Transcript JOB TITLE: Specialist, Private Sector Facilitation

REGIONAL INTEGRATION AND
PRODUCTIVE AND INDUSTRIAL DEVELOPMENT
CARICOM MEMBER STATES
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ANTIGUA AND BARBUDA
BAHAMAS
BARBADOS
BELIZE
DOMINICA
GRENADA
GUYANA
HAITI
JAMAICA
MONTSERRAT
ST. KITTS AND NEVIS
ST. LUCIA
ST. VINCENT AND THE GRENADINES
SURINAME
TRINIDAD AND TOBAGO
CARICOM SINGLE MARKET AND ECONOMY (CSME)
MEMBER STATES
• ANTIGUA AND BARBUDA
• BARBADOS
• BELIZE
• DOMINICA
• GRENADA
• GUYANA
• JAMAICA
• ST. KITTS AND NEVIS
• ST. LUCIA
• ST. VINCENT AND THE GRENADINES
• SURINAME
• TRINIDAD AND TOBAGO
NEED FOR ECONOMIC TRANSFORMATION
 CARICOM States described as low growth, high debt
economies
 Over last 4 years (2009-2012), CARICOM growth has averaged
less than 2% and projection for 2013 – 2.3% is lower than Latin
America and the world as a whole
 CARICOM debt to GDP ratios at over 60% for majority of States
- clearly unsustainable
 Growth of merchandise exports is at around 8% - lagging
behind the world average of 11%
 Major issue – how to transform CARICOM economies into high
growth , competitive , globally integrated economic space
INTEGRATION FRAMEWORK
STRATEGIC FRAMEWORK FOR INTEGRATION IN CARICOM IS THE CSME
THE CARICOM SINGLE MARKET AND ECONOMY (CSME) –is an
enlarged economic space for competitive production based on
free movement of factors including
 FREE MOVEMENT OF SKILLS NATIONALS
 FREE MOVEMENT OF GOODS
 FREE MOVEMENT OF CAPITAL
 FREE MOVEMENT OF SERVICES
 – an enlarged economic space for competitive production based on free
movement of factors.
SUPPORTING INSTRUMENTS OF THE CSME
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 CARICOM Investment Code (CIC)
 CARICOM Financial Services Agreement (CFSA)
 Intra-CARICOM Double Taxation Agreement (ICDTA)
 Investment Incentives Agreement (IIA)
 CARICOM Securities Market Law (CSML)
 Industrial Development Policy
 Harmonised Model Legislation for SMEs
 Related Initiatives
THE INDUSTRIAL DEVELOPMENT CHALLENGE
 FINANCING – THE ACHILLES HEEL
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LIMITED ACCESS TO DONOR FINANCED PROGRAMMES
HIGH COST OF FINANCING, ONEROUS LOAN APPLICATION PROCESSES AND COLLATERAL
REQUIREMENTS RELATING TO COMMERCIAL FINANCING
ABSENCE OF INNOVATIVE SOURCES OF FINANCING SUCH AS LEASE FINANCING, LOAN GUARANTEE
PROGRAMMES, VENTURE CAPITAL, DEBT FACTORING, ANGEL FINANCING
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HIGH DEBT TO CAPITAL RATIOS IN MOST MEMBER STATES
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LACK OF AN ENABLING ENVIRONMENT FOR DOING BUSINESS – DESCRIBED AS BEING “UNFRIENDLY”
WITH A HIGH LEVEL OF GOVERNMENT BUREAUCRACY
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WEAK BUSINESS SUPPORT ORGANISATIONS (BSOS) AND LIMITED BUSINESS DEVELOPMENT
PROGRAMMES AT THE NATIONAL LEVEL
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UNCOMPETITIVE FACTORS OF PRODUCTION ESPECIALLY ENERGY AND TRANSPORTATION
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INEFFICIENT, INADEQUATE AND VERY EXPENSIVE AIR AND SEA LINKS FOR PEOPLE AND GOODS
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INEFFICIENT PORTS AND EXORBITANT PORT CHARGES
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LACK OF DYNAMIC PUBLIC/PRIVATE SECTOR PARTNERSHIPS
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LACK OF A HARMONIZED LEGISLATIVE , POLICY AND REGULATORY INDUSTRIAL FRAMEWORK
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ABSENCE OF NATIONAL INDUSTRIAL DEVELOPMENT FRAMEWORKS IN SOME MEMBER STATES
FRAMEWORK FOR INDUSTRIAL DEVELOPMENT
 THE PRIVATE SECTOR WILL PLAY THE LEADING ROLE IN
INVESTMENT AND IN THE OWNERSHIP AND
MANAGEMENT OF ECONOMIC ACTIVITIES
 SUSTAINABLE DEVELOPMENT WOULD BE BASED ON
PARTNERSHIPS OF THE PUBLIC AND PRIVATE SECTORS,
LABOUR AND CIVIL SOCIETY
 GOVERNMENT WILL PROVIDE THE ENABLING
ENVIRONMENT FOR PRIVATE SECTOR ACTIVITY
THROUGH POLICY HARMONISATION, COMMON POLICIES
AND SUPPORT MEASURES INCLUDING:
FRAMEWORK FOR INDUSTRIAL DEVELOPMENT (cont’d)
STRATEGIC PLAN FOR REGIONAL DEVELOPMENT (SPRD) WHICH INCLUDES
REGIONAL CLUSTERS OF PRIORITY SECTORS INCLUDING:
- ENERGY
- AGRICULTURE
- NICHE MANUFACTURING
- TRANSPORTATION
- AGRO-TOURISM
- FINANCIAL SERVICES
- NEW EXPORT SERVICES
- INFORMATION AND COMMUNICATION TECHNOLOGY
- STRATEGY FOR FOOD AND NUTRITION SECURITY
- STRATEGY FOR PRIORITY SERVICES SUB-SECTORS
- INDUSTRIAL POLICY PARTICULARLY SMES
FRAMEWORK FOR INDUSTRIAL DEVELOPMENT (cont’d)
 REGIONAL STRATEGY FOR FOOD AND NUTRITION SECURITY
 STRATEGY FOR SUB-SECTORS OF THE SERVICES SECTOR
 REGIONAL DRAFT INDUSTRIAL POLICY
 HARMONISED MODEL LEGISLATION AND A REGIONAL POLICY FOR
SMEs
 INTEGRATED REGIONAL COMPANIES AND VALUE ADDED CHAINS
 ROADMAP FOR A REGIONAL INNOVATION AND ENTREPRENEURSHIP
SYSTEM AND ICT
 FACILITATE THE FORMATION OF THE CARIBBEAN BUSINESS COUNCIL
(SINGLE VOICE OF THE REGION’S PRIVATE SECTOR – ASSOCIATE
INSTITUTION STATUS)
OBSTACLES
 SLOW ADOPTION PROCESS IN MEMBER STATES
 LIMITED PROGRESS WITH THE SINGLE ECONOMY
 NO REGIONAL FRAMEWORK FOR PUBLIC PRIVATE
SECTOR PARTNERSHIPS
 LIMITED FINANCIAL RESOURCES TO CONTINUE THE
WORK OF HARMONISED INDUSTRIALIZATION
 NO UNIFIED SINGLE PRIVATE SECTOR VOICE
THANK YOU
Leela Ramoutar
Deputy Programme Manager
Private Sector Facilitation and
Industrial Development
CARICOM Secretariat
Tel: (592) 222 0001 – 75 Ext. 2784
Email: [email protected]