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Bahamas rejects US trade demand

Go Lean Commentary

Q: Where does an 800-pound gorilla sleep? A: Anywhere it wants to.

Trade 1There is no doubt the United States is the 800 pound gorilla for trade in the Caribbean region. From a sheer negotiation tactic, there is no basis for respect and consideration for the needs and aspirations of the small Bahamas island nation. A lion share of trade in the Bahamas comes from the US. Also, a lion share of the Bahamas Government revenue comes from Customs duties. So in any stretch of the imagination, eliminating Customs duties from American imports would devastate the Bahamas Government’s treasuries.

Is this an over-simplification of the logical argument in the foregoing news article? No!

Rather, this is a consistent theme in the book Go Lean…Caribbean. The book posits that the objectives of American foreign, trade and security policy may not align with the priorities of the Caribbean. Even more, no Caribbean member-state has voting powers in the US Capitol where those policies might be codified. It is what it is!

The Bahamas is so small compared to the US that the ranting from Nassau would be inconsequential to the decision makers in Washington. The Bahamas and the US are not “brothers”; at best, the Bahamas can expect a “good neighbor” relationship with the US. But since “blood is thicker than water”, it is only to be expected that the US would prioritize the needs of its people ahead of Bahamians.

By: Alison Lowe, Nassau Guardian Business Editor

NASSAU, Bahamas — The United States has called for The Bahamas to immediately drop all of its duties on US products coming into this country on “day one” of The Bahamas’ accession to the World Trade Organization (WTO) – a request which the government has rejected on the basis that it could wipe out the domestic economy, according to the [Bahamas] Minister of Financial Services.

Disclosing some of the background to The Bahamas’ bilateral negotiations over the terms of its bid to join the WTO, [Minister] Ryan Pinder said that the US government has not been “amenable” to The Bahamas’ phasing in tariff reductions on US goods. “Phasing in” refers to the ability to reduce the duty rate levels over a number of years.

However, he suggested that the government has struck back on the issue, suggesting that a phased-in reduction of tariffs on US goods – the vast majority of all imported goods coming into The Bahamas – would be more appropriate.

He was speaking at a meeting on Wednesday between members of the Bahamas Chamber of Commerce and Employers Confederation and David Shark, deputy director general of the WTO, who is in the country to engage with stakeholders over The Bahamas’ accession process.

Among the requirements of joining the WTO is that The Bahamas lowers its duty rates on goods imported into the country. It is this requirement that contributes in part to the decision by the government to push ahead with introducing a new form of revenue collection in the form of value added tax (VAT), although the WTO deputy director said the WTO itself has no preference about what form of tax the government chooses to replace former duty taxes with.

In a question and answer session, Pinder said that how quickly and how low The Bahamas would have to reduce its duties is not a decision of the WTO, but one which is determined in bilateral negotiations with other WTO members.

Pinder said, “The EPA (Economic Partnership Agreement trade deal with Europe) is phased, and they phase to zero, so at some point in time there will be no duty paid on items sourced out of the EU, but it’s not a huge deal because I think there’s $8 million of revenue a year to the government on EU products.

“Now the US: day one that’s what they want. Imagine if they said let’s phase it to zero like the EPA, because that’s what they’ll use as a precedent: You negotiated the EPA, you phased, you phased to zero. So imagine if we phase to zero (on goods coming from the US – you would not have a domestic economy because you would not have 35 percent on readymade items anymore, you’d have zero. So you have to be careful what you push for at times.”

Trade 2He added: “Right now the US is taking the posture that they want on-day-one reductions. They’ve taken the posture they want cuts straight across the board. We’ve taken the position we’re not going to negotiate on that basis but we will negotiate trying to protect domestic industry.

“I think they got the point but there’ll be further negotiations on that. So they haven’t been too amenable to phasing. We anticipate that in some time in the future we will have to re-negotiate the Caribbean Basin Initiative on a bilateral basis which is a whole other issue with respect to the US and their trading regime,” said Pinder.

In terms of how the government would make up the lost revenue, the government has a plan of sorts in place in the form of the implementation of value added tax (VAT), or – if the private sector has its way — some other form of alternative taxation.

However, replacing the revenue lost to the government when duties are reduced under WTO accession does not address the challenge of how the reduction in duties would impact local manufacturers, who rely on the fact that the goods they produce have high rates of duty applied when they cross the border.

In this regard, seven months on from when he announced that the government would be undertaking a study to examine the “vulnerabilities and opportunities” that would arise for Bahamian businesses from joining the WTO, Pinder said on Wednesday that the government is now moving to shortlist who will conduct this study so the government will have a clearer picture of the impact on industry of acceding to the WTO.

At present, Pinder has stated a goal of December 2014 for The Bahamas to complete its lengthy accession process, but has also indicated that the process could well continue into 2015.

In an interview with Guardian Business on Wednesday, Shark touted the benefits of WTO accession. He said that WTO members have been seen to have recovered more quickly following the global economic downturn, as a result of having a more certain environment for investment.

“The Bahamas is already heavily integrated into the international trading system, so for a country that’s as deeply enmeshed in international trade as the Bahamas the better question is ‘Why not (join)?’

“As a member of the WTO, you get to level the playing field with some of your neighbours. You’re the only CARICOM member who’s not a member of the WTO, and when companies are trying to decide where to invest, being a member of the WTO provides assurances to investors of the conditions of their investment… and all of that matters a lot in terms of being a part of global supply chains.

“The rules of international trade, whether you are a member of the WTO or not, affect you, so why wouldn’t you want to be at the table in negotiating those rules?

“It’s protection against protectionism; if someone does something that causes you harm you can challenge them whether you are a large or small country, under the WTO system,” he added.

Caribbean News Now / Nassau Guardian (Posted 04-11-2014; retrieved 05-22-2014) –http://www.caribbeannewsnow.com/topstory-Bahamas-rejects-US-trade-demand-20677.html

Trade 3How to counteract and mitigate this undesirable negotiating quagmire? The answer is to join a bigger family! This requires lowering the volume on the cries of independence and then lean-in for interdependence: regional and WTO solutions. The book Go Lean… Caribbean, serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This represents a confederation, a brotherhood, of the 30 member-states of the Caribbean region, including Puerto Rico and the US Virgin Islands.  This CU/Go Lean roadmap extolls these 3 prime directives:

  • Optimize the economic engines of the Caribbean to grow the regional economy.
  • Establish a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance to support these engines.

Imagine the force of a single market of 42 million people as opposed to the minimal 320,000. Imagine too … the purchasing power of an $800 Billion economy as opposed to $9.2 Billion (2010). The roadmap immediately calls for the consolidation of trade negotiation of the Bahamas with the rest of the Caribbean. This point is echoed early, and often, in the Go Lean book, commencing with these opening pronouncements in the Declaration of Interdependence (Page 11/12), as follows:

 viii.   Whereas the population size is too small to foster good negotiations for products and commodities from international vendors, the Federation must allow the unification of the region as one purchasing agent, thereby garnering better terms and discounts.

 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 … our citizens. We must therefore appoint “new guards” to ensure … our society, both domestic and foreign.

The roadmap recognizes that this request to forge a confederated technocracy is atypical in Caribbean pursuits. Despite previous integration efforts, the most that has been accomplished is the recognition of the benefits of consolidation, but no real manifestation of an integrated society.

Go Lean … Caribbean therefore constitutes a change for the Caribbean. This is a roadmap to consolidate 30 member-states of 4 different languages and 5 colonial legacies (American, British, Dutch, French, Spanish) into a Trade Federation with the tools/techniques (but without sovereignty) to bring immediate change to the region to benefit one and all member-states. While this is an integration of region’s economic interest, there is no expectation of re-distributing existing wealth among the member-states.

Just how is this accomplished?

The book details that there must first be adoption of community ethos to forge such a change; plus the executions of the following strategies, tactics, implementations and advocacies to impact the regions prospects in negotiations and fulfilling the needs of Caribbean stakeholders:

Community Ethos – Deferred Gratification Page 21
Community Ethos – Minority Equalization Page 24
Community Ethos – Lean Operations Page 24
Community Ethos – Return on Investments Page 24
Community Ethos – Cooperatives Page 24
Community Ethos – Ways to Improve Negotiations Page 30
Community Ethos – Impact the Greater Good Page 37
Strategy – Unified Region in a Single Market Economy Page 45
Strategy – Customers – Foreign Direct Investors Page 48
Strategy – Agents of Change – Globalization Page 57
Tactical – Confederating a Permanent Union Page 63
Tactical – Fostering a Technocracy Page 64
Tactical – Growth Approach – Trade and Globalization Page 70
Separation of Powers – Interstate Commerce Admin Page 79
Separation of Powers – Office of Trade Negotiations Page 80
Implementation – Ways to Pay for Change Page 101
Implementation – Foreign Policy Initiatives at Start-up Page 102
Implementation – Ways to Deliver Page 109
Implementation – Trade Mission Office Objectives Page 116
Implementation – Ways to Benefit from Globalization Page 119
Planning – Ways to Improve Trade Page 128
Planning – Ways to Improve Interstate Commerce Page 129
Planning – Ways to Model the EU Page 130
Planning – Lessons from the West Indies Federation Page 135
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Improve Governance Page 168
Advocacy – Ways to Better Manage the Social Contract Page 170
Advocacy – Ways to Improve Government Revenue Page 172
Advocacy – Ways to Foster Cooperatives Page 176
Advocacy – Ways to Impact Main Street Page 201

The foregoing news article uses language like “day one”, in that it reports that there are expectations for the immediate adjustments in the US-Bahamas trade dynamics with the inauguration of the WTO regime. This type of development is impractical and destructive for Bahamian society. The Go Lean roadmap therefore proposes an alternative implementation, with accelerations of progressive changes over a methodical 5 year period. This is thusly proposed to minimize the disruption to government revenue schemes.

The WTO has a Trade First mantra. While this is an advantageous goal, this book posits that trade must not be implemented at the expense of the societal safety nets that bind Bahamian society together. Go Lean … Caribbean is therefore a detailed turn-by-turn roadmap for how-when-why-where to apply the best-practices of trade-economic-security-government delivery options.

