Institutional and monetary cooperation in the Eastern Caribbeanby Marc Van Daele
After more than a century the British East Caribbean sought to bring about cohesion between their administrative functions. This trend resulted from the similar histories of the English colonies. Antigua was ceded to England by the Treaty of Breda in 1667. It was in 1783 when the Treaty of Versailles formally recognized English sovereignty over the Dominican Islands, Grenada, St. Vincent, St. Christopher and Montserrat. In 1802, the Treaty of Amiens allowed England to cede Trinidad and Tobago. The Treaty of Paris in 1814 saw St Lucia come under the sovereignty of the United Kingdom.
The first attempts at creating an orderly state system depended indirectly on the Windward Islands, which in 1833 comprised Barbados, Grenada, St. Vincent and Tobago. St. Lucia would join in 1838. In 1885, the Statute of the Windward Islands was rearranged so that it did not include Grenada, St. Lucia and St. Vincent. Dominica left the Leeward Islands group to rejoin the Windward Islands until 1940. In 1956, the Windward Islands were dissolved and each island formed a separate administration.
In 1871, a federal constitution was established for the Leeward Islands, "the islands below the wind". The Leeward consisted of Antigua, St. Kitts, Montserrat, Dominica and the British Virgin Islands. As was heretofore mentioned, Dominica left the group in 1940. The federation was broken up as with the Windward Islands on December 31, 1956.
Nonetheless certain islands were regrouped. It was the case with Trinidad and Tobago in 1888 that led to defining a common budget in 1898. The Islands of Nevis and Anguilla were grouped with St. Christopher in 1882 under the name "St. Kitts, Nevis, Anguilla". After a turbulent history, St. Kitts was ceded to the British in 1783. Anguilla was colonized by English explorers from St. Kitts in 1650. From 1825, its administration was very closely aligned with St. Kitts. On May 30, 1967, Anguilla rejected the sovereignty of the autonomous colony of St. Kitts, Nevis, Anguilla. The separation was not formally recognized until December 19, 1980 by St. Kitts.
The economic circumstances of these islands would lead them towards cooperation, but political considerations would lead them towards independence. After replacing the Pound Sterling with the dollar divided into 100 cents, the British Caribbean Territories (Eastern Group) Currency Board was created in 1950. The new money would be similar to that of the following colonies: Barbados, St. Kitts, Antigua, Dominica, Grenada, St. Lucia, St. Vincent, Montserrat, British Virgin Islands, Trinidad & Tobago, British Guyana. The last of which had already been using a dollar divided into 100 cents after the middle of the 19th century and had been rejoined by Trinidad & Tobago in 1935. Trinidad & Tobago would leave this monetary group in 1962 because of its independence. The same year the British Virgin Islands would use the American dollar. This monetary union was kept until 1965, at which time it was replaced by the East Caribbean Currency Authority that only consisted of Antigua, St. Kitts, Dominica, St. Lucia, St. Vincent, Montserrat, Barbados and Grenada. Barbados would leave this authority in 1973. The East Caribbean Currency Authority would last until 1983.
The most flamboyant attempt at unity was that of Federation of the West Indies from 1958 to 1962. The federation consisted of the following countries: Trinidad & Tobago, Jamaica, Barbados, Antigua, Dominica, Grenada, St. Lucia, St. Vincent, St. Kitts, Nevis, Anguilla, Montserrat as well as the Cayman Islands and Turks & Caicos which had been administered after Jamaica until 1959. Trinidad was the federal capital. The independence of Trinidad & Tobago and of Jamaica would break up the federation.
It was a period of independence. Trinidad & Tobago became an independent constitutional monarchy under the auspices of Queen Elizabeth II on August 31, 1962, and a republic on August 1, 1976. Jamaica would follow the same course becoming an independent kingdom on August 6, 1962 and Guyana on May 26, 1966 (becoming a republic on February 23, 1970). Barbados became an independent kingdom on November 30, 1966.
In 1967, Antigua, Dominica, Grenada, St. Kitts Nevis Anguilla, St. Lucia and St. Vincent ( in 1969) obtained a grand autonomy "Statehood" which limited relations with Great Britain to foreign affairs and defense. These would become known as States Associated with the United Kingdom.
