Cuba's declining trade betrays depth of its crisis

By Marc Frank:

HAVANA, Cuba (Reuters) -- Business between Cuba and four of its top five trading partners has declined sharply this year in a reflection of the communist-led Caribbean island's deep economic crisis, trade reports from the countries said.

Reductions in exports to and imports from Cuba ranged from 20 percent to as high as 50 percent, according to the reports from China, Spain, Canada and the United States. In descending order, they are the top traders with Cuba after Venezuela.

Numbers were not available for Venezuela, which is the leading economic and political ally of Cuba's government and supplies the island with oil.

China, Cuba's second trading partner, reported that imports from the island fell 48.2percent to $368 million through August, while Chinese exports to Cuba dropped 12.7 percent to $641.9 million.

Spain, tied with Canada as the island's third biggest trading partner, said its exports to Cuba declined 43 percent to $394 million through July, while imports were down 24 percent to $91 million.

Canada, which did $1.4 billion in trade with Cuba last year, said exports plummeted 52.4 percent to $242 million through August and imports fell 55.7 percent to $283 million.

The United States, which is Cuba's fifth trading partner despite its 47-year-old trade embargo against the island, said sales to Cuba totaled $383.8 million through August, down 23 percent.

Most US exports to Cuba are agricultural products, which are permitted under an exemption to the embargo.

While no information was available from Venezuela, Cuba's close socialist ally, it is likely the value of its exports to the island -- mostly oil -- will fall dramatically from 2008's $5.3 billion due to lower oil prices.

Cuba's economy has been spiraling downward since last year when three damaging hurricanes raked the country, followed by the onset of the global financial crisis.

The combination of rising prices for its imports and declining value of its key exports also depleted cash reserves to the point that the government froze the local accounts of hundreds of foreign businesses and stopped or slowed payments to many foreign creditors.

Cuba's government has forecast a decline of $500 million in export revenues this year and slashed imports by 22.5 percent.

The island's trade deficit soared to $11.4 billion in 2008, up 65 percent, according to the National Statistics Office.

October 21, 2009

caribbeannetnews

Bahamas Caribbean Blog International

Region´s lowest paid: Afro-descendents, indigenous and women

Latin America´s steady economic growth over the past nine years has not been enough to end income disparities for women, indigenous groups and Afro-descendants, according to a new study by the Inter-American Development Bank.

In the paper, “New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America,” economists evaluated household data from 18 Latin American countries – Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela – and found “women and ethnic minorities are clearly at a disadvantage.”

“Females in the region earn less than their male counterparts even though they are more educated,” the study said. “A simple comparison of average wages indicates that men earn 10 percent more than women. But once economists compare males and females with the same age and level of education, the wage gap between men and women is 17 percent.”.

In the seven countries that had data based on ethnicity — Bolivia, Brazil, Chile, Ecuador, Guatemala, Paraguay and Peru — research showed that the indigenous and Afro-descendant population earned on average, 28 percent less than the white population.

“Polices aimed at reducing these inequalities are still lacking. This is more than just a moral necessity. It is an essential strategy to reduce poverty in the region,” said economist Hugo Ñopo, the lead author of the study.

In the seminar “Afro-descendant women and Latin American Culture: Identity and Development” held in Montevideo, Uruguay in late September, found that extreme poverty in indigenous and Afro-descendent populations in the region is double that of the rest of the population.

Rebeca Grynspan, Latin America director for the United Nations Development Program said that statistics on the Afro-descendant population “hide more than they show” because they are pure averages. She said inequality is also the result of present-day discrimination, not only past discrimination.

Latinamerica Press

Bahamas Caribbean Blog International

Bolivarian Alliance for the Americas (ALBA) to use virtual SUCRE from next year

COCHABAMBA, Bolivia, October 19, 2009 - Member nations of Bolivarian Alliance for the Americas (ALBA) have agreed to implement a single currency to be used among themselves from next year, but the three Eastern Caribbean countries who are part of the nine-member Venezuela-led bloc say they won't be a part - a position that was accepted by a weekend summit.

