For the region to become more competitive and innovative, Caribbean leaders and policymakers must address key issues affecting regional and international trade.
Chief among the concerns is the high cost of doing business in the region, says Gail Mathurin, director of trade negotiations at the CARICOM Secretariat.
“The prolonged global crisis which is heavily impacting on our economies and our societies in the region has thrown into sharp relief the need to implement effective economic and trade policies at both the national and regional levels,” she said.
“We have to address the high costs of trade and doing business which undermine the region’s competitiveness, especially when compared to other, similar economies in the world.
“We need to look at ways in which we give effective priority to sectors with important potential such as the services sector, and here lies not only our tourism sector, which is the largest services sector, but other services sectors,” said Mathurin.
The CARICOM ambassador was delivering opening remarks during the first day of the three-day Caribbean Conference On Trade Policy, Innovation Governance And Small State Competitiveness at the Accra Beach Hotel last Monday.
“We have to look at how we can develop and strengthen non-discriminatory incentive regimes, particularly in relation to tariff reform and investment goals in order to attract greater private sector involvement.
“I think if we look at the data we will see that the level of private sector investment, particularly indigenous private sector investment is a challenge facing the region,” said Mathurin.
Stating that the issue of access to “appropriate capital” needed to be addressed, she said the lack of venture capital was hampering “the roll-out” of innovative products and services in the region.
“We also need to look at the development of appropriate human capital, and finally, we suggest that we also have to look at the ways in which we can more effectively integrate and support our small and medium-sized businesses.
“All of these I think are issues which are related to competitiveness and innovation,” she said.
Mathurin was quick to point out, however, that some of the issues were being addressed.
“But it is clear that given the region’s overall economic performance over the last six years, there is need to intensify and coordinate more effectively if we are to maintain the social gains achieved and provide greater employment within the region.”
She said that given the Caribbean’s high dependence on trade as a percentage of GDP, “A review of our overall trade policy [is] clearly warranted and it is patently clear that we cannot continue doing the same things and expecting different results.”
