Economics of small countries and development policy in the Caribbean Region

Abstract

This paper discusses the vulnerability of the island countries in the Caribbean Region. It will show that, apart from purely economic considerations, these countries have to face serious constraints related to political and military developments. Their geographical position, in the middle of trade flows to and from powerful entities such as the United States, Mexico and Venezuela, render the Caribbean islands particularly exposed to political influences. It is suggested that these countries should seek cooperation between themselves to reinforce the mutual trade flows and relations.