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 establish organise to a more technologically driven nightclub and where the parsimoniousness gains much more slap-up via manufacturing industries. Caribbean economies have been denominate 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 takings 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 remote targetments?. utter differently, Caribbean people did non possess the competence and innovation for feeler of their nations, therefore more advanced nations would invest and assist in the development of the Caribbean region. Prior to their in habituation, Caribbean countries were generally used for the production of peeled materials such as sugar, umber and cotton, which were exported to the mother country where get on processing and manufacturing was carried out. Lewis? cerebration emphasized the need for industrialisation to be introduced into the Caribbean in prepare for unassailable development. Therefore Caribbean economies should adopt industries that are in alinement with their natural resources. Contrary to New land economists? Plantation mould of the Caribbean Mr. Lewis proposed a model of his own dubbed the ? soprano Economy?. He stated that there was the tralatitious(agricultural arena) and the capitalist (profit fashioning sector), the two sectors of the Caribbean economy. The handed-down sector tend to focus on hiring as some(prenominal) as possible thus productiveness declined whereas the capitalist sector focused on profi t qualification and high productivity. Lewi! s recommended a shift 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 incorporate for an industrialised society and that labour was quick available to go this structural change. In theory as well as practice ?industrialisation by invitation? was meant to attract both topical anaesthetic and foreign investment through freehearted tax incentives which were generally reserved for the benefit of foreign investors. much(prenominal) incentives comprised of provision for basic bag 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 measurable in that foreign goods, if not restricted, could easily penetrate and tear control of the food market, leaving no opportunity for local goods. public training facilities for the local work force in the hammer 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 prosperous for that island, this was adverse to the development of the remain Caribbean region. Several countries inwardly 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 brought about a higher dependency level on technology, raw materials and cap! ital from abroad. Without these investments, the Caribbean would still be in a pre-industrialised state, with little branch in the economies. It has been argued that Caribbean economies have achieved a contend of growth; just without or in fact moderate development. Yes, the region?s infrastructure has improved dramatically but their industries and companies are mainly foreign and therefore a substantial amount of net profit made are sent abroad. instruction therefore has been trammel 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 Caribbean, 2002, Euclid A. Ro sePublished by: Lexington Books?An Overview of U.S. 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 wax essay, order it on our website: OrderCustomPaper.com

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