Debt – Page 2 – Go Lean…Caribbean

Tag: Debt

Pressed by Debt Crisis, Doctors Leave Greece in Droves

Posted on July 1, 2015 in Economics, Planning, Social

Go Lean Commentary

Poor economic conditions are forcing a brain drain among a country’s professionals. Yes, we understand all too well.

This is the crisis for Greece! This is the crisis for the Caribbean, as well!

This is a consistent theme in the book Go Lean…Caribbean. The book posits that the events in Greece are relevant for the Caribbean, North America and the world economy as a whole. What’s worse is that many Caribbean member-states are in the same situation.

Greece is the weak link in the Eurozone; it is inching closer to defaulting on its debt. The country has been in a long standoff with its European creditors on the terms of a multibillion-dollar bailout. If the country goes bankrupt or decides to leave the 19-nation Eurozone, the Greek debt crisis could create instability in the region and reverberate around the globe. (Since this debt crisis began in 2010, most international banks and foreign investors have sold their Greek bonds and other holdings; they are not as vulnerable to what happens in Greece now).

“A crisis is a terrible thing to waste” – states the Go Lean book quoting noted Economist Paul Romer. The opportunity therefore exists to forge change in the economic, security and governing engines of communities, in response to crises.

This story (see VIDEO below) shows that the rest of the world are all paying attention to this crisis in Greece, but few are thinking of the impact on the professional classes. This is of paramount interest to the planners of a new Caribbean, the publishers of the Go Lean book. The purpose of the book is to position the region at the corner of preparation and opportunity, so as to benefit from change. The issue from this article is more pressing for the Caribbean, as we share, as a region, a very high brain drain/emigration rate, estimated at 70%. See article here and VIDEO below:

Title: Pressed by Debt Crisis, Doctors Leave Greece in Droves
By: Erik Olsen, Contributor, New York Times Online Site; posted July 1, 2015; retrieved from: http://mobile.nytimes.com/2015/07/01/world/europe/pressed-by-debt-crisis-doctors-leave-greece-in-droves.html

Greece is in the midst of the worst brain drain in modern history, experts say.

“This is unprecedented in terms of the numbers of educated people that are leaving,” said Lois Labrianidis, a professor of economic geography at the University of Macedonia in Thessaloniki.

The country is hemorrhaging talent, as professionals in medicine, engineering and academics flee for a better economic climate and more stable employment. The pain has been particularly severe in the health care sector of Greece: Many of the country’s doctors have left or are making plans to do so.

“I don’t feel safe and secure for the future of my family here,” said Spyridon Kotsaris, an Athens orthopedic surgeon who has been planning for months to leave Greece with his wife and two daughters, preferably to Germany or Switzerland.

“We want a better life,” he said. “A better life means we are all together and feel more secure.”

In all, nearly 300,000 people have left Greece since 2010, nearly 3 percent of the country’s population before the crisis, according to government statistics. That includes as many as 5,000 doctors, with about 3,500 of them ending up in Germany, where Europe’s financial crisis has had less impact.

“It’s not that big of a concern for me financially, because I work in Germany,” said Alexios Theodorou, a Greek general surgeon working at a hospital in Gummersbach in North Rhine-Westphalia. Mr. Theodorou left Greece five years ago, as the crisis was beginning.

“My paycheck is secured,” he said. “But that doesn’t make my concern about the future any less, as I have much family in Greece. Greece is where I still call home.”

In some ways, the loss of so much young talent may be more devastating to Greece in the long term than abandoning the euro, if that happens. That has left some who sought a better life feeling increasingly bittersweet about the decision to leave.

“I feel sad seeing my country going through this rough time,” Mr. Theodorou said. “We, the people who left, are not to blame for the situation, but we sometimes feel guilty that we are leaving, that we left the people there to handle their problems.”

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), a super-national institution with federal powers to forge change in the Caribbean region. One mission is incentivizing the return of the far-flung Caribbean Diaspora. Another mission is to dissuade further human flight/brain drain. The numbers don’t lie: we need population growth not population contraction.

The CU recognizes that the population numbers must work in favor of societal progress. Greece has lost 3% of its population since the start of this crisis in 2010, so this negative trend cannot be understated. There are many social safety nets that depend of the actuarial fact of population expansion, not contraction. Consider unemployment and pensions: for unemployment, workers pay into a fund and the temporarily unemployed file claims against that fund. Likewise with pensions: young workers pay into a fund, and the older-retired workers draw claims against that fund.

Thus, population contractions are definitely among the indices for a Failed-State status (Page 271).

The confederation of the CU is a reversal of the unfortunate trends inflicted on the Caribbean. The vision is to forge a Single Market of 42 million people in the 30 Caribbean member-states. Then the Go Lean roadmap provides the details for the creation of 2.2 million new jobs and GDP growth to accumulate to $800 Billion. This vision is at the root of the Go Lean roadmap, embedded 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.

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 Federation and of the member-states.

According to the foregoing New York Times article and the VIDEO below, Greece is in “hot water”. They need a remediation plan. Go Lean is the plan … for the Caribbean, not Greece. But we get to apply lessons learned from the experiences in Greece.

The following details from the book Go Lean … Caribbean are the community ethos, strategies, tactics, implementations and advocacies prescribed to manifest the reboot and empowerment efforts for the Caribbean economy, society and life in general:

Who We Are – SFE Foundation and 2008 Role	Page 8
Anecdote: Puerto Rico – The Greece of the Caribbean	Page 18
Community Ethos – Economic Systems Influence Individual Choices	Page 21
Community Ethos – Economic Principles – Money Multiplier	Page 21
Community Ethos – Governing Principles – Lean Operations	Page 24
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Impact Turn-Arounds	Page 33
Community Ethos – Ways to Impact the Greater Good	Page 37
Strategy – Vision – Confederate all 30 Member-States into a Single Market	Page 47
Strategy – Mission – Repatriating Caribbean Diaspora	Page 46
Strategy – Mission – Dissuade further Brain Drain	Page 46
Tactical – Confederating a Permanent Union	Page 63
Tactical – Fostering a Technocracy – Greek Sovereign Debt Case Study	Page 64
Implementation – Assemble all Member-States	Page 96
Implementation – Ways to Pay for Change	Page 101
Implementation – Reasons to Repatriate	Page 118
Planning – Ways to Model the European Union (EU)	Page 130
Planning – Ways to Improve Failed-State Indices	Page 134
Planning – Lessons Learned from 2008	Page 136
Planning – Lessons Learned from East Germany – Eventuality of Failed-States	Page 139
Planning – Lessons Learned from Detroit – The Need for Turn-around	Page 140
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Create Jobs	Page 152
Advocacy – Ways to Impact Entitlements – Austerity Lessons	Page 158
Advocacy – Ways to Improve Governance – Euro-Zone Budget Deficits Model	Page 168
Advocacy – Better Manage the Social Contract	Page 170
Advocacy – Impact the Diaspora	Page 217
Advocacy – Ways to Preserve Caribbean Heritage	Page 218
Advocacy – Ways to Help the Middle Class – Enforce the Social Contract	Page 223
Appendix – Failed-State Indicators and Definitions	Page 271

Broken economies can be fixed!

This is not the first economic crisis to be observed-and-reported on by Go Lean planners. The Go Lean book is a product of 2008 Financial Crisis and Great Recession. From this fallout, this roadmap was composed, by individuals intimate with the details of the crisis … and its causes; (Page 8). Their motivation: love of homeland.

While love of the Caribbean homeland is a strong motivator – as Greek expatriates in the below VIDEO express love of their homeland – the realities of a broken economy will still cause a brain drain. These flight-abandonment realities creates the need for a societal reboot in economics, security and governance. This is the quest of Go Lean…Caribbean roadmap, to reboot the region’s societal engines; employing best-practices and better strategies, tactics and implementations to impact its prime directives, identified with these statements:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines and mitigate challenges/threats to the region’s public safety.
Improvement of Caribbean governance to support these engines.

There are many Go Lean blog/commentaries that have echoed these points of societal abandonment. Here is a sample of related commentaries:

https://goleancaribbean.com/blog/?p=5088	Immigrants account for 1 in 11 Blacks in USA
https://goleancaribbean.com/blog/?p=4613	A Lesson in History: – Emigration from Ireland in History
https://goleancaribbean.com/blog/?p=4185	Caribbean Ghost Towns: It Could Happen…Again
https://goleancaribbean.com/blog/?p=2809	A Lesson in History: Economics of East Berlin – A Failed-State
https://goleancaribbean.com/blog/?p=2025	Caribbean Jobs – Attitudes & Images of the Diaspora
https://goleancaribbean.com/blog/?p=1596	Book Review: ‘Prosper Where You Are Planted’
https://goleancaribbean.com/blog/?p=1433	Caribbean loses more than 70 percent of tertiary educated to brain drain
https://goleancaribbean.com/blog/?p=841	Having less babies (and people) is bad for the Caribbean economy
https://goleancaribbean.com/blog/?p=599	Ailing Puerto Rico open to radical economic fixes

From the cradle-to-the-grave, the needs of a community – whether it is in the Caribbean, Greece or anywhere – cannot be casually dismissed. A crisis ensues, people respond, they make a choice: fight or flight.

In Greece, despite this great beauty, they are choosing flight:

In the Caribbean too!

We can do better! We must do better. Though success is not guaranteed, it can be forged with the adoption and application of best-practices. This requires the full participation – time, talent and treasuries – of all stakeholders: residents and Diaspora alike. This effort is not easy, but rather strenuous; the Go Lean book calls it “heavy-lifting”.

Strenuous, heavy-lifting – Yes – but the returns are worth the effort: making the Caribbean a better place to live, work and play.

This is the goal of the Go Lean roadmap. Everyone is urged to lean-in! 🙂

Download the book Go Lean … Caribbean – now!

———

Appendix VIDEO – Greece’s Doctor Brain Drain – http://video1.nytimes.com/video/2015/06/30/33813_1_greece-doctors-leaving_wg_240p.mp4

In part of a large brain drain that could affect Greece for decades, thousands of doctors have left the nation for Germany since the financial crisis began five years ago.

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2008, Debt, Diaspora, Health, Image, Jobs, Model, STEM

For-Profit Education: Plenty of Profit; Little Education

Posted on June 8, 2015 in Economics, Industries

Go Lean Commentary

Follow the money…

This is a familiar plot-line in Hollywood Police dramas. Its “life imitating art” because this is the same eventuality for the American For-Profit education industry. There is a lot of money available in the US for post-secondary education of American students. Federal Student Loans are available to any American citizen regardless of credit or income. This constitutes a fertile ground for abuse.

According to the following news article, this one education company Corinthian College – see Appendix A below – is a bad example of For-Profit schools making a lot of profit but providing very little education to its customers: students.

“Scratch a liar, catch a thief”.

