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Saturday, February 16, 2013
The Rule of Law in the Turks and Caicos Islands
Caribbean Journal - Op-Ed Contributor
In a political blast that threatens to cause a constitutional crisis in the Turks and Caicos Islands, the current Premier, Dr Rufus Ewing, has asked Her Majesty’s Government to recall Governor Ric Todd, Attorney General Huw Shepheard and CFO Hugh McGarel Groves.
This development is the most recent in a sequence of historic constitutional developments in the Turks and Caicos. But there has been serious corruption in the Turks and Caicos, and any potential recall of the Governor would simply not help in resolving these longstanding problems.
The Turks and Caicos had its 2006 constitution suspended in August of 2009, when the United Kingdom resumed direct control over the Turks and Caicos in response to widespread allegations of serious government corruption.
The UK’s Foreign and Commonwealth Office reviewed a Commission of Inquiry led by Sir Robin Auld, who had documented widespread government corruption among government officials including Turks and Caicos Islands Premier Michael Misick.
This is not the first time that the British had imposed direct role as they had done so in 1986, although it was later restored two years later.
Michael Misick resigned after the Auld Commission of Inquiry accused him of corruption and he was later asked by the Turks and Caicos’ newly-formed Special Investigation and Prosecution Team to surrender to the police for questioning.
Misick failed to surrender, however, and after a sojourn in a series of Latin American countries, was later arrested in Brazil after he was made the subject of an Interpol international arrest warrant.
The SIPT investigators who are seeking to question Missick have charged at least 12 other individuals, including five former Cabinet Ministers, on corruption-related charges.
In related circumstances, the SIPT reached an agreement with Sandals Resorts International, by which the company paid $12 million US dollars to the government.
The British Foreign Office introduced a new Turks and Caicos constitution in 2011.
The new constitution ultimately restored representative government to the Turks and Caicos with a local Cabinet, Ministers and a House of Assembly consisting of 15 elected members, chosen democratically in a vote in November 2012.
That election saw the return to power of the Turks and Caicos’ Progressive National Party, which won 8 of the 15 seats.
Earlier this month, however, one of the seats was declared vacant because of a successful election petition. A by-election is pending which could lead to a change of government next month.
In Ewing’s letter seeking a recall of the Governor and other officers. He suggested that “justice is for sale,” under the guise of plea-bargaining.
Dr Ewing specifically referred to well-known expatriate developers who had, in his opinion, secured their freedom from prosecution, both by monetary exchange under the guise of “Civil Recovery”, and by providing evidence against accused local politician “co-conspirators.”
In his letter to the Foreign Office, Dr Ewing implicitly suggested that there was a violation in the Rule of Law in the way in which the Constitutional Rules were being interpreted in the Turks & Caicos.
Professor AR Dicey, the British scholar famous for his jurisprudential theory, says that no one is above the Rule of Law, and he points out that the Rule of Law strengthens democracy.
Of course the Turks and Caicos is still a British Overseas Territory, and ultimately the Rule of Law will have to be determined by the UK’s Foreign and Commonwealth Office.
The Rule of Law dictates that the British Administration should be fair to all defendants both local and expatriate. But the allegation that “justice is for sale” should, at all costs, be disproven.
David P Rowe is an attorney in Jamaica and Florida and a law professor at the University of Miami School of Law in Coral Gables, Fla.
February 14, 2013
Caribbean Journal
Thursday, February 14, 2013
The Bahamas Government is proposing to implement a Value Added Tax (VAT) on July 1, 2014
Gov't Targets 15% Vat From July 1, 2014
By NATARIO McKENZIE
“However, the excise taxes that are currently imposed on selected products, namely tobacco, petroleum, vehicles and certain luxury items, will be unaffected by WTO accession as, by law, they are imposed at the same rate on both domestic production and imports of those products.”
“The Government believes that its programme of tax reform, when fully implemented, will result in considerably greater and more efficient revenue collection, the proceeds of which will better equip the Government to meet the increasingly complex financial needs of our nation. More fundamentally, it will bring into being a new system of taxation that shares the tax burden more fairly and equitably,” said Mr Halkitis.
