Trade as engine of economic growth for Africa and the Caribbean

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by Lindsey Francy Nov 27, 2022 News
Trade as engine of economic growth for Africa and the Caribbean

The address to the business conference was edited.

We focus on mobilising the diaspora, Africa, and the Caribbean in the fields of trade, investment, science, sports, culture, and entertainment.

We want to engage civil society through a people-to- people connection.

The framework for using trade as an engine of economic growth and sustainable development will be established in my presentation.

There are challenges.

Africa's share of global trade is less than 3% and the Caribbean's is less than 1%. We must resolve to enter a new frontier in all of Africa if we are to remain at the fringes.

Traditional and contemporary crises are present in Africa. Africa's enormous development potential is being stifled by the long legacy of colonial rule.

The problems of African and Caribbean countries in the trading system have been made worse by the COVID crisis. According to some estimates, Africa has lost a decade of economic growth and development because of reduced export earnings for commodities. Most economies in the Caribbean have been hit by the adverse effects of the Russia-Ukraine War, as well as the enormous costs of the COVID response measures. The gains that were made in the last decade have been put at risk by the increase in indebtedness.

There is a vision.

The start of a campaign is usually based on a vision. It has been a long time since we had a vision like that. Marcus Garvey talked about pooling the finance of the African Diaspora in the Americas and the human resource expertise of the Caribbean to unshackle trade. Ownership of the production, shipping and distribution by Africans and the peoples descended from Africa was an important part of the realization. Financial capital can be found among the globally dispersed people of Africa. We need self-finance to control our economy.

We have been prevented from benefiting from our inalienable right to economic freedom for too long. The rights are attained through struggle. Africa and those of African descent have a role to play in changing the international economic order.

Africa's prescription to foster its own initiative for cross-continental trade with the African Continental Free Trade Area is the subject of our discussion.

The door is open for African and Caribbean countries to strengthen their bilateral trade and economic relations through a high-quality and ambitious trade agreement. The cultural and historical bonds between African and Caribbean countries would be strengthened by the linking of Caricom and the African Continental Free Trade Agreement.

A dynamic trade agreement would give access to a huge market for Caribbean countries and also give African countries access to certain sectors where Caribbean countries have an advantage. They would have better negotiating positions in the WTO.

Encouraging trade

The expansion of trade with Africa must be encouraged. Remove the barriers by national governments first. The business sector encounters many obstacles in the conduct of trade.

Second, effect improvements in transport, in particular shipping, as trade in tourism, entertainment, culture and other services requires the movement of people.

Development economics show that under fair and equitable trade, developing countries can accelerate their economic growth and that nurturing can help the process of economic development. Promoting the expansion of trade between Africa, the Caribbean and its diaspora can be done effectively.

There is a potential for trade by internet despite the constraints of transportation and infrastructure. The productivity of firms, workers, and information inputs can be affected by digital connections. Digital technologies have increased in use. Business services, financial services, policy consulting and the exchange of the arts are growing. The genre of Caribbean music is now a global one.

There is so much more that can be done with the blue economy in the Caribbean and Africa. It is necessary for Africa and the Caribbean to be vigorous in defence of the resources of the ocean, protection from degradation and pollution, and promotion of any development increase on a sustainable basis in an era of climate change. There needs to be a study of the relationship between Africa and Caribbean weather and the dangers of the sargassum weed.

Let's be forward looking instead of cataloging the difficulties. The six regions of Africa and the Diaspora have a lot of natural resources.

We need a sense of purpose in order to have hope. Millions of people can be lifted out of poverty through a new set of fair arrangements. The catalyst that can bring the potential to fruition is employing the combined resources.

There is a new horizon approaching. It is time for a sustained push to drive inclusive growth for our own benefit and prosperity.

PJ Patterson was Jamaica's sixth prime minister. He is in residence at The University of the West Indies.