Economics – Page 39 – Go Lean…Caribbean

Category: Economics

Ailing Puerto Rico open to radical economic fixes

Posted on April 18, 2014 in Economics, Government, Locations, Tactical

Go Lean Commentary

The Caribbean is in crisis!

Puerto Rico is in crisis! According to this quote, they have lots of issues, all stemming primarily from economic dysfunctions:

Puerto Rico, in dire straits following eight years of recession, has remained receptive as it debates hundreds of ideas: ‘‘We are studying all alternatives and all possibilities.

The publishers of the book Go Lean … Caribbean humbly submit this publication as a complete roadmap to re-boot the island’s economy, security and governing engines. This roadmap differs from all the other 369 suggestions submitted to the territorial government’s committee highlighted in the foregoing news article, in that it presents a regional option, rather than just a territorial solution. The book asserts that the problems of Puerto Rico (by extension, the entire Caribbean) are too big for any one member-state to solve alone. Rather, the focus of the roadmap is the region-wide professionally-managed, deputized technocracy of the Caribbean Union Trade Federation (CU).

Puerto Rico needs the strategies, tactics, implementations and advocacies of the CU.

The CU needs Puerto Rico!

The CU requires the full participation of all 30 member-states in the region, including all 4 language group (Dutch, English, French and Spanish). With this approach, the CU benefits from the economies-of-scale of 42 million people.

The CU expects NO MONEY from Puerto Rico. This is good as the island is running a $820 million deficit. To cure a deficit a government needs more revenues and/or fewer expenses. The Go Lean roadmap features both. The roadmap is a complete re-boot: new revenue streams and a separation-of-powers, thereby delegating governing overhead to the CU.

Go Lean … Caribbean introduces the CU to take oversight of’ much of the Caribbean economic, security and governing functionality. In summary, this plan’s execution makes Puerto Rico, and the Caribbean, a better place to live, work and play.

This Go Lean roadmap first assesses the Puerto Rican human flight/brain drain crisis, where more than half of the island’s populations have fled to American shores. This plight makes the task of building a functioning society difficult, as often the brightest and best talents are the ones that leave; plus entitlement programs simply need populace retention.

By DANICA COTO – Associated Press

SAN JUAN, Puerto Rico (AP) — Slash the number of public holidays by two-thirds. Eliminate dozens of government agencies. Legalize marijuana and prostitution.

From the intriguing to the impossible, there is no shortage of ideas for fixing Puerto Rico’s ailing economy as the government tries to dig out from a whopping $70 billion in public debt and bring back economic growth.

The ideas have come from legislators, entrepreneurs and even members of the public, who have submitted ideas via a government-sponsored website. Of the 369 ideas sent in by the public, 156 have been accepted by a government committee for consideration, including the suggestions to legalize marijuana and prostitution, and to limit how long people can live in subsidized housing.

But all the ideas require further government approval, either with a legislative vote, or an administrative nod from the governor, agency or department. More dramatic ideas, such as legalization of marijuana or prostitution, would require public hearings, legislative approval and the governor’s signature.

And prospects for approval of the various suggestions are decidedly mixed.

The governor, for example, is expected to sign a bill approved by lawmakers to release certain elderly prisoners, but not a suggestion floated by a member of the public to charge inmates for their room and board.

Puerto Rico, in dire straits following eight years of recession, has remained receptive as it debates hundreds of ideas: ‘‘We are studying all alternatives and all possibilities,’’ said Sen. Maria Teresa Gonzalez, a member of the governor’s party who has come under fire for submitting a bill that would reduce the number of holidays for public employees to six.

The island currently celebrates 20 holidays a year, double those observed in the U.S. Many people have bristled at the proposal to scrap some of the additional extra days off, some of which commemorate various historic Puerto Rican leaders. But Gonzalez said the excessive number of holidays costs the government about $500 million a year in lost productivity and interruptions in service, among other things.

‘‘Change always brings about inconveniences,’’ she said. ‘‘I’m convinced that before we talk about something as dramatic and disastrous as layoffs, we have to consider other ideas.’’

Many suggestions have come as Gov. Alejandro Garcia Padilla prepares to submit the first balanced budget in decades, having promised U.S. investors and credit agencies that he will eliminate an $820 million deficit. The governor has not detailed his cutbacks, prompting fears of layoffs, tax increases and cuts to public service.

Opposition legislator Rep. Ricardo Llerandi Cruz has proposed eliminating 41 government agencies, saying it would save $160 million alone in administrative costs. He said the government has many agencies performing the same functions, noting that there’s a Department of Natural Resources, which protects, develops and manages the island’s environmental resources, and an Administration of Natural Resources, a division within the department with responsibilities that include overseeing projects such as cleanup efforts.

‘‘Puerto Rico is facing the worst fiscal crisis in all of its history,’’ Cruz said. ‘‘We need to refocus or revisit governmental priorities to face these problems.’’

A bill in the legislature also would cap the salaries of mayors, but legislators have been debating the issue for a year as mayors continue to give themselves raises. The full-time mayor of the western town of Maricao, for example, oversees the island’s second-least populated municipality with some 6,200 people and currently earns $78,000 a year, nearly double of what he earned the previous year. If the bill is approved, the mayor would earn a base salary of roughly $54,000 a year.

Manuel Lugo, an attorney who lives in the coastal town of Aguadilla, is among those who submitted the highest number of ideas on the government’s website. But despite having nine of 17 ideas approved, he doesn’t believe the government will take action on any of them.

‘‘It is very difficult to change the inertia of this island,’’ said Lugo, 43, who recently closed his office because of economic problems and is contemplating a move to Texas. ‘‘There has been no economic plan for decades. What they do here is repair and patch holes. That’s not how you run a country.’’

Yanira Hernandez, a governor spokeswoman, said Garcia will detail how he plans to balance the budget in a special televised address in late April. The budget must be approved before June 30.

While many are concerned about what cuts will be made to balance the budget, economist Gustavo Velez said extreme measures won’t be necessary if the government increases revenues and consolidates state agencies. Puerto Rico could generate $300 million more a year if it increases its capture rate on tax revenues from 56 to 75 percent, he said. The government also could suspend salary increases, Velez added.

‘‘Puerto Rico cannot keep operating on recurring deficits,’’ he said, noting it is unconstitutional. ‘‘We have to return to balanced budgets as the norm. Politicians have to embrace that reality.’’

The government also has considered tapping into the island’s underground economy, estimated by some experts at $20 billion a year, representing roughly 40 percent of overall consumption.

Puerto Ricans are increasingly seeking new ways to generate money, with some opening food trucks or hunting caimans to sell the meat as shish kebabs or fried snacks.

But an estimated 450,000 people have moved to the U.S. mainland in search of new jobs and a more affordable cost of living in the past decade.

Brunilda Cintron, 56, left the island in 2001 and now lives in Kissimmee, Florida. But her daughter and mother still live in Puerto Rico, and she worries about their future.

‘‘The government has to make some drastic decisions that will adversely affect people,’’ Cintron said, adding that she thinks her family will soon join her in the U.S. mainland. ‘‘I don’t think they’re going to have a choice.’’

Boston Globe – AP Newswire – Retrieved 04-11 2014 http://www.boston.com/news/world/caribbean/2014/04/10/ailing-puerto-rico-open-radical-economic-fixes/siVW5wfiml78bERu5MuJlM/story.html

The CU will fix Puerto Rico! Look here at the solutions; (sorted by Economic/Security/Governance). The book Go Lean … Caribbean details these specific curative measures (advocacies, strategies, tactics, and implementations):

Economic:

Community Ethos – Money Multiplier	Page 22
Help Entrepreneurship	Page 28
Impact Turn-Around Strategies/Tactics	Page 33
Tactics to Forge an $800 Billion Economy	Page 67
New Ways to Pay for Change	Page 101
Start-up Benefits from an EEZ	Page 104
Develop/Expand a Pipeline Industry	Page 107
Improve Energy Usage	Page 113
Better Manage Debt	Page 114
Foster International Aid	Page 115
Improve Trade	Page 128
Improve Interstate Commerce	Page 129
New Ways to Grow the Economy	Page 151
Create Jobs	Page 152
Control Inflation	Page 153
Improve Credit Ratings	Page 155
Mitigate Black Markets	Page 165
Enhance Tourism	Page 190
Impact Wall Street	Page 200

Security:

Separation of Powers – Homeland Security	Page 75
Security Initiatives [stemming from the Start-up]	Page 103
Impact Justice	Page 177
Mitigate & Reduce Crime	Page 178
Improve Intelligence [Gathering & Analysis]	Page 182
Impact the Prison-Industrial Complex	Page 211

Governance:

Community Ethos – Deferred Gratification	Page 21
Improve Negotiations	Page 32
Impact the Greater Good	Page 37
Tactics to Foster a Technocracy	Page 64
Implement Self-Governing Entities	Page 105
Improve Mail Service	Page 108
Strong Reasons to Repatriate	Page 118
Promote Independence	Page 120
Improve Healthcare	Page 156
Impact Entitlements	Page 158
Improve Education	Page 159
New [Governmental] Revenue Sources	Page 172
Impact Public Works	Page 175
Better Manage Natural Resources	Page 183
Improve for Natural Disasters	Page 184
Improve Emergency Management	Page 196
Impact Urban Living	Page 234
Impact US Territories	Page 244

The roadmap alerts the Caribbean stakeholders of the obstacles that this plan will encounter, and then provides guidance, turn-by-turn directions, so as to reach the destination … promptly.

