Preview

Caribbean Governance the Impact of the Global Economic Crisis

Powerful Essays
Open Document
Open Document
6097 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Caribbean Governance the Impact of the Global Economic Crisis
ABSTRACT:

The importance of an efficient and effective Caribbean in the delivery of economic and social development is a long-standing theme of development policy. This however has not always been the case and the result is a Caribbean repeating past mistakes and compromising in some cases the theme of the development strategy. Global recession has consistently tested the resolve of the Caribbean and to this end there is a need to address the factors that have consistently led to the economic decline of the island states. This paper examines the recent experience of the Commonwealth Caribbean in dealing with the current Global economic crisis with a particular focus on Jamaica, Barbados and Trinidad and Tobago. It begins by examining the signs and the effect on each island. The paper then identifies five key issues that have emerged as factors contributing to and needing the attention of the heads in order to ameliorate against an occurrence in the future: regionalism, integration, transparency and governance are examined as being overarching themes the fundamental problems are dealt with individually within the essay. In each case the background to its contribution to the problem is given along with the solution to the problem. A history examining the recession as a new phenomenon and by extention unprecedented is assessed. The paper concludes by discussing one key dimension of the global economic crisis experience: globalisation and the importance of politics in promoting and sustaining a successful relationship with the rest of the world. The final section sums up the main points.

The opinions expressed in this paper are those of the author (Jepter Lorde) and do not necessarily reflect the views of The University of the West Indies Cave Hill Campus or its Board of Directors and/or Board of Governors.
It is a fact that the world economy is facing the worst financial crisis since the great depression. It can be argued the crisis is taking place at a time



Cited: Eichengreen, Barry,. Financial Crises and What to Do about Them: New York, Oxford University Press, 2002. Davies, Omar. 1986. The Debt problem in Jamaica: situation and solutions. Mona, Jamaica: University of the West Indies, Dept. of Economics. Thomas, Y Clive., The Poor and the Powerless: Economic Policy and Change in the Caribbean London: Latin America Bureau, 1988) Williams, Eric, Capitalism & slavery: Chapel Hill, University of North Carolina Press, 1944.

You May Also Find These Documents Helpful

  • Good Essays

    Life and Debt, a documentary by Stephanie Black, with a commentary written by Jamaica Kincaid, looks at the effect of the International Monetary Fund on the economy of Jamaica, the third world country that was once colonized by the Great Britain. The film has offered the audiences different voices on this issue including the IMF officers, the Jamaican farmers and former Jamaican president as an overview to the issue The former president of Jamaica Michael Manley has been out of power for many years, yet his bitterness over his ouster and his country's subsequent decline remains palpable. His take on the primary cause of Jamaica's descent into hell is most interesting, considering the current conjuncture. The crisis of the early 1970s forced his government to take out loans to cover the rising expenses of fuel-based imports, from fertilizer to gasoline.…

    • 768 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The author gives a historical antecedent of the power struggle revolving around the control of resources in the Caribbean region. He justifies this from paragraph one of chapter seven by stating that gold, sugar and slaves, the ‘Caribbean trinity’ represented an enormous accession of power and wealth. This gives the reader an idea about what he or she should…

    • 1500 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Payne, Anthony and Paul Sutton, eds. Modern Caribbean Politics. Baltimore: The Johns Hopkins University Press, 1993.…

    • 4291 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    The documentary ‘Life and Debt’, directed by Stephanie Black, goes behind the facades displayed for tourists in order to highlight the financial struggles Jamaica is forced to face one after another—without the economic strength to resolve any crisis. Due to the methods Jamaica uses to confront its problems, they only ultimately repay enough to barely sustain a short-term lifestyle. Although the government-led interventions are restricting solutions that could bring opportunities for long-term development, Jamaica fundamentally has no other choice but to abide to constantly playing catch-up towards an unreachable equilibrium. I would like to argue that the complexities of economic globalization has allowed foreigners to trap Jamaica through the ‘mechanism of debt’, hence can only better the Jamaican economy via modifying the agreements of IMF lending.…

    • 1021 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Life And Debt Summary

    • 1220 Words
    • 5 Pages

    Jamaica also had lots of debt to pay, however they didn’t have the capital to pay the debts so they turned to the International Monetary Fund (IMF) for support. International institutions, such as the IMF, World Bank and WTO, have all shaped globalization through their policies. The International Monetary Fund (IMF) was created in an effort to provide financial support on a short term basis to destabilized countries after the economic disaster of World War II. The IMF had a “one size fits all” remedy whenever a country‘s economy needed their help. They enacted Structural Adjustment Programs which consisted of economic policies put in place which had to be followed in order for a country to qualify for loans from the IMF and World Bank to pay off their debt.…

    • 1220 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The sudden financial crisis and the unexpected economic collapse in 2008 came as a shock to many because the speed and severity of the crisis were unpredicted (Bondt, 2010). Its consequences had strong influences on the financial system of many industrialized countries as well as a large number of developing and emerging economies. Huge cost are carried by every parts of society. Much wealth has been destroyed. Millions of jobs have been lost. The crisis has tarnished the belief in free enterprise, the financial system, and in financial theory (Bondt, 2010).…

