Objective
Define terms associated with the topic
Evaluate economic modules
Identify factors which hinders or
promote development
Explain political ideologies in relation to
issues of development.
Political ideologies/popular movements
Distribution of wealth, resources, income
generation
Changing class boundaries
Definition of Caribbean experience and
identity
Natural and Man made disasters
Impact of productive sector
Politics has to do with the acquisition of
power, allocation or resources, and
administration of public affairs.
There are two broad areas that are part of
the political consideration
Political ideology
Economic system pursued by the
government
Determines how a government operates,
expressed in a document of Supreme
Law, called a constitution that legitimize
an authoritative, hierarchical structure.
Ideology: a system of ideas or manner of
thinking characterized by a class of
people e.g. Communism, Socialism and
Capitalism.
Communism: a theory of a society where all
property should be owned by the
community or state and labour organize for
the common good.
Capitalism: a social system based on the
principle of individual right.
Socialism: a society characterized by equal
access to resources for all individuals with a
method of compensation based on the
amount of labour extended.
Cuba- Communist
Cayman, Montserrat and Bermuda –
colonies of England
Puerto Rico-Associated state of the
United States
Trinidad and Guyana- Republic
Democracy
Jamaica: Parliamentary/Constitutinal
Monarchy(Westminister Whitehall
Model).
Improving the standards of living of its
people.
Protecting their safety and maintaining
law and order.
Develop policies to achieve outlined
objectives. (They determine the
development plan)
The effectiveness of the development
plan is dependent on the relationship
between those who govern and those
who are governed.
If there is harmony and transparency
then it is likely that the plan will work.
Governments around the world pursue
THREE 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 the
state and the production of goods and
services
The aims of policies are to benefit each
member of the state guaranteeing
them a minimum standard of living.
A full employment policy is persued in
education, health and low cost housing
It promotes no efficiency since competition
is not encouraged
Limited choice in the availability of goods
and services.
Due to central planning there is normally
shortage and overproduction, which is a
clear waste of resources.
Limited innovations and creativity since
private ownership is not encouraged
What to produce, how much and for whom
is determined by the state.
Jamaica, Grenada and Jamaica
experimented with modified forms of
Socialism. Many needy programmes
were implemented but economically
those programmes worsened, especially
with the effects globalization and rising
oil prices.
Private individuals own most of the
resources and are allowed to be
creative.
Government exist as a facilitator and
maintain law and order.
The model is individualistic and offers little
protection for the poor.
The price mechanism or the forces of
supply and demand determined the
production of goods and services
High levels of inequality and distribution of
income.
Without the government the large majority
are unable to access health, education,
basic utilities such as electricity and running
water
Development under this system is difficult . If
the people is generally poor, the GNP might
be high but for the majority very low. They
will be unable to buy the goods and
services produced. This will affect
productivity.
Government gets involve as a regulator
of 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 provided
in joint ventures, government and
private.
1. Identify THREE economic modules.
2. State TWO countries which practice
the Mixed economy module.
3.What is Capitalism?
4.Identify one Caribbean county which
have been influenced by Marxism.
5.What is the name of the leader of this
country?
