There are probably no two less similar regions on the globe than East Asia and the Caribbean. The first is heralded as a highly dynamic, economically buoyant cluster of affluent nations; the latter remains a visibly dependent, financially depressed mélange of poor mini-states. While East Asia is poised to leapfrog over the industrial age, the Caribbean barely crawls through the agricultural epoch. Distance, geography, language, and orientation separate the two parts of the world. And both have distinct mores that would ordinarily hinder close contact.
Surprisingly, relations between the chronically depressed Caribbean and the prosperous, technologically savvy countries of East Asia are expanding. The growing exchange has become part of the changing face of world manufacturing--an arena where trade, covenants governing trade, geopolitics, labor markets, and proximity to markets all intertwine. And, unlike some transnational arrangements of the past, Asia's new Caribbean connection may forge lasting ties.
From trickle to stream
During the past two years, over 60 East Asian companies set up branch plants on several Caribbean islands--and more are on the way. Estimates are that as much as $60-65 million has been channeled to Puerto Rico and neighboring islands by East Asian businesses. Last year, China finalized terms of agricultural ventures in the region and sent 45 technicians to upgrade a Jamaican textile plant. "More are coming in 1988," insists Antonio Colorado, director of Puerto Rico's Economic Development Administration. "This is not exactly a boom, but the level of interest is far greater now than it was as recently as last winter."
Independent analysts believe over 14,000 people now work for companies whose home bases are in Singapore, Hong Kong, Taiwan, Japan, and Korea. This is four times the level in 1986. A World Bank economist predicts significant increases before 1990, propelling the number of direct jobs close to the 20,000 mark. "And there is no reason it would not continue," the World Bank economist added.
Several factors explain the increase. Al Roach is chairman of TII Industries, a Long Island manufacturer of electronic products such as voltage-surge protectors for computers. He employs a work force of nearly 2,000 at a trio of Caribbean plants. "For the first time, many Caribbean countries are really capable of processing and assembling products out of the traditional lines, such as coffee, fruits, and low-value items." While, until recently, only Puerto Rico boasted an infrastructure that could sustain manufacturing, now "a dozen of the islands can deliver on promises" such as reliable electric power.
Avoiding Smoot and Gephardt
At the same time, Asians sense that U.S. quotas, protectionism, and nontariff barriers to their universe of consumer products could suddenly shut off access to the U.S. market. They understand that America's doors are more or less open wide to Caribbean exports. "We feel that, regardless of what happens in your economy or in worldwide conditions, you would not intentionally hurt most developing countries," says Johnathan Yuen, a director of the Singapore Economic Development Board in New York City. "You cannot really have guarantees forever, but all of the countries involved
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