Trade and Shared Prosperity in the Caribbean Region
This policy note is based on the seven chapters of the Caribbean trade report, The New Trade Environment and Shared Prosperity in the Caribbean, prepared by the World Bank for the Caribbean Growth Forum. Despite fairly respectable economic growth o...
| Main Author: | |
|---|---|
| Format: | Brief |
| Language: | English en_US |
| Published: |
Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19791394/trade-shared-prosperity-caribbean-region http://hdl.handle.net/10986/20027 |
| Summary: | This policy note is based on the
seven chapters of the Caribbean trade report, The New Trade
Environment and Shared Prosperity in the Caribbean, prepared
by the World Bank for the Caribbean Growth Forum. Despite
fairly respectable economic growth over the decades and a
degree of high trade openness, unemployment rates remain
very high in the Caribbean, averaging 10 percent for the
region between 2002 and 2009, and poverty reduction has been
slow. The purpose of this note is to provide background
information on the role of trade in the unemployment and
poverty reduction in the Caribbean and, based on recent
World Bank analysis, to suggest areas where greater policy
attention could promote trade and thus reduce poverty. The
report begins with a profile of employment in the Caribbean,
and discusses the impact of trade on employment during the
global financial crisis. Evidence is reviewed on the role of
trade in employment and development over the long term, and
whether the poor in the Caribbean benefit from export
activities. Then the report presents a discussion how
addressing constraints on exports and reducing tariff levels
will enhance growth and reduce poverty. The conclusion
summarizes the main issues of addressing constraints on
exports and promoting broad-based benefits of trade. The
report's analysis shows that international trade plays
a major role in terms of job creation and poverty reduction
in the Caribbean, more so, on average, than in the other
developing countries. However, in general, poor Caribbean
households have not benefited fully from the employment
opportunities created by trade. There is a role for policy
in alleviating poverty by helping promote the shared
benefits of trade. Considering the variety of issues
involved in this area, it will likely require a
multi-pronged approach involving the following measures: 1)
promoting quality education for all; 2) strengthening links
to the value chain among small enterprises; and 3)
addressing key impediments to trade performances shows that
acting to remove some key trade impediments may also
directly help the poor. |
|---|