The decision to go ahead with the use of the use of the virtual Single Regional Payment Compensation System (SUCRE) as a replacement for the US dollar in commercial exchanges among members was endorsed by the Prime Ministers of Antigua and Barbuda, St Vincent and the Grenadines and Dominica at ALBA's Seventh Summit in Bolivia.

But according to media reports, the three who already use the EC dollar under the Eastern Caribbean Currency Union, said they would not be participating in the proposed currency at this time.

The intention is to have the SUCRE replace the US dollar as the main trading currency among ALBA members.

There will be no bills issued in SUCRE. It will instead be used for electronic payment, and each country can withdraw the equivalent in its own currency.

A multidisciplinary team from the ALBA nations will begin technical operations for the SUCRE's implementation on January 1st next year.

In addition to the Eastern Caribbean nations, ALBA includes Bolivia, Cuba, Ecuador, Honduras, Nicaragua, and, of course, Venezuela.

Their summit ended with resolute support for ousted Honduran president Manuel Zelaya and opposition to US military bases in Latin America.

According to a statement, the leaders and representatives from the nine participating countries called for the reinstatement of Zelaya, and asserted that they would reject any government elected by the presidential election next month.

The summit discussed a draft declaration to put in place policies and procedures to protect the country and analysed the issue of the expansion of US military bases in Colombia.

caribbean360

Bahamas caribbean Blog International

Obama's Nobel Prize: The stupidity of political bigotry

By Sir Ronald Sanders:


Barack Obama did not ask for the Nobel Peace Prize and he was probably the most shocked person to learn that it had been awarded to him.

He certainly made no secret of his surprise at the news. And, he was dignified and humble in publicly saying that he didn't feel that he deserved to be "in the company of so many of the transformative figures who've been honoured by this prize - men and women who've inspired me and inspired the entire world through their courageous pursuit of peace".

In selecting Obama, the Nobel Prize Committee said: "Only very rarely has a person to the same extent as Obama captured the world's attention and given its people hope for a better future". Few, except Obama's bitterest antagonists in the US Republican Party and right wing groups would deny that statement.

The Committee also justified awarding the Prize to Obama by saying it "attached special importance to Obama's vision of, and work for, a world without nuclear weapons". That, too, is true. Obama could not be any clearer on this issue.

I part company with the Committee in its prospective explanation that "as President (Obama) created a new climate in international politics. Multilateral diplomacy has regained a central position, with emphasis on the role that the United Nations and other international institutions can play". This latter assertion is left to be seen.

From a Caribbean standpoint, his desire for multilateral diplomacy - rather than the enforcement of a US position - is yet to be tested and will be judged on the readiness of his administration to include Caribbean governments directly in: addressing the economic development needs of the area through bilateral assistance and the mobilization of resources from the international financial institutions such as the IMF and World Bank; reviewing US policy on the deportation of criminals; reassessing and re-modeling the anti-drug trafficking programme in the area; and fashioning machinery that will allow Caribbean financial services to continue to compete in the global market place, particularly in relation to US businesses. On this, judgment of Obama's willingness to engage even the smallest of nations in multilateral decision-making has to be withheld.

But, whatever reservations may be harboured by non-Americans about the early award of the Peace Prize to Obama, two things cannot be denied. First, the Nobel Prize Committee is right in its assessment that Obama has captured the world's attention and given people of many nations cause to hope for a better future. And, second, he has been awarded the prize without seeking it.

In this regard, Barack Obama is far above reproach. His declaration that he did not feel he deserved to be in the company of the notable persons who preceded him also marked him as a special human being.

Every citizen of the United States of America should have rejoiced in the selection of one of their own for the Prize, especially coming after a period in which its government's policies and practices estranged the US from most of the rest of the world and created deep resentment of Americans as a nation. Americans of every stripe should have been delighted that their country had returned to a place of global honour.

And, it is worth saying that while the period before Obama was particularly awful under the administration of George W Bush, the previous Bill Clinton government was not without its flaws.

Any who would question my observation of the Clinton government should look at the number of routine air strikes in Afghanistan that killed many innocent people and spurred deep resentment.

