REGIONAL INTEGRATION

Lesson 1

Introduction to Regional Integration

Form 4

Teacher: Ann Samm-Regis

Modules in Social Studies:

Read pages 236-241, 393, 401-403

Objectives:

1. Define Caribbean region, regional integration

2. Common characteristics of the Caribbean region

3. Define MNC, developed country, underdeveloped country,

developing country

4. Advantages and disadvantages of MNCs

CARIBBEAN: relating to the region consisting of the Caribbean Sea, its islands and the surrounding coasts

REGION: an area of a country or the world having definable

characteristics but not always fixed boundaries

INTEGRATION: combining parts of something so that they

work together as a whole.

REGIONAL INTEGRATION:

1. Caribbean states working together to achieve certain

economic objectives which would make the region better off.

2. The unification of Caribbean states through economic

agreements which promote free trade between them by the

removal of barriers to trade. (CSS for CSEC, pg. 206)

3. Countries, organisations and individuals working together to

develop the region politically, economically and socially.

(SS for CSEC Examinations, pg. 225)

Characteristics of the Caribbean region

1. LIMITED MINERAL

RESOURCES

Minerals (T&T has oil, natural gas,

asphalt, limestone and gypsum.

Jamaica has bauxite, gypsum,

limestone. Haiti has bauxite,

Barbados has oil and limestone.

Guyana has bauxite, gold, diamonds)

2. AGRICULTURE-BASED

ECONOMIES

Tropical climate: suitable for

agriculture

Fertile soils: sugar, bananas,

arrowroot, ground provisions

Vulnerable, seasonal

3. DEPENDENCE ON TOURISM

• Warm tropical climate: sunny and

breezy

• Historical sites

• Rich culture (ethnic diversity –

multicultural society)

• Scenic beauty and biodiversity of

flora and fauna: eco-tourism

(nature trails, bird watching, mud

volcanoes etc)

• Vulnerability of tourism industry

e.g. H1N1 outbreak in Barbados

can cause major losses in the

hotel industry

• World recession can cripple

tourist industry

Characteristics of the Caribbean region

4. VARIED ETHNIC

COMPOSITION

• Multicultural (colonialism, slavery,

indentureship, etc)

• Rich and unique culture

5. COMMON HISTORY AND

HERITAGE - Members of the British

Commonwealth. Government, legal

system, language, education system,

social institutions, all modelled on

British way of life

6. PRONE TO NATURAL

DISASTERS: e.g. hurricanes , floods

and earthquakes which destroy

property and cause economic

setbacks (Grenada)

7. SMALL POPULATION SIZE,

SMALL PHYSICAL SIZE

- Small domestic markets limits

possibility of economies of scale

- Distance between the islands and

inefficient inter-island transport

hinders trade, increases transport costs,

increases costs of production

8. BRAIN DRAIN

• Skilled and educated people leave

and migrate to developed countries

in search of more attractive jobs

and a higher standard of living

9. SHORTAGE OF CAPITAL FOR

INVESTMENT (debt burden due to

loan repayments)

Their small physical size, small

population size, limited resources,

underdevelopment etc. has led Caribbean

countries to attempt to unite and

cooperate for their common good.

DEVELOPED COUNTRY

➢ very industrialized nations

➢ high per capita income

➢ high standard of living

➢ access to more goods and

services than people in

developing countries.

e.g. Canada, Japan, the UK,

the USA

DEVELOPING (THIRD-WORLD)

COUNTRY

➢ lower per capita income

➢ lower standard of living

➢ access to fewer goods and services than people in developed countries

e.g. Caribbean and Latin America (Central and South America)

UNDERDEVELOPED

COUNTRY

➢ lacks industrialization

➢ lacks infrastructure

➢ lacks developed agriculture

➢ undeveloped natural

resources

➢ low per capita income

e.g. Parts of Africa, Haiti,

Parts of Asia

Multinational Corporations (MNCs), are very large businesses that

have offices and factories in several different countries.

• Headquarters in developed countries (e.g. USA, Japan, Europe)

• Subsidiaries in developing countries where labour is cheap and

production costs are low. (e.g. Asia, India)

Very large multinationals have budgets that exceed those of many

small countries.

Facts about MNCs• Some of the largest MNCs make more money in a year than all of the

African countries put together.

• The world’s 500 largest companies now control at least 70% of world

trade and produce more than half of the world’s manufactured goods.

• Being so large, they also influence consumer tastes and lifestyles and

are responsible for many of today’s scientific and technological

breakthroughs.

• Many people are concerned about the effects of multinationals. They

argue that they locate in poorer countries just to make a profit, and pay

low wages, particularly to women and young children.

• Others say that without multinationals the poorer countries would not

be able to develop their own industries.

• MNCs and TNCs have always been able to take advantage of Caribbean

countries by playing us against each other.

Advantages and Disadvantages associated with MNCs

ADVANTAGES

1. Provide employment

2. Provide training

3. Provide money for industrial

projects

4. Help develop mineral

wealth

5. Improve roads, airports and

services

6. Provide technology and

knowhow

7. Provide trade links with

other countries

DISADVANTAGES

1. Local labour usually

poorly paid

2. Employs few skilled

workers

3. Most profits go overseas

4. Exports raw materials (no

value added)

5. Companies may leave at

any time

6. Rarely consider the needs

of the country

Next class:

Part 2 of Introduction to Regional Integration -Globalisation