The Haitian Dilemma

By: Leroy A. Binns Ph.D.

Haiti once again made international news as the November 29^th general election resulted in the death of 35 citizens and the hospitalization of many others.

Although such outrage is not unheard of in poverty-striken countries these irate occurrences that led to the cancellation of Haiti’s first general election in 30 years demonstrate the fallacy underlying Western democracy. For many politicians and laymen alike the State Department helped to orchestrate the overthrow of Jean Claude Duvalier from office nearly two years ago but despite this symbolic gesture the US administration has continued to intervene in the internal affairs of the state by fabricating the procedures necessary for democratization. The US Under Secretary of State for Caribbean and Latin American Affairs Elliot Abrams has gained the endorsement of Caribbean leaders in an effort to dictate Haiti’s electoral format. Furthermore our government has also financed the electoral process and supervised it with US personnel with the hope of deciding its outcome.

As the issue unfolds so have varying speculations concerning the regrettable bloodbath and a plot of reversal by supporters of the deposed Jean Claude Duvalier made public by Secretary of State George Shultz, Congressmen Dante Fassell and Walter Fauntroy and King Henri Christophe University’s president Louis Nossin. However amidst confusion and inadequate organization by the junta’s electoral commission these accusations have been met with skepticism by most Haitian Americans. Instead in major US cities such as New York and Miami these transplants have voiced the opinion that US intervention over the years of the Duvalier dictatorship and throughout the transition period that followed provoked political turmoil within the state.

At present the US denies such charges and has therefore suspended $62 million in economic assistance for fiscal year 1988. Nonetheless she demanded the implementation of a new electoral commission and coerced the involvement of the Organization of American States in democratization of a sovereign state.

In summary over the past months bloodshed has ceased. Yet strong opposition to foreign intrusion which includes the withdrawal of attorney at law Gerald Gourgue, economist Marc Bazin and minister of religion Sylvio Claude from the presidential race, a surge in workers’ strikes and a 15% electoral turnout that supposedly brought Dr Leslie Manigat to power is evidence of an ongoing internal strife that leaves the Haitian political catastrophe unresolved.  

The Big Bang Theory

Leroy A. Binns Ph.D.

During the twilight hours of January 6^th the United States once again took center stage as her war planes shot down two Libyan MIG 23s in international airspace off the coast of Tobruk.

Within minutes of the attack Libyan officials denounced the callous act and readily asserted that their aircrafts were reconnaissance planes on a routine mission. Meanwhile in a Pentagon briefing Defense Secretary Frank Carlucci and the Joint Chiefs of Staff Admiral William Crowe expressed the view that the Libyan fighters displayed “clear hostile intent” towards their American counterparts. Carlucci reiterated by saying that missiles were fired only after the planes showed signs of unfriendly aerial maneuvers. Nonetheless for many the clash within the Mediterranean was premeditated.

Ever since the inauguration of President Ronald Reagan US/Libyan relations have gone sour. The chronology of events reveal the following: The 1981 downing of the two Libyan warplanes alleged to have attacked US Navy F-14 fighters over the Gulf of Sidra, a US attack on several Libyan ships and a missile installation on Libyan soil and the bombing of Tripoli and Benghazi all of which occurred in 1986. As if that were just the tip of the iceberg the Reagan administration has now threatened to destroy a Libyan pharmaceutical plant she claims to be a budding haven for chemical weapons.

During a stormy period of allegations the US has accused Bonn of failure to investigate Imhausen Chemie, a German company aiding the Libyan venture. In addition the former’s distasteful attitude has caused commotion at the Global Conference on chemical weapons that recently convened in Paris. However although the Germans conceded that the firm in question assisted the Libyans in the construction of the controversial plant they denied there was proof to link her to an arms deal. By the same token while addressing delegates in the French capital Soviet Foreign Minister Eduard Shevardnadze emphasized the need for evidence if Libya ought to be condemned whereas French and Greek regimes withheld judgment but cautioned America against premature actions.

As tempers flared Libyan Col Muammar Gaddafi has asked for and gained the support of Third World nations. Saudia Arabia much to the dismay of the United States has voiced opposition to the skytrain affair and has offered to mediate on behalf of both parties while countries such as Syria, Tunisia and Cuba to name a few have used the United Nations as a political forum to denounce US atrocities.

In spite of the fact that Herbert Okun, a US representative to the UN Security Council perceives America’s position as “a clear and unambiguous act of self defense” Libya’s assertion remains an issue. In the past America has admitted to her unwarranted involvement in naval exercises off the coast of Libya. Such acts could also be considered groundless especially when pondering staunch opposition to the plant’s closure due to lack of evidence.

Unfortunately a Libyan diplomat’s summation tells it all. “This is the Reagan administration’s notion of a goodbye celebration – the display of fireworks on foreign soil.”

Book Review

Title: Cuba Confidential – Ann Louise Bardach

Publisher: Random House - 2000

Author Ann Louise Bardach captivates an audience with poise and authenticity through the prism of a wrecked vessel and the least expected survivor and lead actor Elian Gonzalez. Like the investigative A&E television program City Confidential the plot is riveting in topography, villains and victims yet departs on interpretation of decency which is largely ascribed to political ideology, social experiences and geography.

The book revisits causation surrounding a failed and unauthorized attempt by two families and friends to travel the Florida Straits by boat to American prosperity. It accurately dissects each individual and contributes a descriptive tale of affection, comradeship and personal desires as the bedrock of this adventure that ran amuck. The story is relived by shipmates Arianne Horta and her boyfriend Nivaldo Fernandez but eclipsed by the emergence of the 6 year old boy and orchestrated by his handlers, grand uncle Lazaro Gonzalez, his uncle’s daughter Marisleysis, congresswoman Ileana Ros-Lehtinen, the Cuban American National Foundation (CANF) and the extended Cuban-American community in Southern Florida.

Bardach uniquely hones her craft articulating the utilization of paternity to exasperate antagonistic flames towards the Cuban establishment. Central to this discussion is the role of the CANF, its founder Jorge Mas Canosa and Washington in alliances of ill repute unveiled by participants and techniques of a questionable nature employed to dislodge the Castro administration. The illustrious and ruthless leader of the Cuban government in exile who is incriminated by associates for countless encounters with known felons most notably drug dealers Rafael de Arce and Antonio Canaves and Bay of Pigs operative Luis Posada Carriles is quoted as saying, “We will never forget our friends and will always remember our enemies” and therefore unwaveringly thwarts an exchange of ideas on transition in Cuba.

Regrettably disparaging battles of admonishment were waged unsparingly against fellow Cuban-Americans who defied the odds in Miami as the foundation’s overwhelming power silenced many, permeated the airwaves and even the White House and the national legislature where it bore the rare distinctions of influencing American foreign policy with presidents Ronald Reagan, George H. Bush, William Clinton and George W. Bush and congressional representatives Robert Menendez, Robert Torricelli and company. Hence ironically the deportment of the accusers unmistakably embodies hypocrisy as malignant deficiencies of intolerance are hallmarks shared with their Caribbean adversaries. 

