3 Characteristics of Caribbean Economies

By Warren Cassell Jr.

Updated January 31, 2022 Reviewed by Margaret James Fact checked by Suzanne Kvilhaug

HIGHLIGHTS

  • read the article paying attention to the words in bold
  • summarize the main ideas
  • comment on the ideas expressed by the author
  • compose 3 questions for discussion

FOCUS WORDS

PREPOSITIONS

DISCUSSION AND APPLICATION QUESTIONS

LANGUAGE REVIEW

FLASHCARDS
SYNONYMS

MATCH THE WORD WITH ITS DEFINITION

MATCH THE WORD WITH ITS SYNONYMS

MATCH THE WORD WITH ITS COLLOCATIONS

COMPLETE THE SENTENCES BY FILLING IN  FOCUS WORDS

MATCH THE COLLOCATIONS FROM THE TEXT

COMPOSE MEANINGFUL SENTENCES BASED ON FOCUS WORDS AND COLLOCATIONS FROM THE TEXT

PREPOSITIONS

GRAMMAR MIX

VOCABULARY NOTES

HIGHLIGHTS:

  • read the article paying attention to the words in bold
  • summarize the main ideas
  • comment on the ideas expressed by the author
  • compose 3 questions for discussion

3 Characteristics of Caribbean Economies

By Warren Cassell Jr.

Updated January 31, 2022 Reviewed by Margaret James Fact checked by Suzanne Kvilhaug

Oftentimes the Caribbean region is referred to as a melting pot because of the high cultural, linguistic and ethnic diversity among each of its islands. As many as 43.5 million individuals reside on a total of 28 different island nations in the West Indies, each of which possesses their own unique economic characteristics.

In almost all cases, a politically stable environment can be found throughout the Caribbean. Half of the islands that make up the region, for instance, are overseas territories of either the United Kingdom, the United States, the Netherlands, or France, while the other half are sovereign nations. Furthermore, some islands are a lot more developed than others. As an example, according to the World Bank, Haiti, the Caribbean’s second-largest nation by population, is the poorest country in the entire Western Hemisphere. On the other hand, the Organization for Economic Co-operation and Development no longer considers the twin-island state of Trinidad and Tobago to be a developing country.

Although every island in the Caribbean has its own distinct economic features, there are a number of common characteristics shared among the different economies of the region. A few of these characteristics are explored below.

Key Takeaways

  • The Caribbean is defined by a series of island nations, many of which derive from a colonial lineage.
  • These small economies rely on agricultural production (e.g. sugar cane), fishing, and tourism.
  • The island nations, however, lack natural resources and are subject to natural disasters ranging from volcanoes to hurricane strikes.

Trade Openness

Caribbean economies have benefited tremendously from strong regional and international trade relationships. The small physical size of most islands has made it virtually impossible for any Caribbean nation to produce all of the goods that its citizens and firms need on its own. By way of illustration, the British Overseas Territory of Montserrat has an abundance of construction, however it is highly dependent on imports from neighboring islands and the United States in order to meet local demand for fruits and vegetables.

Trade is so vital to the survival of Caribbean economies that multiple trade blocs have been formed in the region, all of which aim to remove trade barriers, such as tariffs and quotas, among member-states. The Caribbean Community and Common Market (CARICOM) and the Organization of Eastern Caribbean States (OECS) are the two most popular trade alliances in the West Indies. Additionally, many islands have established preferential trade agreements with Canada and members of the European Union. This helps expose these small economies to wider markets.

Limited Natural Resources

As mentioned above, trade plays a very significant role in the development of Caribbean economies. Although some islands like Anguilla, Bermuda, and the Cayman Islands heavily rely on tourism and financial services to earn foreign currency, the majority of Caribbean nations make money from exporting raw materials and manufactured goods to international markets. In the long-run, this can be a problem because of the limited amount of resources that these nations possess.

Earning foreign exchange is a critical activity for every nation. A government that possesses sizeable foreign exchange reserves is able to further develop its local economies by acquiring state-of-the-art public infrastructure from abroad and thus improving its domestic social services. In an effort to increase their standard of living, Caribbean states may try to raise more foreign currency by exporting and, therefore, putting a large burden on their limited natural resources. This would lead to a complete depletion of what little resources they have.

