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Friday, December 2, 2011

UNAIDS will be guided by the new UNAIDS strategy 2011–2015 , which aims to advance global progress in achieving country set targets for universal access to HIV prevention, treatment, care and support and to halt and reverse the spread of HIV and contribute to the achievement of the Millennium Development goals by 2015

UNAIDS in 2011



As the world enters into the 30th year of the AIDS epidemic, UNAIDS will work to position the HIV response in a new global environment. Ten years after the United Nations Special Session on HIV/AIDS and the landmark adoption of the Declaration of Commitment on HIV/AIDS, member states are now preparing for the 2011 High Level Meeting on AIDS to review and renew future commitments for the AIDS response.

UNAIDS will be guided by the new UNAIDS strategy 2011–2015 , which aims to advance global progress in achieving country set targets for universal access to HIV prevention, treatment, care and support and to halt and reverse the spread of HIV and contribute to the achievement of the Millennium Development goals by 2015.

“This strategy was developed through a highly inclusive and open process—reflecting the needs and opportunities ahead of us,” said Michel Sidibé, Executive Director of UNAIDS. “It is about fundamentally transforming the global AIDS response.”

Adopted by the Programme Committee Board in December 2010, the strategy will also serve as reference in the lead up to the UN High Level Meeting on AIDS.

“The High Level Meeting will be a major milestone in the history of the AIDS response. Only by working together to set our future course can we accelerate greater results for people,” added Mr Sidibé.

The strategy will be underpinned by a new unified budget and accountability framework. The framework will operationalize the strategy, mobilize and allocate resources for its implementation, measure progress and report on results.

unaids.org

Thursday, December 1, 2011

Who is Afraid of The Haitian People?


Battle of Vertières Haiti


By Jean H Charles



President Michel Martelly has failed his appointment on November 18, 2011, to visit the historic and touristic city of Cape Haitian on the historic day of the Battle of Vertieres.   Previous presidents used to visit Cape Haitian on that date, to commemorate the final epic story of the slaves who defeated the mighty army of Napoleon on November 18, 1803, to render Haiti and the rest of the world free of the scourge of slavery of man by man.

They were all there -- the school children in bright costume uniforms marching to the beat of the drum and the sound of the trumpet, proud as the Spartacus of antiquity crossing the Rubicon to enter Rome, the conqueror that was at last defeated by a band of slaves.   The Haitian people have re-edited once more this event in the annals of world history.

Vertieres should occupy a preeminent place, along with Marathon, Waterloo, and Gettysburg in the record of great battles of the world!

It does not!

The people in Sunday dress were there on the battlefield en masse, waiting for the president and his officials to deliver the famous speech magnifying the glory of the past and urging the spirit of appurtenance to continue to build together a nation free and independent.   The momentum was at its peak.   The Haitian people were expecting Urbis et Orbi from Cape Haitian to the world, a mighty and revered president as the commander in chief declaring that the Haitian armed forces, issued from the patrimony of the ragged but dignified indigenous army, are reinstalled on the territory of the republic.

He was not there!

He has succumbed to the weight of the international community, France, the former slaveholder; the United States that profited from the Haitian victory to become from sea to shining sea a predestined nation in the Western Hemisphere; the United Nations, of which Haiti was a founding member, with its so called stabilization force, now the enforcer of the great powers agenda.

Who is afraid of the Haitian people is a legitimate question that astute observers should be concerned about?

I am!

Out of a population of 10 million people, 8 million of them are living in almost destitute poverty yet there is an energy of creativity and a reservoir of resilience coupled with a wit that sustains daily living.   This phenomenon is rare and maybe unique to Haiti.

The former slaves and their descendants have been denied for two hundred years the bread of education and the discipline of sophistication and refinement, as a line of demarcation for holding them indefinitely in the bondage neo-slavery.   They have survived by paying dearly for their children to be educated with the hope of a better tomorrow.

They have been deceived not only by the international community but also by their own nationals in positions of power and authority, who took their cue from those who assassinated their founding father to impose the rule that freedom was only for a few, not for all.

