Money, money, money: Remittances and microbanking in Haiti

by Jennifer Nerby, COHA Research Associate



Haiti, along with the greater Caribbean, has experienced a substantial decline in remittances following the 2008 global economic crisis. Fortunately, remittance flows to Haiti increased significantly in the aftermath of January 2010’s earthquake. That year, Haiti received USD 1 billion in relief funds, with a significant portion coming from the Haitian diaspora.[1] While these contributions helped many individual Haitian families to recover from the devastation, it is demonstrably clear that remittances do not pose a long-term solution for the country’s economic woes. In spite of relatively high remittance rates, Haiti suffers from pervasive unemployment. Many small island specialists seem to feel that only growth in small businesses and microlending operations can stimulate an independent and self-sufficient Haitian economy.


The Quake


On January 12, 2010, a 7.0 magnitude earthquake struck ten miles west of the Haitian capital, Port-au-Prince, leaving over three million people in need of emergency assistance.[2] The earthquake displaced at least 1.3 million people, and as of January 1, 2011, an estimated 810,000 remained in the 1,150 refugee camps still in operation.[3],[4] That same month, Nigel Fisher, the United Nations Humanitarian Coordinator for Haiti, commented, “In retrospect I think we can say that by and large the initial response to the earthquake was a success.”[5] Remittances were a critical component of the total relief efforts; more than one million members of the Haitian diaspora increased the amount of money they send to relatives in Haiti after the calamity, resulting in a USD 360 million surge in remittances during 2010. World Bank economist and remittance expert Dilip Ratha explains that, “Financial help in the form of remittances from family members is always the first to arrive in times of distress.”[6] Though remittances provided much needed support to the earthquake’s survivors, it is unclear if these funds will permanently reduce poverty and bring about necessary infrastructural change.


The Remittance Debate


Like many Caribbean nations, Haiti depends on remittances as a fundamental component of its national GDP ratings. According to the World Bank, migrants hailing from Latin American and Caribbean nations (LAC) sent a total of USD 48.3 billion to their home nations in 2005, and remittances represented 70 percent of all foreign direct investment to the region in 2004.[7] In Central American and Caribbean nations, remittances typically account for 10 to 20 percent of each nation’s GDP.[8] Haiti, however, is a special case; it dramatically surpasses the average ratio, with remittances accounting for 52.7 percent of the nation’s GDP in 2004.[9]


Remittances do not necessarily solve pressing economic, political, or social issues in the Caribbean. In a 2007 paper entitled “Close to Home: The Development Impact of Remittances in Latin America,” World Bank senior economists Humberto López and Pablo Fajnzylber examine the positive and negative effects of remittances. Although the authors acknowledge that remittances often stimulate growth and investment, improve access to health care and education, and increase macroeconomic stability and individual savings, they question the effectiveness of remittances in decreasing poverty and instability in recipient nations.[10] These contributions are subject to the financial standing of individual immigrants in developed countries and often prove inconsistent, as evidenced by the stagnation of remittance flows following the inception of the global financial crisis of 2008.


The Crash


The global economic crisis of 2008 caused an abrupt decline in remittances worldwide, doing grave damage to many Caribbean economies. Looking forward, a variety of sources anticipate substantial increases in remittances to the Caribbean during 2011 and 2012 as developed economies recover from the 2008 crisis. Nine of fifteen Caribbean countries were expected to grow in 2010, but Haiti, along with five other nations, was predicted to contract significantly.[11] This regression is largely related to a 12 percent decline in remittance rates during 2009, as Haiti was found to lack the domestic industries required to recover without international aid. The Outlook for Remittance Flows report anticipated that a two percent growth in remittances to Latin America and the Caribbean should be expected in 2010, and the World Bank reported that a “healthy recovery” was underway from the slump of 2009.[12] Furthermore, the Outlook anticipated 7.6 percent growth for 2011 and 10 percent growth in 2012, totaling USD 69 billion in remittances allocated to the Caribbean. Haiti is scheduled to be one of the top three recipients of such funds.[13]


While high remittance rates have at times accounted for legitimate economic benefits, local business development in Haiti has been dwindling as a result of the nation’s dependency on international donations. Much of Haiti’s reliance on remittances can be attributed to the nation’s high rates of unemployment, which reached an astronomical 40.6 percent in 2010. The CIA World Factbook noted that two-thirds of the population did not hold a formal job and ascribed the lack of foreign investment in industry to Haiti’s “limited infrastructure and a lack of security.”[14] As a result, remittances have been found to create a vicious cycle of dependency on international donations coming from abroad. The escalating presence of microbanks as a major financial tool has led to the growth of small businesses and local industries, conceivably replacing remittances as the backbone of the Haitian economy.


