Caribbean economic institutions (Part I)
Yvonne Harvey, Contributor

Montego Bay High students during class. - Claudine Housen Photo

HI FRIENDS. Today, I will begin by giving you a possible answer to part (c) of last weeks assignment. In the question, you were told that a country has a balance of payments of US $M +300 and you were asked to draw up the official financing account to show how this may be financed. Here is one way.

The balance of payments is now balanced by eliminating the surplus. Please note that there are other ways of eliminating the surplus as indicated in last weeks lesion.

Now for the main focus of this lesson. Unit X111 ­ Regional and International Business Environment: Caribbean Economic Institutions. The specific objective related to this area shows that the candidate should be able to identify the major economic institutions associated with, or which are of the Caribbean and state their functions. We will begin with the Chamber of Commerce.

CHAMBERS OF COMMERCE

Caribbean Chambers of Commerce were founded by the private sector in the 19th century. They now exist in the private and public sectors. A Chamber of Commerce is a body or association made up of business people who are involved in commerce or trade. However, the Chamber also has members who are not directly connected with commerce or trade, but are there as advisers, e.g., lawyers and engineers.

The main purpose of the Chamber of Commerce is to represent the concerns of, promote and protect local trade. Within the Chamber, various committees are formed to consider and report on a variety of problems. Trade journals and bulletins on these problems are issued by the Chamber.

MAIN FUNCTIONS

1. To promote trade, especially in the area where the Chamber exists, but also trade in the country as a whole and foreign trade.

2. Discussion of legislation affecting trade, with the objective of supporting or rejecting it.

3. To promote measures that will benefit and protect the trading interests of members and trade in general.

4. To settle disputes arising out of trade, commerce or industry.

5. To promote the use of efficient and modern manufacturing methods and the adoption of proper standards, e.g., safety and advertising.

6. Chambers assist in securing markets for raw materials and finished goods.

7. Chambers also collect and hand out statistical and other information on areas that affect members.

8. To cooperate with other Chambers of Commerce.

9. To review the impact of customs and excise duties and foreign exchange regulations.

Please note that Chambers of Commerce should not be confused with trade associations. While Chambers of Commerce represent businesses of all kinds, trade associations represent the interests of one particular group. Now let's move on.

THE CARIBBEAN ASSOCIATION OF INDUSTRY AND COMMERCE (CAIC)

This was established in February 1955 and has its headquarters in Barbados. The CAIC is like the Chamber of Commerce, but whereas the Chamber exists in individual countries, the CAIC exists at the regional level and is made up of various Chambers.

The CAIC:

1. Allows members to address issues associated with their businesses

2. Represents concerns to government

3. Sponsors symposiums and trade fairs.

Among its functions are the following:

1. To foster economic and social development of the region by promoting trade, commerce, agriculture, industry and tourism.

2. To collect and disseminate information that deals with trade and business, e.g,. about the production and distribution of CARICOM products

3. To promote research and education of producers in trade, business, commerce, industry or manufacturing.

4. To consider, discuss and take action on matters affecting trade, commerce industry or manufacturing.

5. To assist in settling disputes between firms from different countries.

That's it for now. Next week we will continue our look at Caribbean Economic Institutions. We will start with Manufacturers' Associations and then move on to CARICOM. You can prepare for this lesson by reading up on these areas and perhaps writing brief notes on them. See you next week.

* Yvonne Harvey teaches at Glenmuir High School.