Tag: Power

Advocates push for junk-food tax

Go Lean Commentary

Junk FoodThe forgoing article focuses on an important issue for the Caribbean. Diabetes is a scourge to the region; it is among the leading causes of death. Though death is the final destination of all humans, quality of life is a fitting goal for optimization. Diabetes is a degenerative disease; it grievously affects the quality of life; over time, its sufferers are afflicted with ailments like kidney failures, amputations and blindness. In addition to the personal discomforts, these treatments exact a huge toll on a community’s economics. For this matter, this subject is in scope for the Caribbean Union Trade Federation (CU).

The book, Go Lean … Caribbean, serves as a roadmap for the introduction and implementation of the CU. This technocratic agency will assume oversight to optimize the region’s:

(1) economy,

(2) security apparatus, and

(3) governing engines.

The subject of diabetes disease management is in scope for all 3 of these prime directives. The importance and linkage of the topics for diabetes, healthcare and economics are undeniable. But there are security threats as well, as advanced diabetes dispositions increase the need for organ transplantations, inducing many to venture into the illegal organ trade markets. Finally, the strain on governments to service this population and develop mitigation plans is a constant priority – or should be.

By: FELICIA FONSECA

Flagstaff, Arizona — Facing a high prevalence of diabetes, many American Indian tribes are returning to their roots with community and home gardens, cooking classes that incorporate traditional foods, and running programs to encourage healthy lifestyles.

The latest effort on the Navajo Nation, the country’s largest reservation, is to use the tax system to push people to ditch junk food.

Navajo President Ben Shelly earlier this year vetoed measures to enact a 2 percent sales tax on tax on chips, cookies and sodas, and to eliminate the tax on fresh fruit and vegetables. This week, tribal lawmakers have a chance to resurrect the proposals, and supporters are optimistic they’ll be among the first in the country to succeed.

Elected officials across the U.S. have taken aim at sugary drinks with proposed bans, size limits, tax hikes and warning labels, though their efforts have not gained widespread traction. In Mexico, lawmakers approved a junk food tax and a tax on soft drinks last year as part of that government’s campaign to fight obesity.

Shelly said he supports the intent of the proposals on the Navajo Nation but questioned how the higher tax on snacks high in fat, sugar and salt would be enacted and regulated. Supporters of the tax say it is another tool in their fight for the health of the people.

“If we can encourage our people to make healthier choices and work on the prevention side, we increase the life span of our children, we improve their quality of life,” said professional golfer Notah Begay III, who is among supporters.

American Indians and Alaska Natives as a whole have the highest age-adjusted prevalence of diabetes among U.S. racial and ethnic groups, according to the American Diabetes Association. They are more than twice as likely as non-Hispanic whites to have the disease that was the fourth leading cause of death in the Navajo area from 2003 to 2005, according to the Indian Health Service.

Native children ages 10 to 19 are nine times as likely to be diagnosed with Type 2 diabetes, the IHS said.

The proposed Navajo Nation tax wouldn’t add significantly to the price of junk food, but buying food on the reservation presents obstacles that don’t exist in most of urban America. The reservation is a vast 27,000 square miles with few grocery stores and a population with an unemployment rate of around 50 percent. Thousands of people live without electricity and have no way of storing perishable food items for too long.

“They have a tendency to purchase what’s available, and it’s not always the best food,” said Leslie Wheelock, director of tribal relations for the U.S. Department of Agriculture.

Wheelock said the diabetes issue in tribal communities is one that has been overlooked in the past or not taken as seriously as it could be. It has roots in the federal government taking over American Indian lands and introducing food that tribal members weren’t used to, she said.

To help remedy that, the USDA runs a program that distributes nutritional food to 276 tribes. Grants from the agency have gone toward gardening lessons for children within the Seneca Nation of Indians in New York, culturally relevant exercise programs for the Spirit Lake Tribe in North Dakota and food demonstrations using fresh fruit and vegetables on the Zuni reservations in New Mexico.

The Dine Community Advocacy Alliance, which has been pushing for the Navajo Nation junk food tax, estimates it will result in at least $1 million a year in revenue that could go toward wellness centers, community parks, walking trails and picnic grounds in tribal communities in Utah, New Mexico and Arizona. It would expire at the end of 2018.

Tribal lawmakers will vote this week on overturning Shelly’s vetoes. Regardless of whether that legislation passes, “we have to keep stepping up to the plate,” alliance member Gloria Begay said.

No other sales tax on the Navajo Nation specifically targets the spending habits of consumers. Alcohol is sold in a few places on the reservation but isn’t taxed. Retailers and distributors pay a tobacco tax.

Opponents of the junk food tax argue it would burden customers and drive revenue off the reservation. Mike Gardner, executive director of the Arizona Beverage Association, said the lack of specifics in the legislation as to what exactly will be taxed could mean fruit juice and nutritional shakes would be lumped in the same category as sodas.

