Page 17 - CAPE Caribbean Studies Study Guide Sample_Neat

Module 2 Issues in Caribbean development

there is low productivity among high-income earners, and skilled workers ✓ Exam tip
leave the region.
Candidates are required to explain
Inequality in the distribution of wealth leads to certain sectors of an economy
the various forms inequality of
being developed while others may remain undeveloped. For instance, if in the
wealth can take and state the
national budget, health, education and national security receive the largest
consequences. Reference can be
allocation while ministries such as sports and gender affairs receive the
made to poverty, discrimination and
least, then potential athletes may face a lack of infrastructure or inadequate
even underdevelopment of some
facilities to train. Fewer sports scholarships may be given and as a result
sectors in an economy.
society may lose out on gifted athletes.
CASE STUDY
KEY TERM
Poverty in the Caribbean is seen as both a social and economic issue. In
November 2002, a report was prepared for the Caribbean Development
Culture of poverty: The living
Bank concerning poverty and inequality in the Eastern Caribbean.
conditions and inequalities
The report stated that the territories of the Eastern Caribbean faced felt among people who are
decline in economic growth and development due to inequality in income experiencing poverty are similar
distribution and high poverty levels. Even though these countries raise regardless of their country
revenue via tourism and the banana industry, they still face economic of residence. Poverty creates
hardship due to a stratified society based on class, power and wealth, a fatalist mentality, which
coupled with a culture of poverty. The report stated that inequality becomes normalised in the
in income distribution resulted in a high dependency ratio, and the minds of those who experience
marginalisation of women and children. It is believed that if the issue of it, impacting the process of
inequality of income distribution is dealt with, then households may be development.
better able to care of their members, and groups will not be marginalised
Poverty is indicative of low or
in society.
absent income, unemployment
and/or low levels of education.
It often induces other
Key points societal issues, including
high dependency ratios, the
■ Resources in the Caribbean may be categorised as physical and non- marginalisation of women,
physical. children and the elderly, as
well as putting pressure on
■ If managed and distributed properly, the resources can promote government welfare systems.
development in the region by giving different sectors enough resources to
operate efficiently and also giving groups of people a chance to improve
themselves.

■ When resources are distributed unequally it can lead to many socio-
economic ills, such as poverty.

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