CARIBBEAN STUDIES

ISSUES IN CARIBBEAN DEVELOPMENTConcepts, Promotion and Globalisation

Prepared and Presented by: J. HymanManchester High School

March 7, 2012

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LEARNING OUTCOMES

• At the end of the session, students will be able to:

1. Describe the concepts of development and the indicators used to measure development

2. Evaluate how development in the Caribbean region is influenced by political, economic, social, cultural, environmental and technological factors

3. Assess the ways in which globalisation affects development in the region

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ANTECEDENTS

During the last half of the 20th Century, four factors became the central concerns and aspirations of the world’s peoples:

1. Peace2. Freedom3. Development4. Environment

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DEVELOPMENT…?

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CONCEPTS

1. Enactment of human values- For anything to develop or become better,

improvement has to be related to some values that are being enacted.

- Different people in this scenario see development differently e.g. knowledge, material possessions, relationships.

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CONCEPTS (CONT’D)

2. Increasing differentiation or complexity:- For anything to develop, it must become more complex and more differentiated e.g. how society is traditionally described: developed, developing, agrarian, opulent, industrialized.

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CONCEPTS (CONT’D)

3. Liberation or human freedom:- For any people to be developed, this must be accompanied by growth in their autonomy, the options they pursue and in their sense of self-efficacy- This is achieved through education and empowerment

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APPROACHES TO DEVELOPMENT

1. Economic development2. Human development paradigm (HDP)3. Sustainable development

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ECONOMIC GROWTH OR ECONOMIC DEVELOPMENT…?

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ECONOMIC GROWTH

• Occurs when an economy achieves an increase in its national income (GNP) in excess of its rate of population growth

• An increase in the productive potential in an economy shown by an outward shift of the production possibility curve

• This leads to an increase in GNP per capita• Does not always result in increased benefits

for poorer members of the society

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DEFINITION (CONT’D)

• An increase in the real GDP over a period of time e.g. if in year 1, real GDP was $100B and in year 2 it rises to $110B, the economic growth would be 10%

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GROWTH VS. DEVELOPMENT

• Economic growth may result in an improvement in the standard of living of a small proportion of the population, whilst the majority of people remain poor.

• Economic development requires that the benefits of economic growth are distributed amongst all individuals of the population.

• It is therefore possible for the Caribbean to experience economic growth but not have any economic development

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1. ECONOMIC DEVELOPMENT

• The processes through which the quality of life, economically and socially, can be improved

• Encompasses an improved quality of life by:– Better education– Higher standards of health and nutrition– Less poverty– Cleaner environment– Equality of opportunity– Greater individual freedom– Richer cultural life (World

Bank Report, 1991)

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INDICATORS OF ECONOMIC DEVELOPMENT What is an indicator? This is a qualitative

assessment of how countries are ranked on some variable or category such as population growth or savings per capita.

Gross National Product- is the value of goods and services produced by a country plus any income derived from abroad. While it is said to be a good indicator of the economic strengths and weaknesses of countries, it cannot be said to indicate economic development.

Gross Domestic Product- is the total market value of goods and services of a country in a given year. This is also used to divide the population.

Population Growth- is calculated by birth and death rates, as well as migration statistics, and is a key indicator of economic growth.

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INDICATORS OF ECONOMIC DEVELOPMENT CONT’D

Age dependency ratio- is the ratio of dependents- people younger than 15 and older than 65 to the working population ( 15- 64). This measure suggests that if there were more economically active persons than dependents then they would be better able to take care of the dependents.

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2. HUMAN DEVELOPMENT PARADIGM (HDP) 1990S

Basic views: People are the means and ends of development-

thus people are central to the development process.

Development is largely about broadening people’s choices; they have more choices and opportunities to develop themselves along the lines that bring them the greatest sense of well being as well as income.

Poverty and income inequality are the major problems of societies that prevent a better quality of life.

HDP embraces all of society, not just the economy

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HDP (CONT’D)• Essential components (Pillars) of HDP:

– Equity (equitable access to opportunities) by all groups within society.

– Productivity (requires investments in people and an enabling macroeconomic environment for them to achieve their maximum potential) For example, equal access to education and job opportunities will increase productivity levels of the country.