Not to be overshadowed by philosophical assertions is also revelation of family connections between members of the Cuban leadership in South Florida and Havana. Castro’s indifference and subsequent divorce from his first wife Mirta Diaz Balart, the sister of Rafael Diaz Balart a former cabinet member of the Batista regime and aunt to congressman Lincoln Diaz Balart and the sunshine state senator Mario Diaz Balart ferments personal vendetta towards the maximum leader.

Balanced assessments incorporate precision in analysis of Cuba through the lens of its messiah and local observers. Such invites extensive interviews seeking to untangle the web of an individual of privileged means and an incomprehensible personality; upper-class childhood, brilliant student, uncommitted father, philander, revolutionary and maniac.

A tapestry of Castro’s life relays an ambivalent relationship with family members, a disdain for the status quo, and efforts to micro- manage marriage simultaneously with application to political protest. Unsurprisingly despite age and the passage of time the polarizing commander in chief vocalizes with zest socialism, its accomplishments, shortcomings, the US propaganda campaign inclusive of assassination attempts and is unremorseful for executions and imprisonments in contradiction with principles of the revolution. Conversely others reference a system adherent to a personality cult and a psychopath clueless to reality by underscoring immigration and decay on the domestic front.

The writer artistically interweaves politics as an overarching theme in explicating the characteristics of the underworld and its links to government. Accounts provided by Posada charged the CIA as a covert instrument of recruitment and training for clandestine outfits namely the Junta Revolutionaria Cubana, the Cuban Representation in Exile and the Commandos of the United Revolutionary Organizations aimed at destabilizing Havana and aired his dubious past with Orlando Bosch a convicted terrorist and former governor of the province of Las Villas.

An extended network also engulfed Latin American safe havens and/or launching pads such as Argentina, Mexico, El Salvador, Panama and Venezuela, and surrogates Hernan Ricardo and Freddy Lugo, the accomplices of the 1976 Air  Cubana bombing and Frank Castro and Felix Rodriguez among others. Moreover in light of shifting currents in Grenada and Nicaragua, the Reagan-Bush presidencies received recognition for ambiguous endorsements and commitments as demonstrated by Secretary of State Alexander Haig, National Security Advisor Robert McFarlane to annihilate Cuba.

Following a crescendo that embroiled local fanfare and a fiasco fueled by the media, courts, defense attorneys and politicians the pronouncement of justice was met with a possibility for reflection. With the loss of political leverage and Elian’s return to his homeland the text reveals a political fallout and disintegration staged by Team Florida.

The once cohesive CANF displayed signs of fragmentation. Nonetheless an appeal for moderation aligned with the ascension of Jorge Mas Santos, the son of the late Mas Canosa was subject to reproach from former affiliates Radio Marti and Radio Mambi accompanied by personalities the likes of Ninoska Perez-Castellon, Alberto Hernandez and Jose Antonio Llamas and isolation by congresswoman Ros-Lehtinen’s former campaign manager and recent governor Jeb Bush. Further as anticipated the democratic party and particularly Janet Reno became instant targets for retaliation and later suffered humiliating losses at the polls in 2000 and 2002 respectively. In contrast victory on the island was punctuated with official events and rewards to the Gonzalez family. It was indeed a repeat of David versus Goliath as Castro triumphed over his archrival.

Cuba Confidential is a “must read” for scholars and laypersons as well. It’s thought provocative portrayal of comparable inconsistencies and extremes prevailing on both sides of the divide beckons for reason by moderators fixated on political identities and limited by distrust. 

Leroy A. Binns Ph.D.

Adjunct Professor: The Graduate School of Arts and Sciences
The Union Institute

All Hail to the Chief

By Leroy A. Binns Ph.D.

Throughout the past two years Soviet General Secretary Mikhail Gorbachev has continued to captivate the international arena with his charm and wits. His previous engagements with President Ronald Reagan have dealt a severe blow to the Stalin era and given added dimension to East/West relations. However as if that were not enough the General Secretary has left the world in awe once more with his zeal at the historic Soviet party conference.

At last week’s governmental exchange the first in 47 years Gorbachev aroused Soviet delegates by voicing disgust at a decaying Soviet economy but most importantly he called for significant transformation for perestroika to be realized. The Soviet leader’s aspirations included a loosening of party power on the daily affairs of government and industry, an introduction of democratic procedures to make political institutions more responsive to rank and file, increased power to councils that operate at each level of government and the rewriting of the legal code along democratic lines among others. Moreover much to the dismay of the Western press the televised event not only gave rise to the above mentioned recommendations but its aftermath. This spectacle entailed two unexpected requests for the ousters of one time minister of foreign affairs Andrei Gromiko and the number 2 party leader Yegor Ligachev for their inability to foster growth within the Soviet Union, a lengthy and profound debate between the latter and former party boss Boris Yeltsin in which both accused each other of groundless and mistaken tactics and equally as important a vivid account by Gorbachev that attributed Yeltsin’s failures to intolerance to party reforms.

In spite of these and other adverse political dissent among staunch party supporters, US news correspondents and politicians are nonetheless of the opinion that given the present mood existing within the Soviet political hierarchy Gorbachev’s insights may wear thin. In fact in a recent dialogue between Nightline’s Ted Koppel and ABC’s foreign correspondent Pierre Salinger the French newsman questioned the level of Soviet endurance in relation to democratic reform while on Capitol to Capitol the Speaker of the House of Representatives Jim Wright aired concern with respect to glasnost and its arch rival the old Soviet vanguard. Nonetheless political trends have released positive signals worldwide.

Gorbachev’s new thinking has began to transcend theoretical boundaries as he strives to enhance USSR/Third World relations. At present the Soviet leadership is removing troops from Afghanistan while coercing Sandinista/Contra negotiations. They are also engaged in conversation pertinent to the withdrawal of Cuban soldiers from Angola and the Middle East conflict. Across the Soviet empire their policies are weakening previous immigration laws thus allowing an increasing amount of Soviet Jews the opportunity to migrate to Israel and advancing freedom of speech as seen through the Armenians’ cries for self autonomy and promoting economic growth. By endorsing the INF treaty the Russians have secured large sums of revenue for agricultural and industrial sectors.

In short one assertion holds true; the summit has given the Soviets a mandate for change and thus created a new era of Soviet political discourse.  

A Cultural Revolution

By Leroy A. Binns Ph.D.

The Chinese crackdown that allegedly took the lives of hundreds of students at Tiananmen Square has become the issue of the day.

According to the media following the massacre Chinese officials denounced what they called counter-revolutionary activities and henceforth proceeded to imprison organizers (ten of whom reportedly have been executed), expelled journalists and postpone a meeting of the national legislature that was scheduled to discuss student demands.

At home fearful residents sought refuge and overseas massive protests engulfed the island of Hong Kong and major cities in Australia, West Germany and the United States. Further foreign governments have shown dissent. The French and Swedes have relinquished diplomatic ties with China whereas the British and American administrations have halted their supply of military hardware. In fact pressure may intensify as congressional members such as Senator Pete Wilson and House Speaker Thomas Foley rally support for an end to the friendship status afforded the communist republic. New measures are also under consideration in other Western countries. The Canadian ambassador to China has been recalled for deliberation and dignitaries from Norway and Denmark have cancelled trips to the world’s most populous state till further notice.

News has it that the local youths were requesting legitimate rights, most significantly freedom of the press, freedom of speech and incorrupt government representation. As a matter of fact they were allowed to do so much to the embarrassment of a subdued regime. Not only were they granted the opportunity to deface the leadership during the visit of General Secretary Mikhail Gorbachev – the first by a Soviet president in over two decades but the privilege of world coverage as they called for the ouster of the governing body until opportunism became evident.

Many academics will readily infer that the death of former party leader Hu Yaobang, a prominent supporter of change and previous student movement in the Philippines and South Korea ignited the demonstrations. They will even liken the above to the Cultural Revolution – Mao’s 1965 attack on secularism. However such assessment is preoccupied with regional politics.

In 1972 a Kissinger initiative was introduced. This venture created a historic thaw in US/Sino relations and resulted in an increasing transfer of goods and services between the respective states in the years that followed. Moreover it provided a vehicle for Keynesian thought and radical transformation on the mainland.

 During the past decade the project increased in statute. As students exchange programs developed Chinese immigrants were encouraged to uproot communism in their homeland. Meanwhile additional incentives incited entrepreneurs to alert the world of the eminence of Jeffersonian democracy in the Peoples Republic of China.

Presently the Bush administration has denied any involvement in the Chinese affair but its intentions prove otherwise. In an enclosed session Vice President Dan Quayle informed the Chairman of the Chinese legislature Wan Li of the necessity to reshape the Beijing household by replacing Deng Xiaoping and his loyal subordinates, President Yang Shangkun and General Qin Jiwel with the relatively moderate oustered communist party chief Zhao Ziyang and his reformers and thereafter stressed that decisive steps would be taken to keep the nation in line with America’s wishes.

The events up to date are unfortunate and must be promptly addressed by the Chinese authorities through constant consultation with its subjects and if necessary intermediaries that share a common interest. External involvement may also be useful providing diplomacy is advanced as the means to a peaceful solution.

Amandla!

Leroy A. Binns Ph.D.

The Pretorian government gave the cliché, “Christmas comes but once a year,”a new meaning when she oversaw the release of the ANC most admonished leader Nelson Mandela.

Following uprisings in Tembisa, Elliot, Taylor’s Halt and Atteridgeville the de Klerk administration broke trends with the past and after 27 years lifted the ban on all black organizations, freed prominent nationalist leaders and abolished segregation laws.

Although the long awaited transition has been welcomed by the populace at large obstacles still abound. Most significantly there was fierce opposition from the minority conservative party that seeks to maintain the status quo. The problem also culminates with a government that was indecisive about the path to change.

As the spotlight hovers over South Africa, solutions are being echoed from various sectors within the society. On the first day of freedom Mandela voiced integration of blacks into the country’s political mainstream as the alternative while in a rare appearance with ABC’s Nightline correspondent Ted Koppel, President FW de Klerk in uncertain terms aired the possibility of adopting one of the many democratic models.

With upcoming negotiations between the government and her counterparts in Angola, Mozambique, Namibia, Zimbabwe and representatives of the ANC and her affiliates, the abandonment of the state of emergency, the unconditional release of all political prisoners and the implementation of voting laws were some of the primary issues that set the stage for future discussions. However diehard elements continued to hold steadfast on matters of economic sanctions in attempts to solicit attention to promote an agenda.

As it stands the international community has continued to address the problem with zeal. Within the European Community all nations with the exception of Great Britain made public their intention to sustain economic sanctions against Pretoria until serious strides were mad towards equality. At the same time across the Atlantic the US Afro-American congressional caucus was seeking additional trading sanctions and fiscal blockades to bring the transfer of power to fruition.

The passage of political turmoil may nonetheless give rise to the Zimbabwean model - the institutionalization of black leadership at the hands of the country’s old oligarchy. Thus the South African majority must heighten her awareness for the days ahead.  

Beyond Khomeini

Leroy A. Binns Ph.D.

The death of Islam’s most revered iman Ayatollah Ruhollah Khomeini has sent shivers throughout international circles as academics and government policy makers try to reshape the Iranian puzzle.

As the country’s 83 member assembly seeks a replacement Ali Khamenei, the Chairman of the Supreme Defense Council has been named temporary caretaker. However Western sources have predicted a power shuffle that will eventually lead to the parliamentary speaker Hashemi Rafsanjani’s rise to the helm.

Shortly following the news of the deceased President George Bush expressed hope for amicable relations with Iran while Britain’s Prime Minister Margaret Thatcher and the Israeli government openly voiced a similar desire. In addition US political analysts are partly optimistic that the Republic’s ruined economy and the current events such as the death of Khomeini and the possibility of a pragmatic successor are factors that could alter Iran’s international image and have therefore urged the American administration to seize this opportunity.

Most recently change seemed unlikely. The talk of the town was one of hostility towards Iran as the country’s spiritual leader demeaned “the great Satan” through the hostage crisis and the Iran/Contra affair. Nevertheless very little has been mentioned of the historical causations that promoted such actions.

Ever since the Oriental Renaissance Western imperialism has dominated Persian politics. In the 1930s the Shah dynasty commenced and with it came corruption. With access to vast sums of money from the oil industry the government ruled with a heavy hand. Senior Shiite opposition figures were jailed or exiled and the peasantry suppressed. Meanwhile the elites lived lavishly at the country’s expense.

Despite anti-monarchic sentiments that oversaw the Islamic revolution and the rise to power of the reclusive Khomeini in 1979 the Reagan camp sought to undermine the religious establishment by supporting Baghdad in her proxy confrontation with Tehran and by appealing to moderates such as Iran’s former president Abolhassan Bani-Sadr and the country’s prospective spokesman Hashemi Rafsanjani through intermediary parties namely Britain’s clergyman Terry Waite and Saudi Arabia’s millionaire Adnan Khashoggi. American propaganda has also instilled hatred against the state of Iran and fermented the 1988 downing of the Iranian airbus and other illegal intelligence operatives in violation of international law.

May be in light of these atrocities the White House should take the initiative to normalize relations with her former ally. An official apology and a partial return of frozen assets to the government in question may in part compensate for her hideous crimes. This could result in the release of Shiite held American hostages in Lebanon and ultimately the commencement of US/Iranian diplomatic relations.

The reconciliation process as acknowledged by one of our country’s distinguished critic Edward Said will be a long and painful one. In fact as he puts it, “over time there maybe a more favorable relationship with Tehran.” Nevertheless the Ayatollah’s legacy may continue to haunt the United States unless appropriate measures are introduced to incite peace.

Here We Go Again

By Leroy A. Binns Ph.D

Panama’s most recent general election has reinstitute barbarism as the governing forces declared the results null and void.

According to foreign sources following the final tally which favored the opposition 3 to 1 the ruling party denied the outcome and two days later invalidated the process. To top it all the Panamanian political machine has been accused of suppressing its rivals. One of the most striking incidents involved the severe beating of Panama’s opposition presidential candidate Guillermo Endura who was hospitalized with injuries sustained to the head while another entails a bloody torture received by Guillermo Ford the opposition’s presidential nominee at the hands of government supporters.