The article is presented here:

1. Title: My college degree is worthless

Sub-title: Students across the country are shelling out tens of thousands of dollars for degrees that end up being completely worthless.

Rosalyn Harris, an unemployed single mother who had never gone to college, thought getting a degree would be the ticket to a new life. So at age 23, she enrolled in a two-year criminal justice program at for-profit Everest College in Chesapeake, Va.

But the wealth of job opportunities the school had touted never transpired, and all she ended up with was more than $22,000 in student loan debt. She said classes were terrible, she didn’t receive any of the training she needed, and as a result, she spent months after graduation searching for criminal justice jobs without ever getting a call back.

Desperate to start paying some of her bills, Harris eventually applied for any entry-level job she could find. A full year after she graduated, she finally found a minimum wage job stocking shelves at Victoria’s Secret.

“My sole purpose of going to school was bettering my life for me and my son,” she said. “But now I wish I had never gone.”

Everest is a member of for-profit behemoth Corinthian Colleges, which has been accused by federal agencies of operating a predatory lending scheme, preying on low-income students and falsely inflating job placement numbers. Corinthian is currently closing and selling its schools, leaving thousands of graduates on the hook for loans they took out.

A Corinthian spokesman confirmed that Harris graduated in good standing, but it was unable to place her in a job. He said the school did provide her with career assistance and claims the criminal justice program has a 75% job placement rate, which he said is “a strong outcome for any educational program.”

He also disputed the allegations against the school, noting that Corinthian’s student loan default rate (of up to 27% for its EverestCollege campuses) is lower than other community colleges and its graduation and job placement rates are higher.

And while Corinthian has a particularly bad reputation, the for-profit college industry as a whole is often criticized for luring low-income students with false promises and failing to provide educations that qualify students for jobs.

Not only that but for-profit schools are generally double or triple the cost of public institutions like community colleges, and the default rate (19% last year) was the highest of all sectors.

Vantrell Echols, a 36-year-old from Georgia, wishes he never received a phone call from for-profit Lincoln College of Technology back in 2008. He said the school spent six months convincing him to enroll — promising to provide all the training and help he needed to find a high-paying computer science job. He had been unemployed for more than a year and he was desperate, so he gave it a shot.

But upon enrolling in the computer science program, he said the quality of education “was a complete joke” and job assistance was nonexistent.

“They sold many of us dreams about helping us, getting us qualified to work, to help us with jobs, [but] I had to ask fellow students to help me because the teachers wouldn’t. Many of us graduated with honors but didn’t learn anything in our fields,” he said.

Lincoln Educational Services president Scott Shaw defended the school’s reputation to CNNMoney, touting its 75% job placement rate and pointing to examples of successful graduates like the CEO of VMWare (who graduated in 1979).

But Echols said that after accumulating more than $20,000 in debt to attend the one-year program, he wasn’t able to find a single job in computer science. He’s still unemployed, is now homeless — and he is convinced he’d be better off without the degree even listed on his resume.

He says multiple employers have told him that they don’t view his degree as credible because of the for-profit industry’s reputation and because other people they’ve hired from the school haven’t had the necessary skills for the job.

“They’ve ruined my life and the lives of many of my classmates,” he said.

Shaw said extensive career assistance was provided to Echols and that he isn’t sure why Echols couldn’t find a job. “There’s only so much we can do — at some point the student has to partake,” he said.

But these kinds of stories are popping up so often that even the Obama Administration took action this week. Going forward, for-profit colleges will risk losing federal student aid if average loan payments of graduates exceed 20% of discretionary income or 8% of total earnings.

“Too many hard-working students find themselves buried in debt with little to show for it,” Secretary of Education Arne Duncan said in a statement.

Senators Jeff Merkley of Oregon and Tom Harkin of Iowa are pushing for legislation that goes a step further. They argue that a loophole in federal laws allow some institutions to offer programs that aren’t licensed or accredited at the state or federal level. That means graduates end up with degrees that may sound legitimate but are meaningless to many employers.

The two senators introduced legislation last month aimed at cracking down on these “worthless degrees.” The legislation would require courses to be licensed before allowing schools to accept federal money like student loan dollars or financial aid.

“Passing this bill will ensure that a college can no longer charge thousands of dollars for a degree that does not prepare them to work in the field they were promised‎,” according to a statement about the bill.

Related: U.S. sues Corinthian Colleges
2. Title: Embattled for-profit education behemoth Corinthian Colleges is facing yet another legal fight: This time, from the Consumer Financial Protection Bureau.

The consumer agency announced Tuesday it is suing Corinthian for “illegal predatory lending” and is demanding that the school forgive more than $500 million in private loans it has given to students since July of 2011.

According to the CFPB’s complaint, Corinthian convinced students to enroll in the school by inflating its job placement rates. It even paid employers to hire graduates for at least one day in order to boost its numbers.

Meanwhile, Corinthian’s tuition and fees — which can climb to as high as $75,000 for a bachelor’s degree — are higher than what federal loans generally cover, forcing many students to take out private loans from the school. These loans, called “Genesis loans,” came with origination fees of 6% and interest rates of around 15% as of 2011 — much higher than the 3% and 7% charged on federal loans.
…
CNNMoney (New York); posted September 16, 2014 from: http://money.cnn.com/2014/09/16/pf/college/cfpb-corinthian-lawsuit/index.html?iid=EL

The references to “low-income students” in the foregoing article are most commonly the “Black and Brown” of the American population. This is a frequent demographic for victimization in American life.

This issue in the article is just another example of Crony-Capitalism and institutional racism. The book Go Lean…Caribbean and subsequent blogs posit that the Caribbean must not be vulnerable to these negative American forces.

The dread of Crony-Capitalism and institutional racism have been highlighted and detailed in many previous blog commentaries; see the many Crony-Capitalism models in Appendix B below. Now we have to add the reality of Big Education to the discussion. The issue underpinning this dilemma is the easy availability of guaranteed student loans from the US federal government. Unfortunately this is not just an issue for For-Profit institutions, many not-for-profit colleges and university also exploit the federal student loan funds to garner revenues at the expense of innocent students. The Crony in this case is a direct consequence of a rich pool of federal monies.

Rich pool? This brings to mind the visual of an isolated pool/pond on the African Plain, a watering hole on the Serengeti where many animals seek hydration and refuge, but the terrain is endangered with predators: lions, crocodiles, hyenas, cheetahs, etc.. Yes, in the American commercial eco-system, “follow the money”, and you will find many “bad actors” looking to exploit the situation for unfair gain and quick profits.

VIDEO – Is the cost of college crippling? – http://money.cnn.com/video/news/2013/09/03/n-cost-of-college-rising-education-middle-class-jobs.cnnmoney/

The Caribbean must do better! We must also dissuade our citizens from emigrating to this American eco-system.

The consideration of Crony-Capitalism in the For-Profit Education industry aligns with the book Go Lean…Caribbean, a roadmap to elevate the economic, security and governing engines of the Caribbean. The Caribbean wants to model many of the good examples of the United States, and learn from the many bad models. Education is one such model. While optimization of education can systemically raise a country’s economy, the Caribbean experience has been more negative than positive. Too many of our students have left … to study abroad; then refused to return home, taking with them the return on community investments and repayment of their student loans. The Go Lean book has reported in detail on how traditional college career paths have been disastrous policies for the Caribbean in whole, and each specific country in particular.

This Go Lean book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU). The CU has a complete education agenda, applying lessons learned from the consideration of the American models. This roadmap represents a big change for the region. The CU/Go Lean roadmap has 3 prime directives:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs..
Establishment of a security apparatus to police “bad actors” and protect the resultant economic engines.
Improvement of Caribbean governance, including a separation-of-powers, to support these engines.

The Go Lean roadmap provides turn-by-turn directions on how to reform the Caribbean tertiary education systems, economy, governance and Caribbean society as a whole. There is a plan for a regional student loan pool, where we mitigate the dangers that are so evident in the American eco-system. Our primary threat now is the constant abandonment rate among the college-educated populations. So as a planning tool, the roadmap commences with a Declaration of Interdependence, pronouncing the dread of societal threats and the Caribbean brain drain (Page 12):

xvi.  Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes … can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

xix.  Whereas our legacy in recent times is one of societal abandonment, it is imperative that incentives and encouragement be put in place to first dissuade the human flight, and then entice and welcome the return of our Diaspora back to our shores …

xxi.  Whereas the preparation of our labor force can foster opportunities and dictate economic progress for current and future generations, the Federation must ensure that educational and job training opportunities are fully optimized for all residents of all member-states, with no partiality towards any gender or ethnic group… This responsibility should be executed without incurring the risks of further human flight, as has been the past history.

The Go Lean book posits that education is a vital consideration for Caribbean economic empowerment. The vision of the CU is a confederation of the 30 member-states of the Caribbean to do the heavy-lifting of championing better educational policies. The book details those policies; and other ethos to adopt, plus the executions of the following strategies, tactics, implementations and advocacies to impact tertiary education in the region:

Community Ethos – Deferred Gratification	Page 21
Community Ethos – Economic Systems Influence Individual Choices and Incentives	Page 21
Community Ethos – Job Multiplier	Page 22
Community Ethos – Lean Operations	Page 24
Community Ethos – Return on Investments (ROI)	Page 24
Community Ethos – Ways to Impact the Future – Apply Lessons of American Lax Oversight	Page 26
Community Ethos – Ways to Foster Genius	Page 27
Community Ethos – Ways to Help Entrepreneurship – Training & Mentoring	Page 28
Tactical – Separation of Powers – Education Department	Page 85
Tactical – Separation of Powers – Labor Department – On-the-Job-Training Regulator	Page 89
Implementation – Ways to Better Manage Debt – Lessons of American Student Loan Crisis	Page 114
Advocacy – Ways to Grow the Economy – Essential Role of Tertiary Education	Page 151
Advocacy – Ways to Create Jobs – Vital Need for Better STEM* Education Empowerments*	Page 152
Advocacy – Ways to Improve Education – Mitigating the Brain Drain	Page 159
Advocacy – Ways to Impact Student Loans – Regional Pools for Cross-Border Enforcements	Page 160
Advocacy – Ways to Improve Governance	Page 169
Appendix – Education and Economic Growth	Page 258
Appendix – Measuring Education Progress and Success Criteria	Page 266
Appendix – New American Student Loan Debt Crisis – Now Over $1 Trillion in Debt	Page 286

The American Tertiary Education Student Loan eco-system is badly broken; (tuition has increased 500% since 1985). The large pools of money has attracted “bad actors” or predators. The party in the foregoing news article – Corinthian Colleges – has been charged and adjudicated with predatory lending violations. Their victims: poor students who would have to repay these non-dischargeable federally-insured student loans. How sad? All of that time, talent and treasury and nothing to show for it. No wonder the economic effects of this affected population are now showing in other aspects of the economy, such as retarded home-buying output among the younger generations.