Tuesday, February 12, 2013
Venezuela Debates Currency Devaluation while Impact Remains Unclear
Mérida, 11th February 2013 (Venezuelanalysis.com) –
There has been much debate in Venezuela over the causes and likely consequences of last Friday’s currency devaluation, while the concrete political and economic impact remains to be seen.
The Venezuelan government’s decision to devalue the Bolivar by 32%, from 4.3 to 6.3 Bolivars to the dollar, was a measure seen as inevitable by many economists after the Bolivar fell to under a quarter of its official value on the black market.
Alongside the decision, the fifth devaluation since currency controls were introduced in 2003, the government also announced the establishment of a new body to oversee the allocation of dollars to citizens and businesses.
Analysts in Venezuela have argued that the political impact of the devaluation will depend on the success of the media campaigns of both the government and the opposition, which are attempting to communicate their interpretations of the currency adjustment to the country.
However, economic factors will also determine the political impact of the devaluation, such as its effect on imports and domestic production, increases in inflation and prices, and complimentary government measures such a rise in the minimum wage and the effectiveness of price controls.
Opposition criticisms
The opposition has launched a campaign maximising the possible negative effects of the devaluation, partly in an attempt to erode support for Vice President Nicolas Maduro in the event of fresh presidential elections if Hugo Chavez is unable to continue in office on health grounds.
Ramon Aveledo of the opposition MUD coalition blamed the government for the devaluation, saying, “It’s due to the government’s irresponsibility and worrying incoherence”.
Opposition leaders and supporters alike nicknamed the move a “red” or “Cuban package” in an attempt to associate the devaluation with an IMF-style neoliberal structural adjustment package.
Julio Borges, a leader of right-wing party Justice First, said of the devaluation: “The only ones affected are the Venezuelan people, from whose pockets the government keeps taking money”.
He pointed to a rise in inflation and prices over the last two months, blaming this and the devaluation on high public spending. “Now they [the government] are going to make us pay for the consequences oftheir inability, waste and poor administration,” he declared.
A short-term rise in inflation is possible after the devaluation, because imports will be more expensive, with a concomitant effect on prices. On the other hand, since so many imported products are sold at prices that reflect the black market exchange rate, which is unlikely to change as a result of the devaluation, inflation might not rise much after all.
However, while sources such as Reuters have described a “spike” in annual inflation to 22.2% so far this year, a rise in inflation during and after the Christmas period is not unusual in Venezuela, and annual inflation is still below the annual rate experienced a year ago.
Government stance
Meanwhile, the government has highlighted the possible benefits of the devaluation, such as bringing in more oil revenue for social spending, helping boost domestic production, and potentially combating capital flight.
Foreign minister and former vice president Elias Jaua argued that the adjustment was made necessary due to the activities of a “speculator class” within Venezuela, who acquire dollars at the official exchange rate and then use those dollars for black market sale or to sell imported products at black market prices.
As such, Jaua defended the devaluation and the establishment of the government’s new currency exchange body as combating speculation and capital flight.
He also described the measures as part of “economic actions taken to protect our wealth in currency exchange, avoiding that it falls into the torrent of capitalist voracity, and to preserve our monetary resources for the sustainment of our socialist system of social benefit that our President Chavez has been constructing”.
Economist and pro-government legislator Jesus Faria further argued that the devaluation would make imports more expensive and exports cheaper, thus making domestic production more competitive.
He said that before last Friday’s devaluation there had existed “an exchange rate lag produced by the excessive cheapening of imports and the over-pricing of exports, which had to be corrected”.
US economist Mark Weisbrot also predicted the devaluation would have a positive impact. “The devaluation…by making imports more expensive [will] provide a boost to import-competing industries. For this reason, and because it reduces the black market premium and reduces capital flight, the move will overall be good for the economy,” he wrote.
Accusations that the devaluation represents an IMF-style “package” were widely dismissed outside opposition circles given that the move was not accompanied by any measures associated with neoliberal economics, such as privatisations, salary freezes, or the removal of subsidies.