Microlending


Unlike remittances, microlending initiatives retain the potential to tackle Haiti’s weak infrastructure and unemployment. Fonkoze, one of Haiti’s most prominent for-profit microbanks, has forgiven more than ten thousand loans after the earthquake and continues to play a crucial role in the recovery process. The bank also expanded the “Ti Kredi,” or “Little Credit,” loan program to offer small loans of USD 25 to poor families who did not qualify for the bank’s larger USD 125 loans. “Ti Kredi” includes shorter repayment periods as well as health care and educational services.[15] Fonkoze’s programs present borrowers with the economic opportunity to open small businesses, along with the critical skills to manage them successfully.


Thus far, microbanks have been one of the most effective relief agencies in Haiti and have been found to have the potential to enact enduring and progressive change in the region. Greta Greathouse of the United States Agency for International Development (USAID) believes that Haitian microbanks “need to get stronger on a permanent basis so they can offset the operational risks that come with Haiti because of the earthquake and the inherent risks that are unfortunately a way of life for the country and its people.”[16] A debilitating lack of infrastructure prevents many microbanks from becoming self-supporting and for-profit, as international contributions are often needed to cover losses from missing and delayed loan payments. Strengthening the Haitian banking industry will require improved regulation and a gradual shift toward for-profit banking.


Most microbanks in Haiti remain non-profit and consequently require international assistance to recompense for unpaid loans. Non-profit banking, while more sustainable and autonomous than remittances, lacks the financial transparency of for-profit institutions.[17] Fonkoze is one of the few for-profit institutions in Haiti and had to operate at a loss for nearly three years before it was able to turn a profit. The microbank eventually stabilized thanks to USD 15 million in foreign donations.[18] Though the bank initially depended on international contributions, Fonkoze is now en route to self-sufficiency and provides many Haitian borrowers with the opportunity to open and operate independent businesses.


Conclusion


The microlending climate in Haiti is far from ideal. Fonkoze nearly closed in 2008 due to losses from a destructive hurricane season, and more than 50 percent of borrowers with the major microcredit group Finca Haiti missed payments after the 2010 earthquake.[19] The impoverished Caribbean nation is no stranger to natural disasters, and its dependence on foreign aid automatically entails a delay in relief efforts. The development of sound local emergency relief programs will enable Haiti to respond quickly and efficiently to crises without having to wait for foreign assistance. As more Haitians turn to microbanks for loans, the need to secure and regulate the banking industry grows ever more pressing. While some regulation efforts have been undertaken, it is still necessary to guarantee that Haitian microbanks are able to survive natural disasters and economic downturns like that of 2008.


Both remittances and microbanks have been vital to Haiti’s recovery since January 2010. Remittances offer a temporary solution to a greater economic problem. With improved regulation and security, microbanks can revolutionize the Haitian infrastructure and employ millions of jobless citizens. As in Fonkoze’s case, initial international investment will be necessary to financially secure Haitian microbanks, but the eventual autonomy of these institutions could be a remarkable game-changer for the Haitian economy.




The references for this article can be found here.





The Council on Hemispheric Affairs, founded in 1975, is an independent, non-profit, non-partisan, tax-exempt research and information organization. It has been described on the Senate floor as being "one of the nation's most respected bodies of scholars and policy makers." For more information, visit www.coha.org or email coha@coha.org

August 25, 2011



caribbeannewsnow

Bahamas Blog International

Bahamas: Hurricane Irene could potentially fuel the dengue fever outbreak says Minister of State for the Environment Phenton Neymour

Neymour: Hurricane Irene could impact dengue fever outbreak

By Krystel Rolle
Guardian Staff Reporter
krystel@nasguard.com

Nassau, The Bahamas

Hurricane Irene could potentially fuel the dengue fever outbreak, according to Minister of State for the Environment Phenton Neymour.

