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Employment Employment Stories in the Stories in the English Speaking English Speaking CaribbeanCaribbeanRalph HenryRalph HenryKairi Consultants LtdKairi Consultants LtdOctober 21, 2004October 21, 2004
Characteristics of Caribbean Characteristics of Caribbean EconomiesEconomies
Smallness and small market sizeSmallness and small market size Lack of diversificationLack of diversification Imports and Exports high, relative to GDP – Imports and Exports high, relative to GDP –
highly open economieshighly open economies Reliance on limited range of products and Reliance on limited range of products and
servicesservices Lack of competitiveness and reliance on Lack of competitiveness and reliance on
preferencespreferences Technological dependenceTechnological dependence Vulnerable to trade shocksVulnerable to trade shocks
Caribbean Development Caribbean Development and Employment Creationand Employment Creation
Lewis’s DilemmaLewis’s Dilemma
Solution SetSolution Set Capital and Entrepreneurship from Capital and Entrepreneurship from
abroadabroad Markets in metro-pole and brought by Markets in metro-pole and brought by
foreign capital itselfforeign capital itself Low wage and the virtuous circleLow wage and the virtuous circle
Growth of Employment Barbados (1970-2001)
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
Year
Barbados Growth
Growth of Employment Jamaica (1975-2001)
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
Year
Jamaica Growth
Growth of Employment Trinidad & Tobago(1970-2001)
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
Year
Trinidad & Tobago Growth
Labour Market FeaturesLabour Market Features
Endemic unemploymentEndemic unemployment
Labour Market does not clearLabour Market does not clear Trade Unions and stickiness of wagesTrade Unions and stickiness of wages Institutional structures and labour markets Institutional structures and labour markets Labour and Politics Labour and Politics Labour market segmentationLabour market segmentation Reservation wages – mineral export sector, workers can ‘afford’ Reservation wages – mineral export sector, workers can ‘afford’
unemploymentunemployment
Metropolitan lifestyle and links to Metropole determining wage Metropolitan lifestyle and links to Metropole determining wage goodsgoods
Economic StrategyEconomic Strategy
ISIISI Agricultural DiversificationAgricultural Diversification Nationalisation and Commanding HeightsNationalisation and Commanding Heights Economic IntegrationEconomic Integration Labour intensive technologyLabour intensive technology Export promotion – EPZs, and international Export promotion – EPZs, and international
division of labour, segmentation – garments division of labour, segmentation – garments and assembly operations and assembly operations
Tourism led growthTourism led growth State sector employment and SEPState sector employment and SEP
Stabilisation and Structural Stabilisation and Structural Adjustment ExperienceAdjustment Experience
Attempt at FlexibilisationAttempt at Flexibilisation Retrenchment and Reduction of State Retrenchment and Reduction of State
EmploymentEmployment Getting prices rightGetting prices right Informalisation of workInformalisation of work Technological ChangeTechnological Change
Industrial Strategy and Industrial Strategy and Existing TradablesExisting Tradables
Jamaica – bauxite/alumina, bananas, sugar, light Jamaica – bauxite/alumina, bananas, sugar, light manufacturing, data entry, tourism, underground manufacturing, data entry, tourism, underground economy and informal sector, musiceconomy and informal sector, music
St. Lucia – bananas, light manufacturing, data entry, St. Lucia – bananas, light manufacturing, data entry, tourism, tourism,
Barbados – sugar, light manufacturing, information Barbados – sugar, light manufacturing, information processing, tourism, other servicesprocessing, tourism, other services
Trinidad and Tobago – oil and gas, manufacturing and Trinidad and Tobago – oil and gas, manufacturing and regional markets, financial services, sugar, musicregional markets, financial services, sugar, music
Intervening InstitutionsIntervening Institutions
Conflict management and labour marketsConflict management and labour markets
Industrial Court in Trinidad and TobagoIndustrial Court in Trinidad and Tobago Tripartite Accord in BarbadosTripartite Accord in Barbados Open conflict – political taintOpen conflict – political taint
People response – Transnational household – People response – Transnational household – remittances, migration (intra and extra-remittances, migration (intra and extra-regional, eg. nursing for migration) music and regional, eg. nursing for migration) music and culture, informal sector, underground economyculture, informal sector, underground economy
Role and Response of Role and Response of GovernmentGovernment
The Bigger State – subject to revenueThe Bigger State – subject to revenue SMEsSMEs SEPs: function of government revenues – SEPs: function of government revenues –
Unemployment Relief Programme (URP), Unemployment Relief Programme (URP), CEPEP and OJT for youth, and MuST for 18-CEPEP and OJT for youth, and MuST for 18-50, in Trinidad and Tobago – sustainable with 50, in Trinidad and Tobago – sustainable with high revenues from gas and oilhigh revenues from gas and oil
Human Resource Development with wide open Human Resource Development with wide open doors to post-secondary education and training doors to post-secondary education and training in Barbadosin Barbados
Lessons or Moral of StoryLessons or Moral of Story
Employment generation by diversifying and Employment generation by diversifying and strengthening tradable sector - HRD strengthening tradable sector - HRD implications therefromimplications therefrom
Difficult to avoid mechanisms to share work in Difficult to avoid mechanisms to share work in the short term, including using SEPsthe short term, including using SEPs
Managing remittances and savings, including Managing remittances and savings, including ‘in-shoring’ savings from abroad, and ‘in-shoring’ savings from abroad, and redraining brains, and market penetration by redraining brains, and market penetration by migrants abroad eg music and culturemigrants abroad eg music and culture
Empowerment through human resource Empowerment through human resource development rather than certification of labourdevelopment rather than certification of labour
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