The Economic Theory of Integration in Central America and the Caribbean: From Autonomy to Open Regionalism

This paper analyses the evolution of integration ideas in Central Americ a and the Caribbean. Firstly, the Vinerian logic of integration is analyse d. Then, the basis of the Prebischian logic of regionalism is examined. T he aim of the paper is to demonstrate that Viner's proposals on regional were not important by promoting regional integration in the 1960s and 1 970s. Integration was largely based on Prebischian proposals of regional industrialisation. However, the collapse of the first wave of regionalism has produced a return of traditional Vinerian theory of customs unions. Integration is currently conceived as a mechanism to fur ther the insertion of Central American and Caribbean countries in the w orld economy. The paper evaluates this evolution of integration ideas an d its implications for regional development. Conversely to previous integration initiatives developed in 1960s an d 1970s, the new wave of regionalism in the 1990s in Central America a nd the Caribbean has subscribed to an economic approach based on the insertion into the world economy and trade liberalisation.