Caribbean economic institutions (Part II)
Yvonne Harvey, Contributor

Teachers from Charlie Smith and Trench Town High Schools walk through sections of Trench Town and Jones Town in Kingston as part of protest action to rid the area of violence recently. - Norman Grindley Photo

THIS WEEK, we will continue to look at the economic institutions of the Caribbean. Manufacturers' associations is the first on the list.

THE MANUFACTURERS' ASSOCIATION

You will remember that last week we outlined the functions of chambers of commerce. Like the chamber of commerce, the manufacturers' association is a trade association. However, whereas the chamber of commerce is made up of a number of businesses, each manufacturers' association consists of people from similar businesses. Examples of manufacturers' associations include, the Garment Manufacturers' Association and the Citrus Growers Association.

Persons who belong to the association are exposed to an ideal forum for exchanging information, discussing matters of concern and finding solutions to these matters. In addition, this association is a common body for carrying out wage negotiations with trade unions.

The main aim of the manufacturers' association is to create codes of practice that are to be followed by their members. Another aim is to make their collective views and beliefs heard by Government. The association gives advice to the Government and makes recommendations.

In addition, the association seeks to widen the trade for all its members through trade exhibitions and advertising. Widening of trade for its members results in a widening of trade within the region (CARICOM).

The association also encourages and assists members to develop and use efficient methods of manufacture. Proper standards of safety is also encouraged.

I hope you got those points clearly. Good. Now let's move on.

THE CARIBBEAN COMMUNITY (CARICOM)

This body was formed in an attempt to solve some of the region's development problems. It officially came into being on July 4, 1973, although its early beginnings can be traced back to 1968 when the Caribbean Free Trade Association was formed. The body comprises all the countries of the English-speaking Caribbean.

CARICOM was established with specific aims and objectives in mind. Some of these are:

(a) The establishment of a regionally-known market, which is called the 'common market'.

(b) Economic, cultural and social integration and development which includes encouraging the use of raw materials among member states and encouraging regional trade in agricultural products.

A major focus of CARICOM is the Caribbean Common Market (CCM). You may wish to do some research on this group arrangement. It may be useful also to research the functions of the different parts of the structure of CARICOM, which has at the top, the heads of government conference. Next comes the common market and, finally, the CARICOM secretariat.

In keeping with the overall objectives of CARICOM, in 1994, at the Caribbean heads of government meeting, the Caribbean government agreed to establish a single market and a single economy, known as the CARICOM Single Market and Economy (CSME). The main aim of the CSME is to allow free movement of people, capital and services across the region. Now, for our final institution for this lesson.

THE CARIBBEAN DEVELOPMENT BANK (CDB)

This is a regional financial institution established in January, 1970. Its headquarters are located in St. Michael, Barbados. The bank was established by Caribbean nations to provide financing for development purposes in member States. All members of CARICOM are beneficiaries of the CDB and some non-CARICOM countries have also been granted member status, for example, Turks and Caicos Islands and The Cayman Islands.

The bank makes loans to member states for social and economic development in tourism, agriculture, health and education at low rates of interest. The CDB also assists local development banks, which may be too small to deal with major projects.

Jamaica has been one of the recipients of the CDB. Assistance has been given to Jamaica for agriculture and special assistance was given after Hurricane Gilbert in 1988.

That's it friends. Next week, we will consider the remaining Caribbean economic institutions on the syllabus. Now, try this question.

(a) What is a manufacturers' association? (2marks).

(b) Outline TWO main aims of CARICOM (4marks).

(c) What is the main function of the Caribbean Development Bank (CDB)? (2 marks).

Total: 10 marks.

* Yvonne Harvey teaches at Glenmuir High School.