Change has come to the Caribbean. The people, institutions and governance of Puerto Rico are all urged to “lean-in.”

In fact, now is the time for the whole Caribbean region to lean-in for this change, described in the book Go Lean … Caribbean. The benefits of this roadmap are too alluring to ignore: emergence of an $800 Billion regional economy, 2.2 million new jobs and an end to the dysfunction. This will result in Puerto Ricans repatriating from the US, not fleeing there.

Download the free e-Book of Go Lean … Caribbean – now!

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Cuban cancer medication registered in 28 countries

Posted on April 17, 2014 in Economics, Ethos, Government, Implementation, Strategy, Tactical

Go Lean Commentary

While the below news article is about great cancer and diabetes drugs developed in the Caribbean, this commentary has an underlying theme about “American Exceptionalism”.

American exceptionalism is the theory that the United States is qualitatively different from other nation states.^[a] In this view, US exceptionalism stems from its emergence from a revolution, becoming what political scientist Seymour Martin Lipset called “the first new nation” and developing a uniquely American ideology, “Americanism”, based on liberty, egalitarianism, individualism, republicanism, populism and laissez-faire. This ideology itself is often referred to as “American exceptionalism.”^[b]

Although the term does not necessarily imply superiority, many neoconservative and other American conservative writers have promoted its use in that sense. To them, the US is like the Biblical “City upon a Hill”^[c][d]

This subject matter aligns with the publication Go Lean … Caribbean, which serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). The Go Lean roadmap maintains that other peoples (nations) have dreams as well; the American Dream is not the only aspiration to hope for. This foregoing article presses the point about innovation in cancer and diabetes drugs – that emerged from Cuba.

Posted: March 29, 2014

HAVANA, Cuba – Nimotuzumab, a Cuban monoclonal antibody humanized to treat cancer, is registered in 28 countries, mainly in South America, Africa and Asia, in addition to Cuba.

Specialists at the Center of Molecular Immunology, an institution of the BioCubaFarma Business Group, said that the product has shown its effectiveness in various cases of malignant tumours.

Indicated for tumours in the head and neck in advanced stages, brain tumours and of the esophagus, Nimotuzumab is also used in other oncological ailments of the colon, rectum and liver, and in lung cancer among other locations.

The monoclonal antibody and its results will be the focus, on March 25-27, of the eighth global scientific meeting on Nimotuzumab – Nimomeeting 2014.

With Havana’s Convention Center as its venue, the forum will bring together over 200 experts from some 20 nations, as well as about 20 international biopharmaceutical companies interested in sharing experiences about the medication, the therapeutics of which are used in the medical specialties of oncology, oncopediatrics, radiotherapy, pediatrics and neurosurgery, among others.

Meanwhile, Cuba is trying to take its diabetic foot ulcer drug known as Heberprot-P into the European market.

Heberprot-P is a product based on human growth factor currently being administered in some 20 countries, mostly in Latin America.

According to the marketing director of the Havana-based Genetic Engineer and Biotechnology Center, Ernesto Lopez, the pre-clinical stage of the product, known in Europe as Epipropt, was carried out with good toxicological and safety results.

In Spain, with an estimate 40,000 patients needing the Cuban drug, tests were carried out with no negative toxic results. The product has been developed since 2012 for research studies in other European nations.

According to studies, amputation of lower limbs was reduced fourfold, with the surgical procedure in Europe currently costing over 50,000 Euros, and treatment of the condition some 20,000 Euros.

It is the amputation of lower limbs as a direct consequence of diabetic foot ulcer that the Cuban medication avoids with a period of treatment of only six to seven months.

Along with the therapeutic action on serious ulcers, the treatment has demonstrated a preventive nature in countries like Cuba, Venezuela, and Ecuador.

Source: Caribbean News Now Online Newspaper – Retrieved 04-13-2014 http://www.caribbeannewsnow.com/topstory-Cuban-cancer-medication-registered-in-28-countries-20429.html

While the Go Lean book strategizes a roadmap for economic empowerment, it clearly relates that healthcare, disease management, cancer treatments and medicines are germane to the Caribbean quest for health, wealth and happiness. At the outset of the Go Lean book, in the Declaration of Interdependence (Page 10 & 11 respectively), these points are pronounced:

Preamble: While our rights to exercise good governance and promote a more perfect society are the natural assumptions among the powers of the earth, no one other than ourselves can be held accountable for our failure to succeed if we do not try to promote the opportunities that a democratic society fosters.

ix. Whereas the realities of healthcare and an aging population cannot be ignored and cannot be afforded without some advanced mitigation, the Federation must arrange for health plans to consolidate premiums of both healthy and sickly people across the wider base of the entire Caribbean population. The mitigation should extend further to disease management, wellness, obesity and smoking cessation programs. The Federation must proactively anticipate the demand and supply of organ transplantation as developing countries are often exploited by richer neighbors for illicit organ trade.

Cuba is not on friendly terms with the United States. A trade embargo was implemented in 1962 as a temporary measure to dissuade the island’s socialist leanings. Now, after 52 years, the embargo continues. Generations of Cubans and generations of Americans have come and gone without witnessing a normalized relationship between Cuba and its largest neighbor, the US. Millions too have died of the scourge of cancer, estimated by one source as afflicting 1-out-of-3 Americans ^[e]

(Personal note: the primary author of the book Go Lean … Caribbean was inspired to write this roadmap, after his sister died after a 32-year battle with cancer – See Dedication Page 2).

The scourge of cancer and the realities of diabetes were not the motivation for composing the book Go Lean … Caribbean. But rather, the bigger goal of elevating Caribbean society. The Caribbean Union Trade Federation has the prime directive of optimizing the economic, security and governing engines of the region. The foregoing article depicts the benefits that can emerge as a result of innovation in science, technology, engineering and medicine (STEM). Cuba will be able to trade these advance medicines globally to the markets needing their therapeutic benefits. This is a win-win!

Under the Go Lean roadmap, more such developments will emerge … from all corners of the Caribbean. There are also obvious tangential benefits to the people of the Caribbean regarding public health administration and wellness.

The following list details the strategies, tactics, implementations and advocacies to optimize the region’s health deliveries:

Community Ethos – Cooperatives	Page 25
Community Ethos – Non-Government Organizations	Page 25
10 Ways to Impact Research and Development	Page 30
10 Ways to Impact the Greater Good	Page 37
Separation of Powers – Patent, Standards, & Copyrights Office	Page 78
Separation of Powers – Health Department	Page 86
Separation of Powers – Drug Administration	Page 87
10 Ways to Implement Self-Government Entities	Page 105
10 Trade Mission Objectives	Page 116
10 Ways to Benefit from Globalization	Page 119
10 Ways to Improve Healthcare	Page 156
10 Ways to Impact Cancer	Page 157
10 Ways to Impact Entitlements	Page 158
10 Ways to Better Manage the Social Contract	Page 170
10 Ways Foster Cooperatives	Page 176
10 Ways to Improve Organ Transplants	Page 214
10 Ways to Improve Elder-Care	Page 225
10 Ways to Impact Persons with Disabilities	Page 228
10 Ways to Re-boot Cuba	Page 236

The foregoing article establishes that many patients around the world will benefit from medical innovations fostered in the Caribbean, in Cuba. The Go Lean roadmap posits that there are a lot of benefits the Caribbean can/will make to facilitate a better life for populations throughout the world. Executing these plans, following the roadmap, will be better for the Caribbean population too.

The United States of America should take heed.

Download the book Go Lean … Caribbean – now!

———

Appendix – References

a. Winfried Fluck; Donald E. Pease; John Carlos Rowe (2011). Re-Framing the Transnational Turn in American Studies. UPNE. p. 207. Retrived 4/16/2014 from: http://books.google.com/books?id=ccz81DWudCAC&pg=PA207

b. American Exceptionalism: A Double-Edged Sword. Seymour Martin Lipset. New York, N.Y.: W.W. Norton & Co., Inc. 1996. Page 18. ISBN 0-393-03725-8.

c. Harold Koh, “America’s Jekyll-and-Hyde Exceptionalism”, in Michael Ignatieff, ed., American Exceptionalism and Human Rights, p. 112

d. A “City upon a Hill” is a phrase from the Bible parable of Salt and Light in Jesus’s Sermon on the Mount. In Matthew 5:14, he tells his listeners, “You are the light of the world. A city that is set on a hill cannot be hidden.” It has become popular with American politicians.

e. Website http://www.preventcancer.com/losing/ – Retrieved Nov. 2013 / Wikipedia.org general subject treatment for the War on Cancer – Retrieved Nov. 2013.

