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ECLAC SUBREGIONAL HEADQUARTERS FOR THE CARIBBEAN Newsletter of the Caribbean Development and Cooperation Committee (CDCC) FACING THE STORM: A BRIEF ON POLICY RESPONSES TO THE GLOBAL CRISIS IN THE CARIBBEAN BIOTECHNOLOGY DEVELOPMENT AND CLIMATE CHANGE IN THE CARIBBEAN PLAYING THE GLOBAL MUSIC INDUSTRY WITH TECHNOLOGICALLY ADVANCED CULTURAL PRODUCTS WHAT’S INSIDE: WHAT’S ENERGY EFFICIENCY IN THE CARIBBEAN ISSUE 2/ APRIL - JUNE 2009 ABOUT ECLAC/CDCC Issue 2 / April - June 2009 The Economic Commission for Latin America and the Caribbean (ECLAC) is one of five regional commissions of the United Nations Economic and Social Council (ECOSOC). It was created in 1948 to support Latin American governments in the economic and social Facing The Storm: A Brief on Policy development of that region. Subsequently, in 1966, the Commission (ECLA, at that time) established the Subregional Headquarters for the Responses to the Global Crisis in the Caribbean 3 Caribbean in Port of Spain to serve all countries of the insular Caribbean, as well as Belize, Guyana and Suriname, making it the largest United Biotechnology Development Nations body in the subregion. and Climate Change in the Caribbean 6 At its sixteenth session in 1975, the Commission agreed to create the Caribbean Development and Cooperation Committee (CDCC) as Playing the Global Music Industrywith Technologically a permanent subsidiary body, which would function within the ECLA Advanced Cultural Products 10 structure to promote development cooperation among Caribbean countries. Secretariat services to the CDCC would be provided by the Subregional Headquarters for the Caribbean. Nine years later, the Energy Efficiency in the Caribbean 12 Commission’s widened role was officially acknowledged when the Economic Commission for Latin America (ECLA) modified its title to the Economic Commission for Latin America and the Caribbean (ECLAC). Key Areas of Activity Regular Features The ECLAC Subregional Headquarters for the Caribbean (ECLAC/CDCC secretariat) functions as a subregional think-tank and facilitates increased Recent ECLAC Publications 14 contact and cooperation among its membership. Complementing the ECLAC/CDCC work programme framework, are the broader directives issued by the United Nations General Assembly when in session, which Upcoming Events - 2009 14 constitute the Organization’s mandate. At present, the overarching articulation of this mandate is the Millennium Declaration, which outlines the Millennium Development Goals. Towards meeting these objectives, the secretariat conducts research; provides technical advice to governments, upon request; organizes intergovernmental and expert group meetings; helps to formulate and articulate a regional perspective within global forums; and introduces global concerns at the regional and subregional levels. Areas of specialisation include trade, statistics, social development, science and technology, and sustainable development; while actual operational activities extend to economic and development planning, demography, FOCUS: ECLAC in the Caribbean is a publication of the economic surveys, assessment of the socio-economic impacts of natural Economic Commission for Latin America and the Caribbean (ECLAC) disasters, data collection and analysis, training, and assistance with the Subregional Headquarters for the Caribbean/Caribbean Development management of national economies. and Cooperation Committee (CDCC). The ECLAC Subregional Headquarters for the Caribbean also functions as secretariat for the Programme of Action for the Sustainable EDITORIAL TEAM: Development of Small Island Developing States (SIDS POA). The scope of Director Neil Pierre, ECLAC ECLAC/CDCC activities is documented in the wide range of publications Editor Joanne Mora, ECLAC produced by the Subregional Headquarters in Port of Spain. Copy Editor Maureen Afoon, ECLAC MEMBER COUNTRIES: ASSOCIATE MEMBER Antigua and Barbuda Haiti COUNTRIES: Produced by ECLAC The Bahamas Jamaica Anguilla Printed by Caribbean Paper & Printed Products (1993) Ltd Barbados St.Kitts and Nevis Aruba Layout by RAW Designs Belize Saint Lucia British Virgin Islands Cuba Saint Vincent Montserrat Dominica and the Grenadines Netherlands Antilles CONTACT INFORMATION: Dominican Republic Suriname Puerto Rico ECLAC Subregional Headquarters for the Caribbean Grenada Trinidad and Tobago Turks and Caicos Islands PO Box 1113, Port of Spain, Trinidad and Tobago Guyana United States Virgin Tel:(868) 623-5595 Islands Fax:(868) 623-8485 E-mail: [email protected] THE NEWSLETTER OF THE CARIBBEAN DEVELOPMENT AND COOPERATION COMMITTEE ISSUE 2 / APRIL - JUNE 2009 FACING THE STORM: A BRIEF ON POLICY RESPONSES TO THE GLOBAL CRISIS IN THE CARIBBEAN INTRODUCTION The data collected by ECLAC shows agencies; but