The Caribbean has the chance to reform and redirect their societies and economies towards competitive participation in the global political economy due to globalization. However, this statement will be evaluated using either dependency theory or Marxist theory. The goal of this essay is to assess the aforementioned statement from a dependency theory perspective.
The essay argues that dependency theory does not allow for the reform or redirection of Caribbean economies or societies through globalization. Instead, it suggests that globalization merely strengthens the socio-politico-economic paradigms that have existed in the region since the early days of European settlement. There are different definitions and theories surrounding globalization. Anthony Giddens, Director of the London School of Economics, views globalization as an intensification of global social relations that connect localities, resulting in local events being influenced by events happening thousands of miles away and vice versa1.
In the Caribbean, the impact of external events on local affairs has been historically significant. Colonialism imposed the laws and regulations of ruling colonial powers on the colonies. Although the colonies contributed to their respective empires’ growth, they did not benefit socially or economically from the prosperity they helped create.
The purpose of the region was solely to supply raw materials for the metropolitan states and not to engage in international competition. Rather than being a collection of independent states striving for global survival, the region functioned as a part of the empire, responsible for providing essential raw materials to support and expand the empire. For example, in Barbados, if clay is required, it would be sourced from St.
Andrew, just like in colonial times, if you were British and wanted sugar, it was highly likely that you obtained it from one of the Caribbean colonies. So, how can a region that has been socially, politically, and economically conditioned to be dependent for over three hundred years reform itself to compete in the global arena? And how can it do so in an accelerated and intensified global arena, where it lacks the privileges of development and must compete with the disadvantage of underdevelopment? Furthermore, how can the region achieve this while still being in its current dependent position? Unfortunately, it cannot.
According to Ronald Chilcote, there exists a contrast in outcomes resulting from the asymmetrical interdependence of economies between dominant nations and dependent ones. The expansion of dominant nations can potentially lead to the development of peripheral states through the extension of their expansion. However, it can also result in the underdevelopment of these states due to their subjective relationship. This suggests that the development of the region is controlled by the dominant countries in the global economy. The best course of action for the region is to align itself in a way that enables development as a result of the expansion of these countries, rather than suffer from underdevelopment caused by the relationship.
One way for governments in the region to ensure alignment is by requiring multinational corporations (MNCs) entering the local market to partner with local companies or franchises. This promotes growth of local enterprises and keeps some of the MNC’s earnings within the country’s economy, stimulating local economic growth. Lloyd Best identifies this as a means of avoiding the dependency theory’s plantation economy model, which involves a larger percentage of money being sent overseas.
This perspective extends the dependency theory, suggesting that the economies of the region are influenced by those of larger states, and that local economies cannot be reformed solely by governments but also by the local elites, who are influenced by international capitalists they align with. Consequently, this raises doubts about the role of the region’s class structure in its economies.
The elites in the region have both economic and political power. They own and/or operate organizations that control the local economies, giving them economic power within the region. Additionally, these organizations employ a significant portion of the regional population, providing the elites with indirect political power as they essentially control the means of production.
Are the elite classes in the region’s territories the ones who hold the opportunities for reformation and economic refocusing of the regional economies? It appears that the elites in the region are content with their current arrangements, with very few showing interest in regional expansion, let alone global expansion. The few who do have ventures in the region engage in a buy and sell style of business and represent larger international cooperations.
Barbados’ Chefette fast food chain has thirteen, soon to be fourteen branches in Barbados and currently has no plans for regional expansion. Meanwhile, Simpson Limited of Barbados serves as the Suzuki Motors sales representative/dealership for the Caribbean region up to Florida. Additionally, Simpson Oil Limited Barbados (SOL) owns Shell gas stations and its related entities in the eastern Caribbean. Chefette faces competition from international Kentucky Fried Chicken restaurants in Barbados, while Simpson Oil Limited enjoys considerable success as an enterprise.
Both can be categorized as neo-plantations in the plantation economy model of dependency theory. It can be argued that they are both vying for dominance within the global economy or resisting global influences. Does this indicate that the region is already prepared for competition in the global political economy, or does it simply reinforce the notion that the economic future of the region is determined by the elites and their international alliances?
According to Lloyd Best, one structure of the plantation economy model is the reliance on investment and capital from metropolitan areas. This can be seen in the example of Simpson Oil Limited and other regional businesses, which purchase and sell goods from metropolitan areas or form partnerships with multinational corporations. A specific case is the potential alliance between Subway restaurants and Goddard Enterprises Limited in Barbados.
According to dependency theory, the periphery states’ reliance on more developed nations hinders their ability to establish robust social, economic, and political practices. This reliance suggests that these states are unlikely to develop strong traditions due to their dependency. Moreover, it implies that the region will struggle to compete in the global political economy because of their current dependent economies. The governments and elite classes of the region are unable to reform or redirect the economies due to their reliance, external alliances, and the presence of globalization.