“I don’t think they mean that, but that’s what will happen,” Gardner said. “It’s a little loose, a little vague. It’s going to create problems for retailers and … it doesn’t solve the problem.”

a. By the numbers:

Total population of Navajo Nation: 250,000

Unemployment rate: 44%

Families living in poverty: 30.5%

People living with diabetes: 55,000

Source: Partners In Health (PIH), a 501(c)(3) nonprofit corporation headquartered in Boston, Massachusetts. (http://www.pih.org/country/navajo-nation/about)

Associated Press (AP) News Wire Service (Retrieved 04/22/2014) –
http://news.yahoo.com/advocates-push-junk-food-tax-navajo-nation-155642994.html

The roadmap commences with a Declaration of Interdependence. In Verse IX (Page 11) it pronounces:

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

The foregoing article highlights diabetes disease management in the controlled population of the Native American Reservation for the Navajo Nation in Arizona [a]. In fact, Go Lean posits that the Caribbean can benefit greatly from a consideration of the examples, samples and lessons from Native American tribes and their experiences. This is included in the book as “10 Lessons from Indian Reservations” (Page 141). As for this issue, Go Lean also recognizes that food choices and the preponderance of junk food could imperil community wellness; (Page 162). We must therefore take heed to these lessons.

The CU mission is to implement the complete eco-system to re-boot health delivery in the region. Applying strategies to win the battles of globalization, the Go Lean roadmap urges the Caribbean region to not only consume; we must create and contribute as well. In that vein, there are many tactics, implementations and advocacies to facilitate the vision for R&D, incubation, entrepreneurship and many other areas related to medical tourism. These are detailed here:

Community Ethos – Deferred Gratification Page 21
Community Ethos – Intelligence Gathering Page 23
Community Ethos – “Bad Things” Happen Page 23
Community Ethos – Lean Operations Page 24
Community Ethos – Return on Investments Page 24
Community Ethos – Non-Government Org’s. Page 25
Help Entrepreneurship Page 28
Impact Research and Development Page 30
Promote Happiness Page 36
Impact the Greater Good Page 37
Separation of Powers – Health Department Page 86
Steps to Implement Self-Governing Entities Page 105
Ways to Benefit from Globalization Page 119
Improve Healthcare Page 155
Impact Entitlements Page 158
Better Manage Food Consumption Page 162
Better Manage the Social Contract Page 170
Foster Cooperatives Page 176
Ways to Improve Organ Transplantations Page 214
Impact Foundations Page 219
Improve Elder-Care Page 225
Impact Persons with Disabilities Page 228

The roadmap addresses the obstacles for full implementation of the CU objectives. Like most communities, there are cost constraints, as the foregoing article reports on a special tax to fund junk food mitigations. How will the CU pay for its strategic and tactical initiatives?

The book addresses this issue in full detail in these advocacies:

Ways to Pay for Change Page 101
10 Revenue Sources for Administration Page 172

Change has come to the Caribbean. Both the people and institutions of the region are urged to “lean-in” for this change. As described in the book Go Lean … Caribbean, the benefits of this roadmap are too important; improving health deliveries is not just economic, more important, it’s about saving lives.

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

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The Pope as a ‘Turnaround CEO’ – The Francis effect

Go Lean Commentary

Every Caribbean country elevates and respects the Christian celebration of Easter. On this occasion, we consider a review of the Roman Catholic leader, Pope Francis, and his management style in relation to a ‘Turnaround CEO’. (Technically, the Pope is a CEO, and a King; see VIDEO in the Appendix).

Pope Francis

The subject of religion is very important to the SFE Foundation, publishers of the book Go Lean … Caribbean. While the foundation is apolitical and religiously neutral, it does draw insight from the underlying guide that Pope Francis embraces, the Holy Bible. In fact, Go Lean features an advocacy applying the insight from the Bible on economic and governing matters:

10 Lessons from the Bible – Page 144.

As for this ‘Turnaround CEO’, Jorge Bergoglio of RC Global (RC = Roman Catholic), assumes this position at a time of crisis (of faith) for his organization, the Church. There are lessons and application here for the object of devotion for the SFE Foundation, turn-around for the Caribbean, since this region is also in crisis! (Also, a crisis of faith, in which people are quick to flee their beloved homelands for distant shores).

***About to take over a crisis-ridden company with a demoralised workforce? Turn to this Roman case study***
Business schools regularly teach their students about great “turnaround CEOs” who breathe new life into dying organisations: figures such as IBM’s Lou Gerstner, Fiat’s Sergio Marchionne and Apple’s Steve Jobs. Now Harvard Business School needs to add another case study: Jorge Bergoglio, the man who has rebranded RC Global in barely a year.

When Pope Francis celebrated his first Easter as CEO, just after being appointed, the world’s oldest multinational was in crisis. Pentecostal competitors were stealing market share in the emerging world, including in Latin America, where Francis ran the Argentine office. In its traditional markets, scandals were scaring off customers and demoralising the salesforce. Recruitment was difficult, despite the offer of lifetime employment in a tough economy. The firm’s finances were also a mess. Leaked documents revealed the Vatican bank as a vortex of corruption and incompetence. The board was divided and weak. Francis’s predecessor, Benedict XVI, was the first Pope to resign for 600 years, amid dark rumours that the founder and chairman, a rarely seen elderly bearded figure whose portrait adorns the Sistine boardroom, had intervened.