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Book Review: ‘The Divide’

Posted on April 16, 2014 in Economics, Ethos, Government, Social

Go Lean Commentary

So many Caribbean citizens would love the opportunity to immigrate to the United States. However, the old adage could apply here: “All that glitters is not gold”.

The publishers of the book Go Lean … Caribbean, align with the source book in this review, The Divide by Matt Taibbi. In the Caribbean, we hope to minimize the “push-and-pull” factors that draw our Caribbean youth away. This verse from Matt Taibbi’s book depicts that the US is not the “Promised Land” that many Caribbean expatriates envision:

Violent crime has fallen by 44 percent in America over the past two decades, but during that same period the prison population has more than doubled, skewing heavily black and poor. In essence, poverty itself is being criminalized.

This subject matter aligns with the Go Lean … Caribbean publication, which serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). The Go Lean roadmap calls for the optimization of the Caribbean economic, security and governing engines. We want a society based on justice, but not the “American Justice” we see meted out, as described in the source book.

This Go Lean roadmap first assesses that the Caribbean is in crisis, that we are not able to retain our young people. Many member-states (St Vincent, Puerto Rico, US Virgin Islands, etc.) have lost more than half of their populations to foreign shores. This plight of human flight makes the task of building a functioning society difficult for the remainder, as often our brightest and best talents are the ones that leave. We “fatten frogs for snakes”, as the Jamaican expression depicts.

Many times, the destination of choice is the United States. The goal of Go Lean movement is to forge a better society, to make the Caribbean a better place to live, work and play. While the source book in the foregoing article is indicting the American Justice system, we, in the Caribbean, need to ensure that we are doing even better ourselves in our Caribbean homeland.

Book Review: By Timothy Noah; contributing writer New York Times, April 10, 2014

THE DIVIDE (Spiegel & Grau Publishers)

American Injustice in the Age of the Wealth Gap

By Matt Taibbi

“Low-class people do low-class things.” What’s notable in this reflexive dismissal of those with modest means are not the words themselves. Rather, please turn your attention to the person whom Matt Taibbi, in his ambitious new book documenting America’s unequal administration of justice to rich and poor, quotes saying them: a private attorney hired by New York State to defend low-income people in criminal court. We never learn his name, but Taibbi calls him Waldorf because he resembles the grouchy old balcony heckler on “The Muppet Show.”

Waldorf’s casual contempt for his defendants (and tacit approval of the sloppy policing dragnet that puts them at his mercy) is voiced at the conclusion of a grimly comic vignette worthy of Joseph Heller — one of many deeply reported, highly compelling mini-narratives of dysfunction within the criminal justice system that make “The Divide: American Injustice in the Age of the Wealth Gap” as infuriating as it is impossible to put down.

A 35-year-old black man named Andrew Brown is arrested for “obstructing pedestrian traffic” in Bedford-Stuyvesant. Brown, having been similarly harassed by the cops countless times before, refuses to provide ID and accept a summons, and is consequently brought into court. Once there, Brown explains to Waldorf that he was talking to a friend outside his own apartment building after getting off work, and that, given the lateness of the hour (shortly before 1 a.m.), there wouldn’t have been any pedestrian traffic on Myrtle Avenue to obstruct.

None of this seems to register with Waldorf. “What are you arguing?” he asks. He wonders aloud whether Brown was “being a wise guy” with the cops, and expresses surprise that a person such as Brown would have a job. He advises his client to pay the $25 fine.

Brown refuses and explains it all over again to the judge. The judge turns to Waldorf and asks whether Brown will pay the $25 fine. Waldorf explains, for the second time, that Brown won’t pay, his manner suggesting that for the life of him he can’t figure out why not.

Only then does the judge bestir himself to ask the arresting officer whether he saw any other people on the sidewalk that night. No? “O.K., then,” the judge sighs. “Not guilty.” Out in the hallway, Taibbi asks Waldorf why white people never get arrested for obstructing pedestrian traffic. Oblivious to the lesson that has just played out, and puzzled as to why Taibbi would want to include any of this in a book, Waldorf replies, “Low-class people do low-class things.”

Taibbi wrote “The Divide” to demonstrate that unequal wealth is producing grotesquely unequal outcomes in criminal justice. You might say that’s an old story, but Taibbi believes that, just as income disparities are growing ever wider, so, too, are disparities in who attracts the attention of cops and prosecutors and who doesn’t. Violent crime has fallen by 44 percent in America over the past two decades, but during that same period the prison population has more than doubled, skewing heavily black and poor. In essence, poverty itself is being criminalized. Meanwhile, at the other end of the income distribution, an epidemic of white-collar crime has overtaken the financial sector, indicated, for instance, by a proliferation of record-breaking civil settlements. But partly because of an embarrassing succession of botched Justice Department prosecutions, and partly because of a growing worry (first enunciated by Attorney General Eric Holder when he was Bill Clinton’s deputy attorney general) that any aggressive prosecution of big banks could destabilize the economy, Wall Street has come, under President Obama, to enjoy near-total immunity from criminal prosecution. It had more to fear, ironically, when George W. Bush was president.

The argument isn’t laid out in a particularly rigorous or nuanced manner, but it seems plausible enough. Taibbi, a longtime Rolling Stone writer who is currently developing a publication about political and financial corruption for First Look Media, has in the past written in a blustery style that put me off, but here the gonzo affectation is kept largely in check. What I failed to notice previously — or perhaps what Taibbi shows off to especially good effect here — is what a meticulous reporter he can be, with a facility for rendering complex financial skulduggery intelligible. Especially noteworthy are Taibbi’s detailed accounts of self-dealing amid the dismantlement of Lehman Brothers — which involved, among other things, hoodwinking Lehman’s bankruptcy judge — and of a vicious harassment campaign waged by hedge fund managers against the employees of a Canadian insurance company whose stock they’d shorted. In both instances, one is struck that, however tricky the standard of proof may be for the white-collar criminal class, the evidence available nowadays in the form of compromising email communications would make Eliot Ness weep with gratitude. And yet the gangsters got away.

Taibbi is similarly skillful at explaining how bureaucratic imperatives in the criminal justice system can spin scarily out of control. In New York City, you start with a “broken windows” theory that says cracking down on petty crime can prevent little criminals from becoming big criminals. Possibly because that’s right, violent crime goes down. But paradoxically, that makes a cop’s life more difficult rather than less, because criminals are getting harder to find even as new computer systems are enabling the police commissioner to keep track of which precincts are making the most arrests. The solution turns out to be aggressive use of a stop-and-frisk policy that gives cops a blank check to “search virtually anyone at any time.” The police start behaving “like commercial fishermen, throwing nets over whole city blocks.” Some of the fish get prosecuted or ticketed for ever-pettier offenses; 20,000 summonses, for instance, are handed out annually for riding a bicycle on the sidewalk. But most fish aren’t guilty of anything and must grow accustomed to being routinely cuffed and ridden around in a police van before they are tossed back into the water. These fish are, of course, typically black and poor. Anecdotal evidence suggests that throwing a similar fishnet over entire Wall Street firms would produce a criminal yield at least as high as any random ghetto block. But innocent Wall Street fish would have a much bigger megaphone with which to proclaim their constitutional rights, and guilty Wall Street fish would have much better lawyers.

One theme implicit in Taibbi’s reporting is the extent to which the justice system’s newer kinds of inequalities are driven by technology. Computers encourage both the government and the banks to operate on a scale at which consideration of

individual circumstance isn’t really possible. The result is unstoppable error by government (say, the frequent miscalculations that leave welfare recipients at constant risk of being wrongly accused of fraud) and unstoppable fraud by banks (say, robo-signing endlessly repackaged and resold mortgages and credit card debt). For both government and banks, such scaling up inevitably creates injustices for certain individuals, but so long as the victims are powerless there won’t be much of a legal or political reckoning. The person tossed into jail for welfare fraud he didn’t commit or tossed out of his house because he was mistakenly judged not to be paying his mortgage may or may not get it all sorted out in the end, but even if he does the feedback loop won’t impose too much pain.

We may be approaching a day when any kind of personal attention from a large institution that wields substantial control over your life becomes a luxury available only to the few, like a bespoke suit or designer gown.

New York Times Online –Book Review – “The Justice Gap” – Retrieved 04-15-2014 –http://www.nytimes.com/2014/04/13/books/review/the-divide-by-matt-taibbi.html?_r=0http://www.nytimes.com/2014/04/13/books/review/the-divide-by-matt-taibbi.html_r=0

Even though the Go Lean book is presented as a roadmap for economic empowerment, it immediately recognizes that there must be an effort for justice among Caribbean institutions or rather, people will continue to flee. At the outset of the Go Lean book, in the Declaration of Interdependence (Page 12), this point is pronounced:

xxi. Whereas the legacy in recent times in individual states may be that of ineffectual governance with no redress to higher authority, the accedence of this Federation will ensure accountability and escalation of the human and civil rights of the people for good governance, justice assurances, due process and the rule of law. As such, any threats of a “failed state” status for any member state must enact emergency measures on behalf of the Federation to protect the human, civil and property rights of the citizens, residents, allies, trading partners, and visitors of the affected member state and the Federation as a whole.

