On the 28th of January the governor of the Eastern Caribbean Central Bank, Sir K. Dwight Venner, delivered a powerful message in his 2009 Eastern Caribbean Currency Union Economic Review. The main theme focused on the fact that in times of economic uncertainty, it is far better for Caribbean nations to act in a unified manner than to stand alone or depend solely on ties to some of the more advanced economies. As the 2009 rescue of the Bank of Antigua proved, collective action can be quite successful in operation. In that instance, regional Heads of State and Financial Ministers gathered together and put together an effective plan to address the situation. The meetings spawned several subcommittees of the Monetary Council that have been tasked with oversight on specific problems, such as the health of the regional insurance sector. This development could represent the silver lining that exists inside of every cloud. By learning to cooperate more fully with each other, the Caribbean may finally be ready to start moving away from a position of dependence on the major economies, such as the United States, for its very survival. Self-reliance is a very powerful life lesson for any individual, and it applies to nations as well. According to Sir Venner, in 2009 the Currency Union contracted By an estimated 7.4 percent due to shortfalls in tourism and construction. A drop-off that large is certainly of major significance, and if the trend continues it will take some of the best minds in the region to come up with a long-term solution should those revenues not return. The economic crunch being experienced in the Caribbean has a global reach, with all of the major economies suffering to some degree. In the United States, rising levels of unemployment, combined with surging home foreclosures have put a serious dent in the housing industry – a major contributor to that nation’s GDP. With many homeowners now ‘under water’ with their mortgage loans, there is simply not as much money to be spent on trips to warmer climes. How long with this global recessionary environment persist? No one really knows, but the prospect of an immediate reversal in the current year seem dim. This means that the spirit of cooperation among the nations in this region will be all the more important going forward. It should be accepted as a challenge By the best minds in Caribbean governments to come up with solid alternatives to the lost tourism revenue. Other questions ns
