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President's Statement - 47th Annual Meeting of the Board of Governors of CDB

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Statement by Dr. Wm. Warren Smith, President of the Caribbean Development Bank (CDB), delivered at the 47th Annual Meeting of the Board of Governors.

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President's Statement - 47th Annual Meeting of the Board of Governors of CDB

  1. 1. PRESIDENT’S STATEMENT 47th Annual Meeting of the Board of Governors of the Caribbean Development Bank Providenciales, Turks and Caicos Islands May 24, 2017
  2. 2. INTERNATIONAL CONTEXT Uncertain global environment has the potential to derail the modest and tentative return to growth being experienced by our borrowing member countries.
  3. 3. GROWTH IN WORLD TRADE Source: The World Bank 15.2 -22.3 21.9 19.8 0.9 2.5 0.3 -13.2 -3.2 2008 2009 2010 2011 2012 2013 2014 2015 2016
  4. 4. ACHIEVING THE SUSTAINABLE DEVELOPMENT GOALS Inward-looking economic policies threaten the achievement of the Sustainable Development Goals.
  5. 5. AN APPROPRIATE CARIBBEAN RESPONSE As they turn inward, we must turn outward.
  6. 6. AN APPROPRIATE CARIBBEAN RESPONSE These islands did not start on the federal road in a fit of idleness. They started because it was clear that a Federation is the only possible solution to their problems. SIR ARTHUR LEWIS NOBEL LAUREATE AND THE FIRST PRESIDENT OF CDB
  7. 7. INTEGRATION PROGRESS IN THE CARIBBEAN 1968 1973 CARIBBEAN FREE TRADE ASSOCIATION CARIBBEAN COMMUNITY (CARICOM) & COMMON MARKET 2002 CARICOM SINGLE MARKET & ECONOMY
  8. 8. INTEGRATION PROGRESS IN THE CARIBBEAN The actual value of UWI’s contribution could not have been paid for by any one CARICOM country, acting on its own.
  9. 9. INTEGRATION PROGRESS IN THE CARIBBEAN Benefits to member states, especially from functional cooperation in health, education, security, disaster mitigation and in the provision of common services across human and social activity have been significant and sustained.
  10. 10. AN APPROPRIATE CARIBBEAN RESPONSE Our economies need to grow; and they need to do so in a sustained way.
  11. 11. AN APPROPRIATE CARIBBEAN RESPONSE Businesses which cannot compete cannot trade.
  12. 12. AN EXAMPLE FROM ANOTHER REGION Studies show that regional trade agreements can positively affect foreign direct investment.
  13. 13. AN EXAMPLE FROM ANOTHER REGION Studies show that regional trade agreements can positively affect foreign direct investment. Evidence points to substantial improvement in the investment environment following the implementation of the 1998 Framework Agreement on the ASEAN Investment Area. ▼
  14. 14. SHARE OF GLOBAL NET FDI INFLOWS 0 1 2 3 4 5 6 7 8 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 % CARICOM ASEAN Source: The World Bank
  15. 15. WHEN THEY TURN INWARD, WE TURN OUTWARD Small economies with small populations and similar natural endowments are capable of creating a dynamic intra- regional trading bloc as a stepping stone to a wider international marketplace.
  16. 16. WHEN THEY TURN INWARD, WE TURN OUTWARD Trade The exchange of goods and services, not just merchandise trade.
  17. 17. WHEN THEY TURN INWARD, WE TURN OUTWARD Service-based industries started to lead the integration process.
  18. 18. WHEN THEY TURN INWARD, WE TURN OUTWARD The regionalisation of Caribbean conglomerates was inevitable.
  19. 19. CULTURAL INDUSTRIES Music festivals and carnivals are now a growth industry in many Caribbean countries.
  20. 20. CULTURAL INDUSTRIES Will get larger as the regional tourist industry continues to grow. Music festivals and carnivals are now a growth industry in many Caribbean countries. ▼
  21. 21. TOURISM Caribbean tourism is the largest earner of foreign exchange, and the biggest employer of local and regional labour in most CARICOM countries.
  22. 22. TOURISM Opportunities for local agriculture and other merchandise sectors, and also for regional producers of food, alcohol, fruit juices, furniture and other goods
  23. 23. TOURISM The prospect of creating strong agro-tourism linkages is enormous.
  24. 24. GETTING THE ENABLING ENVIRONMENT RIGHT As our Region faces the threat of some of our traditional development and trading partners turning inwards, the Caribbean can mitigate that risk by turning outwards.
  25. 25. GETTING THE ENABLING ENVIRONMENT RIGHT The mere removal of restrictions doth not a single market make. The removal of such restrictions has not resulted in a sufficiently meaningful improvement in market access.
  26. 26. GETTING THE ENABLING ENVIRONMENT RIGHT The mere removal of restrictions doth not a single market make. The removal of such restrictions have not resulted in a sufficiently meaningful improvement in market access. ▼ The Movement of Factor Act, which removes barriers to the rights of establishment, has not been enacted in many member states.
  27. 27. GETTING THE ENABLING ENVIRONMENT RIGHT The mere removal of restrictions doth not a single market make. The removal of such restrictions have not resulted in a sufficiently meaningful improvement in market access. ▼ The Movement of Factor Act, which removes barriers to the rights of establishment, has not been enacted in many member states. ▼ In 1995, CARICOM Heads of Government finally agreed to the free movement, and consequent elimination of the need for work permits for a limited group of skilled workers.
  28. 28. GETTING THE ENABLING ENVIRONMENT RIGHT Where is our Region today?
  29. 29. GETTING THE ENABLING ENVIRONMENT RIGHT Regional integration can be the Caribbean’s “secret” weapon for unlocking economic growth and enhancing the prospect of greater prosperity for our people.
  30. 30. APPEAL TO REGIONAL LEADERS Do what is right, not what is easy.
  31. 31. LOOKING AHEAD We have the opportunity to be the masters of our fate and the captains of our souls. “INVICTUS” BY WILLIAM ERNEST HENLEY
  32. 32. THANK YOU

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