Operating Prophet
In just a year, the business has recovered a lot of its self-confidence. The CEO is popular: 85% of American Catholics—a tough audience—approve of him. Footfall in RC Global’s retail outlets is rising again. The salesforce now talks about a “Francis effect”. How has a [70 year old] Argentinian succeeded in galvanising one of the world’s stodgiest outfits? Essentially by grasping three management principles.

The first is a classic lesson in core competences. Francis has refocused his organisation on one mission: helping the poor. One of his first decisions was to forsake the papal apartments in favour of a boarding house which he shares with 50 other priests and sundry visitors. He took the name of a saint who is famous for looking after the poor and animals. He washed and kissed the feet of 12 inmates of a juvenile-detention centre. He got rid of the fur-trimmed velvet capes that Popes have worn since the Renaissance, swapped Benedict’s red shoes for plain black ones and ignored his fully loaded Mercedes in favour of a battered Ford.

This new focus has allowed the company to spend fewer resources on ancillary businesses, such as engaging in doctrinal disputes or staging elaborate ceremonies. The “poor-first strategy” is also aimed squarely at emerging markets, where the potential for growth is greatest but competition fiercest.

Along with the new strategic focus, the Pope is employing two management tools to good effect. One is a brand repositioning. He clearly continues to support traditional teaching on abortion and gay marriage, but in a less censorious way than his predecessors (“Who am I to judge?” he asked of homosexuals). The other is a restructuring. He has appointed a group of eight cardinals (“the C8”) to review the church’s organisation and brought in McKinsey and KPMG (“God’s consultants”) to look at the church’s administrative machinery and overhaul the Vatican bank.

Will it work? Established critics, notably the corporate raider Lou Siffer, maintain it is all incense-smoke and mirrors. Others insist that more sweeping change, including a bigger role for women, is needed. The chairman’s attitude is unknown. Some analysts interpret the absence of plagues of boils and frogs as approbation; others point out that He moves in mysterious ways, his wonders to perform.

The Economist Magazine – Retrieved Apr 19th 2014 from: http://www.economist.com/news/leaders/21600980-about-take-over-crisis-ridden-company-demoralised-workforce-turn-roman-case

The foregoing article identified the Pope’s 3 management principles:

  1. Re-focusing on Core Competence
  2. Brand Re-positioning
  3. Restructuring

The book Go Lean … Caribbean serves as a roadmap for change in the Caribbean, with the introduction and implementation of the Caribbean Union Trade Federation (CU). It identifies the same 3 management principles (and then more), for contending with the crises that befalls the Caribbean member-states. Specifically the above 3 principles are identified, qualified and proposed with these detailed pages from the book:

  1. Strategy – What are we best at doing? (Page 58)
  2. Ways to Better Manage Image (Page 133)
  3. Ways to Impact Turn-arounds (Page 33); Re-boot Freeport (Page 112); Re-boot Cuba (Page 236); Re-boot Haiti (Page 238); Re-boot Jamaica (Page 239)

What are the management training and influences of Pope Francis? Is he influenced by his successful accomplishment of other crisis?

In an earlier article on the accomplishments of Pope Francis, the same Economist magazine (March 8, 2014 edition) associated Pope Francis management style with Peronist philosophies:

The political landscape of Francis’s homeland, however, offers a more accurate, and nuanced, understanding of his views. For most of his life Argentina has plotted a kind of third way between Marxism and liberalism—albeit one with disastrous political and economic results. “[Francis] only knows one style of politics,” says a diplomat accredited to the Holy See. “And that is Peronism.”

The creed bequeathed by Argentina’s former dictator, General Juan Perón, with its “three flags” of social justice, economic independence and political sovereignty, has been endlessly reinterpreted since. Conservatives and revolutionaries alike have been proud to call themselves Peronist. But at its heart it is corporatist, assigning to the state the job of resolving conflicts between interest groups, including workers and employers. In that respect it resembles fascism and Nazism—and also Catholic social doctrine.

The Pope’s Peronist side shows in his use of a classic populist technique: going over the heads of the elite to the people with headline-grabbing gestures and comments. And it is visible in his view of political economy, which also has much in common with post-Marxist protest movements such as Occupy Wall Street, the Spanish indignados and Italy’s Five Star Movement.

“While the earnings of a minority are growing exponentially, so too is the gap separating the majority from the prosperity enjoyed by the happy few,” he has written. “This imbalance is the result of ideologies which defend the absolute autonomy of the marketplace and financial speculation. Consequently, they reject the right of states, charged with vigilance for the common good, to exercise any form of control.”

(http://www.economist.com/news/international/21598677-how-modest-canny-man-approaching-complex-task-leading-roman-catholic)

Conversely, consider the management influences of the architects of the Go Lean roadmap. Are they influenced by successful management of other crises?

