The Caribbean is in a particularly difficult economic situation that requires urgent, creative and decisive action. The challenging circumstances confronting the region emanate partly from the profound changes inherent in globalisation and the ossification of economic policy in Caricom member states.

As a result, many countries have been forced into adjustment when they should have been proactively pursuing strategies of economic transformation, which anticipate and seize opportunities emerging in the global economy.

Globalisation entails reduction and/or elimination of national barriers to the global movement of goods, services, technology and capital. The attempt to formulate rules to regulate the operation of an increasingly "globalised" world economy involves the negotiations in the World Trade Organisation (WTO). The current round of negotiations was designated the Doha Development Agenda with the intention of addressing the issues of concern to the developing countries.

The WTO negotiations have degenerated into a political quagmire because of the failure of the developed countries to compromise on key issues, in particular, subsidies and domestic support in agriculture.

In a gallant effort to inject momentum into the negotiations, the director-general of the WTO, Mr Pascal Lamy, has been circumnavigating the globe. He met with Caribbean trade ministers in Jamaica a fortnight ago to give an update on the state of the negotiations and the prospects for completion. The ministers used the opportunity to reiterate the priorities and concerns of the region and underscore their disappointment with the lack of progress on development issues.

The Caribbean agenda, unfortunately, was weighted primarily to defensive considerations such as the erosion of preferential trade arrangements, special safeguard mechanism in agriculture, extended implementation periods in tariff liberalisation and aid for trade.

While it is critical to preserve preferences as long as possible and calibrate tariff liberalisation to the capacity to adjust, the portfolio of objectives needs to be rebalanced to give more attention to creation of opportunities through enhanced market access, particularly in services where the region has demonstrated a comparative advantage.

The region needs to revamp its posture from reticence to advocacy of development-promoting measures by employing the template of small vulnerable economies. The justification for special and differential treatment should not be the deferment of adjustment, but the creation of export opportunities and the provision of adequate adjustment time and policy space to facilitate the enhancement of international competitiveness.

The region cannot afford to be in a state of denial about globalisation, nor does it have the luxury of complacency about the pace of change which is necessary to cope with, and more importantly, thrive in an environment of inexorable globalisation.

Caribbean people have demonstrated that they can be internationally competitive and they must be given the opportunity to do so. The reluctance to be more aggressive is short-sighted and will ultimately be costly to the region as it repositions itself in the rapidly changing world economy.

Trousers in Denim

Cream of the 'Crop'

Cheeky's World