Industrialization By Invitation

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Did Lewis' theory of "industrialization by invitation" (IBI) lead to some of the social, economic and financial problems being experienced in the region? Discuss your response. ‘The Lewis Theory’ otherwise known as ‘Industrialization by Invitation’ has long been seen as the model upon which many Caribbean states have built their economies since gaining independence. It is often criticized as the reason for the current social, economic, and financial problems that Caribbean territories are currently facing. Some theorists beg to differ however and say that this is just a simple misconception of what Lewis was actually ‘trying to say’. But before we quickly jump on either bandwagon it is imperative that we seek the necessary information by dissecting this ‘Industrialization by Invitation’ concept from both schools of thought. It is also of great importance that we get a proper understanding of what is meant by social, economic, and financial problems. As quoted from the website http://www.delmar.edu/ “social problems are societal induced conditions that harm any segment of the population.” One must also be cognisant of the fact that social problems are normally recognised as those actions that deviate from the norms and values that society have constructed and can sometimes be based on the context in which these acts are portrayed. Many will be confused as to what is the major difference between economic and financial problems. Thankfully to http://rru.worldbank.org we can now understand that “a financial analysis consists in comparing revenue and expenses (investment, maintenance and operation costs) recorded by the concerned economic agents in each project alternative (if relevant) and in working out the corresponding financial return ratios” while an economic analysis “aims at identifying and comparing economic and social
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