ independence from Great Britain.

    Nothing can compare to the pride I felt seeing the flags of Caribbean countries being hoisted in the air or the look of achievement and love of country and region on the faces of our athletes as they stood atop the podiums to receive their medals at the medal ceremonies. It is Caribbean athletes’ names that will be on the lips of all who speak of the London Olympics of 2012. Their prowess will be etched in our memories forever.

    In addition to this, the Caribbean pride I saw glowing from the status updates and comments of my Facebook friends, the impassioned cries of Caribbean unity and “one Caribbean” was truly encouraging particularly at a time when so many are bemoaning the apparent stagnation of CARICOM and the regional integration movement on a whole. Caribbean people both in the region and in the diaspora have been united in their celebration of regional athletes’ success at the London Olympic Games of 2012. The Caribbean pride that I saw during these games was not manufactured. It was genuine. Never again can anyone say that Caribbean integration is beyond our reach. Just as we have put parochialism and petty stereotypes about each other aside momentarily for the past days and rallied around our Olympic athletes, it is about high time our governments get serious about regional integration and rally together for the good of the region.

    The Caribbean could not have asked for a better performance from our ambassadors. All of our Caribbean Olympians, whether they medaled or not, are champions and deserve heartfelt congratulations from the region. You have made our people proud!

    Alicia Nicholls is a trade policy specialist and law student at the University of the West Indies – Cave Hill. You can contact her here or follow her on Twitter at @LicyLaw.

  • Small dots but big footprints: Caribbean Countries and International Organisations

    Alicia Nicholls

    Another daughter of the soil has been called to serve on one of the world’s most eminent and most important intergovernmental organisations. This time it is Barbados’ Chief Medical Officer, Dr. Joy St. John who has been appointed Chairwoman of the Executive Board of the World Health Organisation (WHO).

    Dr. Joy St. John, a medical doctor, joins a growing list of Barbadian and CARICOM nationals who have been called to serve in the highest echelons of some of the world’s most prestigious international bodies. Casting our minds a bit back in time, one would recall another Barbadian woman who made a notable contribution to public health issues at the international level. Barbados’ former Governor-General, Dame Ruth Nita Barrow, served as a nursing advisor to the WHO and the Pan-American Health Organisation for more than a decade. Though a midwife and nurse, Dame Nita had also served as President of the International Council on Adult Education in 1975 and 1986.

    Outside of the health arena and more contemporarily, Mrs. Elizabeth Thompson, former Barbados Labour Party (BLP) cabinet minister and well-esteemed environmental lawyer and negotiator, was appointed as a United Nations Assistant Secretary General. In 2010 she was appointed by UN Secretary General Ban Ki-Moon as Executive Coordinator of the UNCSD Rio +20 Conference. In the field of trade in intellectual property, Mr. Trevor Clarke is the World Intellectual Property Organisation (WIPO)’s Assistant Director General for the Culture and Creative Industries Sector. Further in the area of culture, Alissandra Cummins, the Director of the Barbados Museum and Historical Society, is currently the Chairperson of the Executive Board of UNESCO  (2011-2013) and had also made history as being the first Caribbean and female president of the International Council of Museums between 2004-2010.

    We in the Caribbean often regard ourselves as small states. Indeed, by our geographic, demographic and economic size, we are. However, our contribution in international organisations, particularly on issues of greatest concern to us as small states,  should serve to us as a reminder that while we may appear as no more than little dots on a map, our footprint in these organisations often belies our size.  One would recall that it was Trinidad & Tobago under the leadership of then Prime Minister A.N.R. Robinson which was instrumental in pushing for the establishment of the International Criminal Court (ICC). Again in the field of law, eminent Jamaican law professor and former principal of the Norman Manley Law School, Dr. Stephen Vasciannie, served on the prestigious UN Law Commission whose mandate is the codification and progressive development of international law.

    There are many others that can be listed but I have made my point. The ability of Caribbean people to assume and function effectively in these key positions and the faith that other nations have put in the representation of our nationals stand as testament and vindication of the solid investment that our governments have tended to put in developing our greatest resource, that is, our people.

    I wish Dr. St. John all the best in her new position as she continues to fly our Barbadian and CARICOM flags high.