The Go Lean roadmap is therefore a complete solution for Caribbean elevation, considering the needs of all stakeholders: residents, trading partners, Diaspora and visitors. The region is hereby urged to lean-in to this 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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Go ‘Green’ … Caribbean

Go Lean Commentary

Go Green 1Go ‘Green’ …

Get it? A simple play on words; Green instead of Lean. The word Green is more than just a color; it is a concept, a commitment and a cause. This is the same with ‘Lean’; for the purpose of this effort, ‘lean’ is more than just a description, it’s a noun, a verb, an adjective and an adverb. It is also a concept, commitment and cause in which the entire Caribbean region is urged to embrace; or better stated: “lean in”.

What is the motivation behind the ‘Green’ movement? Love for the Planet; many proponents feel that man’s industrial footprint has damaged the planet and the atmosphere, causing climate change, due to the abundance of carbon dioxide in the atmosphere.

Early in the book, Go Lean…Caribbean, the pressing need to be aware of climate change is pronounced in the Declaration of Interdependence (Page 11), with these words, (the first of many “causes of complaints”):

Whereas the earth’s climate has undeniably changed resulting in more severe tropical weather storms, it is necessary to prepare to insure the safety and security of life, property and systems of commerce in our geographical region. As nature recognizes no borders in the target of its destruction, we also must set aside border considerations in the preparation and response to these weather challenges.

Stop yawning!

For many, an advocacy to save the planet is a bore. But if we are not mindful of these issues we could face serious consequences.

Now a new motivation has emerged: saving money. Since energy costs has skyrocketed beyond the rate of inflation, adapting to more clean/green energy options has proven to be more cost effective.

Power generation from the sun or wind (free & renewable sources) is far cheaper than generation based on fossil fuels. (Even the fossil fuel of natural gas is cheaper than oil or coal).

The motivation behind the Caribbean “Lean” movement is also love, love of the homeland. This point is detailed in the book Go Lean… Caribbean, a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This Go Lean roadmap has 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance to support these engines.

The following two news stories relate to this effort to optimize “green” energy options in the region:

1. Op-Ed Title: Green Energy Solutions Could Save the Caribbean $200 Million

By: Jun Zhang, Op-Ed Contributor
(04/11/2014) HIGH ENERGY costs are the Achilles heel of the Caribbean.
More than 97 percent of this region’s electricity is generated from fossil fuels and many islands devote a hefty portion of their GDP to fuel imports.

On some Caribbean islands, electricity bills can soar up to six times higher than in the United States, which creates a burden for many local businesses. At the same time, these islands are vulnerable to the environmental impacts associated with fossil-fuels, including air pollution, rising sea levels, and coral bleaching.

Reducing the reliance on fossil fuels and supporting cleaner, more efficient energy production is critical to helping island economies grow sustainably. But many companies face hurdles in accessing credit to invest in clean energy.

That’s where the banking sector can play an important role.

The International Finance Corporation, a member of the World Bank Group and the largest global development institution focused exclusively on the private sector, is developing a regional programme to help local financial institutions provide the credit needed for companies to adopt more energy efficient practices and utilize cleaner energy sources.

This in turn can help reduce costs – and environmental footprints -for Caribbean hotels and other businesses.

At a recent seminar in Kingston, IFC presented a market analysis of sustainable energy finance opportunities in Barbados, Belize, Jamaica, Grenada, and St. Lucia.

It found that energy demands in the Caribbean are expected to double by 2027. Continued dependence on fossil fuels is likely to exacerbate pollution and other environmental impacts, while diverting significant resources from these economies. But there are upsides as well.

According to the analysis, incorporating energy efficiency measures across these five countries over the next few years could save approximately US$200 million. For example, solar water heaters offer a ready solution to water heating in the Caribbean. Barbados has already installed more than 50,000 solar water heaters, saving the country some US$6.5 million a year on oil imports.

Caribbean countries could also benefit from water efficiency measures. Right now, anywhere from 25 to 65 percent of clean water is lost in inefficient water distribution systems, which also results in lost energy due to unnecessary pumping.

Some entrepreneurs say the tide is beginning to turn, but the financial sector needs to catch up.

“Businesses are already starting to shift to more energy efficient technologies,” said Andre Escalante, founder of Energy Dynamics, a Trinidad based company that helps hotels and other businesses adopt new energy-saving technologies. “However, financial institutions in the region are still reluctant to provide credits to implement new technologies that they may not be familiar with.”

IFC intends to close this knowledge gap by advising local financial institutions to help them meet the financing needs of sustainable energy projects. IFC also plans to work with energy service companies and equipment vendors to help them understand how to best structure projects for financing.

In the Dominican Republic, IFC helped Banco BHD become the first financial institution in the country to offer a credit line to finance sustainable energy projects. Over two years, BHD provided US$24 million in financing for projects that are bringing more cost-efficient energy solutions to the Dominican Republic, from natural gas conversion to solar energy.

“We’ve seen first-hand how sustainability adds value, be it by helping hotels cut their energy costs or by financing solar energy solutions for businesses,” said Steven Puig, General Manager of Banco BHD. “In fact, BHD intends to implement energy efficiency measures and install solar panels on each of its 43 stand-alone bank branches. So far, with IFC’s support, four offices have done this, which resulted in US$43,000 in savings each year as well as reductions in greenhouse gas emissions.”

Sustainability presents challenges for businesses, but also wide-ranging, evolving opportunities — especially as the cost of renewable energy technologies goes down.  The private sector is well suited to innovate and leverage new technologies to turn challenges into opportunities.

(Jun Zhang is IFC’s Senior Manager for the Caribbean. IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector).

————

2. Title: Solar Car-Charging Station Opens in Grand Cayman

By: Alexander Britell
(05/05/2014) It may be the Caribbean’s most abundant resource, but in a region where energy costs are oppressive, solar energy isn’t used nearly enough.

That’s starting to change, though, and it got a significant boost last week with the opening of the Caribbean’s first-ever solar-powered car charging station.

The station is viewed to be one of the first standalone, public solar car-charging stations in the Caribbean, a place for electric-powered cars to come and top off their energy supplies.

“We started about a year ago and now it’s finally up and operational,” said John Felder, CEO of Cayman Automotive, which partnered with Philadelphia-based U-Go Stations on the project. “I don’t know of any solar panel charge stations for electric cars.”

While the stations won’t be used for complete charges, an hour spent charging at the station will provide about 20 percent of an electric car’s power supply.

Go Green 2Felder, who is the leading distributor of electric cars in the Caribbean, said the region’s electric car movement was already expanding.

“I’m now in the Bahamas, in Jamaica, in Bermuda,” he said. “The Aruban government called me last week and they want me to move to start doing electric cars there.”

Indeed, Aruba has been at the forefront of the regional green energy movement, with plans to have 100 percent renewable energy by the year 2020.

Barbados opened its first solar car-charging station in 2013 at the Wildey Business Park.

The new Cayman station, which is located at Governors Square, is one of six electric charging stations on the island.

“I can see in the next 10 years that 30 to 40 percent of the cars on the roads will be electric vehicles,” Felder said.

Something that could help that measure regional is the lowering of import duties on 100 percent electric cars, Felder said.

Cayman’s government lowered its duty from 42 percent to 10 percent, which is now the third-lowest in the region, although many islands lag behind in that regard.

“The government is promoting [electric] and that’s why they reduced the duty to 10 percent,” he said.

The electric movement on Cayman got an similarly big boost earlier this year when Grand Cayman’s Budget Rent-a-Car announced plans to offer 100 percent EV vehicles on the island.

Caribbean Journal News Source (Articles retrieved 05/14/2014)        a. http://www.caribjournal.com/2014/04/11/op-ed-green-energy-solutions-could-save-the-caribbean-200-million/  b. http://www.caribjournal.com/2014/05/05/solar-car-charging-station-opens-in-grand-cayman/ 

Photo Credits:
a. Jennifer Hicks, Forbes.com Technology Contributor: Field with six 850 kW turbines in Cuba’s Holguín Province
b. Cayman Automotive: The first ever public, commercial solar car charging station in Grand Cayman

This Go Lean/CU roadmap recognizes that modern life has expanded the definition of basic needs to now include food, clothing, shelter and energy. And thusly the book proposes many solutions for the region to optimize energy …

  • generation
  • distribution
  • consumption

No “stone is left unturned”. Go Lean posits that the average costs of energy can be decreased from an average of US$0.35/kWh to US$0.088/kWh in the course of the 5-year term of this roadmap; (Page 100). A 75% savings is not a yawn, this should keep you alert!

The two foregoing articles relate to new ‘green’ power generation initiatives in different Caribbean member-states.

These initiatives took some effort on the part of the community and governmental institutions. We commend and applaud their success and executions thus far. But there is more heavy-lifting to do. Help is on the way! The Go Lean roadmap details a series of community ethos, strategies, tactics, implementations and advocacies to foster the progress in the wide fields of energy generation, distribution and consumption. The following list applies:

Community Ethos – Lean Operations Page 24
Community Ethos – Return on Investments Page 24
Community Ethos – Cooperatives Page 25
Community Ethos – Regional Taxi Commissions Page 25
Community Ethos – Non-Government Organizations Page 25
Community Ethos – Ways to Impact the Future Page 26
Community Ethos – Ways to Improve Negotiations Page 32
Anecdote – Pipeline Transport – Strategies, Tactics & Implementations Page 43
Strategy – Harness the power of the sun/winds Page 46
Tactical – Fostering a Technocracy Page 82
Tactical – Separation of Powers – Energy Commission Page 82
Anecdote – “Lean” in Government – Energy Permits Page 93
Anecdote – Caribbean Energy Grid Implementation Page 100
Implementation – Ways to Develop Pipeline Industry Page 107
Implementation – Ways to Improve Energy Usage Page 113
Advocacy – Ways to Impact Public Works Page 175
Advocacy – Ways to Foster Cooperatives Page 176
Advocacy – Ways to Impact Monopolies Page 202

Energy needs are undeniable. The world is struggling with this issue.

Fulfilling those needs is easier said than done; and thus a great opportunity for the lean, agile operations envisioned for the CU technocracy. “It’s good to be green!”