The Caribbean is urged to do better.

The people, educational and governing institutions in the region are urged to lean-in for the empowerments described in the book Go Lean … Caribbean. Education reform can suceed in elevating Caribbean society; we can make our Caribbean homeland a better place to live, work, learn and play. 🙂

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

———-

Appendix A – Corinthian Colleges, Inc.
(Source: http://en.wikipedia.org/wiki/Corinthian_Colleges)

Corinthian Colleges, Inc. (CCi) was a large for-profit post-secondary education company in North America. Its subsidiaries offered career-oriented diploma and degree programs in health care, business, criminal justice, transportation technology and maintenance, construction trades, and information technology.^[1]

At its largest, CCi had over 100 Everest, Heald and WyoTech campuses throughout the United States and Canada.^[2]

Corinthian’s campuses in Canada closed on February 19, 2015 after the Ontario government suspended their operation license. After a series of legal challenges by state and federal agencies, on April 26, 2015 Corinthian Colleges announced that they would cease operations at all remaining US locations effective April 27, 2015. The closure affected more than 16,000 students and employees.

Corinthian Colleges was founded in February 1995.^[3] The five founders — David Moore, Paul St. Pierre, Frank McCord, Dennis Devereux, and Lloyd Holland — were executives at National Education Centers, Inc. (NECI), a for-profit operator of vocational schools based in Irvine, California. The founders planned to acquire schools that were fundamentally sound, but which for one reason or another were performing below their potential.^[4]

Historically, CCi grew rapidly through acquisitions and through organic growth, including opening new branch campuses, remodeling, expanding or relocating existing campuses, and adopting curricula into existing colleges.^[3]

Acquired Schools
The following institutes and colleges were acquired [through the years]:^[5]

American Motorcycle Institute
AshmeadCollege
Blair College
Bryman College
Bryman Institute
Duff’s Business Institute
Florida Metropolitan University
Georgia Medical Institute
Kee Business College
Las Vegas College
National Institute of Technology
National School of Technology
Olympia Career Training Institute
Olympia College
Parks College
Rochester Business Institute
Tampa College
Western Business College

Corinthian Colleges faced numerous investigations and lawsuits, including a federal criminal investigation.^[6]

Financial Aid Financing
The Higher Education Act provides that a private, for-profit institution, such as CCi’s institutions, may derive no more than 90% of its revenue from the Title IV federal student aid programs.^[39] In 2010, CCi reported that it received 81.9% of revenue from Title IV federal student aid programs. ^[40] Corinthian Colleges (CCI) acquired QuickStart Intelligence in summer 2012, an Irvine, California-based, privately held technology training company. As a B2B revenue stream; CCI acquired QuickStart Intelligence to leverage the 10%, non-government funding essential to back the additional student loans for CCi’s core adult learning programs.

Student Loan Default Rate
A significant requirement imposed by Congress is a limitation on participation in Title IV programs by institutions whose former students default on the repayment of federal student loans in excess of specified rates (“Cohort Default Rates”).^[41] On March 25, 2013, CCi received a draft three-year Cohort Default Rates from the U.S. Department of Education for students who entered repayment during the federal fiscal year ending September 30, 2010 (the “2010 Cohort”), measured over three federal fiscal years of borrower repayment. The weighted average of CCi’s institutions was 19.0%, a 9.0 percentage point decrease from the 28.0% weighted average for the three-year cohort default rate for students who entered repayment during the prior fiscal year.^[42] For the 2010 Cohort, none of CCi’s institutions exceeded the default threshold set by the U.S. Department of Education.^[42]

———-

Appendix B – Models of American Crony-Capitalism

Big Defense	Many theorists indicate that the “follow the money” approach reveals the Military Industrial Complex work to undermine peace, so as to increase defense spending for military equipment, systems and weapons.
Big Media	Cable companies conspire to keep rates high; kill net neutrality; textbook publishers practice price gouging; Hollywood insists on big tax breaks/ subsidies for on-location shooting.
Big Oil	While lobbying for continuous tax subsidies, the industry have colluded to artificially keep prices high and garner rocket profits ($38+ Billion every quarter).
Big Box	Retail chains impoverish small merchants on Main Street with Antitrust-like tactics, thusly impacting community jobs. e-Commerce, an area of many future prospects, is the best hope of countering these bad business tactics.
Big Pharma	Chemo-therapy cost $20,000+/month; and the War against Cancer is imperiled due to industry profit insistence.
Big Tobacco	Cigarettes are not natural tobacco but rather latent with chemicals to spruce addiction.
Big Agra	Agribusiness concerns bully family farmers and crowd out the market; plus fight common sense food labeling efforts.
Big Data	Brokers for internet and demographic data clearly have no regards to privacy concerns.
Big Banks	Wall Street’s damage to housing and student loans are incontrovertible.
Big Weather	Overblown hype of “Weather Forecasts” to dictate commercial transactions.
Big Real Estate	Preserving MLS for Real Estate brokers only, forcing 6% commission rates, when the buyers and sellers can meet without them.
Big Salt	Despite the corrosiveness of salt on roads and the environment, it is the only tactic used to de-ice roads. Immediately after the weather warms, the roads must be re-constructed, thus ensuring a continuous economic cycle.
Big Energy	The For-Profit utility companies always lobby against regulations to “clean-up” fossil-fuel (coal) power plants or block small “Green” start-ups from sending excess power to the National Grid. Their motive is to preserve their century-long monopoly and their profits.
Big Legal	Even though it is evident that the promotion of Intellectual Property can help grow economies, the emergence of Patent Trolling parties (mostly lawyers) is squashing innovation. These ones are not focused on future innovations, rather just litigation. They go out and buy patents, then look for anyone that may consume any concepts close to those patents, then sue for settlements, quick gains.
Big Cruise	Cruise ships are the last bastion of segregation with descriptors like “modern-day-slavery” and “sweat-ships”. Working conditions are poor and wages are far below anyone’s standards of minimum. Many ship-domestic staff are “tip earners”, paid only about US$50 a month and expected to survive on the generosity of the passengers’ gratuity. The industry staff with personnel from Third World countries, exploiting those with desperate demands. Nowhere else in the modern world is this kind of job discrimination encouraged, accepted or tolerated.
Big Jails	The private prison industry seem motivated more by profit than by public safety. They attempt to sue state governments when their occupancy levels go too low; a reduction in crime is bad for business.
Big Housing	The American legacy is one of the institutional segregation in American cities. The practice was administered by real estate agents and housing officials executing policies to elevate property values and generational wealth for White families at the expense of a life of squalor for Non-Whites.
Big Charities	Big Not-For-Profit organizations that fleece the public under the guise of charities but retain vast majorities of the funding as administrative costs, thusly benefiting mostly the charities’ executives and staff rather than the intended benefactors.

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A Lesson in History – Cinco De Mayo

Posted on May 5, 2015 in Ethos, Government, Social

Go Lean Commentary

Today (May 5) is Cinco De Mayo – celebrating this is a move of solidarity with Mexico; its people and culture – Enjoy the festivities!

Enjoy the Mexican food, spirits, music and culture. The country and people of Mexico have so much to offer the world – see VIDEO below – this includes the Caribbean.

One thing more that they can offer us in our region: A Lesson in History!

The summary of this celebration is simple on the surface: Mexican forces commanded by General Ignacio Zaragoza defeated the French army in the Battle of Puebla on 5 May 1862. 4 days later, on 9 May 1862, The then-President Benito Juárez declared that the anniversary of the Battle of Puebla would be a national holiday,^{[14][15][16][17][18]} regarded as “Battle of Puebla Day” or “Battle of Cinco de Mayo”. Although today it is recognized in some countries as a day of Mexican heritage celebration, it is not a federal holiday in Mexico.^[19]

Considering the real history of Cinco De Mayo is a really big deal. For starters, while Mexico was not the aggressor in this war, they were not exactly blameless.

The 1858 – 1860 Mexican civil war known as The Reform War had caused distress throughout Mexico’s economy. When taking office as the newly-elected president of the Republic in 1861, Juárez was forced to suspend payments of interest on foreign debts for a period of two years. At the end of October 1861 diplomats from Spain, France, and Britain met in London to form the Tripartite Alliance, with the main purpose of launching an allied invasion of Mexico, taking control of Veracruz, its major port, and forcing the Mexican government to negotiate terms for repaying its debts and for reparations for alleged harm to foreign citizens in Mexico. In December 1861, Spanish troops landed in Veracruz; British and French followed in early January. The allied forces occupied Veracruz and advanced to Orizaba. However, the Tripartite Alliance fell apart by early April 1862, when it became clear the French wanted to impose harsh demands on the Juarez government and provoke a war. The British and Spanish withdrew, leaving the French to march alone on Mexico City. French Emperor-President Napoleon III – the first democratically elected French President – wanted to set up a puppet regime, the Mexican Empire.

Thus started this French Intervention in Mexico. The effects of these 5 years were far-reaching, even to this day – consider the similarities in flags for these countries.

Title: French Intervention in Mexico 1862 – 1867
Emperor Napoleon III of France was the instigator, justifying military intervention by claiming a broad foreign policy of commitment to free trade. For him, a friendly government in Mexico would ensure European access to Latin American markets. Napoleon also wanted the silver that could be mined in Mexico to finance his empire. Napoleon built a coalition with Spain and Britain while the U.S. was deeply engaged in its own civil war from 1861 to 1865.

Here is the main timeline of this French Intervention period:

1. 1862: Arrival of the French
After the initial victory by the Mexicans at the Battle of Puebla, the war continued in a different direction. The pursuing Mexican army was contained by the French at Orizaba, Veracruz, on 14 June. More British troops arrived on 21 September, and General Bazaine arrived with French reinforcements on 16 October. The French occupied the port of Tamaulipas on 23 October, and unopposed by Mexican forces took control of Xalapa, Veracruz on 12 December.

2. 1863: The French take the capital
The French army of General François Achille Bazaine defeated the Mexican army led by General Comonfort in its campaign to relieve the siege of Puebla, at San Lorenzo, to the south of Puebla. Puebla surrendered to the French shortly afterward, on 17 May. On 31 May, President Juárez fled the capital city (Mexico City) with his cabinet, retreating northward to Paso del Norte and later to Chihuahua. Having taken the treasure of the state with them, the government-in-exile remained in Chihuahua until 1867.

French troops under Bazaine entered Mexico City on 7 June 1863. The main army entered the city three days later, led by General Forey. General Almonte was appointed the provisional President of Mexico on 16 June, by the Superior Junta (which had been appointed by Forey). The Superior Junta with its 35 members met on 21 June, and proclaimed a Catholic Empire on 10 July. The crown was offered to Austrian Prince Archduke Ferdinand Maximilian, following pressures by Napoleon. Maximilian accepted the crown on 3 October.

