Caribbean Political Economy

Reflections on the Cariforum-EC EPA

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by Clive Thomas

This paper offers basically from a CARICOM perspective, a strategic appraisal of the external trade policy changes encapsulated in the CARIFORUM-EC, Economic Partnership Agreement (EPA). This has been recognised as the first “full and comprehensive” EPA among the six that are being negotiated by the European Commission, (EC) and the African-Caribbean-Pacific (ACP) group of countries. At this point, the EPA is both a legal agreement and an instrument designed to promote specified development objectives. Ultimately, its strengths, weaknesses, as well as the opportunities it will create and the threats it will face, will unfold during its implementation. How this is actualized will be a principal determinant of its success in attaining those objectives.

The first Section contrasts key forecasted long-run benefits of the EPA with front-loaded implementation costs that are already occurring in the Region. Section II assesses why this is the case. Section III comments on the EU assistance commitments in the Agreement. Section IV assesses the consultations process in CARICOM during the negotiations and draws attention to some important issues of economic governance. The final Section (V) considers a number of contextual and related issues important for the future of the Region under the EPA.

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Uribe in the Mirror

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by Atilio Borón

The UNASUR summit in Bariloche, Argentina will have to face two grave problems weighing heavily on Latin America: the military coup in Honduras and the militarization of the region as a result of the installation of not one but seven U.S. military bases in Colombia…

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The Afghanistanisation of Colombia?

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 By Mike James

From the Catholic Standard, August 21, 2009

Right across the South American Continent concerns are being openly expressed at the draft us-bases-in-colombiaagreement signed by the US and Colombian governments last week in Washington to permit access of US military personnel, contractors and military equipment to at least 7 Colombian Military bases scattered right across the Andean country.

Brazilian President Lula da Silva says that the idea of US bases in Colombia “does not please him”. Chilean President Michelle Bachelet has also expressed serious concern over the plans. The group of South American countries UNASUR which include Guyana and Suriname called an urgent meeting of heads of state in Argentina next week (August 28) to discuss the issue.

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Hugo Chavez and the Private Media

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by Salim Lamrani

Salim Lamrani is a French Researcher Denis-Diderot University in París, specialising in Cuba-U.S. relations.

Salim Lamrani is a French Researcher Denis-Diderot University in París, specialising in Cuba-U.S. relations.

On August 2, 2009, Reporters Without Borders (RWB) issued a statement denouncing the closure of “thirty four broadcast media at the government’s behest” in Venezuela. The Paris-based organization “vigorously condemns the massive closure of broadcast media” and asks: “Is it still possible to publicly express any criticism at all of President Hugo Chavez’s ‘Bolivarian’ government? This massive closure of mainly opposition media is dangerous for the future of democratic debate in Venezuela and is motivated by the government’s desire to silence dissent. It will only exacerbate social divisions.” (1)

RWB makes reference to the decision taken by the Venezuelan National Telecommunications Commission (Conatel) on August 1, 2009 to withdraw the broadcast licenses of thirty-four radio and television stations. According to RWB, this decision is motivated only by the fact that these media outlets criticized the government of Hugo Chavez. In short, it was a political act intended to silence the opposition press. The vast majority of the Western media has repeated this interpretation. (2)

However this is not the situation and RWB and the media multinationals have carefully concealed the truth in order to mislead public opinion and present the most democratic government in Latin America (Hugo Chavez has faced 15 electoral processes since coming to power in 1998 and has emerged victorious in fourteen of these elections, all praised by the international community for their transparency) as a regime which seriously violates freedom of expression.

Indeed, in similar circumstances any country in the world would have made the same decision Conatel did. Several stations deliberately ignored a summons from the Commission designed to determine the status of their licenses and bring them up to date. After an investigation, Conatel discovered numerous irregularities, such as deceased licensees whose licenses were being used by third persons, non-renewal of the required administrative procedures, or simply the lack of authorization to broadcast. Venezuelan law, like that in the rest of the world, stipulates that a media outlet that fails to renew its concession within a specified time period or that broadcasts without authorization will lose its transmission frequency, which will then revert back to the public domain. Thus, thirty-four stations that were broadcasting illegally lost their licenses. (3)

In fact, the decision by Conatel, far from restricting freedom of expression, has put an end to an illegal situation and has initiated a policy of democratization of the Venezuelan radio spectrum with the goal of putting it at the disposition of the community. In reality, 80% of radio and television stations in Venezuela are privately owned, while only 9% of them are public and the rest belonging to associations or communities. Moreover, the majority of Venezuelan private media is concentrated in the hands of 32 families. (4)

Thus, RWB and the western media have totally distorted a routine measure taken by Conatel to put an end to an illegal situation.

