CXC CSEC Social Studies exam guide - Section B2: Regional Integration

Explanation of the following terms and concepts related to regional integration:

(a) Bilateral agreement

(b) multi-lateral agreement,

(c) common market,

(d) single market

(e) single economy

(f) economic integration

(g) independent state,

(h) underdeveloped country

(i) developing country

(j) developed country

(k) trade liberalization

(l) globalization,

(m) multi-national cooperation

(n) regionalism

(o) trading bloc,

(p) fiscal policy

(q) monetary policy

Major challenges:

(a) small size, small national markets;

(b) lack of diversification

(c) unemployment and underemployment

(d) low levels of production and productivity

(e) differences in resource distributions;

(f) high levels of indebtedness (debt burden);

(g) high level and cost of imports;

(h) shortage of skilled workers;

(i) inadequate technology;

(j) low value of exports

(k) difficulties in accessing markets of developed countries;

(l) shortage of capital;

(m) vulnerability to natural disasters

a. Stages:

(i) West Indian Federation

(ii) Caribbean Free Trade Association (CARIFTA)

(iii) Caribbean Community (CARICOM)

(iv) Organization of Eastern Caribbean States (OECS)

(v) Association of Caribbean States (ACS)

(vi) CARICOM Single market and economy (CSME)

(b) Membership

(i) West Indian Federation

(ii) CARIFTA

(iii) CARICOM

(iv) OECS

(v) ACS

(vi) CSME

a. Functions of OECS and CARICOM secretariats,

b. Functions of Conference of Heads of Government.

Objectives of:

a. OECS and CARICOM

(i) functional cooperation

(ii) integration of the economies of member states;

(iii) harmonization of foreign policy;

b. The CARICOM Single market

(i) free movement of goods and services;

right of establishment;

(ii) free movement of capital;

(iii) free movement of skilled labour.

c. CARICOM Single economy

Harmonization of:

(i) Fiscal (tax) policies

(ii) Monetary policies (including a single CARICOM currency)

(iii) External trade policy

(iv) Legislation (custom, companies)

(v) sectoral policies in agriculture, manufacturing, fisheries.

d. The Regional Development Fund

Factors that promote regional integration:

(a) Common cultural heritage;

(b) common economic and social issues;

(c) effects of globalization trade liberalization and trading blocs;

(d) vulnerability to economic shocks and natural disasters.

Factors that hinder regional integration:

(a) geography of the region

(b) absence of a common model or strategy for development;

(c) differences in stages of growth and development;

(d) competition for location of industries;

(e) conflict between territorial and regional demands;

(f) absence of a common currency;

(g) unequal distribution of resources;

(h) lack of diversification in production

(i) influence of multinational corporations.

Analyze the benefits of regional integration;

Benefits of regional integration:

(a) reduction in unemployment and underemployment

(b) better response to economic implications of globalization and trade liberalization;

(c) improvement in the quality of life;

(d) reduction in the inequality of wealth distribution;

(e) free movement of goods. labour and capital;

(f) increased market size;

(g) improved levels of international competitiveness;

(h) expansion of trade;

(i) increased co-operation among member states.

a. Role of citizens:

(i) entrepreneurship;

(ii) supporting regional producers;

(iii) showing solidarity and mutual support towards regional fellow citizens;

(iv) investing in local and regional businesses;

(v)being informed.

b. Role of business organizations

(i) improving competitiveness;

(ii) increasing range and quality of goods and services;

(iii) providing opportunities for investment and employment.

c. Role of government

(i) enacting enabling legislation

(ii) harmonizing policies

(iii) honouring protocols;

(iv) educating citizens about the objectives and benefits of integration.

Areas of regional cooperation:

a. The Caribbean Agricultural Research and Development Institute (CARDI) (Agriculture);

b. West Indies Cricket Board (WICB), Confederation of North, Central American and Caribbean Association of Football (CONCACAF);

c. OECS sports desk (Sports);

d. Caribbean Environmental and Health Institute (CEHI), Caribbean Epidemiology Centre (CAREC) (health)

e. Caribbean Disaster Emergency Response Agency (CEDERA)(emergency response)

f. Caribbean Media Company (CMC) (media)

g. University of the West Indies (UWI), Caribbean Examinations Council (CXC) (education)

h. Caribbean Court of Justice (CCJ)

i. Regional Security Service (RSS) (security)

Section C: Options