He explained that the system could impact the government’s response to the outbreak.  However, the minister added that the storm could also help the government get a handle on the outbreak.

“The ministry is concerned because the hurricane is coming —  not just because it’s a hurricane but in regards to the dengue outbreak,” Neymour said.

“There are positives and negatives to a hurricane in that if there are high winds, the winds may blow the mosquitos away and not allow them to reproduce.  It could also assist in the further outbreak in that regard.  So a hurricane could assist but at the same time it offers challenges with fogging exercises.  The high winds may impact fogging.”

On its current path, the eye of the storm is expected to pass over New Providence between tomorrow and Thursday morning.

Minister of Health Dr. Hubert Minnis told The Guardian yesterday that more than 3,000 people have contracted the virus to date.  However, he noted that not all of the persons who have dengue fever received medical attention and therefore would not have been added to the count.

And with the health care facilties already inundated with patients, any increases in the dengue fever outbreak could further strain the public resources.

However, Dr. Minnis said the Ministry of Health is preparing for that eventuality.

“Though we may have strained resources, we find that opening the clinics on the weekends specifically for dengue cases is very, very helpful in reducing the burden,” he said.

The South Beach and Fleming Street clinics are open on weekends for dengue cases.

“If the need arises we would do what is necessary.  If more clinics need to be opened we will make them available.  We are finding that our policies are working, and the staff is performing well.  So we will continue on this track.”

Minister Neymour said the Department of Environmental Health is also prepared to expand its fogging exercises.

In the meantime he said heavy fogging exercises will continue.

However, he advised residents to continue to empty containers around their homes, especially after bouts of rain.

Dr. Minnis said residents should also spray their homes and businesses with mosquito repellents during closing hours as an extra precaution.

He said all medical facilities are being sprayed to avoid contamination.

The Aedes aegypti mosquito is responsible for the spread of the virus.  Fever, muscle pain, eye pain and headaches are some of the symptoms associated with the virus.

People with mild symptoms are being asked to treat themselves at home by getting rest, drinking fluids and taking medicines such as Panadol or Tylenol.

Aug 23, 2011

thenassauguardian

Oswald Moore, chairman of the Bahamas Petroleum Dealers Association's (BPRA) says: The Bahamas petroleum sector should be deregulated and the Government-imposed margin/price controls removed

Gov't urged to end petroleum sector margin controls

By NEIL HARTNELL
Tribune242 Business Editor
Nassau, Bahamas



A leading petroleum retailer yesterday agreed that the sector should be deregulated and the Government-imposed margin/price controls removed, telling Tribune Business that no further strike action was currently being contemplated.

Oswald Moore, chairman of the Bahamas Petroleum Dealers Association's (BPRA) margin relief committee, told this newspaper in the wake of Friday's meeting with Prime Minister Hubert Ingraham that allowing gas stations and the oil companies to compete, and the market to set the per gallon price of gasoline and diesel, provided the best way forward for the industry.

"Yes, I would agree with that," Mr Moore responded, when asked by Tribune Business whether the Government should get out of imposing price controls on the petroleum industry.

"Most of the countries around us have already done that. Because they compete, they set the price in the marketplace."

Mr Moore said the current situation facing BPRA members was "impossible", adding: "We have been subsidising the industry now for a long time - for the past three-plus years."

Asked whether many Bahamians might question why petroleum dealers remained in the business, given the obvious difficulties in making a profit, Mr Moore replied: "Yes, they can wonder that, but when you consider the number of people who have mortgaged their homes and so forth to survive, they cannot walk away from it like that."

The crux of the issue is that gas station dealer margins, fixed at $0.44 per gallon of gasoline and $0.19 per gallon of diesel, are expected to not only generate a profit but cover rising fixed costs, such as labour, electricity bills and the various fees payable to the oil companies - rents, royalties and franchise fees and the like.

These rising costs have outpaced the fixed margins, a problem compounded by increasing oil prices. When the latter rises, Bahamian petroleum dealers are forced to turn to credit - cards, overdrafts, mortgages, bank loans and such like - to pay for their next fuel consignment, as the revenue streams earned on the previous, lower-priced inventory, are insufficient to cover the cost.