Now is the time for all of the Caribbean, the people, business, institutions and governments, to lean-in for the optimizations and opportunities described in the book Go Lean … Caribbean.

Download the book Go Lean … Caribbean – now!

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Bob Marley: The legend lives on!

Go Lean Commentary

Bob Marley - The legend lives on“Let’s get together and feel alright” – Bob Marley’s Song: One Love

This song is identified in the below article as being designated Song of the Millennium by the BBC (British Broadcasting Corporation). Today, 11 May 2014, is the 33rd anniversary of Bob Marley’s death. (The number 33 is the “rev” speed for music-album playback).

The book Go Lean … Caribbean identifies 169 different musical/national combinations of genres throughout the Caribbean. Of them all, Reggae is by far the most impactful of a Caribbean sound; even more so than Calypso, Soca, Merengue or any of the many Afro-Cuban varieties (Conga, Mambo, Salsa, etc). One cannot speak of Reggae music though without recognizing the iconic role of Bob Marley. The Go Lean book speaks directly of Bob Marley in recognizing him, along with other advocates, in the way in which his contributions resonated in the world. As follows, an excerpt from that rendering (Page 133):

The majority of the Caribbean population descends from an African ancestry – a legacy of slavery from previous centuries. Despite the differences in nationality, culture and language, the image of the African Diaspora is all linked hand-in-hand. And thus, when Martin Luther King, Malcolm X, Nelson Mandela, Muhammad Ali and Bob Marley impacted the world with their contributions, the reverberations were felt globally, not just in their homelands. It is hard for one segment of the black world to advance when other segments have a negative global image. This is exemplified with the election of Barack Obama as US President; his election was viewed as an ascent for the entire Black race.*

The following article, from the Daily Independent Newspaper of Nigeria, posits that the legend and legacy of Bob Marley lives on, to this day and beyond.

“My music will go on forever. Maybe it’s a fool say that, but when me know facts me can say facts. My music will go on forever.” – Bob Marley

The above statement made by Bob Marley of his music, is a living testimony of his continued legacy and legend. Since his demise on May 11, 1981, the influence of his music on global culture has become unparalleled as evidenced by ever increasing list of accomplishments, honours and awards.

In June 1978, he was awarded the ‘Peace Medal of the Third World ’ from the United Nations. He was voted as one of the greatest lyricists of all time by a BBC poll. In 2006, a blue plaque was unveiled at his first UK residence in Ridgmount Gardens, London, dedicated to him by Nubian Jak community trust and supported by Her Majesty’s Foreign Office.

Bob Marley was posthumously inducted into the Rock and Roll Hall of Fame in 1994; in December 1999, his 1977 album “Exodus” was named Album of the Century by Time Magazine and his song “One Love” was designated Song of the Millennium by the BBC.

Since its release in 1984, Marley’s “Legend” compilation has annually sold over 250,000 copies, according to Nielsen Sound Scan, and it is only the 17th album to exceed sales of 10 million copies since SoundScan began its tabulations in 1991.

Bob Marley’s music was never recognised with a Grammy nomination, but in 2001 he was bestowed The Grammy Lifetime Achievement Award. That same year, a feature length documentary about Bob Marley’s life, ‘Rebel Music’, directed by Jeremy Marre, was nominated for a Grammy for ‘Best Long Form Music Video’ documentary. In 2001 Bob Marley was accorded the 2171st star on the Hollywood Walk of Fame by the Hollywood Historic Trust and the Hollywood Chamber of Commerce, in Hollywood, California. As a recipient of this distinction, Bob Marley joined musical legends, including Carlos Santana, Stevie Wonder and The Temptations.

In 2006, the State of New York renamed a portion of Church Avenue in the section of Brooklyn, “Bob Marley Boulevard “.

Recently, the popular TV show, Late Night with Jimmy Fallon, commemorated the 30th anniversary of Bob Marley’s passing with an entire week (May 9-13) devoted to his music, as performed by Bob’s eldest son, Ziggy, Jennifer Hudson, Lauryn Hill, Lenny Kravitz and the show’s house band, The Roots. These triumphs are all the more remarkable considering Bob Marley’s humble beginnings and numerous challenges he overcame attempting to gain a foothold in Jamaica ‘s chaotic music industry while skillfully navigating the politically partisan violence that abounded in Kingston throughout the 1970s.

In celebration of what would have been his 68th birthday, the 2013 Grammys featured an all-star Bob Marley tribute including some of music’s hottest stars.

One of the 20th century’s most charismatic and challenging performers, Bob Marley’s renown now transcends the role of reggae luminary: he is regarded as a cultural icon who implored his people to know their history “coming from the root of King David, through the line of Solomon,” as he sang on “Blackman Redemption”; Bob urged his listeners to check out the “Real Situation” and to rebel against the vampiric “Babylon System”. “Bob had a rebel type of approach, but his rebelliousness had a clearly defined purpose to it,” acknowledges Chris Blackwell, the founder of Island Records, who played a pivotal role in the Bob Marley biography by introducing Marley and the Wailers to an international audience.

Two influences of Marley’s music are his Rastafarian belief and his love for marijuana. The pan-African consciousness, progressive political ideologies and deep spiritual convictions heard in Bob Marley’s music were derived from his firmly rooted commitment to Rastafarian beliefs and its attendant lifestyle. Marley did not just enjoy weed as a recreational habit. He was instead a staunch supporter of the plant’s meditational, spiritual and healing abilities, and a fierce opponent to those who tried using marijuana as a vehicle for oppression, and to keep certain groups of people out of the societal mainstream.

In his early years, February 1962, Marley recorded four songs, Judge Not, One Cup of Coffee, Do You Still Love Me? And Terror. One Cup of Coffee was released under the pseudonym, Bobby Martell.

The following year, Bob Marley, Bunny Wailer, Peter Tosh,Junior Braithwaite, Beverly Kelso and Cherry Smith called The Teenagers, later changed the name to The Wailing Rudeboys, then to The Wailing Wailers and finally to The Wailers. In 1966, Smith, Kelso and Braithwaite left the Wailers leaving Bob Marley, Peter Tosh and Bunny Wailer. Marley, that same year married, Rita Anderson.

In an attempt to commercialise The Wailers sound, between 1968 and 1972, Bob and Rita Marley, Peter Tosh and Bunny Wailer re-cut some old tracks with JAD Records in Kingston and London.

After signing with CBS Records in London, Marley in 1972 embarked on a UK tour with American musician, Johnny Nash. The Wailers returned to Jamaica to release its first album, Catch a Fire. The eight track album was followed the same year by the album, Burnin, which included the song, I Shot the Sheriff. Eric Clapton was given the album by his guitarist, George Terry, for his enjoyment, but Clapton was so impressed that he recorded a cover version of, I Shot the Sheriff, which became his first US hit after [the song] Layla.

It is pertinent to note that during this period, Blackwell, Marley’s record company, gifted his Kingston residence and company headquarters to Marley. The property housing Tuff Gong studios, became not only his office, but also his home. Finally, The Wailers broke up in 1974 with each of the three members pursuing solo careers.

Though born a Catholic, Marley converted to Rastafari and began to grow dreadlocks. With new members in his solo career, Marley continued recording as ‘Bob Marley and The Wailers’ as the ‘I Threes’ comprising Marcia Griffiths, Judy Mowatt and Marley’s wife, Rita provided backing vocals.

Marley rose to fame internationally in 1975 with his first hit track, No Woman No Cry from the Natty Dread album. This was followed by Rastaman Vibration, his breakthrough album in the US.

Of significance was an assassination attempt by unknown gunmen on December 3, 1976, two days before, a free concert, tagged, ‘Smile Jamaica’, organised by the Jamaican Prime Minister, Michael Manley in an attempt to ease tension between two warring political factions. Marley, his wife and manager, Don Taylor were wounded in the assault. However, injured Marley performed after the attack. At the end of 1976, Marley left Jamaica and after a month of recovery and writing, he arrived [in] England, where he spent two years in self imposed exile. While in Queen Elizabeth’s country, he recorded the albums, Kaya and Exodus. For 56 consecutive weeks, Exodus stayed on the British album charts. It also included four UK hit singles – Exodus, Waiting in Vain, Jamming and One Love (a rendition of Curtis Mayfield’s hit, People get Ready).

In an effort to calm warring parties, when Marley returned to Jamaica in 1978, he performed at another political concert, the One Love Peace Concert which saw the two heads of the factions shook hands on stage.

A defiant and politically charged album, Survival, was released in 1979 with such tracks as, Zimbabwe, Africa Unite, Wake Up and Live and Survival reflected his struggle for Africans. Bob Marley’s final studio album, Uprising in 1980 is regarded as one of his most religious productions. It includes, Redemption Song and Forever Loving Jah.

Confrontation was released posthumously in 1983, contained unreleased songs recorded during Marley’s lifetime. It includes the hit song, Buffalo Soldier and new mixes of singles previously available only in Jamaica. 11 albums, four live albums and seven studio albums were achieved under the name Bob Marley and the Wailers.

In July 1977, Marley was found to have a type of malignant melanoma under the nail of a toe. Citing his religious beliefs, he turned down his doctors’ advice to have his toe amputated. Despite his illness, he continued touring.

His Redemption Song track is in particular considered to be about Marley’s coming to terms with his mortality. He appeared at the Stanley Theatre in Pittsburg, Pennsylvania on September 23 1980, unfortunately, it would be his last concert.

Shortly afterwards, his health deteriorated, the cancer had [spread] to his lungs and brains. Marley sought treatment at the Bavarian clinic of Josef Issels where he received an unusual therapy. After fighting the disease unsuccessfully for eight months, he boarded a plane for his home in Jamaica but he never made it. He landed in Miami, Florida, USA and was taken to Cedars of Lebanon, hospital for immediate medical attention.

On May 11, 1981, Robert Nesta Marley, born on February 6, 1945 on the farm of his maternal grandfather in Nine Mile, Saint Ann Parish, Jamaica to Norval Sinclair Marley and Cedella Booker gave up the ghost. He was aged 36.