Vulnerable to Natural Disasters

On numerous occasions, natural disasters have impeded economic progress in the Caribbean. As a result of the geographic location of the region, virtually all Caribbean economies are susceptible to the dangerous forces of nature. Between the months of June and November, hurricanes threaten these small nations. Added to that, there is always the possibility of a volcanic eruption or earthquake occurring without much warning. In other words, both businesses and governments constantly need to be prepared for unexpected events that could result in the sudden loss of much needed infrastructure, valuable capital, and irreplaceable lives.

When a Caribbean island is affected by a natural disaster, its government is forced to allocate its limited financial resources to rebuilding the economy by repairing damages. Thus, several occurrences of natural disasters will result in the inefficient use of capital and would hinder long-term economic growth. In addition, a major act of God will cause funds allocated to social services, such as healthcare and education, to be reduced and therefore decrease the country’s standard of living.

For example, in 2004, Hurricane Ivan caused more than $360 million worth of damage to property and infrastructure in Jamaica alone. Instead of servicing debt or investing that money in increasing the island’s productive capacity, the funds had to be used just to bring the island back to the state it was in pre-Hurricane Ivan.

The Bottom Line

Much like the culture of Caribbean islands, each nation’s economy is different. Some islands are much more sector diverse than others while others rely on foreign aid to keep the afloat. Nevertheless, many Caribbean nations share similar economic characteristics and challenges. Generally speaking they engage in trade liberalization, and are constrained to exporting a limited amount of natural resources in order to gain foreign exchange.

FOCUS WORDS

reside находиться, принадлежать
distinct отдельный, особый, отчетливый, определенный
subject toподвергаться, зависеть от
abundance множество, избыток
depletion истощение, опустошение
impedeпрепятствовать, мешать, затруднять, задерживать
susceptible восприимчивый, поддающийся, допускающий
allocate распределять, назначать, отчислить
capacityмощность, способность, возможность, объем
constrainedограниченный, сдержанный

PREPOSITIONS

  1. refer to  
  2. defined by
  3. derive from
  4. range from
  5. dependent on 
  6. demand for
  7. burden on
  8. allocate to
  9. subject to 
  10. vital to
  11. susceptible to 
  12. in the long-run
  13. constrained to
  14. engage in 
  15. in an effort 
FLASHCARDS
SYNONYMS
VOCABULARY TEST

MATCH THE WORD WITH ITS TRANSLATION

reside истощение, опустошение
distinct восприимчивый, поддающийся, допускающий
subject toмощность, способность, возможность, объем
abundance находиться, принадлежать
depletion ограниченный, сдержанный
impeded отдельный, особый, отчетливый, определенный
susceptible препятствовать, мешать, затруднять, задерживать
allocate подвергаться, зависеть от
capacityраспределять, назначать, отчислить
constrainedмножество, избыток

MATCH THE WORD WITH ITS DEFINITION

reside sensitive to, easily moved by, or easily touched by some influence, agency, force
distinct an extremely plentiful or over sufficient quantity or supply
subject toforced, compelled, or obliged
abundance to abide, lie, or be present habitually; exist or be inherent 
depletion to set apart for a particular purpose; assign
impeded to decrease badly; use up the supply of
susceptible the maximum amount or number that can be contained; volume; ability to perform, yield, or withstand
allocate distinguished as not being the same; separate; dissimilar
capacityto cause to slow down in movement or progress
constrainedopen or exposed to; being under the rule, control, or influence of

MATCH THE WORD WITH ITS SYNONYMS

reside vulnerable, prone, inclined, liable, exposed 
distinct apparent, distinctive, distinguishing, typical, peculiar to 
subject towealth, bunch, plentiful supply
abundance hinder, hamper, block, prevent 
depletion allot, designate, assign, appoint
impeded lie, rest, be located, be found, be situated, be present, be vested, exist, belong 
susceptible restricted, restrained, confined, stifled, inhibited
allocate limit, size, volume, range; ability, aptitude, skill, talent
capacityprone to, liable to, susceptible to, vulnerable to; dependent on, reliant on/ upon
constrainedexhaustion, reduction, drainage, consumption, shrinkage, wasting

