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?