C ARIBBEAN S TUDIES I SSUES IN C ARIBBEAN D EVELOPMENT Concepts, Promotion and Globalisation Prepared and Presented by: J. Hyman Manchester High School March 7, /28/ :22 AM 1

L EARNING O UTCOMES 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 8/28/ :22 AM 2

A NTECEDENTS During the last half of the 20 th Century, four factors became the central concerns and aspirations of the world’s peoples: 1. Peace 2. Freedom 3. Development 4. Environment 8/28/ :22 AM 3

D EVELOPMENT …? 8/28/ :22 AM 4

C ONCEPTS 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. 8/28/ :22 AM 5

C ONCEPTS ( 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. 8/28/ :22 AM 6

C ONCEPTS ( 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 8/28/ :22 AM 7

A PPROACHES TO D EVELOPMENT 1. Economic development 2. Human development paradigm (HDP) 3. Sustainable development 8/28/ :22 AM 8

E CONOMIC G ROWTH OR E CONOMIC D EVELOPMENT …? 8/28/ :22 AM 9

E CONOMIC G ROWTH 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 8/28/ :22 AM 10

D EFINITION ( 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% 8/28/ :22 AM 11

G ROWTH VS. D EVELOPMENT 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 8/28/ :22 AM 12

1. E CONOMIC D EVELOPMENT 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) 8/28/ :22 AM 13

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. 8/28/ :22 AM 14

I NDICATORS OF E CONOMIC DEVELOPMENT C ONT ’ D Age dependency ratio- is the ratio of dependents- people younger than 15 and older than 65 to the working population ( ). 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. 8/28/ :22 AM 15

2. H UMAN D EVELOPMENT P ARADIGM (HDP) 1990 S 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 8/28/ :22 AM 16

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) 8/28/ :22 AM 17

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 8/28/ :22 AM 18

S USTAINABLE D EVELOPMENT 8/28/ :22 AM 19

3. S USTAINABLE D EVELOPMENT ‘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) 8/28/ :22 AM 20

S USTAINABLE D EVELOPMENT 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 8/28/ :22 AM 21

S USTAINABLE D EVELOPMENT 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 8/28/ :22 AM 22

H UMAN D EVELOPMENT I NDEX (HDI) The HDI, as measured by the UNDP uses the following factors: i. Real GDP per capita ii. Longevity or life expectancy at birth in years iii. Educational attainment (access to education and literacy rates) 8/28/ :22 AM 23

UNDP HDI R EPORT 2005 CountryHDI Barbados0.878 Saint Kitts and Nevis0.834 Bahamas0.832 Trinidad and Tobago0.801 Antigua and Barbuda0.797 Grenada0.787 Dominica0.783 Saint Lucia0.772 Saint Vincent and the Grenadines0.755 Suriname0.755 Belize0.753 Jamaica0.738 Guyana0.720 Haiti /28/ :22 AM 24

HDI I NTERPRETATIONS High HDI Countries (<0.8) Medium HDI Countries (0.51 – 0.79) Low HDI Countries (>0.5) 8/28/ :22 AM 25

HDI AS PART OF UN MDG 1. Eradicate extreme poverty 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, malaria and other diseases 7. Ensure environmental sustainability 8. Develop a global partnership for development 8/28/ :22 AM 26

F ACTORS I NFLUENCING D EVELOPMENT 8/28/ :22 AM 27

F ACTORS I NFLUENCING D EVELOPMENT 1. Economic 2. Political 3. Social 4. Cultural 5. Environmental 8/28/ :22 AM 28

E CONOMIC F ACTORS Development cannot occur without a vibrant economy or productive sector Productive sector: Primary (extractive) Secondary (manufacturing) Tertiary (services) 8/28/ :22 AM 29

F ACTORS THAT IMPACT THE C ARIBBEAN P RODUCTIVE S ECTOR 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) 8/28/ :22 AM 30

P OLITICAL FACTORS Political ideologies and beliefs Resource allocation mechanisms (centrally planned, laissez-faire, mixed) 8/28/ :22 AM 31

S OCIAL 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 8/28/ :22 AM 32

S OCIAL 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 8/28/ :22 AM 33

C ULTURAL 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 8/28/ :22 AM 34

E NVIRONMENTAL FACTORS Natural disasters Environmental disasters Lackadaisical attempts to curb soil erosion Poor disaster preparedness and disaster management policies 8/28/ :22 AM 35