Downsides to CSME free movement of labour

BEING IMPRESSED would be an understatement. It’s my first “real” visit to Atlanta, Georgia, United States (US). I’ve wanted to come here for some time, and finally got the chance to day-transit through the city en route to my final destination. For over 30 years, I’ve heard countless stories about the history of the “Black Mecca” of the US.

As a lover of hip hop culture, I appreciate now having visited every city considered foundational to the genre. The vibe here is impeccable.

I’m beginning to better understand why the civil rights movement found, and still finds, a stronghold in this city. There’s a rich, progressive culture worth protecting.

My journey across the Atlanta metro area has stirred thoughts about the free movement of labour under the CARICOM Single Market and Economy (CSME), especially as Barbados prepares to open its borders to full free movement on October 1. It’s hard not to draw comparisons when you’re in one of the most important logistical hubs of the eastern US. I still believe Barbados could be the logistical centre of the CSME, if we truly committed to the vision.

Coca-Cola is headquartered in Atlanta for good reason. Once known as Terminus, the city first rose to prominence as a key railroad junction in the 19th century. Several major rail lines ended there. Its location – on the Piedmont foothills, just south of the imposing Appalachian Mountain Range – was ideal for land-based transport.

The Appalachian Mountains stretch from Maine in the north to northern Georgia. That meant cargo headed south or west of Georgia often found its most efficient route through Atlanta. For instance, a truck delivering parcels from New York to Texas would likely remain close to the East Coast until reaching Atlanta, before veering west – more economical than attempting a southwest diversion earlier.

With such geographic advantages, the region attracted significant investment in step with growing infrastructure needs. Atlanta now boasts the densest and best-maintained road network in the south-eastern US. The metro area is sprawling, and the population continues to grow, drawn by economic opportunity, affordable real estate, and a relatively low crime rate.

These features led to a phenomenon I didn’t expect to encounter. As the city’s old nickname suggests, there’s still a dominant African American presence, followed by white residents and a growing mix of other ethnic groups.

But the distribution within that “other” group surprised me.

Take Duluth, a city in the northeast of the metro area – it’s affectionately referred to as Korean Town. While I’ve seen strong Korean representation elsewhere in the US, such as the suburbs of Houston, the scale in Duluth is remarkable. This community has established more than just churches; they’ve built a full-fledged business ecosystem across multiple sectors.

Buildings proudly display signage in Korean.

Heading southeast, I noticed a significant Spanish-speaking population. This wasn’t something I had anticipated, though it’s clearly not a recent development. I can confirm they dominate lower-level manufacturing roles and administrative support across several industries.

Although anti-immigration sentiment may be rising nationally, Atlanta’s demographic is evolving - and arguably always has been. Its investments in infrastructure and culture continue to attract people from all backgrounds. The region’s natural geographic advantage supports further expansion, especially with environmental sustainability mandates in mind. Of course, there are weak spots – insurance and consumer protection regulation, for instance – but these are tangential to my main argument.

Barbados is no Atlanta, and certainly no Georgia. Still, we too have a highly advantageous geographic position, as I’ve often argued. But unlike Atlanta, we face natural constraints around organic population growth. Our population has stagnated, and despite our size, it remains dense.

I remain strongly pro-migration within the CSME – though my tone may seem cautious.

Compelling case

To paraphrase my former University of the West Indies colleague, Dr Kristina Hinds, we’ve either under-invested in the infrastructure needed to support growth or mismanaged what we already have. She has, for years, also made a compelling case that Government routinely mishandles public resources – even at the current population size. One can accept then that a population spike post-October can place massive strain on already fragile systems. Do we have the means to house people with dignity. What less can we say about our sanitation system.

I used to challenge her views, but the merit is undeniable. I must acknowledge as the drinking water in parts of St Lucy remains darker than my beautiful skin. And I anticipate push-back in the short-term in the construction, retail, and tourism sectors – especially where “unskilled” and blue-collar labour dominates. Those jobs will feel threatened sooner than the rest. Hopefully the unions is able to intervene where the hiring practices become predatory towards both locals and CSME citizens alike.

The borders aren’t open yet, but I challenge anyone to visit the island’s major construction sites. It’s likely you won’t understand most of the workers.

Who’s to say that cheaper regional labour won’t be even more appealing to employers once formal barriers drop? Talk to security officers across the island – you might think you’re in Kingston. You may also wish to order food from some establishments and you’d be tempted to ask for jerk chicken by default.

This is the way of capitalism.

I’m less concerned about crime than Professor Dwayne Devonish is.

Crime is transnational now; influence transcends borders. If you owe a don money, he doesn’t need to be in the same room to collect. I also trust our Immigration Department to continue monitoring people of interest effectively.

Just because people can stay and work longer in Barbados doesn’t mean they become invisible.

From a labour economics perspective, open borders could slow wage growth in Barbados over the long run. That’s because we are, relatively speaking, a high-wage jurisdiction – the highest in CARICOM, even with our high cost of living.

Barbadians will have to compete.

Yet there are upsides. In theory, wages in other CSME states may rise as they try to retain talent.

Countries with high emigration may be forced to raise pay – however marginally. There’s also opportunity for Barbadians to relocate, though salary expectations may need to be adjusted. Cost of living elsewhere tends to be more appealing and more conducive towards wealth building, provided the opportunity is right. Belize comes to mind.

There’s ample work there.

Openness also creates incentive for investment.

Again, Belize stands out – especially in agriculture and logistics. Its Central American location and regional treaties make it a potential gateway to that entire corridor. Barbados could benefit, coupling tourism products more effectively. Our people would also be better positioned to manage long-term regional projects.

Atlanta is sprawling, yes – but that’s largely due to the practical freedoms of movement that the CSME cannot yet match. Still, the city highlights the long-term benefits of enabling mobility, especially when jurisdictions capitalise on natural advantages and build sustainably. If all works out in Barbados, then its possible that our concerns with an ever-weakening social security system will abate. There’s high possibility of Barbadians leaving in droves as a result. Things may balance out eventually.

If the dynamic of Atlanta offers anything to learn from, may we enter this new era fully apprised – and not just idealistically hopeful.

Jeremy Stephen is an economist/ financial analyst with extensive experience in private equity and economic consulting in Barbados and the region.

Email: economistfeedback@gmail.com

ATLANTA is one of the most important logistical hubs of the eastern United States.

(Internet

image)