    Alicia Nicholls is a trade policy specialist and law student at the University of the West Indies – Cave Hill. You can contact her here or follow her on Twitter at @LicyLaw.

  • Is the World Bank finally committed to an open and merit-based selection process? Only time will tell…

    Alicia Nicholls

    The current president of the Washington DC-based World Bank, Robert Zoellick, a former executive with Goldman Sachs, will be stepping down from the post in June of this year.  Per a tacit agreement between the US and European countries, all eleven presidents of the World Bank since the Bank’s founding in 1944 have been American. Concomitantly, a European has always headed its sister institution the International Monetary Fund (IMF).  This present World Bank selection cycle has seen an unprecedented challenge to US monopoly of the World Bank’s leadership to date. The US’ nominee, Dr. Jim Yong Kim, faces stiff competition from two nominees from the global South, Dr. Ngozi Okonjo-Iweala from Nigeria and the Brazil-nominated Mr. Jose Antonio Ocampo from Colombia.  Coming on the heels of the IMF’s managing director selection process last year when Europe retained its perennial grip on that institution’s leadership position, the question on everyone’s mind is whether this World Bank selection cycle will see a continuation of the status quo or whether either candidate from the global South will stand a decent chance of assuming the reins of this important international financial institution (IFI).

    The contemporary geopolitical and economic configuration of the world is much different from that which existed in the immediate post-World War II era in which the Bretton Woods institutions were born. The US, while still the world’s largest economy by GDP, now shares the world stage with several increasingly important poles of growth, notably emerging economies which have been the main engines of economic recovery. Yet the World Bank’s governance structure does not reflect this multipolar reality. Tired of the iniquitous status quo, the BRICS have been pushing for reform of the Bretton Woods institutions to reflect present-day economic realities and to allow developing countries a greater say in the international financial and economic system. While the BRICS have been successful in increasing their voting power in the World Bank, securing the top post has been a different story. Will this time be different?

    Brazil has nominated former Colombian Minister of Finance, Jose Antonio Ocampo, a US-trained economist who is currently a Professor at the Ivy-League Columbia University in New York City. In its communiqué of March 26th, the African Union  endorsed the candidacy of renowned Nigerian economist, diplomat and former government minister, Dr. Ngozi Okonjo-Iweala. Perhaps in an attempt to diffuse the calls for change, the Obama administration shied away from the usual choices of bank executives and bureaucrats and instead nominated the Korean-born US national Dr. Jim Yong Kim.  A medical doctor, Dr. Kim is the President of the prestigious Dartmouth College and is well-known for his work in fighting tuberculosis and HIV-AIDS throughout the developing world.

    It should be noted that all three candidates being considered are highly educated and tremendously qualified in their respective fields. All three were born in developing countries and educated at Ivy League universities in the US. That being said, Dr. Okonjo-Iweala’s impeccable qualifications and her vast experience should make her rise to the top of the pack.  Dr. Okonjo-Iweala is an internationally respected economist with a wealth of expertise in development issues at both the national and global levels.  She has spent more than twenty years at the World Bank until ascending to the post of Managing Director in 2007. She has also served twice as Minister of Finance and Minister of Foreign Affairs in her home country of Nigeria. It is therefore no surprise that Dr. Okonjo-Iweala was named as one of the 100 most powerful women by Forbes Magazine.

    Dr. Okonjo-Iweala as the World Bank’s new president would be a powerful symbol for gender rights. It would be the first time a woman, far less a woman from the global South, would be at the helm of this powerful but traditionally male-dominated global financial institution. A wife and mother of four, Dr. Okonjo-Iweala has been outspoken on gender equality and on the macroeconomic and social benefits of providing finance to women and of encouraging women entrepreneurship. In this regard, it is hoped that she would push for more gender-sensitive bank lending programmes.

