Trinidad and Tobago and Member States free essay sample

?In the year 1958, the West Indies Federation, was started by the British Caribbean Federation Act of 1956 and the objective of starting this federation was to create a political unit that would become independent from Britain as a single state. This Federation consisted of ten (10) territories which were: Antigua and Barbuda, Dominica, Barbados, Montserrat, Jamaica, Grenada, Saint Lucia, Saint Kitts-Nevis-Anguilla, Saint Vincent and lastly Trinidad and Tobago. The total population of the West Indies Federation was between three (3) and four (4) million people, and contained around twenty-four (24) inhabited islands with the largest being Jamaica. The Federal Parliament was bi-cameral consisting of an elected House of Representatives and a nominated Senate. Sir Grantley Adams, of Barbados was the one and only Prime Minister of the Federation, Queen Elizabeth II was the Head of State and the Federal capital was located in Trinidad. Also, flag was made to represent the ten territories that made up the Federation. We will write a custom essay sample on Trinidad and Tobago and Member States or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Aims of the West Indian Federation: Britain did not show much interest after Emancipation because sugar no longer gained massive amounts of profits to Britain and this forced the member countries of the Federation to develop ideas to solve their social and economical problems. To achieve independence. To obtain cheaper wages for imports and gain better wages for exports. Also, to resist the United States intervention in the affairs of the Caribbean. The West Indies Federation also achieved some goals and theses were uniting the smaller states to enhance their effectiveness in dealing with international bodies and gained independence through a united voice. In May 1962, the West Indies Federation had collapsed due to arguments around finance and freedom of movement. These factors disbanded the Federation: -There were conflicts among members, for example determining the capital site. -It’s two largest members, Trinidad and Jamaica, was expected to provide eighty-two percent (82%) of funding for the operating expenses of the West Indies Federation with ten territories. -Competent people refused to be the head of the Federation, for example Dr. Eric Williams of Trinidad and Mr. Norman Manley of Jamaica. -Distrust of the smaller states since the two largest states proposed to change the constitution of the West Indies Federation into their own interest. -Jamaica and Trinidad and Tobago then withdrew from the federation due to a referendum in September, 1961 and Dr. Eric Williams made this statement ‘one from ten leaves nought ’. These factors created the Caribbean Free Trade Association (CARIFTA) which was formed in 1968. Its membership comprises of eleven states. CARIFTA acknowledges the big gap between the more developed Caribbean states and the less developed Caribbean states and also created a Free Trade Area among its members. CARIFTA was intended to encourage balanced development of the member states by liberalizing trade by abolishing quotas on products produced and tariffs, increasing trade by importing and exporting more products among member states, diversifying trade by expanding the variety of products and services available for trade and also, ensuring fair competition by developing rules so that the smaller states would not be dominated. CARIFTA also involved in the removal of customs taxes, duties and licensing arrangements which encourages more trade among the member states. The CARIFTA agreement sought to promote industrial development in the less developed countries and the development of the coconut industry, to ensure that the benefits and credits of free trade were equitably distributed among its member states, and to rationalize agricultural production. CARIFTA helped markets grow by approximately seventy four percent (74%) for example Saint Vincent has received substantial gains by exporting ground provisions and other commodities to Trinidad and Tobago. Trinidad and Tobago and Guyana provide the larger markets for CARIFTA exports and each collecting about one-quarter of the total amount. The less developed countries accounted for approximately ten percent (10%) of the total, Guyana and Jamaica together accounted approximately thirty-five percent (35%) or the total amount and Trinidad and Tobago, the largest exporter in the region exporting fifty percent (50%). Unlike the West Indies Federation which failed in May 1962, CARIFTA did not fail. The benefits to member states of cooperating in free trade were numerous and members of CARIFTA came to the conclusion to widen regional cooperation among the member states by creating CARICOM on August 1st, 1973. CARICOM also known as the Caribbean Community and Common Market and is an organization consisting of fifteen (15) Caribbean nations and dependencies. CARICOM’s objectives are to improve the economic development of member states through The introduction of free trade (economic cooperation) Functional cooperation by air transport, meteorological services, health, broadcasting, shipping, culture, intra-regional technical assistance, education and training. Common policies in dealing with non-member states and transnational corporations and CARICOM member will effect a common external tariff, a common policy when importing goods and attracting foreign investors to the region(Harmonization of Fiscal Incentives) and a common policy on tourism. CARICOM’s accomplishments include: Development of the single market (CSM) which is the member states were trading with each other without any restrictions or tariffs and this CSM was implemented in January 2006 which resulted in the dismantling of the free movement of capital, trade barriers, goods and services. The CSM then created a system to certify tertiary and vocational educational skills and this is the creator of the Caribbean Vocational Qualification (CVQ). Establishment of the Caribbean Regional Organization for Standards and Quality (CROSQ). CROSQ is the regional centre for promoting efficiency and competitive production in goods and services, through the process of standardization and the verification of quality. Some functions are to promote consumer welfare and safety and to support standards-infrastructure development at the national level. The establishment of the Caribbean Court of Justice (CCJ) which had two jurisdictions an original jurisdiction which applies the Revised Treaty of Chaguaramas and an appellate jurisdiction. A treaty to avoid double taxation of incomes earned by citizens operating regionally. When this tax is removed the citizens may use the money for other purposes for example to buy fertilizers for their plants to export. The implementation of the Caribbean Examinations Council (CXC). CXC’s objective is to provide regionally and internationally recognized secondary schools leaving examinations relevant to the needs of the region. CXC’s first examination was held in 1979 to test student in both academic and technical/vocational subjects. The operations of CXC are funded chiefly by contributions from participatory governments and examination fees. Establishment of the CARICOM Development Fund (CDF). US $60 million was recommended as a good start up figure and contributions to the fund will be collected from member states, non-member states and the regional private sector. Establishing the West Indies Cricket Board (WICB) which is one of the oldest examples of regional cooperation and some of its functions include arranging inter-territorial cricket matches, and assisting in financing cricket matches played in the West Indies or abroad. After these achievements there were some factors that led to the failures of CARICOM. These factors are that there is competition among member states in air transport, member states failed to cooperate in exploring common resources which caused conflict among members, The West Indies Shipping Corporation (WISCO) has been plagued with problems since inception and over the years there have been conflicts that member states contravened the free trade agreement and enacted trade barriers for goods produced within the region. Although CARICOM did a lot there are still some suggestions I will like to make to benefit the member states and the people of CARICOM and the are: Bond markets which also serve as a means through which large capital inflows can be sterilized. Well developed bond markets tend to reduce the bias towards short- term investment and provide the market with financial instruments and various maturities. Bond markets also help in reducing the risk of financial crises of member states. Domestic debt markets also help in facilitating monetary policy which relies increasingly on indirect instruments of control. Wages in the long term bond market give information about what to expect of likely macroeconomic developments and about market reactions to monentary policy moves. Create an organization signed by all Caribbean islands that in case of emergency or if a natural disaster occurs all the other islands help the needed island by either collecting items like food and transport it to the needed island. The more developed countries like Trinidad and Tobago should give at least ten percent of their profits to the less developed countries so that they can develop industries and export more products. Hotels and restaurants have been importing products while those products could be bought in the market, the products will be fresher and the money will stay with-in the region. CARICOM could introduce the rest of the world Clearance and settling facilities the systems which are used by each country are known for operating smoothly and facilitating the effective functioning of their markets.