Objective Define terms associated with the topic Evaluate economic modules Identify factors which hinders orpromote development Explain political ideologies in relation toissues of development.
Political ideologies/popular movements Distribution of wealth, resources, incomegeneration Changing class boundaries Definition of Caribbean experience andidentity Natural and Man made disasters Impact of productive sector
Politics has to do with the acquisition ofpower, allocation or resources, andadministration of public affairs. There are two broad areas that are part ofthe political consideration Political ideology Economic system pursued by thegovernment
Determines how a government operates,expressed in a document of SupremeLaw, called a constitution that legitimizean authoritative, hierarchical structure. Ideology: a system of ideas or manner ofthinking characterized by a class ofpeople e.g. Communism, Socialism andCapitalism.
Communism: a theory of a society where allproperty should be owned by thecommunity or state and labour organize forthe common good. Capitalism: a social system based on theprinciple of individual right. Socialism: a society characterized by equalaccess to resources for all individuals with amethod of compensation based on theamount of labour extended.
Cuba- Communist Cayman, Montserrat and Bermuda –colonies of England Puerto Rico-Associated state of theUnited States Trinidad and Guyana- RepublicDemocracy Jamaica: Parliamentary/ConstitutinalMonarchy(Westminister WhitehallModel).
Improving the standards of living of itspeople. Protecting their safety and maintaininglaw and order. Develop policies to achieve outlinedobjectives. (They determine thedevelopment plan)
The effectiveness of the developmentplan is dependent on the relationshipbetween those who govern and thosewho are governed. If there is harmony and transparencythen it is likely that the plan will work.
Governments around the world pursueTHREE main economic models; Central or Planned Economic System The Free Market system or market system Mixed Economic system
Example Cuba, China and USSR Features The main industries are owed by thestate and the production of goods andservices The aims of policies are to benefit eachmember of the state guaranteeingthem a minimum standard of living. A full employment policy is persued ineducation, health and low cost housing
It promotes no efficiency since competitionis not encouraged Limited choice in the availability of goodsand services. Due to central planning there is normallyshortage and overproduction, which is aclear waste of resources. Limited innovations and creativity sinceprivate ownership is not encouraged What to produce, how much and for whomis determined by the state.
Jamaica, Grenada and Jamaicaexperimented with modified forms ofSocialism. Many needy programmeswere implemented but economicallythose programmes worsened, especiallywith the effects globalization and risingoil prices.
Private individuals own most of theresources and are allowed to becreative. Government exist as a facilitator andmaintain law and order. The model is individualistic and offers littleprotection for the poor. The price mechanism or the forces ofsupply and demand determined theproduction of goods and services
High levels of inequality and distribution ofincome. Without the government the large majorityare unable to access health, education,basic utilities such as electricity and runningwater Development under this system is difficult . Ifthe people is generally poor, the GNP mightbe high but for the majority very low. Theywill be unable to buy the goods andservices produced. This will affectproductivity.
Government gets involve as a regulatorof the economy. Gov provides social services such as fire,police, defense, road health etc. High levels of employment Low inflation Stable exchange rates Positive balance of payments
Control of pollution Consumer protection Critical infrastructure e.g. roads, bridges,water telecommunications are providedin joint ventures, government andprivate.
1. Identify THREE economic modules. 2. State TWO countries which practicethe Mixed economy module. 3.What is Capitalism? 4.Identify one Caribbean county whichhave been influenced by Marxism. 5.What is the name of the leader of thiscountry?