After his death, he seems to loom larger than life as his legacy continues to grow. Marley received a state funeral in Jamaica on May 21, 1981 which combined elements of Ethiopian Orthodoxy and Rastafari tradition. On his religious life, Marley was a vegetarian who was affiliated with the Twelve Tribes Mansion. He was in the denomination of the Tribe of Joseph. Shortly before his death, Marley was baptised into Christianity by Archbishop Abuna Yesehaq of the Ethiopian Orthodox church in Kingston, Jamaica on November 4, 1980.

In April 1981 Bob Marley was awarded Jamaica’s third highest honor, the Order of Merit, for his outstanding contribution to his country’s culture.

Marley had a number of children: three with his wife Rita, two adopted from Rita’s previous relationships and several other others with different women.

Irrespective of race, colour, creed, the Bob Marley’s revolutionary yet unifying music, challenging colonialism, racism, and the rest has had profound effects even in country’s where English is not widely spoken.

In August 2008, two artists from Serbia and Croatia , unveiled a statue of Bob Marley during a rock music festival in Serbia; the monument’s inscription read “Bob Marley Fighter for Freedom Armed with A Guitar”.

A statue was inaugurated, next to the national stadium on Arthur Wint Drive in Kingston to commemorate him.

Internationally, Marley’s message also continues to reverberate among various indigenous communities.

The Daily Independent – Nigerian Daily Newspaper – Retrieved May 11, 2014 from: http://dailyindependentnig.com/2014/05/bob-marley-legend-lives/

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This CU strives to advance the Caribbean culture with these 3 prime directives:

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

This roadmap recognizes that a prerequisite for advancing society is a change in the Caribbean community ethos. Early in the book, the contributions that music can make is pronounced as an ethos for the entire region to embrace, (Declaration of Interdependence – DOI – Pages 14) with these statements:

xxxii. Whereas the cultural arts and music of the region are germane to the quality of Caribbean life, and the international appreciation of Caribbean life, the Federation must implement the support systems to teach, encourage, incentivize, monetize and promote the related industries for arts and music in domestic and foreign markets. These endeavors will make the Caribbean a better place to live, work and play.

Bob Marley was the embodiment of all of these above values. He impacted the music, culture and economics of the region. He set a pathway for success for other generations of talented, inspirational and influential artists – musical geniuses – to follow. Other artists of Caribbean heritage are sure to emerge and “rock the world”; we are hereby “banking” on it, with these CU preparations (DOI – 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.

Bob Marley - UprisingThe CU represents the change that has come to the Caribbean. The people, institutions and governance of the region are all urged to “lean-in” to this roadmap for change. We know there is a “new” Bob Marley somewhere in the Caribbean member-states, waiting to be fostered. We salute this one with the words of this Bob Marley composition Redemption Song, (from this writer’s favorite album “Uprising”):

But my hand was made strong
By the hand of the Almighty.
We forward in this generation
Triumphantly.

Won’t you help to sing
These songs of freedom?
‘Cause all I ever had,
Redemption songs,
Redemption songs.

Emancipate yourself from mental slavery,
None but our self can free our minds.
Have no fear for atomic energy,
‘Cause none of them can stop the time.
How long shall they kill our prophets,
While we stand aside and look?
Some say it’s just a part of it,
We’ve got to fulfill de book.

The following list details the community ethos, strategies, tactics, implementations and advocacies to foster the next Bob Marley:

Community Ethos – Ways to Foster Genius Page 27
Community Ethos –Promote Intellectual Property Page 29
Community Ethos – Ways to Promote Happiness Page 36
Community Ethos – Impact the Greater Good Page 37
Strategy – Caribbean Vision Page 45
Separation of Powers – Patents & Copyrights Page 78
Separation of Powers – Culture Administration Page 81
Implementation – Ways to Impact Social Media Page 111
Advocacy – Ways to Make the Caribbean Better Page 131
Advocacy – Ways to Impact Hollywood Page 203
Advocacy – Ways to Promote Music Page 231
Advocacy – Ways to Re-boot Jamaica Page 239

For this occasion, the reader is hereby admonished to put on your favorite Bob Marley album, sit back, and feel the love, the “One Love”.

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

————–

Appendix Reference:

* Rampersad, Dr. Arnold (2008). “Race, History, and the Emergence of Obama”. Florida International University Dr. Eric E. Williams Memorial Lecture Series. BBC-Caribbean.com. Retrieved November 2013 from: http://www.bbc.co.uk/caribbean/news/story/2008/11/printable/081111_obama_rampersad.shtml

 

 

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Having Less Babies is Bad for the Economy

Go Lean Commentary

Little GirlsMore fallout from the year 2008…

This is a consistent theme in the book Go Lean…Caribbean. The book posits that the events of that year were a crisis for the Caribbean, North America and the world economy as a whole. What’s worst is the Caribbean is still reeling from those events.

“A crisis is a terrible thing to waste”

… so states the book quoting noted Economist Paul Romer. The opportunity therefore exists to forge change in the economic, security and governing engines of the Caribbean, in response to this crisis.

The below news-story (or click on VIDEO icon below) shows that the rest of the world, those with astute eyes/ears to look, listen and learn, will be using this crisis to prepare for change. This is the advocacy of the Go Lean book, to position the region at the corner of preparation and opportunity, so as to benefit from change. The issue from the article is more pressing for the Caribbean than the rest of North America; this is because the region has a very high emigration rate (brain drain). This point is crystalized with this quotation:

We tend to think economic growth comes from working harder and smarter. But economists attribute up to a third of it to more people joining the workforce each year than leaving it. The result is more producing, earning and spending.

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 community. 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.

NEW YORK (AP) — Nancy Strumwasser, a high school teacher from Mountain Lakes, New Jersey, always thought she’d have two children. But the layoffs that swept over the U.S. economy around the time her son was born six years ago helped change her mind. Though she and her husband, a market researcher, managed to keep their jobs, she fears they won’t be so fortunate next time.

“After we had a kid in 2009, I thought, ‘This is not happening again,'” says Strumwasser, 41, adding, “I never really felt comfortable about jobs, how solid they can be.”

The 2008 financial crisis did more than wipe out billions in wealth and millions of jobs. It also sent birth rates tumbling around the world as couples found themselves too short of money or too fearful about their finances to have children. Six years later, birth rates haven’t bounced back.

For those who fear an overcrowded planet, this is good news. For the economy, not so good.

We tend to think economic growth comes from working harder and smarter. But economists attribute up to a third of it to more people joining the workforce each year than leaving it. The result is more producing, earning and spending.

Now this secret fuel of the economy, rarely missing and little noticed, is running out.

“For the first time since World War II, we’re no longer getting a tailwind,” says Russ Koesterich, chief investment strategist at BlackRock, the world’s largest money manager. “You’re going to create fewer jobs. … All else equal, wage growth will be slower.”

Births are falling in China, Japan, the United States, Germany, Italy and nearly all other European countries. Studies have shown that births drop when unemployment rises, such as during the Great Depression of the 1930s. Birth rates have fallen the most in some regions that were hardest hit by the financial crisis.

In the United States, three-quarters of people surveyed by Gallup last year said the main reason couples weren’t having more children was a lack of money or fear of the economy.

The trend emerges as a gauge of future economic health — the growth in the pool of potential workers, ages 20-64 — is signaling trouble ahead. This labor pool had expanded for decades, thanks to the vast generation of baby boomers. Now the boomers are retiring, and there are barely enough new workers to replace them, let alone add to their numbers.

Growth in the working-age population has halted in developed countries overall. Even in France and the United Kingdom, with relatively healthy birth rates, growth in the labor pool has slowed dramatically. In Japan, Germany and Italy, the labor pool is shrinking.

“It’s like health — you only realize it exists until you don’t have it,” says Alejandro Macarron Larumbe of Demographic Renaissance, a think tank in Madrid.

The drop in birth rates is rooted in the 1960s, when many women entered the workforce for the first time and couples decided to have smaller families. Births did begin rising in many countries in the new millennium. But then the financial crisis struck. Stocks and home values plummeted, blowing a hole in household finances, and tens of millions of people lost jobs. Many couples delayed having children or decided to have none at all.

Couples in the world’s five biggest developed economies — the United States, Japan, Germany, France and the United Kingdom — had 350,000 fewer babies in 2012 than in 2008, a drop of nearly 5 percent. The United Nations forecasts that women in those countries will have an average 1.7 children in their lifetimes. Demographers say the fertility rate needs to reach 2.1 just to replace people dying and keep populations constant.

The effects on economies, personal wealth and living standards are far reaching:

— A return to “normal” growth is unlikely: Economic growth of 3 percent a year in developed countries, the average over four decades, had been considered a natural rate of expansion, sure to return once damage from the global downturn faded. But many economists argue that that pace can’t be sustained without a surge of new workers. The Congressional Budget Office has estimated that the U.S. economy will grow 3 percent or so in each of the next three years, then slow to an average 2.3 percent for next eight years. The main reason: Not enough new workers.

— Reduced pay and lifestyles: Slower economic growth will limit wage gains and make it difficult for middle-class families to raise their living standards, and for those in poverty to escape it. One measure of living standards is already signaling trouble: Gross domestic product per capita — the value of goods and services a country produces per person — fell 1 percent in the five biggest developed countries from the start of 2008 through 2012, according to the World Bank.

— A drag on household wealth: Slower economic growth means companies will generate lower profits, thereby weighing down stock prices. And the share of people in the population at the age when they tend to invest in stocks and homes is set to fall, too. All else equal, that implies stagnant or lower values. Homes are the biggest source of wealth for most middle-class families.

___

AP researcher Fu Ting in Shanghai and AP writers Frank Jordans in Berlin, Colleen Barry in Milan and Youkyung Lee in Seoul, South Korea, contributed to this report.

Huffington Post – Online News – May 8, 2014 http://www.huffingtonpost.com/2014/05/07/birth-rate-economy_n_5281597.html

The CU recognizes that the numbers must work in favor of societal progress. The next steps after Look-Listen-Learn is to Lend-a-hand and then Lead. (This is referred to as the 5 L Progression). So to lend-a-hand, the Go Lean roadmap advocates that population leveling can be accomplished with a regional integration. There are many social safety nets that depend of this actuarial exercise. 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.

