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GRENADA.
Term Paper ID:25278
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Essay Subject:
Overview of Eastern Caribbean island nation's economy, politics, population, history, regional associations, agriculture, tourism, future.... More...
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10 Pages / 2250 Words
6 sources, 17 Citations,
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Paper Abstract: Overview of Eastern Caribbean island nation's economy, politics, population, history, regional associations, agriculture, tourism, future.
Paper Introduction: INTRODUCTION
The island of Grenada, in the Eastern Caribbean, is part of the West Indies, a chain of islands formed by the peaks of the Caribbean Andes. The main island is 21 miles long and 12 miles wide at its widest point--about twice the size of Washington, D.C. The nation of Grenada also includes some inhabited islands from the Grenadines chain, the larger of which are Carriacou and Petit Martinique. Both Carriacou and Petit Martinique have colonial histories that parallel Grenada's.
As the twenty-first century nears, Grenada struggles to stabilize its economy. Grenada is mainly rural; farming techniques are not much different from those employed 100 years ago. And when prices decline for one of its few exports, the overall earnings of Grenada plummet. Like many small island
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Grenadahas enjoyed a lengthy period of peace, but political unrest could undermineits economic objectives. Plantation machinery and techniques were improvedsignificantly" (Thomas 35). For example, a recent policy direction was privatization:"The government of Grenada has formally announced a privatization policy,sold several hotels, and returned the possession of agricultural lands tosmall farmers under long-term leases" (Young 199). Like manysmall island nations, Grenada is economically dependent on the changingforces of international trade. The first ten yearsafter independence were characterized by political instability. Under Eric Gairy's rule, this group wasreplaced by his own political henchmen" (Thomas 238-239). Calypso singers at such activitiesimprovise rhyming commentaries on love, politics, personalities, andcontroversial current events. There is little of the oppressive, desperate poverty evident insome other Caribbean islands. Under Grenada's constitution, true power rests with theprime minister, who serves a five-year term, but Parliament can muster avote of no confidence for an administration, calling for elections sooner.Unfortunately, a change in administration does not necessarily result in achange in economic fortunes. The island was discovered by Christopher Columbus in1498: "Since the days of Columbus, the region has been colonised by theEuropean powers, and, more recently, has come under the domination and swayof the United States" (Thomas 3). "For WRB, Business, Politics, Create a Strange Mix." Tampa Bay Business Journal (August 8, 1997): 18(3).Davey, Kevin. London: Latin AmericaBureau, 1988.Walzer, Robert. Such stability is not yet assured. In 1783, Grenada became aBritish territory. On October 25, 1983, President RonaldReagan ordered almost 2, U.S. government's aid and expertise to solve Grenada'seconomic problems, but the flow of money slowed down: "The Americans came,conquered, skimmed the feasibility studies and decided not to settle. Maurice Bishop's People's Revolutionary Government (PRG) devised aneconomic program which objectives were to build an international airport tosupport tourism, diversify the island's economy, establish social programs,and diversify international trade and finance. Grenada is mainly rural; farming techniques are not muchdifferent from those employed 1 years ago. The Poor and the Powerless. Many former slaves emigrated to Trinidad, which offered better workingconditions, or settled in the interior of Grenada and became landowners.With no slaves to work the plantations, sugarcane profits declineddrastically. MostGrenadians still live and work in the agricultural sector: "people wholive north of the capital complain that tourism as a whole is a 'St.Georges thing'" (Davey 12). Becausethey were permitted to sing, the workers communicated through personalizedsongs, using a slang that their masters could not understand. the answer is dependent on thewill of the people. Economics of Social Issues, 18th edition. Calypsocontinues to function as a form of underground political protest inGrenada: "The calypsonians are Grenada's surrogate, if powerless, left.They refuse to bow to political expediency, they are understood by ordinarypeople and they make important connections between local issues and globalproblems" (Davey 12). Tourism is Grenada's only growth industry. Army engineers supervised the rebuilding of roads,schools, water systems, and telephone and power facilities. Most of Grenada's tourist accommodations are small inns with 1 to 2 rooms. The nation of Grenada also includessome inhabited islands from the Grenadines chain, the larger of which areCarriacou and Petit Martinique. Signs of severe poverty, such as shantytownsare scarce, but there exist many poorer villages, where people live in two-room cottages with cardboard walls. The PRG sought economic andtechnical assistance from Cuba and the Soviet Union. Without significant levels of financial andtechnical assistance from developed countries like the United States,Grenada has been unable to break out of the poverty trap. Grenadians have much to protest in terms of local politics. INTRODUCTION The island of Grenada, in the Eastern Caribbean, is part of the WestIndies, a chain of islands formed by the peaks of the Caribbean Andes. Grenada's recent leaders have largely failed to put the country onthe road to progress. Their constitution allows them todo so peacefully. ANALYSIS More than 9 percent