qua non for the integration of multiple states. also, energy is such an important factor in both consumption and investment that it must be dealt with at the regional level. finally, education, skill training and innovation are critical, both to create regional and national citizens, and to produce the type and quality of labour force that can make the economies of the economic union regionally and internationally competitive. the economic union, as a collective entity, must then reposition itself in relation to caricom and the global economy. with respect to caricom, there will have to be a two track approach which outlines : ( i ) the role of the oecs within caricom ; and ( ii ) bilateral relations between the oecs as a bloc and individual members of caricom. there has been a remarkable reversal of fortunes, circumstances and individual country policies within the region since the demise of the west indies federation. to put this in context, three reasons have been advanced, among others, for this failure : 1. freedom of movement of people – trinidad and tobago ’ s sticking point ; 2. customs union which was jamaica ’ s objection ; 3. the fear of having to support the smaller islands which was illustrated by the jamaica labour party ’ s cartoon, “ sucking me dry ” and trinidad ’ s iconic phrase, “ one from ten leaves nought ”. bis central bankers ’ speeches today, the smaller islands are receiving a large number of migrants from jamaica and guyana, and are running very large trade and services imbalances with barbados and trinidad and tobago. the economic arrangements in caricom are dysfunctional with no redistributive mechanisms. until a structured approach to this, and other issues is taken, there is likely to be no progress. given these circumstances, the oecs has no option, and in fact, has an obligation to deal with this matter at both the caricom and bilateral levels in a very urgent and direct manner. in the cases of trinidad and tobago and barbados – the caricom states which are nearest to us, there are two overriding issues, namely : 1. the very large trade and services imbalances which should have by now invoked some protestation under the treaty of chaguaramas ; and 2. the vexed matter of the clico and british american insurance companies which are headquartered in those countries and to which citizens and institutions in the oecs have a very large exposure. in the case of the global

sir k dwight venner : growth, profitability and regulation – the imperatives opening address by sir k dwight venner, governor of the eastern caribbean central bank, of the 33rd annual caribbean association of indigenous banks conference “ growth, profitability and regulation - the imperatives ”, port of spain, 16 november 2006. * * * mr chairman i am appreciative of the invitation of the caib to address your opening ceremony at this very important juncture in our history. we are a very short time away from a year that will go into the before and after category, that is 2007. it can prove to be our undoing, or the path and stimulus to sustainable growth and development, which we have been waiting for these past four decades and counting. when it comes to caribbean affairs however, i am forever the optimist and see it as the golden opportunity we have been waiting for. your theme “ growth, profitability and regulation : the imperatives ” is sufficiently flexible, yet focused to allow me to build on the above statements. growth as has been recorded by economic historians has always been episodic and sometimes ephemeral in many countries and regions. its sustainability over substantial periods of time has been limited to a relatively few countries, most of them being in the northern hemisphere. the first instance of sustained economic growth in modern times took place in the united kingdom over the period 1760 - 1850. this was effected through a fundamental structural change from mercantile capitalism to industrial capitalism. this first episode has affected the thinking on growth and development to this day as we consider the sequential steps in the evolution of economies from the production of primary commodities in agriculture and mining, to secondary areas in manufacturing and processing, to high quality services in design, financial services, personal services and entertainment. this first growth episode was followed by similar sequels in continental europe, germany, france, the netherlands, and the united states of america. the so called g7 countries, which after a time included italy, particularly northern, and japan, seemed to have a monopoly on sustained growth. the post world war ii period ushered in a significant change in the thinking on growth and development. the coming into existence of many new countries through decolonisation and the intrusion of the east - west divide resulted in four significant imperatives for reviewing the nature and causes of growth. • the war ravaged countries were trying hard to reconstruct their economies. • the underdeveloped countries were attempting to initiate economic