To compensate, BPRA members have been seeking a $0.30 increase in the per gallon of gasoline margin to $0.74, up from the existing $0.44 per gallon. On diesel, they were pushing for a $0.28 per gallon margin increase to $0.47, up from the existing $0.19. These were effectively 68 per cent and 147 per cent increases, respectively, in the gasoline and diesel margins.

However, the Prime Minister told Mr Moore at a Friday meeting that the Government, fearing the effects of a margin increase on the private sector and already-burdened consumers at a time of economic weakness and already-high gasoline prices, was not currently prepared to grant the BPRA's request.

The BPRA had previously indicated that failure to grant the margin increases would result in its members taking strike action, but this option appears off the table - for the moment.

"We are not looking at further strike action at the moment," Mr Moore told Tribune Business. "We think the Prime Minister's announcement was positive, and we will continue negotiations."

Mr Ingraham extended several 'olive branches' to the BPRA, according to a release from the Cabinet Office, promising that the margin increase request would be revisited once global gasoline and diesel prices reduced.

And the Government will also establish a Commission to assess gas station dealer complaints about alleged high operating costs, and other practices, imposed upon them by the three major oil companies - Esso, Texaco and FOCOL Holdings (Shell).

"I think it's something that needs to be done, but I don't want to say anything more about it at this time," Mr Moore said of the Commission.

Rents, royalties and franchise fees paid by dealers to the oil companies have long been a source of contention. Given that these payments come out of dealers' $0.44 and $0.19 per gallon margins, the argument has been that the wholesalers - the oil companies - actually earn more per gallon than their own $0.33 fixed margin.

But, more interesting perhaps, was that the Cabinet Office statement left the door open to deregulating the Bahamian petroleum industry, saying "a revision of policies" could ultimately lead to this happening.

Apart from Mr Moore, such a move was also backed by former Bahamas Chamber of Commerce president, Dionisio D'Aguilar, who urged that the Government and politics be removed from price control regulation of the sector.

"It's so silly and stupid the system they have in place because you have to go back to the Cabinet, and once you put the decision in the hands of politicians, it's a no-win for them," Mr D'Aguilar told Tribune Business.

"For them to give a price or margin increase, they will be accused of taking money out of the hands of the poor man and putting it into the hands of the gas dealers.

"As a result, the politicians are scared to make a decision to put up gas margins. You know this is exactly what is going through their brains. This is a politically horrible decision for them to make, and petroleum retailers thus become a victim of politics......

"This is why the process should not be in the hands of the Cabinet of the Bahamas. It's a no-win situation for them.

"The only way petroleum retailers can get a decision is by screaming and carrying on."

Urging the Government to "get out of making" decisions on gasoline margins, Mr D'Aguilar said this power should either be transferred to a body similar to the Utilities Regulation & Competition Authority (URCA), or a formula for small, annual increases established.

"They should set up a mechanism where margins increase according to the rate of inflation, or they are put up by two cents a year. If you went up one or two cents a year, no one would notice it," Mr D'Aguilar told Tribune Business. "Then you could review it, and come up with a mathematical formula in a systematic way.

"Work it out, make a decision and move on, so we don't have to come back to this."

August 22, 2011

tribune242

Bahamas Blog International

The CARIBCAN trade agreement - what is the OECS strategy?

By Ian Francis

Within the next year, the much touted CARIBCAN trade agreement tinkering will be concluded. CARICOM, OECS and Canadian trade negotiators will take credit for a job well done after the signing ceremony.

It will be interesting to see where the signing ceremony takes place. If it is in the depth of winter, the Canadian negotiators are likely to push for a Georgetown or Bridgetown signing ceremony only to escape Canada’s brutal winter. On the other hand, irrespective of the cold and soggy winter in Canada, our Caribbean negotiators who are so embedded in the per diem culture will prefer an Ottawa signing ceremony in order to maximize their per diem incomes.

Once the revised agreement is signed, the burning question remains. How can the Caribbean trade and export sectors maximize opportunities in Canada through the CARIBCAN agreement?

