 Many developing countries face the issue of underdevelopment and enormous difficulties in their efforts to industrialize. This speaks to the existence of a structural gap between developed and developing economies. The key for the convergence of these economies is more insight into the evolution of technology and the diffusion of the conditions of effective technological catch up.
Sir Arthur Lewis in his proposals for the development of Caribbean economies believed that to remove this gap between countries, developing economies should adopt a policy of industrialisation by invitation; wooing and fawning to attract expertise and technology from developed economies and attain their knowledge “tricks of the trade.”
One of the strategies under industrialization by invitation was the development of industrial policy. Itoh in 1988 defined industrial policy as a policy that attempts to achieve the national economic and non economic goals of a country. This is done via policies designed to intervene in the allocation of resources among industries or sectors of the country, or in the organization of an industry or sector. These policies are often pursued due to the existence of market failure in the national or international factor and product markets.
The late Professor Dennis Pantin identified Small Island Developing States (SIDS) of the Caribbean as having commonalities; heavy dependence on natural resources, high levels of debt and vulnerability to natural disasters, which made it difficult for them to compete internationally. In his attempts to provide solid recommendations, he married policies on technology and industrialization with the tenets of sustainable development. Pantin stressed the importance of effectively maximizing the benefits of natural resources (renewable and nonrenewable) and at the same time using technological capabilities. Following the recommendation of Sir Arthur, Pantin proposed two strategies for industrialization of the Caribbean region; targeting of external markets and products which included the identifying and assisting of existing industries and new industries, and to craft appropriate national, macro policies to steer foreign and local investors towards these targeted areas.
In 1983, Pantin highlighted the need for utilization of an indigenous technological capability in the fruit and vegetable processing industry in the Caribbean and in 1987 further went on to develop a framework that included strategies for acquiring technology. His idea of technological advancements was not limited to the optimal utilization of primary resources or industrial policies, but also included a people oriented aspect; the development of human capital which is vital to economic development objectives.
Whilst many Caribbean countries have incorporated attempts to develop techno-industrial policies that highlight that economic transition to the development of technological and scientific capabilities of the Caribbean, many barriers still exist. In addition to the difficulties of implementing theoretical driven recommendations, there also exist hurdles which notably includes economic (debt), environmental and social challenges. One of the potential obstacles Pantin identified in attaining this capability was the appraisal of political economic conditions that can limit an embrace of a technologically based industrial strategy for the region’s economic transformation. Dennis Pantin was also profoundly convinced that only through regional integration could the Caribbean experience true economic development.
Professor Dennis Pantin’s ideas will be the focus for discussion at COTE 2014 with the theme 'Addressing Contemporary Local and Regional Challenges for Sustainable Development'. This conference is hosted by the Department of Economics, UWI, St. Augustine.
Keron Victor has an MSc in Economics and is a Teaching Assistant with the Department of Economics, UWI, St. Augustine. His research interests are Social Economics, Urbanisation and Crime. |