3. 1864: Arrival of Maximilian
Further decisive French victories continued with the fall of Guadalajara, Zacatecas, Acapulco, Durango by 3 July, and the defeat of republicans in the states of Sinaloa and Jalisco in November.

Maximilian formally accepted the crown on 10 April, signing the Treaty of Miramar (between France and Mexico), and landed at Veracruz on 28 May. He was enthroned as Maximilian I, Emperor of Mexico, [under French occupation].

4. 1865: Beginning of Republican victories
After many more French victories, finally on 11 April, republicans defeated Imperial forces at Tacámbaro in Michoacán. In April and May the republicans had many forces in the states of Sinaloa and Chihuahua. Most towns along the Rio Grande, [(the border with the US),] were also occupied by republicans.

The decree known as the “Black Decree” was issued by Maximilian on 3 October, which threatened any Mexican captured in the war with immediate execution.

5. 1859-1867: U.S. Diplomacy and Involvement
The United States did not condone the French occupation of Mexico but it had to use its resources for the American Civil War, which lasted 1861 to 1865. Then-President Abraham Lincoln expressed his sympathy to Latin American republics against any European attempt to establish a monarchy; and the Congress passed a resolution in disgust of these French actions. In 1865, The US supported the sale of Mexican bonds by Mexican agents in the US to fund the Juarez Administration, raising up to $18-million dollars for the purchase of American war material.^[16] By 1867, American policy shifted from thinly veiled sympathy to the republican government of Juarez to open threat of war to induce a French withdrawal, invoking the Monroe Doctrine, a policy to thwart any aggression by European powers in the Americas.

6. 1866: French withdrawal and Republican victories
Choosing Franco-American relations over his Mexican monarchy ambitions, Napoleon III announced the withdrawal of French forces beginning 31 May. Taking advantage of the end of French military support to the Imperial troops, the Republicans won a series of crippling victories in Chihuahua on 25 March, Guadalajara, Matamoros, Tampico and Acapulco in July. Napoleon III urged Maximilian to abandon Mexico and evacuate with the French troops; [but he persisted]. The French evacuated Monterrey on 26 July, Saltillo on 5 August, and the whole state of Sonora in September. Maximilian’s French cabinet members resigned on 18 September. The Republicans defeated imperial troops in Oaxaca in October, occupying the whole of Oaxaca in November, as well as parts of Zacatecas, San Luis Potosí and Guanajuato.

7. 1867: Republicans take the capital
The Republicans occupied the rest of the states of Zacatecas, San Luis Potosí and Guanajuato in January. The French evacuated the capital on 5 February.

On 13 February 1867, Maximilian withdrew to Querétaro. The Republicans began a siege of the city on 9 March, and Mexico City on 12 April. On 11 May, Maximilian finally resolved to try to escape through the enemy lines. He was intercepted on 15 May. Following a court-martial, he was sentenced to death and executed on 19 June.
Source: http://en.wikipedia.org/wiki/French intervention_in_Mexico

This subject has relevance for the Caribbean. Mexico is a stakeholder in Caribbean affairs. They have a vast coastline (Yucatan Peninsula) on the Caribbean Sea, plus a few Caribbean islands (Cozumel, Isla Mujeres, Isla Contoy, and Isla Blanca). This country is also a member of the ACS – Association of Caribbean States – one of the relevant entities that must be assembled for this regional integration movement championed in the book Go Lean…Caribbean.

The underlying theme of this Lesson in Mexican History is the lack of effective security for the people and societal engines of Mexico. Now, after 150 years, this historic pattern has continued; Mexico proceeded to endure one revolution-rebellion-overthrow-coup d’etat after another until recent times.

The Caribbean cannot afford this same disposition: the dread and damage endured from decades of dysfunction.

Today, Mexico is known as a lawless society in many pockets, especially along the US border. Considering the art and science of security, it is sad that they never got it right! They resemble a Failed-State in so many perspectives. This is where their history, especially those 5 years of the Franco-Mexican War, provides lessons for the Caribbean people and institutions. But this Go Lean movement does not seek to remediate Mexico; this is out of scope. Rather the focus is strictly on the 30 Caribbean member-states: islands of the Caribbean plus the Central & South American states that caucus with the Caribbean Community (Belize, Guyana and Suriname).

This effort to elevate Caribbean society fully recognizes that security mitigations must be prioritized equally with economic and governing remediation. This is an underlying theme of the book Go Lean…Caribbean. The book declares that the region is in crisis, at the precipice of Failed-State status. This is the assertion of the Go Lean book, that the region must prepare its own security apparatus for its own security needs.

This book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU). So while the CU is set to optimize Caribbean society through economic empowerment, the security dynamics will be inextricably linked to this same endeavor. Therefore the Go Lean roadmap has 3 prime directives:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improvement of Caribbean governance to support these engines.

The book contends, just as the French proved to be a “bad actor” to Mexico in 1862, that new “bad actors” will emerge for the Caribbean to contend with. This will be as a by-product of new economic successes in the region. This point is pronounced early in the book with the Declaration of Interdependence (Page 12) that claims:

x. Whereas we are surrounded and allied to nations of larger proportions in land mass, populations, and treasuries, elements in their societies may have ill-intent in their pursuits, at the expense of the safety and security of our citizens. We must therefore appoint “new guards” to ensure our public safety and threats against our society, both domestic and foreign. The Federation must employ the latest advances and best practices … to assuage continuous threats against public safety.

xvi. Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes, including piracy and other forms of terrorism, can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

The need for the Caribbean to appoint “new guards” or a security pact to mitigate foreign and domestic threats in the region is the primary lesson to glean from the foregoing encyclopedic article – a consideration of the history of Cinco De Mayo. This security pact is to be legally constituted by a Status of Forces Agreement which would be enacted as a complement to the CU confederation treaty. The Go Lean roadmap provides 370-pages of turn-by-turn directions on how to deploy cutting-edge strategies, tactics and implementations to succeed in this goal.

In addition, there are other lessons – secondary – that we learn from this consideration of the history of Cinco De Mayo:

Bullies only acquiesced to a superior force – Only when the more powerful USA turned their attention to the Franco-Mexican War, was France willing to retreat. – There must always be monitoring, accountability and due-process to mitigate all level of bullies in society.
‘Other People’s Money’ is very important to ‘them’ – One of France’s motivation was the cancellation of expected interest payments – Debts to foreign parties should always be prioritized for repayment; it is better to use domestic sources.
Self-exploit natural resources – France saw value in Mexico’s untapped natural resources; they reasoned that they could be exploited to repay debts – Local economic engines should plan for responsible management of natural resources; avoid too-much or too-little development.
Neighbors have their own self-interest to prioritize – the US was occupied with its own domestic priorities, a Civil War – No expectation should be placed on any Super Power to come to our aid; we must be protégés not parasites.
Alliances with others make heavy-lifting easier – France originally formed an alliance with Spain and Britain to pursue the big goal of subduing Mexico – The CU is an alliance and confederation of 30 member-states.
There are consequences to abusing other peoples’ rights – France/Spain/Britain felt justified for their actions because of prior abuses to the rights of their citizens in Mexico – Human and Civil rights, including minorities, should always be a priority for Justice institutions.
Image and global impressions lend value to respect and recognition – The impression of Mexico was that they were dysfunctional and a “joke” to the European world – Caribbean brand and image must be feverishly protected and promoted.

The Go Lean book details a roadmap with turn-by-turn directions for transforming the Caribbean homeland. The following is a sample of the community ethos, strategies, tactics, implementations and advocacies to impact the Caribbean region for this turnaround:

Community Ethos – Economic Principle – Economic Systems Influence Choices	Page 21
Community Ethos – Economic Principle – Consequences of Choices Lie in the Future	Page 21
Community Ethos – Anti-Bullying and Mitigation	Page 23
Community Ethos – Minority Equalization	Page 24
Community Ethos – Cooperatives	Page 25
Community Ethos – Ways to Improve Sharing	Page 35
Strategy – Vision – Confederating a Non-Sovereign Union	Page 45
Strategy – Mission – Protect Economic Engines from threats	Page 45
Tactical – Fostering a Technocracy	Page 64
Tactical – Separation of Powers	Page 71
Implementation – Start-up Foreign Policy Initiatives	Page 102
Implementation – Security Initiatives at Start-up	Page 103
Implementation – Ways to Deliver	Page 109
Implementation – Ways to Better Manage Debt	Page 118
Implementation – Ways to Promote Independence – Interdependence	Page 120
Planning – 10 Big Ideas – Defense / Homeland Security Pact	Page 127
Planning – Ways to Make the Caribbean Better	Page 131
Planning – Ways to Better Manage Image	Page 133
Planning – Ways to Improve Failed-State Indices	Page 134
Planning – Lessons from the American West	Page 142
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Create Jobs	Page 152
Advocacy – Ways to Improve Governance	Page 168
Advocacy – Ways to Better Manage the Social Contract	Page 170
Advocacy – Ways to Impact Justice	Page 177
Advocacy – Ways to Improve Homeland Security	Page 180
Advocacy – Ways to Mitigate Terrorism	Page 181
Advocacy – Ways to Protect Human Rights	Page 220

Mexico is a beautiful country, with a beautifully diverse population plus a lot of natural resources. They experience a vibrant tourism product where millions visit annually for Mexican hospitality – they are a fit competitor of Caribbean tourism, even for cruises. See VIDEO here:

VIDEO: Mexico: Live It to Believe It – Cultural Diversity 2015 – https://youtu.be/jciVmLL_UgY

Published on Feb 27, 2014 – A production of the Mexico Department of Tourism; commissioned for the Central American and Caribbean Games in Veracruz from November 14 to 30, 2014.

Many people visit Mexico, but few would consider moving there permanently. In fact just the opposite occurs, the societal abandonment problem in Mexico is very pronounced. Their northern neighbor, the United States, has constant security issues of illegal Mexican migrants. Mexico has been dysfunctional for their entire history as a Republic. They must do better! While this quest is out-of-scope for the CU/Go Lean roadmap, we can learn lessons from their actions and inactions.

The Go Lean book posits (Page 3) that the Caribbean islands are among the greatest addresses in the world. But like Mexico, instead of the world “beating a path” to our doors, the people of the Caribbean have “beat down their doors” to get out; despite the absence of any war or revolution … like our Mexican neighbors. Our abandonment is inexcusable.

May we learn from this history of Mexico! Mexican culture is great! Enjoy the festivities: their people, food, drink, music and dance. But let’s do better … than they have done. Let’s make the Caribbean even better, where our citizens can prosper where they are planted; let’s make our homeland better places to live, work and play. 🙂

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

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Civil Rights, Debt, Foreign Policy, History, Model, Power, Security

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For Canadian Banks: Caribbean is a ‘Bad Bet’

Posted on December 31, 2014 in Economics, Strategy

Go Lean Commentary

There is no one entity designated to regulate the Caribbean banking sector in its full entirety. There are however some financial institutions doing business in much of the region who thusly have to make regionalized assessments. This includes NGOs like the World Bank and the Inter-American Development Bank, plus for-profit institutions like the Royal Bank of Canada (RBC) and the Bank of Nova Scotia (Scotiabank).