The CU is structured to lead … for the economic elevation of the region of 42 million people in the 30 member-states. 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 commission to lead is at the root of the Go Lean effort, 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.

Currency 2According to the foregoing article, America needs to have more babies. While this disposition varies from country to country, the Caribbean needs to furnish the environment for families to make their own family-planning decisions based on their own personal motivations, not economic realities. Broken economies can (and will) be fixed! Love for the Caribbean homeland should therefore be the primary motivation for the CU effort. From the cradle-to-the-grave, we need love to be the principal motivation, not fear or economic metrics, for making the Caribbean a better place to live, work and play.

Taking the lead for this goal takes real work, heavy-lifting on the part of the stewards of the Caribbean economy. This is the charter for the CU, as started in the Declaration of Interdependence (Page 13), a direct quotation from the US Declaration of Independence, as follows:

… that to secure these rights (life, liberty and the pursuit of happiness), governments are instituted among men, deriving their just powers from the consent of the governed. … [It] is the right of the people to … institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness.

The following details from the book Go Lean … Caribbean are the community ethos, strategies, tactics, implementations and advocacies prescribed to manifest the elevation of Caribbean economy, society and life:

Who We Are – SFE Foundation Page 8
Community Ethos – Deferred Gratification Page 21
Community Ethos – new Economic Principles Page 21
Community Ethos – new Security Principles Page 22
Community Ethos – new Governing Principles Page 24
Community Ethos – Ways to Impact the Future Page 26
Community Ethos – Ways to Impact Turn-Arounds Page 33
Community Ethos – Ways to Promote Happiness Page 36
Community Ethos – Ways to Impact the Greater Good Page 37
Strategy – Repatriating Caribbean Diaspora Page 47
Strategy – Non-Government Organizations Page 48
Strategy – Agents of Change – Aging Diaspora Page 57
Tactical – Confederating a Permanent Union Page 63
Tactical – Fostering a Technocracy Page 64
Implementation – Assemble all Member-States Page 96
Implementation – Ways to Pay for Change Page 101
Implementation – Reasons to Repatriate Page 118
Planning – Lessons Learned from 2008 Page 136
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Create Jobs Page 152
Advocacy – Better Manage the Social Contract Page 170
Advocacy – Ways to Foster Empowering Immigration Page 174
Advocacy – Impact the Diaspora Page 217
Advocacy – Ways to Preserve Caribbean Heritage Page 218
Advocacy – Ways to Impact Retirement Page 221
Advocacy – Ways to Help the Middle Class Page 223
Advocacy – Ways to Improve Elder-Care Page 225

The Go Lean roadmap is a product of 2008. From this fallout, this plan was composed, by individuals intimate with the details of the crisis … and its causes.

The goal is to learn from the Year 2008 and spread new benefits across the Caribbean region. This roadmap identifies where we are as a region currently, where we want to go, and most importantly, how we plan to get there (turn-by-turn directions). It is time for us to move now to that place, that corner of opportunity and preparation.

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The Future of CariCom

Go Lean Commentary

The Future of CARICOM - PhotoCariCom has been both a success and a failure!

CariCom has succeeded in bringing together most of the Caribbean and instilling the values of regional integration.

The CariCom has failed … with almost everything else!

CariCom = Successful Plan; Failed Execution.

The book Go Lean … Caribbean is a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), as the next phrase of regional integration. The roadmap has compiled the assessment of what is wrong with the Caribbean Community as a construct; (applying lessons learned from the previous failed integration effort – West Indies Federation). Then it proceeds to detail how-what-why to manifest the requested change, and to do it right this time. This roadmap is a GPS-style, turn-by-turn direction on how to get from the status quo to the desired destination.

The foregoing news article echoes many of the same sentiments about the CariCom’s failures and inadequacies.

By: Michael W Edghill*, CJ Contributor

Recently, noted columnist on Caribbean affairs, Sir Ronald Sanders, authored an article that appeared in numerous publications throughout the Caribbean.

The catalyst for his work appears to have been the remarks of Dr. Ralph Gonsalves, Prime Minister of St Vincent & the Grenadines. Dr. Gonsalves, never one to be accused of timidity, who commented in April on the failings of CariCom states to embrace the integration process.

Taking the lead from the Prime Minister, Sanders elaborated upon some of the difficulties that have inhibited the integration process and placed much of the blame for the shortcomings of the integration process squarely at the feet of the Heads of Government of the member states.

Their lack of initiative over the years, no doubt attributed to domestic political considerations, has left CariCom as more of a theoretical body as opposed to a functional body like that of the EU.

In April of 2011, the University of the West Indies Institute of International Relations issued a report on the status of Caribbean Regional Integration.

The comprehensive report identified a number of issues that have inhibited the integration process.

Among the contributing factors were the weakness of CariCom institutions and the difficulties of integrating economies of such divergent scales.

The report went on to make numerous suggestions on how to structurally change CariCom to create an effective body.

Rather than focusing on the detailed and complex suggestions (though wholly rational, reasonable, and worthy of a closer look) for moving the integration process forward, perhaps a few robust initiatives would provide the needed catalyst for advancing towards a functional CariCom.

Restructuring the CariCom governing body: This idea would necessitate the creation of a political study group to evaluate the failings of the current CariCom governing structure outside of the widely held view that the Heads of Government of member states hold too much power in CariCom as an institution.

There are assuredly other institutional weaknesses that prohibit the governing body of CariCom from being effective. Identifying those weakness and coming up with workable solutions based upon those elements of governance that are more successful in supranational bodies like the EU would go a long way in reestablishing a reorganized CariCom as a functional institution as opposed to a theoretical institution with limited success in Caribbean integration.

Full integration of the Dominican Republic into CariCom: For too long, CariCom has been mired in indecisiveness over the question of admitting the Dominican Republic into CariCom. The recent citizenship crisis between the DR and Haiti has not helped this issue. That being said, the time has come for CariCom to finalize this question and find a way to integrate the Dominican Republic into CariCom. One of the problems that CariCom has had with integration over the years is finding a way to fairly work within the varied economies of scale that exist within the body. The unstated reality is that Trinidad & Tobago has been unwilling to serve as an underwriter for regional economic stability in the way that Germany has for the EU. The integration of the Dominican Republic should serve as a catalyst for a renewed and extensive look at how to make this work in CariCom. The DR would

add another large and growing economy to CariCom thereby potentially alleviating any perceived economic burden that integration may impose. Perhaps the creation of a scaled system of economic contribution would be a simultaneous negotiation along with the integration of the Dominican Republic. While the various possibilities are numerous, the time has come for action on this issue. And depending on the results of the integration of the Dominican Republic into CariCom, a look at the relationship between Cuba and CariCom may be subsequently appropriate. (Although the country’s controversial citizenship ruling last year will remain an impediment).

Utilizing the “new” CariCom as a unified body in new trade/investment agreements: Much like the agreement between the EU and CariForum, a ‘new’ CariCom (as created by fulfilling the prior two suggestions) should have the ability to enter into new supranational trade agreements in a stronger position and with a unified voice.

Discussions of the validity and value of ‘free trade’ as a driver of upward economic mobility for all in society are valuable but cannot overcome the overwhelming evidence that creation of new ‘free trade’ zones is the current wave in international economic relations.

Having a stronger voice in these discussions is necessary for member states that hope to continue economic growth in the future.

The “new” CariCom would be primed for negotiations on how to engage with NAFTA to the benefit of its member states.

Likewise, a new CariCom has the potential to open up a whole new range of investment opportunities, especially for those interested in renewable energy investment. If there is one thing that the individual states of the Caribbean seem to be unified on currently, it is the need to address climate change and the creation of more renewable energy sources in the Caribbean.

The ability to explore those investment opportunities as a regional body as opposed in individual states appears, at least superficially, to be of great value to the CariCom member states.

These ideas are all simply possibilities, however, and will go nowhere without the political will of the current Heads of Government of CariCom member states.

As with any supranational organization, members have to be willing to give of their authority in the first place for any changes to take place. It is now a matter of whether member states are willing to concede that there is a pressing problem with full integration within CariCom and take the steps necessary to ensure a vibrant CariCom for the future.

* Michael W Edghill, a Caribbean Journal contributor, teaches courses in US Government & in Latin America & the Caribbean. His work has also appeared in the Yale Journal of International Affairs and Americas Quarterly.

Caribbean Journal Online News Source – May 6, 2014
http://www.caribjournal.com/2014/05/06/the-future-of-caricom/

The roadmap therefore does not focus on the CariCom but rather, focuses on the Caribbean; the 42 million people (per 2010 figures) within the 30 member-states of 4 different languages (Dutch, English, French, Spanish), and 5 different administrative legacies (American, British, Dutch, French, Spanish).

The roadmap thereby sets out to accomplish 3 prime directives:

1. Optimize the economic engines so as to grow the regional economy to $800 Billion and create 2.2 million new jobs.

2. Establish a security apparatus (including emergency management) around the economic engines so as to mitigate the eventual emergence of “bad actors”.

3. Improve Caribbean governance.

At the outset, the roadmap pronounces a preamble of this significance in the Declaration of Interdependence (Page 10):

When, in the course of human events, it becomes necessary for one people to unite with others so as to connect them together to collaborate, confederate and champion the challenges that face them, we the people of Caribbean democracies find it necessary to accede and form a confederated Union, the Caribbean Union Trade Federation, with our geographic neighbors of common interest.

This is a big change compared to what the CariCom purports to offer. The CU aspires to do the heavy-lifting to impact change to this region. This commitment is codified in this roadmap, with details of community ethos, strategies, tactics, implementations and advocates; as follows:

Community Ethos – Forging Change Page 20
Strategy – CU Vision and Mission Page 45
Tactical – Fostering a Technocracy Page 64
Tactical – Separation of Powers – Federal versus Page 71
Implementation –  A Detailed Five Year Plan Page 95
Implementation –  Assembling US Territories Page 96
Implementation –  Ways to Pay for Change Page 101
Planning – Ways to Model the EU Page 130
Planning – Lessons from the Previous Federation Page 135
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Improve Governance Page 168
Advocacy – Ways to Improve Homeland Security Page 180
Advocacy –  Preserve Caribbean Heritage Page 218

In contrast with the CariCom, the CU aspires to elevate the entire Caribbean, with a mission to stop the gut-wrenching brain drain/human flight and encourage repatriation of the far-flung Caribbean Diaspora. These objectives are neither in the CariCom charter nor any of its executions.