The answer is a resounding Yes! At the outset of the book (Page 8), the publishers are identified and qualified with these statements:

The peak day of the recent global financial crisis was September 15, 2008. On this day, Wall Street giant Lehman Brothers filed for bankruptcy protection, and eventual dissolution, after succumbing to the weight of over-leverage in mortgage-backed securities. There is an old observation/expression that states that “there are 3 kinds of people in the world, those who make things happen, those who watch things happen and those who wonder ‘what happened?’“ Principals of SFE Foundation were there in 2008 … engaged with Lehman Brothers (and subsequently BearStearns and JPMorganChase); on the inside looking out, not the outside looking in. Understanding the anatomy of the modern macro economy, allows the dissection of the processes and the creation of viable solutions.

The Pope wants errant members of his flock, the Catholic Church, to return to worship in the pews and at the altars of local parishes. The same as he assumes an oversight position to turn-around “the fortunes” of RC Global – the Catholic Church, so too the CU, following the Go Lean roadmap, has to assume oversight of much of the Caribbean economic, security and governing functionality.

In summary, this plan’s execution will make the Caribbean, a better place to live, work and play.

Change has come to the Caribbean. There is a new vehicle for turning-around the region’s economic, security and governmental drivers. The people and institutions are urged to “lean-in” for this change. The benefits: emergence of an $800 Billion regional economy, 2.2 million new jobs and the lure for millions of Diaspora members to set their sights on a return to their homelands. 🙂

Download the book Go Lean … Caribbean – now!

———

Appendix – VIDEO: Vatican City Explained – https://youtu.be/OPHRIjI3hXs

 

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‘Only at the precipice, do they change’

Go Lean Commentary

Keanu Nanu

“Life imitating Art”; “Art imitating life”.

This is more than a cliché; it is also factual for describing how people finally get the will to change.

The movie The Day the Earth Stood Still (2008) – demonstrates “Art imitating Life” – is a remake of the classic 1951 sci-fi film of the same name; see Trailer VIDEO in the Appendix below. These films are about an alien visitor and his giant robot counterpart who visit Earth.

The character Professor Jacob Barnhardt, in the 2008 version, was played by John Cleese, the English actor of some repute, known for his start with the Mighty Python players.

The counter character in this dialogue, Klaatu, was played by American mega-star Keanu Reeves.

The storyline proceeds that the character Klaatu is a spokesman that preceded the robot sent to destroy human life on earth. And thus this quotation from the Movie Dialogue:

Professor Barnhardt: There must be alternatives. You must have some technology that could solve our problem.

Klaatu: Your problem is not technology. The problem is you. You lack the will to change.

Professor Barnhardt: Then help us change.

Klaatu: I cannot change your nature. You treat the world as you treat each other.

Professor Barnhardt: But every civilization reaches a crisis point eventually.

Klaatu: Most of them don’t make it.

Professor Barnhardt: Yours did. How?

Klaatu: Our sun was dying. We had to evolve in order to survive.

Professor Barnhardt: So it was only when your world was threatened with destruction that you became what you are now.

Klaatu: Yes.

Professor Barnhardt: Well that’s where we are. You say we’re on the brink of destruction and you’re right. But it’s only on the brink that people find the will to change. Only at the precipice do we evolve. This is our moment. Don’t take it from us. We are close to an answer.

(Source: Internet Movie Database – Movie: The Day the Earth Stood Still (2008). Retrieved 04/21/2014 – http://www.imdb.com/character/ch0012790/quotes)

This foregoing dialogue from the movie The Day the Earth Stood Still (2008) is symbolic of the crisis facing the Caribbean. The problem in the Caribbean is not technology, but rather the will to change. This is a consistent theme in the book Go Lean … Caribbean, it asserts that the changes necessary to preserve Caribbean heritage, culture and economies must first be preceded by an evolution in the community ethos. This pronouncement is as follows from Page 20:

The people of the Caribbean must change their feelings about elements of their society – elements that are in place and elements missing. This is referred to as “Community Ethos”, defined as:

    “the fundamental character or spirit of a culture; the underlying sentiment that informs the beliefs, customs, or practices of a group or society; dominant assumptions of a people or period.

This book serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), a technocratic agency seen as the Caribbean’s best hope to avert the current path of disaster, human flight and brain drain, and grant the Caribbean a meaningful future for its youth.

This movie dialogue synchronizes with the exact details of the book. On Page 21, Go Lean presents a series of community ethos that must be adapted to forge change in the Caribbean. In addition, there are specific advocacies to:

  • Impact the Future (Page 26)
  • Impact Turn-Around (Page 33)
  • Impact the Greater Good (Page 37)
  • Grow the Economy (Page 151)
  • Preserve Caribbean Heritage (Page 218)

As a roadmap, this book provides the turn-by-turn guidance to optimize the Caribbean economy, security apparatus and governing engines.

With the assessment that many Caribbean states have lost more than 50% of their population to foreign shores (Pages 18 & 303), the region is now at that “precipice”.

“It is only at the precipice, do they change!”

Now is the time to lean-in to this roadmap for change, the book Go Lean … Caribbean, and the Caribbean Union Trade Federation. Our society/civilization is at the crisis point.

Download the book Go Lean … Caribbean – now!