MATCH THE WORD WITH ITS COLLOCATIONS

reside of supplies/ provisions/ resources/ strength/ power/ resistance
distinct to damage, disease, infection, poisoning
subject tolimited, restricted; mental, emotional, cognitive
abundance in the city/ the country; permanently/ temporarily
depletion time/ money/ budget
impeded to discrimination/ racism/ starvation/ poor working conditions
susceptible by the law, rules, regulations; work, admit, study, accept, pay
allocate completely, from each other, in character/ color/ style/ shape
capacityprogress, efforts, access, success, work, development, progress
constrainedof resources/ sites/ wealth

PREPOSITIONS

  1. refer __
  2. defined __
  3. derive __
  4. range __
  5. dependent __
  6. demand __
  7. burden __
  8. allocate __
  9. subject __
  10. vital __
  11. susceptible __
  12. __the long-run
  13. constrained __
  14. engage __
  15. __an effort 
VOCABULARY NOTES
reside 
находиться,
принадлежать
definition
to abide, lie, or be present habitually; exist or be inherent 

synonyms
lie, rest, be located, be found, be situated, be present, be vested, exist, belong 

collocations
reside in [London, the city, the country, that house]
reside [permanently, temporarily]
resides in the fact[power, talent, strength]
resides in him
distinct 
отдельный,
особый,
отчетливый,
определенный
definition
distinguished as not being the same; separate; dissimilar

synonyms
apparent, distinctive, distinguishing, typical, peculiar to 

collocations
are distinct from [each other, the others]
are [very, completely] distinct
distinct in [character, color, style, shape]
subject to
подвергаться,
зависеть от
definition
open or exposed to; being under the rule, control, or influence of something

synonyms
prone to, liable to, susceptible to, vulnerable to; dependent on, reliant on/ upon

collocations
have been subjected to [discrimination, racism]
subjected to [such, cruel, unnecessary] humiliation
subjected to [starvation, poor working conditions]
abundance
множество,
избыток 
definition
an extremely plentiful or over sufficient quantity or supply

synonyms
wealth, bunch, plentiful supply

collocations
of resources/ sites/ wealth
depletion 
истощение,
опустошение
definition
to decrease badly; use up the supply of

synonyms
exhaustion, reduction, drainage, consumption, shrinkage, wasting

collocations
the depletion of [supplies, provisions, resources, water, ammunition]
the depletion of [strength, power, resistance, energy]
the depletion of the [ozone layer, arctic ice]
depletion of [funds, capital, money, reserves]
impede
препятствовать,
мешать,
затруднять,
задерживать
definition
to cause to slow down in movement or progress

synonyms
hinder, hamper, block, prevent 

collocations
impede their [progress, efforts, access, success, work]
is impeding the [development, progress] of
susceptible 
восприимчивый, поддающийся, допускающий
definition
sensitive to, easily moved by, or easily touched by some influence, agency, force

synonyms
vulnerable, prone, inclined, liable, exposed 

collocations
susceptible to [damage, disease, infection, poisoning]
the [birds, patients, children] are susceptible to
[may, could, might] be susceptible (to)
allocate 
распределять,
назначать,
отчислить
definition
to set apart for a particular purpose; assign

synonyms
allot, designate, assign, appoint

collocations
time/ money/ budget
capacity
мощность,
способность,
возможность,
объем
definition
the maximum amount or number that can be contained;volume; ability to perform, yield, or withstand

synonyms
limit, size, volume, range; ability, aptitude, skill, talent

collocations
a maximum capacity of [40,000] [people, guests]
The capacity is [limited, restricted] to [40,000].
the capacity has been [extended, boosted, increased] tois
at full capacity
has the capacity to [provide, meet, produce, make]
[mental, emotional, cognitive] capacities
constrained
ограниченный, сдержанный
definition
forced, compelled, or obliged

synonyms
restricted, restrained, confined, stifled, inhibited

collocations
constrained to [work, be, admit, study, accept, pay]
constrained from [punching, speaking, hitting, approaching]
constrained by [the law, rules, regulations, rules and regulations]
constrained by [officers, her husband, friends]