RWB has chosen as its modus operandi a tooth-and-nail defense of the Venezuelan opposition, which was responsible for the April 2002 coup against Chavez, a coup that the Parisian organization endorsed immediately. In particular, RWB defends the coup-supporting channel Globovision, which RWB considers the symbol of freedom of expression in Venezuela. (5) However, RWB fails to point out that in addition to its active participation in the 2002 coup, Globovision supported the sabotage of the Venezuelan oil industry that same year, launched a call for taxpayers not to pay their taxes, and called for insurrection and the assassination of President Chavez. (6)

Recently, Globovision supported the junta behind the coup in Honduras that overthrew the democratically elected president Jose Manuel Zelaya, a coup unanimously condemned by the international community. The owner of Globovision, William Zuloaga Nunez, recognized the illegal government of Micheletti, launching at the same time a call for a coup d’état in Venezuela: “The Micheletti government is following the constitution and we wish, we would love it if in Venezuela the constitution would be respected as it is being respected in Honduras.” (7)

RWB does not defend freedom of expression in Venezuela. Rather it prefers to take the side of the enemies of democracy.

(Translated from Spanish to English by David Brookbank)
Notes

(1) Reporters Without Borders, «Trente-quatre médias audiovisuels sacrifiés par caprice gouvernemental», 2 de agosto de 2009. http://www.rsf.org/Trente-quatre-medias-audiovisuels.html (sitio consultado el 3 de agosto de 2009). Reporters Without Borders, “Thirty four broadcast media shut down at government’s behest”, August 2, 2009. http://rsf.org/34-broadcast-media-shut-down-at.html (site consulted on August 3, 2009).

(2) Agencia Bolivariana de Noticias, «Productores independientes respaldan suspensión de emisoras radiales ilegales», 4 de agosto de 2009.

(3) Fabiola Sánchez, «Radios desafían a Chávez operando por Internet», The Associated Press, 3 de agosto de 2009.

(4) Thierry Deronne, «Au Venezuela, la bataille populaire pour démocratiser le ‘latifundio’ des ondes», 2 de agosto de 2009. En español: La batalla popular para democratizar el latifundio de las ondas; Agencia Bolivariana de Noticias, «Medida de Conatel no afectará libertad de expresión e información en Venezuela», 4 de agosto de 2009.

(5) Reporters Without Borders, «Le gouvernement accélère sa croisade contre les médias privés en voulant modifier les lois et les règles», 21 de julio de 2009. Reporters Without Borders, “Government steps up hounding of private media through new laws and regulations”, July 21, 2009.

(6) Salim Lamrani, «Reporters sans frontières contre la démocratie vénézuélienne», Voltaire, 2 juillet 2009.

Haiti: The Battle Over the Mininum Wage

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What Special U.N. Envoy Bill Clinton May do To Help Haiti Ezili Danto 

Ezili Danto (Marguerite Laurent)

Ezili Danto (Marguerite Laurent)

Bill Clinton was in Miami Sunday, August 9, 2009, making a presentation before Haitians and we’d written a piece entitled What Special UN Envoy Bill Clinton may do to help Haiti where we outlined seven points - stating that Bill Clinton may help Haiti by helping to change US draconian foreign policy in Haiti, that is, by helping grant TPS and equal treatment to Haitians; to end the UN military occupation; free the thousands upon thousands of post-Bush 2004 coup d’etat political prisoners in Haiti; to cancel immediately and without onerous “privatization” or neoliberal conditions all Haiti debt to international financial institutions; to protect, not dilute the $2 billion in annual remittances Haitians from the Diaspora send to Haiti; to support Haitian sovereignty and the institutionalization of the rule of law, not impunity; to establish fair trade wages and nix fraudulent free trade wages and policies and stop failed US/USAID policies of fleecing US taxpayers and handing aid money to USAID - or effectively trading through USAID, churches and predator NGOs, etc…

