There are seven pillars upon which capital and growth rests and thrives. Virgin Islands capital from preceding narratives is the land, human resources, technology, learning, and finance that drives the economy and national prosperity.
However, capital rests upon seven well-defined foundations. These fundamental components of society are wider than the capital that drives economics. These are geography, culture community, markets, education, banking, and governance. These are the foundations of society, and decide the scope, depth, and effectiveness of the capital and capital mix the Virgin Islands possesses.
Start with geography, which for capital purposes is about factor endowments. What human and natural resources sit within the BVI’s land borders? What is the BVI best at producing: whether it is specific products in tourism, finance and agriculture?
Culture is the way of life of the population. Culture is sibling to history. What are the social behaviors of the community and how do these behaviors drive prosperity. On the other hand, are there limitations to economic growth based on the country’s social behavior and culture?
Then community is the basis of everything. The objective of capital is to drive the prosperity and welfare of the community, albeit in the capitalist system the interests of the owners of capital appears to prevail over that honorable idea. Greater fairness may require limiting the power of the capitalist or owner of capital.
Markets decide production. The place of buyers and sellers is both visible and invisible. The market is ubiquitous and includes anything that brings consumers and producers together whether in the public or private sector. It could be a physical or invisible space and borderless.
Learning offers the community the education and skills that bring the vision of the economy to desired outcome. Learning drives the national purpose and vision. Learning is foundational for capital and socio-economic growth.
Banking is the subtle regulator and manager of the economy and money supply. It is no accident that banks are the most powerful economic institution. Every day, we line up in frustration to transact some banking service. Whether it is withdrawing cash to live, obtaining a mortgage or loan, or asking for a credit facility, the banks silently dominate our lives.
Finally, government is the arbiter of all the preceding components of society. Government has the power to control all aspects of the economy and society by force of violence subject to the Rule of Law. Government is the final arbiter of power.
However, to do so Government must truly control the tools of power: the enforcement mechanisms: law enforcement, military, legislation, regulation, and administration.
Understanding the foundations and fundamentals of BVI society cannot be guesswork, it is effort that enables managers and workers adopt the appropriate approach to drive up wealth and prosperity for the greater good.
Dickson Igwe
Dickson Igwe is an education official in the Virgin Islands. He is also a national sea safety instructor. He writes a national column across media and has authored a story book on the Caribbean: ‘The Adventures of a West Indian Villager’. Dickson is focused on economics articles, and he believes economics holds the answer to the full economic and social development of the Caribbean. He is of both West African and Caribbean heritage. Dickson is married with one son.