    Perhaps, even more critically, it would be the first time a person from a developing country and an African nation, will be at the head of this institution. The World Bank is an important lender to developing countries and has the twin goals of reducing poverty and promoting development. Despite some of its good work, the World Bank, like its twin sister the IMF, has not always had the best reputation in the developing world, including right here in the Caribbean. During the 1990s, its structural adjustment programmes under the so-called Washington Consensus foisted austere market reforms and other neo-liberal policies on cash-strapped countries as conditionalities for loans. These policies included deregulation, privatization, cuts in Government expenditure (especially in social welfare) and liberalization of capital markets, which if introduced too quickly and/or without the supporting institutional framework could lead and have led to devastating consequences in the countries concerned and have had a disproportionate impact on the livelihoods of women and the poor. For a case in point, just watch the documentary Life and Debt for a vivid look at Jamaica’s experience with IMF-World Bank sponsored structural adjustment. Under a Okonjo-Iweala presidency, it would be hoped that there will be the genesis of a new era in the Bank’s dealings with the South, marked by less focus on free market ideology and a greater sensitivity towards the impact of policies on vulnerable groups in society such as women and the poor.

    However, Dr. Okonjo-Iweala’s candidacy faces two big hurdles. Chief among them is the Bank’s ‘democratic deficit’. It is the Bank’s 25-member Board of Executive directors which will ultimately decide the successful candidate.  As the largest economy among the 187 countries in the World Bank, the US has the majority of votes. By choosing a nominee, the US has shown that it will not go against its own strategic interests by supporting a non-American for such a key post.  Moreover, European countries, which hold the second largest block of votes, are unlikely to support a non-US candidate, especially given the US’ support for their IMF nominee last year. Additionally, Japan has already signalled its intention to support the US nominee.

    The only alternative would be for Dr. Okonjo-Iweala to garner unanimous developing country support. Therein lies the second problem.  The BRICS have been reticent about throwing their support behind a single nominee from the South and have so far not endorsed any of the three candidates. Last year the BRICS missed their opportunity to block the ascension of yet another European to the post of IMF managing director by their inability to unanimously agree on an alternative candidate, even though there were well-qualified non-European candidates.

    This crop of candidates will make unanimous developing country support behind a single candidate even more elusive. The Brazil-nominated Mr. Ocampo will probably enjoy significant support from Latin American countries. But as the US nominee, Dr. Kim is the clear front-runner for the job. Moreover, by choosing an Asian-American, a non-banker and a public health professional,  the US has picked a candidate who will undoubtedly garner support from many developing countries, including some Asian countries which have criticised the US’ monopoly of the World Bank leadership position. Despite being the best candidate, Dr. Okonjo-Iweala will have a tough, and some say, futile battle for the World Bank presidency.

    As the countries which rely the most on IFIs and arguably stand the most to lose from any turmoil in the international financial system, developing countries need to have a greater say in these global financial institutions. Is the World Bank truly committed to an open and merit-based process irrespective of nationality? Only time will tell.

    Alicia Nicholls is a trade policy specialist and law student at the University of the West Indies – Cave Hill. You can contact her here or follow her on Twitter at @LicyLaw.

  • Is ALBA a threat to CARICOM integration?

    Alicia Nicholls

    CARICOM countries could soon make up the majority of member states in the Bolivarian Alliance for the Peoples of Our America (ALBA). At the bloc’s 11th Summit last month in Caracas, both Suriname and St. Lucia  formally expressed their intention to become members of the eight-member group. They would join four other CARICOM countries which are already ALBA member states: Antigua & Barbuda, Dominica, St. Vincent & the Grenadines and more recently, Haiti.

    The wave of interest in ALBA, a regional bloc which like CARICOM envisions deep integration between its members, comes against a backdrop of stagnation and crisis in the CARICOM integration process.  While ALBA leaders at their 11th Summit agreed to move full speed ahead to deepen their integration with the creation of a single monetary union – ECOALBA, CARICOM Heads of Governments caught most people by surprise last year when they inexplicably put the CARICOM Single Market and Economy (CSME) on ‘pause’ during their retreat in Guyana. It was a decision for which Prime Minister of St. Vincent and the Grenadines, Dr. Ralph Gonsalves recently expressed regret. In a candid letter sent to the Secretary General of CARICOM which effused both lament and frustration at the current ‘standstill’ in CARICOM, Dr. Ralph Gonsalves made mention of the augmented interest by CARICOM countries in courting ALBA. He predicted that more CARICOM countries were likely to follow suit and rhetorically asked what would be the implications of this for CARICOM.

