What is Regional Integration?
In 1965 Sir Arthur Lewis wrote, “These islands did not
start on the federal road in a fit of idleness. They started
because it was clear that a Federation is the only possible
solution of their problems.” To better understand what
Sir Arthur meant, we must first define the term regional integration.
Although this term has been in existence for a long time, a
precise definition is not easy to formulate. Generally it refers
to the unification of nation states into a larger whole. On
one hand, regional integration can be described as a dynamic
process that entails a country’s willingness to share
or unify into a larger whole. The degree to which it shares
and what it shares determines the level of integration. There
are different degrees of integration depending on predefined
criteria.
On the other hand, regional integration also refers to an
outcome, occurring when pre set criteria are met. For example,
if the criterion for the establishment of the Organisation
of Eastern Caribbean States was only the establishment of
a Central Bank, then it could be said that we have achieved
integration. However, there are many other aspects to the
Treaty of Basseterre. When political leaders call for the
deepening of integration, they must recall the measures on
which they previously agreed and then specify the next set
of measures
Regional integration involves some compromise on the part
of nation states, but should enhance the general quality of
life for the citizens of those states. The OECS member states
have also had the longest and most sustained engagement with
regional integration. At times when the other Caribbean islands
have not seen the movement to be in their best national interest,
they have withdrawn. The OECS members have however moved ahead
to forge their own identity and have received many benefits
from those efforts.
Why did the Members of the OECS Region Agree to Regional
Integration?
For many decades the British had been experimenting with administrative
centralisation of the sugar producing colonies in the Leeward
Islands and later with the Windward Islands. These attempts
at unification were primarily for the sake of administrative
efficiency and economy. They believed that governing the islands
from one centre would ensure less spending and a smaller civil
service.
Ownership of the process of regional integration by the islands
came with the emergence of nationalist thoughts and the growth
of the labour movement. There was recognition that integration
would lead to development, and with that realisation the integration
movement, though it has faltered, has been a persistent feature
of the economic, political and social landscape of the region
for more than a century.
The thinking behind the pursuit of regional integration as
a developmental path was the fear that small islands could
not survive on their own because of the high costs associated
with providing all the functions of government. This was also
compounded by the fear that these islands could not face the
rising challenges of competition brought on by increasing
globalisation. For these reasons, the focus of regional integration
has been on functional cooperation with an emphasis on the
economic aspects. This would be pursued in two ways. Firstly,
through the economies of scale afforded by harmonisation on
common external services. Secondly, through the establishment
of common infrastructure that would transcend national interests.
The aim was to foster deeper integration among member states
while at the same time ensure the widening of the movement
regionally and internationally. This has included pursuing
a monetary union in the OECS, joint missions overseas and
a free trade area.
At various times other issues have taken precedence over regional
integration. This was the case when most islands were pursuing
independence. The governments concentrated on national issues
as they recognised that “integration does not constitute
an entire development policy by itself, but should be considered
as one possible element of an overall policy which a country
may choose, as providing the institutional and political framework
for the pursuit of a number of other development policies
in co-operation with partner countries in a regional context.”
Yet, they have come to the realisation that regional integration
is important for their survival both regionally and internationally.
The reason informing the creation of an OECS region was
the need to provide services that could be performed more
efficiently at a decentralised level so that members could
focus on building national capacity elsewhere. Through the
removal of duplication, the utilisation of scarce human resources
at the technical level would ensure the efficiency envisaged
in the Treaty.
Perceptions of the Eastern Caribbean territories as ill
equipped to assume internal administration, as poor and dependent,
and most of all, as countries that could not contribute to
the integration of the wider Caribbean, have served a catalyst
to get them focused on putting their own business in order.
They can therefore now have a stronger voice within the wider
integration movement.
What are some of the gains of Regional Integration?
In 1965 Sir Arthur Lewis advised that “… a common
nationality, a common currency and common representation abroad”
would enable these islands to speak with a single voice.”
The OECS territories started by putting these functional areas
in place and have reaped the associated benefits. Some of
the gains are as follows:
Institutional Building and Strengthening
It was with this vision of its own destiny that the Organisation
of Eastern Caribbean States set up the OECS Court of Appeal,
the Eastern Caribbean Central Bank and the OECS Secretariat.
These supranational institutions were all designed to facilitate
good governance. They were also aimed at achieving efficiency
gains through the enhancement of the commitment to harmonisation
and integration, protection of the integrity of the region;
reduction in transaction costs though the provision of common
services, and effective use of scarce human resources.
Coordination of economic and social policy
The mandate of economic and social development for all members
is implicit in the Treaty of Basseterre. To give support to
this area, the Treaty entrusted the care of this function
to the Economic Affairs Committee; soon to be renamed the
Economic and Social Affairs Committee. This newly reconstituted
committee will oversee the economic development of the Eastern
Caribbean currency union and ensure that it translates into
social development.
Some of the areas where gains have been realised include
the following:
• Joint supervision of the banking and financial sectors.
• Cost–sharing on regional projects such as the
regional drug service.
• Joint development of financial and capital markets.
• Pooling of technical expertise.
• Joint representation at international conferences
and meetings.
• A stable financial region.
• A regional regulatory framework.
Harmonisation of External Relations
Another focus of integration is the maximisation of the benefits
internationally. For this reason there are joint overseas
missions and embassies. In addition, the territories are included
in the Regional Negotiating Machinery at the CARICOM level,
which speaks with one voice on trade issues for the region.
Governance
A very important aspect of regional integration is how it
becomes accountable to the people of the region. A structure
has been put in place with the OECS Authority being the highest
decision making body in the region. The OECS Authority consists
of heads of government all the member states. It meets twice
a year to make joint decisions on development.
There is a move towards community governance and participation
aimed at ensuring that all citizens will be allowed to take
responsibility for the continued evolution of the integration
movement. National issues will become sub-regional issues
and the benefits of regionalism will become more tangible
at the national level. No longer will interests at the national
level be seen as competing with those at the regional level
or vice versa. Such a move is necessary to ensure that those
issues considered as important in the smallest Member State
of the OECS, will be articulated within the wider regional
framework of CARICOM and resounded globally. We can only achieve
governance capacity if the erected structures can accommodate
the representation of the views of all its citizens.
Conclusion
Regional integration has proven to be a very good development
path for the member states of the OECS. To a great extent
regionalism has focused on economic management of the islands,
but its benefits can be seen in other areas. We have been
able to speak with one voice at the level of CARICOM and at
the international level. We have proven that by joining together
in a number of areas, there can be gains that we would not
have achieved on our own. Regionalism has contributed to the
development and sustainability of our democratic system of
government. It has also been responsible for our economic
growth and stability. This stability has spared much of the
social strife associated with unstable economies. The steps
towards deepening regional integration, with the introduction
of freedom of movement, will only make our region stronger
as we face the future.
(Submitted by Dr. June Soomer, Adviser,
Strategic Policy and Planning Department, ECCB, as part of
the Eastern Caribbean Currency Union’s Financial Literacy
Month Programme Oct. 2003 - “Building Strong Economies
Depends on You and Me”)
Click here for
the printer friendly version. |