How should the Caribbean be different than the United States in the pursuit of justice?

The book Go Lean … Caribbean details strategies, tactic, implementations and advocacies to elevate Caribbean society. Some of the specific features include:

Community Ethos – Juvenile Justice	Page 23
10 Ways to Manage Reconciliations	Page 34
10 Ways to Impact the Greater Good	Page 37
Separation of Powers–Justice Department	Page 77
Separation of Powers–Judicial Branch	Page 90
10 Ways to Better Manage Image	Page 133
10 Ways to Improve Failed-State Indices	Page 134
10 Ways to Impact Justice	Page 177
10 Ways to Reduce Crime	Page 178
10 Ways to Improve Intelligence	Page 182
10 Ways to Impact Wall Street	Page 200
10 Ways to Impact Prison-Industrial Complex	Page 211
10 Ways to Protect Human Rights	Page 220
10 Ways to Impact Youth	Page 227

The roadmap also cautions that we do not want to repeat America’s mistakes. If we do not learn from history …

In truth, the Caribbean is still reeling from the effects of the Global Financial Crisis of 2008.

What is worse, the US has “hardly” marshaled any persecutions against the culprits and perpetrators of the mortgage fraud that de-stabilized the American securities markets and the world economy. Matt Taibbi further reports:

In a speech last year that chilled Wall Street, New York Federal Reserve President William Dudley said he feared that the tax dodging, money laundering, mortgage fraud and trampling on homeowners by America’s big banks might reflect not just a few bad actors but ethical flaws deep in the fabric of Wall Street.

In 2010, Attorney General Eric Holder Jr. warned that “mortgage-fraud crimes have reached crisis proportions.” He vowed bravely to fight back, but the Justice Department’s inspector general recently reported that, in fact, Holder’s department has made Wall Street crime its lowest priority and that, since 2009, the FBI has closed 747 mortgage-fraud cases with little or no investigation.

There it is, the United States, where there seems to be a Great Divide in justice, one set of standards for the rich, another set for the poor.

The grass is not greener on that (American) side!

The reasons for emigration are “push-and-pull”. This source book identifies and qualifies a “pull” factor, the issue of justice in America. The book informs the reader that America should not be considered alluring from a justice perspective, especially if the reader/audience is poor and of a minority ethnicity.

This leaves the “push” factors. The Caribbean must address its issues, as to why its population is so inclined to emigrate. This is the purpose of the Go Lean roadmap. It features the assessments, strategies, tactics and implementations to make the Caribbean a better place to live, work and play.

Now is the time for the Caribbean region to lean-in for the changes described in the book Go Lean … Caribbean. The benefits of this roadmap are too alluring to ignore: emergence of our own $800 Billion economy, 2.2 million new jobs, new industries, services and optimized justice institutions.

Download the free e-Book of Go Lean … Caribbean – now!

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Facebook plans to provide mobile payment services

Posted on April 14, 2014 in Economics, Ethos, Government, Industries, Social

Go Lean Commentary

The jockeying for position has begun!

The foregoing article highlights the planning, development and deployment activities around the issue of mobile payments. This is germane for the Caribbean, as the World Bank reports that this region is #1 for homeland remittances from expatriated citizens.

This is a matter of supply and demand. The Caribbean Diaspora demands to send money; tools like Western Union, MoneyGram and these new solutions, identified here, supply the services.

But change is coming!

Reuters: Soham Chatterjee & Abhirup Roy (Bangalore)

Facebook Inc. is preparing to join the mobile-payments race with remittances and electronic-money services on the social network, the Financial Times reported on Sunday, citing several people involved in the process.

The company is close to obtaining approval from the Central Bank of Ireland to start a service that would allow users to store money on Facebook and use it to pay and exchange with others, the people told the FT. See: http://link.reuters.com/dag58v

The Irish Central Bank declined to comment.

Facebook was not immediately available for comment.

The company has also had partnership talks with at least three London start-ups — TransferWise, Moni Technologies and Azimo — that offer online and mobile international money transfer services, three people involved in the discussions told FT.

Telecom groups, retailers and banks are all trying to secure a [slice of the pie] of global mobile payments, which is predicted to grow rapidly in the next few years.

Vodafone brought its mobile money transfer service M-Pesa to Romania last month, following its success in Africa, and is likely to expand the service in eastern and central Europe.

Facebook’s rival Google Inc.’s head of payments recently reiterated commitment to the struggling Google Wallet and mobile payments service. The company had allowed users to send money last year as an email attachment.

Related Articles:

Google Wallet now lets you send money as an attachment in Gmail: http://link.reuters.com/wyf58v

Google exec reiterates commitment to mobile payments: http://link.reuters.com/xyf58v

Apple Chief Executive Tim Cook said in January the company’s interest in mobile payments was a reason for creating the Touch ID fingerprint sensor in its iPhone 5S smartphone – http://link.reuters.com/sag58v

Global mobile transactions are expected to grow at an average 35 percent per year between 2012 and 2017, according to a report by research firm Gartner. The June 2013 report forecast a $721 billion market with more than 450 million users by 2017 – http://link.reuters.com/nyf58v.

Yahoo Online News Source (Retrieved 04/14/2014) –http://news.yahoo.com/facebook-plans-mobile-payment-services-ft-133451646–sector.html

The book, Go Lean…Caribbean, serving as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), identified that new methods are needed to facilitate remittances. A lot of money is remitted back to the Caribbean (over $9 Billion dollars in 2010; sometimes 10% of GDP), and too many foreign entities are profiting on the backs of hard-working Caribbean people. The book lists a series of new alternatives that will be pursued in the Go Lean roadmap, some of which are identified in the foregoing news article.

This article also raises other issues, such as globalization, ICT, Social Media and Mobile Application development. All of these are covered in exhaustive details in the Go Lean book.

The premise is that the CU is chartered so that the Caribbean can have a hand in its own self-determination. There should be home-grown (Caribbean-based) solutions for Caribbean problems.

This point is pronounced early in the book, in the opening Declaration of Interdependence – (Page 14):

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

In line with the foregoing article, the Go Lean book advocates some infrastructural enhancements so that the region can play a role in the development/deployment of this important industry. The book references are as follows:

• Research & Development (Page 30)

• Caribbean Central Bank (Page 73)

• Impact Social Media (Page 111)

• Benefit from Globalization (Page 119)

• Fostering e-Commerce (Page 198)

• Banking Reforms (Page 199)

• Impacting the Diaspora (Page 217)

• Alternative Remittance Modes (Page 270)

Who will win the “space race” between all the big Information Technology providers (Facebook, Google, Apple or Vodafone as depicted in the foregoing articles)? It is not known yet! But for the Caribbean, we must not be spectators only. Not this time!

With the CU / Go Lean roadmap in place, we can declare: Change has come to the Caribbean.

Download the book – Go Lean…Caribbean Now!!!

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Diaspora, ICT, Model, STEM, Transform

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Financial Crisis Jokes

Posted on April 11, 2014 in Economics, Planning, Social

The book, Go Lean…Caribbean, serves as a roadmap for the implementation of the Caribbean Union Trade Federation (CU). This is a very sober and serious quest.

But it should be fun too!

This is embedded in the tagline for the CU: to make the Caribbean a better place to live, work and play.

In this vein, we present these Financial Crisis Jokes:

Q: How do you define optimism?

A: A banker who irons five shirts on a Sunday.

Q: What’s the difference between a banker and a large pizza?

A: The pizza can still feed a family of four.

As a surprise, a chief exec’s wife pops by his office. She finds him in an unorthodox position, with his secretary sitting in his lap. Without hesitation, he starts dictating: ‘. . . and in conclusion, gentlemen, credit crunch or no credit crunch, I cannot continue to operate this office with just one chair.’

Q: Why have real estate agents stopped looking out of the window in the morning?

A: Because otherwise they’d have nothing to do in the afternoon.

Q: What do you call five hedge fund managers at the bottom of the ocean?

A: A good start.

Q: What’s the difference between an investment banker and a pigeon?

A: The pigeon is still capable of putting down a deposit on a new Ferrari.

The credit crunch has helped me get back on my feet. The car’s been repossessed.

Q: What do you say to a hedge fund manager who can’t sell anything?

A: Quarter-pounder with fries, please.

Overheard in a NYC bar: ‘This credit crunch is worse than a divorce. I’ve lost half my net worth and I still have a wife.’

The bank returned a check to me this morning, stamped: ‘insufficient funds.’ Is it them or me?

A director decided to award a prize of $100 for the best idea of saving the company money during the credit crunch. It was won by a young executive who suggested reducing the prize money to $50.