The CU is structured, empowered, energized and funded to not just be a theoretical body but a functional body, primed to make the Caribbean a better place to live, work, learn and play. 🙂

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Lessons Learned from the American Airlines merger

Go Lean Commentary – Lessons on Delivery Arts & Sciences

Lessons Learned 1Tourism is the number one economic driver in the Caribbean region. But the eco-system has cracks …

More and more tourists are travelling to the Caribbean…by cruise ships. Less and less are travelling to the region by airplane. Therefore no air-flights, no hotels, no restaurants, no taxi cabs, no job multipliers, and no full economic “chain-link”.

The 2008 financial crisis placed a heavy strain on the US’s largest carrier: American Airlines. On July 2, 2008, American announced furloughs of up to 950 flight attendants, in addition to the furlough of 20 MD-80 aircraft. American’s hub at Luiz Muñoz Marin Airport in San Juan, Puerto Rico (PR) was truncated from 38 to 18 daily inbound flights. The holding company, AMR Corporation, filed for Chapter 11 bankruptcy protection on November 29, 2011, and the airline made cuts in July 2012 due to the grounding of several aircraft associated with its bankruptcy and lack of pilots due to retirements. American Eagle, the regional carrier, (the Caribbean’s largest), was to retire 35 to 40 regional jets as well as its entire Saab turboprop fleet. [b] American Eagle PR ceased operation in March 2013. This status created dysfunction for the entire Eastern Caribbean region.

This dysfunction has created the urgency for permanent change. This is a prime directive of the book Go Lean … Caribbean, to optimize the region’s economic engines, including enhancements for Caribbean tourism, cruise and “long stay” visitors.

The delivery story continues…

By summer 2012, American Airlines considered merging with another airline as part of a restructuring plan.

On February 14, 2013, AMR Corporation and US Airways Group officially announced that the two companies would merge to form the largest airline (and airline holding company) in the world, with bondholders of American Airlines parent AMR owning 72% of the new company and US Airways shareholders owning the remaining 28%. The combined airline would carry the American Airlines name and branding, while US Airways’ management team, including CEO Doug Parker, would retain most operational management positions, and the headquarters would be consolidated at American’s current headquarters in Fort Worth, Texas. The merger would create the world’s largest airline, which, along with United and Delta Air Lines, would control three-quarters of the US market. US Federal Bankruptcy judge Sean Lane approved the merger in March 2013.

The United States Department of Justice filed a lawsuit in August 2013 seeking to block the merger, arguing that it would mean less competition and higher prices. On November 12, the airlines reached a settlement (eliminating certain routes and hubs) with the US Justice Department to settle the lawsuit and allow the merger to be finalized. Thus restoring the public “trusts”.

AMR and US Airways Group completed the merger on December 9, 2013, with the new holding company American Airlines Group, Inc. being listed on NASDAQ that day. [b]

In a January 2014 letter [a] to frequent flyers of both airlines, it was announced: “It’s an exciting time at American Airlines, and we’re kicking off the new year with you — our most loyal customers in mind. For now, we’ll continue to maintain our separate loyalty programs — Dividend Miles and AAdvantage® — with rules and benefits of each program still applying, but rest assured your mileage balance and elite status are safe, secure and will continue to be honored”.

There remains a lot of work to do as both airlines are combined, and since the close of the merger, the two airlines have been working to deliver the first phases of enhanced benefits to their customers … and communities. Here are some highlights:

1. Pick “low-hanging fruit”

Lessons Learned 2Earning and redeeming miles – Members can now earn and redeem Dividend Miles (US Airways) when flying on American or US Airways with their Dividend Miles number. All miles and segments earned when flying on either airline will count toward elite status qualification in the program of your choice.

Elite benefits – Elite members of each airline can now enjoy select reciprocal benefits when flying on either airline, including First and Business Class check-in, complimentary checked bags, priority security and boarding, and many more.

More lounge access – In addition to the US Airways Clubs, club members can now access 35 Admirals Club® locations in major airports worldwide.

2. Intermediate goals and plans

On March 30, US Airways exited the competing Star Alliance. The initiation with the oneworld® alliance started on March 31, giving customers opportunities to access the widest array of destinations around the globe. More and more benefits will emerge as the merger (and the oneworld alliance) consummates. Coming soon, customers will enjoy access to an enhanced network through the American/US Airways code-share, allowing for the seamlessly booking of travel on either airline.

3. Long-term objectives

The actual integration of the airlines under a single air operator’s certificate will not be completed until a much later date. The combined airline will carry the American Airlines name and branding, and will maintain the existing US Airways hubs in Charlotte, Philadelphia, Phoenix, and Washington DC for a period of at least five years under the terms of a settlement with the US Department of Justice.

4. End Game

The resultant single-branded airline will operate an extensive international and domestic network, with scheduled flights throughout North America, the Caribbean, South America, Europe, and Asia. Its route network will center around the five American “cornerstone” hubs in Dallas/Fort Worth, New York, Los Angeles, Miami, and Chicago; plus some US Airways hubs.

oneworld Alliance

What exactly is an airline alliance? It’s an agreement among multiple airlines to streamline, make customers travel experience more seamless. The oneworld alliance is particularly good at this. So much so that it’s been named the Best Airline Alliance by Global Traveler magazine’s 2013 Reader Survey for the fourth year in a row. A passenger can be checked (boarding passes and luggage) right through to the final destination when traveling on oneworld carriers. Other benefits include airport lounge access, priority check-in and priority boarding, and of course, a large number of destination choices.

The new alliance means more ways to get to top destinations. Here are the summary options…by the numbers:

981 destinations served
151 countries
14,244 daily departures
3,283 aircrafts in the fleet
474,825 million passengers flown annually

The oneworld Alliance Member Airlines:

Airline Base Country / Region
Airberlin Germany – Central Europe
American Airlines USA – North America
British Airways United Kingdom, Western Europe
Cathay Pacific Airways Hong Kong (China), Far East Asia
Finnair Finland – North Europe
Iberia Spain / Portugal – Southern Europe
Japan Airlines Japan – Far East Asia
LAN Airlines Chile/Peru – South America
Malaysia Airlines Malaysia – Southeast Asia
Qantas Australia – Austra-Asia
Qatar Airways Middle East
Royal Jordanian Middle East
S7 Airlines Russia – Siberia
TAM Airlines Brazil – South America
US Airways USA – North America

Go Lean Commentary … cont’d

Considering one specific country, there is now something wrong in Barbados. [d] In July 2013, Barbados recorded the lowest number of long stay visitors (47,953) during the same period for 13 consecutive years. This is thusly expected to affect the traffic for the annual festival of Crop Over (a traditional harvest celebration connected with Barbados sugar cane plantation culture) [e] for 2014. Long stay visitors usually travel by airplane. This is the issue; there is a supply problem with air travel in the Eastern Caribbean and there is a demand problem. The end result: airline dysfunction and higher prices.

The issue of declining tourism spending is tied to dysfunction in the airline industry. Has the Crop Over event become less attractive or is the blame on the higher airfares that has resulted due to the airline (American Airlines) dysfunction? The analytical conclusion is the problem is with the airline industry.

The 2008 Financial Crisis continues to wreak havoc on the economy of the Caribbean. This is a consistent theme in the book Go Lean … Caribbean; it serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), an alliance of 30 Caribbean member-states.

The Go Lean roadmap calls for regulating and promoting the Caribbean’s aviation industry. We need American Airline and US Airways to deliver on their merger, and then deliver on facilitating air passengers to the Caribbean region.

This is how the CU will optimize the region’s economic engines. This is change!

The Go Lean book presents a series of community ethos that must be adapted to forge this change. In addition, there are these specific strategies, tactics, implementation and advocacies to apply:

Community Ethos – Job Multiplier Page 22
Community Ethos – Lean Operations Page 24
Community Ethos – Cooperatives Page 25
Community Ethos – Ways to Help Entrepreneurship Page 28
Community Ethos – Impacting the Greater Good Page 37
Strategy – Customers – Visitors Page 47
Strategy – Competitive Analysis –  Event Patrons Page 55
Strategy – Core Competence – Tourism Page 58
Strategy – Anecdote – Caribbean Hotel & Tourism Assoc. Page 60
Tactical – Fostering a Technocracy Page 64
Tactical – Commerce – Tourism Promotion Page 78
Tactical – Aviation Administration & Promotion Page 84
Implementation – Ways to Deliver Page 109
Implementation – Trade Mission Objectives Page 116
Planning – Ways to Improve Trade Page 128
Planning – Lessons Learned from 2008 Page 136
Planning – Lessons from Egypt Page 143
Advocacy – Ways to Enhance Tourism Page 190
Advocacy – Ways to Impact Events Page 191
Advocacy – Ways to Market Southern California Page 194
Advocacy – Ways to Promote World-Heritage-Sites Page 248

There are lessons from the evolution and delivery of the American Airlines / US Airways merger in considering the quest for Caribbean optimization:

• When possible, Caribbean solutions should come from the Caribbean.

• When not possible, Caribbean solutions should be serviced by alternate sources, with no one player holding more than 50% of market share.

• Many Caribbean islands have close proximity, so there must always be alternative transportation modes, like ferry-boats.

• Do not “bite the hand that feeds you”; the Caribbean region must protect the engines that drive the economy.

Now is the time to lean-in to this roadmap for Caribbean change, as depicted in the book Go Lean…Caribbean. We cannot afford another American corporate giant, (i.e. Lehman Brothers) mishandling their public trusts. The Caribbean can – and must – be less elastic to American woes.

The Caribbean should be less of an American parasite and more of a protégé.

Download the book Go Lean … Caribbean – now!

