CARICOM - EUComparative analysis for GoodWorks International

Final PresentationMPA WorkshopApril 23, 2008Faculty Advisor Professor Wallace Ford

Leonardo Bullaro – Patrick Contreras – Saul Gomez– Farah Hussein –Carlos Prieto –Cymetra Williams – Seitzhan Yerzhanov – Josellyn Youssef

Project Details

Who? Client is GoodWorks International : Global Business Advisory Firm

Goal: Enhancing Global Competitiveness of CARICOM

What? Caribbean Community (CARICOM)

2

Consequences of Status Quo

Declining competitiveness

Security

Declining GDP

4

Project Mandate

Regional Economic Communities

Lessons from the European Union

Reconciliation of historic differences

Gradual integration

Decision making process

Strong political leadership

Harmonization & Mutual Recognition

Measurable goals and an explicit timetable

Project Scope: Layers to Regional Competitiveness

7

CARICOM-EU Institutional Comparison

Conference of Heads of Government-Primary decision-making body-Unanimity required on all issues-Meet ONCE per year

European Commission-Agenda-setting, diplomacy-Meet FOUR times per year-Qualified majority voting on most issues

Caribbean Council of Ministers-Four Functional Councils-Qualified Majority Voting on most issues-Controversial issues → Conference

Council of the European Union-Primary decision-making body-Pass laws, approve budget-QMV, most issues; unanimity, security

CARICOM Secretary General-Conduit for integration-Primarily administrative-Not empowered to implement policy

European Commission-Mandate to implement & manage policy-President represents the EU to world -President holds seat at Commission

Institutions: Problems and SolutionsProblem #1 : Decision-making Paralysis

Short-term Solutions: Require Conference of Heads of Govt. to meet four times per

year Require Council of Ministers to meet every month, different

site Allow representatives of opposition parties to attend meetings

Long-term Solutions: Implement tiers of voting requirements (QMV, majority a/o

unanimity) Councils of Ministers to be primary decision-making body

Expected Outcomes: Provide greater policy discussion and opportunities to build

momentum “Buy-in” across the political spectrum and nations at grassroots

level

Institutions: Problems and SolutionsProblem # 2: Lack of Supranational Leadership

Short-term Solutions: Select a Sec-Gen with strong political experience, former elected

official Give Sec-Gen a place on the Conference of Heads of Government

Long-term Solutions: Term-limit Sec-Gen with limited opportunities for re-appointment Provide secretariat with the resources to properly advise

governments Mandate to implement, manage and evaluate CARICOM policies

Expected Outcomes: Counterweight to national interests; CARICOM interests at the

table Accountability from the Sec-Gen and the CARICOM bureaucracy

Security Sector Reform: Problems and SolutionsProblem #1: Reporting of accurate crime statistics Possible Solutions:

Development of a technology-enabled platform for internal use Providing special resources for nations that encourage

accurate reporting (i.e. strategic planning resources and specialists)

Problem #2: Lack of human development opportunities

Possible Solutions: Approach current private sector companies to create Public-

Private Partnership apprenticeship program

Doing Business Snapshot Doing Doing Business Business IndicatorIndicator

Best Practice Best Practice GloballyGlobally

Best Best Performer in Performer in CARICOMCARICOM

Worst Worst Performer in Performer in CARICOMCARICOM

CARICOM CARICOM Regional Regional AverageAverage

Starting a Business (days)

Australia(2 days)

Jamaica (8 days)

Suriname (694 days)

99 days

Cost of Dealing with a License (% of income per capita)

United Arab Emirates (1.5%)

Trinidad and Tobago (5.9 %)

Haiti (817.7%)

161.6% of income per capita

Paying Taxes (hours/year)

United Arab Emirates (12 hours/year)

St. Lucia(71 hours/year)

Jamaica (414 hours/ year)

176 hours/year

Enforcing Contracts (days)

Singapore (120 days)

Antigua and Barbuda (351 days)

Suriname (1715 days)

747 days

Doing Business: Problems and SolutionsProblem #1: Starting a business is too time

intensive

Possible Solutions: Caribbean Business Registry as information

depository Eliminate need for general business licenses

Problem #2: Time required to enforce contracts

Possible Solutions: Contract out dispute settlement process Technical assistance programs for court

administrators to increase efficiency

Description of Investment Climate

Investor Criteria

14Source: IMF Statistics

2004 World Bank Survey

Most important components for foreign investors (159 firms)

Performance ratings are not meeting investors’ expectations

UNCTAD Performance Index

(FDIc/FDIw)/(GDPc/GDPw)

Decline of FDI

FDI and Trade: Problems and SolutionsProblem #1: Member states slow to implement key

harmonization agreements

Possible Solutions: Strengthen CARICOM institutions that manage

implementation Create a Regional Depository of Business and Trade

Information

Problem #2: Lengthy Customs Procedures

Possible Solutions: Automate procedures Regularize Tariffs - VAT

Questions and Answers

Thank You!