It is not a new agreement and has been around since the Mulroney days. Unfortunately, its failure was well known when Caribbean governments took ownership and locked up the policies and tariffs in the cupboards of local ministries of trade and industry. Exporters and investors from some CARICOM states remained disengaged and could not seize the opportunity to penetrate and sustain markets within Canada because there was no information, no market intelligence and no encouragement of partnerships through joint ventures and other initiatives.

It is hoped that, this time around, Caribbean governments will understand that a successful trade and investment partnership must be realized through strong and effective institutional collaboration. To put it bluntly, the Caribbean and Canadian governments are not involved in trade exports. However, through the agreement and sensitizing of officials on both sides of the spectrum, it is quite likely that barriers will be minimized and officials will become more informed about the free movement of goods and tariffs that have been eliminated.

In objective and realistic terms, trade collaborative efforts and sustainability between CARICOM nations and Canada require more than dependency on the “tiny bob” consular missions established in Canada. With fairness, Jamaica, Trinidad, Barbados and Guyana maintain very effective consular missions with a strong trade arm.

Therefore, if the OECS is serious and committed to a trade and investment strategy between Canada and member states, the current regional approach and strategies for market penetration cannot be successful in its current form. Caribbean trade and investment initiatives cannot be achieved through obscurity or ineffective marketing networks.

The OECS must recognize that they require planning assistance to formulate, implement and sustain an effective trade strategy in Canada. It is achievable but there must be a willingness to understand the need for planning and collaboration.

An effective trade and investment strategy between Canada and the Caribbean within the context of the CARIBCAN trade agreement must extend beyond rum and nice beaches. Certainly, Caribbean rum imports in Canada will continue to be very important. However, those responsible for such products reaching Canadian shelves must understand that it is a competitive environment, as Trinidad, Cuba, Guyana, Jamaica and Barbados have already saturated the products.

Therefore, while the Europeans continue to fund the OECS Dominica-based Trade Unit, staff at this unit must understand that the import tariff on Caribbean rum will be affected within the new agreement and OECS nations need to introduce more than rum and hot pepper sauce to the Canadian market.

A few years ago, Michael Astaphan of Dominica and some other OECS colleagues began the process of establishing a private sector export organization. The concept had merit and received much needed assistance from the Europeans. Unfortunately, the concept died and a very valuable opportunity was lost. It is hoped that the concept can be revived because such an organization is of necessity, since most Caribbean exporters and investors are private sector persons.

Both CARICOM and the OECS must recognize that trade and exports should be private sector driven and not given the appearance that it is state sector driven. It is time to support and assist the private sector in their quest for new markets.

Another perception that must be dispelled with is the belief that regional chambers of commerce are the prime export movers in the region. While some chamber members might be exporters, we need to ask why Guyana, Barbados and other MDC Caribbean nations have strong and effective export agencies. The OECS needs to adopt a learning chapter from these organizations and support a strong OECS private sector export agency.

Another issue on Caribbean trade initiatives seems to be the duplication of regional agencies that purport to promote Caribbean trade abroad. There is the Barbados-based, CARICOM-funded agency Caribbean Exports, which continues to find successful niches with only hot pepper sauce promotion. Frankly speaking, this is another serious area that CARICOM’s new secretary general must address.

Maybe it is time to eliminate this agency and find some form of new organizational accommodation with the OECS that will witness the following three concrete outcomes: 1) Development and sustainability of a strong OECS private sector exporting agency to maximize opportunities and success through the CARIBCAN trade agreement; 2) strong and sustainable trade partnerships between private sector institutions in Canada and the OECS; and 3) moving the OECS trade initiative in Canada beyond the Trade Facilitation Centre.

Finally, successful trade implementation initiatives by OECS exporters to Canada require reliability, effective communications, utilization of information technology tools and seriousness. Canadian importers are not interested in stories and excuses as to why a product did not arrive.

The CARIBCAN trade agreement will provide excellent opportunities but its success will only be realized if the regional export private sector players are allowed to play their role. Once the agreement is signed, both regional multilateral agencies need to delimit their involvement.

The trade and investment process between Canada and the Caribbean must be private sector driven.

