It is with a tremendous sense of satisfaction and excitement that I address you today in my capacity as Chairman of the OECS Authority. 1 am very satisfied with the progress we have made in fostering the integration of these mini-states which belong together - geographically, socially, culturally, economically and politically.
The most cursory study of the member states of the OECS reveals the close historical relationship between these islands and the cultural and social commonalities that they share.
This is further supported by basic economic analysis which suggests that it would be a monumental waste of resources if these micro-states attempted to take on the world INDIVIDUALLY as producers of goods and services, and advocates for varied causes in the international forum.
Competitors benefiting from economies of scale would simply sweep their small producers out of the marketplace. Similarly it would not be cost effective to maintain an individual presence on the international scene or set up 8 different institutions to do the same Job in a small geographical area.
Our ancestors and predecessors understood this reality and it would be remiss of us not to acknowledge their common sense in co-operating with each other, sharing institutions and carving out a common space long before the Treaty of Basseterre in 1981. 1 therefore salute those who have gone before us, for laying the foundations on which we must build.
Indeed the success of the Treaty of Basseterre in achieving co-operation, unity and solidarity in ventures like creating regional institutions, establishing Joint overseas representation and taking collective action is due to the groundwork which all our people from the humblest workers to the elected leaders had meticulously carried out.
I am therefore understandably excited about launching this latest exercise in Good Governance. What we are doing here today is to continue the tradition of involving the people of the region in the decision-making processes that affect their lives. It is about charting our own future.
The challenge before us is the deepening of the integration movement by establishing an Economic Union. Let me make two important points from the onset. One is that I am convinced that Economic Union is the logical and inevitable outcome of the journey that we as a people In this Eastern Caribbean are making towards integration. Second, is that we must involve the people in every critical decision we make on the way. The most effective way of doing so is through the practice of Good Governance.
In my capacity as leader of an enlightened Party and a progressive country, I am totally committed to the principles of Good Governance as a pre-condition for sustainable social, economic and political development. As you know, the principles of Good Governance include:
- Accountability
- Transparency
- Responsiveness
- Effectiveness and Efficiency
- Participation
- Consensus
- Equity and Inclusion and
- The Rule of Law.
Hence, this public dialogue is an exercise in Good Governance: and I would invite all the stakeholders in the development of the OECS to participate fully in the deliberations that will determine the future of this region.
Distinguished ladies and gentlemen, you will agree that our collective history has taught us that when conditions are worsening, we need to band together in order to survive and prosper.
You already know that the globalization process is taking place at a rapid rate. Recent events have exposed us to the realities of the new dispensation.
For example, in December 2007 we concluded negotiations to form an Economic Partnership Agreement between the EU and CARIFORUM, including all CARICOM and OECS nations. The argument behind what some would consider a "hasty decision" was that since 1975 and the start of the LOME Agreements, the post-colonial economic relationship between Europe and its former colonies have changed dramatically. The model of Development economics that gave birth to LOME died a natural death by 2000.
Simultaneously, whereas the GATT offered some protection, the new WTO provisions after 1994 stressed reciprocity and free trade at all costs. Between 2000 and 2007 some concessions were granted; but the negotiated WTO waiver expired on 31st December 2007 and could only be extended at considerable costs to CARICOM, including challenges from other countries not enjoying the benefits of preferential treatment.
The EPA therefore had to comply with stringent WTO rules. Even though it exposes Caribbean producers to severe competition, it gives CARICOM duty-free and quota-free access to European markets not only for goods but also for services.
The point I am trying to make is that we are rapidly being exposed to the harsh realities ©f reciprocal international trade. We cannot forever remain dependent economies receiving special protection and preferential treatment from great powers. This is therefore a wake up call to get our act together, to integrate and become more competitive. We either swim together or drown one by one. Time is not on our side.
Mr. William Demas of happy memory was one of the foremost advocates of the regional integration movement He was of the notion that whenever the occasion was opportune for moving forward with the integration business, we must seize the time. My advice to you is to seize the time NOW.
Ladies and Gentlemen,-allow me to remind you that the objectives of the Treaty of Basseterre are to:
- Promote cooperation
- Assist member countries with obligations with respect to international law
- Promote joint overseas representation
- Promote economic integration
- Set up common institutions and take collective action on key issues affecting the lives of the citizens of the sub-region
We have been faithful to this commitment and can today rejoice in our achievements. Among these would be:
- The strengthening of the Eastern Caribbean Supreme Court the Treaty. The Court last year celebrated its 40th Anniversary. Only last Monday we met to place on record the service that the Court has provided for the region. The Supreme Court is on any view a Model for regional integration, d of the rich and enduring history of the Court and its achievements.
- The Eastern Caribbean Civil Aviation Authority has stood the test of time and once again arrived on the scene before the signing of the Treaty and enabled the OECS countries to draw on a reservoir of expertise in Civil Aviation matters.