The subsequent news articles reflect the assessment of Caribbean economics from the point-of-view of Canadian Bankers: RBC and Scotiabank. Their conclusion:

All is not well in the Caribbean.

These articles highlighting the need for regional stewardship and oversight of banking in the Caribbean. This is the siren call of the book Go Lean…Caribbean; it serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) and Caribbean Central Bank (CCB) to provide better stewardship, to ensure that the economic failures of the past, in the Caribbean and other regions, do not re-occur here in the homeland.

According to these following articles, the need for this CU/CCB administration is past due:

Title # 1: RBC Wealth Management pulls out of Caribbean markets
Caribbean 360 – Regional News Site (Posted 11/21/2014; retrieved 12/30/2014) –
http://www.caribbean360.com/news/canadas-largest-bank-shutters-wealth-management-branches-in-the-bahamas-barbados-and-the-cayman-islands

BRIDGETOWN, Barbados – The Royal Bank of Canada (RBC) is now the latest Canadian bank to cut its losses in the Caribbean, following a decision to close its Caribbean wealth management divisions and several international advisory businesses in North America.

The move follows RBC’s sale of its Jamaican operations earlier this year, and an announcement by The Bank of Nova Scotia earlier this month of its plans to close around 120 branches in Mexico and the Caribbean (35 in the Caribbean specifically).

Canadian bank CIBC also suffered a net-loss on its FirstCaribbean bank operations in April 2014, for which it incurred a CDN $420 million goodwill impairment charge primarily related to its under-performing operation in the Bahamas.

Speaking to media sources in Canada following the RBC developments, Craig Fehr – an analyst with Edward Jones – said:

What we’re seeing is the banks are doing a thorough evaluation of their business mix and figuring out what makes sense long term and what is probably best left in the hands of someone else.

Sources indicate that the closure of RBC’s regional wealth management divisions – domiciled in The Bahamas, Barbados and the Cayman Islands – as well as management teams in Toronto, Montreal and the United States, could affect over 300 employees.

While heads of RBC’s regional wealth management divisions in the Caribbean declined specific comment on the exit and its impacts, RBC spokesman Claire Holland has confirmed the closures, while declining to offer specifics on the bank’s exit strategy:

“As there are a number of strategic options being considered as part of the exit, it would be premature at this stage to estimate the number of employees that will be impacted”, she said, while adding that the focus of the bank’s international growth strategy will now be on operating in major financial centres where RBC has “competitive strengths.”

RBC’s Caribbean wealth management divisions manage a portion of over CDN$43.2 billion in assets under the affected US and international wealth management operations.

When contacted for comment, Director of the Barbados International Business Association (BIBA), Henderson Holmes, said that his organisation was still trying to ascertain the facts before making a full statement on the RBC exit.

Holmes however cautioned that an exit “would not be good for Barbados”, while stating that BIBA’s current considerations were in whether a purchaser has been identified for the Barbados business, and whether its assets would remain in the country.

According to the International Monetary Fund, RBC, CIBC and the Bank of Nova Scotia hold around 60% of total banking assets in the Caribbean – a fact which the Fund says places the region at an increased risk of exposure to foreign financial crises.

For its part, RBC indicates that the closures will allow the bank to place increased focus on high net-worth and ultra-high net worth clients in key expansion markets, including Canada, the United States, the British Isles and Asia.

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Title # 2: Scotiabank loans to hospitality sector ‘impaired’
Nassau Guardian Daily Newspaper Website (Posted 11/07/2014; retrieved 12/30/2014) –
http://www.thenassauguardian.com/bahamas-business/40-bahamas-business/51574-scotiabank-loans-to-hospitality-sector-impaired
By: K. Quincy Parker, Guardian Business Editor

Scotiabank loans to the Caribbean hospitality sector have apparently lost hundreds of millions of dollars in value; a portfolio worth $1.3 billion a year ago fell to a $1 billion before a restructuring which has led to write-downs in the region, and which may mean branch closures and job losses in The Bahamas.

It appears that Scotiabank’s Caribbean write-downs – or adjustment to the value of its business – largely stem from three “net impaired” loans to the hospitality sector in the region. In fact, Canadian financial publications note that “trouble in the Caribbean” is becoming a common refrain. Scotiabank’s write-down follows on the heels of an even bigger one by First Caribbean earlier this year.

After 125 years of operations in the region, Scotiabank’s Chief Executive Officer Brian Porter said during a call this week that the bank will close a significant number of branches in the Caribbean (35 branches was the estimate given) as part of the restructuring. The shift is expected to mean layoffs as well, but local representatives could not speak to the extent – if any – of closures or job cuts in The Bahamas.

Scotiabank’s spokespeople told Guardian Business on Thursday that the lender’s growth in the region has “created some overlap and duplication of services”.

“As a result, we undertook a review of our operating model and international distribution network and found opportunities to strengthen our retail presence by investing in areas that are going to improve the speed and quality of service for our customers,” the bank said in a statement released to this paper.

Porter has announced changes including branch closures, restructuring charges totaling more than $450 million, 1,500 layoffs – mostly in Canada – and loan losses of $109 million in the Caribbean. He also revealed that Scotiabank will either close or downsize 120 branches, largely in Mexico and the Caribbean, to focus on high-growth markets such as Chile and Colombia.

The Scotiabank Bahamas statement said: “The numbers announced relating to branch closures were across the Bank’s international network.

“The bank is still undergoing its review and while this process will take some time, it will be carefully planned with consideration given to all affected stakeholders including employees and our customers”.

The Caribbean has had to learn hard lessons on banking … abroad. Due to the interconnectivity of the financial systems, bank troubles in foreign countries easily become trouble for the region. This was definitely true for the 2008 Banking Crisis that spurred the Great Recession. (Eventually the middle classes were impacted and shrunk our tourism marketing prospects). The events of this period were the lynchpin for the Go Lean movement, (book and blogs). This Go Lean book, and the associated movement, posits that the effects of the 2008 Great Recession continue to linger in the Caribbean. Therefore the book advocates instituting the appropriate governance on the region’s banking sector so as to apply the learned lessons from 2008. We do not want to be vulnerable to any financial mis-management of our North American neighbors; or some “plutocratic” elements there-in.

2008 was all about Wall Street (New York City). Today’s headlines are all about Canada. Though there is elasticity from these foreign financial centers, the Caribbean is big enough (42 million people in 30 member-states) to streamline its own viable financial / securities market. We can exert some control over our own economic destiny. We must assume the coveted role of protégé to our North American partners, not parasites, as experienced … to date.

The CU’s prime directive is to elevate the Caribbean’s economic-security-governing engines. Early in the book, the need for a regional steward was pronounced (Declaration of Interdependence – Page 13) with these statements:

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.

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 Federation and of the member-states.

The Go Lean book, and previous blog/commentaries, stressed the key community ethos, strategies, tactics, implementations and advocacies necessary to establish the regional financial eco-systems for Caribbean self-determination. These pointed are detailed in the book as follows:

Community Ethos – Economic Principles – Economic Systems Influence Individual Choices	Page 21
Community Ethos – Economic Principles – Voluntary Trade Creates Wealth	Page 21
Community Ethos – Economic Principles – Consequences of Choices Lie in the Future	Page 21
Community Ethos – Economic Principles – Money Multiplier	Page 23
Community Ethos – Governing Principles – Lean Operations	Page 24
Community Ethos – Governing Principles – Return on Investments	Page 24
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Help Entrepreneurship	Page 28
Community Ethos – Ways to Impact Turn-around – 2008 Crisis	Page 33
Community Ethos – Ways to Impact the Greater Good	Page 37
Strategy – Mission – Fortify the Stability of the Securities Markets	Page 47
Strategy – CU Stakeholders to Protect – Banks & Depositors	Page 47
Tactical – Growing the Economy – Minimizing Bubbles	Page 69
Tactical – Separation-of-Powers – Depository Insurance & Regulatory Agency	Page 73
Anecdote – Turning Around CARICOM – Effects of 2008 Financial Crisis	Page 92
Implementation – Assemble Caribbean Central Bank as Cooperative	Page 96
Implementation – Ways to Better Manage Debt – Optimizing Wall Street Role	Page 114
Planning – 10 Big Ideas – Single Market / Currency Union	Page 127
Planning – Lessons Learned from the old West Indies Federation – Canada’s Help	Page 135
Planning – Lessons Learned from 2008	Page 136
Planning – Lessons Learned from Canada’s History	Page 146
Planning – Ways to Measure Progress	Page 147
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Improve Credit Ratings – 2008 Lessons	Page 155
Advocacy – Ways to Improve Housing – 2008 Mortgage Crisis Lessons	Page 161
Advocacy – Ways to Impact Labor Unions – 2008 Effects on Main Street Jobs	Page 164
Anecdote – Caribbean Industrialist – Growth and Success	Page 189
Advocacy – Reforms for Banking Regulations	Page 199
Advocacy – Ways to Impact Wall Street	Page 200
Advocacy – Ways to Impact Main Street	Page 201
Appendix – Offshore Financial Services Industry Developments	Page 321
Appendix – Bahamas & Tax Info Exchange Agreements	Page 322

The points of effective, technocratic regional stewardship, especially in response to the 2008 Great Recession / Financial Crisis, were further elaborated upon in these previous blog/commentaries:

https://goleancaribbean.com/blog/?p=3397	A Christmas Present for the Banks from the Omnibus Bill
https://goleancaribbean.com/blog/?p=3090	Lessons Learned – Europe Sovereign Debt Crisis of 2009
https://goleancaribbean.com/blog/?p=3028	Why India is doing better than most emerging markets since the crisis
https://goleancaribbean.com/blog/?p=2930	‘Too Big To Fail’ – Caribbean Version
https://goleancaribbean.com/blog/?p=2090	The Depth & Breadth of Remediating 2008
https://goleancaribbean.com/blog/?p=1896	The Crisis in Black Homeownership since 2008
https://goleancaribbean.com/blog/?p=1014	Canadian View: All is not well in the sunny Caribbean
https://goleancaribbean.com/blog/?p=841	Post 2008 – Having Less Babies is Bad for the Economy?
https://goleancaribbean.com/blog/?p=782	Open/Review the Time Capsule: The Great Recession of 2008
https://goleancaribbean.com/blog/?p=709	Analyzing the Data – Student debt holds back home buyers
https://goleancaribbean.com/blog/?p=518	Analyzing the Data – What Banks learn about financial risks

Canada has been a dear friend to the Caribbean – see Appendices below. It is unfortunate that so many of their banks have experienced losses doing business in the Caribbean – we have been a ‘bad bet’. We want these Canadian banks and Canada in general to have good returns on their Caribbean investments and nothing but pleasurable experiences interacting with our culture and society. We want the Caribbean to be a better place to live, work and play for Canadians.