————-

Appendix VIDEO – The Day The Earth Stood Still 2008 Official Trailer  – https://youtu.be/rcSJ-6354-A

Published on Aug 5, 2012 – A remake of the 1951 classic sci-fi film about an alien visitor and his giant robot counterpart who visit Earth.
Keanu Reeves & Jennifer Connelly http://www.keanureeves.us/movie/the-d…
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Book Review: ‘The Divide’

Go Lean Commentary

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

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

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

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

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

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

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

THE DIVIDE (Spiegel & Grau Publishers)

American Injustice in the Age of the Wealth Gap

By Matt Taibbi

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

800px-Statue_of_Liberty,_NYThere it is, the United States, where there seems to be a Great Divide in justice, one set of standards for the rich, another set for the poor.

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

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

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

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

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

 

 

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How Nigeria’s economy grew by 89% overnight

Go Lean Commentary

Nigeria EconomyThese words jump off the page in reviewing the foregoing article:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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PetroCaribe press ahead with plan to eradicate hunger & poverty

Go Lean Commentary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

———–

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

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

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

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

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

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

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

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

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

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

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

Appendix – Referenced Sources:

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

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

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

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

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

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Barbados Central Bank records $3.7m loss in 2013

Go Lean Commentary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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Bahamas Debate: Was Prime Minister Behind On Tax?

Go Lean Commentary

Photo - Perry Christie in ParliamentThe news article below is from The Tribune, a daily newspaper that covers the Bahamas. The story touches on a critical mission and motivation of the Caribbean Union Trade Federation (CU):

To re-boot the revenue systems that the region’s member-state governments depend on.

The book Go Lean … Caribbean, which serves as a roadmap for implementing the Caribbean Union Trade Federation, commences with an opening Declaration of Interdependence. In Verse XIV (Page 12) it pronounces:

Whereas government services cannot be delivered without the appropriate funding mechanisms, “new guards” must be incorporated to assess, accrue, calculate and collect revenues, fees and other income sources for the Federation and member-states. The Federation can spur government revenues directly through cross-border services and indirectly by fostering industries and economic activities not possible without the Union.

The below article crystalizes a debate. The country is mid-stream in implementing a new eco-system for assessing – collecting a Value-Added Tax (VAT). The proponents of the VAT are convinced that this is the panacea for the failure of real property tax collection, where even prominent politicians admit to not complying with the current taxing requirement. The foregoing debate is that maybe even the Prime Minister, Perry G. Christie, is delinquent, or may have been in the past. See the article here:

By: Khrisna Virgil, Tribune Staff Reporter (kvirgil@tribunemedia.net)

FNM (Bahamian Opposition Party) Deputy leader Loretta Butler-Turner is calling on Prime Minister Perry Christie to fully disclose whether he at some point fell behind in paying his real property taxes, and, if so, the years involved.

Branding him as the worst Prime Minister the Bahamas has seen to date, Mrs Butler-Turner criticised Mr Christie following his admission that he was unaware of which PLP parliamentarians, if any, were in arrears with their taxes.

The comments came amid a wave of backlash sparked following VAT advisor Ishmael Lightbourne’s confession that he had not paid real property taxes over the last decade. He owe’s the government more than $7,000.

The Christie administration has been heavily criticised since news of Mr Lightbourne’s delinquent account went public, especially as the government struggles to make its case that VAT is a suitable revenue-generating system.

It was Mrs Butler-Turner’s opinion that Mr Christie was “the most incompetent and irresponsible Prime Minister and Minister of Finance since the advent of Cabinet government in the Bahamas. He is very good at pleading ignorance and very poor at accepting responsibility.

“For the sake of accountability and responsibility might Mr. Christie advise if there were years when he did not pay his real property taxes in a timely manner and how many years this involved?

“If Mr Christie failed to ask (PLP parliamentarians), he is even more incompetent and slacker as Prime Minister than previously thought.

“He now says, ‘I will in fact review that with a view to seeing those of us who are in arrears of the various requirements in terms of taxes and with a view to advising them to meet the payments.’

“Why is he just doing this now, nearly two years after returning to office and on the eve of introducing legislation on VAT, legislation that has been postponed on three occasions by an incompetent government?

“He wants the Bahamian people to pay taxes and wants to raise taxes on law-abiding citizens, including the poor, but doesn’t know who in his own ranks are paying taxes? Is there one standard for the Bahamian people and another standard for PLP parliamentarians?”

Mrs Butler-Turner accused the Christie administration of being one of double standards, made clear, she said, by the actions of some PLPs. She added that seemingly it does not matter if taxes are raised or lowered because there are members of the government who simply do not pay.
Source: The Tribune – Daily newspaper online site (Retrieved 02/26/2014) –http://www.tribune242.com/news/2014/feb/26/fnm-deputy-was-prime-minister-behind-tax/

There are countless anecdotes in the Bahamas, and other countries with similar tax schemes and regimes, where property taxes had not been paid for decades, and only when there is a need for property title transfer (sale or inheritance), does the issue of tax collection become relevant. Does that anecdote also apply to the current Bahamian Prime Minister? This is not known here and now! Nor is it considered in the Go Lean book. The charge in the foregoing article seems to be more of a sensational political volley, rather than a statement of fact.