For the Caribbean, the dislocation of banana farmers from their preferential market in the European Union was a direct result of the Clinton administration's decision to act in the World Trade Organization for US multinational companies that were banana plantation owners in Latin America as well as financial contributors to the Clinton presidential campaign. It was also under the Clinton administration that the US took a hawkish position in the Organization for Economic Cooperation and Development (OECD) that blacklisted several Caribbean jurisdictions over financial services. Many never recovered.

There is no doubt that no one person in US history has done more to improve global attitudes to the US than Barack Obama. The American people purged themselves when the majority of them elected him President for the content of his character above the colour of his skin, and for recognizing that he had a quality in his reasoning and his aspirations that was inspiring and believable.

But, instead of applauding Obama's appreciation by a prestigious body that has honoured human achievement and ambition for over a century, Republicans and right-wing groups in the United States denigrated it.

Fox News called the Nobel Prize "tainted" and one commentator wallowed in the gutter to ask if the Prize Committee was pursuing "a policy of affirmative action" - in other words Obama got the Prize because he is black. The ridiculousness of the last comment is evidenced by the people who have won the Peace Prize in modern times. For the most part, they are not white and at least three of them are black - Nelson Mandela, Desmond Tutu and Martin Luther King.

These same groups cheered, celebrated, and rejoiced when their own country lost its bid to host the 2016 Olympics simply because Obama joined the effort to convince the Olympic Committee to choose Chicago. How sick is that?

As a non-American, wary of the tendency for big powers to overlook the human value of small countries and their tendency to marginalise weak nations in pursuit of their own interests, I have to hope that, in awarding the Nobel Peace Prize to Obama so early in his Presidency, the objective of the Committee was to hold him to the values that he has espoused and encourage him to live up to them.

But, those Americans who maligned this unsought honour to one of their own should be ashamed of their deplorable behaviour. The awful spectacle to the world of their bigotry on this particular issue lost them respect and was nothing short of stupid.

caribbean360

Bahamas Caribbean Blog International

The free trade what???

By David Roberts:


So what is the Barack Obama administration's strategic plan with respect to Latin America? It's tempting to conclude it simply doesn't have one, at least at the moment. From a political perspective, the man who should be behind policy towards the region, Arturo Valenzuela, hasn't even taken up his post yet, nine months into the administration, as his nomination as assistant secretary of state for Western Hemisphere affairs has been blocked by Republican senators led by Jim DeMint in protest of Obama's stance on the Honduran coup. The irony is, of course, that Obama doesn't really have a policy on Honduras either, being mildly critical of both elected President Manuel Zelaya and interim leader Roberto Micheletti, but clearly preferring not to get too involved.

And apart from a lot of pleasantries about there being no senior or junior partners in Washington's relationship with Latin America, so far Obama himself has shown scant interest in his southern neighbors. He's only set foot in Latin America once since taking office - a very brief visit to Mexico in April while on his way to the fifth Summit of the Americas in Port of Spain - and has generally adopted a "let's be nice to everyone and sit on the fence" approach, even with regards to Hugo Chávez & Co.

But rather than ask what the strategic plan on Latin America is, maybe first we should ask whether the Obama government needs a plan at all? If his policy is going to be what we've seen so far, perhaps not, but with respect to trade at least, he should have one, as the region needs it. Yet, here again there's not much cooking. While visiting Chile last week, Obama's commerce secretary Gary Locke made it pretty clear that we shouldn't expect much in the way of more free trade agreements with Latin American countries, let alone deals on a more regional basis. Asked about the prospects for ratifying the FTA reached under George W Bush with Colombia, Locke declined to give any indication of whether or when it would get the nod from Capitol Hill, saying the priorities for the Obama administration in terms of passing legislation are healthcare and energy.

That's perhaps not surprising, considering the strong opposition to free trade in the US congress, mainly among Democrats like Obama (many of whom prefer protectionism), the lack of the fast track authority for ratifying deals and the current economic climate. But what was perhaps surprising was that Locke, when asked about the topic by a reporter, obviously was not even aware of past attempts - led by US governments - to create the Free Trade Area of the Americas (FTAA), which was supposed to be the free trade bloc par excellence, from Alaska to Tierra del Fuego (conveniently excluding Cuba) and be in place first by 2000 (according to George Bush Sr) and then by 2005.

