Globalization and Saint Lucia

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Globalization and Saint Lucia
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Why would globalization be good?

• Economic growth means improved livelihoods and
  reduces poverty
• Access to food and education
• Access to technology- Diamond remote poor access
  to information
• Access to more things
• The more growth we have the better off we all are
• It will trickle down

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Why would globalization be bad?

• Economies of scale not diversified (subject to
  outside forces)
• National autonomy tourism
• Ecological impact
• Distribution

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GNP counts special locks for our doors and jails
for the people who break them. GNP includes the
destruction of the redwoods and the death of Lake
Superior. It grows with the production of napalm,
and missiles and nuclear warheads -Senato
r Robert Kennedy
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Caribbean Single Market Economy (CSME) - 1996

• An agreement between 12 lesser-developed
  countries in the Caribbean, Latin America and
  South America
• The aim is to create a single economic space
  within which all factors of production will move
  freely and common economic policy will apply

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St Lucia, St Kitts and Nevis, Suriname, Belize,
Jamaica, Antigua and Barbuda, Montserrat,
Grenada, Dominica, St Vincent and Grenadines and
Trinidad and Tobago
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How do economies grow?
Y f (K,T,L)

• Capital (K)
• Land
• Natural resources
• Built environment
• Technology (T)
• Changes in productivity
• Labor (L)
• Size of the labor force
• Skills of the labor force
• All changes in the real size of an economy are a
  result
• of one or more of these factors.

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Factor 1 Capital

• Gross Domestic Product (GDP)
• Components of GDP
• Limitations of GDP

The total value of goods and services produced
by a nation
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Saint Lucias Per Capita GDP is just below the
median among CSME nations, but well below the
average.
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St Lucias growth in the past 15 years has been
well below the CSME average of 2.0.
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Like most Caricom nations, St. Lucia is heavily
dependent on the service sector.
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GNP counts special locks for our doors and jails
for the people who break them. GNP includes the
destruction of the redwoods and the death of Lake
Superior. It grows with the production of napalm,
and missiles and nuclear warheads -Senato
r Robert Kennedy
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(No Transcript)
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CLIMATE DAMAGE
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Distribution-Grow out of poverty?
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Factor 2 Technology

• Technology encompasses any change that
  increases production without adding capital or
  labor. Anything that increases productivity is
  considered technology.
• Perhaps the most important technological
  improvement in the past 25 years is internet
  access.
• St Lucia has 336 internet users for every 1,000
  people. This is well above the CSME average of
  223.

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Factor 3 Labor

• Components
• Size
• Education

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Saint Lucia can benefit from its more diverse
labor force. A study to find the percent of each
labor force that is skilled according to CSME
would be very beneficial.
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Saint Lucias poverty rate is below average,
while its unemployment is above average.
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76 of school-age children are currently enrolled
in Saint Lucia, which is the average among CSME
nations
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The importance of education Correlating
Education and GDP
Per capita GDP
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Average years of education
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Hypotheses for long-term goals

• The short-term impact of the CSME on the St.
  Lucian economy will be negative as skilled labor
  moves to higher wage areas.
• The long-term impact of CSME on the St Lucian
  economy will be positive, primarily because of
  increased trade, economies of scale and access to
  skilled labor.
• While the long term benefit will be positive, it
  could have negative impacts on distribution and
  the environment.

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What do you think about globalization?

• Incorporate values of ecosystem services
• Better distribution
• Can we have more economic growth and incorporate
  ecological sustainability and social equality? -
  Walmart