Abdicating Monetary Sovereignty as an Economic Development Strategy: The Case of Dollarization in the British Virgin Islands

By Robert Clemente Chalwell.

Published by The International Journal of Interdisciplinary Global Studies

Format Price
Article: Print $US10.00
Published online: July 30, 2015 $US5.00

This case study explores the utility of monetary sovereignty to the economic prosperity of developing countries and focuses on the policies of the UK Overseas Territory of the British Virgin Islands (BVI). The economic data compiled in this study indicates that a small country or territory, employing sole use of the currency of a more powerful country, can be afforded a measure of power and influence relative to other countries. Unlike the BVI, the independent Commonwealth Caribbean nations exhibit to be "jealously guarding their sovereignty;" maintaining over 9 individual sovereign currencies, which contributes to a CARICOM-driven integration project that now seems dead in the water. As an Associate Member of CARICOM, with voluminous FDI, a coveted financial services sector, and one of the highest GDP per capita in the sub-region, the BVI is well-poised to exercise significant influence. Employing analysis methodologies from the fields of IPE, IR, Trade, and Public Policy, this paper enhances the body of knowledge across the political sciences. Along with exploring implications of power, the findings also expand the Development toolbox by highlighting the economic opportunities which strategic monetary policy choices, and particular to the case of British Virgin Islands- dollarization, can evince.

Keywords: Finance, Economy, Power

The International Journal of Interdisciplinary Global Studies, Volume 10, Issue 3, September 2015, pp.15-26. Article: Print (Spiral Bound). Published online: July 30, 2015 (Article: Electronic (PDF File; 541.616KB)).

Dr. Robert Clemente Chalwell

Assistant Professor, Behavioral and Social Sciences, Broward College, Pembroke Pines, Florida, USA