August 22, 2011

caribbeannewsnow

Belize On A Slippery Road

jamaica-gleaner editorial



There are many ways, the saying goes, to skin a cat. But the process is unlikely to be efficient with a blunt axe, wildly wielded in a crowded room.

You may, in the end, get the cat, but with great collateral damage and at a cost far greater than intended, or you dared to contemplate. Which is what we fear is likely in the English-speaking Central American country of Belize, where the United Democratic Party administration of Prime Minister Dean Barrow is attempting the ninth amendment of the Belizean constitution and is in a fight with almost everyone in the country over the matter.

Jamaica has an interest in the events unfolding in Belize, for like our island, Belize operates a Westminster-type system of government and is a member of the Caribbean Community (CARICOM). And a few Jamaican companies have interests in Belize.

It matters little that the proverbial cat the Barrow administration is trying to skin is Lord Michael Ashcroft, the hardly liked and shadowy former deputy chairman of Britain's Tory Party, who casts a long, and some claim manipulative, shadow over the Belizean economy.

Lord Ashcroft, who for years avoided paying taxes in the UK by claiming resident status in Belize, controls a wide range of business in that country, from banking and offshore business registration to telecommunications. Ashcroft's holdings include Telemedia, which is a near-monopoly in Belize's telecoms sector.

Lord Ashcroft developed a seemingly cosy relationship with the former People's United Party (PUP) administration which, his critics say, allowed him privileges, as well as an appointment as Belize's permanent representative to the United Nations, until the PUP lost power in 2008.

privatisation muddle

In 2009, Mr Barrow's party, using a hurriedly passed telecommunications law, nationalised Telemedia, over whose secretive licensing arrangements there was much controversy. The acquisition was upheld by the Belizean Supreme Court but was this year overturned by appeal judges, who held that the government did not have sufficient or compelling reason for the nationalisation.

Now, Mr Barrow, who needs more than 75 per cent votes in Parliament to amend deeply entrenched clauses of Belize's constitution, is attempting to place Telemedia's nationalisation beyond doubt by making a provision of the constitution that the government must control public utilities.

The water company, privatised in 2001, has been back in government hands since 2005, but Mr Barrow recently nationalised the electricity company, owned by Canada's Fortis Corporation.

Telemedia's status remains in limbo. While the appeal court held its nationalisation to be wrong, it made no specific ruling on what to do. So the government says the board of directors it appointed remains in place. Lord Ashcroft's lawyers have taken that and related issues to the Caribbean Court of Justice.

In the meantime, Mr Barrow is moving ahead with his constitutional amendment, including an adjustment to Section 69, to remove "all doubt" that any "law passed by the National Assembly to alter any provision of this Constitution which is passed in conformity with this section shall not be open to challenge in any court of law on any grounds whatsoever".

Mr Barrow should be warned that his government's action is having a chilling effect on the private sector and is bad for Belize's economy. But worse, this high-handed behaviour, because he has the parliamentary numbers, poses graver danger for Belizean democracy.

August 21, 2011

jamaica-gleaner editorial

Bahamas Blog International

Turks and Caicos constitution tailor-made for British

By Ben Roberts



And why should we expect otherwise?

It was proposed by them when they yanked the previous document, deciding that a new one was in order.

It was designed by them when they hired a private consultant to put it together.

It was shaped by them when this consultant went throughout Turks and Caicos in town hall meetings, supposedly to elicit input from residents who, when they saw the finished product, were quite stunned and upset that it had very little of what they had laboriously submitted for inclusion.

Its introduction was heralded by a three person British Foreign and Commonwealth Office (FCO) team that held meetings around the Islands that can only be described as raucous, and filled with displeasure and dissent. In those meetings the FCO team stated over and over that they were ’listening,’ and ‘heard loud and clear what Turks and Caicos citizens had to say.’

In one of those meetings senior team member, Mr Ian Hendry, almost caused a fire-storm in the house-of-prayer venue when he basically defended the document’s contents by stating that ’Britain calls the shots here.’

Incidentally, it was incomprehensible to me why there was so much upset with Mr Hendry’s comment. He was absolutely right. Britain does ‘call the shots,’ and has been doing so for 212 years since they claimed Turks and Caicos as their colonial prize in the days of sailing ships, and we nor they have done anything to change this state of affairs.