    ALBA is one of the most well-known South-South trade initiatives in the Western Hemisphere, not just because it was the brain child of the outspoken and no-nonsense President of Venezuela, Mr. Hugo Chavez, but because it potentially represents a more equitable alternative to the traditional neoliberal model of regionalism. It was launched by Venezuela and Cuba in 2004 originally as the Bolivarian Alternative for the Americas, and as an alternative to the now moribund Free Trade Area of the Americas which had been pushed by the United States. Drawing inspiration from the political thought of freedom fighters Jose Marti and Simon Bolivar, ALBA’s stated aim is to be a political, economic and social alliance which seeks to protect the independence, sovereignty, self-determination and identity of its Member States, and to protect the interests of the peoples of the South from political and economic domination.

    If the question of ALBA’s threat to the CARICOM integration process is considered purely on the compatibility of ALBA CARICOM countries’ obligations, the flexibility which ALBA gives its members in terms of the initiatives which they can choose to be a part of means that ALBA CARICOM countries are free to refrain from initiatives which could conflict with their CARICOM and OECS obligations.  In the declaration of accession signed by St Vincent and the Grenadines for example, the Gonsalves Government made clear that as a regional movement ALBA does not alter but complements its obligations in other regional movements such as the OECS and CARICOM.  Thus, St Vincent and the Grenadines, like the other OECS members of ALBA, has not introduced the new regional trading currency – the sucre in light of its membership in the OECS’ monetary union.

    A more immediate domain for conflict between ALBA and CARICOM obligations appears to be in the area of foreign policy. Foreign policy coordination is one of the stated objectives of CARICOM per the Revised Treaty of Chaguaramas and one of the pillars of functional cooperation.  While ALBA Members are given flexibility in foreign policy, ALBA as a group has been outspoken on several current conflicts, including throwing support in a recent declaration solidly behind Argentina in the recently escalating Falkland Islands dispute between that country and the United Kingdom.  The decision was made to join several other Latin American countries, including Argentina, to prevent Falkland-flagged ships from docking at their ports.  Although the ALBA CARICOM countries have not all come out and said whether their individual stance was in consonance with that of ALBA’s, one would not be unreasonable by taking their silence as agreement with the ALBA position. This position however is diametrically opposed to that taken by the non-ALBA members of CARICOM which have supported the Falkland Islands’ right to self-determination, that is, their right to remain British. Dr. Gonsalves’ stance on the issue caused some controversy in his country. However, on a larger scale, such divergence in policy position could be evidence of the potential threat of further fragmentation in the region’s foreign policy coherence.

    Politics aside, there is no doubt that the main attraction of ALBA to those CARICOM countries which have acceded so far  is the developmental support provided by its founding countries Venezuela and Cuba. Havana has long been a development partner of many countries in the region. Through bilateral cooperation agreements signed between the Cuban government and the governments of the region, the people of the wider Caribbean have benefited from free eye care in Cuban hospitals under Operation Miracle, scholarships to study medicine at Cuban universities and free health care by Cuban doctors.  Haiti has also benefited from food and literacy programmes.

    Under the Chavez administration, Venezuela has also taken a more active developmental role in the region. Since the establishment of the PetroCaribe Initiative in 2005, some 17 Caribbean countries, most of which are non-ALBA members, have benefitted from this arrangement which allows them to purchase oil on preferential terms of payment. Only part of the cost is paid up front and part can also be paid through the provision of agricultural goods. The remainder is repaid over a 25 year period at a 1% interest rate. The PetroCaribe deal has not been immune to criticism, and both Barbados and Trinidad & Tobago have not joined. Though such an arrangement helps in the short term to conserve much needed foreign exchange, it means that those countries which take oil on these terms are indebted to Venezuela in the longer term. Moreover, while PetroCaribe aims to promote energy security through the provision of “cheap” oil, Venezuelan fuel exports under the Agreement have decreased over time due to less available supply. Another criticism raised is that the ‘cheap oil’ provided under PetroCaribe increases the region’s dependence on the importation of fossil fuels. This latter argument is less persuasive given the increasing interest shown by CARICOM countries in renewable energy generation, through for instance geothermal, solar and wind energy.

    The financial support offered by ALBA is  highly attractive to debt-ridden CARICOM countries faced with an uncertain global economic and financial climate. Loans are given at favourable terms and without most of the usual conditionalities insisted on by traditional donors. Through its loan funds, ALBA has provided funding for projects, including infrastructure, housing and agriculture projects in Dominica for example. St Vincent and the Grenadines also received a loan from the ALBA Bank for the construction of a new international airport.