As the Western world continues to absorb the shocking tales steps are underway to curb the wave of violence. In Washington the Organization of American States has concluded that the democratic process in Panama was tainted and therefore agreed to help solve the problem through the creation of a fact finding commission and moves are afoot to expel the Panama from the Group of Eight – a political organization comprised of Argentina, Brazil, Columbia, Mexico, Panama, Peru, Uruguay and Venezuela.

The Bush administration has also rejected the electoral outcome and has openly requested the ouster of General Manuel Noriega. In order to support her position she has continued to maintain an economic embargo and has bolstered reinforcement in the canal zone while urging Latin American countries to exert pressure on the Panamanian government. Unlike his predecessor President Bush has gained high marks for bipartisan support in Congress. Nonetheless foreign governments are unsure of America’s intentions.

The word on Capitol Hill is that the United States will refrain from gunboat diplomacy unless such response is warranted. But the same was said of Grenada before she fell prey to US invasion in 1983. Furthermore the embarrassment felt by the Reagan camp at the hands of the present regime is still remembered and could serve as a pretext for irresponsible behavior.

In recent days congressional members have shown signs of uncertainty in relation to the crisis. Upon return from Panama US electoral observers Senators Bob Graham and Connie Mack were staunch supporters of a US backed invasion however they now endorse a “wait and see” policy. In addition Senator Christopher Dodd, the chairman of the subcommittee on Western Hemisphere and Peace Corp Affairs on This Week with David Brinkley stopped short of inciting US intervention but emphatically expressed a possibility for the use of such action.

Such unpreparedness has nevertheless been confronted by Latin American diplomats who along with leftist newspapers and parties are suggesting a “hands off” approach by the American government. In fact they are fully aware of the Nicaragua dilemma that ironically involved Noriega at the latter’s request and thus overwhelmingly support regional diplomacy in order to avoid uncontrollable bloodshed in Panama and possibly surrounding states.

Panama’s future remains unclear nonetheless the solution to this delicate situation may serve as an impetus for social change.

Jamaica: No Problem?

By Leroy A. Binns Ph.D.

The long awaited Jamaican national election has replaced the incumbent Edward P. G. Seaga with the former two term head of state Michael N. Manley as the People’s National Party swept 44 of the 60 seats in the House of Parliament.

Although Manley’s overwhelming support fell short of that in 1976 the political climate enhanced his return in a remarkable fashion. The most recent referendum temporarily erased wide spread violence from the electoral process and unequivocally signaled the need for social change.

As the scoop hits news stands, political pundits and business tycoons continue to assess the transition. Joseph Treasurer of the New York Times sees a flourishing economy at stake under the Manley regime as do entrepreneurs who recall the economic deprivation faced by the private sector in the 1970s. Nonetheless these misinformed observers chose to ignore the fiscal ills of the past 8 years.

During Seaga’s tenure the autocratic leader’s relationship with the IMF has increased the deficit by an alarming $2.5 billion and has therefore created the following austerity measures: a decrease in the number of students earning a higher education due to astronomical college fees, the termination of much needed government employees, a substantial increase in the cost of essential commodities and on many occasions the scarcity of basic necessities amidst constant devaluations of the Jamaican currency. Moreover his exclusive friendship with the United States has prevented the island from receiving technological assistance from nonaligned states – all of which the previous administration claimed to have predicted well in advance of the electoral showdown.

Over the years the incoming democratic socialist gained the respect and commitment of Third World counterparts and the working class for his unwavering stance on social justice. However his most recent posture has been a Western compromise that is diametrically opposed to the ideals of the disenfranchised. Illustrations of Manley II include a yearning for intimacy with the Bush administration and its underlings the IMF and the World Bank as opposed to an allegiance with socialist tenets he oftentimes “heralded” in the 1970s.

Despite the horrifying remembrance of US hostilities towards the Bishop regime in 1983, the Noriega administration in 1988 and most significantly the PNP government in the latter half of the past decade, the prime minister speaks of practicality when supporting concessions with the White House yet such will result in the continuance of economic stagnation in Jamaica and ultimate defeat. Instead in order to avoid crucial pitfalls such as inflation, unemployment and illiteracy that are common symptoms of US imperialism in the underdeveloped world the new leader must avert corruption, induce productivity and forge an alliance with nonaligned nations in an effort to gain economic independence.

For now the charismatic ruler’s flip flop may earn him a pass at home and in the West but the death of this paradise island remains a grave concern.

Playing the Stock Market

By: Leroy A. Binns Ph.D.

In a world of economic uncertainties many have sought to offset inflation and recessions by resorting to an array of financial alternatives. To bolster security some have supplemented their incomes with second assignments, others have shown a preference for gambling and a percentage has pursued investments.

One of many investments is the stock market via The New York Stock Exchange (NYSE), The American Stock Exchange (AMEX), The NASDAQ or other local or international stock exchanges which unlike regular commercial banking although risky has the potential of providing greater dividends. Some participants of this Security Exchange Commission (SEC) licensed venture, purchase shares (e.g., blue chips, secondary issues, growth stocks and penny stocks) in lucrative corporations through stock and floor brokers on the assumption that such transactions will yield profitable returns. Others seek the assistance of professional in an attempt to acquire open and/or closed mutual funds with a similar objective in mind. However to avoid a loss which could result from high interest rates, unfavorable publicity and seasonal fluctuations such individuals have the option of selling their shares and if deemed prudent procure stocks elsewhere.

This process is increasingly complex. The players examine and formulate critical decisions utilizing fundamental and technical analyses which assess the potential of companies based on their history with reference to profit, service and competition and determine the value of their common preferred stocks, categories of preferred stocks and when necessary stock and reverse splits.

Empirical evidence applicable to the status of outfits is also gleaned through the following tools:

Stock Listings – Such entails dividends, percentage yield, PE ratio, volume, high, low and close and net change

Stock Price Charts – This instrument underscores historical performances, stock’s stability or volatility, stock’s current price relative to the past and stock’s growth rate

Despite protection offered by the SEC which prohibits the usage of insider information and dictates guidelines associated with the buying and selling of stocks, investors must act responsibly to minimize crises (e.g., the crashes of 1927 and 1987) by exercising expertise – the prerequisite for a climate of fiscal gain.

The following are commonly acceptable techniques:

 Short Selling – This endeavor involves selling lent stocks in anticipation of obtaining an advantage

Buying on Bargain – The utilization of margin accounts to borrow stocks with the intention of gaining interest.

Buying Warrants – This procedure includes the issuance of warrants to purchase pending stocks that could sell at an increased rate and therefore net a profit.

In short considering all the factors at play the stock market may several times be equated with typical speculation practices nonetheless many beg to defer on the grounds that such emulates intelligent investment executions.

E-Commerce on the Rise

By: Leroy A. Binns Ph.D.

Commendation is in order for the city of Washington DC that sanctioned access to advanced technology in the form of the internet, a computer based global information system in the late 1980s culminating in the replacement of mechanical with electronic functions by way of the worldwide web. This conversion while facilitating past obligations both military and academic now encompasses e-commerce.

E-commerce, a cost effective and time efficient means of operation which adopts the general principles of traditional marketing with the exception of its reliance on networked computers is utilized by companies to advertise, sell, buy and distribute products and provide customer service and buyers mainly for purchasing purposes. Further tasks such as business to business transactions namely the exchanging of financial information and accessing of intricate databases are central to the exercise.

Since its inception the maturity of the internet at 100% every nine to fourteen moths and the expectation for such to expand beyond 407 million users by 2001 worldwide is responsible for the explosive evolution in e-commerce. Analysts have reported that transactions which incorporates the display of multimedia documents (e.g., combination of text, photographs, graphics, audio and video) resulting in consumer purchases of automobiles, furniture, computers, electronics, airline tickets, hotel rooms, clothing, books and most commodities imaginable grew from $11.2 billion in 1998 to $31.2 billion in 1999 and are predicting that the monetary outcome from such mode of sales and service will yield $380 billion by 2003.

According to Wayne Hanson, Human Resource Manager for Systems Integration Services at Control Data Systems, “Electronic commerce and systems are pushing the world of business in a new direction.” With retailers from auto, airline, garment and food industries to name a few who have benefited immensely from electronic prowess vying for increased revenues in a competitive arena, supply chain management establishments are aggressively pursuing updated applications. In fact US retail systems integration which totaled $2 billion in 1996 has doubled at the turn of the century and continues to grow at a rate of 26% a year.

A study released in 1997 by Computer Sciences Corporation and Consumer Goods Manufacturer magazine discovered that US retail producers are focusing on the usage of information technology to integrate function and business processes thus streamlining operations. The enhancement of information networks involving groupware, local area arrangements and intranets is common place. Companies are also deploying new software to coordinate research, development manufacturing, logistics, sales and marketing abilities to endorse growth.

In a domain of glasnost void of uncompromising admittance and geographical boundaries non-traditional players who would otherwise lack an opportunity to vocations in business are entering the marketplace as entrepreneurs and capturing an audience without a physical presence and overhead cost. Despite bankruptcy or closure of 225 dot com enterprises in 2000 and an additional 537 the following year evolutions also include the introduction of an internet mall initiated by the likes of Microsoft. Based on Reuters reports Hewlett-Packard, Visa/Mastercard and United Parcel Service along with European counterparts are parties to this experiment that would alter the capabilities of e-commerce.

As the terrain continues to offer immeasurable potential technical challenges abound. Engineers are confronted with the possibility of congestion and have therefore created dense wave division multiplexing to transfer a greater amount of bits per second across optic fiber and sophisticated electronic processors to address routers and other packet handling equipment. In addition the professionals are in the process of introducing IPv6 to accommodate the shortcomings of the IP version which has a limited address capacity and an expansion of domain names is under consideration.

Politicians are presented with a formidable task regarding the regulation of the phenomenon in question. Discussions involve the passage of laws to control deployment and use, the imposition of taxes on e-commerce, the management of content and security and privacy concerns. However attempts to censor as with the Communications Decency Act of 1996 has oftentimes been considered constitutional infringement on the right to free speech and the absence of expertise hinders the imposition of a tax formula and assurance measures.

In short amidst controversy the contributions of e-commerce are invaluable and speculations about its future albeit unclear are promising.

Distance Learning at a Glance

 

By: Leroy A. Binns Ph.D.

Subscribing to principles associated with aged tutorial models of Oxford and other leading European universities, educators throughout the United States during the last 3 decades have adopted the application of distance learning as an alternative to traditional instruction.

Distance learning which is oftentimes referred to as an unparalleled opportunity to share information with students particularly established professionals who would otherwise face academic deprivation may also be characterized by the attractions listed below. The pursuit enables

A rolling admissions policy

Students to learn where ever it is convenient

Students to learn at their own pace

Students to access a large pool of peers to advance the learning process

Students to gain technological skills throughout the duration of their study

Materials in most disciplines and certifications (e.g., certificates, diplomas and degrees) to be specifically prepared for home study

The hiring of tutors who are highly specialized in their respective fields. Many are usually employed by traditional institutions and/or reputable business establishments.

Cost effective programs

The necessity for advanced education in an ever growing competitive world leads the charge for systems for distance learning. According to David W. Stewart, director of program development for the Center of Adult and Educational Credentials at the American Council on Education (ACE), “The fact is that most people in this world need further education in order to survive. For those people traditional programs do not work. Therefore we will see the expansion of these programs.”

Proliferation of information technology has added a new dimension to distance learning which was once defined by various print formats including texts, study guides and work books and correspondence via mail and telephone. Learners are now engaged through voice (e.g., audio conferencing and short wave radios), video (e.g., film, video tapes and one or two way video with two way audio) and electronic data (e.g., computer assisted and managed instruction and computer mediated education). In addition the success of this phenomenon should equally be attributed to the many participants involved. Apart from the students whose predecessors are active at all levels of industry and academe the operation includes technical teams of facilitators, support staffs and administrators.

Although the mode of instruction at times is criticized by detractors who compare it to learning at non accredited entities, records indicate its utilization by recognized national institutions such as Harvard, Rutgers, Penn State and Indiana State universities to name a few. In fact according to Black Issues in Higher Education, “There are over 100 external degree programs which are approved by the US Department of Education or the Commission on Recognition for Postsecondary Education (CORPE) some of which embrace innovative cohort delivery systems incorporating a brief on campus residency."

Universities without walls or open universities as they are sometimes called share the same objectives as their traditional counterparts but were not designed for most young adults who are lacking the element of maturity and independence to excel within such an unfamiliar environment. Therefore institutions such as Norwich University, Goddard College, Saybrook Institute and The Union Institute seek seasoned adult learners and are comprised of student bodies with an average age ranging from 27 to 40 years.

In the words of Dr Franklin Smith, a graduate of Nova Southeastern University’s external doctoral program in education and former superintendent of the District of Columbia Public Schools, “I had a family with three kids and I could not afford to take a year off from my job then try to find another later.” Smith also attested to relevance by saying, “One of the strengths of the program was that it dealt with issues from a national perspective. It really helped me become cognizant of the issues that were happening outside the little world I was in. It helped me establish a network of peers around the country who are doing things that are innovative.”

With proven results, a growing demand for cost efficient education and ongoing technological advances distance learning is poised for a bright future.

Different Types of Scholarships

By: Leroy A. Binns Ph.D.

An array of scholarships is currently accessible to adults seeking a college education. Most commonly recognized are academic programs that reward the brightest and the best but comparable assistance also incorporates athletic, minority and gay, lesbian, bisexual and transgender fellowships as well as endowments defined by subject classification.

High achievers from secondary schools across the country usually embark upon a college career with the assistance of free financial aid based on scholastic achievements and extra-curricular involvement prior to admissions. The nature and types of awards vary dependent on performance and degree program and college/university selection and are extremely competitive.

Talented young performers in the area of sports who seek to combine such activities with formal studies are often times candidates for NCAA scholarships at division I, II or III institutions. This privilege covers sporting events such as basketball, baseball, football, cross country, golf, track and field and tennis and is also made available to eligible journalism majors under the Freedom Forum NCAA Sports Journalism Scholarship Program and the NCAA Ethnic Minority and Women’s Enhancement Postgraduate Scholarship.

