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. ( What does this cause? ) 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 would not have to pay taxes on raw materials and equipment.
Countries such as Jamaica and Trinidad and Tobago, tripled their manufacturing output between the 1950s 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 II (1939- 1945) which caused an increase in the need for oil products. Trinidad and Tobago’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 ( Not accurate, but a percentage) . 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 Trinidad and Tobago. 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 Airpero 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 World War II, oil was the leading export in Trinidad.
The available labor for oil operations- The laborer’s 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 housing projects 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
