CARIBBEAN SINGLE MARKET AND ECONOMY ( CSME) - NOT My Business
The Caribbean Single Market and Economy (CSME) involves the
free flow of labour, goods and capital among participating
Caribbean Community (CARICOM) members states. The emergence, of
this single market means that legal and administrative
restrictions affecting trade, labour and technology within the
CARICOM region will generally be a thing of the past.
But one of the greatest advantages is that it will encourage
intra-regional trade and allow CARICOM states to negotiate as a
single entity. This will afford them a better opportunity to
influence policies concerning global trade. Perhaps the region
may soon be a force to reckon with in the next round of World
Trade negotiations.
The major issue for each state is whether its existing
businesses and workforce can survive the increased competition
when businesses that are more successful enter the local market.
Many states are uncertain as to whether their local economy can
survive the transition. From all indications, it appears that
the CSME is about survival. Businesses that do not have the
resources or capacity to compete will surely whither away.
States that fail to develop their capacity must prepare to deal
with economic calamity.
But the most debated issue is the implications for employment.
The free movement of labour is limited to qualified and skilled
persons. Therefore, the idea that with the emergence of the CSME
will result in mass movement of unskilled persons to more
prosperous member states seems far-fetched.
Of major concern to the Governments and people of the region is
the potential for an increase in local unemployment as a result
of more persons competing for the few available jobs. Another
concern is the increased pressure that may be placed upon social
and economic institutions, in the event of mass migration, and
their ability to cope. Governments of the region are exploring
various measures to assist the public and private sectors to
adapt. However, many are of the view that, the question of
whether these states have the resources to deal with negative
externalities including increases in crime, poverty and
unemployment levels is yet to be strategically addressed.
Whatever the issue, the CSME is a reality that all member states
must confront. At the end of the day, sink or float, it