Question

There are five rules which characterize the relationship between the Metropole and the Hinterland under the Plantation Model posited by Best and Levitt. Two of these five rules are: Muscovado Bias Imperial Preference.

Review the economic development of Jamaica's economy and briefly discuss how these two rules may have influenced its economic development. Give good reasons and use empirical evidence.

Answer 1

Plantation economy was a dominant mode of production in the Caribbean region for centuries that is argued to have led to the under development of the region. In the plantation model Best and Levity (1978), argue that plantation economies are generally colonies of exploitation. They were set up to serve the needs of the metropole. Production of sugarcane provided exceptional profits for Britain and other ruling countries. Muskavado is a type of unrefined brown sugar that was exported in large numbers to Britain and other ruling countries. Best mentioned in his paper A Model of pure plantation economy (1968), plantation economies exhibit a musksvado bias which restricts such economies to either primary production and crude processing or at the other extreme to assembly. Further, these produce either a single product of are undiversified in other productions. Most of the factors of production are owned by the Metropole which also provide financial services. ( Source: What's wrong with plantation economy - guardian.tt)

Imperial preference was a commercial arrangement in which preferential rates were granted to one another by constituent units of an empire. Imperial preference on sugar helped in the growth of the industry in Jamaica.

Jamaica is classified as an upper middle income economy by the World Bank. Services contribute about 70% to GDP. Foreign exchange comes mainly from tourism, remittances and bauxite. ( Source : cia.gov Jamaica Profile). During the colonisation years, production of sugar was emphasized that made it a major industry and the imposition of imperial preference on sugar further enhanced the growth of the industry. The output was largely exported to the ruling countries which also retained profits. Over the years, the sugar industry has remained a key driver of the Jamaican economy. It is often argued that the muskavado bias and imperial preference arrangement played a big role in making the industry more efficient. Even as the industry contributes to Jamaica's exports in good numbers, the historical practice somehow made the economy focus more on primary goods and in the process coudnt divert its resources to other industries to produce goods up the value chain. As a result, it's economy coudnt really realize it's potential, leading to under development of its resources.