Production Integration: Perspectives from the OECS

• Author: Randolph Cato
• Pages: 206-214

206 PRODUCTION INTEGRATION

INTRODUCTION

Production integration is a central component of any meaningful regional

economic integration arrangement. In fact, it can be seen as a major

facilitator of such arrangements, while at the same time, strengthened

economic integration processes encourages production integration.

As the Treaty of Chaguaramas indicates in Chapter 4, Article 51,

‘Objectives of the Community Industrial Policy’:

…The Community shall pursue the following objectives:

a ) Cross-border employment of natural resources, human resources,

capital, technology and management capabilities for the

production of goods and services on a sustainable basis

b) Linkages among economic sectors and enterprises within and

among Member States of the CSME

c) Promotion of regional economic enterprises capable of achieving

scales of production to facilitate successful competition in domestic

and extra-regional markets…

Production integration, while at the centre of economic integration

process, is not restricted to such a context. Production integration speaks

really to enhancing competitiveness and efficiencies, and so is likely to take

place wherever enterprises recognize that cross-border linkages in a

production process will provide these competitiveness and efficiency

objectives that could not otherwise occur.

It is very instructive, however, that the notion permeates the Treaty of

Chaguaramas. This could be taken as recognition that production

integration is a critical mechanism by which small scale producers can

achieve economies of scale. It is one way to overcome limitations of size. As

such, it obviously would hold much attraction for the OECS a means of

strategic repositioning, which is so essential if these states are to be beneficial

participants in the global economic integration process.

PRODUCTION INTEGRATION:PRODUCTION INTEGRATION:

PRODUCTION INTEGRATION:PRODUCTION INTEGRATION:

PRODUCTION INTEGRATION:

PERSPECTIVES FROM THE OECSPERSPECTIVES FROM THE OECS

PERSPECTIVES FROM THE OECSPERSPECTIVES FROM THE OECS

PERSPECTIVES FROM THE OECS

Randolph Cato

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