ECON3051 Shervon Charles

Topics: Caribbean, Plantation, International trade Pages: 4 (1158 words) Published: April 27, 2015
Critically assess the relevance of the Plantation model in describing the relationship which currently exists between CSME countries and their global partners.  

Importantly- the Plantation economy model contends that the international economy is made of several metropolitan systems, with each system comprising of a metropole and its hinterlands. Additionally, the model goes further to highlight that, in relation to their metropolitan centres- the hinterlands and their international; relations were governed by five “Rules of the Game” all aimed at promoting mercantilism. There are five basic elements of the General Institutional Framework linking the hinterland to the metropole: the Inter caetera- laying down the “rules of the game,” the Muscovado Bias, the Navigation Provision, and the Metropolitan Exchange standard - spelling out these rules; and the Imperial Preference (the only privilege extended to the hinterland). The Caribbean economist Norman Girvan contends that the transnational corporation (TNC) is an institution that exists within the “rules of the game” of the plantation economy. He points out that the historic continuity of foreign ownership, terminal stage of production, limited domestic linkages, repatriation of profits, and persistence of the incal-culability of value flows with transfer pricing by TNCs are similar to slav e plantation–metropole flows

As it relates to the first “Rule of the Game,” referred to as Inter Caetera by Best and Levitt; there is a set of provisions outlining the sphere of influence of the metropole, while setting limits to the extent to which the hinterland could enter into relationships with countries other than the metropole. As it relates to the the second rule- the “Muscovado Bias,” Knorr highlights that the metropolis was seen as the industrial centre of the Empire providing the colonies with manufactured goods, whereas the colonies would serve the function of supplying the mother country with those raw...
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