The Legacy of Colonialism and the Economic Issues Facing Caribbean Countries Today - Essay Example

?Running head:  How does the legacy of colonialism contribute to some of the economic issues facing Caribbean countries today? Insert         Insert Grade Course Insert Tutor’s Name 30 January 2012  How does the legacy of colonialism contribute to some of the economic issues facing Caribbean countries today? Introduction According to Hillman (2009, p.7), the Caribbean comprises of sparse resources, and as a result, its economic status is poor. Most of the Caribbean countries experienced long periods of colonialism, which were associated with slavery and authoritarian leaderships. Colonialism can be defined as “the domination of people another country” (Osterhammel & Frisch, 1997, p15). This involves suppressing the inferior culture. These Caribbean countries include Jamaica, Haiti, Cuba, Dominican Republic, and Puerto Rico among others. Caribbean countries have common problems, which include financial stress and lack of sufficient investment; as a result, they face crisis in the credit markets. Nevertheless, colonialism impact on the Caribbean countries is felt up to date. Cuba and Puerto Rico gained independence in 1901 whilst Jamaica and Trinidad gained their independence in 1962 (History of the Caribbean 2012). Colonial governments were mostly undemocratic, and emphasized on divide and rule, which weakened the local power institutions. This paper will discuss the legacy of colonialism in relation to some of the economic issues facing the Caribbean countries. Legacy of colonialism and its contribution to some of the economic issues facing Caribbean countries today The Caribbean countries struggled, but were full of courage for many years to attain their freedom and democracy as well. These countries have been a target to many developed countries due to their natural resources. However, the Caribbean countries have, over the years, tried to improve their economy to no avail; they have also tried to engage in clothes production, processing of food, and manufacturing of sugar, all of which have ended up in failure. The effects of colonialism have been felt on the Caribbean economy, which have contributed to its weakness. Though the Caribbean countries have attained their independence, some colonial policies hinder the Caribbean economy from excelling, posing as a ground for exploitation. According to The Michael Manley foundation (2006), colonizers of the Caribbean countries benefited greatly from controlling these countries; for instance, slave trade impacted positively on the industrialization of Britain, and as a result, emerging as the wealthiest nation. The colonized countries did advanced partially, as all the profits extracted from their resources benefited the mother countries of the colonizers. In addition, the Caribbean countries were not in a position to produce what they required, but they produced what the colonizers needed (The Michael Manley foundation, 2006). Today, the developed nations continue to benefit from the natural resources of the Caribbean countries with insignificant returns. For instance, Trinidad produces oil while Jamaica produces coffee, bananas, and sugar, all of which are exported to the developed countries. The developed nations use these raw materials to the benefit of their countries, and export the finished goods to the Caribbean countries; as a result, they make huge profits, while the Caribbean countries receive fewer returns. Colonialism encouraged the exportation of agricultural goods; as a result, the Caribbean countries have continued to lay more emphasis on the exportation of such goods rather than investing in their manufacturing industries by expanding them. If the Caribbean countries would expand on their manufacturing industries, they would gain more profits through exporting finished goods, rather than raw goods, and as a result, boosting their economy. Importing more and exporting less is the trend of the Caribbean countries, this trend began in the colonialism era, where these colonized nations imported goods from the colonizing nations with an aim of surviving. For instance, in 2005, Jamaica’s imports were valued at J$295,567,720 compared to the exports whose value was J$95,275,112 (The Michael Manley foundation, 2006). The great urge for imported goods was created by the colonizers who had made the Caribbean nations to believe that foreign goods were much better compared to home manufactured goods. As a result, the Caribbean continues to enrich the developed nations, and therefore stagnating their own economies. Needless to say, manufacturing their own machine rather than importing them saves them huge amount of money. The developed nations such as the United States benefit from free-trade policy, which permits a lower tariff for imported goods or products. The Caribbean free trade association was founded in 1965, with an aim of uniting the Caribbean economies by permitting free trade (Caribbean community, 2011). However, the developed nations could use the free trade policy as a form of neo-colonialism by making sure their interests are accomplished. The reduction of tariffs among the imported goods and products has led to fewer returns for the Caribbean nations; this is because the tariffs paid by industrialized nations are relatively cheaper, which attracts consumers who prefer buying these imported products. As a result, these countries are controlled indirectly by the developed nations. The monotony of relying on foreign aid from the colonizer’s mother countries has resulted to large sums of debts, which are hard to settle, and as a result, it poses the Caribbean countries to exploitation. Neo colonialism may involve funding provided by the World Bank; in this case, the developed nations end up controlling the economy of a country - the funds are accompanied by high taxes. The foreign aid acquired from the post-colonizing nations may assist to boost the economy of the Caribbean, but creates a dependency syndrome, which is addictive. After independence, the British colonies focused on development; in Guyana, the government controlled the economy, however, its reliance on foreign aid, which increased foreign debts. For instance, between 1976 and 1988, growth domestic product had decreased by 31%, increasing inflation by 1986, and thus, the Guyana economy has currently deteriorated beyond recovery (DaCosta, 2007, p.22). Needless to say, the Caribbean countries have continued to rely on foreign aid from developed nations, which has strings attached. Conclusion Caribbean countries experienced many years of colonialism. Evidently, after these countries gained their independence, their economies collapsed as a result of their dependency on foreign aid, which resulted to huge amounts of debts. Needless to say, colonialism continues to impact negatively on these countries, and despite granting them independence, the developed nations control them indirectly. The industrialized nations purchase raw materials from these countries at low prices; in return, they use the raw materials to manufacture finished goods, which they sell to the Caribbean countries at a profit. As a result, the Caribbean economy grows at a slow rate unlike the developed countries. In addition, in the colonialism era, these countries relied heavily on imports; this has been the same trend to date. Nevertheless, it is essential for the Caribbean countries to invest on manufacturing industries where they can use their raw materials to manufacture finished goods, and thereafter exporting them. As a result, they will generate adequate income, which will boost their economy. In addition, their reliance on exports will decrease, therefore diminishing neo-colonialism. References Caribbean community. (2011). The Caribbean free trade association (CARIFTA). Retrieved from http://www.caricom.org/jsp/community/carifta.jsp?menu=community DaCosta, M. (2007). Colonial Origins, Institutions and Economic Performance in the Caribbean: Guyana and Barbados. International Monetary Fund. Retrieved from http://www.imf.org/external/pubs/ft/wp/2007/wp0743.pdf Hillman, R. (2009). Understanding the Contemporary Caribbean. Retrieved from https://www.rienner.com/uploads/4a48e971d622c.pdf History of the Caribbean. (2012). Caribbean guide. Retrieved from http://caribbean-guide.info/past.and.present/history/ Osterhammel, J., & Frisch, S. (1997). Colonialism. Munich: Markus Wiener Publishers. The Michael Manley foundation. (2006). Preserving and promoting the legacy of a visionary leader. 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