Q: What’s the capital of Iceland?

A: About $3.50.

A man went to his bank manager and said: ‘I’d like to start a small business. How do I go about it?’ ‘Simple,’ said the bank manager. ‘Buy a big one and wait.’

Money talks. Trouble is, mine knows only one word: ‘Goodbye.’

A young man asked an elderly rich man how he made his money. ‘Well, son, it was 1932. The depth of the Great Depression. I was down to my last penny, so I invested that penny in an apple. I spent the entire day polishing the apple and, at the end of the day, I sold that apple for ten pennies. ‘The next morning I bought two apples, spent the day polishing them and sold them for 20 pennies. I continued this for a month, by which time I’d accumulated a fortune of $1.37. ‘Then my wife’s father died and left us $2 million.’

Q: What have an Icelandic bank and an Icelandic streaker got in common?

A: They both have frozen assets.

A reporter asked President Bush about his thoughts on the credit crunch. “Credit Crunch is ok”, he retorted, “but I really like Coco Puffs”.

If you don’t eat out as often as you used to it’s a recession. If you find yourself eating out more often, only it’s out of dumpsters, it’s a depression.

Now Back to Work!!

Download the Book- Go Lean…Caribbean Now!!!

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2008, Banks

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What Usain Bolt can teach banks about financial risk

Posted on April 11, 2014 in Economics, Industries, Social

Go Lean Commentary

There were 465 US bank failures between 2008 and 2012.^[a]

Joke: “The bank returned a check to me this morning, stamped: ‘insufficient funds.’ Is it them or me?”

The foregoing article shows the type of functions that technocrats do: evaluating risk. Any risk that can imperil the complete financial system must be monitored and mitigated. The “extreme value theory” is a model for evaluating risk and predicting future performance; and while not perfect, it is better than doing nothing.

There was no one performing this role in the Caribbean in 2008.

The foregoing article and its reliance on calculus, quantitative methods and econometric modeling is an example of the required technocratic oversight in managing an economy. Usain Bolt is used here as an allegory, a fable. The Economist magazine thusly explains how complex issues can be taught with simplified analogies and illustrations. Banking is more complex than track-and-field; but the pursuit of excellence is similar. Just like any world-class athletic pursuit, this goal is hard to master.

The Economist explains…

THE banking industry did a bad job in the run-up to the financial crisis of assessing “tail risks”, extreme events that represent the least likely of a range of probable outcomes. The Basel Committee on Banking Supervision, which is the international standard-setter for bank capital, has proposed changes in the internal risk models that financial institutions use. In particular, it wants banks to shift from a technique called “value-at-risk” (VaR) to one called “expected shortfall” (ES).

VaR is a way of measuring a firm’s risk of suffering really big losses over a certain period (a day, a week, a month) to a certain level of “confidence”. A daily VaR of $1m at 1% probability means that there is a 99% chance that you will not lose more than $1 [million] on any one day. The problem is that if you have that one bad day in 100, the potential losses could go much higher than $1 [million]. VaR doesn’t have much to say about what those losses might be. The expected-shortfall approach is meant to provide an answer to that question. Instead of asking, “What are the chances that things get so bad that we lose $1 [million]?” it asks, “If things do get that bad, how much would we actually lose?”

To do this, it uses a statistical method called “extreme value theory”, which looks specifically at what happens in the tail of distributions. To take a more trivial example of where extreme-value theory has been used, a 2011 paper by two researchers at Tilburg University collected data on the personal bests of elite athletes between 1991 and 2008, in order to try and calculate the “ultimate world record” for 100m sprints—the absolute edge of human performance given the times, equipment and drugs-policies that then prevailed. For the 100[meter] for men, the boffins (British slang for technical expert) put the ultimate world record at 9.51 seconds, compared with the record that then prevailed of 9.72, and a current world best of 9.58, set by Usain Bolt in 2009. That looks pretty good: the model came up with a number that was well inside the mark that then prevailed, and is still a hefty improvement on the current record. If extreme-value theory is meant to help banks think through the extremes, this is encouraging.

But like every model in history, expected shortfall cannot predict the future. In an earlier 2006 paper, researchers from the same university tried to calculate ultimate world records for a wider range of events, including the men’s marathon. The researchers reckoned back in 2006 that the best possible running of that distance would yield a time of two hours, four minutes and six seconds. Yet the world record today stands at two hours, three minutes and 23 seconds (Wilson Kipsang in 2013). To be fair to the researchers, they did not claim that their ultimate record could not be broken. But whether bankers will remember that reality can be worse than expected is a different question. Expected shortfall is an improvement on VaR; it is not a crystal ball.
The Economist (Retrieved 04/09/2014) – http://www.economist.com/blogs/economist-explains/2014/04/economist-explains-4

The book, Go Lean…Caribbean, serves as a roadmap for the implementation of the Caribbean Union Trade Federation (CU). The book presents the CU as a technocracy, to ensure economic failures of the past do not re-occur. From the outset, the book identified that the Caribbean is in crisis, with the pronouncement that a “crisis is a terrible thing to waste”. The prime directive of the CU is to optimize economic, security and governing engines to impact the Caribbean’s Greater Good, for residents … and bank depositors. This was pronounced in the Declaration of Interdependence – (Page 13):

xxv. Whereas the legacy of international democracies had been imperiled due to a global financial crisis, the structure of the Federation must allow for financial stability and assurance of the Federation’s institutions. To mandate the economic vibrancy of the region, monetary and fiscal controls and policies must be incorporated as proactive and reactive measures. These measures must address threats against the financial integrity of the CU and of the member-states.

In line with the foregoing article, the Go Lean book details some infrastructural enhancements/advocacies to the region’s financial eco-system; to facilitate efficient management of the economy:

Fostering a Technocracy (Page 64)
Caribbean Central Bank (Page 73)
Deposit Insurance Regulations (Page 73)
Securities Regulatory Authority (Page 74)
Modeling the European Union / Central Bank (Page 130)
Lessons from 2008 (Page 136)
Banking Reforms (Page 199)

The mis-management of the economy has led to many episodes of “fight-or-flight” among Caribbean society. For many member-states, their Diaspora is more than half their population; i.e. Jamaica and Puerto Rico.

While there is no crystal ball, according to the foregoing article, there is much that can be done. Now is the time for the CU!

The purpose of this roadmap is to make the Caribbean, a better place to live, work and play. No more flight! Now we stand and fight with these technocratic weapons of modern economics.

Download the book Go Lean … Caribbean – now!

———-

Appendix Reference:
[a]. https://news.yahoo.com/facts-numbers-us-bank-failures-183852568.html

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2008, Banks, Crony-Capitalism, Play, Security, Sports

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How Nigeria’s economy grew by 89% overnight

Posted on April 9, 2014 in Economics, Planning

Go Lean Commentary

These words jump off the page in reviewing the foregoing article:

Nigeria has a deserved reputation for corruption, so a skeptic might think the doubling of its economy a result of fiddling the numbers.

The publishers of the book Go Lean…Caribbean are among the skeptics.

The measurement of Gross Domestic Product (GDP) is a very important function for the governing authorities of any state. This point is strongly advocated in the Go Lean book, serving as a roadmap for the introduction and implementation of both the Caribbean Union Trade Federation (CU) and the independent, yet aligned Caribbean Central Bank (CCB). These institutions depend on (and will ensure) accurate GDP calculations.

What is so wrong with an 89% overnight GDP jump? Isn’t a jump in GDP indicative of successful economic policies for a country’s administration? Yes!

But 89% is beyond common sense and sensibilities! See the full news article, here:

ON SATURDAY, April 5th, South Africa was Africa’s largest economy. The IMF put its GDP at $354 billion last year, well ahead of its closest rival for the crown, Nigeria. By Sunday afternoon that had changed. Nigeria’s statistician-general announced that his country’s GDP for 2013 had been revised from 42.4 trillion naira to 80.2 trillion naira ($509 billion). The estimated income of the average Nigerian went from less than $1,500 a year to $2,688 in a trice. How can an economy grow by almost 90% overnight?

Nigeria has a deserved reputation for corruption, so a skeptic might think the doubling of its economy a result of fiddling the numbers. In fact it is the old numbers that are dodgy. An economy’s real growth rate is typically measured by reference to prices in a base year. In Nigeria the reference year for the old estimate of GDP was 1990. The IMF recommends that base years be updated at least every five years. Nigeria left it far too long; as a result, its old GDP figures were hopelessly inaccurate.