    • 1043 Words
    • 5 Pages
    Good Essays
  • Better Essays

    When Jamaica was granted its independence from Great Britain, the tiny nation lacked sufficient economic strength to survive on its own. Throughout the time Great Britain ruled over the island, she had taken Jamaica’s ample natural resources in the name of the Crown. Economically, when a nation does not have enough natural resources to survive, the situation turns very bitter in a short amount of time. Jamaica soon realized they were not able to finance what was needed to meet the needs of its citizens. Jamaica sought financial assistance through the private banking system, but was denied repeatedly. The country had no choice but to resort to the International Monetary Fund (IMF) to borrow money from. The IMF’s role is that of a “helping hand.” As per Jamaica and the IMF’s agreement, the IMF established a five-year plan with Jamaica. This included the placement of stringent restrictions on what the tiny nation could spend the money on. As the Jamaicans slowly realized, this deal would serve them no purpose, except indebting the nation even further. The island was forced to cut certain government programs and devalue their currency to meet IMF demands. Jamaica was…

    • 2053 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Life and Debt analysis

    • 476 Words
    • 2 Pages

    Life and Debt is a very insightful and revealing documentary about the economy woes of Jamaica and the possible causes of its economic down turn. Watching this documentary, I was in shock because I have always known Jamaica had economic issues, but I never knew how bad they were. Jamaica suffers from poverty, a struggling economy, inflation and interference from outside investors like the United States of America and Latin America despite being richly blessed with natural resources and agriculture. Jamaica got their independence in 1962 from the United Kingdom, it has always struggled with its economy and even tried to use its agricultural resources to boost the economy, but to no avail. As the economy became more and more severely immersed in financial problems, the then Prime Minister Michael Manley struck a deal in 1977 with a group of economic institutions like World Bank and IMF to loan money to Jamaica in exchange for removal of trade restrictions and subsidized exports. Twenty five years down the line, it is sad to see that Jamaica is in debt to the tune of seven billion dollars to the IMF. The deal ruined Jamaica’s economy, and Stanley Fischer (second in command at IMF) is interviewed throughout the documentary and he defends the deal, with reasons why it was a good idea at the time and how beneficial the deal was to the Jamaican economy, even though we can see different in the documentary. The deal with the IMF disrupted the Islands agricultural and industrial economy, thereby causing the economy to nose-dive. Farming, agriculture, cultivation and dairy production has become almost non-existent. Markets have being seized and policies put in places which are extremely unfavorably to the locals. There is mass interference from growers and merchants in the US and Latin America over the growth of fruits and vegetables, which are now imported by the aforementioned. This makes imports more expensive than the local produce (if any), the country has become a…

    • 476 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Life & Debt

    • 534 Words
    • 3 Pages

    The documentary Life and Debt portrays a true example of the impact economic globalization can have on a developing country. When most Americans think about Jamaica, we think about the beautiful beaches, warm weather, and friendly people that make it a fabulous vacation spot. This movie shows the place in a different light, by showing a pressuring problem of debt. The everyday survival of many Jamaicans is based on the economic decisions of the United States and other powerful foreign countries.…

    • 534 Words
    • 3 Pages
    Good Essays
  • Good Essays

    One of the key strengths of this documentary is just how convincing their examples are. All of them fully show the struggles that the farmers and workers go through because of the actions of the IMF. It is said that the IMF thought that by raising the trade barriers it would help the economy but the reality is the exact opposite. With the trade barriers that protected what little of an economy Jamaica had before the IMF came in either reduced or absent, foreign food and other imports that could be produced in Jamaica are now cheaper than the Jamaican goods forcing Jamaicans out of business. They show videos of cabbage, bananas, and milk just being thrown away because too much is being produced compared to how…

    • 859 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Life and Debt

    • 687 Words
    • 3 Pages

    While the Jamaican economy relies heavenly on services the country depends on revenues mostly from tourism and remittances. As they are dependent on other countries for services, they are affected by anything that may be going on in those same countries such as war, poverty, or a weak economy. Because Jamaica cannot stand on their own, in my opinion they have not benefitted from the International Economic System. As countries form economic relationships for the benefit of economic growth, Jamaica cannot financially afford to put a stake into other countries, let alone their own.…

    • 687 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Globalisation on Jamaica

    • 1607 Words
    • 7 Pages

    * For Jamaica, the main reason for globalization was darker. The energy Crisis of the early 1970s forced the Jamaican Government to take out loans from the International Monetary Fund and the World Bank to cover the rising expenses of fuel based imports. However they weren’t interested in cooperating with Jamaica in developing native infrastructure and resources, so they enforced a short-term repayment of the debt, budget cuts in areas supporting long term development, and removing all trade barriers that favored local industry and farming. Thus, this started the forceful movement of “globalization” in Jamaica.…

    • 1607 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Hartnell Neil “Bahamas 'polarised by a dual economy '.” The Tribune. 8 Oct. 2009. 15 Feb. 2012…

    • 1282 Words
    • 6 Pages
    Good Essays
  • Good Essays

    CARICOM or the Caribbean community has been the subject of heavy debate across the region as it relates to its success, relevance and the fulfillment of its intended mandate. The Caricom organization was established in the wake of the dissolution of the West Indies Federation and aimed primarily at bridging the gap between English speaking Caribbean countries and the wider world as well as promoting integration between its member states in terms of trade and national growth. The Caricom organization now consists of fifteen (15) full members, five (5) associate members with seven (7) observer members, and under the revised treaty of Chaguramas has set the deadline of 2015 as its target date for full implementation. While the community has an established organizational structure and several community sub organizations such as the Caribbean Disaster Emergency Relief Fund (CDERA), among several others, many in academic circles continue to question whether or not the organization is prepared for the phenomenon of globalization.…

    • 1386 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    * It gives government policy clearer direction by checking the centrifugal pressures, embodied in departmentalism and the ‘nudge and fudge’ of collective decision making (Heywood: Pg 344: 2002).…

    • 2209 Words
    • 9 Pages
    Powerful Essays