Indeed, the Summits of the Americas were in a sense born out of attempts to maintain the moribund process of FTAA and continental integration alive, a process that fell apart amid unseemly squabbling between free traders and Chávez's Alba bloc of nations over everything from intellectual property to US farm subsidies, with Bolivia's Evo Morales calling the FTAA "an agreement to legalize the colonization of the Americas."

October 18, 2009

bnamericas

Bahamas Blog Bahamas

A Nobel Prize for Evo Morales

Reflections of Fidel
A Nobel Prize for Evo
(Taken from CubaDebate)

IF Obama was awarded the Prize for winning the elections in a racist society despite being African-American, then Evo deserves it for winning in his country despite being an indigenous man, and moreover for keeping his promises.

It was the first time in the two countries that someone from each of their respective ethnic groups became president.

More than once, I noted that Obama was an intelligent, educated man in a social and political system in which he believes. He aspires to extend health services to almost 50 million U.S. people, to pull the economy out of the profound crisis it is experiencing, and to improve the image of the United States, deteriorated due to its genocidal wars and torture. He does not conceive of or desire, nor can he change, his country’s political and economic system.

The Nobel Peace Prize has been awarded to three U.S. presidents, a former president and a presidential candidate.

The first was Theodore Roosevelt, elected in 1901, the man of the Rough Riders that landed their riders – without their horses -- in Cuba for the U.S. intervention in 1898 to prevent our country’s independence.

The second was Thomas Woodrow Wilson, who took the United States into the first war to divvy up the world. In the Treaty of Versailles, he imposed such harsh conditions on defeated Germany, that it laid the foundations for the emergence of fascism and the breakout of World War II.

The third is Barack Obama.

Carter was the former president who, several years after ending his mandate, was awarded the Nobel Prize. Without a doubt, one of the few presidents of that country incapable of ordering the assassination of an adversary, as others did; he returned the Canal to Panama, created the U.S. Interests Section in Havana, and avoided falling into large budget deficits or squandering money for the benefit of the military-industrial complex like Reagan did.

The candidate was Al Gore when he was already vice president, the U.S. politician who knew the most about the terrible consequences of climate change. He was the victim of electoral fraud when he was a presidential candidate and had victory snatched away from him by W. Bush.

Opinions about the awarding of this prize have been very much divided. Many are based on ethical concepts or reflect evident contradictions in the surprising decision.

They would have preferred that prize to be the fruit of a task fulfilled. The Nobel Peace Prize is not always awarded to people who deserve that distinction. Sometimes individuals have received it who are resentful, arrogant or even worse. Lech Walesa, upon hearing the news, said disdainfully, "Who, Obama? It’s too fast. He hasn’t had time to do anything."

In our press and on CubaDebate, honest and revolutionary comrades have been critical. One of them said, "In the same week that Obama was awarded the Nobel Peace Prize, the U.S. Senate passed the largest military budget in history: $626 billion". During the television newscast, another journalist commented, "What has Obama done to achieve such a distinction?" Others asked, "And what about the war in Afghanistan and the increase in bombings?" Those are viewpoints based on reality.

In Rome, the filmmaker Michael Moore made a lapidary statement: "Congratulations, President Obama, on the Nobel Peace Prize; now, please, earn it."

I am sure that Obama would agree with Moore’s statement. He possesses sufficient intelligence to understand the circumstances surrounding the case. He knows that he has not yet earned that prize. That morning, he stated, "I do not feel that I deserve to be in the company of so many of the transformative figures who have been honored by this prize."

It is said that there are five members on the famous committee that awards the Nobel Peace Prize, all of them members of the Swedish Parliament. A spokesperson said that it was unanimous. One question fits here: did they or did they not consult the winner? Can a decision of this type be made without first notifying the winning individual? This cannot be judged morally in the same way if the person knew or did not know beforehand about the awarding of the prize. It is also fitting to affirm that about those who decided to award it to him.