The new figures use 2010 as the base year. Why was the upgrade so big? To come up with an estimate of GDP, statisticians need to add together estimates of output from a sample of businesses in every part of the economy, from farming to service industries. The weight they give to each sector depends on its importance to the economy in the base year. A snapshot of Nigeria’s economy in 1990 gave little or no weight to fast-growing parts of the economy such as mobile telephony or the movie industry. At the time the state-owned telephone company had a few hundred thousand customers. Today the country has 120m mobile-phone subscriptions. On the old 1990 figures, the telecoms sector was less than 1% of GDP; it is now almost 9% of GDP. Motion pictures had not shown up at all in the old figures, but the industry’s size is now put at 1.4% of GDP. Nigeria’s number-crunchers have improved the gathering of statistics in other ways. The old GDP figures were based on an estimate of output. The new figures are cross-checked against separate surveys of spending and income. The sample on which the data are based has increased from around 85,000 establishments to 850,000. Only businesses with a fixed location are included: the traders who weave precariously between the traffic are not captured. Even so, many small businesses are now part of the GDP picture.

Of course, Nigerians are no richer than they were on Saturday night. The majority of the country’s 170m people live on less than a dollar a day. What the revised GDP figures show is that its economy is far more than just an oil enclave, exporting crude to pay for imported goods from richer countries. The oil industry’s share of GDP is now put at just 14%, compared with 33% according to the old figures. Manufacturing is much larger than previously thought. Services are booming. It is still a tough place in which to do business. But any company or investor who wants exposure to Africa’s fast-growing markets cannot afford to pass the continent’s largest economy by.
Source: The Economist Magazine – Retrieved 04/08/2014 from: http://www.economist.com/blogs/economist-explains/2014/04/economist-explains-2

According to the foregoing article, the current GDP determination may be correct, while the previous GDP figures may be wrong. A better approach may have been to correct and methodically adjust the base year (1990) slowly over a period of some years.

Why is accurate GDP so important? The lessons from Greece (years: 2000-2010) are too vivid! GDP growth measures success in economic engines. From a Central Bank perspective, the measure of GDP contributes to the determination of the money supply (M0 and M1). Too much currency in circulation can result in devaluation. This fate has been the affliction for many Caribbean member-states. The book describes the dilemma of currency/economic mis-management and their impact on Caribbean society; this is one of the “push” factors contributing to human flight; (Anecdote 16 – Caribbean Currencies, Page 149). Assuaging further human flight/brain drain is a prime directive of the Go Lean roadmap for the CU. This point is pronounced in the opening Declaration of Interdependence – Page 13:

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

The Go Lean roadmap calls for confederating all 30 member-states of the Caribbean, despite their language and legacy, into an integrated Single Market, with a unified currency, Caribbean Dollar (C$). The end result after 5 years, not overnight, would be the growth in GDP from $378 Billion (per 2010) to $800 Billion. This growth is based on new jobs, industrial output and lean operational efficiency, not fiddling with the accounting numbers.

The book posits that the adoption of electronic payment systems by the governing entities (e-Government – Page 168), and fostering Electronic Commerce (Page 198) will Mitigate Black Markets (Page 165), thus reducing the guesswork of statistical abstracts. Thus, the CU will be able to better Measure the Progress (Page 147) of the Go Lean roadmap, and make the required course correction; this is a path to indisputable success.

Download the free e-Book of Go Lean … Caribbean – now!

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Foreign Policy, Image, Power

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PetroCaribe press ahead with plan to eradicate hunger & poverty

Posted on April 8, 2014 in Economics, Ethos, Industries, Social

Go Lean Commentary

“He who has the gold makes the rules”; this is considered the golden rule. Today, oil is considered Black Gold. This succinctly describes the status of PetroCaribe and its regional campaign.

The foregoing news article speaks of PetroCaribe and ALBA, two economic integration initiatives by Hugo Chavez (1954-2013), the late President of Venezuela. He proved to be impactful, yet polarizing. His advocacy of socialism often brought him at odds with other western democracies, especially the US. But still, Chavez and Venezuela as a whole wield great power in Latin America and the Caribbean due to their abundance of resources and oil reserves.

The publisher of the book Go Lean…Caribbean, SFE Foundation, is a Community Development Foundation, constituted with members of the Caribbean Diaspora. The book’s first chapter defines the character and objective:

The SFE Foundation is not a person; it’s an apolitical, religiously-neutral, economic-focused movement, initiated at the grass-root level to bring change back to the Caribbean homeland – no one Caribbean State is favored over another. The SFE Foundation is not affiliated with the CariCom or any of its agencies or institutions. This movement is not an attempt to re-boot the CariCom, but rather a plan to re-boot the Caribbean

The same as is said about CariCom, in the above text, can be applied to PetroCaribe and ALBA.

CARACAS, Venezuela — The action plan for the eradication of hunger and poverty in the economic zone of PetroCaribe is showing significant progress. In order to define the specific intervention initiatives for each country, representatives from 17 Caribbean and Central American nations met in Caracas, Venezuela on 3 and 4 April 2014.

The meeting was opened by the vice-president for social areas of Venezuela, Hector Rodriguez, who emphasized on the importance of PetroCaribe for the region, noting that “this is a proposal that seeks equality based on diversity”.

Referring to the results of the action plan for the eradication of hunger and poverty, he stated, “We have the strategic goal of making the Caribbean a hunger free region.”

On this occasion, countries presented their concrete initiatives to eradicate hunger and poverty locally. The Executive Secretariat of PetroCaribe, with technical assistance from Food and Agriculture Organization (FAO) of the United Nations, will evaluate the proposals based on the guidelines set out in the action plan, which were approved by all the countries in the region. Selected projects will receive implementation funding from PetroCaribe.

At the meeting, the president of PDV Caribe and ALBA executive secretary, Bernardo Alvarez, emphasized the efficient implementation of the action plan: “We must congratulate ourselves on the important progress we have made in implementing the action plan for the eradication of hunger and poverty.”

Alvarez highlighted the leadership of FAO director general, José Graziano da Silva, in the creation of this regional initiative to end hunger: “This would not be possible without the inspiration of the director general of FAO, who was the creator of the Zero Hunger program in Brazil during the government of President Lula.”

The FAO regional representative for Latin America and the Caribbean, Raúl Benítez, noted, “The action plan to eradicate hunger and poverty is an example for everyone. This initiative is a concrete response to the 47 million people who still suffer hunger in Latin America and the Caribbean.”

Benitez acknowledged the commitment of the countries of the region, and Venezuela in particular, in the fight against hunger: “Venezuela is not only an example of a country that managed to defeat undernourishment in its territory, but it is an example of solidarity with an entire region.”

Meanwhile, executive secretary of PetroCaribe, Asdrubal Chavez, expressed optimism about the results of the action plan. “We could even reach our goals sooner than planned,” Chavez said.

The action plan is part of the priorities of the Community of Latin American and Caribbean States (CELAC), and the Hunger-Free Latin America and the Caribbean Initiative, a commitment of 33 countries of the region to eradicate malnutrition by 2025. Its aim is to strengthen food and nutrition security of member states of the PetroCaribe and ALBA economic zone through national and regional hunger eradication projects.

The book Go Lean…Caribbean, serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This will serve as an integrated entity among Caribbean member-states; many of which are also members of PetroCaribe and ALBA; see Appendices below. So the advantageous characteristics of the SFE Foundation and the Caribbean Union as apolitical entities are manifested in this Go Lean effort.

According to the foregoing article, hunger and poverty are still major concerns in the Caribbean. The underlying motivation of the Go Lean book is brotherly love. Therefore who so ever, brings a solution to feed our hungry, poor brothers and sisters should be welcomed and embraced, despite their political affiliation. The roadmap is not “pro” or “con” American, but rather pro solutions; in fact the CU is described as a technocracy with a focus on delivery and merit, rather than ideologue or politics.

The Go Lean roadmap does align with many of the objectives of PetroCaribe as detailed in the foregoing article. The CU’s goal is to integrate the Caribbean member-states for permanent economic empowerment. As a result, many social benefits will flow. For example, the roadmap defines 10 [successful] Battles in the War Against Poverty (Page 222) and 10 Ways to Help the Middle Class (Page 223).

A basic economic principle is that education lifts people out of poverty. So the roadmap prioritizes education along with food, clothing, shelter, healthcare and energy as basic needs. The CU is to foster the eco-system to better deliver these basic needs of life for Caribbean people. In all, to make the Caribbean a better place to live work and play.

Download the book – Go Lean … Caribbean now!!!

———–

Appendix – PetroCaribe
PetroCaribe is an oil alliance with Venezuela which allows the purchase of oil on conditions of preferential payment. The alliance was launched on 29 June 2005 in Puerto La Cruz, Venezuela. In 2013 PetroCaribe agreed to links with the Bolivarian Alliance for the Americas (ALBA), and to go beyond oil and promote economic cooperation. It is now considered an “economic zone”.

The PetroCaribe agreement was initiated with the aim of having solidarity with other countries in accordance with ALBA. The payment system allows for purchase of oil on market value for 5%-50% up front with a grace period of one to two years; the remainder can be paid through a 17-25 year financing agreement with 1% interest if oil prices are above US$40 per barrel. The agreement builds on payment terms from the San Jose Agreement and the Caracas Energy Accord. Energy and Petroleum Minister and President of PDVSA Rafael Ramírez said of the deal that it seeks to cut out the middleman in such transactions: “We’re not talking about discounts…We’re talking about financial facilities, direct deliveries of products, [and] infrastructure.”

