WHILE it may hold sway that the Cold War has ended, the emergence of another type of global standoff, or competition among the super powers, should not be ignored. Though in this instance not driven by intolerance or fear of opposing rigid ideology (capitalism vs. communism), this new global competition is presently driven by economic expansionism.In this new global reality, small states such as CARICOM countries should recognise, understand, and astutely navigate the intricacies of this competition if the Region is to survive, develop, and compete as an independent bloc.
Recent economic indicators have shown that the countries within CARICOM continue to significantly underperform. Trinidad and Tobago and Jamaica, categorised among the most developed countries of the Caribbean, have each taken a decision to enter the structural adjustment programme of the International Monetary Fund (IMF).

Countries finding themselves in economic sluggishness are increasingly turning to the East – particularly to China — to benefit from loans and grants that would help them to break out of the cycle of sluggishness. On each occasion, these nations are responding to strong internal anxieties to succeed, but in pursuing external assistance, they find themselves simultaneously ensnared in the economic warfare/expansionism between China and the world, notably the United States.

In every CARICOM country where state-owned companies and corporations carried out activities and delivered for the society, systems and programmes were developed to force the State out of nearly every activity. This was done in a neo-liberal environment in which adoption of so-called small government and the private sector controlling economic enterprises were pushed.
As government was forced out of business and now placed in positions to need the very services it divested, China has become a willing investor through grants and loans. Using China comes at additional cost to the Caribbean, because the Region is committed to buying the materials from China, and is obligated to using Chinese architecture and labour.

Acknowledging these realities ought not to be seen as xenophobia or intolerance to global trade, but merely drawing attention to characteristics in this new trading relationship that may be eluding attention; and, at the same time, focus can be brought on the consequences that can be borne from these realities.

For instance, the Skeldon Sugar Factory, the country’s largest investment –- worth over US$200M — occurred under the Bharrat Jagdeo Administration and is not only a white elephant, but the structures were not built consistent with the Guyanese reality. Further, it is known that where grants are given and companies from China arrive to execute the projects, at the conclusion of the project a new company is formed, with the same faces competing in the local market for projects, and maintaining the imported workforce. These local established companies are not unknown to engage in practices in violation of the ILO Core Labour Standards in a Region that has earned a reputation for being one of the most compliant. It is also known that workers employed by these companies are subjected to working conditions that violate the laws in respective countries and CARICOM industrial relations principles.

Following the trail of these companies shows a link back to the Government of China qualifying them as state-owned. These companies are involved in hotel management and ownership, building and managing ports, agriculture in various forms, gold mining, logging, and so forth.

Even to the casual observer, it appears that the Government of China has within its Foreign Policy Agenda an element of state economic expansion. This economic characteristic is different to that of a multinational or transnational company operating independent of the directive of the government of the country of origin. In dealing with trade and any issue of conflict resulting therefrom, it brings into consideration a diplomatic component based on immunity to do certain things, which otherwise would not have been so guaranteed.
A case in point is the recent issue with the Guyana Revenue Authority and Bai Shan Lin in paying duties on motor vehicles, when the Ambassador of China intervened, arguing that the company is protected under diplomatic immunity.

The development of this Region, which has within its fold various resources and requires an array of activities, is not only premised on the balancing of a country’s national budget, but on a political vision that is supported by an indigenous economic plan and advanced by strong leadership, understanding of the global environment, and support of the people therein.

Given the global realities stated above and elsewhere, coupled with the experiences garnered since the perceived end of the Cold War, it may be opportune to appreciate the urgency of rethinking the way business and development are presently pursued. The dismantling of state entities in the Caribbean while China uses its state entities to expand its economic and political welfare into other countries not only makes China economically stronger and more powerful, but would result in CARICOM countries and their peoples being dependent, impoverished, and reliant on others — which should be enough to stimulate conversations and actions in another direction.