Caribbean History From Colonialism to Independence AM217 David Lambert Lecture: The Caribbean and the making of the modern world Tuesday 26th April, 11am-12pm The neo-liberal present • Today, Caribbean states are focused on attracting foreign investors to generate new exports • Origins in debt crisis of 1980s, which left many Caribbean governments insolvent • They approached IMF and World Bank for financial bailouts • In exchange they had to agree to fiscal conservatism, privatisation, currency devaluation, open markets and policies to promote foreign investment and non-traditional exports (collectively known as ‘neo-liberalism’) The Caribbean and the making of the modern world 1. 2. 3. 4. Defining and unpacking globalisation Historical parallels Historical continuities Previous rounds of globalisation and their legacies Defining globalisation • The increasing interconnectedness of many parts of the world over the last 35 years or so • Increases in the scale, size and speed of transnational flows • Globalisation is not the same as cultural convergence • Uneven time-space compression • Advocates, critics and sceptics • Is globalisation really such a new process? Unpacking (contemporary) globalisation 1. 2. 3. 4. 5. 6. Economic Technological Political Cultural Ideological Environmental Historical globalisation What features of the history of the Caribbean from 1492 to the mid 20th century relate to these aspects of globalisation? 1. 2. 3. 4. 5. 6. Economic Technological Political Cultural Ideological Environmental Globalisation and Caribbean cultures During centuries of colonial rule, Caribbean culture emerged as a unique and distinctive result of the myriad contributions of a wide range of African and Asian traditions, West Indian adaptations, and many foreign influences introduced by Europeans or picked up during circular migration for work in other parts of the hemisphere and in Europe… R. Potter et al., The Contemporary Caribbean, p. 388. Historical globalisation What features of the history of the Caribbean from 1492 to the mid 20th century relate to these aspects of globalisation? 1. 2. 3. 4. 5. 6. Economic Technological Political Cultural Ideological Environmental Globalisation case study #1: Garment industry • Very globalised industry • In 1980s, American TNCs established factories in Caribbean • Leading brands (e.g. Tommy Hilfiger) and retail companies (e.g. Wal-Mart) • Export-processing zones Export-processing zones Export-processing zones Kingston Export-processing zones Caribbean EPZs • Good transport links • Low-wage, often female labour • “Extra-territorial enclaves” – TNCs pay little or no taxes or duties • Have declined since creation of NAFTA trading bloc in 1994 • TNCs have relocated for cheaper labour (e.g. Mexico) Export-processing zones: “Extra-territorial enclaves” Caribbean EPZs • Good transport links • Low-wage, often female labour • “Extra-territorial enclaves” – TNCs pay little or no taxes or duties • Have declined since creation of NAFTA trading bloc in 1994 • TNCs have relocated for cheaper labour (e.g. Mexico) 18th century Caribbean 18th century Jamaica Sugar plantations: growing sugar cane Sugar plantations: making the sugar Sugar plantations: African slaves Triangular trade, 1650-1850 Triangular trade: early globalisation? 19th century steamship lines 20th century airlines Caribbean banana industry Overview of the Caribbean banana industry • The industry first developed in Jamaica in the 1860s and 1870s, supplying the USA. • For most of the nineteenth century, it was necessary for Europeans to go to the Caribbean if they wanted to eat tropical fruit. • Late nineteenth-century developments in refrigeration and canning enabled the mass consumption of bananas for the first time. • From the start, there was competition between US and British interests in Central America and the Caribbean. • The Windward Islands banana industry developed in the context of, and relied on, a protected British market. • Today, more than 5 billion bananas are sold every year in the UK. The development of British Caribbean banana industry • In the early twentieth century, the British government became concerned about US influence. • Britain sought to tackle both issues by encouraging the development of a commercial banana industry in its Windward Island colonies in the 1920s, ‘30s and ‘40s. • This occurred through preferential tariffs and licences that limited the importation of ‘dollar bananas’ to Britain, especially from Latin America. • This was also designed to help alleviate the dire social and economic situation in the British West Indies (there was social unrest across the region in the 1930s). Map of the Caribbean The Windward Islands banana industry • The development of the banana industry in the British Caribbean was centred on the Windward Islands of Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines. • Bananas were known locally as ‘green gold’ because they put a weekly wage into the pockets of the Caribbean farmer, bringing some spending power to the poorest communities: – 70% of population of Dominica, Grenada, St. Vincent and the Grenadines live off the banana industry (directly and indirectly) – In St. Lucia, more than 60,000 people (1/3 of total) depend on bananas for employment Recent problems in the Windward Islands banana industry The number of farmers now producing bananas for export has declined from 24,100 in 1993, to 10,200 in 2000. 1. The nature of banana production in the Caribbean. 2. The marketing strategies of the large companies who control the banana trade at the wholesale and retail level. 3. Hurricanes (especially affecting Dominica and St. Lucia). Compensation is not comprehensive. 4. The structure of international trading arrangements. Chronology of the ‘banana wars’ 1992 – The creation of the Single European Market produced the world’s largest banana market (35-40%). There was need to harmonise European import regulations. 1996 – USA and Latin American producers lodged a complaint with World Trade Organisation. 1997 – WTO ruled in their favour. 1998-1999 – dispute dragged on leading to ‘banana wars’, in which US threatened to 100% import duties on sensitive EU exports. Chronology of the ‘banana wars’ 2001 – immediate dispute finally settled when EU agreed to phase out all tariffs and quotas. Heralded as victory for the Bush administration and ‘free trade’. 2008 – issue drags on. The tariff level on nonACP (African-Caribbean-Pacific) bananas into Europe remains a sticking point in WTO talks. 2009 – EU agreed to reduce tariffs on dollar bananas within 8 years at World Trade Organisation’s Doha Round. Caribbean banana industry