There are a total of 17 members, plus Venezuela; 12 of the members are from the 15 member CariCom (excluding, Barbados, Montserrat and Trinidad and Tobago). At the first summit, 14 countries joined the alliance. These were: Antigua and Barbuda, the Bahamas, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guyana, Jamaica, St Lucia, St Kitts and Nevis, Saint Vincent and the Grenadines, Suriname and Venezuela. At the third summit, Haití and Nicaragua joined the union. Guatemala joined in July 2008 but left the organization in November 2013 stating that Venezuela had not provided them with the ultra-low financing rates that they had been promised.

Haiti finally joined the alliance in April 2006. Honduras became the 17th member of the alliance in December 2007, under President Manuel Zelaya. Belize set up the Belize Petroleum Energy Company to coordinate for the project.

Appendix – ALBA
The Bolivarian Alliance for the Americas (Spanish – ALBA: Alianza Bolivariana para los Pueblos de Nuestra América) is an intergovernmental organization based on the idea of the social, political and economic integration of the countries of Latin America and the Caribbean. The name “Bolivarian” refers to the ideology of Simón Bolívar, the 19th-century South American independence leader born in Caracas who wanted the continent to unite as a single “Great Nation.”

ALBA is associated with socialist and social democratic governments wishing to consolidate regional economic integration based on a vision of social welfare, bartering and mutual economic aid. ALBA nations may conduct trade using a virtual regional currency known as the SUCRE. Venezuela and Ecuador made the first bilateral trade deal using the Sucre, instead of the US dollar, on July 6, 2010.

ALBA members include Antigua & Barbuda, Bolivia, Cuba, Dominica, Ecuador, Nicaragua, Saint Vincent & the Grenadines, Venezuela, Saint Lucia, and Suriname.

Appendix – SUCRE
A regional currency to be used in commercial exchanges between members of the regional ALBA trade bloc, which was created as an alternative to the [proposed-but-never-ratified] Free Trade Agreement of the Americas (FTAA). The SUCRE is intended to replace the US dollar as a medium of exchange in order to decrease US control of Latin American economies and to increase stability of regional markets.

The acronym is in Spanish, as: Sistema Único de Compensación Regional. In English, this means: Unified System for Regional Compensation

International trade between member states in SUCRE exceeded $850 million in 2013.

Eventually, the plan is for the SUCRE to become a hard currency.

Appendix – Referenced Sources:

• “PetroCaribe Meets in Venezuela, Links with ALBA”. Retrieved 6 April 2013 from: http://venezuelanalysis.com/news/9087.

• “ALBA Summit Ratifies Regional Currency, Prepares for Trinidad”. Michael Fox, Venezuela Analysis. Retrieved 17 April 2009 from: http://venezuelanalysis.com/news/4373

• Wikipedia treatment for subject PetroCaribe. Retrieved April 7, 2014 from: http://en.wikipedia.org/wiki/Petrocaribe

• Wikipedia treatment for subject ALBA. Retrieved April 7, 2014 from: http://en.wikipedia.org/wiki/ALBA

• Wikipedia treatment for subject SUCRE. Retrieved April 7, 2014 from: http://en.wikipedia.org/wiki/SUCRE

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CariCom, Foreign Policy, Poverty, Power, Trade, Transform, Venezuela

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Grenada PM Urges CARICOM on ICT

Posted on April 8, 2014 in Economics, Ethos, Government, Industries, Planning

Go Lean Commentary

It’s “Better in the Bahamas” – Tagline. But don’t bring your mobile phone!

The publisher of the book Go Lean…Caribbean, SFE Foundation, is a Think Tank/Community Development Foundation, constituted with members of the Caribbean Diaspora. They frequently travel throughout the region. The dilemma cited in the below news article, mobile roaming fees, has personal application for the SFE Foundation, (and all those who live, work and play in the Caribbean).

One director, while visiting the Bahamas, incurred mobile roaming charges in excess of $650 for doing … nothing; no phone calls, no text messages, no internet browsing. The reason was later explained by his US-based mobile carrier that the smart-phone was on! The pinging/synchronizing to the cellular towers generated those charges. So the subscriber got no benefit, but still incurred an exorbitant bill. This experience is not isolated; it has been reported time and again, especially by cruise ship passengers.

How’s that for extending hospitality to our guests and visitors?!

A mobile phone is ubiquitous in North America and Europe, the source of most Caribbean tourists. In addition, many people use their mobile devices for non-connected functions: camera, calendar, address book and even as a watch, to tell time. Imagine the shock and bad “after taste” for visiting the Caribbean and receiving a $600 phone bill for doing … nothing. See article here:

By: The Caribbean Journal Staff
Continuing his push for information and communication technology (ICT) development in the region, Grenada Prime Minister Dr. Keith Mitchell urged CARICOM heads of government to enhance the region’s ability to compete on the “global stage.”

Mitchell, addressing the CARICOM Heads of Government meeting at the Buccament Bay hotel in St Vincent, outlined a five-pronged plan for ICT development.

The Prime Minister’s five priority areas for ICT development included a single CARICOM ICT space; “bringing technology for the people,” cyber security, mobilization of resources and “developing the CARICOM digital agenda 2025.”

Mitchell holds the responsibility for ICT in CARICOM.

“Of course at the lowest denominator this must translate to job creation for a significant larger percentage of our citizens which ultimately will lead to a prosperous society with corresponding consequences of crime reduction and allow our citizens to live meaningful lives,” Mitchell said. “At the member state level, this requirement is well understood and there is sufficient evidence to support that leaders have positioned ICT as a development priority for their country.”

It’s the latest call for technological development in the region. Mitchell made headlines last year for urging the elimination of mobile roaming fees in the region, a call which was soon followed by Digicel’s announcement that it would be abolishing them.

“We observe that there exist intrinsic barriers to ICT infusion and adoption in countries referred to as Small Island Developing States (SIDS),” Mitchell said. “It would be terribly remiss if we do not amplify the ICT barriers as having equal, if not more urgency, than the environmental, economic and social vulnerabilities already identified and articulated for discussion.”
Source: Caribbean Journal – Regional Online News Source; retrieved 03/10/2014 from: http://www.caribjournal.com/2014/03/10/grenada-pm-urges-caricom-on-ict/

Regional coordination and promotion of Internet and Communications Technologies (ICT) is a critical mission and motivation of the Caribbean Union Trade Federation (CU). The book, Go Lean…Caribbean, serves as a roadmap for a methodical implementation of the CU over a 5 year time-span. The roadmap commences with a Declaration of Interdependence. In Verse XXVII (Page 14) it pronounces:

Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

In line with the foregoing article, the Go Lean roadmap details many of the precepts of the Single ICT Space and the vision of the Grenada Prime Minister, the Committee Head for CARICOM Technology matters. The book features direct advocacies to:

• Help Entrepreneurship (Page 28)

• Promote Intellectual Property (Page 29)

• Bridge the Digital Divide (Page 31)

• Impact Social Media (Page 111)

• Foster Technology (Page 197)

• Foster Electronic Commerce (Page 198)

All in all, the roadmap posits that this plan can create 2.2 million new jobs.

How? When? “Go Lean…Caribbean” provides the turn-by-turn directions!

Single ICT Space

The initiative of a single ICT space for CARICOM calls the Caribbean member-states “to figure out how to leverage ICT as a platform for regional development” and that “the key recommendation of the Regional Digital Development Strategy is that we seek to transform ourselves from 15 sovereign states to a Single ICT Space.” – Grenada Prime Minister Dr. Keith Mitchell.

The Single ICT space initiative will aim to complement the flagship regional programme, the CARICOM Single Market and economy (CSME). Suggested characteristics of the Single ICT Space include: consistent rules across the Region, a single mobile numbering plan and consequent removal of roaming charges for intra-regional calls, and CARICOM Copyrights which could foster renewed entrepreneurship and innovation.

Considerable benefits are expected to be realised if a single ICT space can be established. In addition to improved economies of scale and scope, a single ICT space can lead to a more coherent approach in addressing a broad range of ICT-related issues in the region, which is urgently needed. More importantly, if done correctly, increased competitiveness and growth in the individual countries and the region as a whole could also eventuate.

At this 25th Inter-Sessional Meeting of the Conference in St. Vincent & the Grenadines, Dr. Ralph Gonsalves, Prime Minister of St. Vincent said that a Roadmap towards unveiling the Single Information Communication Technology ICT Space as the digital layer of the CARICOM Single Market and Economy (CSME) over the next two years would be developed and presented to the Heads of Government Meeting in July 2015. This roadmap would include elements such as spectrum management, bringing technology to the people and transforming them to digital citizens, diaspora re-engagement, cyber security and public-private partnerships. Developing a Single CARICOM ICT Space to enhance the environment for investment and production was identified as one of the key areas that the Community should undertake in the short-term to become competitive. As envisioned by its framers, the Single ICT Space will encompass the management of Regional information, human resources, legislation and infrastructure in the sector to elicit maximum benefit for the Region’s populace.