However there have been criticisms of the move from within the pro-Chavez camp, where some activists have argued that currency devaluations contradict the movement’s political economy and that other measures could have been taken to address speculation on the Bolivar.
Leftist political scientist Nicmer Evans said that the move was “not very socialist”, because it is a measure “which affects the poorest and the richest equally”.
“Neither devaluation nor the Value Added Tax (VAT) are socialist measures, because they are regressive” he added on his Twitter account.
Venezuelanalysis
Saturday, February 9, 2013
The facts about homosexuality
Jamaica Observer - Columns:
Homosexuals were not created. Man was created as a being of free choice. He was also created with an inherent sexuality, which is also governed by choice. If we look at nature and how it is designed, even the animals and plants exist as male and female. It was so ordained for procreation. Each creature has to procreate in a union of male and female to ensure the survival of their species.
In fact, several of them have been banned from certain countries because of the stance taken against their music which hits out against this lifestyle.
February 09, 2013
Jamaica Observer
Thursday, February 7, 2013
Obama and the Caribbean
Caribbean Journal - Op Ed Contributor
IF UNITED STATES PRESIDENT Barack Obama’s foreign policy can be criticized, it can be on the basis that it has been somnolent and reactionary with regard to Caribbean policy.
Neither the United States nor the Caribbean can afford this because of the two sides’ strong linkages, democratic connections and the close proximity: Montego Bay, Jamaica is about a one-hour flight from Miami. Bimini in the Bahamas is 50 miles from Miami.
The Obama administration should attempt to devise a coherent and dynamic Caribbean policy for the second term, particularly in the countries of Haiti, Jamaica and Cuba.
And this time around, there is no diplomatic spanner in the works such as Jamaica’s 2010 Christopher Coke Extradition dispute to freeze the dialogue.
Indeed, there are many positive potential economic factors promoting business and trade in the region between the US and the Caribbean.
President Obama can ostensibly increase economic growth in the southeastern United States by asserting and consolidating the United States’ leadership in regional trade policy in the Caribbean.
Haiti
It has now been three years since the catastrophic earthquake demolished much of Haiti.
And despite the significant activity by the United Nations and NGOs, Haiti remains the most poverty-stricken country in the Caribbean and, indeed, in the Western Hemisphere.
Even the personal attention of former Presidents Carter and Clinton has not yet been able to ignite significant business activity there.
Washington should try to devise a legislative strategy that would encourage Haiti to increase its exports and generate domestic jobs so that the continuous trickle of refugees fleeing Haiti for economic opportunity in the United States and the Bahamas can be brought to an end.
The United States Congress can help Haiti by increasing agricultural imports from Haiti, and by existing textile incentives for investment in Haiti.
The major priority for the Obama administration must be to encourage major US investment in the country.
Cuba
Cuba is drifting towards the end of what history might call the Castro era. There are strong voices in both the Republican and Democratic parties that can see no reason to perpetuate the Cuban Trade Embargo and point to Washington’s positive diplomatic relationship with Vietnam as justification for trade with Communist regimes.
The Cuban Trade Embargo is thought to be a useless legacy of the Cold War, argued by some to have be needlessly but emotionally perpetuated by an influential group of Cuban-American leaders.
But whatever the reason for the continued freeze, it is clearly time for new and fresh dialogue with Cuba, if Cuba will concede on issues such as freedom of information and speech, freedom for political prisoners and travel freedom for all Cubans.
The continued incarceration of American Alan Gross in Cuba is symbolic of a backward attitude by Cuba with regard to human rights.
But there will likely be a new generation of leaders in Cuba soon, and the US should encourage them engage in constructive political change for the region’s benefit.
Jamaica
Jamaica does not have Haiti’s extreme poverty or Cuba’s autocratic angst but it does represent a third challenge for Mr Obama’s Caribbean policy makers in his second term.
Jamaica is the Greece of the Caribbean, heavily indebted and currently throttled by a vicious crime wave which sometimes results in 20 homicides per week.