Haiti’s Minimum Wage Battle

A Council On Hemispheric Affairs (COHA) Analysis

In May 2009, both chambers of the Haitian Parliament voted to increase the daily minimum wage from 70 gourdes ($1.75) to 200 gourdes ($5). Haiti is the least developed nation in the western hemisphere. The approval of the minimum wage legislation is seen as a momentous victory for Haitians living in poverty. However, Haitian president René Préval declined to sign the proposed legislation into law. Instead, the president offered a counter proposal to raise the minimum wage to just 125 gourdes a day, further cementing the status of the Haitian working class as one of the poorest and lowest paid in the hemisphere. In early August, the Parliament approved the 125 gourdes adjustment. The recent minimum wage battle reflects the conflict between the business sector and Haiti’s poor underclass, and also highlights the harsh political realities that have plagued the embattled Préval since his presidential v ictory in 2006. Préval’s political capital has been continuously squeezed and pressured by Haiti’s business class as well as by external political players. Though Préval is the reputed champion of the poor, he also has been single-minded in trying to gain the support of the country’s pro-business faction that seriously opposed his victory in 2006.

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Ezili Danto

Ezili Danto

Ten British Economists Write The Queen (for real!)

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In November 2008 the Queen asked why so few Economists had foreseen the credit crunch.

Ten leading British Economists write to Her Majesty, claiming that the training of economists is too narrow:
“Mathematical technique should not dominate real-world substance.”

During a visit to the London School of Economics in November 2008, the Queen asked why few economists had foreseen the credit crunch. Dated 22 July 2009, she received an answer from Professors Tim Besley and Peter Hennessy. This was widely quoted in the British press.

Ten leading British economists - including academics from top universities, three Academicians of the Academy of Social Sciences, academic journal editors, a former member of the Monopolies and Mergers Commission and the Chief Economic Advisor the Greater London Authority - have responded by writing their own response to the Queen. They note that the letter by Professors Besley and Hennessy fails to consider any deficiency in the training of economists themselves.

Following similar complaints by Nobel Laureates Ronald Coase, Wassily Leontief and Milton Friedman, the ten economists argue that economists has become largely transformed into a branch of applied mathematics, with little contact with the real world. The letter by Professors Besley and Hennessy does not consider how the preference for mathematical technique over real-world substance diverted many economists from looking at the whole picture.

The ten economists uphold that the narrow training of economists - which concentrates on mathematical techniques and the building of empirically uncontrolled formal models - has been a major reason for the failure of the economics profession to give adequate warnings of the economic crises in 2007 and 2008.

The ten signatories also point out that while Professors Besley and Hennessy complain that economists have become overly ‘charmed by the market’, they mention neither the highly questionable belief in universal ‘rationality’ nor the ‘efficient markets hypothesis’, which are both widely taught and promoted by mainstream economists.

The ten economists call for a broader training of economists, involving allied disciplines such as psychology and economic history, as well as mathematics.
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For more information please contact:
Professor Geoffrey M. Hodgson
g.m.hodgson@herts.ac.uk
www.geoffrey-hodgson.info
The Business School, University of Hertfordshire, Hatfield, Hertfordshire AL10 9AB

Letter to the Queen (PDF file)

See also: How Did Economists Get It So Wrong? Paul Krugman

Queen Elizabeth Dismisses U.K. Government - Norman’s Dream

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I had this extraordinary dream last night–Norman

QUEEN ELIZABETH DISMISSES U.K. GOVERNMENT, IMPOSES DIRECT RULE FROM THE PALACE

London, August 18 (CAP News). In a dramatic break with long-established Constitutional practice, Queen Elizabeth II last night announced that she had dismissed the government of Prime Minister Gordon Brown, dissolved Parliament and directly assumed executive powers to the Crown.

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Wither the Caribbean?

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An exploration of the future of the Caribbean in the aftermath of the current global recession

by Sir Shridath Ramphal

Presentation at The Roxborough Institute; Jamaica, 29 July 2009

My segment of these initial presentations to this most welcome Public Forum - on which I congratulate the Roxborough Institute - is

    Exploring the potential role of Caribbean regionalism in facilitating the Region’s recovery in the present situation.