The justification for Mr Hendry’s ’Britain calls the shots’ comment came scant weeks later when the FCO asked a team of seven Turks and Caicos citizens to come to the UK to ’negotiate’ the final touches for this document that would guide the lives of the Territory’s citizens for decades to come.

It gets better. THEY picked the group that they wanted to come to ‘negotiate,‘ which included individuals chosen and serving in the British-created Turks and Caicos Interim Government. These individuals complied with break-neck speed, proving without a doubt who ‘calls the shots,’ and proving Mr Hendry right as rain.

To cap all this off, Honourable Minister Bellingham paid a visit to Turks and Caicos playing the part of the town-crier and announcing the introduction of this diktat, at a timing to be decided by the Governor. Case closed! And this is democracy? And this is how a people’s rights are decided in the year 2011 A.D.

It is difficult to decide whether to laugh or to cry at this process in this day and age. On the one hand it resembles a circus show that makes one want to laugh, but on the other it so seriously affects the destiny of a people, our Turks & Caicos people, that it leaves one feeling close to tears.

Find and read Section #132 of the new Constitution. It is British preferential treatment pure and simple. Who asked that this be put in this document? Was it the Islanders during their input to the constitutional consultant on her visit through the Islands? Was it the consultant and her bosses, the FCO, who alone decided that this was a must? Was it the Turks and Caicos ’negotiating team,’ and especially the Interim Government representatives who thought this preferential inclusion to be necessary? Was it a particular segment of the expatriate community, feeling themselves now to be in a most privileged position by having an Interim Government that sees things from their perspective, and in ways that they relate to, who impressed upon the powers that be the need to include this preferential treatment? This latter possibility is quite intriguing. But think back and ask the following:

-- How is it that expatriates dominate the Turks and Caicos corporate law arena, the river through which the lion’s share of the country’s finances flowed, including that part tainted by corruption, yet no one from that community had to answer to the Commission of Inquiry? Is this not incredible?

-- How is it that in meetings such as the town hall events of the FCO team, almost no expatriates are seen (this observation made at the Provo church-hall venue)? There it is overwhelmingly native Turks and Caicos citizens strongly and passionately voicing their opinions of what is amiss and what they would like their future to be. But then in the final outcome we see Section #132 mysteriously show up in the Constitution. Does this segment of the population quietly, around the tea table, have the ear of these visiting power brokers and are able to get their agenda and interests acted upon in a way that the native population are hopelessly unable to do, no matter how much beating-the-gums and passion they display?

-- Farfetched you say? Think of this. Some believe that the about-to-be-exiled high-flying FCO official from Turks and Caicos to the same venue as Napoleon, was because he royally offended those in the expatriate community that hailed from his part of the world. It is a known fact that many of them despised him, and expressed as much vocally and in colourful language publicly. Oh, make no mistake, he offended native citizens on an ongoing basis, and they made their complaints known across the Atlantic. But to no avail. However, once he incurred the wrath of this expatriate community, it is thought that they used their influence to make him a modern-day Napoleon-in-exile.

We sit around in Turks and Caicos, and elsewhere, contemplating that the British seem to be making moves to take Turks and Caicos from the hands of its natural born citizens. But in truth they might be putting in the final touches to pulling it off.

It’s called deception and suppression of information, ideas, and talent even as they fly the false flag of ’Partnership and Progress,’ and ’we are listening’ and ‘we hear you loud and clear.’ It’s called complicity as our people, quick to stampede over each other, run at their beckoning to help them put their agenda in place.

It is quite disconcerting to see London and other UK cities on fire and being looted in a spree of lawlessness. So not British. An exasperated PM David Cameron described it as ’thievery,’ and ’criminal.’ Not so simple, Mr Prime Minister. A social scientist I am not, but I daresay it is much more than that.

As your people see their fortunes decline as their elected officials give them a deaf ear and get away with most outrageous behaviour, they feel disempowered and frustrated (like Tony Blair‘s deception to get the UK into the war in Iraq, British soldiers dying in Afghanistan, British citizens’ financial fortunes declining due to poor financial management, and the recent phone hacking scandal that makes one question diligent search for justice).

