European governments were unlikely to be pleased to hear the call for reparations issued by Caribbean Community (CARICOM) heads of state last month. The Caribbean countries jointly released a statement calling for forward action on a plan to pursue reparations for “repairing the damage inflicted by slavery and racism.”
Is this really the best path forward to encourage development and future investment?
Prime Minister Baldwin Spencer of Antigua and Barbuda seems to think so. He argued that “nations that have been the major producers of wealth for the European slave-owning economies during the enslavement and colonial periods entered Independence with dependency straddling their economic, cultural, social and even political lives.” Based on that principle, the CARICOM nations have enlisted the counsel of a British law firm as they seek to gain reparations from Great Britain, France and the Netherlands.
The basis of the grievances leveled by the CARICOM states are hard to argue with, but the conclusion that they draw—that reparations are the solution for economic, social and political problems—would appear to be a non-starter. A primary argument against reparations is that CARICOM states already receive over $450 million per year in foreign aid from Europe, a good portion of which comes from the three nations being targeted.
Should CARICOM be successful in its bid for reparations, one unintended and likely consequence is a scaling back of foreign aid from the target countries. Another likely outcome is that European nations and the United States would pull back on their regular contributions to regional economic and social development.
Caribbean officials have yet to name the specific amount of money being pursued, but unless the desired payment was in the tens of billions of dollars, the whole push for reparations is unlikely to make financial sense.
Listen to a series of interviews with stakeholders in three countries of the CARICOM economic zone: Guyana, Jamaica and St. Kitts & Nevis.