The governments’ failure to effectively carry out economic reforms or steer their economies can be ascribed to their subordinate position to the local elite classes. These elites possess greater economic power and domination over vital resources, and they are additionally influenced by their affiliations with multinational corporations (MNCs). As a result, the elites give precedence to their own interests along with those of the MNCs.
The region has served as a provider of labor, food, and raw materials for metropolitan states over the last 300 years. According to the dependency theory, globalization will maintain the region’s reliance on these states, with a small group of elites having control over wealth and political power. Best argues that plantations in the plantation economy model are similar to conventional agricultural plantations.
The plantation system had a strict class structure and unequal distribution of wealth. The majority of money was in the hands of the planters, while the masses had very little. This division was characteristic of the plantation society, and the modern neo-plantations have not changed much in this regard. However, there has been a rise of a knowledgeable and educated middle class in some regions.
The societies in the region have long been influenced by external forces. European culture held sway for a significant period before being superseded by American popular culture, which was imposed on the region through media channels. This dominant cultural influence also extended to societal institutions like schools, where the curriculum was shaped by metropolitan perspectives, some of which were disconnected from the Caribbean reality.
The majority of the region’s population remained impoverished and relied on local elites for employment due to the plantation system. This effectively resulted in a continuation of the plantation system. In the English speaking Caribbean, slaves were emancipated in 1834. However, for a century after emancipation, social progress and improvements in areas such as wages remained stagnant.
Despite the labour riots in the 1930’s and the rise of trade unions and political parties, the region was only able to make limited improvements to the living conditions and wages of its people. Class and wealth divisions still persisted in society, and the plantation system remained intact. For the past 300 years, the societies in this region have remained relatively stagnant, with a culture of dependency where the majority of jobs are controlled by a small elite known as the neo-plantations.
The private sectors of the region’s countries have long been in control of the ‘means of production’ and still hold that control. During the era of slavery, the planters were responsible for providing shelter and food to the slaves, and even after emancipation, the plantations remained a major source of employment, especially in smaller territories where alternative options were scarce. Today, companies like Barbados Shipping and Trading (BS&T) and Goddard Enterprises Limited function as modern-day plantations, employing a significant portion of the population in these states.
Does globalization create more options and job opportunities for society, or does it exacerbate dependencies by replacing current neo-plantations with bigger international institutions? The region’s neo-plantations are already connected to several international institutions, and it is probable that they will continue to serve the interests of multinational corporations in the region rather than being replaced by global forces.
According to James Mittleman, a professor of International relations at American University, while globalization may not eliminate people’s reliance on neo-plantations for employment, it has the potential to expand job options and facilitate the mobility of skilled and educated individuals from the region to work elsewhere. Nonetheless, the issue of dependency remains. Mittleman suggests that globalization has the effect of compressing social relations in terms of both time and space.
Mittleman fails to acknowledge the unequal access to global networks and infrastructures, particularly in the global South. This leads to an imbalance in benefiting from globalization and contributes to inequality. Dependency theory also analyzes how external forces affect economies, societies, and cultures of countries in this region, leading to a decrease in effective sovereignty. International institutions like the IMF, World Bank, and WTO hold sway over domestic and foreign policies. Nations seeking loans from the IMF must meet specific criteria known as Structural Adjustment Programmes.
The IMF’s structural adjustment programmes often have negative consequences for the countries they are imposed on, particularly impacting the poorest populations. These programmes typically involve devaluing local currency and eliminating government subsidies for social institutions like education and healthcare. Currently, Trinidad is beginning to recover from the effects of these programmes, while Jamaica is on the road to recovery. Meanwhile, Guyana is still facing challenges as it navigates its way through the programmes.
The current state of the region is attributed to global institutions. Despite globalization, there has been a lack of substantial opportunity for the region to reform and redirect its societies and economies towards genuine engagement with the global political economy. The region’s heavy dependence on raw materials and labor continues to hinder globalization’s ability to effectively contribute to economic and social reform.
In spite of attempts to reform and redirect regional economies and societies, these efforts have been limited in scope and primarily focused on local areas. Despite initiatives such as Federation, Carifta, and the Caribbean Single Market and Economy (CSME), with the exception of the currently controversial CSME, they have not achieved success and are now only taught in secondary schools or regarded as regional sports events. The process of globalization has actually reinforced the region’s status as a peripheral entity to larger developed countries and global markets. Consequently, the region will continue to rely on others and be subject to exploitation, a situation that it has experienced for over three centuries.
The presence of globalization in the region for over three hundred years can be traced back to its roots in colonialism and imperialism. According to the theory of dependency, this global phenomenon perpetuates the division of class and wealth, resulting in a concentration of money in the hands of planters while leaving very little for the masses. (End Notes: 1Anthony Giddens in M. B. Steger, Globalization: A Very Short Introduction (Oxford: Oxford University Press, 2003) 10. Ronald Chilcote, Dependence: A Critical review of the Literature, Latin American perspective 1, no. 1, 1974: 4. 3 Steger, Globalization: A Very Short Introduction, 15-16.)
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