FOUN 1101 STUDENT BLOG: The Economic Consequences of the Panama Migration

The Economic Consequences of the Panama Migrations in the Caribbean

By: Sharifa Giles, Tianna Scott and Shaquan Foster 

In the early twentieth century, migration had become a significant part of Caribbean society as it provided opportunities to overcome the economic struggles faced during this time. After emancipation, Caribbean societies were ‘characterised by underemployment, poverty and unemployment and were subject to the labour demands of the plantation and the inconsistency of the sugar economy’ (Chamberlain 2008). Due to these push factors, many Caribbean people seized the opportunity to work on the Panama Canal when the Americans began to recruit people from the British West Indies in 1904. However, despite drawing away a large number of the population, the positive consequences on the Caribbean’s economy greatly outweighed the negative consequences which resulted after the migration to Panama.

Many of these migrants to Panama were primarily men who were formerly plantation workers. Consequently, there was a great reduction in labour and production. This resulted in unemployment and caused the Caribbean economies to struggle. According to Richardson (1985), the production of sugar dropped from 57,300 tonnes in 1891 in Barbados to 24,900 in 1911. Planters later had to recruit new people to replace the former workforce in order to help with economic growth. However, this prolonged the process of redeveloping the economy. The loss of production also led to an increased demand for imports. In the Bahamas, agriculture suffered tremendously to the point where everyday products like eggs, milk and fresh vegetables, which were once exports, had to be imported, which further drained the economy. However, the loss of workers eventually gave rise to modernisation, as labour was replaced by technology on the plantation to aid with harvesting, which helped to fill the void in the lack of man power.

Since migration was one of the few avenues for social mobility, many families encouraged and often depended on migration to the extent that migration became a part of culture and the family itself. The Caribbean benefitted from goods and remittances, which was money sent home from the migrants to their families. Even though the wages in Panama were not much, their value due to the exchange rate was profitable in the Caribbean. Richardson also stated that between 1906 and 1920, ₤545, 935 in remittances were brought into Barbados. This money gave blacks the ability to purchase land and set up shops which meant that they were no longer dependent on the government for finances. This caused upward social mobility among the blacks in Caribbean society, which lead to the formation of the merchant class, as many blacks could now afford to start their own businesses.

            Returning migrants also brought back new ideas which lead to the expansion of businesses. Since Panama migrations took mainly skilled labourers, there was a lack of knowledge transfer. However, due to the more advanced skills and knowledge that were acquired overseas (remi.revues.org), the Caribbean was able to gain more from the returning migrants as it became more innovative than before. As a result, many businesses, agricultural practices, architectural developments and new economic ventures were started, providing blacks with even more ways to be financially dependent as entrepreneurs. 

After thorough examination of this topic, one can say that the Panama migrations had a positive effect on the Caribbean. In spite of the Caribbean’s economy facing critical challenges, the outcome proved to be advantageous. Those skilled people who would have migrated in search of better wages, modernized the Caribbean by creating diversity in island economies through remittances which allowed small businesses to evolve, establishing a major landmark in history and paving the way for the economic development of the Caribbean.

References

Bonham, R. The Impact of Panama Money in Barbados in the Early Twentieth Century. February 24, 2016.

Chamberlain, M. "MIGRATION AND POST-COLONIALISM: THE COMMONWEALTH CARIBBEAN." Migration Citizenship Education. 2008. Accessed February 22, 2016. http://www.migrationeducation.org/51.1.html.

Dwaine, P. "Revue Européenne Des Migrations Internationales." Transnational Return Migration to the English-speaking Caribbean. April 1, 2011. Accessed March 02, 2016. http://remi.revues.org/4317

Other Sources

Accessed March 1, 2016. https://www.google.com/search?q=panama canal history&biw=1366&bih=657&tbm=isch&tbo=u&source=univ&sa=X&ved=0ahUKEwiQjrCW-p7LAhVELB4KHWNkC4gQsAQIPw#imgrc=w7PfLGDbEWNsJM:.

Johnson, A. "New In/Out Migration, Indenture, and Their Consequences." Lecture.

Look Lai, W. 1993. New In/Out Migration, Indenture, and Their Consequences: 19th and 20th Centuries (Part 1). February 18, 2016. British West Indian Society and Economy after Emancipation

"The Pros and Cons of Migration." EMBRACE. Accessed February 26, 2016. https://www.embraceni.org/migration/the-pros-and-cons-of-migration/.