The CU, on the other hand, takes an apolitical, non-partisan stance. Further the Go Lean book asserts  that even the originator of Christianity, Jesus Christ, advised his followers to “pay Caesar’s things to Caesar”. This is found in a Chapter entitled:

10 Lessons from the Bible (Page 144).

(Note: the Bahamas claims to be a Christian nation).

The CU mission is to implement the complete eco-system for property tax assessment, registration and collections. The roadmap advocates an optimized tactic where the CU operates as a technocratic deputized agency and acquires “Receivables” for a country’s property taxes, in advance, and then subsequently facilitates collections and servicing. Imagine the Bahamas, and other similar member-states, under this new regime, receiving a warrant (securitized payment) of 80% of the amount of tax revenues that should be collected in a “perfect scenario” – 10 Ways to Pay For Change (Page 101). It then becomes the job of the CU’s technocratic professionals to complete the collection cycle – removing any political prejudices from the process – 10 Ways to Improve Credit Ratings (Page 155).

Without a doubt, this approach is far better than the status quo.

Download the book Go Lean … Caribbean – now!

 

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Fed Releases Transcripts from 2008 Meetings

Go Lean Commentary

Photo - US Federal reserve Bank Building (1)This foregoing article is part of the process of post-mortem analysis, sometimes referred as “Monday Morning Quarterbacking” or “Armchair Quarterbacking”. This can be a helpful process as it allows for lessons-learned of previous episodes and the mitigation of future risk. This is the premise of the book Go Lean … Caribbean. This book, serving as a roadmap for change in the Caribbean region, posits that the effects of the 2008 Great Recession continue to linger. Therefore the book advocates lessons from 2008 and the implementation of reforms, re-boots and turn-arounds to steer the region to a better outcome.

The book is inspired by the words of famed American Economist Paul Romer, who coined the phrase: “A crisis is a terrible thing to waste”. The above article shows that this philosophy was also incorporated in the undertakings of many of the stakeholders battling the challenges of 2008 – they did not waste the crisis. Many things that were blatantly wrong in the macro economy before 2008 were corrected by this crisis. The “easy money” policies and NINJA (No Income No Job or Assets) loans of the 2000’s decade were abated. The financial industries have now moved back to more sound, fundamental lending principles.

By Dunstan Prial:

Transcripts from 2008 Fed meetings divulge publicly, for the first time, details of decisions made by the central bank during the height of the financial crisis. [US Federal Reserve Chairman Ben] Bernanke proposed two options: an emergency term securities lending facility and to expand and extend the currency swap lines with struggling European banks.

By late October, after the collapse of Lehman Brothers and the fire sales of several other large banks on the brink of collapse, the Fed had dropped interest rates to about 1% and introduced a host of other emergency measures. And Fed policy members were apparently quarreling over whether those measures and how they were communicated to the public were helping or harming.

At the Fed’s Oct. 28-29 meetings, Timothy Geithner, then president of the New York Fed, scolded some colleagues for suggesting the Fed’s bold moves were hurting broader confidence in the economy: “Now, a lot of things happened over the last three months and the last year, and a lot of things happened in terms of policy over the last six weeks. There is no doubt that communication about policy by all the arms of the U.S. government and the uncertainty created by the actions by all the arms of the U.S. government contributed in ways to uncertainty about the policy response going forward,” Geithner said.

“There is also no doubt that inevitably in a crisis like this, when policy moves forcefully, it is scary because a lot of people are not yet at the point of assessing or understanding the forces driving our decisions. But I think it’s just unfair to suggest that the actions by the Chairman and this Committee were a substantial contributor to the erosion in confidence and to uncertainty about further policy actions, even though it’s true that when we move with force and drama it has the risk of adding to uncertainty.”

Geithner was a key supporter of the activist measures taken by the Fed before being named Treasury Secretary after Barack Obama was elected in November 2008. The transcripts, which run into the hundreds of pages, reveal that this was the beginning a series of unprecedented measures taken by the Fed in an effort to stave off another Depression.

The 14 transcripts are from eight scheduled meetings and six emergency meetings of the policy setting Federal Open Market Committee, which sets the central bank’s monetary policy, including the level of short-term rates.

The transcripts do not include other meetings at which smaller groups of Fed officials, working with the Treasury Department, arranged the bailouts of bankrupt Bear Stearns, the American International Group (NYSE: AIG), and housing service entities Fannie Mae and Freddie Mac.

Nor do the transcripts include notes from the meetings at which policy makers decided to let investment bank Lehman Brothers fall, which occurred in September 2008 and proved a key event at the outset of the crisis.

Fox Business News Online (Retrieved 02/21/2014) –http://www.foxbusiness.com/economy-policy/2014/02/21/fed-releases-transcripts-from-2008-meetings/

How about the Caribbean? Has the lessons been learned in and for this region? Have the blatantly wrong policies been abated? Has the markets returned to fundamentally sound policies?

Unfortunately, with the ever-expanding brain drain/human flight crisis in the Caribbean, the economic problems persist. Is it fair to conclude that when people move from the Caribbean to the US mainland, Canada or EU member-states, that there is some failure on behalf of Caribbean society? The Go Lean roadmap so declares, identifying “push-and-pull” underlying factors.

