Section C, question 6 (c)
Marjorie Henry, Contributor

Today I am continuing the discussion on Question 6 of the June 2009 question paper. Here is part (c) of the question.

(c)(i) Explain why Caribbean governments are giving increasing attention to the development of tertiary activities. Include TWO reasons in your responses. (4 marks)

(ii) Suggest TWO causes for the challenges faced in the Caribbean by

EITHER the garment industry OR the food-processing industry. (2 marks)

(iii) Suggest THREE reasons why the CARICOM Single Market and Economy (CSME) can help the Caribbean countries to address some of the challenges facing development in the region. (6 marks)

(c) (i) Reasons why Caribbean governments are giving increasing attention to the development of tertiary activities include the following:

• People have increased incomes and are demanding services like hairdressing, pedicures/manicures, high-tech industries.
• Tertiary activities provide jobs and valuable income in services such as transport, communications, retailing and tourism. Skilled and semi-skilled workers are involved.
• As manufacturing declines, there must be alternative ways to make the economy grow.
• Tertiary activities have a positive impact on the gross domestic product (GDP) of the country. There is a reduction of imports.

(c) (ii) Causes for the challenges faced in the Caribbean by the garment industry include:

• Foreign competition: This is the result of a growing trend in the world - globalisation. Restriction on imported goods is being lifted in many countries while manufactured goods compete in the free world market. Imported garments are mass produced in other parts of the world, using relatively cheap labour. Many garment factories are forced to close down as they cannot compete with the cheaper imported garments.
• The changing demand of the local markets in the Caribbean: There is generally a shift in preference for imported and branded garments.
• Low wages and long hours of the garment industry: The effect is that the garment industry is finding it increasingly difficult to attract newer and younger workers to work in this industry.
• Lower wage costs: Operations have moved away from the Caribbean to Mexico, as well as to some Latin America and Asian countries, where wages are lower. Factory rents and electricity cost may also cost less.
• Security arrangements: In Jamaica, for example, some investors are concerned about security costs, especially in Kingston where the crime rate is high.
• Local markets: Because of the size of the Caribbean, local markets are small when compared with other countries, such as the United States, that have a big market.

Causes for the challenges faced in the Caribbean by the food processing industry include:

• Modern technology: One challenge for the food-processing industry is the introduction of modern technology into the various stages of the food-processing process. Companies are usually resistant to the introduction of new technology, either because of a lack of capital or an unwillingness to invest in new technology. Sometimes it is the lack of skilled manpower to manage the new technology.
• Meeting the standards set by imported processed foods: The demand for these imports is high because of savvy marketing and advertisements. Local producers have to improve their way of processing food and invest in research and development to come up with products that are equally attractive to meet the high standards and expectations of the consumers.
• Finding niche markets: With globalisation and trade liberalisations, it is becoming more difficult for the local food-processing industry to maintain its hold on the local market. Established products and brands now face stiffer competition from exotic foreign food products.
• The vagaries of the weather: This can cause too much or too little of the crop that provides the raw material for processing. For example, tomato is a seasonal crop. It grows well in the dry season, but too much rain causes poor crops. Sometimes there is a glut in the dry season.
• Size of processing plants: As processing plants increase in size, the local farmers become unable to supply enough raw materials. To maintain production and employment, the raw food stuff has to be imported. This is dependent on the type of food-processing industry.

Part (c) (iii) will be discussed in the next lesson.

References:

• CSEC New Integrated Geography by Sheldon Bleasdell et al
• Geography for CSEC by Nelson Thornes
• Modern Caribbean Geography by John Niles
• The Caribbean environment for CXC Geography by Mark Wilson

Marjorie Henry is an independent contributor. Send questions and comments to kerry-ann.hepburn@gleanerjm.com