Industrialization by Invitation

industrialisation is the process of social and sparing miscellany whereby a social group is transferred from a manual labor ground structure to a more technologically driven indian lodge and where the frugal system gains much more capital via manufacturing industries. Caribbean economies brace been labeled as indistinct and subordinate, and overtopled by stronger strange states and institutions (The Plantation Economy). Sir Arthur Lewis, St. Lucia? s first Nobel Prize winner, has released several(prenominal) publications on the issue of underdeveloped nations in the Caribbean and solutions to correct this underdevelopment.Of these publications is the c at one timept of ? industrialisation by invitation?. Lewis felt that this was a step infallible to be interpreted for the British West Indies to develop. Sir Arthur Lewis indemnity aided in the development of the B. W. I unless the constitution itself too hindered development as well as left out major(ip) aspects of de velopment. later Lewis studied the system know as Operation Bootstrap ( indemnity of purposely inviting abroad charter investors) in Puerto Rico, he set out to observe and implement similar in the British West Indies.The economies of the British Caribbean were primarily agricultural and there was a need to stimulate industrial exploitation and trade in manufacture severes, to diversify the economic base, since these economies were mainly monocrop economies. This landmark non only refers to the dependency on sugar and bananas, it also characterizes the dependence on touristry or the oil assiduity. Lewis therefore proposed the strategy to take foreign investing as a way to stimulate ingathering, non only in industry further also agriculture, and therefore to decrease the dependency on the exportation sector.He reasoned that the British West Indies had a great abundance of semiskilled(prenominal) labour in agriculture and amongst the unemployed. These countries did n ot have much capital. indeed multinational corporations (MNCs) with millions of dollars at their disposal were to be invited to the British West Indies where they could exculpate huge profits by employing meretricious surplus labour from agriculture. They would also benefit from tax holidays for the first vanadium or ten eld of their operations, and different concessions such as subsidies.In other words incentives would be offered to assist these corporations to invest . Caribbean governments popularly adopted this policy in the 1960s. Several foreign establish companies that are established directly in the Caribbean are the depart of Sir Lewis policy. This is more or less apparent in the tourer industry many foreigners have invested in hotels which employ the majority of populate. Several countries within the Caribbean have seek Sir Arthur Lewis? concept of ? Industrialisation by Invitation? with the outcomes being 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, keen materials and capital from abroad. Without these investments, the Caribbean would still be in a pre-industrialised state, with little growth in the economies. It has been argued that Caribbean economies have achieved a lot of growth however without or in fact limited development.Yes, the region? s al-Qaida has alter dramatically but their industries and companies are mainly foreign and therefore a substantial amount of profits do are sent abroad. reading therefore has been limited with the major organizations within the economy being foreign and not indigenous. Sir Arthur Lewis? concept of ? Industrialisation by Invitation? was not completely undefeated since the ? development? of the countries? economies did not reach the limits Lewis predicted.Currently the world market has a major negative effect and influence on the Caribbean economies due to the region? s dependence on foreign investments. Example of an essay on industrialisation invitation theory Arthur Lewis Industrializagtion by invitation To what extent discharge it be argued that Sir Arthur Lewis policy of Industrialisation by Invitation aided in the development of the B. W. I By Jennine Small. agree to Nassur Mustapha development is defined as, the progressive process of human, cultural, political, economic and social change, which shapes peoples lives. The southern countries particularly the Caribbean have been categorize as evolution countries, which are still somewhat dependent on the metropolis which once colonized them. Sir Arthur Lewis in the immediate post- World War II stoppage advocated industrialization of the British West Indies, he adopted a policy called Industrialisation by Invitation. He felt that this was a step needed to be taken for the British West Indies to develop. Sir Arthur Lewis policy aided in the develop ment of the B. W. I but the policy itself also hindered development as well as left out major aspects of development.The Industrial innovation was one of those historical events which drastically changed societies all over the world. Despite the innovation having its roots in Europe , particularly Britain it then spread to places alike(p) the U. S. A and later the Caribbean. Industrialization became the mechanism used for a society to make the transition from a traditional, labour intensive economy found on agriculture (agrarian) to a more capital- intensive economy based on manufacturing by machines , specialized labour and Industrial factories.Sir Arthur Lewis recognized the wideness of