What qualifies the writers of this book to make these assessments?

Simple! They have lived the issues depicted in this foregoing news article and the Go Lean roadmap. The book is published by the SFE Foundation, a Community Development Corporation constituted by members of the Caribbean Diaspora. These are people who love their homeland, and would rather live, work and play there, but instead, find themselves toiling as alien residents in foreign lands. Principals of this foundation were also there in 2008, engaged with major stakeholders of the Global Financial crisis: Lehman Brothers, BearStearns. JPMorganChase, CitiGroup, etc. They were on the inside looking out, not the outside looking in. They were movers-and-shakers of the macro economy, not just armchair quarterbacks.

 

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Book Review: ‘How Numbers Rule the World: The Use & Abuse of Statistics in Politics’

Go Lean Commentary

How Numbers Rule the WorldThe below news article is a Review of the above-cited book; it highlights many of the same approaches being used in the publication Go Lean … Caribbean for the introduction and implementation of the Caribbean Union Trade Federation (CU). This book embraces the concepts of agile or lean methodologies to measure and manage progress in the region. Thus the name Go Lean. The Federation will lean-in to best-practices for capturing, computing, and measuring good economic and consumption data.

The source book by Lorenzo Fioramonti focuses on the use and abuse of statistics in the field of economic measurements, or econometrics. He asserts that the aggregate numbers are so critical that they “rule the world”. Due to this power, there is a basis for abuse, and far too often bad numbers have been used to exploit good intentions. The Go Lean book serves as a roadmap for the 5-year implementation of the CU. This requires exact econometric measurements from the outset, and thusly organizational structures will be embedded with the capabilities to facilitate this mandate. See the review here:

Book: How Numbers Rule the World: The Use and Abuse of Statistics in Global Politics. Lorenzo Fioramonti. Zed Books

Review by: Stuart Astill

GDP drives our economies. Stock market indices flood our media and national debates. Statistical calculations define how we deal with climate change, poverty and sustainability. But what is behind these numbers? In this book, Lorenzo Fioramonti sets out to show how numbers have been used as a means to reinforce the grip of markets on our social and political life, curtailing public participation and rational debate. Stuart Astill finds it to be a well written book, blending together knowledge from different fields into a coherent and readable whole. Of interest to economists, statisticians and especially those studying all aspects of power and politics.

During my time as a government statistician I had literally no idea that I was not, as many people thought, an oxymoron, but rather I was a tautology. I have discovered amongst many other things, thanks to Lorenzo Fioramonti‘s book, that statistics were originally created for the express purpose of governing and reforming the state, hence the ‘stat’ part of the name.

However, the title of the book, “How numbers rule the world”, is much closer to describing the content than is the subtitle, “the use and abuse of statistics in global politics”. Fioramonti’s main concerns are economists and, perhaps even more, the people who ask questions of economists and statisticians. He intelligently explains how he despairs of people who abuse their technical

knowledge or their advantageous position to turn the world to their own ends rather than the common good. This is not surprising: the author holds a Chair in Governance at the University of Pretoria and applies governance thinking through his work on topics around development, alternative economies and social progress measurement.

This book is consequently largely about power, rather than numbers: it illustrates a subset of abuses of power that have numbers at their heart. It is in some ways a psychopath’s guide to bullying the world by numbers – pretending that everything is ‘rational’, ‘independent’ and ‘objective’ and building fortresses of power around these intentional misrepresentations. In a provocative and fascinating first introductory chapter Fioramonti outlines his take on the world of ‘official’ numbers – perhaps best summed up where he says “Experts who use numbers have become the guardians of [this] social trust… citizens, elected representatives and other stakeholders… are held hostage by experts…”

The main chapters are quite specific techno-politico-historical investigations into four areas; ‘New global rulers: the untameable power of credit rating’, ‘Fiddling while the planet burns: the marketization of climate change’,

‘Measuring the unmeasurable: the financialization of nature’ and ‘Numbers for good? The quest for aid effectiveness and social impact’. He concludes with ‘Rethinking numbers, rethinking governance’. The whole is well written, blending together knowledge from different fields into a coherent and readable flow with a good number of ‘light bulb’ moments.

As a slight criticism from a purist, Fioramonti occasionally blurs the undeniable neutrality of mathematics and the more qualitative issues that necessarily sit around it. Economics and, to a slightly lesser extent, applied statistics consist of assumptions first and foremost, plus mathematics. I would have preferred to have seen clearer isolation of elements that are unquestionably objective and true – there is only one way for a statistician to calculate where the 90th percentile lies and only one way for an economist to carry out a simple linear regression. What Fioramonti is discussing is not just mathematics, but numbers in the real political world that sit as the filling in a sandwich. On either side of the pure mathematical filling is the sometimes rotten bread. In statistics we have on one side the definition of the statistics under consideration and the selection of the methodology that will be used – on the other side a slice of presentation and selective highlighting (or subtle downplaying). In economics, even more crucially, the fundamental assumptions that define the model (the most famous of which is the General Equilibrium, or ‘free market’ model) make one slice of the bread, while the presentation and choice of weighting empirical evidence with pure theory form the other.