In an attempt to expand the opportunities afforded by a college education, federal, state, professional organizations, private endowments and corporate donors and colleges and universities provide minority awards. Such may be classified by race and gender as is the case with African-American, Hispanic, Asian, Native American, interracial and women specifications. This umbrella may also encompass individuals of multicultural, gay, lesbian, bisexual and transgender orientations and is traditionally geared towards embracing the above mentioned parties in underrepresented fields of study inclusive of but not limited to the sciences, math, engineering, law, medicine and business.

Emphasis may also entertain a growing presence of Native Americans on college campuses, the return of minorities to college to complete undergraduate or graduate degrees and courtship of children of gay and lesbian parents endorsed by the First Breakfast Club Scholarship. Moreover attention transcends race, gender and sexual persuasion. Pioneer Juniata College, a small liberal college in Pennsylvania grants awards to left handed students while Little People of America offers similar assistance to pupils who are 4 ft or shorter.

The demand to enhance a superior work force fuels donations for grants by subject. Such provisions are provided for students in engineering, aerospace, chemical and material science, nursing and auxiliary health care and teaching/education. Likewise majors in communications, library information, physical and life sciences, forensic accounting and organizational leadership and entrepreneurship obtain compatible aid.

Proceeds for the lottery tickets have enabled states to challenge talented students with merit scholarships. Although duplicating a service offered by other services their involvement primarily through state colleges and universities and other state based institutions is crucial in establishing funds for low income students, high end fields of study and non traditional students or community college students. In addition equally as important as partners in education are civic organizations and clubs that channel boys and girls scout, political, religious and veteran and disability scholarships among others.

The results of such ongoing tangible sustenance speak volumes of our personal and national advancement nonetheless it remains a constant reminder of the distance not traveled.

How to Find Free Scholarships

By: Leroy A. Binns Ph.D.

With an increase in prospective candidates in search of post secondary education, accommodations have been introduced to facilitate academic aspirations. Whereas new courses and degree programs accompanied by revolutionary modes of instruction particularly distance learning are reflecting the needs of a changing society so is financial awards as a solution to inequality and rising tuition.

Admissions to higher education may commence with qualifications yet in close standing looms overwhelming expenditure to attain such training. For high school pupils a visit to the guidance counselor’s office sets in motion a discussion on approaches to financing tertiary education. Such a revelation is inclusive of personalized needs based analysis and process and options ranging from loans to grant/scholarships.

Access to information on the latter may also be obtained at public libraries, bookstores, financial aid departments at colleges and universities, professional organizations the likes of science and health establishments, non profit organizations such as the Rotary Club, Lions Club and the Elks and by electronic sites commonly known as collegescholarships.org, findtuition.com and amazon.com among others.

In an arena saturated with literature some are deserving of commendation for in depth coverage and an assortment of alternatives. A partial list is as follows:

 Scholarship Handbook 2010 – The College Board

How to go to College Almost for Free – Ken Kaplan

The College Board Scholarship Handbook 2009 12^th edition

Peterson’s Scholarship, Grants and Prizes 2010 – Thompson Peterson

The Scholarship Scouting Report

An Insider’s Guide to America’s Best Scholarships – Ben Kaplan

Cash for College: The Ultimate Guide to College Scholarships – Philip C. McKee and Cynthia Ruiz

While some monetary gestures are general in focus others are designed acknowledging specific criteria. Scholarships may target groups by age, race, religion, specialization, grades/achievements and fiscal status. In addition many corporations and government entities participate in the offering of employee benefits which reward workers with full reimbursements for relevant credits earned. Consequently recipients on several occasions have been beneficiaries of free education.

Amounts dispersed towards tuition and/or room and board spans hundreds to thousands of dollars per semester which is primarily dependent on resource availability and determined by part time and full time status and undergraduate and graduate study. The Pell grant formerly known as the Basic Educational Opportunity Grant Program is a federal course of action sponsored by the US Department of Education that addresses the financial burden of undergraduate students from low income families to a maximum of $4,050 per school year.

In sum albeit the applications are oftentimes laborious in request for information, attention to detail is warranted for desired outcomes. Therefore as a precautionary measure, responses should be tailored in accordance with inquiries in anticipation of augmenting opportunities. Refusal to comply in full to instructions could ultimately result in rejection of funding and postponement of ones academic pursuit.

Debt Management

By: Leroy A. Binns Ph.D.

Debt management is a widely adopted practice utilized to assist debtors who are incapable of addressing their finances. This strategy is most often developed and implemented by an independent organization working on behalf of clients who are insolvent and lack the knowledge and/or will to correct an overwhelming amount of debt.

The impact of inflation coupled with loss of employment, investments and medical and/or educational expenses are common contributors to such fiscal dilemma. However corrective measures can reverse this tide of despair. For some bankruptcy allows an opportunity to forgo liability and regain a semblance of stability in the years ahead while others select the path of fiscal reconstruction with the intent of repaying arrears over a prescribed duration of time.

While bankruptcy rids parties of monetary obligations it taints credit records for prolonged periods thus restricting lending privileges. In contrast modification defined by frugal means and disciplined attention to a repayment formula could yield the following benefits: lower secure debt payments, reduction of the elimination of interest rates and penalties, improved credit record and scores and a possibility of expunging the economic burden in many instances within 36 to 60 months.

An illustration of exemplary debt management accents the Hildebrandt family of New Richmond, WI who are the proud recipients of the 2009 Professional Achievement and Counseling Excellence Client of the Year Award. The Hildebrandts a family of five gained coveted attention via The National Foundation for Credit Counseling for eliminating a debt of $106,000 owed to 11 credit card companies, other creditors and family members in 4 years and 4 months – 8 months ahead of schedule.

With the assistance of Consumer Credit Counseling Service in Stillwater, MN that negotiated a favorable interest rates and reduced payments plus steadfast deployment of domestic adjustments Russell and Kandy Hildebrandt endorsed a rigid agenda that entailed a monthly payment of $2,000 to CCCS for coverage of all obligations to the creditors. Russell, a chemist at an environmental lab in Blaine, WI acquired a second job as a janitor in a grocery store at a wage of $10 per hour – a feat that sometimes constrained him to seek refuge in his car at nights for lack of funds to drive home and increased his weekly work hours to 100 for at least 4 years. Meantime Kandy, a housewife balanced the budget by purchasing generic foods, clothing and additional items at thrift stores, online and at yard sales for the household which included teen aged twin daughters Holly and Heidi and 3 year old son Joey. The family even avoided the temptation of sharing gifts at Christmas and more importantly buying a second vehicle.

The success story aforementioned is attainable by others providing sacrificial deportment is a prime ingredient towards the solution. Whereas the likes of CCCS and AmeriDebt provide expertise at a cost, the client/s must exercise determination and to a lesser extent adroitness. In essence as appropriately confirmed by the article entitled, “The Truth about Debt Management” debt management is 80% behavior and 20% head knowledge.

Internet Marketing

By: Leroy A. Binns Ph.D.

Over the years the advent of technology has maximized modes of marketing. In the past companies solely relied on traditional medium such as print (newspapers), audio (radio) and visual (television) to elevate business yet whereas as all are still critical to broad base appeal a “new age” society now embraces the internet for its instantaneous attraction.

