Foreign Policy and Small State Economic Adjustment

289 Pages·2015·1.93 MB·English

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Electronic Theses and Dissertations Graduate Studies
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Dana Marie Morris
University of Denver
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Morris, Dana Marie, "Caribbean-China Relations: Foreign Policy and Small State Economic Adjustment"
(2008). Electronic Theses and Dissertations. 884.
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CARIBBEAN-CHINA RELATIONS:
FOREIGN POLICY AND SMALL STATE
ECONOMIC ADJUSTMENT
________
A Dissertation
Presented to
The Faculty of the Josef Korbel School of International Studies
University of Denver

_________

In Partial Fulfillment
of the Requirements for the Degree
Doctor of Philosophy
__________
by
Dana Marie Morris
November 2008
CONTENTS
LIST OF TABLES......................................................................................................................................IV
ACKNOWLEDGEMENTS.......................................................................................................................VI
LIST OF ABBREVIATIONS.................................................................................................................VIII
INTRODUCTION........................................................................................................................................1
RESEARCH RATIONALE...............................................................................................................................1
Brief Overview of Caribbean-China Relations.....................................................................................3
RESEARCH QUESTIONS...............................................................................................................................7
Definition of the Caribbean................................................................................................................12
METHODOLOGY..................................................................................................................................16
Triangulation and Validity..................................................................................................................18
Hypotheses..........................................................................................................................................19
STRUCTURE OF DISSERTATION.................................................................................................................23
CHAPTER 1................................................................................................................................................28
THE FOREIGN POLICIES OF SMALL STATES...............................................................................................28
CONCEPTUALIZING ‘SMALLNESS’.............................................................................................................30
Features of Small States......................................................................................................................32
Economic Adjustment in Small States.................................................................................................45
THE FOREIGN POLICY STRATEGIES OF SMALL STATES.............................................................................48
THEORETICAL FOUNDATIONS: THE LEVELS OF ANALYSIS QUESTION......................................................55
CHAPTER 2................................................................................................................................................60
DEVELOPMENT AND FOREIGN POLICY: THE CARIBBEAN CONTEXT.........................................................63
The History of Caribbean Foreign Policies........................................................................................63
1980s: Re-Alignment with the West....................................................................................................76
1990s: Alignment Doesn’t Matter?.....................................................................................................77
CURRENT ECONOMIC CLIMATE IN THE CARIBBEAN.................................................................................79
THE CARIBBEAN POLITICAL SYSTEM........................................................................................................84
CARIBBEAN MOTIVATIONS: SOVEREIGNTY FOR SALE?............................................................................87
CHAPTER 3................................................................................................................................................97
CHINESE MOTIVATIONS IN THE CARIBBEAN: ECONOMICS, RECOGNITION, AND
GREAT POWER INFLUENCE................................................................................................................97
CHINA IN LATIN AMERICA AND THE CARIBBEAN: A PART OF CHINA’S GRAND STRATEGY IN THE
THIRD WORLD........................................................................................................................................100
China’s Evolving Third World Policy...............................................................................................100
China’s Use of Soft Power................................................................................................................106
CHINA’S MOTIVATIONS IN THE CARIBBEAN...........................................................................................112
China’s First Motivation: Economics...............................................................................................114
China’s Second Motivation: Recognition..........................................................................................120
China’s Third Motivation: Influence.................................................................................................124
CHINA’S PRAGMATIC RISE.....................................................................................................................131
MOTIVATIONS MATRIX: TWO-WAY TRADE BETWEEN CHINA AND THE CARIBBEAN.............................135
CHAPTER 4..............................................................................................................................................138
DOMINICA...........................................................................................................................................141
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Dominica’s Loss of Preferences........................................................................................................141
China as the Source of Adjustment...................................................................................................155
The Net Benefits of Dominica’s Relationship With China: The Trade and Labor Data...................164
GRENADA............................................................................................................................................166
Grenada’s Decision to Switch Recognition to China in 2005...........................................................168
The Net Benefits of Grenada’s Relationship With China: The Trade and Labor Data.....................175
CHAPTER 5..............................................................................................................................................182
OVERVIEW OF JAMAICA’S FOREIGN POLICY SINCE 1962........................................................................186
A Brief Overview of Jamaica’s Modern Relations with China.........................................................197
THE NET BENEFITS ACCRUING FROM JAMAICA’S RELATIONSHIP WITH CHINA......................................205
CHAPTER 6..............................................................................................................................................212
QUESTION 1: WHY IS THERE VARIATION IN THE STRATEGIES EMPLOYED BY DIFFERENT
CARIBBEAN STATES VIS-À-VIS CHINA?...................................................................................................215
QUESTION 2: WHAT MOTIVATES CHINA’S INTEREST IN THE CARIBBEAN?.............................................220
QUESTION 3: WHY DO CARIBBEAN STATES ENGAGE WITH CHINA WHEN DOING SO DOES NOT
YIELD UNAMBIGUOUS ECONOMIC BENEFITS?..........................................................................................224
The Expected Benefits Associated with Chinese Aid.........................................................................225
The Actual Costs Associated with Chinese Aid.................................................................................228
Why then do Caribbean states engage with China when doing so does not yield
unambiguous benefits?......................................................................................................................233
QUESTION 4: WHAT ARE THE IMPLICATIONS OF THE CARIBBEAN’S STRATEGY TOWARDS CHINA
FOR THE STUDY OF SMALL STATES IN INTERNATIONAL RELATIONS?.......................................................237
ALTERNATIVE EXPLANATIONS.....................................................................................................240
CHAPTER 7..............................................................................................................................................248
CARIBBEAN REPOSITIONING AND THE ROLE OF CHINA..........................................................................250
China is Primarily Seen as a Possible Agent of Aid and Thus Adjustment.......................................252
EXTENSIONS OF THIS ANALYSIS.............................................................................................................253
FINAL SUMMATION..........................................................................................................................261
BIBLIOGRAPHY.....................................................................................................................................264

iii
List of Tables
TABLE 1. A TYPOLOGY OF CHINA-CARIBBEAN RELATIONS............................................................................4