To prevent Jamaica from sliding further, Obama may have to consider a special foreign aid package to help steady the political boat captained by Prime Minister Portia Simpson Miller.
Jamaica has been unable to conclude an agreement with the International Monetary Fund to stabilize its international credit rating, so its economic prospects appear gloomy in the short term.
Jamaica could benefit greatly from a United States recognition of a special Jamaica-United States relationship.
Today, China is playing the role of a political foster parent in Jamaica and other Caribbean islands, building major bridges, stadia and roads for its new-found Caribbean friends.
The United States should match China’s strategic outreach in Jamaica and keep it in check before China develops a logistical base in its Caribbean backyard.
An acknowledgment of these issues by the President might yield an integrated Caribbean policy to be administered by new Secretary of State John Kerry.
David P Rowe is an attorney in Jamaica and Florida and a law professor at the University of Miami School of Law in Coral Gables, Fla
February 04, 2013
Caribbean Journal
Saturday, February 2, 2013
...celebrating the 54th Anniversary of the Triumph of the Cuban Revolution
Celebrating the triumph of Cuba's revolution
By YURI GALA LOPEZ
Wednesday, January 30, 2013
Business leaders in The Bahamas are urging the Bahamian government to treat the defeated gambling referendum as a learning experience ...for the upcoming oil drilling referendum
Govt urged to tackle oil vote ‘differently’
Analysts say proposed legislation prior to referendum would build consensus, eliminate politics and improve education over exploratory drill
JEFFREY TODD
Guardian Business Editor
jeffrey@nasguard.com
Nassau, The Bahamas
Business leaders are urging the government to treat the gambling issue as a learning experience for the upcoming oil drilling referendum.
While the "Vote No" campaign was victorious on Monday, observers have noted that low turnout and general apathy impacted the democratic process.
The government was frequently criticized for being unclear in the referendum questions and failing to introduce specific legislation to back up the possible legalization of gaming. The vote also became highly politicized, prompting rival parties to endorse opposing views.
For an upcoming oil drilling referendum, a decision that could indeed reshape the country's economy, the process must be handled "in a completely different way", according to Richard Coulson, a well-known financial consultant.
"The government will need to go to great lengths to explain what the issues are," he told Guardian Business.
"Oil drilling is not a moral or religious issue. It will be a matter of whether you can explain the economic advantages and technical reasons why the environment can be protected. If those points can be explained, there should be no rejection."
In the nation's young history, both referendums brought to the people have been strongly rejected.
Coulson said that changes are needed to ensure referendums occur properly without placing the country's future at risk.
On the issue of oil drilling, he urged politicians to arrive at a consensus prior to the vote by crafting a detailed proposal and piece of legislation on how the process would be administered.
Member of Parliament for East Grand Bahama Peter Turnquest agreed that future referendums need parliamentary involvement.
Turnquest said that the current government tried to "push" the idea of gambling on Bahamians, believing that people would simply vote yes. The former head of the Grand Bahama Chamber of Commerce said specific legislation must go through a "period of education" whereby the public is taken through the process.
"Anything short of that will result in a similar kind of situation," he added.
Indeed, a negative result in regards to oil drilling is the last thing the Bahamas Petroleum Company (BPC) wants, not to mention its legions of international shareholders.
As Bahamians voted in the gambling referendum, investors in BPC on the London Stock Exchange (LSE) watched keenly and speculated on when a vote on oil exploration could occur.
Shares of BPC ended yesterday's trading at 5.51 pence. That compares to around 16 pence per share back in February 2012.
The Progressive Liberal Party (PLP) pledged a referendum on the subject prior to coming into power last May.
At the time, Opposition Leader Perry Christie drew headlines when he confirmed that he was a legal consultant for Davis & Co., the law firm that represented BPC. Meanwhile, the Free National Movement (FNM) famously revoked BPC’s licences during the election.
These licenses were reinstated by the PLP after coming into power.
It has been speculated that a referendum on oil drilling could occur by the summer, although no formal timeline or process has been announced by government.
January 30, 2013