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Economy
Plantation Economy Theory
Lewis dual economy model and policy prescriptions were
dominant
Colonial period:
Caribbean economies were described as Hinterlands (came from the
Germans means country side)
Hinterlands of Conquest
Plundered for existing wealth by the Europeans
Hinterlands of Settlement
Colonies in which Europeans settled and built new societies
More relevant to the Caribbean than the competitive firm of neoclassical economics
Largely self-sufficient (little trade or links with other entities in the hinterland)
Foundation
o Low costs of establishment cheap labour and land; highly fertile and productive
land virgin land
Golden age
o Strong market demand for the staple
Maturity and decline
o Rising costs (declining land fertility, increasing labour costs, increasing security
costs (slaves), increasing managerial costs, competition,
o Release of land and labour resources from production (formation of the
residentiary sector)
Economy expanded and contracted with the price of the staple
Legacies of the Plantation Economy
Limited skill and technology and all oriented to the export
commodity
Reduce openness
Land reform
Income re-distribution