| July 23, 2008 issue | |
Guyana |
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CSME on shifting sands |
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First of 2 parts |
Launched on January 1, 2006, the CSME is intended to facilitate the pooling of the region’s financial, human and natural resources in order to promote regional development and build the economic capacity required to effectively counter increasing global competition. While progress has been made on the single market component of the CSME, it was anticipated that the single economy component would have been ready by 2015. However, following the conclusion of the 29th CARICOM Summit held in Antigua in early July, the scheduled inauguration date seems likely to be postponed. |
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"The CSME is intended to...promote regional development and build the economic capacity required to effectively counter increasing global competition" |
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One of the major areas of disagreement stems from the free movement of CARICOM nationals, especially skilled individuals, to live and work anywhere in the region, and be afforded benefits such as health care and education similar to those of nationals of the countries to which they migrate. In addition, concepts of a single Caribbean currency, common monetary policy and integrated judiciary remain a distant dream, which may never come to fruition. The truth is: the challenges of integrating a region with diverse social, economic and political characteristics will most likely persist, even as individual countries strive to leverage the benefits of the proposed union. The reality is: there does not seem to be a willingness among the various countries in the region to fully embrace the CSME, which if implemented, will transform the region into a unified economic bloc. On the drawing board, it is anticipated that this development would attract an increasing flow of foreign investments into the region and create a myriad of investment opportunities in a wide range of areas such as manufacturing, real estate, hotels and hospitality, infrastructure and financial services. Although the idea for the CSME was born 19 years ago in 1989, arrangements to proceed with the establishment of the regional body were finalized in 1992 by the Heads of CARICOM governments. Thirteen member states – Antigua & Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, and Trinidad & Tobago are either already members or will become members of the CSME. Bahamas and Haiti, the two other CARICOM members, are not expected to be part of the CSME. Neither are Anguilla, Bermuda, British Virgin Islands, Cayman Islands and Turks & Caicos Islands – the associate members of the regional body. The establishment of the CSME comes on the back of almost a half of a century of struggle for regional integration which dates back to the formation of the West Indies Federation in 1958. Following the collapse of the Federation in 1962, CARICOM was born in 1973 and remains the impetus for the CSME. In principle, the CSME would allow its combined membership, which has a population of six million to reduce the challenges faced by the region in the face of globalization which has spurred the creation of increasingly larger trading blocs around the world. It will facilitate the creation of pan-Caribbean companies and brands and minimize the structural deficiencies and limitations of size, particularly in relation to the smaller member countries. Essentially, members of the CSME are expected to operate within a single economic space which will stimulate greater productivity and efficiency, higher levels of domestic and foreign investment, increased employment, and growth of intra- and extra-regional trade. The CSME is built on five pillars – the free movement of capital; the free movement of goods, services and people; the establishment of a common trade and economic policy; harmonization of economic, monetary and fiscal policies; and a common currency. At a theoretical level, regional integration will take place at two levels: the single market and the single economy. The single market component which is already effectively in place consists of freedom of movement of goods, services, capital, businesses and skilled labor. However, the single economy component which is more challenging will involve harmonization of policies, laws, and regulations; enhanced monetary cooperation, and development of common external economic policies. Incidentally, the CSME was born during a period of strengthening economic growth in the Caribbean. Last year, average economic growth in the region – billed as the last frontier for investors - was among the highest in almost two decades, fuelled by higher investment flows and a surge in economic activity. This, in spite of slowing economic growth in the US and Europe – the region’s largest trading partners. According to the OECD, in recent years countries in the Caribbean Rim have made significant steps towards liberalization and regulatory reform by recognizing the benefits of foreign direct investment and the importance of creating a favorable environment for private investors. Countries such as Canada, the United States, China and the United Kingdom have been actively engaging Caribbean governments and the private sector in enhancing business relationships. The impending formalization of trade and investing arrangements is expected to spur growth in the region. Canada’s Prime Minister, Stephen Harper, for instance, referred to the CSME as an “indispensable foundation on which to build national and regional endeavors which can lead to fair and sustainable growth and prosperity,” while visiting the Caribbean last year. He added that Canada is committed to playing a bigger role in the Caribbean and indicated that "the push for free trade between Canada and the 15 Caribbean countries that are members of CARICOM is driven by his Government’s commitment to revive and expand Canadian political and economic engagement in the region." In the meantime, the United States has accelerated its push into the region under the Caribbean Basin Initiative. Deputy Assistant Secretary of State Daniel Fisk said last year that the Caribbean countries are a “high priority” and that the US is a “willing partner in the effort to revitalize their economies, strengthen their democracies, provide opportunity to their citizens and enhance their security." European countries and businesses, particularly from the UK, which have had a historical relationship with the Caribbean countries, are also at the forefront in pursuing investment opportunities. And so has China, a relative newcomer to the region, which has provided special incentives to Chinese businesses operating in the Caribbean. In spite of the emergence of positive signals for the region, the lack of co-operation among governments could dampen the enthusiasm of those who would like to fuel its development. Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines, hit the nail on the head in an interview reported in the Jamaica Observer, when he says, CARICOM will soon be forced to transform itself from a “ramshackle political administrative apparatus” in which several of its member states jealously guard a vaunted and pristine sovereignty.” Therein lies the main hindrance to Caribbean integration and the implementation of the CSME. |
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CRIME WATCH |
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Money changer shot, robbed |
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Georgetown — Parsram Parmanand, a 19-year-old money-changer was shot in his abdomen by one of two gunmen on July 16 as he was about to leave his home in Kitty for work. After the shooting, the gunmen fled on foot with some $300,000 in local and foreign currency that Parmanand handed over to them. Police have since recovered a .25 spent shell just outside the residence where the shooting took place. Parmanand was admitted at the Georgetown Hospital.
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Ogle road shooting, 4 held |
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Georgetown — The police have detained two women and a man for questioning in connection with the shooting of a vehicle on the Ogle airstrip road on July 15. They have also found a car at a Norton Street home, which they suspect was used to transport the gunmen. And a man who was acting in a suspicious manner at the Georgetown Hospital where the injured driver was being treated was also arrested by police stationed at the Hospital. Meanwhile, the police are on the hunt for ‘Trini’, ‘Yankee’, ‘Capone’ and ‘Sandman’, who they say they want in connection with the incident.
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Prisoner died from injuries |
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Georgetown — A post mortem examination on the body of Edwin Niles, the prisoner who was allegedly beaten at the Camp Street jail, revealed that he died from a blood clot in the lungs due to burns about the back and a fractured left arm. He died at the Georgetown hospital on July 11 where he spent nine days.
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Businesses raided |
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Georgetown — Fullworks Motor Spares at Gordon Street, Kitty, was robbed on July 18 by bandits posing as customers. They escaped with over $400,000 in cash and jewellery.
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Taxi driver settles for $100K |
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Georgetown — Taxi driver Rabindranauth Baijnauth who was allegedly robbed at gun point by a 15-year-old student on July 10, accepted compensation in the sum of $100,000 from the teenager’s family and in turn did not offer any evidence against the teenager when the matter came up in Court on July 18. However, the teenager who was charged with unlawful possession of a firearm, unlawful possession of ammunition and robbery under arms was granted $170,000 bail in the firearm and ammunition matter and will return to court on September 12 to face those two charges.
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Shot and killed in Barbados |
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Georgetown — A Guyanese man, Christopher Anthony Griffith was shot and killed at a restaurant and bar in Barbados last Saturday night while Silochani Samuels, also Guyanese, was shot in the arm in the same incident. |
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Guyana's first kidney transplant done at GPH |
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Georgetown — Medical history was created in Guyana on July 12 when the first ever kidney transplant in the country was done at the Georgetown Public Hospital. The successful surgery was carried out by a team of doctors from the USA headed by Dr Rahul Jindal, lead attending surgeon. The patient, Munesh Mangal and donor Leelkumarie Mangal, his mother, are reportedly doing fine and have already been discharged from the hospital.
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$$ for organic producers |
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Georgetown — Northwest Organics received a cheque valued $2.3M from Minister of Finance Dr. Ashni Singh to purchase machinery to enable mass production in order to supply a new market in Trinidad. According to the Government Information Agency (GINA), Minister Singh commended the organization for the excellent organic products it produces under the name Northwest Organics, such as cassava bread and casareep, Crabwood oil, and Crabwood oil soap, cocoa sticks, and peanut butter which are retailed at leading supermarkets in Georgetown. GINA stated that the money will be used to acquire five choppers/grinders, five diesel engines with frame/belts and five tillers with gasoline engines to facilitate the production of a larger quantity of goods since the company has been requested to export its products to Hi Lo Supermarket in Trinidad and Tobago. |
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