By Estrella Gutiérrez
CARACAS, Jan 16 1996 (IPS)

Competivity is the catch-phrase of the increasingly interdependent and globalised world economy, but the structural problems of Latin America and the Caribbean may make this an unobtainable goal.

At least this was the conclusion of the Latin American Economic System (SELA) report, the base document for three days of regional discussions in the SELA headquarters in Caracas, starting on Tuesday.

The aim of this meeting is to reach a common Latin American position for the April United Nations Trade and Development meeting (UNCTAD IX) to be held in Johannesburg, South Africa.

SELA Economic Relations Director, Manuela Rangel, said the issue of competivity is one of the most difficult elements for regional companies and governments to handle.

She said out that the Latin American nations have common deep rooted structural obstacles to overcome in order to improve their competivity, and these were worsened by the import substitution policies adopted in the eighties.

Rangel said there were five main problems to overcome, starting with the high level of dependence on imported materials, equipment and technology, making the SELA countries “excessive consumers of hard currency.”

The second limitation is imposed by the lack of articulation between and within the various sectors; there “are few links and communicating vessels” in the industrial areas of each country, Rangel told reporters.

Another problem is the excessive geographical centralisation of the industries, encouraging the creation of internal “North- South” situations which impede balanced, global development in each country.

SELA also showed that only a small proportion of the economically active population work in the industrial sector – although this is the sector which generates the best paid, most productive jobs.

Lastly, said Rangel, competivity is undermined by the “concentration of property and production in very few hands.”

A regional study produced by the body came up with a three stage plan to overcome these problems in all 27 of its member countries, concentrating on the training of human resources – the key element in increasing competivity.

It concluded that respoL124 DAP255 LLLL AAN SERVENG .LONAKINIBBEAN-LABOUR: Bele Survival Strategy

GEORGETOWN, Jan 1ars ago Caribbean lere protectors of ttrating on improvinng conditions of emaders from The Bahamibbean tohe south are concedmore pragmatic apmployee relations geconomic, politices across the globe.ind affiliates of tongress of Labgan a five-day symp determining how thace up to such prescorporate downsizingate subsidies and West for smalations in the regioport tariff barrier unions looked at micros, but today we e realisation that e up to internatiot affects our econoy our workers,” Lloyd Goodleigh of an ever now, Goodleigh says, leaders have to be aware and alert to changes and must feel responsible for helping to steer political leaders and workers in directions that aptly respond to current changes. One such change has to do with the way the North American Free Trade Agreement (NAFTA) involving the Untied States, Canada and Mexico, is affecting economic life in the English-speaking Caribbean. Already transnational companies are moving to Mexico, responding to the lure of cheap labour. Several manufacturers have pulled out of Jamaica for instance, leaving hundreds of workers unemployed.

Speaker after speaker at Monday’s opening ceremony spoke of thousands of jobs lost in the United States and Canada due to Nafta. The point was if these larger countries were reeling under the fall- out of Nafta, smaller nations such as those in the region should take note and make plans. With such negative effects apparently evident in such a short period, leaders say a new look also has to be taken at U.S.-led moves to have a hemisphere-wide American Free Trade Agreement (FTAA) by 2005. “I do not know that we could cope with it. It is something that we have to look at,” said CCL Vice-President Robert Morris.

“For instance, overnight in Jamaica we have lost over 1,000 jobs to Mexico in the garment industry. Our garment industry which was thriving is now dying and so we have to find ways of responding to that,” says Goodleigh.

But observers of the 0.

Labour leaders point also to changes in the European Union, a traditional safe haven for Caribbean exports such as banana, sugar, rice and rum. Officials say there is every likelihood that the World Trade Organisation (WTO) will rule in favour of U.S.-backed Latin banana producers challenging preferential treatment of Caribbean bananas in Europe. These producers are charging that the EU regime unfairly discriminates against their fruits.

Banana is a lifeline export of several Caribbean countries, accounting for up to 70 percent of foreign exchange earnings and employing as much as half of the labour force in some territories.

The trade unionists worry too that the United States’ congress insistence on penalising countries doing business with Cuba could affect large entities in Jamaica, the Bahamas and Trinidad.

Businessmen in these countries, particularly those involved in the important tourism sector, have invested heavily in Cuba’s tourism and labour leaders feel that any U.S. backlash could lead to contraction of operations and thus lay-offs in the home territories.

Excerpt: