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Wednesday, September 28, 2011
Bahamas: Not only does the Privy Council make available to Bahamians some of the world's most able and experienced judges, it does so at no cost
Nassau, The Bahamas
IN MAY last year the Arbitration Act and the Arbitration (Foreign Arbitral Awards) Act was introduced in an attempt to put the Bahamas in a competitive position for recognition as an international business centre.
The hope was to establish the Bahamas as a dispute resolution centre within five years to settle -- outside of the court system -- both domestic and international matters.
And so now is not the time to even consider abolishing the Judicial Committee of the Privy Council --our highest court of appeal, sitting in London -- which is one institution that -- in addition to the proposed arbitration services -- gives an aura of stability to our local judicial system. If the Bahamas is to be considered a stable jurisdiction to attract international business, the Privy Council is one institution that grounds us in legitimacy. As one Bahamian lawyer put it: "It is one of the most respected courts in the world and brings international currency to our court system."
Together the five Law Lords have more than 100 years of legal experience to draw on. In addition -- removed from local politics, and petty prejudices -- litigants have confidence that their disputes are being treated objectively. This independence and removal from local contamination certainly inspires respect in the system, something that our own courts are lacking.
One would be surprised at what weight the existence of the Privy Council carries when an international business is being considered for relocation to the Bahamas. Businesses not only want a stable government, good communications, and efficient staff, but a sound judicial system. To business leaders this is of paramount importance.
Our local courts are made to look impotent when adversaries can so play the system that one side in the dispute cannot get a hearing to present his complaint.
In a recent international case, a lawyer pointed to what appears to be developing into a serious case of "judge shopping". It would seem that the case can't get off the ground because the judges are being toppled like nine pins. Already three judges have stepped down from the case, and a fourth has been called on recuse himself -- soon there will be no judges left to try the case. From an outsider looking in, it appears that our court system is being made to look impotently foolish.
Of course, there is still the Privy Council. When the local courts fail, the respected arbiter of justice stands solid to pick up the pieces. Bahamians would be foolish to agitate for its removal.
Not only does the Privy Council make available to Bahamians some of the world's most able and experienced judges, it does so at no cost.
In December 2006, the Judicial Committee made history when for the first time in over 170 years it left its permanent London home to hold a five-day sitting in the Bahamas. The five Law Lords were here again for a sitting in 2007 and 2009.
There are those in the legal fraternity who have suggested that the Bahamas give up the Privy Council and throw its lot in with the recently established Caribbean Court of Justice. Established in 2001 and based in Port of Spain, Trinidad and Tobago, this court is in its embryonic stage. It has not been established long enough to have a track record or attract the international recognition that the Privy Council has had for hundreds of years.
If the only reason for opting for this court is to hope that our "Caribbean brothers" will see eye-to-eye with us on capital punishment is indeed to play Russian roulette with this country's future. As explained in this column yesterday, many Caribbean lawyers are also moving away from capital punishment in favour of life imprisonment.
Of course, the weightiest consideration of all is the cost. The Bahamas would have to make a financial contribution to be able to use the services of the Caribbean court.
And the creation of a local court to replace the Privy Council cannot even be considered. It would be financially prohibitive. Already we do not have enough lawyers to staff our present legal institutions.
The Attorney General's office, which is inundated with cases going back years, is seriously understaffed. The courts cannot keep up with the work load that they already have. A country as small as the Bahamas would never be able to pay what would be required to attract our best lawyers from their private practices to sit on a high court bench. And even if we could there are not enough of them to match the calibre and resources of the Law Lords of London.
It is now time for Bahamians to appreciate what they have and start building on already well laid foundations.
September 28, 2011
tribune242 editorial
Monday, September 26, 2011
Bahamas: Despite escalating crime, career criminals are being released on bail by the courts - many of them contributing to the rising crime figures by retaliatory murders
tribune242 editorial
Nassau, The Bahamas
EVERYONE in authority has been creeping around on cats paws evading a subject that is agitating Bahamians. Despite escalating crime, career criminals are being released on bail by the courts - many of them contributing to the rising crime figures by retaliatory murders.
Finally, National Security Minister Tommy Turnquest had the guts to call a spade a spade. Speaking at a West Nassau Rotary meeting on Thursday, Mr Turnquest said, while not wanting to encroach on the independence of the judicial system, it was his opinion that some judges were far too "liberal" when it came to granting bail to career criminals and those accused of serious offences. He believed that this practice contributed "greatly" to the country's escalating crime problem. He is correct in this belief and he has the support of both the police and the public.
How can any government control a crime situation when as quickly as an accused person with a violent criminal record is taken before the courts he is given bail and returned to the streets looking for trouble -- and, in some cases, the elimination of witnesses who might testify against him.
Pushed under questioning about bail by a Tribune reporter, Mr Turnquest was provoked into uttering a statement that he later regretted. "Liberally they have administered that -- it concerns me greatly -- if we had a system as they do in New York, where judges are elected, many of them would have been chased out of town."
Although he retracted these words, Bahamians would not have done so -- they would have agreed with him.
We also agree with Chief Justice Sir Michael Barnett that these particular words were "unfortunate."
"I'm always concerned," said Sir Michael, "when people attack the judiciary because persons have to be careful in what they say, so as not to undermine the public confidence in those of us who serve in judicial office."
We also agree with this statement, but only in so far as the judiciary understands that it too has to be responsible in its judgments to protect a community in crisis. We agree with the community that many judicial officers have failed them. The courts are not responsible for the country's crime -- there are many causes going back many years --however, no one can deny that there are times when the courts have been part of the problem. It is true that the judiciary should not be criticised, but on the other hand they should be careful not to give legitimate cause for criticism. The legal fraternity should certainly understand that responsibility is not one-sided.
However, what is most unfortunate in all of this is that a serious matter has become political. This certainly does not help.
In criticising Mr Turnquest in Friday's Tribune the PLP statement said: "By its own yardstick, the FNM has compromised the independence of the judiciary by failing in the past two years to review judicial salaries as is required by the Judges Remuneration and Pensions Act."
Is the PLP perchance insinuating that until judges' salaries are raised they are not going to perform satisfactorily? If so, this statement is the highest insult that can be made to the Bench.
What is interesting is that when the PLP was the government, its attorney general and minister of legal affairs was making the same complaint as Mr Turnquest.
This is what Minister of Legal Affairs Allyson Maynard Gibson in her fight for "swift justice" had to say on May 19, 2006:
"Today I reiterate that the Swift Justice initiative, the assurance that offenders and would be offenders will be swiftly caught, swiftly tried and swiftly punished, will greatly contribute to breaking the back of crime and the fear of crime.
"Law-abiding people in The Bahamas have every right to expect that they will be safe in their homes and as they go from place to place on our streets."
And then she said: "The Commissioner of Police has already indicated his concern about the disturbing trend of serious offences being committed while people are out on bail.
"In conversations with Magistrates, those before whom most Bail applications are made, they said they are often shocked to see how many people whose request for bail was denied by them (Magistrates) are back before them requesting bail for another offence committed while out on bail. These people had gone to the Supreme Court and been granted bail."
Here we have lower courts pointing the finger of blame at a higher court. We don't recall hearing at that time that Mrs Gibson was undermining the court system by her revelations. Why now that the tables of government have been turned?
Mrs Gibson then gave examples of persons on bail who had gone on to commit other crimes while awaiting their day in court. She also shared statistics on crimes using firearms.
As a result she proposed an amendment to the Criminal Law Miscellaneous (Amendment) Bill, 2006, to take care of the magistrates' complaints against Supreme Court judges. She proposed that there be a "new section 8A to provide for a right of appeal to the Court of Appeal by the prosecution or a person (accused or convicted), as the case may be where bail has been granted or refused to that person by the Supreme Court or where an application by the prosecution to revoke bail has been denied.
"This right of appeal by the prosecution," she said, "is particularly important as statistics have shown that persons, while on bail take not only the opportunity to abscond but more importantly to commit further crimes. The police have indicated that persons out on bail sometimes interfere with witnesses either by themselves or through their acquaintances."
This was the opinion of the PLP when it was the government. This is also the position of the Ingraham government. The difference is that Mr Turnquest had the temerity to express the problem in blunt terms on Thursday.
Prime Minister Ingraham will now address the issue in a state broadcast on Monday, October 3.
September 26, 2011
tribune242 editorial
Sunday, September 25, 2011
PORT-AU-PRINCE, Haiti: Amnesty International demands justice for Duvalier “victims”
PORT-AU-PRINCE, Haiti, Friday September 23, 2011 – Amnesty International says political will is needed from Haiti's new administration to bring former President Jean-Claude "Baby Doc" Duvalier to justice for human rights abuses committed under his regime.
Special Advisor Javier Zúñiga told a media conference here on Thursday that there is sufficient evidence to prosecute Duvalier for the widespread arbitrary detentions, torture, deaths in custody, killings and disappearances that took place during his 1971 and 1986 rule.
As the report was being released at a media conference, dozens of pro-Duvalier supporters marched in, accusing the organization of divisiveness and lacking credibility.
The human rights group had provided Port-au-Prince's Public Prosecutor with documented evidence of human rights abuses committed during the former president’s rule, following his return to Haiti in January this year, after 25 years in exile in France.
Duvalier has been indicted by Haitian authorities for embezzlement, theft of public funds and crimes against humanity committed during his presidency.
"The cases of human rights abuses we documented in Haiti are likely to be only a small proportion of what really happened during Duvalier's rule. We will probably never know the true extent of the horror, but carrying out effective investigations will go a long way towards delivering justice," Zúñiga stated.
"Investigating crimes against humanity after Duvalier's return is not only the first step towards justice and reparation for the victims of human rights violations, but it is also a historical opportunity to start building a Haitian state that once and for all protects and upholds human rights in Haiti."
caribbean360
Saturday, September 24, 2011
JAMAICAN CULTURE: Lost in translation - Is the Patois Bible a waste?
By Franklin Johnston
With every new rendition of the Bible it is diluted. What did the KJV's "thou shalt not covet thy neighbour's ass" mean 2,500 years ago? What's my neighbour's ass now? car, donkey, meat and transport in one? Did this apply to all or just those with no ass?
Translation across centuries, cultures and languages means much is lost and things assumed based on what we now know. Abrahamic faiths — Jewish, Christian, Muslim, Rastafari -- all lose authenticity as they lose touch with the Torah. We have Christianity in all flavours to suit every taste and some are the ego trips; emotional excrescences of men who do not know the roots of the Church and don't care as long as they make money. The Old and New Testament were translated from Hebrew and Greek many times. With those rendered from English versions new errors are made and old errors perpetuated. Much is lost in translation.
The Bible Society of Jamaica translated the gospel of Luke in patois but not from Greek. Millions were spent, and to be fair and open, they should name the translators, sources and all involved. The Bible is our heritage, not words on paper for academics, patois actors and playwrights to render as they like. Translators are scholars of the original languages and manuscripts, the new language, comparative exegesis, and the task calls for a sense of the spiritual, history, meditation and insight. We need assurance of the integrity of the process!
The book is titled Jiizas di Buk We Luuk Rait bout Im; to us The Book of Luke. Patois is our heritage, culture; rich, colourful, fluid; ours to use and change, not by linguists who rule how it must be spoken. No patois police! Let patois be free wherever it may be! I bought a copy in Hagley Park Plaza.
I was told it was for the poor man who speaks patios only, yet costs a day's pay! Why would a poor man buy a Patois Bible which he can't read when he can get an English Bible free; he can't read it either? The cover and paper are flimsy, but we love a well bound Bible in the front room to write our births, deaths and "run duppy".
The cover picture is patronising; better if it were a Clovis cartoon! The section in English titled "How to read Jamaican" deals with "consonants, vowels and symbols". So a man illiterate in English buys a book in patois, but as he is illiterate in patois too, the writers put the rules to read it in English, Wow!
This Patois looks like Dutch or Afrikaans and has nothing in common with Miss Lou's patois which is what we speak. Check these stanzas:
"Wha wrong wid Mary dry-foot bwoy?
Dem gal got him fe mock,
An when me meet him tarra night
De bwoy gi me a shock!
Me tel him seh him auntie an
Him cousin dem sen howdy
An ask him how him getting awn.
Him seh, 'Oh, jolley, jolley!"
— Extract from "Dry-foot bwoy" by Louise Bennett.
Now compare it with an extract from Jiizas de Buk we Luuk rait bout Im:
"1 Tiyafilas Sa, Uol iip a piipl chrai fir ait dong di sitn dem wa apm mongks wi. Dem rait it dong siem wie ou dem ier it fram di piipl dem we did de de fram di staat, si di sitn dem wa apm an we priich di wod".
— Patois Bible St Luke Chapter 1, verses 1-4. May 2010.
This can't be right! It looks like nothing we know. I will stick with Miss Lou!
FIELD WORK IN THE UK. I used a captive audience of Jamaicans and I also went to Brixton to accost some between NCB branch and the Post Office. I wore a suit with Her Majesty's ID on my chest. Many, relieved I was not Border Agency, co-operated fully. But this is informal and the experts must show us their work. Here's what some people said of "de Buk":
BRIXTON. I asked each person to read "de Buk" to me. Some said: "A wah dis? Me neva see nuttin laka dis" or "Oh this is the Patois Bible, I like it" or "A Rasta tings dis, lang time it fe cum!" Most could not read it and those who did read the instructions first and mouthed each word slowly. Most people liked the idea of the book and some asked for a copy.
CAPTIVE AUDIENCE. The illiterate ones couldn't read it. Some say "is Polish" as it looks like writing they see every day as they live with Russian, African etc. Some 80 per cent of the foreigners who speak English understand our patois. English speaking British illiterates could not read it though many use patois slang; a man with degrees read haltingly, said it used English phonetics and if I left the book he would master it in a week. Africans who spoke no English could not read it. One savvy Nigerian said the words were contractions, variations, broken English. I said it was an Akan or Twi based dialect. He said firmly "Then do not corrupt our languages further, give them a Bible in Akan!" I was quiet! A lady who translates patios says court officers understand our prisoners but details matter in Law and so "im did a badda, badda mi an mi get bex an juk juk im" she translated as " after much provocation by my girlfriend I lost my temper and stabbed her". She tells the Court the "im" is not a man and "badda, badda" is a repitition of the word "bother" which shows intense feeling and "juk juk" means multiple stab wounds. Sadly "Jiizas di buk" means nothing to these men!
The bible society has excellent motives but their "Jiizas buk" may undermine ancient churches, scholarship and mislead many. Jesus reasoned with scholars on faith and the Torah. Few apart from Jewish, Anglican, Catholic scholars can do this now. Many "faith entrepreneurs" can't read the founding articles of the faith. The unintended consequence of removing the Bible from a prayerful scholarly tradition is men now think they can do with it as they like. The "Church of Blessed Patois" coming soon to a community near you! Sadly the Patios Bible does not advance our patois, literacy or faith! Stay conscious my friend!
Mrs Enid Golding was a legend to those of us who did teaching practice and classroom observation in her school. In her day she was a reference point on "best practice" for UWI Prof Gordon Shirley. Heartfelt sympathy to PM Bruce, Trevor, Douglas and their families.
Dr Franklin Johnston is an international project manager with Teape-Johnston Consultants currently on assignment in the UK.
franklinjohnston@hotmail.com
September 23, 2011
Friday, September 23, 2011
Approximately 25 percent of the persons who have contracted HIV/AIDS in The Bahamas throughout the years have been Haitian nationals, says - director of The Bahamas National HIV/AIDS Centre, Dr. Perry Gomez
Gomez: 25% of HIV/AIDS cases are Haitians
By Royston Jones
Guardian Staff Reporter
royston@nasguard.com
Nassau, The Bahamas
Approximately 25 percent of the persons who have contracted HIV/AIDS in The Bahamas throughout the years have been Haitian nationals, according to director of the Bahamas National HIV/AIDS Centre, Dr. Perry Gomez.
“We know over the years that that population has contributed about 25 percent of the data,” he pointed out during an event at the U.S. Embassy, during which grants were awarded to the HIV/AIDS Centre and six other organizations involved in the HIV/AIDS fight. They were awarded grants that totalled over $48,000. The purpose of the grants is to promote HIV/AIDS prevention and reduce the stigma attached to those living with the disease, according to U.S. Ambassador to The Bahamas Nicole Avant.
Dr. Gomez further pointed out at the presentation that there are persons in the Haitian community, as well as the Bahamian community, who are not aware that they have contracted the disease. As a result they do not seek help or alternatively seek help too late.
"The point about this exercise is to increase the knowledge of the people in the community," said Gomez. "If they are familiar with what we are doing with our services, they will more readily present and come earlier, rather than coming in the 11th hour.”
The slogan 'Know Your Status' was chosen by the Bahamas National HIV/AIDS Centre because a person can be HIV positive for as long as 15 years and not be sick, whilst still potentially transmitting the disease, said Gomez. He added that the language barrier between English and Haitian creole speakers is believed to be another factor that contributes to persons, within the Haitian population in The Bahamas, avoiding HIV/AIDS testing.
“We [have been] trying to get more and more of our staff in the clinics to learn [Haitian] Creole over the years,” said Gomez.
The Ambassador's Fund for HIV/AIDS Prevention and the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) have partnered to make the grants possible. PEPFAR is a U.S. government initiative that annually awards small grants around the world in support of local projects that help to save the lives of those suffering from HIV/AIDS.
The other grant awardees include The Bahamas AIDS Foundation, Her Majesty's Prison, the Grand Bahamas Red Rose Ball Committee, the South Eleuthera Mission, Youth Ambassadors for Positive Living and Bahamas United Limited.
The Bahamas National HIV Centre plans to use the grant to establish a 'Train the Trainers' program, according to Gomez. The project aims to educate bi-lingual speakers within the Haitian community on HIV prevention, transmission and treatment so that they may teach others within their community.
The U.S. Embassy has partnered with all segments of Bahamian society to help increase testing and counseling for HIV, to improve HIV/AIDS data collection, to build capacity in delivering quality services and to raise awareness, according to Avant.
“We believe that the work supported by PEPFAR resources will result in a cumulative, positive and enduring impact on the national public health system by increasing health services for all Bahamians, especially those on the Family Islands,” said Avant. “This is a global fight and there is no retreat and no alternative, until we reach every person whose life has been touched by HIV and AIDS and stem the spread of the disease.”
The PEPFAR agreement will provide The Bahamas with more than $5 million in U.S. assistance over the next several years to support the efforts of HIV/AIDS prevention.
Sep 22, 2011
Thursday, September 22, 2011
The Bahamas police are doing their job, but the Bahamian courts are soft on law breakers
tribune242 editorial
Nassau, The Bahamas
AN EXASPERATED Police Commissioner yesterday called for stiffer penalties for law breakers.
He said that criminals were not taking the law seriously because punishments were too light. In other words criminals were just playing a catch-me-if-you can game with the police, while wreaking vengeance on society.
The Commissioner was asked by the press whether the police were doing enough to stop the bloodshed -- which with 100 murders made Bahamian history over the weekend. As we wrote this column last night a report flashed across our screen that two more persons- a man and a woman- had just been shot in Nassau Village. They were taken to hospital - the man in serious condition, the woman stable.
One could almost see the Commissioner biting his tongue at yesterday's conference as he tried to gingerly skirt the reporter's question.
He said police officers were arresting the suspects, but after a person was charged it was out of their hands and up to the courts. He said he did not want to speak on the issue in too much detail.
He might not want to elaborate on what is a sore point in police ranks, but we shall do it for him.
The answer simply put is: The police are doing their job, but the courts are not.
Let's look at a five-day period to give our readers some idea of what is happening.
Between July 12 and 17th this year 39 prisoners were released from HM Prison by the courts.
Of this number 22 of them were in prison on remand. The courts gave them bail and released them.
Of these, six were charged with murder and at least three of them went before the magistrate's court with a well established criminal record.
Also among the 22 released onto the streets within a five-day period were persons charged with attempted murder, conspiracy to murder, armed robbery, rape, housebreaking, possession of firearms and drugs, causing grievous harm, fraud and forgery. Many of them have prison records, most of them for violence. Four of them were fitted with electronic monitoring devices.
Examining their records it is obvious that they have been sent back into society without any hope of finding a job or earning an honest crust of bread to keep them alive until their court date. And so what do they do?
We leave it to our readers to answer that question. It is easy to connect the dots and understand what is happening in the country. Commissioner Greenslade has already connected the dots, but does not want to talk about the picture they present -- at least not in public.
In an England gone soft on law breakers, a sudden outbreak, mainly by youth, of rioting and destruction last month, quickly brought legislators to their senses. Vowing to stop the "slow-motion moral collapse" of his country, Prime Minister David Cameron demanded stiff penalties for law breakers. The courts immediately responded, so much so that the weak-hearted are sniffling that the law is going too far. But Cameron is taking no nonsense. He has vowed to introduce laws to "crack down on lawlessness and promote a responsible society."
He directed his cabinet to look for ways to combat a "broken society" in which "fathers had abdicated responsibility for their children, schools had given up on discipline and crimes had gone unpunished."
The courts' harsh sentences were intended to reflect the authorities' anger at the looting, burning and murder that raged through London and spread to other cities.
For example, a mother who was given a pair of shorts stolen by a rioter was jailed for five months, a student went to prison for six months for stealing a box of bottled water worth about $4, while a man was jailed for four years for posting a message on Facebook to encourage people to start a riot. Courts also remanded defendants in custody until their court hearing.
Mr Cameron was pleased that the courts had sent a tough message by stiff sentences. Across the country courts were working extra hours to deal with the offenders, which moved into the thousands.
Police Commissioner Greenslade wants sanctions tough enough to make persons afraid to carry a gun in this country because they would know that they would be removed from their family and friends for a very long time.
Since the courts don't seem inclined to step up to the plate, when the House of Assembly returns from its summer break on October 5 government plans to introduce a number of new Bills to prevent violent, repeat offenders from getting bail.
"We hope that we will provide some teeth, some additional resource, to keep these criminals behind bars," said National Security Minister Tommy Turnquest.
Some Bahamians are so agitated by the seeming indifference of the courts, that they are now suggesting that maybe there are those in the system who are trying to embarrass the government.
The situation is bad, but we hope that it is not that bad.
September 20, 2011
tribune242 editorial
Wednesday, September 21, 2011
Long-term Caribbean growth requires more than current China links
Robust growth over the past decade in Latin America and the Caribbean (LAC) has had one new, key driver: China. The region’s relationship with the Asian giant has proved to be a critical source of stability, both during the global economic crisis of two years ago, the greatest since the Great Depression, and even the current market turmoil that is rolling across Europe and the United States.
So far growth forecasts for LAC have remained positive between 3.5 and 4.5 percent for 2011 and 2012 and inflation rates are expected to stat between 6 and 7 percent this year. Perceptions of sovereign risk continue to be relatively low for the region. In fact, in an unprecedented development, markets now perceive that the sovereign debt default risk of several countries in LAC -- including Chile, Colombia, and Peru -- is lower than that of France.
While the consequences of the current global uncertainties are largely out of the region’s control, it is no time to remain idle. One central question for the region today is whether it can make the most of its relationship with China to turn its recent vigorous recovery into sustainable robust growth for the future. To better understand such prospects, the World Bank’s Chief Economist’s Office for the region has issued a new report, Latin America and the Caribbean’s Long-Term Growth: Made in China?
The study takes an in-depth look at the China-LAC relationship, particularly as it compares to Japan’s interactions with East Asian economies from the 1970s to the 1990s. The report concludes that China’s role in Latin America will need to adapt and evolve if it is going to have a lasting, positive impact.
“There is little evidence that China can play a role in fostering productivity growth for Latin America and the Caribbean,” according to the World Bank’s Chief Economist for the region, Augusto de la Torre. “In this new context of lackluster economic performance in the U.S. and Europe, one key question is whether LAC can leverage its deepening connections with China and turn it into an important source of long-term growth.”
The golden years of the East Asian Tigers were characterized by large flows of intra-industry trade and foreign direct investment from Japan, with significant distribution of technology and knowledge more broadly. The first decade of China relations with Latin America have lacked much of that promising exchange.
China has become the principal trading partner for some large LAC countries. Trade between China and these nations, has revolved around the exchange of the region’s abundant natural resources for low-tech goods from China that are labor-intensive to produce. This type of trade typically limits the potential gains from technology and knowledge sharing.
That is not to say that there have been no gains from the commodity boom in the region, the report emphasizes. Some bright spots show that certain commodity sectors in LAC are benefiting from technological innovation and generating local, quality employment. Extensive networks of local businesses in Peru and Chile, for instance, are benefiting from their ties to mining extraction and salmon farming, respectively, while agricultural producing countries in the Southern Cone have showed new technology deployment and productivity gains.
Until these favourable conditions become more widespread, however, it is difficult to expect that the region will finally begin narrowing the gap with advanced nations. LAC’s growth performance over the 20th century was rather dismal – with per capita income remaining largely steady at 30 percent of the U.S. In contrast, East Asian countries saw their per capita income, which was only about 15 percent that of the U.S. in the 1960s, rise sharply and steadily to reach more than 70 percent of the U.S. by 2010.
The very fact that the region is confronted at this stage with inflationary pressures arising from strong economic activity is a clear reminder that the region tends to bump against “structural speed limits” at comparatively low growth rates.
While the high-performing economies of emerging Asia can sustain annual growth rates in the 6-9 percent range without inflationary consequences, in most of LAC the non-inflationary growth rates that can be sustained over long periods hover below 5 percent.
Some of the factors that help explain these differences in growth potential include:
-- LAC’s road density has declined 15 percent since the 1980s, while it has expanded 30 percent in the Asian countries.
-- LAC’s electricity installed capacity was about 17 percent below that of the Tigers in the 1980s. Now it is almost 50 percent below.
-- LAC’s percentage of population with tertiary education has risen from 9.5 percent in 1990 to 14.2 percent in 2009, but it pales relative to the Tigers, which has gone from 10 to 20 percent in the same period.
On the other hand, De la Torre explains “LAC has developed vibrant democratic systems that in the long term can contribute to ensure that progress in these key areas is sustainable.”
In addition, some of the key external conditions to raise LAC’s growth rate sustainably above the world’s average are in place: large and growing countries with strong demand for LAC exports; high commodity prices; and low world interest rates. Seizing the opportunity on this favorable environment will require a well-designed and adequate policy mix that maintains macro-financial stability while fostering productivity, the report concludes.
September 21, 2011
caribbeannewsnow