also through the issuing that out of 15 Caribbean countries of domestic debt in some cases. Other he financial and economic surveyed, in 14 of those countries the measures frequently adopted have T crisis affecting the world Government has already implemented been the introduction of budgetary economy since mid-2008 has already or is in the process of implementing cuts in non-essential expenditures impacted the Caribbean countries’ specific measures in reaction to the in order to spare and concentrate growth and stability through diverse negative effects derived from the global resources for essential expenditures, channels of transmission: slowdown crisis. The issues of major concern for like social programs, or investments in in remittances from workers policymakers seem to be the contraction infrastructure projects aiming to give a abroad, tighter access to external in key economic sectors like tourism, boost to the economy. financing, loss of export markets, the fall in fiscal revenue and consequent Similarly, labour and social policies have negative evolution of the terms of budgetary imbalances, the rise in also been targeted in 11 countries where trade, etc. unemployment, and the jeopardizing of those policies have been substantially advances made during the last decade in modified during the last months with This phenomenon has not gone poverty reduction and social welfare. unnoticed by the Caribbean measures such as implementation of governments, and thus, a wide process The survey also found that at least in unemployment benefits, expansion of of discussion and implementation of 13 Caribbean countries significant welfare programs, or adjustments in policy responses to alleviate the impact adjustments have been made to the wages and salaries. Sectorial policy is from the global slowdown is under fiscal policy to better cope with the another area where governments have development across the region. consequences of the global crisis. been quite active in implementing Specific fiscal measures adopted have promotional measures targeting those Learning to live with the Global been generally related to secure funds productive sectors with a significant Crisis to finance the 2009 budget, mainly social and economic weight: agriculture, from external sources like multilateral tourism, construction, among others. During the last few months policymakers in practically all the Caribbean countries have been actively discussing and adopting an array of measures Figure I Governmental Response to the Global Crisis in the Caribbean, 2008-2009 addressing issues such as the economic downfall, rising unemployment, accelerating inflation or weakening consumers’ confidence. Thus, measures adopted have ranged from tax and tariff adjustments to expansion of social programs, from establishment of price controls to wage increases. Figure I presents information on those measures adopted by governments across the region in response to the global economic slowdown between the third quarter of 2008 and the first quarter of 2009. Note: Includes information collected from Bahamas, Barbados, Belize, Guyana, Jamaica, Suriname, Trinidad & Tobago, and the following ECCU countries: Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, and St. Vincent & the Grenadines. In the case of the ECCU countries, the monetary policy is managed by a single common institution: the Eastern Caribbean Central Bank. 3 THE NEWSLETTER OF THE CARIBBEAN DEVELOPMENT AND COOPERATION COMMITTEE On the other side, it is worth noting Rallying the Caribbean: the regional spurred interregional coordination that the exchange rate and trade policy initiatives between the monetary and fiscal is the category where fewer Caribbean authorities has been the collapse of The information presented in Figure Governments seem to have introduced Colonial Life Insurance Company I refers to individual policy responses, changes in response to the global crisis. (CLICO) financial group at the carried out at the national level. However, This could be explained partially by beginning of the year, the repercussions it is necessary to mention the existence the existence in most countries of the of which are still being felt across the of some initiatives and proposals at the region, of fixed or quasi-fixed exchange region2. regional level aimed at coordinating rates regimes vis-à-vis to the dollar, which efforts and resources, and establishing After the announcement by the Trinidad effectively prevents most governments common responses to the crisis. In that and Tobago Government of a multi- from pursuing proactive exchange rate sense, during the latest CARICOM billion bailout for the troubled Financial policies. In addition, regarding monetary Meeting of Heads of Government,
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