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As a result of the opening up of the domestic and export market, Caribbean countries are now faced with increased competition from multinational/international companies outside of the region. This has been intensifying over the years as businesses endeavour to maintain their market position by staying out, or displacing imports on the basis of the level of competition, and seeking new market opportunities by exporting.
Though there are some advantages to the openness of the economies of the region, the disadvantages far outweigh them; for example, the exploitation of workers. The exportation of goods and services is another of the adversities of globalization. Caribbean countries are not gaining as much as they would like from exports as a result of the high production costs and fluctuating exchange rates. They are depending on only a few export earnings, making them particularly vulnerable to changes in the international markets. This vulnerability has also been contributing to the diminishment of the economy of many Caribbean countries. For example, Jamaica pays over 70% of all income to debt repayment and imports millions of dollars more than earnings.
The Caribbean must therefore integrate to face the threats that they are bombarded with by globalization, and work together towards better economic harmony. This will allow the region to have: access to larger domestic markets; assistance from a stronger economy; reduction of the fear of extra-regional competition; and avoid hostility. It is commendable that Caribbean states are now working towards integration once again so as to facilitate economic growth and development.
It is also important that heads of governments in the region create, “conditions that are conducive to long-run per capita income growth,” placing high emphasis on institution building, economic stability, and structural reform, which are, “important for long-term development. What matters is the whole package of policies, financial and technical assistance, and debt relief if necessary.” The components of this package are:
Structural reform which encourages domestic competition;
Education, training and research and development to promote productivity;
Strong institutions and an effective government to foster good governance;
Macro economic stability to create the right conditions for investment and saving;
Outward oriented policies to promote efficiency through increased trade and investment;
External debt management to ensure adequate resources for sustainable development.
Countries are therefore encouraged to implement these policies on a country by country basis to reduce poverty and promote policies that are pro-poor and properly budgeted – these include health, education, and strong social safety nets. A participatory approach is also encouraged, which should include the civil society and add greatly to the chances of the policies being successful.
Low-income countries should also seek help from advanced countries, as they can make vital contributions to their efforts to integrate and become a part of the global economy. These countries can help by promoting trade. This is so as they are able to: “provide unrestricted market access for all exports from the poorest countries;” encourage private capital flows, “to the lower-income countries, particularly foreign direct investment, with its twin benefits of steady financial flows and technology transfer;” and by, “supplementing more rapid debt relief with an increased level of new financial support,” [Globalization: Threat or Opportunity? IMF Staff April 12, 2000].
Globalization offers access to foreign capital, global export markets, and advanced technology, while breaking the monopoly of inefficient and protected domestic producers. Faster growth, in turn, promotes poverty reduction, democratization, and higher labor and environmental standards.
Trevor Munroe believes that revolutionary technologies is a classical industry and the Caribbean must therefore be as well positioned as any other part of the world to benefit from it. Technology has made travel cheaper and increased the possibility of migration. Communication technology has also increased significantly by cable television, fax machine, telephone and cellular telephone. This is evident in the Caribbean as in 1996; the number of international calls per Caribbean person was more than anywhere in the world. Both advances in communication and transportation have made it possible for many people to become more aware, informed and less deferential. Many people now possess the ability to run efficient businesses/organizations internationally, as well as online.
The travel industry has also been booming as a result of technological advancement. This is evident in the number of visitors vacationing in the countries of the region, helping one of our main sectors; the heart of globalization: tourism, as described by Munroe, to thrive. This enables countries to reduce their dependence on single commodities such as cocoa, cotton, sugar and bananas.
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Good idea but... Antony Felix O. O. Simbowo | May 20th, 2005
The idea is good but with the unbalanced and aunfair world trade practices, neocolonialism , poor leadership , looting of public property etc this cause may serve to benefit the few corrupt people from the developing nations of which the Carribean is a part. The majority who are generally poor and living on less than a US $ Dollar a day will sink to the oblivions of misery. Much more ground work should be laid down such as the TakingITGlobal is doing. Maybe then the developing nations will finally develop and highly reap the benefits of globalization.
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