On November 3, 1978, Dominica became an independent republic. The other associated states also gained independence but stayed within the monarchy. Thus Grenada became independent on February 7, 1974; St. Lucia on February 22, 1979; St. Vincent on October 27, 1979; Antigua on November 1, 1981 under the name Antigua and Barbuda; and St. Kitts Nevis on September 19, 1984. St. Vincent took the name of St. Vincent and Grenadines.
It is important not to confuse the Grenadines of St. Vincent and the Grenadines of Grenada which after November 14, 1973 and December 29, 1973 had established separate postal administrations.
The Cayman Islands, Turks & Caicos, British Virgin Islands, Montserrat and Anguilla remained British colonies.
Actually the British Virgin Islands and Turks & Caicos had their dollar pegged to the American. The Cayman Islands had their own dollar. The Cayman Islands and Turks & Caicos, formerly tied administratively to Jamaica, had decimalized in 1969.
Under the monetary plan, The East Caribbean Central Bank succeeded the East Caribbean Currency Authority in 1983. The new central bank reassembled Anguilla, Montserrat, St. Kitts, Nevis, Dominica, St. Lucia, Grenada, Antigua & Barbuda, St. Vincent & Grenadines.
In January 1967, CARIFTA, Caribbean Free Trade Area, was created. It was comprised only of Antigua, Barbados and Guyana. the group was rejoined on May 1, 1968 by Trinidad & Tobago; on June 1, 1968 by Dominica, Grenada, St. Kitts, St. Lucia and St. Vincent; on August 1, 1968 by Jamaica and Montserrat and in May 1970 by Belize. Belize was the former British Honduras that would become a monarchy under the auspices of Queen Elizabeth II on September 21, 1981. The independence of Belize was delayed by claims in Guatemala.
In 1973, Trinidad & Tobago, Barbados, Jamaica, and Guyana signed accords which on August 1, 1973 allowed them to create CARICOM or the Caribbean Community. Caricom comprised a Caribbean Common Market. On May 1, 1974 the accord was also agreed to by Dominica, Grenada, Montserrat, St. Lucia, St. Vincent and Belize. As a result of these agreements, Carifta no longer would exist. Antigua would join Caricom on July 4, 1974 and St. Kitts on July 6, 1974. The Bahamas, an independent monarchy since July 6, 1973, became a member of Caricom, but not part of the common market until July 4, 1983. Caricom consisted of an economic, social, technical cooperation and a foundation for foreign relations.
The common market was a preparation for more serious undertakings in 1995. Caricom cooperated with the Carribbean Development Bank, formed on October 18, 1969 which had as its members countries outside those discussed in this article -- Venezuela, Canada, Colombia and the United Kingdom. It also cooperated with the University of the West Indies (created in 1951), The West Indies Shipping Corporation, The Carribbean Meteorological Organization and the Caribbean Examinations Council. All these organizations showed a real desire for regional cooperation. Caricom was all the while a very disparate organization for the Eastern Caribbean. Their interests were more sporadic.
It was for this reason that the creation of an organization of cooperation that was more limited territorially became necessary. A treaty forming the Organization of Eastern Caribbean States was signed in Basseterre (St. Kitts) on June 18, 1981 between Antigua and Barbuda, the British Virgin Islands, Dominica, Grenada, Montserrat, St. Kitts Nevis, St. Lucia and St. Vincent & the Grenadines. The treaty let to the establishment of a common market. The main secretariat was located in St. Lucia, economic affairs in Antigua, as well was civil aviation, and Aeradio services. Fishing administration was situated in St. Vincent, Dominica took charge of agriculture and development. St. Lucia also oversaw anti-drug services and natural resources. If one excludes the office of investment and promotion in Washington, centralization of external services dragged.
St. Lucia, St. Kitts Nevis and St. Vincent & the Grenadines set up a common High Commission in London. in Brussels, Antigua & Barbuda, Dominica, St. Kitts Nevis, St. Lucia, St. Vincent & the Grenadine set up a common mission based on the European Union. In the realm of the OECS, certain economic and commercial matters of the British Virgin Islands and Montserrat were also treated by this mission, although these two British colonies were represented by Great Britain.
This history is a study of the balance between a necessary economic and administrative integration and an indispensable political independence.
June 1996
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