Culture, Currency, and Caricom: Former CBB governor speaks on the Caribbean's evolving unity

Over the past half-century, the Caribbean region has undergone undeniable integration, diverging significantly from what was envisioned by Caribbean Community (Caricom) leaders. In this evolving landscape, vibrant elements like Trinidad’s carnival have seeped into diaspora communities, Jamaican music has reverberated on the global stage, and Caribbean literature has found eager readers both regionally and in the broader English-speaking world. Migration patterns have further fortified this integration, forging familial and friendship links throughout the region, especially in major North American and UK cities. For many, cities like Miami, New York, or Toronto evoke the strongest sense of Caribbean identity.

Organic vs. structured integration

Writing in his Economic Letter for August, Dr. DeLisle Worrell, former governor of the Barbados Central Bank (CBB), posits that while this organic growth has benefited the region’s inhabitants, it diverges from the anticipated pattern of regional amalgamation. Worrell expressed that there is no need to abandon Caricom, which this year is celebrating its 50th anniversary, stating "it is a useful forum for leaders to meet regularly to exchange views on the issues of the day and the performance of their economies. “However, it is surely naïve to expect that the decisions made at these meetings will have some impact in the future that is any more notable than has been the case in the last 50 years,” the Barbadian economist wrote.

The currency conundrum

Worrell underscores that a major transformative step for regional integration would be the universal adoption of the U.S. dollar for local transactions, supplanting national currencies. Currently, various Caribbean nations have diverse currency standings. For instance, the Eastern Caribbean dollars have a stable peg against the U.S. dollar, while currencies from countries like Jamaica, Guyana, Trinidad and Tobago, and Belize experience fluctuations.

Caricom's varied trajectory

In his “Economic letter” Worrell shared that in its five decades of existence, Caricom has transitioned through various economic stages. Theoretically, the organization has evolved from being a free trade zone to a shared economic entity. “The reality is that each member country has its own internal systems, and the laws, rules and procedures governing the movement of goods, people and finance between members are the same as for the US, UK, Canada or any other non-Caricom country,” he added.

Nostalgia for past collaborations

Reflecting on the late 1960s and early 1970s, Worrell recounts the era when newly-minted Caribbean nations actively sought out collaborative economic strategies, often tapping into the expertise of luminaries affiliated with The University of the West Indies (UWI) and the then-called Institute for Social and Economic Research (ISER). He shared one defining instance which was when the United Kingdom devalued the pound sterling against the US dollar on November 18, 1968, and Caribbean countries approached The UWI to advise as to whether they should follow suit. Worrell said the ISER arranged for studies to be prepared, and a conference was held at which the pros and cons were discussed. “Encouraged by the insights which the exercise yielded, the region's central banks and The UWI set up a permanent programme for regional economic policy research. That programme evolved into the Caribbean Center for Money and Finance, which I headed for a brief period a decade and a half ago. The center has since been dissolved, its services no longer needed now that there is no longer any interest in regional policy coordination,” he said.