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Bahamas and Caricom: potentially good business

28 January 2008

The Bahamas has an “odd-man-out” relationship with the Caribbean Community and Common Market (Caricom)

It is a member of the Caribbean Community, but not the Common Market. The Bahamas has also opted not to participate in Caricom’s Single Market - a process that is steadily developing among other member states. ut, since January 1^st this year, the Bahamas Prime Minister Hubert Ingraham has been Chairman of Caricom and he will retain this office until June 30^th. In this role, he will chair meetings of the three-man heads of government Bureau, which along with the Secretary-General, facilitates implementation of Caricom’s decisions and provides guidance to the Secretariat on policy issues.

Some observers may regard it as odd that a head of government, whose country is not a member of the common market and which has opted not to participate in the Single Market, will be chairing meetings of a Bureau that will be required to deal with decisions and give policy guidance on matters affecting the Single Market.

The truth is that it is odd.

But, it is an oddity that reflects the evolution of Caricom and an innate desire by successive governments of the Bahamas and other Caricom countries to maintain the closest possible relationship with each other and to involve the Bahamas in all matters affecting Caricom even though the Bahamas may not be directly involved.

Almost every Caricom government has accepted that the time will come when the Bahamians will integrate more deeply with Caricom, but it is generally recognised that the time is not yet ripe, and it would be foolhardy to push them... Pushing the Bahamas would simply give scaremonger within the Bahamas society an opportunity to fracture – if not break – the relationship that presently exists between the Bahamas and Caricom.

And, there are many such scaremonger as was evident when the previous government, headed by now opposition leader Perry Christie, undertook a public consultation to try to determine the national attitude to the Bahamas joining the Caricom Single Market. ut, in reality, there is benefit in a close relationship between the Bahamas and other Caricom countries in a world of globalisation and trade liberalisation where industrialised nations are setting the rules for investment and trade, including trade in services which is vital to the Bahamas.

When the Organisation for Economic Cooperation and Development (OECD) and the Financial Action Task Force (FATF) – two organs of the world’s richest nations – black listed several countries including the Bahamas, as non-cooperative, it was a joint battle that led to a retreat by the OECD on the so-called ‘harmful tax competition initiative’ and the eventual withdrawal of the offensive label, “non cooperative”.

While individual national action was necessary both at the domestic and international level – and the Bahamas authorities played a full and meaningful role – it was joint action by Caribbean countries in formulating and executing a response that persuaded OECD governments to rein in the OECD and the FATF.

Increasingly, as large countries and groups of countries press for Free Trade Agreements or Economic Partnership Agreements with developing countries, they will do so regionally. And, they regard the Bahamas as part of the Caribbean. This is a reality reflected in the Bahamas membership of the Latin American and Caribbean group in United Nations organisations and in its grouping in the Caribbean within the Organisation of American States.

The truth is that while the region has the intellectual capacity to negotiate it lacks the economic muscle to withstand the pressures of larger countries. In this connection, neither the Bahamas, nor any other single Caribbean Community country can cope alone with the negotiations for these agreements. They all do better collectively. ut, erasing fears and building confidence will not occur overnight, particularly as the transportation links between the Bahamas and many Caricom countries remains poor. Essential to understanding and integration is interaction between peoples. It is only in such interaction that people recognise their similarities and the basis for building relationships.

Last year, the Prime Minister of the Bahamas was given responsibility for functional cooperation within the quasi-Cabinet of Caricom Heads of Government. This was a positive development in the process of deepening the relationship between the Bahamas and the rest of Caricom.

Functional cooperation in tourism, health and education stand to benefit the people of the Bahamas and Caricom collectively. The Prime Minister of the Bahamas can now add a new fillip to this aspect of the Caricom relationship which has long been one of its principal objectives. Exploring improved transportation links is as important to functional cooperation as it is to integration. Stuck outside of the ring of daily inter-mixing within Caricom, the people of the Bahamas would be justified in continuing to believe that they are closer to the United States that they are to the Caribbean.

Bahamian companies – especially its financial services sector – have neglected the opportunities for development and expansion that participation in Caricom provides and the Single Market almost guarantees.

The Bahamas government will host the Inter-sessional meeting of Caricom Heads of Government on March 7^th and 8^th. It would be a good opportunity for initiatives to strengthen the areas of functional cooperation for which Mr Ingraham has responsibility. Transportation links to improve trade and people links would be a good for business and good for the economies of the Bahamas and other Caricom countries.

By Sir Ronald Sanders

(The writer is a business executive and former Caribbean diplomat)

Responses to: ronaldsanders29@hotmail.com