    The availability of credit under ALBA’s several funds can be contrasted with the limited capitalization of the CARICOM Development Fund. The CDF is provided for under Article 158 of the Revised Treaty of Chaguaramas as a fund to provide financial and technical assistance to disadvantaged countries, regions and sections within the grouping. The limited capitalization of the CDF, plus problems with the Petroleum Facility and the perceived lack of sensibility to the OECS countries’ unique vulnerabilities, were some of the many shortfalls of CARICOM about which Dr. Gonsalves complained in his previously mentioned letter. Frustrations like these over ill-functioning regional aid mechanisms plus the more readily available economic aid under ALBA, could lead to more CARICOM countries turning their attention to ALBA.

    One area in which CARICOM arguably maintains an upper-hand over ALBA is in trade. With a population of 70 million people, ALBA represents a larger market for regional goods than does CARICOM. That being said though, the export capabilities of the ALBA CARICOM remain too weak to effectively take advantage of this.  It is true that over the period 1999-2008, it is reported that average yearly trade between Venezuela and Antigua & Barbuda was USD 6.5 million, between Venezuela and Dominica, USD 179 million and between Venezuela and St. Vincent and the Grenadines, 4.5 million dollars. However, given that petroleum trade accounts for most bilateral trade between Venezuela and ALBA CARICOM countries, the balance of trade is skewed in Venezuela’s favour.  While trade asymmetries do exist within CARICOM as well, the regime created by the Revised Treaty of Chaguaramas envisions the freedom of movement of goods, services, people (skilled) and capital within the Community, the right of Community nationals to establish businesses in other territories, as well as a competition commission which is charged with ensuring the rules of the market are respected.  ALBA has not as yet reached this level of integration. That being said, however, the large gulf between what the Revised Treaty provides for and what operates in practice in CARICOM has led to frustration that the expected benefits are not being seen.  Moreover, ALBA does intend to become an economic union, something which continues to elude CARICOM.

    Although there is an undisputed role for ALBA as a development aid and trade partner for our countries, their main integration focus should be on deepening CARICOM integration. CARICOM is more than a trade group. It was founded on the vision of our regional founding fathers who believed that strength comes not through parochialism but through the political, economic and social unification of a people already united through a common history and a shared culture and values. Regardless of its many shortcomings, CARICOM, its organs and associated bodies, have played a tremendous role in the region for the past nearly forty years and can play an even greater role once a serious attempt is made at reform by our Heads of Government.

    Moreover, although Venezuela is a useful ally for countries in the region by virtue of its stronger bargaining power in the international community, CARICOM’s interests as small states and those of Latin American countries, including Venezuela’s are not always complementary as seen in the Banana Wars in the WTO. It should also not be forgotten that Venezuela continues to have border disputes with two CARICOM States (Guyana and Dominica) which have still not been resolved and for which Venezuela has not changed its position.  A further caveat to bear in mind is that given the strong ideological divide in Venezuelan politics, there is no guarantee that whichever president eventually succeeds President Chavez would be leftist in political orientation or that he or she would be as sympathetic as his or her predecessor to the region’s concerns, or be committed to continuing ALBA and its component programs. Therefore, there is some concern about ALBA’s survivability in a post-Chavez era.

    The real threat to CARICOM is not ALBA though, but CARICOM itself.  Impatience with the slow process of integration and its associated benefits at the CARICOM level has had as its natural corollary a desire to explore more seemingly attractive alternatives. It is not surprising therefore that the poorer countries in the region, and some of the larger countries like Suriname as well, have set their compass to ALBA for the superior economic security it provides and its seemingly better alignment with their interests.  Unless our Heads of Government act seriously on their commitment made at the last inter-sessional meeting to formulate a plan of action designed to reform CARICOM to make it more effective, there could be a day when all of our countries eventually turn their backs completely on CARICOM in favour of other blocs which they believe have both the ability and will to better cater to their peoples’ interests and needs. That would be a sad day.

    Alicia Nicholls is a trade policy specialist and law student at the University of the West Indies – Cave Hill. You can contact her here or follow her on Twitter at @LicyLaw.