I am glad that I come last, for the speakers before me have laid the essential foundations: the elements of the present situation; the compulsions of regional recovery - and in the process they have necessarily embarked on the exploration of the potential role for Caribbean regionalism. I can adopt most of Dr Persaud’s analysis - less of Mr Seaga’s . Most of all, I shall try to respond to the question which this Forum asks: WITHER THE CARIBBEAN?

A month ago, speaking in Port of Spain to Caribbean Judges (urging them to avoid the myopia of which lawyers are often accused) I said this:

    “CARICOM is at risk”, we have been warned.  So it is;  and few are blameless.  Political leaders, in particular, have to be less casual about CARICOM, less minimalist in their ambition for it, less negative in their vision of it. Its foundations have been built on our oneness; not on the geography of a dividing sea.  The Revised Treaty of Chaguaramas  is not just embellished parchment; it is  the logic of that oneness in a world which threatens our separate survival… The Caribbean Community is now our regional mansion within a global home. We have to make it more secure and habitable - through reaching goals like the CSME  (or even the CSM), and reaching them together.

    Next month is the 20th Anniversary of the Grand Anse Resolution on Preparing the Peoples of the West Indies for the Twenty-first Century - the Resolution  that established the West Indian Commission.  Nearing the end of the new century’s first decade, we are still ‘preparing’. No wonder ‘CARICOM is at risk’…. As (its) political directorate meets in Georgetown next week at their XXXth Summit they must demonstrate credibly that they still believe in Caribbean integration, that they care about securing it against risk,  and that they are serious in their commitment to the objectives of the Treaty of Chaguaramas.  I  believe the people the Caribbean yearn for that assurance from inspired leadership.

Between that month and this  CARICOM has held its 30th Summit - in Georgetown. Have the Caribbean people received that assurance? Sadly, ‘NO’, I don’t think even the Heads themselves would answer ‘YES’! They made hardly any progress on the crucial issues of the CSME, of regional governance, of the world economc crisis, of  migration, of agriculture.

They did make some promises: a Convocation in October on CSME implementation; a resumed meeting this year on Governance of the Community; a new Task Force (No.3) at the level of Heads on the Global Economic Crisis; a re-affirmation of the ‘goal’ of freedom of movement of persons as an essential element of CSME, but full implementation facing challenges; priority for the elaboration of a Community Agricultural Policy. As the late Paul Southwell of St.Kitts used to say in his Shakespearian manner; Promises, Promises, Promises; Tomorrow and Tomorrow and Tomorrow.

Yet, there were positives. I suppose that one way or another - even as Commonwealth Secretary General - I have been in the wings of most of those 30 Summits. At Georgetown this month, something was different. There was a mood, I sensed, among many of the Heads, that not just progress with the integration agenda; but CARICOM itself was under threat That mood reminded me of Yeates’ verse from the 1920s:

Things fall apart; the center cannot hold;

Mere anarchy is loosed upon the world.

It was a sobering mood; and  the Heads, I thought, tried harder than usual. But a ridiculous time frame defeated them - and the absence of a governance structure which left too much to them personally in 2 working days - including original thinking! Which is why, I believe, the Communiqué’s cryptic statement on ‘Governance Issues’ - that (Heads) “expect to conclude their considerations (on these issues) on the basis of proposals to be advanced by the Secretary General and the Task Force on Governance” signifies a resolve to reconvene on this central issue within a matter of months. They recognise, I believe, that without an immediate overhaul of the Community’s governance arrangements  things will likely fall apart; that the center, CARICOM itself, will not hold.

That prospect was reinforced by the matter to which the Communiqué did not refer - the plans for ‘closer union’ arrangements between Trinidad and Tobago and the OECS countries, and possibly Barbados - although the Prime Minister of Barbados, before the Meeting had warned about “fragmenting into unworkable reconfigurations of the regional project” . For some to move at a faster pace toward goals all have agreed on  is not necessarily ruinous of CARICOM, and indeed the Rose Hall Declaration of 2006 said as much. But the avoidance of ruin involves a will by the ‘closer union’ countries on the one hand, and the others, to organize to make the new CARICOM  work better than the old one did.. In practical terms, that will mean a special role for Jamaica in restructuring CARICOM. In Georgetown, Prime Minister Golding gave every indication of a readiness to try.