The Single ICT space and the Region’s Digital Agenda 2025 will be constructed on the foundation of the Regional Digital Development Strategy (RDDS) which was approved in 2013, and will also have inputs from the Commission on the Economy and the Post-2015 Agenda.

Download the book Go Lean … Caribbean now!

=================

Appendix – References:

• Caribbean Community Secretariat Press Release: http://www.caricom.org/jsp/pressreleases/press_releases_2014/pres49_14.jsp

• Wikipedia treatment for subject CariCom Single ICT space. Retrieved April 7, 2014 from: http://en.wikipedia.org/wiki/Caribbean_Community#Single_ICT_Space

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Barbados Central Bank records $3.7m loss in 2013

Posted on April 4, 2014 in Economics, Planning, Strategy

Go Lean Commentary

How does a Central Bank lose money? This seems plausibly impossible.

Without detailing the anatomy of the banking system, here are a few facts that make this foregoing news article so inconceivable. A Central Bank compels a reserve requirement from all commercial banks within its jurisdiction. So for every $100 in deposits, a commercial bank would have to leave a secured amount, say $12 on hand at the Central Bank. The commercial bank can thusly only loan the residual $88 in this example. Control (raising/lowering) that reserve requirement percentage rate is how Central Banks control the money supply, interest rates and inflation – the economy.

So with no effort, a Central Bank gets a slice of every deposit in its jurisdiction, a country. This role/responsibility is so important that many view the Chairman of the US Central Bank, the Federal Reserve, as the most powerful man in the country; even more so than the President.

So despite all this power, how can a Central Bank possibly lose money?

A Central Bank also has the ability to create “money from thin air”, by buying and selling treasury bonds on the securities markets. This too is a method for Central Banks to control the money supply. An accounting entry on the ledger creates the liquidity to buy bonds (increase money supply) or sell bonds (contract the money supply).

With this system in place, a Central Bank prints and issues the hard currency for a country. For them to lose money gives the impression that their currency has no/little value.

Imagine, the Governors/Directors of the Central Bank of Barbados are to be considered the stewards of Barbados’s economy…and they posted a loss for fiscal 2013! (The Bible analogy of “the blind leading the blind” comes to mind!)

BRIDGETOWN, Barbados, Thursday April 3, 2014, CMC – The Central Bank of Barbados (CBB) says it recorded a loss of BDS$3.7 million (One BDS dollar = US$0.50 cents) last year as it focused on restoring macroeconomic stability to the domestic economy.

The CBB in its 2013 annual report submitted to the govern-ment on Monday said that while its operating costs were largely unchanged, “the continuing weak investment climate for the low-risk securities that the Bank is permitted to hold continued to depress income.

“The Bank is reviewing options to contain expenditure over the medium term,” it added.

In its report, the CBB said that it focused on restoring macro-economic stability to the domestic economy as a weak performance of the key export sectors together with significantly lower foreign capital inflows constrained economic growth prospects.

“These developments placed pressure on foreign reserves, triggering a major policy adjustment to contain the erosion of the reserves, sustain the exchange rate anchor, reduce the fiscal deficit and slow the growth of Government debt.”

The CBB said the primary tool of policy was fiscal consolidation, reflected in increased taxation and expenditure-reducing measures.

“At the same time, the Bank continued to encourage the revitalisation of economic activity through growth in the tourism, agro-processing, international business and financial services, and alternative energy industries. “

It said that given the challenges facing the economy, the CBB stepped up its engagement with its stakeholders through a number of initiatives including presentations by internationally renowned speakers.

The CBB said in 2013 it introduced a new interest rate policy framework, designed to rationalise the process for adjustment of domestic interest rates.

“The policy permits virtual liberalisation of the minimum deposit rate, apart from ordinary savings accounts of individuals and non-profit organisations. This allows financial institutions to now set other deposit rates, while continuing to set lending rates.

“The policy also provides for intervention of the Bank in the Treasury Bill market, with the Treasury Bill rate now being used as a basis for determining rates for long term securities, along a notional yield curve which the Central Bank publishes.“

The Central Bank of Barbados said that the financial system remained stable during 2013 with banks profitable and well- capitalised.

It said the Financial Services Commission, which oversees the regulation of non- bank financial institutions, signed a memorandum of understanding with the Central Bank aimed at strengthening the monitoring of the financial system.

The CBB said for the first time in its 40-year history it has completely overhauled the design of the Barbados’ bank notes.

“In the past, only minor modifications had been made to the original series. The new series issued on June 4, 2013 replaced old and worn-out notes and there are enhanced security features that will make the new notes difficult to counterfeit and easier for the public to authenticate.”

The foregoing news article aligns with the prime directive of the book Go Lean … Caribbean to re-boot the economic engines of the Caribbean. The book narrates, thru anecdotes and statistical abstracts, the pain and suffering of previous mis-management of Caribbean currencies. The book then asserts that any regional effort to optimize the economy must be partnered with technocratic management of monetary affairs. As such, the book serves as a roadmap for the introduction and implementation of both the Caribbean Union Trade Federation (CU) and the independent, Caribbean Central Bank (CCB).

Before addressing the technical issues, the CU assumes a sentinel position to cautiously protect and promote image and branding of Caribbean people, culture and systems of commerce. The foregoing headline is a “call to arms” for this mission.

Monetary and currency issues are intertwined with any discussion of elevating the Caribbean’s economy. This issue is explored in full details in the book, commencing with the roadmap focus of the Declaration of Interdependence, pronouncing the need for astute management of the money supply with these statements (Page 13 & 14) respectively:

xxi. Whereas the legacy of international democracies had been imperiled due to a global financial crisis, the structure of the Federation must allow for financial stability and assurance of the Federation’s institutions. To mandate the economic vibrancy of the region, monetary & fiscal controls and policies must be incorporated … [to] address threats against the financial integrity of the Federation and member-states.

xxix. Whereas all Caribbean democracies depend of the free flow of capital for municipal, public and private financing, the institutions of capital markets can be better organized around a regional monetary union. The Federation must institute the controls to insure transparency, accounting integrity and analysis independence of the securities markets, thereby shifting the primary source of capital away from foreign lenders to domestic investors, comprising institutions and individuals.

The roadmap is to confederate all the 30 member-states of the Caribbean, despite their language and legacy, into an integrated “single market”, with a unified currency, Caribbean Dollar (C$). This follows the model of the European Union and the European Central Bank with the world’s strongest currency, the Euro.

The book maintains that the security of the Caribbean is inextricably linked to the economy of the Caribbean; as such there is the need for federal oversight, monitoring and mitigations of threats, risks and casualties for the integrated market and the related systems of commerce.

These above comments address the “coulda-woulda-shoulda” aspects of the foregoing news article. The Go Lean roadmap also brings a sense of reality to the focus of economic empowerment in the Caribbean. This means that “it is what it is”. So why did the Central Bank of Barbados post a $3.7 Million loss for 2013?

This requires a sober assessment; the managers for the bank are duly qualified. Dr. DeLisle Worrell was appointed as Governor of the Central Bank on November 1, 2009. He is an acclaimed Economist, author and professor; he is a subject-matter-expert (SME) for small island economics, having authored a book entitled SMALL ISLAND ECONOMIES; he is a technocrat!

The foregoing article alludes that the loss was due to the volatility of foreign exchange (Fx) management. It is these kinds of issues that the Go Lean roadmap targets for mitigation and better management. The book posits that the problems of Caribbean currencies are too big for any one member-state to resolve, that the best solution is to confederate the 30 member-states, and their Central Banks, into a “single market” Central Bank for the unified C$ currency – a cooperative of banks. Since the Barbados dollar alone cannot garner the volumes for respect and participation in the international Fx markets, this SMALL ISLAND ECONOMY must “fend for its life” as best it can, buying and selling US dollars in the open market to control the amount/value of the Barbadian dollar. This process is “hit-and-miss”. For 2013, it was a “miss”!

The strategies, tactics, implementations for the Caribbean Union Trade Federation & Caribbean Central Bank management of the economy are detailed in the Go Lean roadmap. Here are sample selections from the book:

Separation-of-Powers: Central Bank – Currency Printing/Engraving	Page 73
Separation-of-Powers: Depository Insurance & Regulatory Authority	Page 73
Separation-of-Powers: Securities Exchange Regulatory Agency	Page 74
Separation-of-Powers: Emergency Management	Page 76
10 Ways to Better Manage Debt	Page 114
10 Ways to Promote Independence	Page 120
10 Ways to Model the EU	Page 129
10 Lessons Learned from 2008	Page 135
10 Ways to Control Inflation	Page 153
10 Ways to Better Manage Foreign Exchange	Page 154
10 Ways to Mitigate Black Markets	Page 165
10 Ways to Foster Cooperatives	Page 176
10 Reforms for Banking Regulations	Page 199
10 Ways to Impact Wall Street	Page 200

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