————————-

References:

a. Andrew Nocella, American Airlines Senior Vice President and Chief Marketing Officer. AAdvantage Frequent Flyer Status Email. Retrieved January 5, 2014.

b. Wikipedia treatment on American Airlines. Retrieved May 6, 2014 from: https://en.wikipedia.org/wiki/American_Airlines

c. Titcombe, Tara. “The World at your fingertips”. US Airways Magazine. Retrieved May 6, 2014 from: http://tjt0325no2pencil.files.wordpress.com/2014/04/aprilfeature_oneworld_final.pdf

d. “Commentary: Tourism Matters: A better analysis is needed”. Caribbean News Now Online Magazine. Retrieved May 6, 2014 from: http://www.caribbeannewsnow.com/topstory-Commentary%3A-Tourism-Matters%3A-A-better-analysis-is-needed-20985.html

e. Wikipedia treatment on American Airlines. Retrieved May 6, 2014 from: https https://en.wikipedia.org/wiki/Crop_Over

 

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Why not … a profit center?

Go Lean Commentary

Most Caribbean countries have embassies, consular offices and/or trade mission offices in world capitals. These are normally cost centers, where the governments have to maintain the cost burden for these facilities. But why do they have to be cost centers, why not profit centers?

Why not … a profit center? As in one integrated, consolidated center on behalf of all the Caribbean member-states – a classic “cooperative” model. This strategy meets a basic requirement of retail design: traffic. All the embassy, consular and trade mission activities would create impactful retail traffic demands.

This vision comes into focus as a result of the emergence of the Caribbean Union Trade Federation (CU), and the news article[c] below. The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the CU. The roadmap fully anticipated integrating and consolidating Trade Mission Offices (Page 116) to advance the causes of the Caribbean people in foreign countries; eight (8) cities are specified in details.

The resultant facility, and accompanying eco-system, would fulfill a CU mandate, global outreach to expand Caribbean trade within the source country, city and regional area.

From the outset of the roadmap, the intent to leverage Trade Mission Offices was pronounced in the Declaration of Interdependence (Page 13), as follows:

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. … The right of repatriation is to be extended to any natural born citizens despite any previous naturalization to foreign sovereignties.

xx. Whereas the results of our decades of migration created a vibrant Diaspora in foreign lands, the Federation must organize interactions with this population into structured markets. Thus allowing foreign consumption of domestic products, services and media, which is a positive trade impact. These economic activities must not be exploited by others’ profiteering but rather harnessed by Federation resources for efficient repatriations.

The roadmap also urges the urban design approach for mixed-use developments; (Page 234). This dictates a structure designed as retail (ground floor), mezzanine for offices, and higher levels/floors for residences (apartments, condominiums, and hotels). See a sample site in a US Midwestern city here – Photos & VIDEO:

Why Not ... a profit center - Photo 1 (2)

Why Not ... a profit center - Photo 2

Why Not ... a profit center - Photo SPECIAL

VIDEO Midtown Crossing Commercial – https://youtu.be/3Ua3FjWLfKk

A model of a successful mixed-use development is the Omaha-Nebraska Midtown Crossing[a].

Consider New York City; it is one of 8 mission cities envisioned. This  map below and the Appendix Table lists all the addresses of the Caribbean embassies, consulates, and outreach offices in New York City[b] – all within a 5 mile radius. Imagine if all those facilities were in one property – a mixed-use development.

Why Not ... a profit center - Photo 4 (3)

Imagine too, a climate-controlled atrium with Caribbean fauna & flora; a food court showcasing cuisines from all the participating Caribbean countries, (up to 30); art galleries, convention/banquet facilities, exhibit halls, night clubs, performing arts theaters and maybe even an indoor entertainment center (for instance, modeling the legacy of Caribbean Pirates). This vision would generate multiple streams of revenue – a profit center as opposed to 30 cost centers.

This vision would benefit a lot of Caribbean stakeholders with support and outreach services – those desiring to live, work, learn, heal and play in the Caribbean. These stakeholders include:

  • Visitors
  • Caribbean Citizens (travelling abroad)
  • Diaspora
  • Foreign Direct Investors
  • Students

There is the need for this manifestation right now in London, England (another designated Trade Mission Office – Page 116 ); as depicted in this referenced news story[c]:

LONDON, England (May 1, 2014) — Overseas Territory representatives from the British Virgin Islands, Bermuda, Montserrat, the Cayman Islands and Anguilla met with United Kingdom business networking specialists, CaribDirect International Business Network (CIBN) in London last week, as the first networking session focusing on trade and investment gathers momentum.

These discussions, held at the offices of the Bermuda representative, focused on introducing the CaribDirect International Business Network (CIBN) concept; outlining its broad scope; revealing the economic and political opportunities available for the Caribbean Overseas Territories (OTs); and examining practical ways to work together for the benefit of the dependent territories of the Caribbean.

CIBN is an agency designed to facilitate and connect entrepreneurs and business people in the UK with Caribbean government and business representatives for trade and investment.

Representatives attending the meeting were Cayman Islands’ deputy director Charles Parchment, Montserrat director Janice Panton, BVI London Office director Kedrick Malone, Bermuda director Kimberley Durrant, CaribDirect director of policy Ron Belgrave and CaribDirect multi-media CEO David Roberts.

If only this profit center concept existed now … in London … and in New York.

The CU roadmap is designed to bring change to the Caribbean region. This commentary demonstrates that a lean, nimble organization structure can also be “at the corner of preparation and opportunity” and that opportunity can be made in turning a cost center into a profit center. This structure can optimize the Caribbean’s economic, security and governing engines – no matter the location. If the Trade Mission Offices were constituted as profit centers, the following details from the book Go Lean…Caribbean would manifest, with impacted community ethos, strategies, tactics, implementations and advocates; listed as follows:

Community Ethos – Lean Operations Page 24
Community Ethos – Cooperatives Page 25
Community Ethos – Ways to Improve Sharing Page 37
Strategy – Repatriating Caribbean Diaspora Page 47
Strategy – Inviting Foreign Direct Investments Page 48
Tactical – Separation of Powers – State Department Page 80
Tactical – Design Requirements for the Capital District Page 110
Implementation – Trade Mission Objectives Page 116
Implementation – Reasons to Repatriate Page 118
Implementation – Ways to Benefit from Globalization Page 119
Advocacy – Ways to Improve Trade Page 128
Advocacy – Lessons from New York City Page 137
Advocacy – Ways to Enhance Tourism Page 190
Advocacy – Impact the Diaspora Page 217
Advocacy – Ways to Impact Urban Living Page 234

The Go Lean roadmap will make the outreach, and foreign support, for Caribbean stakeholders more efficient and effective. This plan would impact and change the Caribbean and the foreign world we reach out to.

All Caribbean stakeholders – citizens, businesses and governments alike – are urged to lean-in to this Go Lean roadmap.

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

———————

Appendix – References

a. http://www.midtowncrossing.com/about/default.aspx
b. http://michaelbenjamin2012.com/2012/06/21/caribbean-region-consulates-in-nyc/
c. http://www.caribbeannewsnow.com/topstory-Caribbean-overseas-territories-meet-with-UK-networking-specialists-20934.html

———————

Appendix – TABLE – Caribbean States Mission Offices – New York City

Member-State

Address

Anguilla 845 Third Avenue, New York, NY 10022  Phone: 212-745-0277
Antigua & Barbuda 610 Fifth Avenue, Ste 311, New York, NY 10020  Phone: 212-541-4117
Aruba 666 Third Avenue, 19th floor, New York, NY 10017 Phone 877-388-2443
Bahamas 231 East 46th Street, New York, NY 10017  Phone: 212-421-6420
Barbados 820 Second Avenue, 5th Fl, New York, NY 10017  Phone: 212-551-4325
Belize 675 Third Avenue, Ste 1911, New York, NY 10017  Phone: 212-593-0999
Bermuda 845 Third Avenue, New York, NY 10022 Phone: 212-745-8272
British Virgin Islands 845 Third Avenue, New York, NY 10022 Phone: 212-745-8272
Cayman Islands 845 Third Avenue, New York, NY 10022 Phone: 212-745-8272
Cuba 315 Lexington Ave 38th Street New York, NY 10016 Ph. 212-689-7215
Dominica 800 Second Ave, Ste 400H, New York, NY 10017 Phone: 212-949-0853
Dominican Republic 1500 Broadway, Ste 410, New York, NY 10036  Phone: 212-768-2480
Grenada 800 Second Ave, Ste 400K, New York, NY 10017 Phone 212-599-0301
Guadeloupe 45 W 34th Street, Suite 703, New York, NY 10001 Phone  877-203-2551
Guyana 370 Seventh Avenue, 4th Fl, New York, NY 10001  Phone: 212-947-5110
Haiti 271 Madison Avenue, 17th Fl, New York, NY 10016 Phone: 212-967-9767
Jamaica 767 Third Avenue, New York, NY 10017  Phone: 212-935-9000
Martinique 444 Madison Avenue, 16th Fl, New York, NY 10022 Phone: 212-838-6887
Monserrat 845 Third Avenue, New York, NY 10022  Phone: 212-745-0200
Netherland Antilles:Bonaire, Curaçao, Sint Eustatius, Saba 1 Rockefeller Plaza 11th Floor, New York, NY 10020 212-246-1429
Puerto Rico 666 5th Avenue # 15l, New York, NY, 10103-1599. Phone: 212-333-0300
St. Barthelemy 934 Fifth Ave, New York, NY 10021 Phone: 212-606-3601
St. Kitts & Nevis 414 East 75th Street, New York, NY 10103 – 212-535-5521
St. Lucia 800 Second Avenue, 9th Fl, New York, NY 10017 – 212-697-9360
St. Maarten 675 Third Avenue, Ste 1807, New York, NY 10017 – 800-786-2278
St. Vincent & The Grenadines 801 Second Avenue, 21st Fl, New York, NY – 212-687-4490
Suriname 1 UN Plaza, 26th Fl, New York, NY 10017 – 212-826-0660
Trinidad & Tobago 125 Maiden Lane, Unit 4A, 4th Fl, New York, NY 10038 Ph. 212-682-7272
Turks & Caicos Island 845 Third Avenue, New York, NY 10022 Phone: 212-745-8272
US Virgin Islands 45 W 34th Street, Suite 703, New York, NY 10001 Phone 877-203-2551
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Student debt holds back many would-be home buyers

Go Lean Commentary

Diploma 1This 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 C2Page 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

Diploma 2The 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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eMerge conference aims to jump-start Miami tech hub

Go Lean Commentary

Master BrokersPositive Change!