TABLE 2. THE EXPECTED RELATIONSHIP BETWEEN STRATEGIC NATURAL RESOURCES AND
FOREIGN POLICY CONSISTENCY IN CARIBBEAN STATES THAT RECOGNIZE CHINA..............................21

TABLE 3. THE RANK OF CARIBBEAN STATES ON THE HDI............................................................................41

TABLE 4. HEY’S CHARACTERISTICS OF THE FOREIGN POLICY OF SMALL STATES.........................................49

TABLE 5. CARIBBEAN ALIGNMENT WITH EXTERNAL POWERS......................................................................65

TABLE 6. UNEMPLOYMENT AND ODA STATISTICS FOR ENGLISH-SPEAKING CARIBBEAN COUNTRIES.........80

TABLE 7. NYE’S THREE TYPES OF POWER...................................................................................................108

TABLE 8. CARICOM TRADE DEFICIT/SURPLUS WITH CHINA 2006............................................................119

TABLE 9. MOTIVATION FOR RELATIONS BETWEEN THE CARIBBEAN AND CHINA........................................136

TABLE 10. DOMINICA’S BANANA PRODUCTION BEFORE AND AFTER THE WTO RULING OF 1999..............147

TABLE 11. KEY DATES IN DOMINICA’S RELATIONSHIP WITH CHINA...........................................................160

TABLE 12. DOMINICA’S IMPORT OF CHINESE GOODS (IN EASTERN CARIBBEAN $).....................................164

TABLE 13. IMPORTANT DATES IN GRENADA’S RELATIONSHIP WITH CHINA................................................169

TABLE 14. GRENADA’S IMPORT OF CHINESE GOODS..................................................................................176

TABLE 15. MODIFIED MOTIVATIONS MATRIX FOR DOMINICA AND GRENADA............................................179

TABLE 16. JAMAICA’S DEVELOPMENT-FOREIGN POLICY NEXUS................................................................194

TABLE 17. JAMAICA’S RELATIONS WITH CHINA, 1972-PRESENT.................................................................198

TABLE 18. JAMAICA’S TRADE WITH CHINA.................................................................................................204

TABLE 19. MODIFIED MOTIVATIONS MATRIX FOR JAMAICA.......................................................................211

TABLE 20. THE RELATIONSHIP BETWEEN RESOURCE ENDOWMENT AND THE CONSISTENCY OF
FOREIGN POLICY TOWARDS CHINA IN THE CARIBBEAN.....................................................................219

TABLE 21. THE RELATIONSHIP BETWEEN RESOURCE ENDOWMENT AND THE CREATIVE USE OF
SOVEREIGNTY IN THE CARIBBEAN.....................................................................................................220

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TABLE 22. THE COSTS AND BENEFITS ASSOCIATED WITH THE CARIBBEAN’S RELATIONSHIP WITH
CHINA................................................................................................................................................225

TABLE 23. CARICOM-CHINA TRADE, 2001-2006.....................................................................................230

v
Acknowledgements
This dissertation would not have been possible without the help of some
very important people. I must first acknowledge Ilene Grabel who served as my
advisor and who suffered through numerous drafts. I will forever be grateful for
her encouragement and support. Rachel Epstein and Suisheng Zhao, the other
members of my dissertation committee, were equally helpful and provided me
with invaluable advice. Jack Donnelly helped get me from a very nebulous topic
to an approved Prospectus and his advice in the early stages of this dissertation
was critical.

I would also like to thank all the Caribbean officials that agreed to be
interviewed and I would also like to acknowledge the role of the CARICOM
Secretariat in providing important trade statistics.

My choice of topic is linked to my friend Diana Thorburn. While
agonizing about a dissertation topic she said, “Write about China in the
Caribbean. We need more work on that topic.” She was right, and I thank her for
her support throughout this project. I would also like to thank my friends and
family who were especially supportive during the entire writing of this
dissertation. I would specifically like to acknowledge the support of Gwen
Phillips (my grand-mother), Elizabeth Brown (my mother), Diallo Dixon, John
vi
Rapley, Deserene Burrell, Damion Brown, Anna Perkins, Damien King and Atai
Lee.

vii
List of Abbreviations

ACP African Caribbean and Pacific Countries

ACS Association of Caribbean States

ADS Approved Destination Status

ALPART Alumina Partners Company

CARICOM Caribbean Community

CARIFTA Caribbean Free Trade Area

CBERA Caribbean Basin Economic Recovery Act

CBI Caribbean Basin Initiative

CET Common external tariff

EC Eastern Caribbean

ECOSOC United Nations Economic and Social Council

EEC European Economic Community

EPZ Export processing zone

EU European Union

G77 Group of 77

GDP Gross Domestic Product

GIFSA Grenada Financial Services Authority

GNP Gross National Product

HDI Human Development Index

IBC International Business Corporation
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IDB Inter-American Development Bank

IMF International Monetary Fund

NAM Non-Aligned Movement

NIEO New International Economic Order

ODA Official Development Assistance

OECS Organization of Eastern Caribbean States

PRG Partial Risk Guarantee

SIDS Small Island Developing States

STABEX System for the Stabilization of Exports

SYSMIN System for Mineral Products

UN United Nations

UNCTAD United Nations Trade and Development Conference

UNDP United Nations Development Program

WTO World Trade Organization

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