Jamaica Gleaner
Published: Friday | July 17, 2009
Home : Letters
Flawed CARICOM analysis
The Editor, Sir:

An article by Okke W. Snieders from St Maarten (Gleaner, July 16) tries to put CARICOM in the context of a very pleasant experience. In his weak attempt to justify an expansion of CARICOM to the Dominican Republic (DR), he states that such a move would "more than double the gross domestic product (GDP) of CARICOM".

I have a very rudimentary knowledge of economics, but even then, I know that the GDP of a country, by itself, is not a very useful piece of information. As an example, the GDP of Barbados is $4.496 billion (2003 estimate), while that of the Dominican Republic (DR) is $52.16 billion (2003 estimate), which to the grossly misinformed would suggest that the DR is excessively rich. To the contrary, Barbados which has a per capita income of $16,200 (2003 est), compared with the DR's $6,000 (2003 est), is the richer country.

Of course, per capita income is not a complete measure by itself, since income distribution and unemployment, etc. would give a better picture. An even more solid indicator is that Barbados has a social-security net, so its populace has a minimum standard of living. The DR has no such safety net, and thus no minimum poverty level.

Vague assertions

This writer attempts to follow up on his vague assertions with even more absurdities, such as "this expansion alone will more than double the gross domestic product of CARICOM. After the Dominican Republic, other associate member states and observers are likely to follow. We will all benefit from growing economic activity".

If these kinds of determinations are used to guide the development of CARICOM, then I would no more want to be part of CARICOM than I would want to be a passenger in a car with a driver who is at the wheel for the first time with no prior instruction. From the resolutions of the CARICOM leadership, I gather that we are in such a car with drivers who have not done much homework on the practical benefits of CARICOM with its present goals.

I am, etc.,

PADRAIG BROWN

bee_wasp@lycos.com

PO Box 822601

South Florida

USA

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