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?