Industrialization by Invitation

industrialisation is the process of kindly and scotch change whereby a cordial group is transferred from a manual dig up ground structure to a more technologically driven society and where the parsimony gains much more majuscule via manufacturing industries. Caribbean economies defy been labeled as weak and parasitical, and controlled by stronger external states and institutions (The Plantation Economy). Sir Arthur Lewis, St. Lucia? s commencement exercise Nobel Prize winner, has released several publications on the free of underdeveloped nations in the Caribbean and solutions to correct this under emergence.Of these publications is the invention of ? industrial enterprise by invitation?. Lewis felt that this was a tone submited to be taken for the British western Indies to develop. Sir Arthur Lewis polity aid in the victimisation of the B. W. I nevertheless the constitution itself too hindered victimisation as wellspring as left prohibited study aspect s of development. After Lewis studied the schema known as Operation aid (policy of deliberately inviting unusual direct investors) in Puerto Rico, he set out to con wreak to and implement similar in the British western Indies.The economies of the British Caribbean were generally farming(a) and there was a need to fix industrial growth and trade in manufactured goods, to diversify the scotch base, since these economies were principally monocrop economies. This term not only refers to the addiction on sugar and bananas, it besides characterizes the colony on touristry or the anoint industry. Lewis thence proposed the strategy to invite remote investing as a look to sex growth, not only in industry but likewise cultivation, and hence to reduce the dependance on the exportinging sector.He reasoned that the British West Indies had a great abundance of unskilled elbow grease in agriculture and amongst the unemployed. These countries did not permit 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 profits by employing cheap supernumerary boil from agriculture. They would also benefit from tax holidays for the first cinque or ten years of their operations, and former(a) cin one casessions such as subsidies.In other(a) speech incentives would be offered to encourage these corporations to invest . Caribbean governments popularly espouse this policy in the 1960s. several(prenominal) immaterial found companies that atomic number 18 found today in the Caribbean atomic number 18 the gist of Sir Lewis policy. This is most apparent in the tourer industry many foreigners absorb invested in hotels which employ the majority of people. several(prenominal) countries at heart the Caribbean put one across attempted Sir Arthur Lewis? concept of ? industrial enterprise by Invitation? with the outcomes existence mixed. Th is meaning that it expand direct foreign investment, injecting capital into topical anesthetic institutions. and then far, this increase in foreign investment brought about a higher dependency level on technology, raw 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 stupefy achieved a lot of growth and without or in fact especial(a) development.Yes, the region? s infrastructure has alter dramatically but their industries and companies are principally foreign and therefore a self-coloured amount of profits made are sent abroad. Development therefore has been moderate with the major organizations within the delivery beingness foreign and not indigenous. Sir Arthur Lewis? concept of ? industrialization by Invitation? was not completely made since the ? development? of the countries? economies did not reach the limits Lew is predicted.Currently the world market has a major blackball effect and influence on the Caribbean economies payable to the region? s habituation on foreign investments. Example of an essay on industrialisation invitation theory Arthur Lewis Industrializagtion by invitation To what aftermath can it be argued that Sir Arthur Lewis policy of Industrialisation by Invitation aided in the development of the B. W. I By Jennine Small. According to Nassur Mustapha development is defined as, the progressive process of human, cultural, political, economic and social change, which shapes peoples lives. The grey countries particularly the Caribbean have been classified as developing countries, which are still slenderly dependent on the seat of government which once colonized them. Sir Arthur Lewis in the immediate post- universe War II period advocated industrialization of the British West Indies, he take in a policy called Industrialisation by Invitation. He felt that this was a s tep needed to be taken for the British West Indies to develop. Sir Arthur Lewis policy aided in the development of the B. W. I but the policy itself also hindered development as well as left out major aspects of development.The Industrial Revolution was one of those diachronic events which drastically changed societies all over the world. contempt the revolution having its roots in europium , particularly Britain it then spread to places homogeneous the U. S. A and later the Caribbean. Industrialization became the machine used for a society to occupy the transition from a traditional, labour intensive economy based on agriculture (agrarian) to a more capital- intensive economy based on manufacturing by machines , vary labour and Industrial factories.Sir Arthur Lewis recognized the grandness 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 Industrialisati on. After Lewis studied the scheme known as Operation assist (policy of deliberately inviting foreign direct 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 farming(a) 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 vegetable oil industry. Lewis therefore proposed the strategy to invite foreign investment as a federal agency 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 corporatio ns (MNCs) with millions of dollars at their disposal were to be invited to the British West Indies where they could earn huge profits by employing cheap surplus labour from agriculture. They would also benefit from tax holidays for the first five dollar bill or ten years of their operations, and other concessions such as subsidies.In other language 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 effected 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 typeface, 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 complement these businesses. Foreign investors have introduced the in style(p) te chnologies and influenced the improvement of public services. On the contrary, the policy is very much economically based , its aim is for countries to achieve economic growth. However development also includes other aspects, there is no indication on how foreign investers may positively impact the reference of life , welfare or education.Therefore this policy cannot 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 money earned by these investors have been repatriated to their home countries thus 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 exempt holidays were up they closed up shop and go on. They were mainly capital-intensive industries, virtually no edible were made for training citizens to organize and dominate similar plants, such as the fable 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 Frank and Samir Amin were the two theorists associated with this schoolhouse of thought .Both argued that the third world countries are classified as the Peripheries and the Western/ industrialised capitalist countries are the outcome. 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 link between them and the core in order to be self- adapted and independent.Therefore the MNCs can be seen as negative according to this pe rspective dependence is an undesired state and situation . It only causes, injustice, dark and exploitation. Following from the dependency theory, we can depone 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 motion 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 forth from traditional economic models that make them dependent on foreigners and also perpetuate the bequest of colonialism in how the Caribbean economy is structured.Grade Profile fellowship & Understanding 7/10 edition & Analysis 7 /10 implication & Evaluation 7/1 0 The student demonstrates a very good reason of the subject matter under examination. see and evaluated the question well. Student should have named roughly Companies or a company that emerged as a result of IbyI in their grease and explain the advantages and disadvantges of the policy using the live example as the base. Altogether however this was a good