Finally, two hundred-plus years, 208 to be exact, Haiti has a president in love with Haiti and with the Haitian people.   He must be crushed by a Parliament, whose venal interests are in opposition to the national destiny.

I was not sure where this line of inquiry would lead me until I attended a conference this weekend in Cape Haitian on the national dialogue and fraternity in Haiti, organized by the Haitian Institute of the Christian social doctrine.   Two eminent bishops were present, the Archbishop Louis Kebreau, the president of the Haitian Episcopal, and the very intellectual and scholarly Bishop Dumas to underscore this momentous experience.

Dr Antonio M. Baggio, the main speaker for the day, was sharing with the audience the product of his research, a book entitled: Letters to France by Toussaint Louverture.   Dr Baggio has revolutionized the political thinking of the day by reviling and proving that Toussaint Louverture may have inspired the philosophical underpinning of the French Revolution not the other way around.

It will take some time for the world and the western civilization to accept this phenomenon that President John Adams of the United States had already perceived.   He wanted to help Toussaint to become king of Haiti and as such helping his own cause, liberate the slaves on the American territory half a century earlier.

Here we are!   Haiti that accomplished one of the most signature revolutions in the world does not have its place as a universal patrimony of the rational homo species.   Having forced onto the world order the concept of liberty, equality and fraternity for all, the concept of fraternity according to Professor Baggio has been eliminated from the political praxis and discourse.   (La fraternidad en perspective politica, exigencias, recourses, definiciones del principio olvidado.   Buenos Aires 2009 and La fraternita nella rifles-sione politoligica contemporanea, Roma 2007.)

Professor Emil Vlajki, as the great thinkers of the world who sing the same song in different languages from different countries (Moses, Jesus, Rousseau, Kant, Marx, Nietzsche and Freud), has reformulated the same concept by defining the world of absolute rationality (liberty, equality without fraternity) and the world of human rationality (liberty, equality with fraternity).

The young people of America assaulting Wall Street to demand fraternity, or human rationality in a world where cynicism is the rule are playing their own partition in this quest where fraternity must be, as dictated by Toussaint Louverture, a key underpinning of the world order.

President Michel Joseph Martelly, enrobed with a popular mandate, has the possibility to help Haiti recover for itself and for the rest of the world the possibility that fraternity, or human rationality becomes a reality in the country and by ricochet for the rest of humanity.

As in 1804, when slaves were ready to explode slavery of man by man, the Haitian people are ready today to follow a leader with the guts to confront the western powers to make this world a better one for all by injecting the concept of fraternity and human rationality as the oil that will fuel the transactional activities such as commerce, arts and industry between different and all nations.

November 29, 2011

caribbeannewsnow

Sunday, November 27, 2011

The British media's anti-Jamaica campaign

By DIANE ABBOTT:






THERE was yet another depressing story about Jamaica in the British media last week. It featured in the evening news bulletin of BBC Radio. The news item began by mentioning that next year is the 50th anniversary of Jamaica's Independence. But it went on to suggest that any Jamaicans foolish enough to return home for Independence in 2012 risked being murder victims.

The news reporter said that over a thousand people returned to Jamaica every year. The source of that exact figure is a mystery. He went on to say that in the past decade 350 returning residents had been murdered and the possibility of being killed was "casting a cloud" over people thinking of returning home in 2012.

The reporter did point out that tourists hardly ever got attacked in Jamaica. But this fact would not have been much consolation to tourists of a nervous disposition who happened to be listening to the programme.

The news report went on to say that most returning residents flew into Norman Manley Airport in Kingston and that there was a network of criminals at the airport who targeted people visiting Jamaica and followed them. The programme implied that these criminals were often working in collusion with policemen and soldiers.

The programme also interviewed victims of crime and Mark Shields, former Scotland Yard detective who was appointed deputy commissioner of police in Jamaica in 2005 on secondment. He left the Jamaica Constabulary Force after a few years and is currently managing director of Shields Crime Security Consultants Limited on the island.

Percival La Touche, a long-time champion of returnees was also interviewed, and claimed that there was no plan to protect returning residents.