Mathematics is the neutral servant of the assumptions but the assumptions can and should be stated and debated independently. I have always argued that the crucial step in analysis is to come back to our clearly stated assumptions and test them in view of our results against the real world. We must embrace a qualitative depth even in the most apparently quantitative pursuits. Professor Fioramonti has shown in a passionate and convincing way the global importance of this aspiration. His unarguable clarion call is for clarity, transparency and widespread, gentle and constructive skepticism.

I would add that we must make a great push for wider numeracy and understanding of scientific philosophy. In our world it is possible for a senior public servant to say “I don’t do numbers”, despite ‘analysis and use of evidence’ being one of their core competencies. As long as the public and the politerati do not have the skills to engage with (note, not in) quantitative analysis we cannot escape the traps that are so vividly described by this book.

Another lesson illustrated clearly by Fioramonti in this book is to embrace ambiguity. From a practitioner’s point of view it is crucial to consider how integrity can go hand in hand with progressing the use of numbers in a beneficial way. I was particularly taken by the chapter ‘Numbers for good? The quest for aid effectiveness and social impact’ which illustrates Fioramonti’s theme particularly well, showing how the undeniable power of numbers to reduce the inconceivable reality of the world to manageable proportions can lead to dangers, especially when exercised in the realm of human behaviour. The sharpness of his argument is summed up when he says that “the complexity of social relations is lost through the cracks of mathematical algorithms”.

His dismay at models being ignorantly lifted from the world of business and planted in non-profit development sectors is clear and well evidenced. There is a wonderfully familiar feeling to a quote in the chapter on aid effectiveness where the author is commissioned by his development-sector client to “improve their impact assessment tools”. Fioramonti offers them a coherent and balanced strategy with a methodology that is sensitive to the needs of the client and, hopefully, inclusive and beneficial to those in the developing countries. The CEO of the commissioning organisation listens and then baldly states: “Dr Fioramonti, there must have been a misunderstanding… we want you to develop one number which can tell us if what we do works or doesn’t. As simple as that.”

To have integrity, practitioners must recognise the right of commissioners of work to voice such a demand, whilst to the best of their capability working to a conclusion that, at worst, does no harm. At best the practitioner’s conclusion improves the world, moves forward the client’s understanding and improves the shared body of knowledge. Not easy when there are practitioners out there with less integrity, ready to take money in exchange for work that may do harm.

The author shows us in the historical section of this chapter the devastating scale of the misguidedness (my polite phrase!) that can occur when poorly defined economic growth becomes the key measure of development; natural resources are over-exploited, countries grow, but fail to adequately develop democratically, in human capital terms or in the most basic health, poverty and human rights areas. Even when/if aid makes it to the correct destinations it may well merely be used to prove someone’s (flawed) economic theory. Philanthropic ventures, the author argues, are often backed by the kind of people (technocrats, those from the business world), who like their money to be spent according to simple methodologies with hard numbers that ought to be seen as widely discredited given the events of the last financial crisis.

However deep the numbers can take us they cannot take us to the true problem, which is also the heart of the solution: power. In the end it seems that most of the problems in this book come down to something simple and very human: desperation for certainty combined with a need for simplicity in a confusing world. The challenge then is to move forward constructively and honestly while responding to and understanding that impossible desire.

In the Go Lean book, there is an advocacy “10 Ways to Measure Progress” (Page 147), detailing how the CU will manage the mission to make the Caribbean a better place to live, work, and play. The roadmap posits that this effort is a journey, not just one act. Therefore this effort is to be optimized with advanced process management methodologies to ensure CU goals are being accomplished; the stakeholders must therefore measure the progress. The key to this effort will be the federal structure of a Commerce Department with the primary role of harvesting demographic and econometric data. The roadmap adopts a Trade philosophy branded as SHIELD (Strategic, Harvest, Interdiction, Enforcement, Logistics and Delivery). The CU will install Project Management Offices in every Executive Branch Department to ensure a lean culture of quality delivery and accountability. This mission is highlighted at the outset of the Go Lean book, in a Declaration of Interdependence, with the following statement:

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.

There are other numbers that are important in the management of the Caribbean regional economy, numbers that measure the capabilities of the economic engines and the quality of Caribbean life. In particular, these are the numbers that are compiled and evaluated by credit reporting agencies and “failed-state” assessors. The Go Lean roadmap details action plans to improve these metrics: “10 Ways to Improve Credit Ratings” (Page 155) and “10 Ways to Improve Failed-State Indices” (Page 134).

Now is the time for the Caribbean region to lean-in for the changes described in the book Go Lean … Caribbean. The benefits of this roadmap are very alluring, that with the measured progress, and appropriate course correction, the Caribbean region can emerge to a $800 Billion economy (up from $278 Billion based on 2010 figures). These are just numbers, yes, but as Lorenzo Fioramonti pointed in in the foregoing reviewed book, these ”… Numbers Rule the World …”

Download the book now Go Lean … Caribbean.

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