The CARICOM Development Fund: Economic Sense or Political Expediency?

• Author: Havelock R. Brewster
• Profession: Professor
• Pages: 155-163

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The CARICOM Development Fund

Rationale for the CARICOM Development Fund

The Preamble to the Revised Treaty of Chaguaramas states that:

(i) the establishment of the CARICOM Single Market and Economy

(CSME) is intended to achieve sustained economic development based

on international competitiveness, coordinated economic and foreign

policies, functional cooperation, and enhanced trade and economic

relations with third states;

(ii) there is a need to achieve the highest levels of production efficiency

in order to improve the level of living of Caribbean problems through

maximizing foreign exchange earnings on the basis of international

competitiveness; and

(iii) the acceptance by member-states that optimal production by economic

enterprises in the Caribbean Community requires the structured

integration of production in the Region, and particularly, the

unrestricted movement of capital, labour and technology.

The Revised Treaty also recognized that Community member-states exhibit

differences in income levels and economic performance; and that some member-

states, reflecting differences in resource endowments and in levels of

development of physical and institutional infrastructure, will be less able

than others to take advantage of the opportunities offered by integration,

and may even be disadvantaged by the process. The Revised Treaty, therefore,

provided for a regime for disadvantaged countries, regions and sectors. This,

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12 Professor Havelock R. Brewster1

THE CARICOM DEVELOPMENT FUND:

ECONOMIC SENSE

OR POLITICAL EXPEDIENCY?