Crime is a serious issue in Jamaica, and the death of any Jamaican, returning resident or not, is a tragedy. But I was disappointed that the programme mentioned, only in passing, that violent crime overall has dropped in Jamaica and there has been a 25 per cent drop in the murder rate this year.

It was a programme designed to frighten anyone who was thinking of visiting Jamaica. I have worked for years to try and improve the image of Jamaica in the media. And I was depressed that on the one hand it is such a struggle to get anything positive about Jamaica in the newspapers and on television, but on the other hand these kinds of negative items easily obtain prominence.

We do not know when the next general election will be and we certainly do not know which party will be the victor. But whoever leads Jamaica in the future, the fight against crime will have to be a top priority. Fear of crime does not just have the potential to frighten off returning residents. Crime is also frightening tourists and potential investors.

However, I deplore the tendency of the British media to present only the negative side of Jamaica. I sometimes think that it is a testimony to the loyalty of Jamaicans living overseas and the excellence of Jamaica's tourism product that anyone ever visits Jamaica at all.

Diane Abbott is the British Labour Party's shadow public health minister

www.dianeabbott.org.uk

Sunday, November 27, 2011

jamaicaobserver

Saturday, November 26, 2011

Bahamas: These days, school children are contributing to a wave of criminality and brutality that has utterly disrupted our once quiet and tranquil existence

Gangsters in school


By ADRIAN GIBSON
Nassau, The Bahamas

Nowadays, as crime spirals out of control and has led to nationwide trepidation as regards the criminal element, a microcosmic look at the issues of violence and miscreant behavior in our schools is representative of what we’re facing in wider society. Indeed, there are those students who are so disrespectful and fierce that they openly engage in frightful, mob-like brawls that leave teachers, students and administrators scrambling for cover and demanding the presence of a school gang unit/police, particularly in those school districts that are alleged to be a gangland.
Of late, I’ve been told—by friends who are police officers and educators alike—that bedlam is being wreaked upon certain educational institutions as unruly, poorly socialized students terrify their classmates and teachers.

            These days, school children are contributing to a wave of criminality and brutality that has utterly disrupted our once quiet and tranquil existence. By all accounts, students use objects—wood, metal poles/pipes, blocks, knives—which were either left behind by contractors or tossed over school walls before security checks or during the weekend/nights. I’ve even heard stories of home invasions involving youngsters who are young enough to be in primary school but small enough to slither through windows that have been pried open to open doors for their accomplices. Where are the truant officers to ensure that the whereabouts of these youngsters who duck school to break into people’s homes (e.g. the cash for gold racket)?
In recent years, there have been several reports of clashes between students when gang-affiliated pupils jump school walls and return with the support of outsiders. Frankly, the MOE should make a concerted effort to raise the parameter walls of certain public schools, perhaps using barbed wire atop the school’s fence as well.
In secondary schools—and some primary schools—on-campus gangs are problematic, with students becoming fiercely territorial and dabbling in drugs. Gangs, which are groups of allied and aberrant individuals, are infamous for their involvement in criminal activity.

            These groupings of errant individuals may loosely hang out together or form a strict organization, with a designated leader, ruling council, a name, identifiers and, with the most structured gangs, bank accounts.
A few years ago, I spoke with Corporal 2552 Darvey Pratt, an authority on local gangs, who was then posted in the Police Force’s Community Relations Unit.
According to him, there are about 46 known gangs in this country, with a combined membership of about 10,000-foot soldiers. He said that although there may be a few populous gangs.
At that time, he said that gangs are usually recognizable by hand signals, colors, caps and, in the case of many local gangs, sports paraphernalia (eg, football and basketball jerseys).
During the 1960s, neighborhood groups such as the Farmyard Boys or the Kemp Road Boys had squabbles but rarely engaged in serious criminal acts.

            By the 1980s, it is said that the era of political sleaze and drug dealing led to the formation of more violent, felonious gangs such as the Syndicate and the Rebellion, with the latter being the former gang of reformed gangster, pastor and motivational speaker Carlos Reid. During the last 20 years, the number of youth gangs has grown.
Gangs are an omnipresent part of inner-city life, where they petrify the community with patent dope-peddling and mafia-style violence, which is sometimes well planned but may result in the deaths of innocent bystanders.

