ABSTRACT
This chapter focuses on an aspect of the new political economy of US-Caribbean relations that is of particular relevance to our study: namely, the (re-) emergence of the so-called offshore Caribbean as an export platform for US-made manufactured goods that are assembled in the region and then subsequently re-exported to the US market. For larger Caribbean islands in close geographical proximity to the US, these policy prescriptions approximated a new economic development model that sought to encourage US firms to outsource the most labour-intensive aspects of the production process to the region in exchange for a range of economic incentives offered by specially designated EPZs. The chapter traces the origins of economic model; and outlines the specific legislation governing its operation. The chapter assesses the offshore development model in terms of the costs and benefits associated with offering preferential treatment to export-orientated investment.
