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and some other small states. These show that as independent
states the Caribbean dependencies would be among the world's smallest (in terms of population). They would not however be among the poorest as measured in GNP per capita. Some would remain dependent on aid but then so do many independent states.
They are heavily dependent on one industry tourism - but not unusually so. And the financial services sector is growing apace in many of the Caribbean dependencies (the Cayman Islands and Anguilla in particular claiming that success in this field depends on the UK link). There is something in this claim but it
need not be a conclusive obstacle to independence in conditions
where the financial markets are well established. Moreover the
TCI episode has shown that the UK umbrella is not infallable. significant for these dependencies is their close economic dependence on other regional influences notably tourism from the US but also inter-island trading. Their proximity to other
small and reasonably prosperous states, as well as the United
States, gives added credibility to the idea that their economies
can be made to fit into a well founded regional economic system.
Moreover if the UK/Cayman/US Mutual Legal Assistance Treaty (see
Annex D) can be adopted as a model for the other territories the
UK link may be found to be less essential to economic confidence
in the region [more detail on the Legal Assistance Treaty].
As
25 Further economic development will not however take place autonomously. Help from HMG prior to independence will be
necessary. Diversification and increased private investment are
the keys to success. But neither will occur without a direct
stimulus from outside. This needs to take the form of increased
infrastructure investment, promotion of the commercial and
tourist facilities of the dependencies, and adequate institutions
to oversee economic development. The external sources of finance need not all be governmental. Nor need all the aid be grant aid.
In so potentially profitable part of the world it should be
possible to combine both public loan finance and money from the
private sector. As a general rule little of this is likely to
happen, or happen fast enough, without an adequate and
sufficiently ambitious plan emanating from government sources
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