Caribbean Economic Institutions Part III
Yvonne Harvey, Contributor

Lessonjulle Dobney (left), a medical technologist of the Spanish Town Hospital explains bacteria testing to students at a career exposition at the José Marti Technical School on Wednesday, March 23. - Ricardo Makyn Photo

THIS WEEK is our last lesson on the Caribbean economic institutions. I will begin by considering The International Bank for Reconstruction and Development (IBRD).

THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD)

This institution is also known as the World Bank. The bank began operating in June, l946. It's purpose is to give loans for productive reconstruction and development projects. Funding for projects comes from money contributed from member countries, as well as through financial agencies and institutions. Developed countries for example the U.S.A. and the U.K., contribute large sums.

The bank's first loans were made in 1947 for reconstruction in four European countries. After 1948, the bank turned its main efforts to development lending.

Funding obtained by a country through the IBRD can be used to meet infrastructure, health, education and other needs.

The World Bank is also a major source of funding for the CDB.

INTER-AMERICAN DEVELOPMENT BANK (IADB)

This bank was founded in 1959 and is composed of member countries in North and Central America and the English and Dutch speaking Caribbean. The aim is to promote individual and collective development of member countries through financing economic and social development projects. They also give technical assistance and help to implement the objectives of the Inter-American system.

The bank's activities include:

* Giving loans to governments, the public and private bodies for special development projects. Loans are given at attractive rates of interest for 10-25 years and must be repaid in the currency that the loan was
given in.

* Special funds are also given for economic and social projects which require special treatment such as lower interest rates and longer repayment than regular loans.

* Special assistance to Latin America.

ORGANISATION OF EASTERN CARIBBEAN STATES (OECS)

This institution is made up of the lesser developed countries of the CARICOM group, who signed a treaty in 1981. One of the main reasons for the OECS was that member countries felt that they were getting a raw deal from the larger and more developed countries within CARICOM. The countries involved felt that the OECS would better serve their needs than CARICOM. It was also felt that if they could speak with one voice, the voice would be heard. The headquarters of the OECS is in St. Lucia and the institution was formed with the following in mind:

* Economic and political integration.

* The creation of a single currency (the EC dollar) which would be managed and controlled through the Eastern Caribbean Central Bank (ECCB).

* Trading arrangements among themselves which would be reasonable and workable.

* Common policies in particular areas such as agriculture, hospitality and tourism. Such policies must encourage the free movement of capital and labour from one state to the next.

* Common practices and procedures in industrial policies.

* The establishment of a single central bank.

ORGANIZATION OF AMERICAN STATES (OAS)

Member countries are N. America, Central America, S. America and the Caribbean. This institution was established in 1948 and has its headquarters in Washington. It's main objectives are:

* Fostering good relations among member states.

* Settling disputes when they arise

* Assisting with maintenance of the cultural heritage of member states.

* Assisting with obtaining and monitoring aids programmes.

* Providing training through scholarship programmes.

Well friends that's it for the Caribbean economic institutions. For each institution, ensure that you can say who the member countries are, when and where it was established and most importantly, be able to outline its aims or objectives and its functions.

Next week we will look at another topic from this same unit. The topic is NATIONALISATION. Among other things, we will outline the advantages and disadvantages of nationalisation. Try to find a concise definition of nationalisation, as well as some advantages and disadvantages.

Bye for now. See you next week.

* Yvonne Harvey teaches at Glenmuir High School.