- The Joint Procurement of Pharmaceuticals which has benefited our small States in the savings achieved by the purchase jointly of medical supplies for our people. The only other body of its kind in the world is to be found in the Middle East. Representative came from that part of the world to our Secretariat two year ago to exchange notes with our personnel and help us fortify the experience we had gained over the years. And who knows, in this era of rapidly rising prices, what could be the next version of this important initiative?
- The Eastern Caribbean Telecommunications Authority. The experience here is already well known in the reduction of telephone rates and greater access by our people to the benefits of modern telecommunications. There is much that can be expected in this sphere as this body, the only multi-state Telecommunications Authority in the world, moves to fine-tune its modalities. It seeks to do this to create the environment for the people of our region to take full advantage of the knowledge-based economy by a well equipped Regulatory body.
- Co-operation in a range of activities in Education, Health, Sports, Agriculture, Tourism, Expert Development, the environment and maritime matters.
- Most important, the establishment of a Central Bank that has earned for itself the respect and admiration of the international community.
The operative word here is co-operation. As I have illustrated, the history of the OECS to date provides us with unique institutions and outstanding examples of cooperation in the interest of our collective survival.
What then of Economic Union? Here I wish to draw attention to some of the main features of the Union. The Chairman of the Task Force has already dealt with some of the key instruments, and there will be further information and discussion as we embark on the dialogue.
What I wish to point out is that an Economic Union represents the final stages in the process of regional integration. I have already drawn your attention to some of the benefits that have accrued to us from the integration, process.
The main objective of the Economic Union is to create a Single Economic and Financial Space comprising participating Member States and by so doing promote their greater growth and development The establishment of this Single Economic and Financial Space requires the free movement of labour, the free circulation of goods, the right of establishment and freedom to trade in services to be guaranteed to the nationals of the participating States.
With respect to the free movement of labour, the Draft Treaty provides for the abolition of discrimination based on nationality between workers of the member states as regards employment, remuneration, and conditions of work and employment. In effect it grants persons the right to move freely within the territory of a member state to accept offers of employment. Similarly, goods produced within the Economic Union will be entitled to move freely within the Union.
The Draft Treaty also requires members states to harmonize their policy programmes in fiscal, monetary, trade, international economic relations, social and environmental matters. Although these may appear to be very far reaching, and they certainly are, I should advise you that we are already well on the road to Economic Union by the many steps we have already taken in so many of the areas Just cited.
For example, if we look at the monetary and fiscal aspects, much of these have already been in place because of the Monetary Council of the Eastern Caribbean Central Bank to which policy we have committed ourselves. We are ahead of the rest of CARICOM in the simple fact that it is possible to travel throughout the OECS using one currency!
I should also add that for the first time, the Authority - that is the Heads of Government - as the supreme policy making body of the Economic Union, will have the power to enact legislation within the legislative competence of the organization. It therefore means that the Parliament of the various countries will, by delegating authority, make provision for this to be achieved. Another new feature provided by the Draft Treaty is an OECS Assembly, it represents a similar attempt at what is envisaged in the CARICOM Regional Parliament. The Assembly will comprise members who are elected representatives of the Houses of Parliament.
Each Sovereign Member State of the OECS will be entitled to appoint three elected Members of Parliament to the Assembly, one of which must be the Leader of the Opposition. All other Member States will be entitled to appoint two members, one of which must be the Leader of the Opposition.
The appointment will be for two years or until the next general election for the national parliament or legislature whichever period is shorter. The OECS Assembly or Parliament will meet to consider any proposal that is submitted to it and will report to the Authority its decision on the matter.
A significant departure from the present state of affairs is with respect to the Secretariat of the OECS, which will become an OECS Commission. The Commission will comprise the Director General of the OECS and one Commissioner of Ambassadorial rank named by each member state.
We could say that the most significant innovation of the Draft Treaty is the empowering of the OECS Authority to enact legislation in respect of certain critical areas.
In conclusion, let me remind you that we will have a year long process of public consultation at which we can expect to hear the views of a cross-section of our people throughout the islands. We know that there is still some lingering concern at the prospect of joining our island spaces into a Single Economic Space where people, goods and capital can move freely across the borders. As the public dialogue proceeds, details of these proposals will be further explained and opportunities will be provided for clarification and for your contribution to this exciting exercise in social, economic and political engineering. At all times keep in mind that it is you the people who have the final say as to how we move on and how fast we move.
Up to now you have served us well in adopting a critical stance and making your views felt within the framework of consensus seeking. This process has brought us to this point. My advice to you is to seize the time. Let us dialogue in earnest and reach a conclusion with the agreed timeframe.
As I said before we have achieved much and I have no doubt that we shall achieve even more in the years ahead. Our objective must remain co-operation in pursuit of a better standard of living and quality of life for our people. If we continue as we have been doing, the time will soon come when the OECS will be universally recognized as a model for regional integration and find itself in the enviable position of deepening and broadening the integration movement BY INVITATION.
I thank you for listening and I look forward to a lively public discourse on the Single OECS economy. |
