Economic Policies in Small Open Economies

Prospects for the Caribbean

image of Economic Policies in Small Open Economies

This study deals with some of the major issued discussed at a symposium entitled “Small States: Problems and Opportunities in a World of Rapid Change”, which was held in March 1991 in St Kitts and Nevis. The symposium focused on the special problems confronting the management and development of small states’ economies.

The study, prepared by Delisle Worrell, Deputy Governor of the Central Bank of Barbados, argues that the economic adjustment strategies adopted by many Caribbean economies in the 1980s were in appropriate in trying to restore external balance and raise economic output. The analysis pays particular attention to the economic adjustment strategies of Barbados, the Dominican Republic, Guyana, Jamaica and Trinidad and Tobago. To improve the performance of Caribbean economies, the author calls for a better mix of stabilisation policies with a deliberate export promotion strategy.



Forecasts of Caribbean Economic Performance

Within the group of countries that share characteristic Caribbean features we may distinguish four broad categories, based on recent performance. They are (1) countries with no adjustment problem, for example the Bahamas and the Netherlands Antilles; (2) countries with intermittent difficulty, for example Barbados, Belize and the countries of the OECS; (3) countries with persistent disequilibria, for example Jamaica, Trinidad & Tobago and the Dominican Republic; and (4) countries with prolonged crises, for example Guyana, Suriname and Haiti. The circumstances of countries in each group are shown in Table 8.1.


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error