The Caribbean Basin Economic Recovery Act--1983: Its Impact on the Economic/Political Stabilities within the Region.

Abstract

Abstract : On 24 February, 1982, President Ronald Reagan announced before the Organization of American States a new bold initiative designed to promote economic development for the countries of the Caribbean and Latin America. Later, on 5 August 1983 his initiative was enacted into law as The Caribbean Basin Economic Recovery Act-1983. The new law, often referred to as the Caribbean Basin Initiative or CBI, consists of integrated, mutually reinforcing measures in the fields of trade, investment, and financial assistance for the countries within the region. Critics in this country and in the region felt that his initiative was just another idea by a new administration to pacify and placate our neighbors to the south. After six years of CBI, the message to the world is loud and clear--its working, and the United States is serious about special incentives for countries in the region. This study examines the significant reasons as to why the CBI is working and looks at its impact on the long term prospects for economic development, stability, and security throughout the Caribbean and Latin America.