Shifting with the World

A few weeks ago, I asked whether the Caribbean could rediscover its place in the world. This was out of a concern that perhaps the region had been deprioritised as an international actor by some major players.

My question came against the backdrop of the United States (US) and China competing against each other to court Pacific Island Nations, including through hundreds of millions of dollars in financing for a wide range of activities.

On 27th November 2022, Canada announced the launch of its Indo-Pacific Strategy. Through this Strategy, the Canadian government intends to invest close to $2.3 billion over the next five years. The objectives of the Strategy include promoting peace, resilience and security; expanding trade, investment, and supply-chain resilience; investing in and connecting people; building a sustainable and green future; and strengthening Canada’s active engagement in the region.

The Indo-Pacific region covers a vast and diverse area, comprising 40 countries and economies such as Australia, Bangladesh, Bhutan, Cambodia, China, India, Maldives, 14 Pacific Island Countries, Pakistan, Taiwan and Vietnam.
The Indo-Pacific is the world’s fastest-growing economic region and accounts for 65% of the global population and half of the world’s Gross Domestic Product (GDP). By 2030, it is expected to be home to two-thirds of the global middle class.

Given its economic weight, geographic size and population, it is pragmatic for the world’s leading and middle powers to want to enhance their engagement in the Indo-Pacific.

Furthermore, geopolitical fault lines are firmly entrenched in that region, since it includes a rising China, and key Western allies such as Australia.

Geographically, both Canada and the US are also Pacific countries.

It is instructive that Canada’s Indo-Pacific Strategy appears to dovetail with the US’ own pivot to Asia which was announced by President Obama during his second term in office. The geographic coverage of Canada’s Strategy and America’s rebalancing in Asia also overlap.

In 2007, then Canadian Prime Minister, Stephen Harper committed Cn$600 million over twelve years to CARICOM countries. Shortly after, CARICOM and Canada launched free trade talks which eventually collapsed in 2015.

Once the free trade talks collapsed, there was always a nagging fear that Canada would shift its priorities elsewhere. Of course, Canada continues to be an important development, trade and investment partner for the Caribbean as a whole. However, notwithstanding proximity and historical relations, the region does not appear to be among Canada’s top priorities.

The same can also be said of the US.

While traditional partners appear to shift their focus away from the Caribbean to other parts of the world which may yield a more significant return on investment, the region needs not despair. It is also an opportunity for it to engage in its own pivot.

Already, some Caribbean countries are expanding their diplomatic footprint on the African continent. The Afri-Caribbean Trade and Investment Forum 2022, held in September in Barbados, also showcased the enormous potential which exists to develop viable economic linkages with the continent.

Stronger diplomatic and trade linkages must also be sought in the Indo-and Asia-Pacific regions.

Already, these regions control many parts of global supply chains and have enormous potential for both investment and tourism which the Caribbean can certainly leverage.

To sow the seeds for future relations, perhaps the Caribbean may need to embark on a charm offensive in major capitals in Africa, as well as the Indo-and-Asia Pacific regions, involving political leaders, investment and tourism promotion agencies and the private sector.

Though small in size, the Caribbean has never appeared to be intimidated by the vastness of the world. This lack of intimidation has served it well in the past. As the world shifts, the Caribbean must also shift with it.

Joel K Richards is a Vincentian national living and working in Europe in the field of international trade and development.Email: joelkmrichards@gmail.com