That readiness may be compounded of many elements; but one certainly is recognition of the intrinsic importance of the Caribbean Single Market to the Region’s efforts to survive the onslaught of the global economic crisis - a recognition which I believe President Jagdeo, who as Chairman of CARICOM will head the new Task Force, will share with him. The  Task Force which will benefit from the recent work of the Bourne and Worrell Groups, will obviously predicate Caribbean responses to the global crisis on Caribbean integration. But if integration itself is comatose, the prescription will remain unfilled. Which is why the governance issue is so urgent. In Georgetown, both the Prime Minster of Jamaica and his predecessor on whom was conferred the Order of the Caribbean Community, were at one in acknowledging the challenge “to find a mechanism that works”.

And let me say without elaboration that such a mechanism must cater for this Region exercising a collective influence - as we once did, however modestly  - at the international level where the global restructuring so necessary to our future will be determined. Our integration vision cannot end at the edge of the Caribbean Sea.

In thanking CARICOM Heads for the OCC, Mr Patterson said:

    Mature regionalism will remain a pipe-dream unless authority is vested in an executive mechanism which is charged with full time responsibility for ensuring the implementation within a specified time frame of the critical decisions taken by Heads.

Mr Golding will want assurance that in thus making CARICOM work the Community is not going in the direction of a ‘political union’. He should be given that assurance in a forthright manner, and be helped to make Jamaica help the Region and itself.

Years ago, the Brandt Commission wrote;

    The world is a unity, and we must begin to act as members of it who depend on each other. It is not enough…to sit around tables talking like characters in Chekov plays about insoluble problems. We have to

    lift ourselves above the immediate constrictions…and offer the world a plan and a vision of  hope, without which nothing substantial can be achieved.

Every word of that is true today for our ‘Caribbean world’. On the global financial crisis and its impact on us, in particular, we surely don’t want more Chekov table-talk - no more Convocations and Task Forces and Study Groups.. We need a small regional Crisis Management Team, serviced by the Secretariat with direct access to the Chairman and Heads of Government. We need to act like ‘one Caribbean’ in plenty o’ trouble. After months of denial at the political level, our technical advisers, the UN (not just the G20)  and regional private sector practitioners are leaving us in no doubt of that ‘trouble’. It is not a matter of ‘gloom and doom’; it is fiddling while the house burns..  Earlier this month, at a Memorial Service for Kathleen Drayton whose very identity had become ‘regional’, George Lamming bemoaned ” the decline and possible erasure of the regional character of our institutions … and the reduction of our territories to a recreational playpen for the world’s rich and famous”.  We cannot go on ignoring these diverse warnings without paying the price of calamity.

In May, the manufacturing associations of Trinidad & Tobago, Jamaica and Barbados issued a joint statement in which they said:

    It is imperative that at this time, given the current economic downturn, decreasing global demand and increasing extra-regional competition, that Governments of the region work together to remove all non-tariff barriers and unfair trading practices.

In June the Newsletter of the Caribbean Centre for Money & Finance   cautioned that

    When the statistics for the first six months of 2009 are all in, we may find that the Caribbean is already in worse shape than has so far appeared, and economic performance will continue to deteriorate until the world economy turns around.

Two weeks ago, the President of the Trinidad and Tobago Coalition of Service Industries, Mr Placide, warned in Antigua that “the private sector is becoming increasingly disenchanted with the pace of CSME implementation. In other words: it is imperative that the Caribbean Single Market is made to work.

The week before the CARICOM Summit, the UN Conference on the Financial and Economic Crisis confirmed - says the South Center - that ‘developing countries are being affected more and more severely as the global crisis drags on … the ‘green shoots’ of recovery are not convincing and the crisis and its effects after an anemic recovery will last several years’.

On 13 June, the Chairman and CEO of Grace Kennedy, Mr Douglas Orane,  made a speech to CARICOM  Finance and Trade Ministers here in Jamaica which I hope all their Heads of Government  read before their Summit Meeting two weeks later. It is a speech that sparkles with gems of  wisdom. Among them is this:

    My colleagues have often heard me make the statement, ” A rising tide lifts all boats”. In the regional context it is obvious that if we create a climate in which countries are able to draw on each other’s resources, to move capital, goods and skilled workers freely, we will create a better standard of living for all our people.

In drawing on each other’s resources, it should now be clear, the private sector and the trade unions - the representatives of capital investors and labour - must become intrinsic to the process of decision-making for the region as a whole.