of Grenada's residents are black or of mixedrace--the descendants of African slaves who worked the island's sugarcaneplantations during the 18th century. More than 9 percent of its gross domestic product (GDP) isderived from traded goods and services (Thomas 237). In 1877, Grenada officially became a British colony, and remainedunder British control until its independence in 1974. Gairy and his supporters wereconstantly at odds with a Socialist political party known as the New JewelMovement, formed in 1973 by Maurice Bishop. Grenada can only make significant economic progress when it achievesgenuine political stability. Works CitedBuettner, Michael. "Privatization Around the World." In Steve Hanke (Ed.) Prospects for Privatization, 1 9-2 6. But the government'semphasis on mid- to upscale tourism and world class hotels will have anegative economic impact on many of Grenada's small innkeepers. Calypso is a tradition whose origins are notdocumented, but the most frequently told story is that calypso began withWest Indian slaves who were forbidden to talk among themselves. Thefinancial affections of USAID also proved fickle and have since transferredto eastern Europe" (Davey 12). When Grenadians have been severely disappointed withtheir leadership in the past, they have exhibited a willingness tooverthrow governments by political coup. In 16 9, the British tried to colonizeGrenada but were held off by the Carib Indians, the native inhabitants ofthe Caribbean region. Scoon became a one-mangovernment, severing diplomatic ties with the Soviet Union and Libya andallowing the Cubans to retain only one diplomat on the island. Both countries imported large numbers of Africanslaves to work the sugarcane plantations. The Cubans sent moneyand technicians to build an international airport at Point Salines and thenstored a large quantity of military equipment there: "The PRG seemed to begrowing increasingly aware of the inherent contradiction in a progressivegovernment supporting tourism, especially given the industry's historicalassociations in the region" (Thomas 241). Deep divisions grew within Bishop's party, and in 1983 Deputy PrimeMinister Bernard Coard, apparently favoring ties with the Soviet Union, ledanother coup in which Bishop was assassinated along with other governmentleaders. All have promised democracy but theiradministrations subsequently deteriorated into autocracy: "Thisdevelopment occurred because the petty-bourgeoisie (along with the otherintermediate strata from which the mass movement's leaders were recruited)was essentially a colonial creation with limited objectives" (Thomas 72).The objective of Grenada's leaders has been to exclude the masses.Democracy and independence have merely created a shift in power fromcolonial plantations and masters to political parties and party leaders. Processing, however, was not inthe hands of the peasants, and it has been estimated that as much as 9 cents in every dollar was assigned to processing their produce" (Thomas238). It sent Grenada$3.4 million in disaster relief and $5 million in long-term economic aid.Tons of American construction supplies and equipment were flown to theisland, where U.S. Fishing--chiefly bynets, trolling, and drifting with hand lines--is an important source of thecountry's food supply. Because plantation land was divided among the people after theBritish abolished slavery, almost three-fourths of Grenada's families todayare landowners. CONCLUSION In answer to the question, Will democracy or benevolent dictatorshipprevail in Grenada in the new millenium? Now the hope is that businesses from theUnited states will build factories and invest in industries in order toboost the sagging economy. The Grenada public believes that Mitchell andhis government are the swindlers: "The administration was stung repeatedlyin last year's Calypso contest by the sharply satirical lyrics offered byseveral performers . "Ten Years After: (U.S. This policy directionhas since been thwarted by Prime Minister Keith Mitchell. soldiers onto the island, accompanied byseveral hundred troops from neighboring Caribbean islands. Unable to control the means of their production, the peasants ofGrenada appear to be locked into an unending cycle of poverty. In 1979, Gairy's government was overthrown by the New Jewel Movement. And when prices decline forone of its few exports, the overall earnings of Grenada plummet. The UnitedStates also helped Grenada complete its international airport. . . With agriculture and fishing resources so rich, few people gohungry. His opponents claimed thathe went into political office bankrupt, owing money to many, but withinthree years he had enough to buy several buildings: "Historically, theplantocracy dominated the three statutory agricultural export-marketingorganisations which had the exclusive right to purchase the entire nutmeg,cocoa, and banana crops . Boston: Irwin McGraw-Hill, 1998.Thomas, Clive. Manyexpected the U.S. In 1994, Grenada had only 1,44 rooms total, much fewer than itsCaribbean neighbor islands. Grenada's economic system perpetuatesthis poverty: "the peasantry produced two-thirds of the spices, half thecocoa, and about a third of the bananas. After Grenadasought bids to privatize its power company, Grenada Electricity ServiceLtd, and awarded a contract to a foreign firm, Mitchell promptly placed theproject in limbo for three years, then accused the firm of perpetrating aswindle against the country. The farms they own average about 2 acres or smaller insize. Invasion of Grenada, 1983)." NewStatesman and Society (October 15, 1993): 12(2).Sharp, Ansel, Register, Charles, and Grimes, Paul. Order wasrestored, and a nonpolitical interim administration, led by Governor-General Sir Paul Scoon oversaw island affairs. Itsleaders have yet to put together a successful program of economic reform.Policies change, based more on political expediency than on sound