1. CARICOM - EU Comparative analysis for GoodWorks International Final Presentation MPA Workshop April 23, 2008 Faculty Advisor Professor Wallace Ford Leonardo Bullaro – Patrick Contreras – Saul Gomez– Farah Hussein –Carlos Prieto –Cymetra Williams – Seitzhan Yerzhanov – Josellyn Youssef

2. Project Details Who? Client is GoodWorks International : Global Business Advisory Firm Goal: Enhancing Global Competitiveness of CARICOM What? Caribbean Community (CARICOM) 2

3. Consequences of Status Quo Declining competitiveness Security Declining GDP

4. 4 MPA Workshop Institutional and Policy Analysis Using E.U. as benchmark Goodworks Internation al Feasibility, resources, barriers, entry points CARICO M Implementation Project Mandate

5. Regional Economic Communities

6. 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

7. Project Scope: Layers to Regional Competitiveness 7 FDI & Trade Business Environment Security Institutions Enabler

8. 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

9. Institutions: Problems and Solutions Problem #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

10. Institutions: Problems and Solutions Problem # 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

11. Security Sector Reform: Problems and Solutions Problem #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

12. Doing Business Snapshot Doing Business Indicator Best Practice Globally Best Performer in CARICOM Worst Performer in CARICOM CARICOM Regional Average 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

13. Doing Business: Problems and Solutions Problem #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

14. Description of Investment Climate Investor Criteria 14 Source: 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

15. FDI and Trade: Problems and Solutions Problem #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

16. Questions and Answers Thank You!