Consequences of Global Disparities

2. Consequences of Global Disparities

3. Poverty Indices • The prevalence or poverty as measured by the fraction in the total population living below the poverty line ( the head-count). • The intensity of poverty reflected in the extent to which the income of the poor lies below the poverty line, as measured by the differences the two ( the poverty gap). • The degree of inequality among the poor, in such a way that income transfers from the worse off among the poor to the poor should raise measured poverty and vice versa ( the severity of poverty index).

4. The relationship between poverty and population growth. • Lack of access to education and health care is at the root of the problem. • Without education, those in poverty have few job outside manual labour and subsistence farming. • Low wages mean that families cannot afford enough nutritious food. • Poor nutrition relates in higher mortality rates.

5. FACTORS INFLUENCING DEVELOPMENT [HINDERING OR PROMOTING] Political factors Social factors Economic factors Cultural factors Environmental factors Tourism

6. POLITICAL FACTORS Political ideologies and popular movements have from time to time challenged the status quo of the Caribbean Political ideologies are systems of beliefs about governance and power that reflect the needs and aspirations of particular social groups Capitalism, is the dominant political ideology in the Caribbean it emphasizes market- led development also known as free enterprise and during the independence era emphasis was only on increasing economic growth and not on the reduction of poverty So some Caribbean thinkers began to consider ways to reduce poverty and raise the quality of life of people They were influenced by the dependency theorists of Latin America This approach to development emphasizes underdevelopment showing how the colonial conditions encouraged dependency

7. POLITICAL FACTORS So some leaders of the Caribbean adopted ideologies to govern which they taught would benefit their region, one such ideology being Marxism The Marxist type revolutions of Cuba[1959] and Grenada [1979] aimed at increasing human development by the nationalization of all productive enterprises and people enjoyed but productivity waned as the centrally planned and subsidized state enterprises became inefficient and corrupt This corruption hinders the process of development for leaders place self before country

8. Why do we have economic problems? Caribbean countries are in varied stages of development. Whilst some may be at an advanced stage, others may be backward. This is due to:- Inadequate infrastructure Insufficient inflow of currency making development difficult to sustain

9. Also, since the Caribbean economy depends upon the economy of developed countries, there is a domino effect created since whatever affects the developed country also affects the Caribbean economy.

10. What PROBLEMS exist in the Caribbean? 1) INDUSTRIALIZATION 2) UNEMPLOYMENT 3) MIGRATION 4) URBANISATION 5) POPULATION DENSITY

11. What is Industrialization?? This refers to business activities such as production or manufacturing eg. The clothing industry or Motor Vehicle industry in which machine technology plays a major role in converting raw materials into semi finished or finished products.

12. What are the EFFECTS of Industrialization? Positive Effects:- • Jobs are created for both skilled and unskilled workers • Government is pressured to ensure foreign currency is available to purchase materials/equipment • Goods are produced for the local and overseas market • Government earns revenue through taxation.

13. Negative Effects:- • Since jobs are created in the manufacturing sector, fewer persons are available for labour in the fields (agriculture). • The environment suffers from pollution and contamination. • Even though production becomes capital intensive resulting in greater efficiency, it does not mean that the standard of living increases or that unemployment levels decline. • Heavy industrial activity leads to large energy bills so government tends to forego goods/services that may be necessary in order to pay these bills.

14. SOLUTIONS to negative effects:- • Government becomes heavily reliant on importing raw materials but efforts should be concentrated on research towards utilizing the resources the country has. • Government and Companies need to develop policies to carefully monitor the disposal of industrial waste. Also, the residue of one industry may be used in another so wastage can also be utilized. Eg, the clay from bauxite can be used to make bricks for construction.

15. SOLUTIONS cont’d 3) Government can seek to re-train or train employees so they are not redundant and address issues of population growth in relation to the availability of jobs. 4) Government needs to determine whether the opportunity cost is justified in foregoing goods/services that the country needs in relation to its expenditure on energy bills.

16. ECONOMIC FACTORS • The productive sector refers to the economy of a country – and the production of goods and services contribute to or hinder development. • The productive sector can be classified into primary or extractive industries , secondary or manufacturing industries ,and tertiary or industries of services • Some of the factors which impact on the productive sector of the Caribbean are • Competitiveness • Demand • Productivity • Infrastructure • Investment climate • Debt • External shocks • Technology

17. TOURISM Tourism is the biggest industry in the world today and all Caribbean countries are looking to attract more tourist. If marketed and with proper investments it can contribute to the development of a country At the same time it may hinder the process of development due to the social ills which accompany tourism such as the spread of diseases, std’s, western values may threaten local ways of life, pollution, too much urbanization in a country, marginalization of local populations and the list continues.

18. SOCIAL FACTORS The distribution of wealth and resources is a factor that can either promote or hinder development The primary importance of these indicators is to give a good idea of the levels of poverty and inequality in a country and show how it hiders development Poverty - Haiti recorded the highest poverty levels 76% for the region, Guyana 35% of the population live in poverty and most of the Eastern Caribbean is poverty stricken. This stems from a lack of equity among social groups thus to tackle the bases of poverty inequity in a society must be tackled Inequality- in Haiti, St.Vincent, Antigua and Barbuda there are high levels of inequalities. When there is a large income gap between the different social groups , social stratification becomes entrenched and poorer groups suffer. In countries where income distribution is less unequal e.g. Barbados some members of poorer groups are able to become socially mobile .social and economic equalization [the degree to which all groups are experiencing similar levels of income ,access to goods and services and other opportunities] determines if a society is developed or not

19. CULTURAL FACTORS Our ideas and assessments of Caribbean society and culture and what Caribbean development means are shaped by our socialization- at home, in school, and by the media. There are different views and interpretations of how Caribbean identity and experiences should be defined and these have different implications for development Western model: one group takes the view that Caribbean society and development can de discussed in relation to the concepts about society and development in the Western world. Caribbean society is seen to be merely at an earlier stage in the modernization process. Exploitation: Caribbean society from the beginning and throughout colonialism was based on exploitation and large- scale import of labour to form rigidly stratified social system. For example the institution we have inherited were all created under conditions of oppression and inequality. Take the education system we have been engaged in decades of school reform but this institution is plagued by inequities. The children of the rich and powerful in the society excel in academic achievement and with this exploitation of the lower class is inevitable so hindering development.

20. ENVIRONMENTAL FACTORS • Natural disasters hinders development in the Caribbean, namely hurricanes and volcanic activity. These disasters wreaks havoc , economic growth is reduced and human welfare is jeopardized as many face dislocation, poverty and destitution. Resources are lost and all in all development is affected since with a disaster a country is required to use its revenue to rebuild its economy and infrastructure • Man made disasters also have a negative impact on development, in this case sustainability. Big business interests tend to pollute the environment and poor farmers, especially on hill slopes, engage in practices leading to soil erosion. These disasters hinder development • The occasional nature of hurricanes seems to engage governments in a game of probability and an assumption that this year they will be spared. This is a careless and irrational attitude to adopt.