Organizations are always evolving as they compete to provide goods and services to a clientele in perpetual mood of desire. Further the battle for success while characterized by the quality of delivery is also dependent on spontaneity and cost effectiveness hence the appreciation for the internet. Such application is noted for a series of advertising benefits that would otherwise be lacking. The list includes but is not limited to access to a web promotion plan and a responsive opt-in email list, ranking with major search engines, marketing niche with affiliate, reseller and associate programs and utilization of auto responders. Effectiveness by engagement with the internet can also be spurred by writing and publishing press releases online and by sponsoring contests and giveaways via websites.

In specific terms the technological universe of advertising has become personalized with the explosion of blogging. Once a haven for politicians to share their political perspectives blogging an online diary with frequent updates of one to two pages now pays homage to the seller and his ware with product reviews and announcements and postings of articles. It may serve as a link to an establishment’s main site.

Custom tailored techniques associated with high tech commercial activity also embodies direct email marketing and email newsletters that provide personal relationships with potential clients and builds a customer base. Search engines optimization likewise has gained popularity with free access and the possibility of obtaining additional link requests courtesy of other webmasters.

Another strategic advantage is marketing with pay per click search engines which may favor entrepreneurs in increasing the number of site visitors and possibly customers. In addition while caution is advised as a cost is incurred for the use of e-zine as a source of advertising and publishing articles it remains a conduit for traffic to commercial sites.

The partnership between the internet and business extends to traffic and banner exchanges which determine the amount of displays afforded the user’s page on the network based on number of sites visited. Besides, social bookmarking also opens a window of possibilities – a creation of the web 2.0 movement of 2006-07 with an interactive and user friendly procedure that via the likes of Technorati entertains the ranking of sites thus allowing supplementary exposure by virtue of popularity.

While the social community network comprised of Facebook and Myspace are primarily receptacles of personal pages and audio content commercial contacts emerge enabling direct traffic to websites. The same is true of offline approaches which may utilize print media, brochures, tee shirts, pens, cups, and bumper stickers to name a few in earnest to attract similar attention.

The internet with its vast capacity has forever transformed the world of business and in so doing advanced curiosity and insight into a future of immeasurable potential.

Go Green

By: Leroy A. Binns Ph.D.

In an era of conservatism and social awareness the green revolution has become a global sensation as its message is reflected in deeds impacting every aspect of our daily lives. This phenomenon transcends age, race, class, religion and culture by engulfing human demeanor towards social advancement, wholeness and a cleaner environment.

Eco/wellness friendly debates encompass but are not restricted to healthy discussions on our most frequently used commodities electricity, water, gasoline and food. Unlike matters of religion the doctrine is consistent in its advocacy of responsible behavior and fitness and consequently encourages engagement towards utopia.

On a magnified scale a former professor at Massachusetts Institute of Technology William Weihl was instrumental in proposing a 1.6-MW solar system for Google headquarters and redesigning the company’s data center that currently uses 50% less energy. Nonetheless the language is oftentimes simple. Home occupants are encouraged to consume less energy and are informed that the implementation of prescribed measures will in turn promote longevity of electrical appliances and yield financial savings. Some examples of recommendations are as follows:

Adjust thermostat

Turn lights off when not in use

Replace conventional light bulbs with fluorescent light bulbs

Reduce the use of dryers if possible by drying clothes outside

Purchase electronic equipment that is energy efficient

Save energy by installing a devise that prevents the return of power to the power grid while not in use

When warranted seal leaks and add insulation to avoid the loss of electricity

If financially feasible install solar panels to reduce the use of electricity

 

Preservation is also the theme applicable to the usage of water which if accurately observed will attain comparable monetary outcomes. Suggestions most commonly emphasized are:

Refrain from indulging in baths and long showers

Conserve on water while washing dishes

Utilize clothes and dish washing machines only when fully loaded

Fix water leaks

Wash automobiles at the car wash

Avoid excessive use of sprinklers or hose with regard to lawn maintenance

Whereas there is a consensus on fuel consumption in relation to cost and effect on the individual consumer and society, mode of transportation is subject to variance in application. A close to perfect demonstration highlights Vauban, a community of 5,000 residents in southwestern Germany that has refocused its attention on transportation. This town of generous green spaces and bicycle paths is also known for many streets void of vehicles as the inhabitants rely on a public regime of thrifty buses and trams or car pooling to venture long distances. In contrast other depictions reference the conversion of cooking oil to vegetable diesel fuel which does not emit sulfur oxides and half the particular matter of conventional diesel and car sharing as defined by zip and flex cars. The introduction of hybrid vehicles and its reception notably by the increased production of said automobiles worldwide is testament as well to a shift in consumer belief which now entertains fuel efficiency and a pollution free environment. The charge therefore entails the following as indispensable alternatives to offset fossil fuel prices, congestion taxes and parking cost.

When possible carpool, bike or resort to mass transit

Utilize car sharing options provided by the likes of zip and flex cars

If unavoidable purchase fuel efficacious automobiles

In a campaign to diminish health and environmental hazards Go Green extends its intrusiveness to dietary concerns. According to Dan Barber executive chef and co-owner of Blue Hill at Stone Barns, “Simply put people have to cook more. If we cook in our kitchen with fresh foods we end up opting out of where most of our food is coming from, which is to say a conventional food chain that makes profits off processing, off adding to what is raw material. If we just cook more, food becomes less processed by definition.” Moreover an admission that inexpensive food is partly dependent on an abundance of water and a consistent weather pattern fuels enthusiasm for an infrastructure that promotes local farming hence reducing elaborate distribution networks and costs. In essence the battle cry favors:

A switch to organic foods

Support for local producers

The production of seasonal foods which require less energy to produce than foods grown off season

Consumption of in house filtered water as opposed to bottled water to prevent expense and waste

Green continues to be the anticipated color of success as governments partner with business and private entities offering rebates and tax relief as encouragement for installation of weathering and/or energy efficient appliances. Nevertheless the sustenance of this endeavor over time hinges on a steadfast commitment amidst unforeseen challenges and access and availability to pertinent resources.

The New IMF?

By: Leroy A. Binns Ph.D.

Amidst painful memories of excessive intrusion, the IMF a Bretton Woods configuration and off shoot of the Great Depression is once again saddled with the responsibility of lending short term loans to countries attempting to restore economic stability.

Throughout the passage of time the bank has been accused of obstruction of social justice demonstrated by the economic fate of several Third World countries and later relegated to isolation. Nonetheless confronted with international pandemonium once prosperous nations are now financially deprived of cash flow and like the developing community is in search of a lifeline.

Consequently a consensus at the G20 summit in London last April verbalized a need for the fund to expand its role within the world economy. Despite the capacity to lend upwards of $150 billion a year attendees in fear of inadequacy during a period of intense turmoil pledged to increase the institution’s coffers from $250 billion to $750 billion.

Some Anticipated Resources

 Donors                                                                        Amount

China                                                                           $40 billion

Japan                                                                           $200 billion
Canada                                                                        $10 billion
Norway                                                                       $4.5 billion
America                                                                      $100 billion

Conscious of the stigma associated with its lending practices and urgency to exhibit intellectualism and acquire legitimacy in matters of diagnoses and recommendations the establishment seeks to repair its tattered image by the provision of new lending schemes and the attachment of altered conditions to the disbursement of loans. Yet with a protracted chronicle of contribution to economic disintegration many governments will likely opt for refuge with crisis insurance as protection from the bank’s rogue behavior. To override such apparent trauma the summit’s heads of state also announced implementation of quota changes for 2011 which will restructure the balance of power that determines fair access and treatment.

