Form 5 POB Term 1 Mon. 16th Oct.

2023

Unit 10 - ECONOMIC INSTITUTIONS Essential POB, 4th Ed. pg. 272

1. CARICOM (The Caribbean Community)

 CARICOM was established by the Treaty of Chaguaramas on 1 August, 1973
 It comprises of countries of the English-speaking Caribbean.

CARICOM rests on four main pillars (objectives): economic integration; foreign policy

coordination;human and social development; and security.

These pillars underpin the stated objectives of our Community -

 to improve standards of living and work;

 the full employment of labor and other factors of production;

 accelerated, coordinated and sustained economic development and convergence;
 expansion of trade and economic relations with Third States;
 enhanced levels of international competitiveness;
 organization for increased production and productivity;
 achievement of a greater measure of economic leverage;
 effectiveness of Member States in dealing with Third States, groups of States and entities of
any description
 the enhanced coordination of Member States’ foreign and foreign economic policies and
enhanced functional cooperation. (info. taken from CARICOM website)

https://www.youtube.com/watch?v=S2XmVjSQ9mY CARICOM explained (12 mins.)

2. CSME (Caribbean Single Market and Economy)

The CSME is designed to represent a single ‘economic space’ where people, goods, services and
capital can move freely. Its major objectives are:
 Free movement of goods and services in the region
 A common external tariff – a common rate of duty(tax) applied by all member states to non-
member states
 Free movement of capital
 A common trade policy – an agreement by members relating to international trade.
 Free movement of labour

https://www.youtube.com/watch?v=1VdXsICMC10 The CSME Story (11 mins.)

3. CDB (Caribbean Development Bank)
 This is a financial institution established by Caribbean countries.
The functions of the Bank are as follows:

 to assist the borrowing member countries to optimise the use of their resources, develop their
economies and expand production and trade
 to promote private and public investment, encourage the development of the financial upturn in the
region and facilitate business activity and expansion
 to mobilise financial resources from both within and outside the region for development
 to provide technical assistance to its regional borrowing members
 to support regional and local financial institutions and a regional market for credit and savings
 to support and stimulate the development of capital markets in the region

https://www.youtube.com/watch?v=DvBh-E9I9Ac The Caribbean Development Bank (12.10 mins.)

4. World Bank
This is an international institution established in 1947 to provide aid
for developing countries. The bank’s resources come largely from
subscriptions from the advanced countries. The bank often gives
low interest loans to countries who may need it. Loans may be granted for projects such as
infrastructural work eg. building roads, gas and water supplies, schools and hospitals.

https://www.worldbank.org/en/news/video/2013/07/19/jobs-clean-water-and-education-the-
world-bank-fund-for-the-poorest Jobs, Clean water and Education: World Bank (1.5 mins.)
5. The International Monetary Fund (IMF)

The IMF provides short-term loans to countries; it helps countries in need and sets economic targets
for them; it sets tough/stringent guidelines for economic management.
https://www.youtube.com/watch?v=3PconudEQsY About the IMF (2 mins.)

6. World Trade Organization (WTO)

They are responsible for the administration of multilateral trade agreements that are negotiated by
its members. Members of trade agreements who believe strongly that unfair practices are being
pursued by other members, can take their cases to the WTO.
https://www.youtube.com/watch?v=3Gqq2sBWai4 (5.45 mins.)

7. Organization of American States (OAS)

OAS was established in 1948 and consists of North American, Latin American and Caribbean
countries. Its major objectives are:
 The fostering of goods relations among members
 Settling disputes when they arise between members
 Assisting with obtaining and monitoring aid programmes
 Providing training through scholarship programmes.

TRADE AGREEMENTS IN THE CARIBBEAN

1. North American Free Trade Agreement (NAFTA)
In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one
of the world’s largest free trade zones and laying the foundations for strong economic
growth and rising prosperity for Canada, the United States, and Mexico. Since then, NAFTA
 has demonstrated how free trade increases wealth and competitiveness, delivering real
benefits to families, farmers, workers, manufacturers, and consumers.
https://www.youtube.com/watch?v=LaMCK-Sec7Y NAFTA Explained by CNN business (2.19 mins.)

2. Caribbean Canadian Agreement (CARIBCAN) (From Wikipedia, the free encyclopedia)

The Caribbean-Canada Trade Agreement is a Canadian government programme,

established in 1986 by the Parliament of Canada. The agreement was created to
promote trade, investment and provide industrial cooperation through the preferential
access of duty-free goods from the countries of the Commonwealth-Caribbean to the
Canadian market.
Features of the agreement also include: seminars for businesspersons of
the Caribbean region to learn more about developing a market for their products in the
Canadian market, a programme to expand exports capabilities by Caribbean
businesses and also the assistance of the Canadian Department of Industry and
Technology in the Caribbean region for regional trade commissioners with the aim of
trade promotion efforts to the Canadian market.
The "CARIBCAN’s basic objectives, then, are to enhance the Commonwealth
Caribbean’s existing trade and export earnings; improve the trade and economic
development prospects of the region; promote new investment opportunities; and
encourage enhanced economic integration and cooperation within the region."

3. Free Trade Area of the Americas (FTAA) Red Text pg. 353
FTAA is a proposed agreement to eliminate or reduce trade barriers among all nations in the
American continents (except Cuba). FTAA aims are to:
 Create trade laws that reduce poverty
 Trade policies that create employment and protect workers’ rights
 Democratic trade negotiations that involve citizen consultation and participation
 Trade policies that protect environmental and public interests
 Trade policies that support family farmers and food security
 Trade policies that encourage investment in sustainable development