Factors that hinder development
GOAL
For students to evaluate how development in the region is influenced by political, economic, social, cultural, environmental and technological factors.
OBJECTIVES
1. Examine how development in the region is influenced by social, political, economic, technological and environmental factors.
POLITICAL IDEOLOGIES
This fosters fragmentation and makes countries vulnerable to external interference in their domestic affairs, for example, Grenada. It also limits the extent to which countries are able to forge a coordinated foreign policy. On the other hand, the region has been able to maintain stable and democratic governments which have provided opportunities for economic stability and favourable investment climate, for example, Barbados and the Eastern Caribbean states.
The political ideology that a government embraces can have a profound impact on development. The capitalist system, or free enterprise, is the preferred choice of most Caribbean states. This ideology is intricately connected to the world’s capitalist system and, therefore, Caribbean states which embrace this philosophy receive a stamp of approval from the first-world countries of the world’s capitalist system.
Countries of the Caribbean which practise/embrace any other forms of ideology (planned economic system) receive little or no support from the major capitalist countries of the world and so they find it extremely difficult to embark on a development path, for example, Cuba (economic blockade by USA); Grenada, which embarked on a socialist path, was invaded by the United States in 1983 and the government overthrown. Jamaica, under Michael Manley, was destabilised by the United States and suffered great economic hardship because of its decision to pursue an ideology known as democratic socialism in the 1970s.
DISTRIBUTION OF WEALTH
If wealth is unevenly distributed, then this can hinder development. When concentrated in the hands of a few, it can lead to a low level of investment, high unemployment, as well as a high level of unskilled labour force, as there is low expenditure on education. It can also result in corruption. As a consequence, there is low productivity among high-income earners, capital flight and brain drain. This leaves a government with a high borrowing rate from international sources, which results in higher taxation rates and rising inflation.
To solve this, incentives for production have to be offered to attract investors, and government has to increase its involvement in areas such as infrastructure development, education, minimum wage, high tax on luxury items, harsh penalties for offenders, along with better auditing and accountability. Most countries of the Caribbean, especially Jamaica, display an inequitable distribution of wealth (a skewed distribution).
In Jamaica, it is skewed in favour of the ruling class, which consists of large land-owning families, local capitalists, international capitalists and a small number of strategically placed professional managers. These classes of people in Jamaica control the commanding heights of the economy. (In the 1970s, less than 1% of the population controlled 70% of the wealth in the economy. The majority of the wealth is concentrated in the hands of 21 families.)
REPERCUSSIONS OF THIS FOR DEVELOPMENT
Facilitates some form of development (economic but not holistic). Facilitates enclaves. Produces antagonism between workers and managers/owners.
Fosters alienation, which can lead to revolution if not addressed. People become alienated from the productive forces of the country; because they enjoy very little of the wealth of the country, they are forced to pay burdensome taxes like GCT, they have corrupt political leaders, the most vulnerable in society becomes hopeless, the majority of the people have no stake in the economic wealth of the country, and without a leader to speak for them, there can be no change.
CHANGING CLASS BOUNDARIES
If within society there are no avenues or scope for social mobility, then this can lead to antagonism as people will see themselves as inferior, or as less important than those who occupy higher status. A rigid class structure breeds insecurity/mistrust, and this can have a negative impact on development. Some avenue for upward social mobility must exist to reward people who are industrious, visionary and productive.
GENDER INEQUALITY
Gender inequality is a sore point in many counties across the world, despite the national and international measures that have been taken towards achieving it. Of over 135 nations, only four countries in the world have achieve gender quality: Cuba, Sweden, Norway and Costa Rica. For development to take place in the Caribbean society, a fundamental step in both human and economic programme should be made a regional priority. Measures of gender equality include access to basic education, health and life expectancy, equality of economic
opportunity, and political empowerment. Although there has been evident progress, many alarming issues regarding gender discrimination still prevail today (Kamrany, Robinson, 2012).
NATURAL AND MAN-MADE DISASTERS
When disasters, whether man-made or natural, wreak havoc on Caribbean communities, the lives of the residents are affected in a myriad of ways. Disasters can cause both social and economic displacement when the environment is destroyed – landslides occur, there is soil erosion, people are displaced from homes, utility poles are destroyed, and the productive sector is put on pause. This phenomenon affects the development of a country and, as such, governments have to make necessary changes to their development plans to provide immediate aid to those affected. Natural and man-made disasters not only have negative effects, because when they do occur, employment is generated, and governments and their agencies engage in reflective planning for the social and physical plant of their islands. Infrastructural development also takes place, which includes the restoration, removal and building of new roads, bridges, buildings, etc.