Developmental Strategies for Caribbean Economies.

1. Investment in human capital-provision of education and training

will reduce the extent of poverty in these countries since it will
enable the poor to find jobs, earn an income and live a better
quality of life.
2. Foreign direct investment (FDI)-these are long term investment in
the country by a foreign investor either through the establishment
of s new firm or the take over of a local firm, in essence the foreign
company must have control in the given firm. An increase in the
number of firms operating in the country increases the availability
of jobs. Higher employment levels contribute to higher national
income and increases the possibility of economic growth. It is also
possible for the foreign firms to provide jobs for the skilled which
might encourage skilled persons to remain in the country thereby
reducing brain-drain.
3. Export-led growth-export is an injection into the circular flow of
income. Exports increases the earnings of domestic firms, creates
employment and results in economic growth. This reduces the
percentage of poor in the country.
4. Foreign borrowing-countries can borrow from other government
and financial institutions in order to promote development. To
qualify for loans from these organisations countries must
implement structural adjustment policies in the economy.
5. Provision of social services-the provision of these services by
government significantly reduces the pressure on the poor to be
able to afford same. This reduced burden will put more money in
the hands of the poor which can be used to offset other expenses
and improve the quality of their lives.
6. Development of the entrepreneurial class-the development of a
spirit of entrepreneurship amongst the people will encourage them
to start new businesses thereby creating more job opportunities
which leads to an increase in the national income.