I share Prime Minister Thompson’s stated conviction “that regional integration is the last best hope for the Caribbean.”. I acknowledge  Douglas Orane’s summation as  the basic tenet of ‘integration’. I believe that our success in making it  the guiding principle by which we actually organize our regional affairs, will determine the answer to the question - ‘Wither the Caribbean?’

UWI Law Education: Commodification and Deregionalization

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by Norman Girvan

Commentary

An item in Jamaica’s Sunday Gleaner (August 16, 2009) reports on the decision of the UWI Mona’s Law Faculty to turn itself into a “self-financing entity”. The majority of Jamaican students admitted to study Law will now have to pay almost the full economic cost of their education, amounting to US$10,000 per year (presently J$890,000, but this will increase as the Jamaican dollar depreciates). A minority will access the programme at the subsidised fee of J$201,000/year.

In addition, Jamaican law students wil no longer to the UWI’s Cave Hill (Barbados) campus to do years two and three of their degree. The cost of this is US$16,800 per year per student, and the UWI Mona cannot afford it.

This is a signficant development. It is a futher sign of the impact of the global economic crisis on Jamaica. One of the results has been a 9 percent cut (J$700 million) in the Government of Jamaica’s financial subsidy to the UWI Mona Campus.

There are several implications that are worth noting:

(1) The further erosion in Jamaica of the principle that “education is a right”, and extension of the principle that “ediucation is a privilege”, or better still, “education is a commodity to be bought” (the Gleaner article notes that the decision mirrors one taken by the UWI Mona’s Medical Faculty six years ago),

(2) the further reversal of opportunties for upward social mobility in Jamaica, law education being one of the principal historical means by which individuals from the lower social strata have moved upwards (only 80 high performing students/year will be admitted annually at the subsidised rate, which is still a hefty J$201,000 year)

(3) tendency for the reproduction of traditional patterns of class/colour stratification in Jamaica–only the economically privileged wil be able to afford fees of close to J$1 million/year

(4) removal of one of the sole remaining elements of regionalism in the UWI student experience–Jamaican law sudents will no longer be going to Barbados,

(5) further implantation of an individualistic, mercenary culture, amongst the professional elites, particularly the legal profession; and

(6) further differentiation within Caricom (and the Caribbean) in the availability of social services to the general population. In Babados and in Trinidad, tertiary education is either free or highly subsidised to all students gaining acceptance to the relevant institutions. In Cuba, education at all levels is free.

Commencing in three years time, when the first batch of graduates from the commercialised UWI Mona law programme begin to come on stream, we can look forward to the accentuation of a parochial, individualistic culture in the Jamaican legal profession, with a social composition that reproduces existing hierarchies in the society. This is a trend that may already be underway with increasing numbers taking their degrees from UWI competing institutions, as the Gleaner article points out. In other words, UWI is being forced to adopt the model of competitor institutions.

None of this, by the way, is to criticise the UWI officials who have made these decisions. It follows logically from the system in which we are a part and from the “rules of the game”. One of those rules is that payment of the public debt is the first charge on the fiscal budget. Debt service absorbs over 60% of the Jamaican budget. When debt service trumps all; social services must bear the adjustment. Ultimately it is the poor and the less privileged in the society who will be made to pay the social cost of the global financial crisis–a crisis provoked by the greed and irresponsibility of Wall Street and the City of London and of the governments that not only permitted, but encouraged, this.

The Honduras Coup, ALBA, and the English-Speaking Caribbean

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by Faiz Ahmed

The military coup carried out by masked soldiers in the early hours of June 28 against the democratically elected President of Honduras, José Manuel Zelaya Rosales, was a bandit act with differing messages intended for different audiences.

One such audience is the oligarchical groupings throughout the hemisphere, who will be emboldened by Washington’s tacit tolerance of the coup makers.  Another audience is the Latin American leftist and popular governments, who are being told that their agendas can be trumped by non-democratic means.

And there is yet another audience: the predominantly English-speaking Caribbean governments who, like Zelaya, are far from ideologically opposed to capitalism, but are aware of their inability to improve the overall quality of life of their societies within capitalism’s current configuration.  As a result, many of these island governments are edging towards regional agreements based on principles antithetical to the capitalist system.

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