Industrialisation but realized that the British West Indies could not do it on their own, they would need financial aid, in the form of investments which could stimulate Industrialisation. After Lewis studied the system known as Operation Bootstrap (policy of deliberately inviting foreign dire ct investors) in Puerto Rico, he set out to adopt and implement similar in the British West Indies.The economies of the British Caribbean were mainly agricultural and there was a need to stimulate industrial growth and trade in manufactured goods, to diversify the economic base, since these economies were mainly monocrop economies. This term not only refers to the dependence on sugar and bananas, it also characterizes the dependence on tourism or the oil industry. Lewis therefore proposed the strategy to invite foreign investment as a way to stimulate growth, not only in industry but also agriculture, and therefore to reduce the dependency on the export sector.He reasoned that the British West Indies had a great abundance of unskilled labour in agriculture and amongst the unemployed. These countries did not have much capital. Thus multinational corporations (MNCs) with millions of dollars at their disposal were to be invited to the British West Indies where they could earn huge prof its by employing cheap surplus labour from agriculture. They would also benefit from tax holidays for the first five or ten years of their operations, and other concessions such as subsidies.In other words incentives would be offered to encourage these corporations to invest . Caribbean governments popularly adopted this policy in the 1960s. Several foreign based companies that are established today in the Caribbean are the result of Sir Lewis policy. This is most apparent in the tourist industry many foreigners have invested in hotels which employ the majority of people. In Antigua for example, 50% of the population is employed in the tourism industry.In addition to this, infrastructure such as roads and transportation has been developed by governments to support these businesses. Foreign investors have introduced the latest technologies and influenced the improvement of public services. On the contrary, the policy is very much economically based , its aim is for countries to achi eve economic growth. However development also includes other aspects, there is no reading material on how foreign investers may positively impact the quality of tone , welfare or education.Therefore this policy burnnot be seen as aiding development in the British West Indies as a whole , as the policy was based primarily on the stimulation of economic growth. In addition, most of the bills earned by these investors have been repatriated to their home countries then money is not invested in the economy, this is a grave issue with serious implications for the tourism industry. The policy eventually failed in the British West Indies, mainly because the Caribbean governments invited the MNCs but did not control them.When the initial period of the tax-free holidays were up they unlikable up shop and moved on. They were mainly capital-intensive industries, virtually no provisions were made for training citizens to organize and run similar plants, such as the ships company of motor vehicles and small appliances. Hence no sustainable development. Neo-marxists who came up with the dependency theory, also initially developed their theory in Latin America. Andre Gunder discourteous and Samir Amin were the two theorists associated with this school of thought .Both argued that the third world countries are classified as the Peripheries and the Western/ Industrialised capitalist countries are the core. The former being largely dependent on the latter. The development of the core countries caused the underdevelopment of the periphery since economic surplus was transferred from the latter to the former for expansion purposes. These sociologists recommended that the peripheries need to break the crosstie between them and the core in order to be self- sufficient and independent.Therefore the MNCs can be seen as detrimental according to this perspective dependence is an unwanted state and situation . It only causes, injustice, unfairness and exploitation. Following fr om the dependency theory, we can assert that foreign companies therefore would not be aiding development but hindering it for their metropolis benefit. They would encourage the mindset of preference for foreign goods thus maintaining dependence.It can be seen that the Industrialisation by Invitiation policy is indeed a controversial one when considering whether it has aided development in the Caribbean. There is no doubt that MNCs are an important means to economic development. However in order for a country to develop, the country must have control of its own businesses and resources, move away from traditional economic models that make them dependent on foreigners and also perpetuate the legacy of colonialism in how the Caribbean economy is structured.Grade pen Knowledge &038 Understanding 7/10 Interpretation &038 Analysis 7 /10 Synthesis &038 Evaluation 7/10 The student demonstrates a very good understanding of the subject matter under examination. interpreted and evaluated t he question well. Student should have named some Companies or a company that emerged as a result of IbyI in their territory and explain the advantages and disadvantges of the policy using the live example as the base. Altogether however this was a good