According to the foregoing news articles, our parasitic regional culture has not being gracious to our Canadian guest and direct investors. We need the proposed successes of the Go Lean roadmap for so many reasons; one strong motivation is to turn-around the results of the Canadian-Caribbean relationships. We must diversify our economy, fortify our security and improve our governance so that Canada would consider us in the role of a protégé, not a parasite again and again. This is the purpose of the Go Lean roadmap, to provide a turn-by-turn direction to move the region to that destination.

Don’t give up on us Canada!

🙂

Download the book Go Lean … Caribbean – now!

——————–

Appendix A – Scotiabank in the Caribbean and Central America
We have been part of the Caribbean and Central America region since 1889 when we opened our first office in Kingston, Jamaica to support the trade of rum sugar and fish. This was the first time a Canadian bank had opened a branch outside the U.K. or the U.S. Scotiabank had a branch in Kingston before opening a branch in Toronto, Canada, where the Executive Offices are now located.

Some 120 plus years later, Scotiabank is the leading bank in the Caribbean and Central America, with operations in 25 countries, including affiliates. We are the only Canadian bank with operations in four of the seven Central American countries, namely Costa Rica, Belize, Panama and El Salvador.

Scotiabank Facts:

Scotiabank employs 7,765 people in the region
Serves more than two million customers
About 99% of employees are hired locally
There are 294 branches and over 655 automated banking machines (ATMs) throughout the region

Our international strategy focuses on investing resources in high-potential markets where Scotiabank anticipates solid, long-term economic growth. We pride ourselves on leveraging the best Canadian sales and service practices to retain and attract high-value customers abroad. Our core purpose is to be the best at helping you become financially better off by providing relevant solutions to meet your unique needs.
(Source: http://www.scotiabank.com/jm/en/0,,37,00.html retrieved December 31, 2014)

VIDEO – Scotiabank Celebrates 125 Years in Jamaica – http://youtu.be/17WPQTE4Lr8

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Appendix B – Scotiabank and the Diaspora

The Scotiabank Caribbean Carnival Toronto is an exciting three-week cultural explosion of Caribbean music, cuisine, revelry as well as visual and performing arts. In its 45th year it has become a major international event and the largest cultural festival of its kind in North America.

As Carnival is an international cultural phenomenon, the great metropolis of Toronto and its environs will come alive as the city explodes with the pulsating rhythms and melodies of Calypso, Soca, Reggae, Hip Hop, Chutney, Steel Pan and Brass Bands. This colourful exhibition and display of genius is truly a musical panorama that is certain to bring a pleasing smile to the ancestral titans of Pan and Calypso music.

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Bahamas, Banks, Canada, Debt, Image, Jamaica

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Detroit to exit historic bankruptcy

Posted on December 10, 2014 in Economics, Ethos, Government

Go Lean Commentary

The publishers of the book Go Lean…Caribbean are here to “observe and report” the turn-around and rebirth of the once-great but now distressed City of Detroit. The book posits that the Caribbean can learn a lot from the strategies, tactics and implementations to mitigate this community’s “failed-state” status.

The quest starts now, as Detroit is now emerging from the Bankruptcy Court’s oversight, according to the following article and VIDEO:

By: Serena Maria Daniels
DETROIT (Reuters) – Detroit will officially exit the biggest-ever U.S. municipal bankruptcy later on Wednesday, officials said, allowing Michigan’s largest city to start a new chapter with a lighter debt load.

The city, which filed for bankruptcy in July 2013, will shed about $7 billion of its $18 billion of debt and obligations.

“We’re going to start fresh tomorrow and do the best we can to deliver the kind of services people deserve,” said Mayor Mike Duggan.

Once a symbol of U.S. industrial might, Detroit fell on hard times after decades of population loss, rampant debt and financial mismanagement left it struggling to provide basic services to residents.

Later on Wednesday, payments to city creditors will be triggered under a debt adjustment plan confirmed by a U.S. Bankruptcy Court judge last month.

Most of the settlements with major creditors, including Detroit’s pension funds and bondholders, will be paid with a distribution of about $720 million of bonds. The city will also reissue $287 million of existing bonds and borrow about $275 million from Barclays Capital to finance its exit from bankruptcy.

Along with the debt, the exit plan relies heavily on the “Grand Bargain,” where foundations, the state and the Detroit Institute of Art will contribute $816 million over time to ease pension cuts and protect city-owned art work from sale. The plan also aims to provide Detroit with $1.7 billion through June 30, 2023, to improve city services and infrastructure.

Wednesday also marks the end of Kevyn Orr’s 21-month term as Detroit’s state-appointed emergency manager. He told reporters that the city was wrapping up wire transfers, disbursements and other matters to end the historic bankruptcy.

“There may be some other administrative things the court may have to handle but the city will have emerged from bankruptcy,” Orr said. “12:01 a.m. tomorrow morning the city will be out of bankruptcy. I will no longer be the emergency manager. I will be unemployed.”

Orr’s departure returns complete control of Detroit to Duggan and the nine-member city council. However, the city will have a nine-member, state-created oversight board in place to approve financial matters.

In confirming the bankruptcy plan, Judge Steven Rhodes raised questions about possible conflicts of interest from having Duggan and a city council member sit on the board.

“The city is running the city, with some financial oversight on budgetary matters,” said Michigan Governor Rick Snyder about the financial review commission. “My goal is probably to have (the commission) be as least active as possible.”

The Republican governor told Reuters in an interview that the commission will help ensure Detroit does not slip back into bankruptcy. He also ruled out direct financial aid to the city in the future.

“We’re not really aiming to be there as a backup to the city in terms of financial resources,” Snyder said. “We’re there to be a supportive partner.”

He added that many of the other 16 local governments and school districts under state oversight in Michigan are “transitioning out of their problems” without the aid of bankruptcy.

“People should not be aspiring to go into bankruptcy to solve your problems. It’s tough process and it’s a last resort.”

Orr said court-ordered mediation on fees paid to consultants during the bankruptcy process was continuing on Wednesday. Outside lawyers and consultants charged the city more than $140 million, sparking protests from Duggan. Orr said some of the issues were “resolved last week.”

With the exit, “all of the consultants are being phased out pretty quickly,” Duggan said.

(Writing and additional reporting by Karen Pierog in Chicago and Lisa Lambert in Washington; editing by Matthew Lewis)
Reuters News Service (Posted and retrieved 12-10-2014) –
http://news.yahoo.com/detroit-exit-historic-bankruptcy-later-wednesday-162728907.html;_ylt=AwrBEiEC54hUwgYAliTQtDMD

The Go Lean book relates that economic empowerment can be heightened to alleviate distressed communities by exercising mastery of destruction arts and sciences – salvage, removal, recycle, redevelopment, rebirth and reboot – activities that can greatly benefit a city by “right-sizing” the infrastructure to the population.

This impacts the Greater Good.

The Go Lean book serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU) to elevate Caribbean society. While Detroit is not in scope for this effort, an examination of the details of Detroit – fall and rebound – can be productive for the Caribbean effort. The CU/Go Lean roadmap therefore has these 3 prime directives:

Optimization of the economic engines in order to grow the regional economy to $800 Billion GDP and create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance to support these engines.

Early in the Go Lean book, the point of lessons from Detroit is pronounced in the opening Declaration of Interdependence (Page 14), with this opening statement:

xxxiii. Whereas lessons can be learned and applied from the study of the recent history of other societies, the Federation must formalize statutes and organizational dimensions to avoid the pitfalls of communities like … Detroit…

According to the foregoing article and VIDEO below, the City of Detroit is now emerging from the Bankruptcy (BK) protection commenced in July 2013. Though the BK proceedings are over, the crisis continues. The city still has to create opportunities for their citizens, present and future, or risk further abandonment by its population. The possibility is very real that Detroit will invest heavily in the education of their youth, only to watch them leave and prosper in other communities. This is a disposition (brain drain, unemployment, urban blight and acute hopelessness) that is too familiar for Caribbean communities. This is why the study of Detroit is such an ideal model for the Caribbean region.

The foregoing article relates that the financial crisis was not just a problem for the one City of Detroit but also “16 local governments and school districts^[1] under state oversight in Michigan”. This was a Michigan/regional challenge; all exacerbated by the 2008 Great Recession financial crisis.

Previous Go Lean blogs highlighted Michigan, Detroit and other failed-state-city dynamics; as detailed here:

Michigan Unemployment – Then and Now

Making a Great Place to Work® – Model of a Michigan Company

Where the Jobs Are – Entrepreneurism in Turn-around

A Lesson in History: Lessons of the Failed East Berlin

Urban Crisis – The Geography of Joblessness

A Lesson in History: Community Ethos of Once Great Detroit During WW II

JP Morgan Chase $100 million Detroit investment not just for Public Relations

The foregoing news article also relates the financing options for Detroit’s recovery, which are heavy focused on municipal bonds in the securities market. The Go Lean roadmap likewise presents a plan, beyond banking, to generate funding to Pay for Change (Page 101). This CU/Go Lean effort is focused on forging change in the region; this does not start with BK proceedings (which are not available in the Caribbean), rather it must start with attitudes and motivations to reject the status quo. This positive attitude is defined in the book as a community ethos. One such ethos is “turn-around”, defined as having a collective vision, demand for change and appropriate steps and actions.

The book details other ethos to adopt, plus the executions of the following strategies, tactics, implementations and advocacies to impact the rebirths, reboots and turn-around of Caribbean communities:

Community Ethos – Deferred Gratification	Page 21
Community Ethos – People Respond to Incentives	Page 21
Community Ethos – Job Multiplier	Page 22
Community Ethos – Light Up the Dark Places	Page 23
Community Ethos – “Crap” Happens	Page 23
Community Ethos – Lean Operations	Page 24
Community Ethos – Return on Investments (ROI)	Page 24
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Help Entrepreneurship	Page 28
Community Ethos – Ways to Impact a Turn-Around	Page 33
Community Ethos – Impact the Greater Good	Page 37
Strategy – Customers – Foreign Direct Investors	Page 48
Tactical – Fostering a Technocracy	Page 64
Tactical – Modeling Post WW II Germany – Marshall Plan	Page 68
Tactical – Modeling Post WW II Japan – with no Marshall Plan	Page 69
Separation of Powers – Public Works & Infrastructure	Page 82
Separation of Powers – Housing and Urban Authority	Page 83
Separation of Powers – Exclusive Federal Bankruptcy Courts	Page 90
Implementation – Ways to Pay for Change	Page 101
Implementation – Ways to Re-boot Freeport – Sample Failed City	Page 112
Planning – Ways to Improve Failed-State Indices	Page 132
Planning – Lessons Learned from 2008	Page 136
Planning – Lessons from Detroit	Page 140
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Create Jobs	Page 152
Advocacy – Ways to Improve Local Government	Page 169
Advocacy – Ways to Better Manage the Social Contract	Page 170
Advocacy – Ways to Improve Leadership	Page 171
Advocacy – Ways to Preserve Caribbean Heritage	Page 218

The foregoing news article aligns with the publishers of the Go Lean book, the SFE Foundation, a community development foundation chartered for the purpose of empowering and re-booting economic engines. The foundation does the heavy-lifting of working with individuals, families, communities and nation-states to turn-around financial viability.

