What is meant by "industrialisation by invitation" and did it lead to economic development in the region?

industrialization is the process of brotherly and economic change whereby a social group is transferred from a manual labor found organise to a more technologically driven fiat and where the parsimoniousness gains much more upper-case letter via manufacturing industries. Caribbean economies have been label as weak and dependent, and controlled by stronger strange states and institutions (The Plantation Economy). Sir Arthur Lewis, St. Lucia?s starting line Nobel Prize winner, has released several publications on the hold out of underdeveloped nations in the Caribbean and solutions to correct this underdevelopment. Of these publications is the model of ? industrialization by invitation?. This nonion holds that ? scarceness of capital, skills and technology make it imperative to get in hostile garbments?. utter differently, Caribbean people did non possess the competency and innovation for feeler of their nations, therefore more advanced nations would invest and ass ist in the development of the Caribbean region. Prior to their in habituation, Caribbean countries were chiefly used for the production of peeled materials such as sugar, java and cotton, which were exported to the mother country where get on processing and manufacturing was carried out. Lewis? thinking emphasized the need for industrialisation to be introduced into the Caribbean in stick in for unassailable development. Therefore Caribbean economies should adopt industries that are in conjugation with their natural resources. Contrary to New land economists? Plantation lay of the Caribbean Mr. Lewis proposed a model of his own dubbed the ? soprano Economy?. He stated that there was the tralatitious(agricultural sector) and the capitalist (profit fashioning sector), the two sectors of the Caribbean economy. The tralatitious sector tend to focus on hiring as many as possible thus productiveness declined whereas the capitalist sector focused on profit qualification a nd high productivity. Lewis recommended a sh! ift of the excess labour from the traditional to capitalist sector, in turn increasing the capital of the economy. This innovation bears that the Caribbean is well structure for an industrialised society and that labour was quick available to carry this structural change. In theory as well as practice ?industrialisation by invitation? was meant to attract both topical anesthetic anaesthetic and foreign investment through freehearted tax incentives which were by and large reserved for the benefit of foreign investors. much(prenominal) incentives comprised of provision for basic foot services such as harbours, airports and roads. Tariffs and quotas on imports to protect local goods against foreign competition was overly another provision. This provision was principal(prenominal) in that foreign goods, if not restricted, could easily penetrate and propose control of the mart, leaving no opportunity for local goods. state-supported training facilities for the local work fo rce in the multifariousness of technical institutions and universities added to the spur. Though this entire concept was based on a development strategy for Puerto anti-racketeering law called ?Operation assist? and was happy for that island, this was adverse to the development of the remain Caribbean region. Several countries at bottom the Caribbean have attempted Sir Arthur Lewis? concept of ?Industrialisation by Invitation?, with the outcomes organism mixed. This meaning that it expanded direct foreign investment, injecting capital into local institutions.

However, this increase in foreign investment broug ht about a higher dependency level on technology, raw! materials and capital from abroad. Without these investments, the Caribbean would still be in a pre-industrialised state, with little harvest-home in the economies. It has been argued that Caribbean economies have achieved a contend of growth; in time without or in fact moderate development. Yes, the region?s infrastructure has improved dramatically but their industries and companies are chiefly foreign and therefore a substantial amount of gain made are sent abroad. instruction therefore has been circumscribed with the major organizations within the economy being foreign and not indigenous. Sir Arthur Lewis? concept of ?Industrialisation by Invitation? was not completely successful since the ?development? of the countries? economies did not reach the limits Lewis predicted. soon the world market has a major negative picture and influence on the Caribbean economies due to the region?s dependence on foreign investments. Bibliography?Dependency & Socialism in the mod C aribbean, 2002, Euclid A. RosePublished by: Lexington Books?An Overview of U.S. insurance policy Toward the Caribbean in the 1970sAvailable at: http://www.trinicenter.com/kwame/2005/20112.htmDate Accessed: [November 9th 2008]?SIR ARTHUR LEWISNOBEL laureate IN ECONOMICS1979Available at: http://www.un.int/stlucia/Sir%20Arthur%20Lewis.htmDate Accessed: [November 9th 2008]?Industrialisation by invitationAvailable at: http://www.landofsixpeoples.com/news401/ns40120.htmDate Accessed: November 9th 2008] If you want to get a full(a) essay, order it on our website: OrderCustomPaper.com

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