Competitiveness in Small Developing Economies: Insights from the Caribbean

Synopsis

Possibly no group is more conscious of the challenges created by the increasing integration of markets for capital, labor, products and information than small, developing economies. Policy makers from these economies have sought a two-track response to this integration. One response lies in increasing lobbying efforts for these economies to be accorded special or more equitable treatment in market integration discussions. The second response lies in improving the competitiveness of their economies. It is this second response that provides the subject matter for this book. It explores the challenges and opportunities associated increasing competitiveness in small, developing economies based on research conducted in the Caribbean. The topics covered indicate the breadth of activity that is required to enhance competitiveness. At the macro-policy level, the book explores the key drivers of competitiveness, examines the role of exchange-rate regimes and of government policy, considers the implications sovereignty, and assesses the extent to which competitiveness is likely to be improved by attracting foreign direct investment. At the level of private-sector enterprise the book reports on Caribbean-based research on the role of workplace change and enterprise management in enhancing firm competitiveness. Finally, the book covers competitiveness enhancement in rarely traded non-private and micro-enterprise sectors of small economies.