– Empowerment (people must participate in the activities, events and processes that shape their lives) in order to become productive citizens. With people being able to chart the course of their development then this will boost their self esteem.

– Sustainability (the next generation deserves the opportunity to enjoy the same well-being that we now enjoy)

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HDP (CONT’D)

HDP is the most holistic development model that exists, embracing: Economic growth Social investment People’s empowerment Provision of basic needs and social safety nets Political and cultural freedoms

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SUSTAINABLE DEVELOPMENT

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3. SUSTAINABLE DEVELOPMENT

• ‘Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.’

• Sustainable development is not primarily an environmental issue.

• In societies where there is inequality in the distribution of income, daily survival will hold more priority than the well-being of future generations.

• Concerned about the measure of the quality of life, called the Human Development Index (HDI)

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SUSTAINABLE DEVELOPMENT Defined as development that is likely to

achieve lasting satisfaction of human needs and improvement of the quality of life and encompasses:

Help for the very poorest who are left with no option but to destroy their environment to survive

Idea of self-reliant development with natural resource constraints

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SUSTAINABLE DEVELOPMENT Cost effective development using different

economic criteria to the traditional –i.e. development should not degrade environment

Important issues of health control, appropriate technologies, food self-reliance, clean water and shelter for all

People centered activities are necessary- human beings are the resources in the concept

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HUMAN DEVELOPMENT INDEX (HDI)

• The HDI, as measured by the UNDP uses the following factors:

i. Real GDP per capitaii. Longevity or life expectancy at birth in yearsiii.Educational attainment (access to education

and literacy rates)

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UNDP HDI REPORT 2005Country HDI

Barbados 0.878

Saint Kitts and Nevis 0.834

Bahamas 0.832

Trinidad and Tobago 0.801

Antigua and Barbuda 0.797

Grenada 0.787

Dominica 0.783

Saint Lucia 0.772

Saint Vincent and the Grenadines

0.755

Suriname 0.755

Belize 0.753

Jamaica 0.738

Guyana 0.720

Haiti 0.475

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HDI INTERPRETATIONS

High HDI Countries (<0.8) Medium HDI Countries (0.51 – 0.79) Low HDI Countries (>0.5)

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HDI AS PART OF UN MDG

1. Eradicate extreme poverty2. Achieve universal primary education3. Promote gender equality and empower

women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria and other

diseases7. Ensure environmental sustainability8. Develop a global partnership for

development

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FACTORS INFLUENCING DEVELOPMENT

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FACTORS INFLUENCING DEVELOPMENT

1. Economic2. Political3. Social4. Cultural5. Environmental

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ECONOMIC FACTORS

Development cannot occur without a vibrant economy or productive sector

Productive sector: Primary (extractive) Secondary (manufacturing) Tertiary (services)

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FACTORS THAT IMPACT THE CARIBBEAN PRODUCTIVE SECTOR

• Competitiveness (performance on the world market)

• Demand (market share inside/outside)• Productivity (manual vs. mental)• Infrastructure (reliable systems,

bureaucracy)• Investment climate (FDI, Entrepreneurship)• Debt (trade imbalances)• External shocks (vulnerability, natural

disasters)• Technology (inadequate investments in

ICTs)

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POLITICAL FACTORS

Political ideologies and beliefs Resource allocation mechanisms (centrally

planned, laissez-faire, mixed)

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SOCIAL FACTORS

• Distribution of wealth and resources can promote/hinder development as it influences the income generation in the society

• Poverty:– Absolute (# of people who are unable to afford

basic goods/services)– Relative (extent to which an individual’s

resources falls below the income level of the economy)

• Inequality/Social exclusion

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SOCIAL FACTORS (CONT’D)

• Underlying causes of poverty:– Unemployment– Temporary employment– Low wage employment– Inflation– Non ownership of resources– Uneven income distribution– Large number of dependents– Discrimination

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CULTURAL FACTORS

• How one interprets Caribbean history and future will influence how development is seen and how one participates in it

• Development is essentially about the enactment of human values in which the emphasis is on modernization and western lifestyle

• Caribbean society, throughout colonialism, was based on exploitation and a rigidly stratified social system

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ENVIRONMENTAL FACTORS

Natural disasters Environmental disasters Lackadaisical attempts to curb soil erosion Poor disaster preparedness and disaster

management policies

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