Bankruptcy is not an option for the failing Caribbean member-states, yet the region can still explore formal reboots. The Go Lean roadmap provides a complete plan to reboot Caribbean economic-security-governing engines. The region is hereby urged to lean-in to this roadmap, to make the homeland a better place to live, work and play. 🙂

Download the book Go Lean…Caribbean now!

————

APPENDICES:
1. Source References
Michigan municipalities under Emergency Management oversight: Allen Park, Benton Harbor, Detroit, Ecorse, Flint, Hamtramck City, Highland Park, Pontiac, Three Oaks Village, Detroit Public School District, Muskegon Heights Public School District, and Highland Park School District. Retrieved December 10, 2014 from: http://en.wikipedia.org/wiki/Financial_emergency_in_Michigan.

2. VIDEO – Detroit emerges from bankruptcy – http://www.clickondetroit.com/consumer/detroit-exits-historic-bankruptcy/30165290

The City of Detroit will officially emerge from bankruptcy on Wednesday. Emergency Manager Kevyn Orr said the city no longer will be in a financial emergency when it officially exits bankruptcy. The governor, emergency manager and Mayor Mike Duggan joined to make the official announcement Wednesday morning.

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Jack M. Mintz: ‘All is not well in the sunny Caribbean’

Posted on May 27, 2014 in Economics, Planning

Go Lean Commentary

“All that glitters is not gold” – Old adage.

This is a similar expression as the title of the below commentary by Canadian Public Policy Professor Dr. Jack Mintz:

“All is not well in the sunny Caribbean”.

The opinions of Canadian stakeholders are and have always been important from a Caribbean perspective. “Look to the Northern Star!” – the book Go Lean…Caribbean relates the hope and refuge that Canada always provided to this region (Page 146).

This book purports that an examination of the history of Canada can be productive for the Caribbean. Despite the different geographic address, Canada has had to contend with a lot of challenges similar to the Caribbean; Canada has succeeded while the Caribbean has failed. Early in the book, the point of lessons from Canada is pronounced in the Declaration of Interdependence (Page 14), with these opening statements:

xxxiii. Whereas lessons can be learned and applied from the study of the recent history of other societies, the Federation must formalize statutes and organizational dimensions … to implement the good examples learned from developments/ communities like … Canada.

Canada recognizes that the Caribbean is in crisis; and despite billions and billions ($$$) in Canadian investments, the region is still in crisis.

Commentary By: Dr. Jack M. Mintz
Economic problems in the Caribbean should be a wake-up call for governments and businesses operating there.

As a middling power, Canada has limited influence in most areas of the world — save for the Caribbean countries. To escape the winter, three million Canadians trek annually to one of the islands to enjoy the sun and relaxation. Roughly 600,000 Caribbean [expatriates] have migrated over the years to Canada, with the largest contingents coming from Jamaica, Guyana, Haiti and Trinidad.

Canada has also invested over $140-billion in capital in the Caribbean islands, especially in Bahamas, Barbados, Bermuda and Cayman Islands. Capital stock held in Barbados alone is over $60-billion, more than any other country except for the United States. The money does not stay there but moves on to other countries so that Canadian multi-national companies can take advantage of the Canada-Barbados tax treaty to achieve lower global effective corporate tax rates through tax-efficient financial structures.

So when Canadian Imperial Bank of Commerce announced a $420-million write-down in goodwill invested in CIBC FirstCaribbean, it should attract attention, given our deep ties to the region. All is not well in the Caribbean region with its bloated, over-indebted governments operating in slow-growth environments. The economic and fiscal problems in the region raise critical economic and security concerns for Canada.

Many Caribbean governments face financial instability. Gross public debt has risen to over 80% of GDP in 2013 for Antigua, Barbados, Grenada, Jamaica, St. Kitts and Nevis, and St. Lucia. Many of these countries are also heavily exposed to global markets with the current account deficit over 20% of GDP in the Caribbean region. Foreign direct investment inflows are more than 8% of GDP for Antigua, Bahamas, Barbados, Grenada, Guyana, St. Kitts and Nevis, St. Lucia and Trinidad-Tobago.

At a flick of the switch, international lenders could turn off the spigots, resulting in a financial crisis and hefty devaluation of currencies. The implications of a severe economic contraction in the region would put the Caribbean countries in limbo and have important consequences to Canada, given our relationships in the region.

The outlook for the Caribbean countries is not exactly cheerful. Overall, economic growth has been poor, about 1.5% for the region, and close to stagnant for Bahamas, Barbados, Grenada and Jamaica. Many of the Caribbean countries face competitiveness problems with some of the highest electricity rates in the world, unionized wage costs and high real interest costs. The business climate is weak with poor regulatory practices, enforcement of contracts and crime.

With the global economic slowdown, tourism has been relatively flat, lagging most regions of the world in 2013. Tourism, after all, is not a necessity and more money is spent on it only when people are better off. The outlook is not looking much better in the near future with little income growth in North America and Europe. Should there ever be reconciliation between the United States and Cuba, U.S. tourism could significantly shift from other islands.

Nor are commodity prices expected to be booming as China and the rest of Asia slow down, with little take up from the rest of the world. Only oil and gas prices seem to be firm, which is good news for Trinidad and Tobago.

With the G20 and OECD countries focused on curbing tax evasion and avoidance, several Caribbean countries – Bermuda, Barbados and Cayman Islands – would be subject to a tightening tax noose. These countries could face a deceleration in economic activity if international tax structures are to be dismantled.

Thus, economic and fiscal problems in the Caribbean should be a wake-up call for governments and businesses operating there. The CIBC write-down is just the tip of the iceberg.

A financial crisis will heavily impact many Canadian businesses that have turned to the Caribbean islands to set up financing and insurance structures. A major economic slowdown in the Caribbean islands would also raise security issues for Canada as crime, including drug trade, could become more problematical to control.

The Canadian government should therefore work with other major countries and international organizations to stabilize Caribbean economies. Attempts to build capacity for good governance in the past years have not been easy but it cannot be abandoned. Some new initiatives should be considered that would help the Caribbean islands improve their fortunes.

Certainly, trying to harmonize policies and merge certain institutions to achieve economies-of-scale across the region would be a useful step. This includes post-secondary education, financial markets and transportation. A shift by Caribbean countries away from oil to natural gas from Trinidad-Tobago and North America would reduce their cost of oil imports.

At the same time, Canada and other Western countries should invest in improving the judiciary and security forces in the [Caribbean] region. The reduction in crime would also benefit our economies by reducing risks faced by tourists and investors. Drug trade with Canada would be curbed.

Debt relief for some of the countries would be appropriate so long as certain commitments are made to reform governance and economic policy. This has been the role of the IMF over the years but Canada should itself pay more attention to the region.

For Canadians looking to bask in the sun and escape harsh winters here, a stronger Caribbean region will be welcome.

Jack M. Mintz is the Palmer Chair, School of Public Policy, University of Calgary. Contact: policy@ucalgary.ca

Source: Financial Post – Canadian Daily; retrieved 05-23-2014 from: http://business.financialpost.com/2014/05/22/jack-m-mintz-all-is-not-well-in-the-sunny-caribbean/

The underlying theme of Jack Mintz commentary is that Caribbean society needs a reboot. The book Go Lean… Caribbean serves as a roadmap for the introduction and implementation of Caribbean Union Trade Federation (CU), a reboot for Caribbean society with these 3 prime directives:

Optimize the economic engines of the Caribbean to grow the economy to $800 Billion and create 2.2 million new jobs.
Establish a security apparatus to protect the resultant economic engines and stakeholders.
Improve Caribbean governance with technocratic excellence.

The foregoing article highlights the mis-management of credit/debt of the governments of the region. The commentary specifically warns:

At a flick of the switch, international lenders could turn off the spigots, resulting in a financial crisis and hefty devaluation of currencies.

Why such poor financial planning? It is obvious that there is a lot of success missing in terms of fiscal expedience. It is not reasonable to expect that current administrations can solve Caribbean fiscal problems with the same tools and techniques of the present. The Go Lean roadmap calls for a different toolbox and different techniques.

If beauty is in the eye of the beholder, then perhaps this commentary is just one person’s assessment of ugly – just a perception. But unfortunately, the facts are the facts. Dr. Mintz relates ugly examples, such as the fact the region has the “highest electricity rates in the world”. There is no denying the “Amount Due” figures on actual electric utility bills.

This is the present, as perceived by Dr. Mintz. Plus, his assessment of the near future is even more “gloom-and-doom”.

True, there is work to be done. But not the job of a Calgary professor, or any other Canadian stakeholder, to do the heavy-lifting. No, this is the job of the Caribbean for the Caribbean. Who is up to the task?

The Caribbean Union Trade Federation hereby “reports for duty” for the job to forge this change.

The Go Lean book details that solutions must come from all aspects of society. There are community values/attitudes that must be in place to ensure that any quest for permanent change would have some measure of success. Those attitudes are referred to as community ethos. There must first be the adoption of many such ethos, followed by the executions of strategies, tactics, implementations and advocacies to impact the region’s prospects, as detailed here:

Community Ethos – Lean Operations	Page 24
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Help Entrepreneurship	Page 28
Anecdote – Entrepreneur’s Best Place To Live? Canada	Page 39
Strategy – Vision – Integrate Region into Single Market	Page 45
Strategy – Agents of Change – Globalization	Page 57
Tactical – Confederating a Permanent Union	Page 63
Tactical – Fostering a Technocracy	Page 64
Separation of Powers – Banking Regulatory Authority	Page 73
Separation of Powers – Justice Institutions	Page 77
Implementation – Foreign Policy Initiatives at Start-up	Page 102
Implementation – Security Initiatives at Start-up	Page 103
Implementation – Ways to Deliver	Page 109
Implementation – Ways to Improve Energy Usage	Page 113
Implementation – Ways to Better Manage Debt	Page 114
Implementation – Ways to Foster International Aid	Page 115
Implementation – Ways to Benefit from Globalization	Page 119
Planning – Lessons from Canada’s History	Page 146
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Better Manage ForEx	Page 154
Advocacy – Ways to Improve Governance	Page 168
Advocacy – Ways to Enhance Tourism	Page 190
Advocacy – Reforms for Banking Regulations	Page 199
Advocacy – Ways to Impact the Diaspora	Page 217
Advocacy – Ways to Preserve Caribbean Heritage	Page 218
Appendix – Offshore Tax & Financial Services Industry Developments	Page 321

The Go Lean roadmap calls for a different entrepreneurial approach than some of the tax avoidance industries promoted in the past. These strategies have actually failed. Most offshore financial centers have modernized their lax laws to mitigate terrorism financing, thus lowering their attraction to tax evaders. The hold-outs, (Bermuda, Barbados and the Cayman Islands), are now being forced to cow-tail to the New World Order. The people of the Caribbean deserve better than waiting for “illicit bread to fall from the table” of rich nations (G-20). We have the world’s best address, for goodness sake, people should be beating a path to our doors (like the 3 million Canadians annually), not the 600,000 Caribbean citizens who have beaten down our doors to get out.

