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ISSUES IN CARIBBEAN DEVELOPMENT

Concepts and Indicators of Developent


DEVELOPMENT! is a multi-dimensional process which brings about a continuous
enhancement of the capabilities and welfare of all individuals in the society and the country as a
whole.
S"staina#le Developent: a theory of development that views the process in a holistic light,
encompassing social as well as economic development and emphasizing the importance of
conserving the environment and natural resources.
Econoic developent! a process whereby the real per capita income of a country increases
over a period of time (Martinussen).
Econoic $ro%t&! the steady process by which the productive capacity of the economy is
increased over time to bring about rising levels of national output and income (Todaro
!mith)."
'"an developent: a holistic portrayal of development obtained by putting human being at
the center of the process (Mohammed #$$%).
Econoic Developent Indicators!
(ross doestic prod"ct! a measure of the total good and services produced in an economy over
a specified period of time, usually a year(&annoc', &a(ter )avis #$$*)
(ross national prod"ct! this is the +), of a country with ad-ustments made to include
investments and other income from overseas generated by the country.s nationals, and
deductions made for income earned in the country by persons abroad (Todaro !mith #$$/).
Per Capita incoe is t&e total incoe earned fro $oods and services prod"ced #) a
co"ntr) in one )ear divided #) t&e total pop"lation for t&at co"ntr) in t&at )ear*
Pop"lation $ro%t& rate! this is calculated by considering birth and death rates as well as
migration statistics.
A$e dependenc) ratio: the ratio of dependents i.e. individuals younger than 01 and older than
21 in comparison to those ages 02 to 2/ who are active in the economy.
Merits of t&e econoic developent approac&!
3 4t provides a standardized means of measuring development. 4t provides a starting point
for classifying level of development and identifying some development needs.
3 4t allows an easy comparison and ran'ing across different countries.
3 4t provides a seemingly simple prescription to combat the high levels of
underdevelopment that persist in developing countries.
Liitations!
3 +5, per capita does not account for all the economic activities that ta'e place in a
country, e.g. bartering transactions, subsistence farming, drug trade, domestic wor'
(informal economy).
3 +5, per capita is recorded in 6! dollars but in different countries one dollar is able to
buy more goods and services than in another.
3 +5, per capita does not show how the income or wealth is distributed. The increased
income may be concentrated in the hands of a few.
3 +5, per capita does not ta'e into account the social and environmental impact of
economic development. Many countries which record increased economic growth do so
at the e(pense of the environment.
3 7ealthy citizens have been 'nown to ban' their profits outside of the country. 8s a result,
their income is not fully captured in the +5,.
3 The +5, is only a measure of economic growth and does not include such factors as
non-mar'et activities, e.g. pollution, resource depletion and environmental degradation.
NON+ ECONOMIC INDICATORS
5on- economic factors of development are also referred to as indicators of 9uman )evelopment.
!ince 'ey concepts in 9uman development are based on e:uity, sustainability, empowerment and
participation. The 6nited 5ations 9uman development 4nde( was broadened to include:
;reedoms en-oyed by the population
8vailability of 9ealth <are (not -ust its e(istence)
8ccessibility of housing and education
<rime =evels> rate
1. !ocial and economic e:ualisation
This is an indicator that is used to measure the degree to which members of society are
e(periencing social mobility. !ocial and economic e:ualisation means the degree to which all
groups are e(periencing similar levels of income, access to goods and services and other
opportunities.
2. )istribution of wealth
The distribution of income also spea's to e:uity. ?:uity spea's to the fair distribution of a
country.s material wealth between classes, groups and genders. 4f a country.s material wealth
grows, but the ine:uality between classes, groups or gender is widening, then development is
being impeded because that situation can lead to social tension in the future. ,treatent of
%oen- c&ildren and t&e ar$inali.ed/ )istribution of wealth influences the e(tent to which
different groups can access the resources of the society. The wealthy have access to resources
such as education and training which allow them benefit in a number of ways. 7hen the poorer
groups in society are unable to ta'e advantage of such resources the society is denied the income
that they could have generated. Moreover, the government would.need to allocate more money
to provide for social welfare.
3. =evels of 4ncome
=evels of income spea' to categories of income of a variety of individuals such as teachers,
lawyers, construction wor'ers, engineers, minimum wage wor'ers. These categories>levels
can be used to indicate the growth levels in an economy especially, for e(ample, when these
levels of income are rising.
4. =iteracy and ?ducational 8ttainment (Modern @nowledge)
The traditional definition if literacy is considered to be the ability to read and write. 4n modern
conte(ts, the word refers to reading and writing at a level ade:uate for communication, or at a
level that enables one to successfully comprehend and communicate in print society. Therefore
literacy plays a role in providing access to power. The 6nited 5ations ?ducational !cientific and
<ultural Arganisation (65?!<A) defines literacy as a continuum of learning to enable
individuals to achieve his> her goals, to develop his> her 'nowledge and potential, and to
participate fully in wider society.
=iteracy may also be seen as access to modern 'nowledge. @nowledge is measured by access to
education, adult literacy and mean years of schooling. This indicates the e(tent to which
members of society are able to embrace opportunities related to further and continuing education
in order to improve the :uality of their lives, such as 4<Ts. 4ncrease in modern 'nowledge refers
to the influence of Bmodernizing. institutions such as schools and factories which are thought to
promote urban industrialized societies.
5. ,roductivity and the level of social services
The :uality of infrastructure in a country enhances the production capability of that country and
helps to encourage foreign investors to choose that country as a site. This would include such
things as good roads, postal systems, transportation systems, availability of power supplies,
telecommunications and water. 8n increase in productivity means that there would be an increase
in the development of certain social needs. ;or e.g. a decrease in health care cost and the
availability of health care to most if not all the populationC decrease in security costs and leisure.
6. !ocial ,articipation and <ivic <onsciousness
4f the level of output and wealth grows in an economy with all the decision ma'ing and controls
in the hand of a few and the local community is not sharing in the decisions which affect their
lives, then there is growth without development. This level of output would not be sustainable in
the future because of the dependency engendered. ,olitical participation is one e.g. where the
public must be given different ways through which they can participate in the ma'ing of political
decisions in a country.
7. ?nvironmental ;actors
?conomic growth relies on nature for the supply of raw materials and the absorption of the
resulting wastes. ,ollution and destruction of the environment are now included as indicators of
development. 4f a country is getting richer, but the environment is being destroyed in the process,
that country will not be able to sustain that level of wealth in the future since the natural
resources would be depleted.
%. =ongevity
This is measured by life e(pectancy at birth. 4t gives an indication of the health resources of the
country, access to those resources, levels of poverty in the society, whether people have access to
safe drin'ing water, as well as whether wars and civil strife are on-going problems.
!A6D<?!
E <hallenges to <aribbean )evelopment: #$$$ and beyond
Duel reid
E Deadings in <aribbean !tudies
)avid &rowne et al
E <aribbean !tudies: 8n interdisciplinary approach
Fennifer Mohammed
E <aribbean !tudies for !elf- !tudy and )istance =earning
Fennifer Mohammed et al