Perhaps it is necessary to create a Nobel Prize for Transparency.

Bolivia has major gas and oil deposits and holds the largest known reserves of lithium, a mineral greatly needed in our era for storing and using energy.

Evo Morales, a very poor indigenous farmer, traveled throughout the Andes, together with his father, before he was six years old, shepherding the llamas of an indigenous group. They led them for 15 days to reach the market where they sold them to buy food for the community. Responding to a question of mine about that unique experience, Evo told me that at the time, "they stayed in the 1,000-star hotel," a beautiful way of referring to the clear skies of the mountains where telescopes are sometimes placed.

During those hard years of his childhood, the alternative for the farmers in the community where he was born was to cut sugar cane in the Argentine province of Jujuy, where part of the Aymara community sometimes took refuge during the sugar cane harvest.

Not very far from La Higuera, where Che, wounded and disarmed, was murdered on October 9, 1967, was Evo, who was born on the 26th of that same month in 1959, not yet 8 years old. He learned to read and write in Spanish, walking to a little public school five kilometers from the hut where, in a rustic room, he lived with his brothers and sisters and parents.

During his eventful childhood, wherever there was a teacher, Evo was there. From his race, he acquired three ethical principles: not to lie, not to steal, and not to be weak.

When he was 13, his father permitted him to move to San Pedro de Oruro to go to high school. One of his biographers tells how he was better in geography, history and philosophy than in physics and mathematics. The most important thing is that Evo, to pay for his studies, would wake up at 2 a.m. to work as a baker, construction worker, or in other physical labor. He attended classes in the afternoon. His classmates admired him and helped him. From the very start, he learned to play wind instruments and was a trumpet player in a prestigious band in Oruro.

When he was still an adolescent, he organized his community’s soccer team, and was its captain.

Access to the university was not within his reach, being an Aymara Indian and poor.

After his last year of high school, he served his mandatory military term and returned to his community, located high up in the mountains. Poverty and natural disasters forced his family to migrate to the subtropical region of El Chapare, where they were able to obtain a small land parcel. His father died in 1983 when he was 23 years old. He worked hard on the land, but he was a born fighter; he organized all of the workers, created labor unions and with them filled the vacuums to which that the state was not paying attention.

The conditions for a social revolution in Bolivia had been created over the last 50 years. On April 9, 1952, before the start of our armed struggle, the revolution broke out in that country with the Nationalist Revolutionary Movement of Víctor Paz Estenssoro. The revolutionary miners defeated the forces of repression and the MNR took power.

Revolutionary objectives in Bolivia were far from being met. In 1956, according to well-informed people, the process began to fall apart. On January 1, 1959, the Revolution was victorious in Cuba. Three years later, in January 1962, our country was expelled from the OAS. Bolivia abstained. Later, all of the governments except for Mexico broke off relations with Cuba.

Divisions in the international revolutionary movement made themselves felt in Bolivia. Still to come were 40 years more of blockading Cuba, neoliberalism and its disastrous consequences, The Bolivarian Revolution in Venezuela and the ALBA; still to come, above all, were Evo and the MAS in Bolivia.

It would take to long to sum up that rich history on a few pages.

All I will say is that Evo was able to overcome the terrible and slanderous campaigns of imperialism, its coups d’état and interference in internal affairs, and to defend Bolivia’s sovereignty and the right of its millenary people to have respect for their customs. "Coca is not cocaine," he exclaimed to the largest marijuana producer and largest consumer of drugs in the world, whose market has maintained the organized crime that costs thousands of lives every year in Mexico. Two of the countries where the yanki troops and their military bases are located are the largest producers of drugs on the planet.

Bolivia, Venezuela and Ecuador are not falling into the deadly trap of drug trafficking; they are revolutionary countries that, like Cuba, are members of the ALBA. They know what they can and should do to bring health, education and well-being to their peoples. They do not need foreign troops to combat drug trafficking.