economicprinciples. Relatively fewreturn, creating a significant "brain drain" that exacerbates the economicsituation. White and East Indian minorities makeup the rest of the population: "With rare exceptions, the dominant classeshave always, throughout the [Caribbean] region's recorded history,comprised a small fraction of the population and the powerless the vastmajority" (Thomas 3). Although tourism declinedduring the recent political unrest, it has been revitalized since thegovernment was stabilized. Grenada's leaders tend to preach reform ascampaign promises, then revert to business as usual once elected. A master plan calls for significantlyexpanding the number of large hotels on the island, several of which havebeen built during the 199 s. Tourismhas, however, made Grenada more dependent on foreign countries,particularly the United States: "[tourism] has also enabled the USgovernment and media to destabilise particular Caribbean countries throughadverse publicity and hostile foreign policy statements" (Thomas 164).Because most of Grenada's population is rural, the economic impacts oftourism do not filter down to a significant number of people. . Most of the arableland--about 35, acres-- is used to grow nutmeg, cocoa, and bananas.These three crops account for about 9 percent of Grenada's exports.Besides spices and cocoa, Grenadian products include coconuts, limes, andarrowroot; some sugarcane and cotton are still grown. "Grenada Turns to Tourism to Aid Economy." Hotel & MotelManagement (March 7, 1994): 4(2).Young, Peter. Then prime minister Nicholas Braithwaite'spolicies focused on making tourism more essential to the island's economy,"Whereas Grenada has always focused on agriculture, we are now anxious toestablish a vibrant tourism industry" (Walzer 4). Slave uprisings, provoked by the French who remained onthe island plagued the government until 1834, when the British Parliamentpassed the Emancipation Act, which abolished slavery in the British empire. As the twenty-first century nears, Grenada struggles to stabilize itseconomy. Alarmed by these events, the Organization of Eastern Caribbean States--an organization of five nations formed in 1981--requested that the UnitedStates try to resolve the situation. accused in song of corruption, cronyism, nepotismand mismanagement" (Buettner 18). Georges" (Davey 12). Thearea's population is only about 11 , and its total area only about 133square miles. Grenada's economy is dominated by agriculture. At onetime, about 9 percent of Grenada's hotel rooms were located in islanders'homes, and Grenadians who want to maintain this additional income source donot favor the building of new hotels. Both Carriacou and Petit Martinique havecolonial histories that parallel Grenada's. Grenada's small size has hampered its economic development. During the next 15 years, possession of Grenada shifted betweenFrance and Great Britain. First world countries must bewilling to support the activities of third world countries with financialand technical aid. New York: Academy of Political Science, 1987.----------------------- 1 Grenada's bountiful spices and sugarcane made it a prize for earlyEuropean explorers. As a means of boosting tourism, the Grenadian government largelyencourages islanders' diverse cultural events such as Carnival, thenation's most colorful holiday. Grenada's economic problems have beenexacerbated by political leaders who have never been willing to give powerto the masses. For a third world country such as Grenada to escape the poverty trapit must have the full engagement of a democratic government and thecooperation of first world countries, like the United States. As expected, the new international airport hasincreased tourism, which has added jobs for the island's workers. . About 1 civilians were killed during the uprising. Despite his early support for the workers, Gairy'sadministration was not a triumph of democracy. The mostimportant decision for the third world country is how much influence itwill have in economic decision making: "In general, economic developmenttends to reach its potential when private parties, rather than government,are allowed to own economic resources and decide the use for theseresources" (Sharp, Register, and Grimes 21). The island's first primeminister after independence was Eric Gairy, the head of Grenada's UnitedLabour party. Themain island is 21 miles long and 12 miles wide at its widest point--abouttwice the size of Washington, D.C. Educational andemployment opportunities are so limited that the most talented of theisland's young people often go abroad to study or get jobs. Sir PaulScoon, a Grenadian knighted by Britain, represented the queen in thelargely ceremonial post of governor-general. The MongooseGang, a secret police unit, bullied Gairy's critics and politicalopponents, many of who were jailed. The British tried unsuccessfully to bring in large numbers ofIndian and Malayan indentured laborers, but were forced to develop means ofmechanizing production: "In that abolition forced the planters to writeoff the bulk of their capital (slaves), it is hardly surprising that italso heralded the first systematic attempts to use the productive factorsmore effectively. After the subsequent withdrawal of military personnel in 1985, thefinancial presence of the United States remained strong. Because world prices for Grenada's main exportshave plummeted, the island has experienced severe economic decline:"Unemployment has leapt to 3 percent, services have deteriorated andislanders now advise each other to go direct to the morgue rather thanwaste their time at the once-cherished hospital in St. Scoon alsoappointed a nine-member advisory council made up of Grenadian citizens,with Nicholas Braithwaite as chairman, to assist him until new generalelections were held in 1984, when Herbert Blaize was elected primeminister.
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