It doesn’t just happen. It takes people forging it, guiding it and fostering it. The below news article speaks of the effort in South Florida (from Miami north to West Palm Beach) to establish an economic engine of a “tech hub”.

This is a noble, yet strategic undertaking. Success in this “industry space” would mean more jobs, investment capital, and more technology students remaining in South Florida after matriculating in the area’s colleges. These 3 objectives align this story with the advocacies of the book Go Lean … Caribbean.

The book serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). The prime directive of this organization is to optimize the economic engines of the Caribbean region. We also want to increase jobs and investment capital, plus retain more of our young people aspiring for careers in high technology fields. But the CU wants to harvest these activities in the Caribbean, for the Caribbean and by the people of the Caribbean.

South Florida is germane to the Caribbean conscience. It is the Number One destination for the Caribbean Diaspora, featuring large populations of Cubans, Jamaicans, Dominicans (DR), Puerto Ricans, Bahamians, and Haitians. The book relates this association by declaring the NBA basketball team, Miami Heat, as the “home team” of the Caribbean; (Page 42).

Right time, right place!

The eMerge Americas Techweek is this week. Also, the Miami Heat has just started the playoffs in defense of their consecutive World Championships.

By: Marcia Heroux Pounds and Doreen Hemlock

A movement to make South Florida a technology hub for the Americas kicks off its first conference this week, aiming to draw more than 3,000 people from entrepreneurs to investors to students — from Broward and Palm Beach counties and from around the world.

Organizers want to build on South Florida’s success as a gateway to Latin America for trade, banking and services, extending that prowess into technology, entrepreneurship and capital for startups. They hope the event — eMerge Americas Techweek — can do for tech what the annual Art Basel event in Miami Beach has done for art: put South Florida on the world map.

It’s an exciting chance for entrepreneurs like Boca Raton’s Dan Cane, chief executive of Boca Raton-based Modernizing Medicine, which developed an iPad application for specialty physicians. He’s among influencers named to the event’s “Techweek100” — South Florida leaders who have had a significant impact on business and technology. He will speak at the conference.

“We jumped at the opportunity,” said Cane, whose 3-year-old company had $17.5 million in sales last year. “We hope to find contacts and connections and begin to develop the right ecosystem in the Latin American market” to export south starting next year.

The eMerge push doesn’t strive to make South Florida into Silicon Valley. It aims instead for a tech center specialized in multinationals looking south, Latin American companies moving north, local startup companies, as well as universities and investors.

That’s why Citi Latin America, the regional headquarters for financial giant Citi, is taking part in what is planned as an annual event. The division employs about 750 people in Miami-Dade and Broward counties and is sponsoring the event, sending speakers and bringing clients, said Jorge Ruiz, who heads digital banking.

“This event is a great example of the things we should do more of,” Ruiz said. It showcases the importance of technology to a range of industries, promotes what South Florida already offers and highlights South Florida’s ability to unite from across the Americas for tech business, he said.

“As people come together, they’re going to realize this is the space to invest in,” Ruiz said.

Universities that train talent for tech jobs are eager to participate too.

“We’re going to bring as many students as possible,” said Eric Ackerman, dean and associate professor of the Graduate School of Computer and Information Sciences at Nova Southeastern University, who also is on the Techweek100 list. Nova has more than 500 students studying information technology.

Ackerman said tech graduates often leave South Florida, figuring they will have better job opportunities in larger hubs known for innovation.

“That’s one of the things we are trying to change — to become an innovation zone for new technology, new products and new services,” Ackerman said. “An event like this says, ‘Look what’s here in our own back yard. Why should I go somewhere else?’ ”

Kimberly Gramm, assistant dean and director of FAU’s Adams Center for Entrepreneurship, is taking winners of FAU’s recent business plan competition to eMerge’s Startup Village.

Some of South Florida’s largest tech companies also will exhibit at eMerge. Those include Citrix Systems of Fort Lauderdale, C3 Cloud Computing Concepts of Delray Beach and TriNet Group of Boca Raton, said Lonnie Maier, president of the South Florida Technology Alliance, a group that promotes local tech.

Investors and consultants to startups also are heading to eMerge to network and build business.

New World Angels, a Boca Raton-based group of investors, will share a booth with the Miami Innovation Fund to offer entrepreneurs advice on launching or growing their ventures, said Rhys Williams, executive director of New World Angels and a Techweek 100 leader.

“Technology investing is a contact sport. There are few textbooks or classes of relevance, so this conference is a timely way to keep current on your knowledge base and pick up new knowledge, skills and contacts,” said Williams, who also is a judge in the eMerge Launch competition where more than 200 companies will compete for $150,000 in prizes.

Of course, South Florida faces hurdles in its quest, tech leaders said.

The area needs to overcome a long-time image based on sun and fun. And it needs to show critical mass in tech, especially success stories of entrepreneurs that grew startups to global players — much as conference organizer Manny Medina did, starting Miami-based Terremark and selling it for more than $1.4 billion to Verizon.

Enterprise Development Corp. President Rob Strandberg, whose group works with startups from Boca Raton to Miami, will be busy making introductions between entrepreneurs and potential investors at the conference. He’s also a judge in the Launch competition.

EDC executive director Linda Gove will participate with the Boca Raton incubator’s startup companies.

“Investors are taking notice of South Florida companies to a far greater extent than they were,” Strandberg said.

Joe Levy, CEO of Fort Lauderdale-based startup ClearCi and also named to the Techweek 100, said the perception of the area as a tech hub is changing.

“Folks used to ask me, ‘Why aren’t you in Silicon Valley?’ ” Levy said. “We don’t get that anymore.”

South Florida’s Sun Sentinel Daily Newspaper – April 27, 2014 – http://www.sun-sentinel.com/business/careers/fl-emerge-broward-palm-beach-20140427,0,1252077.story

The Go Lean roadmap calls for agencies within the CU to champion technological start-up endeavors, much like this week’s eMerge initiative.

There is much for the CU’s planners to glean by the observation of the planned events this week. The Go Lean/CU approach, in the absence of the actual establishment of the Trade Federation is simply to:

1. Look
2. Listen
3. Learn
4. Lend-a-hand
5. Lead

This approach is codified in the book, with details of community ethos, strategies, tactics, implementations and advocates; as follows:

Community Ethos – Impact the Future Page 26
Community Ethos – Foster Genius Page 27
Community Ethos – Help Entrepreneurship Page 28
Community Ethos – Promote Intellectual Property Page 29
Community Ethos – Impact R & D Page 30
Community Ethos – Bridge the Digital Divide Page 31
Strategy – Agents of Change: Technology Page 57
Separation of Powers – Patents & Copyrights Page 78
Implementation –  Self-Governing Entities Page 105
Implementation –  Impact Social Media Page 111
Ways to Better Manage Image Page 133
Industries – Ways to Foster Technology Page 197
Industries – Foster e-Commerce Page 198

We hope for success for eMerge Americas Techweek. We hope our Caribbean brothers living and working in South Florida participate, engage in and benefit from this initiative. Then we hope that they would repatriate some of this passion, knowledge, and experience back to their Caribbean homelands.

Lastly, we cheer for further basketball dominance. Go Heat!

Basketball shot

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

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Real Estate Investment Trusts explained

Real Estate Investment Trusts (REITs) are one way you can invest in real estate while enjoying a level of liquidity synonymous with the stock market[a]. Learn more here, from this VIDEO:

VIDEO – Real Estate Investment Trust REIT Definition Investopedia – https://youtu.be/UnKqUKZ1K1A

The book Go Lean … Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU) and the Caribbean Central Bank (CCB). One prime directive of the roadmap is facilitating the return of the far-flung Diaspora to their Caribbean homelands. This does not mean returning to the same houses they may have abandoned decades ago. Thusly, there is the need for new housing solutions; and new housing financing schemes. The CU is proffered to provide economic optimizations to better manage the region’s basic needs: food, clothing, energy and shelter.

REITREITs are prominent in the Go Lean roadmap to satisfy the shelter mandate for Caribbean repatriates; (Page 217).

This mandate is detailed early on in the book’s Declaration of Interdependence (DOI), as follows (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 roadmap posits that there are no capital/security markets in the Caribbean that offer the liquidity options of Wall Street – Page 200. (Wall Street is #1 globally). However the book describes an optimization of the existing financial markets that can still take place with the introduction of the Caribbean Dollar – managed by a technocratic Caribbean Central Bank – and elevation of the current 9 Stock Exchanges.

The “dominoes” thusly begin to fall. So with the liquidity of a vibrant capitals market, comes funding, with funding comes housing “starts”, followed by construction activity. All of this creates market kinetics.

So facilitating this eco-system of the CU/CCB will ultimately create … jobs. This is the rallying cry in the US for the National Association of Realtors®. They estimate that one job is generated for every two home sales. Using that ratio, 1,000 home sales generate 500 jobs [b]. So after the basic need of food, clothing, energy and shelter, the next mandate is … jobs, (DOI – Page 14).

xxvi. Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building, automobile manufacturing, pre-fabricated housing, frozen foods, pipelines, call centers, and the prison industrial complex. In addition, the Federation must invigorate the enterprises related to existing industries like tourism, fisheries and lotteries – impacting the region with more jobs.

The Go Lean roadmap portrays the community ethos to encourage savings/investments. The roadmap also calls for stronger oversight from an institutional perspective, with economic principles in place to increase the money multiplier; (Page 21 & 22).

This constitutes change for the Caribbean: a new plan, new products, services, opportunities oversight. In truth, a new future!

Download the book Go Lean … Caribbean – now!

————

References

a. Investopedia – http://www.investopedia.com/video/play/real-estate-investment-trust/

b. National Association of Realtors: http://www.realtor.org/topics/home-ownership-matters/jobs-impact-of-an-existing-home-purchase

 

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