Bolivia is going forward with a program of its dreams under the leadership of an Aymara president who has his people’s support.

In less than three years, he eradicated illiteracy: 824,101 Bolivians learned to read and write; 24,699 did so in the Aymara language and 13,599 in Quechua; it is the third country to be free of illiteracy after Cuba and Venezuela.

Free medical attention is provided to millions of people who had never received it. It is one of seven countries in the world that in the last five years has most reduced its infant mortality rate, with the possibility of reaching the Millennium Goals before 2015, and it is the same case with maternal deaths, in a similar proportion. Restorative eye surgery has been performed on 454,161 people, 75,974 of them Brazilians, Argentines, Peruvians and Paraguayans.

An ambitious social program has been established in Bolivia: all of the children in public schools from first to eighth grade receive an annual donation to help pay for their school materials, benefiting almost two million students.

More than 700,000 people over the age of 60 receive a voucher for the equivalent of some $342 annually.

All pregnant women and children under the age of 2 receive assistance of approximately $257.

Bolivia, one of the poorest countries in the hemisphere, has placed under state control the country’s principal energy and mineral resources, respecting and compensating each one of the interests affected. It marches along carefully, because it does not wish to retreat a single step. Its hard currency reserves have been growing. Evo has no less than three times what the country had at the beginning of his administration. It is one of the countries that makes the best use of foreign cooperation and firmly defends the environment.

In a very short time, he has been able to establish the Biometric Electoral Register, and approximately 4.7 million voters have been registered, almost one million more than on the last electoral register, which in January 2009 had 3.8 million.

On December 6, there will be elections. It is a sure thing that the people’s support for their president will grow. Nothing has been able to stop his growing prestige and popularity.

Why isn’t he awarded the Nobel Peace Prize?

I understand his big disadvantage: he is not a U.S. president.



Fidel Castro Ruz
October 15, 2009
4:25 p.m.

Translated by Granma International

granma.cu

Bahamas Blog Bahamas

Bahamas Prime Minister Hubert Ingraham: Minuscule tax benefit from huge bank profits

By KRYSTEL ROLLE ~ Guardian Staff Reporter ~ krystel@nasguard.com:

Prime Minister Hubert Ingraham yesterday expressed concern that some of the banks in The Bahamas are able to take large profits out of the country while paying very little taxes.

"I find it very distasteful, and I am very annoyed by it quite frankly, angered would be a better word, that some of the banks in The Bahamas are able to repatriate huge profits from The Bahamas and pay minuscule sums," Ingraham said during debate in the House of Assembly yesterday on a bill to amend the Criminal Justice International Co-operation Act in the House of Assembly on Thursday. The bill, which was passed yesterday, seeks to allow The Bahamas to provide assistance to foreign jurisdictions on fiscal criminal tax matters.

"And if there was a (corporation) tax on banks in The Bahamas, a low tax of ten percent or five percent, then they'd be able to deduct that amount from the tax that they'd pay back in Canada or elsewhere, they'd pay it anyhow and leave the money here," Ingraham said.

He added that the government does not have a problem entering into double taxation agreements.

Those agreements are designed to protect against the risk of an individual or a corporate entity being taxed twice where the same income is taxable in two states.

However, he said the Bahamian tax system is not as broad as countries such as Barbados to take account of various things that are normally taxed in that country.

"Banks in The Bahamas are able to make profits here in this country, [and] send it to their operations in Barbados. Barbados gets its share of taxes, then they pay their home country and we get pittances," he said.

In addition to the Criminal Justice International Co-operation Act, three other bills were passed yesterday.

The House of Assembly also passed a bill to amend the Magistrates Act, which seeks to amend the definition of "circuit justice" in section 2 of the act.

The Merchant Shipping Oil Pollution Amendment Bill was also passed. It seeks to regularize the shipping industry.

Finally, the Bill to Amend the Registrar General Act, which seeks to increase the number of assistant registrar generals under the act, was passed. It also seeks to repeal a section of the act to remove the provision for the registrar general to be a magistrate, ex officio.


October 16, 2009

thenassauguardian

Bahamas Caribbean Blog International