This all points to a crisis of confidence, causing well-meaning and law-abiding citizens to behave in this uncharacteristic manner. Now, if British citizens feel this way about those they chose to govern them, how much more should citizens of a Territory like Turks and Caicos, who lack representation at home or in the UK, feel about the path of their lives and their future? Remember the American abolitionist William Lloyd Garrison who said: ’If it’s not just, it’s not law.’ We should all pay heed to the words of this unapologetic and straight-forward man.

Ben Roberts is a Turks and Caicos Islander. He is a newsletter editor, freelance writer, published author, and member of TC FORUM. He is the author of numerous articles that have been carried by a variety of Internet websites and read worldwide. He is often published in Turks & Caicos news media, and in the local newspapers where he resides. His action adventure novel, Jackals of Samarra, is available at Amazon.com, and at major Internet book outlet sites.

August 20, 2011

caribbeannewsnow

Bahamas Blog International

Keep an eye on Suriname

By Ray Chickrie


Former military leader, and now democratically elected president of Suriname, Desi Bouterse, is keen to bring positive international spotlight to his country. That is the case so far.

Just a week ago, Fitch upgraded the sovereign foreign currency credit rating for Suriname one notch to B-plus, citing a stronger credit position and improvements in its balance of payments. The rating outlook was revised to stable from positive. Suriname is moving ahead in its quest to develop its economy without the help of Holland, its former colonial master.

Already, Suriname has made news in the Arab Gulf after Dubai Ports acquired major stakes in two harbours in Paramaribo. Canada and the United Arab Emirates are emerging rapidly as Suriname's principal trading partners because of economic external factors such as the rapidly growing world market for gold.

In the next three years, Suriname will see over 2 billion dollars in investments from IAMGOLD (US$800 million), Newmont (at least half a billion) and State Oil (US$1 billion). As well, the government will commence the building of 18,000 homes. These investments are besides those that China will be negotiating with Suriname soon. This will lead to a construction boom in Suriname and the government is already looking to address the issue of labour shortage. Most likely, Paramaribo will look to Guyanese labourers to fill this void.

Suriname pushed ahead before Guyana to build a major road and railway to northern Brazil and with a major partnership with Dubai Port and an agreement with Cayenne, this investment is sound. Moreover, on the western front, Suriname will bridge the Corantijn River to Guyana, and there are also discussions to build an international airport in Nickerie. This will attract Guyanese travelers from the state of Berbice, offering cheaper, easier and convenient options of travelling to the Caribbean, North America, Europe and Brazil. Suriname Airways (SLM) will recommence service to Guyana and extend its reach into Northern Brazil according to Foreign Minister Lackin.

Suriname has been on its own for the past decade, funds that Holland owed to Paramaribo have dried up, and the government is looking for foreign direct investment (FDI) and capital from Brazil, China, India, Indonesia, Turkey and Gulf Arab States.

President Bouterse is a keen supporter of South American integration though the multi-lateral organisation, UNASUR. He has also given his ambassador to Indonesia, Amina Pardi the mandate to sell Suriname as the bridge between ASEAN and CARICOM.

Suriname has joined the Islamic Development Bank (IsDB) and the Bouterse pro- Arab government has reactivated ties with the Middle East. The IsDB, the OIC’s financing branch, is one of many institutions that could provide financing for several government programs, said minister of foreign affairs, Winston Lackin. “We believe this organization is an important one, taking into consideration the resources which are available through the IsDB to finance our programs and projects,” the cabinet minister added.

On the tourism front, this sector is on the rise. The steady flow of Euro-travelers from French Guiana has the tourism industry there in Suriname learning French. These are not expatriates. While the majority of tourists from Europe are expatiates from Holland, there are many non-Surinamers from Holland visiting as well.

And while Guyana struggles to bring Marriott to Georgetown, Paramaribo has already attracted Best Western, Marriott and Wyndham hotels. These were all brought here by the local private sector. As well, the local Torarica and Kransnapolsky group of hotels have expanded in Paramaribo and in the interior to tap the lucrative eco-tourism market. There is much more work to be done to market this product and to reduce airfares.

August 18, 2011

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