2c.+Industrialization+and+the+growth+of+the+oil+and+bauxite+industries

__**INDUSTRIALIZATION**__

By the early 20th century, agriculture was not providing enough money or jobs for the growing population in the Caribbean. Land was limited and it could only produce so many crops which could only be sold for so much money. As a result, people started thinking about developing the manufacturing, oil and mining industries in the region. It was considered more productive at the time to use land to build factories than to plant more crops.

However, there were several barriers to industrialization including; limited capital, lack of fuel, limited knowledge of industry, few workers with technical skills, few entrepreneurs. This meant that countries in the region had to depend on foreign investors to provide money to start these industries. Before investors would decide to spend their money on building these industries Caribbean countries had to promise the investors certain incentives such as tax breaks, protection from foreign competition and the promise that they woulod not have to pay taxes on raw materials and equipment.

Countries such as Jamaica and Trinidad and Tobago, tripled their manufacturing output between the 1950's and early 1960s. This was partly because these countries along with Guyana had natural resources.
 * Oil in Trinidad and Tobago
 * Bauxite in Jamaica and Guyana

Jamaica and Trinidad and Tobago also developed what were called 'screwdriver industries', which were industries based on automobiles, radios, televisions, aluminum, steel, rubber and plastics. They were called screwdriver industries because in these factories, the workers only put together parts to make the finished product.

By 1967, petroleum and its by products were a major export from Trinidad and Tobago and bauxite and alumina was from Jamaica and Guyana.

__**Development of the Oil industry in Trinidad and Tobago**__

There were many factors which encouraged the growth of the oil industry in Trinidad and Tobago. They are as follows;
 * **The growth in world demand for oil** - This helped grow the oil industry due to major developments in motor vehicle, aircraft and ship technology by World War two(1939) which caused an increase in the need for oil products. T and T's oil production and export levels raised higher year after year, in fact, Trinidad supplied the British and Allied Forces with much of the fuel needed for WWII. By the 1960s, the island was supplying over 20 million barrels of oil each year. This pushed oil exports to the position of number 1 revenue earner for T and T.


 * **The capital pumped into the industry** - Interested people both in Trinidad and abroad saw the vast potential of the oil industry. The government was also very interested and involved in the industry. There was also American interest in the industry.


 * **American interest in the oil industry -** There were several American companies that became involved in the production of oil. These companies put huge sums of money in developing the industry by laying pipelines and setting up oil rigs and pumping the oil for production as well as providing experts in oil production.


 * **Seemingly never ending/inexhaustible supply of oil in Trinidad** - The first oil had been found in Aripero in 1866. The commercial exploitation started in the early 20th century, however the industry expanded slowly during this time as demand for oil was low. The production of oil on a large scale grew after World War 1 and by the World war 2 oil was the leading export in Trinidad.


 * **The available labour for oil operations** - The labourers in the oil industry were paid higher than those in other industries on the island. There were various jobs to be found in the oil industry for both skilled and unskilled workers.

__**Social changes brought about by the growth of the oil industry**__

> **Increased incomes for those working in the industry** - Trinidadians worked at all levels in the industry but most were found in the lower job categories. Yet even in these groups the income earned was higher than in other industries such as the sugar industry. The influx (coming in) of the American dollar helped raise the standard of living.


 * **Standards of living rose** - The country's oil exports became very large by the 1960s and as a result the income earned helped to push economic development on the island. Trinidad was one the richest islands in the Caribbean by the 1960s and this was due mainly to the successful oil industry.


 * **Infrastructure improved** - The social infrastructure improved in the island. There were better houses for the population. Several houses and roads were built across the island. The improvement in roadways and shipping was essential for the use of the industry but the whole country benefited.


 * **Trinidad became somewhat Americanized** - The island had a level of Americanization and this was the direct result of the presence of Americans in the oil industry. These American interests to some extent infused the island with their culture.

__**Development of the Bauxite Industry**__

__**Guyana**__ Bauxite was first found in Guyana in 1910. In 1916, the first bauxite company was set up. called the Demerara Bauxite Company. In 1917 bauxite was exported from Guyana for the first time and soon after another company called the Suriname Bauxite Company was set up. The depression of 1929 in the US however caused a slump in the Bauxite Industry in Guyana.

__**Jamaica**__ Bauxite was first found in Jamaica in 1869 and first mined in 1890. There was a huge demand after 1939 because of World War II because bauxite was used to make weapons and vehicles. It was mined by 3 companies but the largest one was the US company ALCOA.

__**Tourism**__

Tourism became a factor in the economic development of the West Indies mainly after World War II with the growing wealth of North America and Europe. Before this, the tourism industry was not seen as a money earner for the Caribbean. Visitors came to Jamaica and several other islands on the ships that also carried bananas to North America and England, as tourists as early as 1890s. These early tourists often came to recover from illnesses as the tropical climate was seen as suitable for such recovery.

The increased amount of transportation to the islands helped the tourism industry to grow. The steamships that took produce such as bananas abroad were also built to accommodate passengers who wished to travel to the islands as tourists.

The growth and development of transportation saw larger ships that could carry more passengers. The development of passenger airplanes also helped as people began to come to the British West Indies on charter flights. By the late 1960s national airlines were developing in the region and helped increase the flow of visitors to the islands.

The building of accommodation and later places of entertainment was another important development in the tourism industry. In the 1890s the first tourists had to be satisfied with the few inns available in the islands. However by the 1920s, a few hotels had been built. The colonial government also gave tax incentives to hotel builders. In Jamaica for example the Myrtle Bank Hotel in downtown Kingston was one of the best places to stay.

Between the 1940s and the 1970s other infrastructure was put in place which helped boost their industry. These included better local transportation such as the tramcar. There were several places of entertainment built.

The Caribbean governments after the 1960's began to advertise their countries as tourist destinations.However there were some problems in the beginning of the development of the tourist industry in the Caribbean as the tourists were seen as the new colonial masters and blacks working in the tourist industry sometimes experienced prejudice as tourists were mostly white.

There fore when the governments had to advertise tourism they had to be aware of these problems. Many governments provided funds from their budgets to pay for advertisements in foreign newspapers and magazines. Hotels also placed ads in newspapers and magazines.

The sun, sea and sand concept began to be a major attraction for tourists by the early 1970s. The Caribbean was advertised as an area where there was never ending paradise with the sun, sea and sand readily available to tourists. The focus was on the climate of the islands and this was often a good selling point as many visitors came from much colder climates.

The tourism industry provided significant revenue for the islands by the 1980s. It was among the top earners of revenue for islands such as Jamaica, Barbados and Antigua for many years. The industry continued to provide thousands of jobs and there are many spin off areas that benefited tremendously from the industry.