Time for change! The Go Lean roadmap is hereby presented.

The region is hereby urged to lean-in to this Go Lean roadmap, to fulfill the vision of making the Caribbean region a better place to live, work and play. 🙂

Download the book Go Lean … Caribbean – now!

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Student debt holds back many would-be home buyers

Posted on April 30, 2014 in Economics, Ethos, Industries

Go Lean Commentary

This point from the foregoing news article is most poignant: “Of the many factors holding back young home buyers … none looms larger than the recent explosion of college debt”.

The book Go Lean … Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), for the economic optimization in the region. If the target of the book is the Caribbean, why does this article about American student loans weigh so heavy in a consideration of Caribbean economics?

There are lessons to be learned here! Not just for student loans, but also regarding education policy. This issue is pivotal to the economics of the Caribbean region. This point is made early in the book’s Declaration of Interdependence (Page 13):

xxi. Whereas the preparation of our labor force can foster opportunities and dictate economic progress for current and future generations, the Federation must ensure that educational and job training opportunities are fully optimized for all residents of all member-states, with no partiality towards any gender or ethnic group. The Federation must recognize and facilitate excellence in many different fields of endeavor, including sciences, languages, arts, music and sports. This responsibility should be executed without incurring the risks of further human flight, as has been the past history.

Classic economic policy promotes that education has a direct effect on a community’s economy and the standard-of-living, quantified as each increased-grade-level, raises GDP by 3 percent (Appendix C2 – Page 258). But, the Go Lean roadmap posits that this rule is not true for the Caribbean, because of the debilitating emigration rate, the brain drain in which our educated population flees for foreign shores, or worse, students that do not return after matriculating – despite using funding from their Caribbean homeland. These are all investments with no return. In short, the economy of the Caribbean can be impacted by the activity of this recent-student population, when they repatriate; but when they emigrate, they hurt the economy.

By: Tim Logan
LOS ANGELES – Sarah Luna wants to buy a home in up-and-coming northeast Los Angeles before it’s too late.

At 31, she has a master’s degree and earns more than $70,000 as a court reporter and freelance editor. She daydreams about trading the Glendale apartment she shares for a little condo, maybe in Echo Park or Highland Park….

Just one thing holds her back: The $700 she’s paid every month since 2008, after she graduated from the University of Southern California — with $75,000 in student debt. With about half that total left to pay, buying that condo seems a long way off.

“Honestly, I don’t know if it’ll ever happen,” she said. “Barring some sort of awesome miracle, a down payment is hard to wrap my head around right now.”

Of the many factors holding back young home buyers — rising prices, tougher lending standards, a still-shaky job market — none looms larger than the recent explosion of college debt.

The amount owed on student loans has tripled in a decade, to nearly $1.1 trillion, according to the Federal Reserve Bank of New York. People in their 20s and 30s — often the best-educated and highest-earning among them — owe most of that tab. That is keeping a crucial segment of home buyers on the sidelines, deferring one of the traditional markers of adult success.

The National Assn. of Realtors recently identified student debt as a key factor in soft demand for home-buying this spring. A recent study by the trade group identified student loans as the top reason many home buyers delayed their purchase. Many more didn’t buy at all.

Surveys show today’s adults value homeownership just as much as their parents did. But the shaky job market, higher debt loads, and the roller-coaster market of recent years is keeping many from pulling the trigger, said Selma Hepp, senior economist with the California Assn. of Realtors.

“They’re just postponing,” she said. “It’s the economy and the recession and what that generation has gone through.”

The share of buyers who are first-timers has dropped well below historical averages — 28% of California buyers last year, compared with 38% typically, according to CAR surveys. The absence of a new generation of customers could become a long-term problem for the industry, said Dustin Hobbs, spokesman for the California Mortgage Bankers Assn.

“You have to have that swath of first-time buyers who will eventually be your move-up buyers,” he said. “When you take that out, it damages the whole chain.”

Traditionally, student borrowers were more likely than most people to buy a house, experts say, because college graduates tend to earn more. But that’s flipped since 2008, according to researchers at the New York Fed. Today, the share of 30-year-old homeowners who have student debt is lower than that of 30-year-old homeowners without it.

It’s a sign that skilled, educated workers are getting pushed out of the housing market.

“When people have less money to commit to housing, they don’t buy a house,” Hobbs said.

Jay Stewart Samilin sees that all the time. He’s an agent at Rodeo Realty in Beverly Hills and runs a tax preparation business on the side. Many of his younger clients are skipping the house until they pay down their debt.

“They’re maxed out on student loans, and there’s nothing else they want to think about until they pay that down,” he said.

Some who do start shopping quickly realize they can’t afford as much house as their income suggests. The more they pay each month on student loans, the less the bank will lend them to buy a house, said Natalie Lohrenz, director of counseling at Consumer Credit Counseling Services of Orange County. In a pricey market such as Southern California, that can severely limit a buyer’s options.

“You have to think about your quality of life after you purchase this home,” she said. “It’s OK to rent for awhile.”

That’s not to say some people don’t make it work.

Marco Manansala is starting to shop for a house, maybe a two-bedroom in Long Beach or on the Eastside, close to a freeway. When he began to think about it, the 28-year-old got preapproved for a loan — but only for $180,000.

“That gets you a shack,” he said. “I asked, how do I get more? They said I need to pay down debt.”

So he started aggressively paying off his car, and he’s worked his student loan balance down to $6,000, from $10,000. With a good job as a creative director for a Venice marketing agency, he has cut his spending to save up for a down payment. He’s getting close.

“I have a goal of buying something by June,” Manansala said. “I’m gearing up for it.”

But many others, like Luna, are forced to take a much longer view.

She graduated into the worst job market in decades. Although she eventually found work that enabled her to keep up with loan payments, it’s been hard to save much. In six years, she’s paid down nearly half of her original tab. When she borrowed the money for a master’s in professional writing, Luna acknowledges, she was an “idealistic” 22-year-old, and the numbers didn’t seem real.

Now the reality of a $700-a-month student loan payment makes it hard to get ahead, house or no house, even with a good salary. And she’s worried she’ll get priced out of the city she loves.

“It’s frustrating,” she said. “I think by the time I get a chance to get together that money and find a house, it’ll be unattainable.”

Source: Los Angeles Times – Online News Source – April 19, 2014 –http://www.latimes.com/business/realestate/la-fi-0420-student-debt-house-2-20140420,0,7975649.story#ixzz30Iw7x8Hz

The foregoing news article relates that education funding policies adversely affect major areas of the economy, in this case home-buying. The cause-and-effect paradigm is direct, within 5 to 10 years after graduation; a former student should be planning to buy a house. Apparently the macro economy is dependent on this relationship. According to the foregoing article, the National Association of Realtors (NAR) identified student debt as a key factor in soft demand for home-buying this spring (2014).

The Go Lean roadmap also identified that the 2008 financial crisis still deeply impacts the Caribbean economy; that it was not just the housing finance dysfunction alone that contributed to the crisis, but educational loans as well. This point is declared in Appendix IH on Page 286. This foregoing news article pronounces that the US economy continues to be impacted by a defective and dysfunctional student loan policy.

In the Caribbean, we do not want to follow this American model.

The economic solutions to effect change in the region are detailed in this book Go Lean … Caribbean as community ethos, strategies, tactics, implementations and advocates; as follows:

Community Ethos – Foster Genius	Page 27
Community Ethos – Impact R & D	Page 30
Community Ethos – Valedictorian è Diaspora	Page 38
Strategy – Study: At home –vs- Abroad	Page 50
Tactical – Education for a $800 Billion Economy	Page 70
Separation of Powers – Education Department	Page 85
Separation of Powers – Labor Training Oversight	Page 89
Ways to Better Manage Debt	Page 114
Reasons to Repatriate – Educational Inducements	Page 118
Lessons Learned from 2008	Page 136
Ways to Improve Education	Page 159
Ways to Impact Student Loans	Page 160
Improve Local Government – Education Reforms	Page 169
Better Manage the Social Contract: e-Learning	Page 170
Federal Civil Service: Education Payback Schemes	Page 173
Foster Cooperatives: Mutual Education Alternative	Page 176
Ways to Improve Libraries	Page 187
Ways to Impact the Diaspora – Education Reform	Page 217
Ways to Impact Foundations – e-Learning Focus	Page 219
Battles in the War on Poverty – e-Learning Solution	Page 222
Help the Middle Class – Educational Stimuli	Page 223
Ways to Impact Youth – Education Dynamics	Page 227
Appendix C2 – Education and Economic Growth	Page 258

The goal of the Go Lean roadmap is to make the Caribbean a better place to live work, learn and play. To elevate our economy, we must continue to place a high priority on education, thus the roadmap features our own student loan solution (Page 160) and numerous reforms and optimizations. But we need to be prepared for many of the same pitfalls that have befallen the US. We especially want to learn from these American mistakes:

It’s not the cost of the loan that’s the problem; it’s the principal – the appallingly high tuition costs that have been soaring at two to three times the rate of inflation, an irrational upward trajectory eerily reminiscent of skyrocketing housing prices in the years before 2008. – Ripping Off Young America: The College – Loan Scandal By Matt Taibbi, Rolling Stones Magazine; August 15, 2013. (Appendix IH – Page 286).

For the past 40 – 50 years, we have pushed too hard on college education, just for the sake of the “best practice” in economic elevation. We have suffered as a result, with a brain drain and excessive debt.

As a region, we cannot risk losing any more of our young adults and their contribution to their communities. Plus, we do not want to saddle them with overbearing student loans; this “paints them in a corner” where they must flee to earn enough money to repay the loans; (but so often, they have simply defaulted – which imperils the next generation).

We want to learn from our past mistakes!

We want to learn from America’s mistakes!

So we must deliver quality affordable education at home, without predatory lending habits. For the Caribbean, we do not want to be America. We want to be better!

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

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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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