Possible solutions to Economic and Social Problems
Access to Foreign Direct Investment (FDI)
Foreign Direct Investments refers to capital investments into factories, machinery and equipment by a foreign company or an individual. FDI is important for the development of Caribbean economies as they are challenged by their high debt- to-GDP ratios and increased global competition for export earnings. Attracting foreign direct investment is a way for Caribbean countries to obtain capital for growth and development.
Benefits of FDI include:
-Employment for nationals
-Increased access to global markets
-Introduction of advanced technologies and processes
-Improvement in human resource skills
Development of human resource
Investment in human resources is imperative for Caribbean economies to compete globally. Improving the value of human resources through education and training will increase the productive capacity of Caribbean countries.
Development of manufacturing sector
The manufacturing sector creates value added products which increases export earnings for Caribbean economies. Developing the manufacturing sector therefore will impact on the potential economic growth of a country.
Methods of developing the manufacturing sector:
-Encouraging Foreign Direct Investment
-Research and development