This part of the report aims to provide background information on the economic
structure, trade and poverty in the OECS islands. The OECS group of islands consisting
of Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St.
Vincent and the Grenadines, are a more integrated area within the CARICOM group of
countries. They share a single currency and monetary policy for all the islands is set by
the Eastern Caribbean Central Bank (ECCB).
The OECS islands are among the smallest in CARICOM with the smallest
populations. Their productive capacity is limited by their physical size and the quality of
the labour force available to them. They belong to the Less Developed Country group of
CARICOM despite the fact that some of them have consistently produced higher per
capita GDP than some of the larger CARICOM members. Their LDC status is more a
reflection of the constraints described above than anything else.
The OECS members share many similarities. The traditional dominance of the
agricultural sector can be seen in their export profiles. In St. Lucia, agricultural exports
account for greater than 60% of total exports. In the remainder of countries, this
percentage averages between around 45% and 50%. On average, the manufacturing
sector averaged 7% of GDP in the OECS, and contributes a relatively smaller share to
total export earnings than agricultural products. While St. Lucia has traditionally been the
largest manufacturing country in the OECS, manufacturing exports have declined
considerably. The larger manufacturing firms in the OECS islands are foreign owned and
produce primarily for the US market. Locally owned firms are dominated by agroindustrial
products, led by fruit, vegetable and beverage processing, and household
products derived from the oils and fats industry are goods which fall within the category
of consumer goods.