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Differences between economic growth and development
Caribbean Studies
March 14th, 2012
Factors that Promote or Hinder Development Political Ideologies •
This fosters fragmentation and makes countries vulnerable to external interference in domestic affairs of countries example, Grenada.
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It also limits the extent to which countries are able to forge a coordinating foreign policy.
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Despite this, the region has managed to have favourable opportunities for economic stability and investment due to its capitalist paradigm and ideologies which is intricately connected to the world’s capitalist economy. This affords the Caribbean to garner a stamp of approval from first world capitalist societies.
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Countries which embrace any other form of ideology ( planned economic system ) receives very little support from major capitalist countries and so find it difficult to develop for example Cuba economic blockade by the United States and Grenada which embarked on a socialists path in 1983.
Distribution of Wealth •
Uneven distribution of wealth can hinder development.
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When concentrated in the hands of a few( ruling class) it can lead to low level of investment, high unemployment, high level of unskilled labour force and low expenditure in education.
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Wealth is concentrated in the hands of the elites with very little trickling down to the poor. The repercussions of this lead to antagonism between workers and managers; fosters alienation which can lead to social unrests.
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This can lead to corruption, poverty capital flight and brain drain which are recipes for underdevelopment.
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It makes the government dependent on other countries for economic sustainability which leads to high taxation and inflation. Case in point, the IMF policies to improve development in Jamaica.
Changes in Class boundaries •
If within society there is no avenue for social mobility then this can lead to antagonism as people will see themselves as inferior to those who are in higher status.
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A rigid class structure breeds insecurity/ mistrust which hinder development.
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When there is a large income gap between between the different social groups, social stratification becomes entrenched and poorer groups suffer from social inequality and social exclusion. There is fewer opportunities for them to have decent jobs, credit services, relevant training, proper health care and housing.
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Social exclusion exacerbates the conditions of poverty, making it virtually impossible for the poor to help themselves out of poverty.
Natural and Man - Made Disasters •
Natural disasters are one type of environmental factor that hinders development in the Caribbean, namely hurricanes and volcanic activity.
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Four to five hurricanes impact the Greater and Lesser Antilles yearly as well as volcanic eruptions in Montserrat which almost destroyed the economy and society.
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Human welfare is also jeopardized as many face dislocation, poverty and destitution.
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Some Caribbean countries fail to enact legislations directed at mitigating against these disasters.
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The poor tend to suffer the most because they have scant resources for example, surplus cash and insurance to cover their losses.
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Disasters affect sustainability in that, big business interests tend to pollute the environment and poor farmers, especially on hillslopes who engage in practices that lead to soil erosion, deforestation etc.
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The modernization effects of large scale capital enterprises such as industrial complexes and mining operations tend to be favoured by government and development planners but in the long run affect the physical environment via pollutants. As a result of the monetary returns garnered from these big businesses, governments are slow to pass legislations to penalize such companies for any arm caused to the environment.
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An important aspect of development is the enactment of human values but in most cases Caribbean people value productivity (economic growth) over the protection and preservation of the environment.
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According to Mohammad (2007) part of the problem is the careless irrational attitudes of Caribbean government that they will be spared the wrath of a natural disaster and thus do not prepare adequately.
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The lackadaisical attempts to curb soil erosion and other human induced disasters are based on the values of Caribbean people who see production and economic output as being more value than the sustainability of the environment.
Impact of the Productive Sector •
Employment is generated
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Reduce dependency on imports
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Distribution sector develops
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Increase foreign exchange
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Increase exports
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Standard of living increases.
Sources Mohammad, Jeniffer (2007). Cape Caribbean Studies: An Interdisciplinary Approach. Macmillan Publishers. Beckford, Evol. (2006). Caribbean Studies Study Notes.