             I was told that these local gangs are extremely sadistic, instigate deadly rivalries and usually carry out unlawful acts in specific zones that they claim as turf. Corporal Pratt told me that some gangsters cannot venture out of there immediate area into any part of Nassau, because they would be immediately killed.

             With approximately 10,000 young Bahamians engaging in anti-social behaviour, Corporal Pratt said that their thrust to become gangsters is brought on by “a search for identity, a lack of education, a want for protection when they travel to other areas of New Providence, poverty and absentee and neglectful parents.” At the time of our interview, he said that single parent homes or homes with uneducated, young parents who lack parental skills and “don’t have much of anything to teach their kids” are those that usually produce gang bangers.

             He said that the students in gangs are usually disruptive nuisances on school campuses, who usually have dismal grade point averages. According to the policeman, poverty-stricken teenagers have no money to purchase what they desire, so they turn to working for a gang leader who will pay them a stipend or buy material possessions for them.
Older, hardened criminals are known to recruit and exploit school age children. Frankly, it is those adolescents who lack self-esteem and are in pursuit of love who are the persons chosen to be hit men subjected to the orders of their leaders.
         
            Studies on gang violence reveal that new inductees must be beaten by a certain number of other members for at least 10 minutes, and the wannabe gangster cannot resort to any defensive postures during the thumping. Survival of such a cruel affair would prove that an aspirant member is tough and lead to him being accepted. Moreover, the gang leader may send a wannabe member to kill a perceived threat/enemy to earn ‘his stripes’.
Female gang members, who usually belong to spin-offs of male gangs, are initiated in the same way as males and may also be told to have sex with a member or every male in an affiliated gang.
In the 21st century, gangs have evolved into multidimensional consortiums that traffic drugs, deal in firearms/ammunition, threaten police officers, carry out drive-by shootings and contract killings, and engage in extortion, human smuggling, phone tampering, marriage fraud and identity theft.

            According to Pratt, the Raiders gang is ubiquitous throughout New Providence, with segments located in Fox Hill, Kemp Road, Bain Town, Carmichael Road, Pinewood, etc. Although there are a few major groups, he noted that there are numerous splinter gangs throughout the island that are either affiliated with a more established crew or are only associated with schools or a small grouping of hoodlums peddling dope on a street corner.

            Based upon information gleaned from Corporal Pratt and a focus group of students some time ago, I can identify certain New Providence based gangs and their neighborhoods.

            The active gangs and splinter groups terrorizing this island are: the Raiders, Nike Boys (Coconut Grove, Yellow Elder, CC Sweeting), Dukes (Englerston) Corner Boys, 187, the Irish, Gun Hawks, Sharks (Key West Street/Ida Street/CH Reeves), Gun Doggs (Bain Town, Kemp Road), Monster Doggs (Carmichael, Carlton Francis), Pond Boys (Big Pond), War Kings (Englerston), MOB (Bamboo Town/Sunset Park), Deathrow (Carmichael), Gun A** (Sunshine Park), Dirty South (South Beach/St Vincent Road), Cash Money Boys, Cowboys, 242, 362 (Bacardi Road), Wet Money Gangsters (Winton), Swamper Dogs (Pinewood), Raider Boy Killers, Original Boy Gangsters, Hoyas, etc.

               There are also female gangs such as the Trip Out Daughters, Mad A** Daughters, Head Gone B******, Looney Tunes, Shebellion (part of Raiders), and so on.

               Behind the bushes of Carmichael and Cowpen roads are Haitian gangs such as the Bush Boys and an offshoot of one of the world’s most dangerous and notorious black gangs—ZoPound. These gangs are all prevalent in our schools.

                ZoPound is a gang started in the ghettos of Miami, by destitute Haitian immigrants or persons of Haitian descent.

                Since its launch, ZoPound has been exported to the Bahamas via the large influx of illegal Haitian immigrants and the deportation of Haitian-Bahamians to the Bahamas after they have served sentences in US prisons. Reportedly, ZoPound is also comprised of ex-militants and ex-cops and generates hundreds of millions per annum from the sale of drugs, gambling and prostitution.

               ZoPound’s initiation rituals are slightly different from many Bahamian gangs, because to qualify for membership, you must have Haitian parentage.

              The policeman said that ZoPound is a worldwide gang involved in “drug racketeering.” He claimed that gangs, particularly ZoPound, are known to “hire fellas to stand on various street corners and serve as sentries to protect the dope sellers.”

             He claimed that several of these drug peddling lookouts work shifts like a regular job and earn $1,000-$1,500 per week.

             In various schools, particularly in bathrooms or desks, gangland graffiti is a common sight. In a BIS report in 2005, Seanalee Lewis, then head of the Behavioural Modification Programme at Woodcock Primary and a veteran social worker with the Ministry of Social Services and Community Development, asserted that primary school students are using marijuana, forming gangs and marking out turf. What a travesty!
Indeed, students must be taught to be independent and individualistic in their outlook as membership in menacing gangs can do nothing but result in social anarchy and in a collective lack of productivity. 
Character development and family values must become a focal point in Bahamian homes and in our classrooms!

Wednesday, November 23, 2011

Political leadership in The Islands: Bahamian prime minister - - Hubert Ingraham’s vision of a modern Bahamas

Hubert Ingraham’s Bahamian vision

Front Porch


By Simon

Nassau, The Bahamas



Those who want to understand the full scope of Hubert Ingraham’s vision of a modern Bahamas, must look not only at what is happening in New Providence but also beyond.  A good place to start is Abaco, the present-day, and circa 1947 to approximately 1964, the early years of the future Bahamian prime minister.

During his nearly 35 years as an MP, the member for North Abaco has had a singular vision for the development of all of Abaco.  It is a uniquely Bahamian vision moulded by the geography of the largest archipelago in the Caribbean, with territory stretching approximately the same distance as from Puerto Rico to Trinidad and Tobago.

Among Mr. Ingraham’s signature accomplishments is his transformation of the historic challenge of developing the far-flung Bahamas archipelago with its complex of developmental challenges, into a strategic strength.  In so doing, he is making The Bahamas a model for small-island state development.

To do so, he realized that he had to act on multiple fronts, with limited resources, prioritizing initiatives and capital projects while leveraging the strategic assets of our history, geography and fiscal capacity to diversify the economy and provide greater long-term sustainability and social protections in a modern liberal state.

In this ambition, Abaco has been a grand experiment in small-island development.  It has been a work in progress for many years, now reaching critical mass.


ROOTS

The prime minister’s vision has its roots in his Abaco boyhood, which he has helped to transform from the Abaco of his youth.  What he has done in the third largest island in the archipelago is a part of his long-term strategic plan for developing all of the major islands in our chain.

He has sought to ensure that each major island group, inclusive of various cays, has the critical infrastructure to become platforms for sustained development and a diversity of industries.  Added to this vision was the introduction of local government so that Family Island residents have more say in running their own affairs and increased participation in decision-making on various local matters.

Mr. Ingraham’s model of integral development includes public investment in power generation, water, roads, docks, ports, hospitals and clinics, schools et al., which will help to sustain population growth by attracting domestic as well as foreign direct investment and enticing new residents including Bahamian and non-Bahamian second home owners.

Those in Nassau who have enjoyed cable television and internet service since the inception of Cable Bahamas do not truly appreciate what cable service, which Mr. Ingraham’s government introduced, means to Family Islanders.

Today, the owners of a bone-fishing lodge or charter boat service in Acklins or Andros may now advertise and have guests book online enabling them to better sustain their small businesses.  They understand Mr. Ingraham’s vision better than the critic pontificating on the prime minister’s supposed “lack of vision” from the ease of both an arm chair and ready access to the internet.

The observation of former Barbados Prime Minister Owen Arthur after visiting Abaco is instructive.  Mr. Arthur, who knows well the challenge of developing a single island state, was impressed by the scale of development in Abaco alone.

Within two years of Mr. Ingraham becoming Prime Minister, Cooper’s Town had a major clinic.  The pace of development in Abaco has accelerated ever since, continuing to gather pace with an impressive array of public investments similar to the infrastructural works in New Providence.

Mr. Ingraham’s delight in the Family Islands, and his enthusiasm for fishing, have made him an ardent environmentalist.  In just 10 years he doubled the size of the national park system.  He appreciates the need to balance development and conservation, one of several reasons he was appalled by the Great Mayaguana Land Giveaway by the former government.

Hubert Ingraham is a pragmatist, technocratic, not given to rhetorical flights of fancy.  This has been a strength, as he has been typically careful to ensure that his rhetoric does not outstrip his ability to deliver on his promises.

U.S. President Richard Nixon famously observed that politicians campaign in poetry, but must govern in prose.  The problem with one former Prime Minister is that he campaigns and governs in rhetorical flourishes rarely getting down to the prose and hard business of government.  The difference between prose and poetry eludes another wannabe prime minister.


RHETORIC

The downside for Mr. Ingraham is that more technocratic prose often lacks poetic flourish.  This is why some suggest that he lacks vision as they prefer the frenzied rhetoric of a church revival.  But those who mistake performance art for substantive vision in both religion and politics typically fail to appreciate the breadth of the Prime Minister’s vision.

It is not only those who desire fanciful and syrupy rhetoric who fail to appreciate the scope of the Prime Minister’s ambition to modernize The Bahamas.

There are also the inveterate Ingraham-haters with personal grudges who cannot separate their personal feelings from the Prime Minister’s public performance, and political opponents who have a reason for their denials of his accomplishments. Then there are the intellectually slothful who revel in a “pox on both houses” mentality with regards to political analysis.

As the College of The Bahamas moves to university status, it may bolster its research efforts with more in-depth political analysis.  One project may be an analysis of the Ingraham legacy.  As Mr. Ingraham will leave a wide body of documents, public statements and accomplishments, he will prove a fascinating study in political leadership in The Bahamas in the closing decades of the 20th century and the early decades of the 21st.

One may disagree with Mr. Ingraham’s style of governance and/or his positions on various issues.  But to deny that he has a vision is akin to those conspiracy theorists and loons who still believe that Barack Obama is not an American citizen.  Some will never be convinced despite the overwhelming evidence staring them in the face.

Nov 22, 2011

www.bahamapundit.com

thenassauguardian

Monday, November 21, 2011

Young Bahamians and, HIV and AIDS education in The Bahamas

'PEOPLE NOT INTERESTED IN AIDS EDUCATION'


By DANA SMITH
dsmith@tribunemedia.net

Nassau, The Bahamas


THE Bahamas Red Cross has found that young Bahamians are not interested in assisting with HIV and AIDS education, one of its representatives said yesterday.

Amanda Lewis, Red Cross Project Coordinator, was a presenter at the 2011 Caribbean HIV Conference, where she spoke on the difficulties in raising HIV-AIDS awareness among young people.

She explained how factors such as low interest from young people in HIV-AIDS education and a "lack of association" between HIV-AIDS work and the Bahamas Red Cross hindered the Red Cross' efforts in organising education programmes.

At the conference, Ms Lewis unveiled a new project, The Caribbean HIV-AIDS Project (CHAP), where young people can become peer educators, and teach their peers about safe sex, HIV, and AIDS.
Ms Lewis said that recruiting young people to be Peer Educators was the "main challenge" of CHAP.

"It's very difficult to get young people involved in something that they might not see the value in, right away," she said.

Despite this, according to the Bahamas Red Cross, CHAP was able to educate more than 5,000 young Bahamians on HIV prevention, this year alone.

"It's a two-year programme sponsored by the American Red Cross and being implemented by the Bahamas Red Cross," Ms Lewis said.

"I train peer educators with knowledge about HIV prevention and safer sex, and they in turn go into their communities and educate their friends, family members, and peers."

She continued: "The research shows that young people are more receptive to hearing information from somebody in their age group. It's seen more as sharing information rather than being lectured to."

Ms Lewis said she "had to do a lot of work" to recruit young Bahamians to participate in the project, stating that she found "low levels of interest" from youth in becoming peer educators and "feelings of fatigue" from youth in becoming involved in an organisation, in general.

Ms Lewis also described how many Bahamians did not realize the role the Bahamas Red Cross played in HIV-AIDS education.

"Community members did not associate the Bahamas Red Cross Society with HIV-AIDS work so it was very difficult for us to establish ourselves and get the programme started," Ms Lewis said. "This lack of association had a big impact on the difficulties we faced when we were recruiting."

However, the Bahamas Red Cross was able to recruit 42 young Bahamians to become peer educators, with 36 remaining active in their communities.

"We've had great success. One of our targets for the project was that there would be 4,000 young people reached by our peer educators in their communities by the end of the second year, and by the end of the first year, we've met just under 6,000," Ms Lewis said.

Colin Scavella Jr, the Lead Male of CHAP's peer educators said he got involved with CHAP because he "found that there was a need in the different communities throughout Nassau" for HIV-AIDS education.

"In the beginning, the response was kind of reluctant, but once you start, people start talking to people. I speak to a group today, and tomorrow they bring their friends. By the time you realize it, in the space of a week's time you've already spoken to 30 or 40 people," Mr Scavella said.

"It's like a domino effect - you speak to one or two people, and it trickles down from there."

November 21, 2011

tribune242

Sunday, November 20, 2011

Jamaica: Lessons From A Bankrupt US City

jamaica-gleaner editorial



In recent days, potential buyers have been rummaging through boxes of Wild West artefacts in a large, old building in the city of Harrisburg in the American state of Pennsylvania.

The pieces were collected for the establishment of a museum, but they are to be auctioned off to help pay the city's debt. Last month, Harrisburg, the Pennsylvanian capital, filed for bankruptcy, the legitimacy of which a court will rule on this week.

In the meantime, the state government has sent in a receiver to organise a workout plan for the city and to put its finances in order.

Harrisburg is not the only insolvent municipality that has filed for bankruptcy. Last week, Jefferson County, in Alabama, did so, saying it was unable to service a US$4-billion debt. In August, Central Falls in Rhode Island also sought protection from creditors.

Cities can, and do, go bankrupt. And if it happens to cities, it can happen to the nation states of which they are part.

Indeed, that is what Greece and Italy barely escaped and are still fighting to stave off, causing the collapse of their governments, in favour of interim administrations in whose ability to take on tough reforms creditors have greater confidence. If the numbers behind the debt and fiscal crisis of Europe's PIIGS (Portugal, Ireland, Italy, Greece, and Spain) are difficult to digest in Jamaica, perhaps the developments in the United States (US) cities will help bring clarity to the danger with which Jamaica flirts by the failure to vigorously confront its own debt crisis.

genesis of the problem

The genesis of the problem in Europe, the US municipalities and Jamaica are, essentially, the same. They borrowed heavily to fund services or projects which have not, for a variety of reasons, returned enough to service their debts. In the case of Harrisburg, the overall debt is around $500 million, but the bulk of it is owed on a trash-to-energy facility that has not performed to expectation.

But the city, under its former long-serving mayor Stephen Reed, had a history of going to the market to finance projects. "He (Reed) never met a bond he didn't like," quipped Harrisburg's controller, Dan Miller.

That sounds like a Jamaican affliction. Our cane, the debt, not counting yet-unaccounted-for off-book obligations, is $1.6 trillion, or 130 per cent of GDP. Servicing the debt, including amortisation, takes up three-quarters of income from taxes and grants. What is left over is sufficient to pay only a third of public-sector wages. So, the country finds itself on a treadmill of debt.

In Jefferson County, roughly analogous to a Jamaican parish, municipal officials, in the face of the fiscal crisis, have laid off workers, cut hours and raised sewerage charges, the debt for which is a major source of the problem. Pensions may not escape.

The options faced by Jamaica are essentially the same, as the International Monetary Fund has been telling our Government. The public sector has to be reformed, including cutting jobs and overhauling its largely non-contributory, and unaffordable, pension scheme. The tax system has to be restructured to make it more efficient and to bring more people in its purview.

Political leaders talk about these things, but move on them with little energy, making a threatened debt downgrade more likely, which would increase the cost of borrowing. Which might we prefer: Greece, or Harrisburg?

November 20, 2011

jamaica-gleaner editorial