 IMF Votes

 Nations                                   Existing                                  Proposed

America                                   16.77%                                  16.73%

Japan                                         6.02%                                    6.23%
Britain                                       4.86%                                    4.23%
France                                       4.86%                                    4.23%
China                                         3.66%                                    3.81%
Russia                                        2.69%                                    2.39%
Belgium                                     2.09%                                    1.86%
India                                           1.89%                                    2.34%
South Korea                               1.38%                                    1.36%
Brazil                                          1.38%                                   1.72%

With the financial prerequisites of the world’s poorest countries at an all high of approximately $25 billion to $140 billion and advanced countries facing shrinking budgets in light of an unprecedented recession the IMF is perturbed that aid could dwindle by an estimated 30% when compared to the previous year. Furthermore the fund is knowledgeable that the crisis will trigger a severe impact on growth and external stability in low income countries and has identified a rippling impact as at least 26 countries many of which are oil producing states remain vulnerable to the global meltdown and collapse in commodity prices.  

Setting the tone for the debate is Dominque Strauss-Kahn the former French finance and economy minister and managing director of the IMF who predicts exports from low income countries could decrease in 2009 by 16% with remittances in play during the same period by 10%. He has also indicated that direct foreign investment to low income countries would suffer by as much as 25%.

In an effort of assurance at a Resources for the Future conference in Washington DC Strauss-Kahn told his audience that the days of IMF heavy handedness was over and encouraged the IMF to champion the cause of countries in dire needs. “It is no secret that our lending programs attracted some criticism over the years. People said our conditions were too harsh, too intrusive or even misguided. I accept some of that criticism.” We made mistakes, but we always try to learn from our mistakes. He then proceeded to mention, “We need to make sure that the medicine does not harm the patient. Over the past few years we have been streamlining our conditionalities, focusing on core policy measures that are critical for microeconomics stability, poverty reduction and growth.”

While sympathetic of transfiguration some remain cautious. Journalists Kurt Nimmo and Susan George are opposed to Strauss-Kahn’s interpretation of evolution which promotes emerging economics such as China and Brazil under current conditions. Unfortunately the Chinese miracle as the symbol of atonement might encourage forced illegal and/or unethical labor in which sub-subsistence living conditions for billions of people will be ignored in exchange for cheap goods and services. Both discredit the IMF for its shortcomings in association of human value with nation building.

As recent as the turn of the century the IMF has shown disregard for sovereignty enforcing stringent political reforms while simultaneously overlooking its complicity in insufficient political will or corruption. However the gatekeeper as it is oftentimes labeled for its influence in forging relationships between governments and creditors has been held liable for social unrest resulting from structural adjustment policies that minimize the function of states to provide basic social services to their inhabitants. The following is a synopsis of the ills of the IMF

Common Symptoms of Past IMF Partnerships

Reducing government expenditure via public sector redundancies, frozen salaries and diminished health, education and social welfare services.

The privatization of state run industries producing massive terminations void of social security provision and the loss of services to remote regions.

Currency devaluation and export promotion creating the soaring cost of imports and reliance on international commodity markets

Raising interest rates to rectify inflation. Such extinguishes many small companies.

Removal of price controls resulting in rapid prices rises for basic goods and services

 

On an individual basis the system’s disruption of democracy has been visualized through acts of resentment across continents.

Country Reports

Year           Country                   Amount Borrowed              Outcome                

1998          Brazil                        $18 billion               a tribunal on foreign debt and 

                                                                                    referendum denounced the IMF
                                                                                    and a 24 hour strike was imposed.

2000          Argentina                  $7.2 billion             congress picketed, demonstrations
                                                                                    nationwide some led by unions and  
                                                                                    the Catholic church

2000          Ecuador                     $304 million         indigenous people planned week long

                                                                                  protest calling for the president’s
                                                                                  resignation and an end to austerity
                                                                                  measures imposed by the IMF,
                                                                                  trade unions and the church impose
                                                                                  strikes against IMF reforms.  

1999        Zambia                        $349 million          President Frederick Chiluba blames

                                                                                   the IMF for the country’s economic
                                                                                   crisis. Scores of protesters demand an
                                                                                   end to IMF relations.

 2000           Kenya                      $198 million          opposition party and NGOs protest,

                                                                                   President Daniel Arap Moi complains
                                                                                   of harsh conditions attributed by the
                                                                                   IMF.

Since then the IMF has introduced its new facility which is a agenda for monitoring economic policies in countries not seeking the bank’s assistance. Yet initially Abuja was quoted as saying although such policies would be designed and owned by the respective governments these promises are awaiting fulfillment. Moreover former Canadian Finance Minister Ralph Goodale and US Treasury Secretary John Snow have alluded to the new facility as continuity to impose its conditions on countries even when their obligations to the IMF had been officially terminated.

In an extension of a foregone conclusion former IMF Managing Director Rodrigo Rato concurs “the implementation of this new arrangement called a policy support agreement would represent little change from the monitoring the IMF is already doing in Nigeria. In fact the IMF has monitoring programs with a number of countries that are not borrowing money. By giving these programs a formal name and definition and by publicizing them with supporting papers and press conferences the IMF is making a political point: it is saying more straightforwardly than before that it will be available to impose its views on Southern countries even if they manage to extricate themselves from the multilateral debt and IMF programs.” If such is true what does the IMF have in store for Jamaica during a second encounter?

While many still recollect the first that crippled the island under the socialist leadership of the late Michael Manley during the mid to late 1970s and are therefore skeptical of further association others are convinced in view of globalization and the current international crisis the bank must espouse transformation to sustain viability. Colin Bullock, a lecturer within the Department of Economics at the University of the West Indies, Mona shares his conviction by way of the following characteristics

There is more concentration on overall coherence and quality of a program avoiding the detailed quantities specification of a large number of targets all of which must be rigidly observed every quarter.

There is preference for countries to own and if technically capable specify their own economic program

The IMF currently disregards preconditions for negotiation and is willing to acknowledge a plurality in means to achieve an end.

The IMF has rescinded the notion that all balance of payment problems result from an overvalued exchange rate in need of correction by depreciation.

The IMF has become more flexible in its stance against subsidized interest rates and directed credit.

The IMF has long denounced its position that market forces are automatically and always well intentioned for the disadvantaged.

Political scientist Richard Crawford as well is of the opinion that the IMF has adopted tolerable lending conditions by recalling the fact that the bank has agreed to allow countries such as Belarus, Pakistan, El Salvador and Iceland to develop their own formula for development. In contrast executive director of the Caribbean Policy Research Institute Marie-Kim Spence is unsure as to how countries such as Jamaica would qualify to benefit from new lending arrangements such as the IMF’s credit line for emerging market economies. She also questions the effectiveness of rules lacking qualifications regarding timing for the implementation of structural reform or the dismissal of recommendations by the IMF.

Jamaica has been a casualty of reverberating shocks from the worst global financial calamity since the Great Depression.

The Jamaican Dilemma

Budgetary Revelations (in Ja dollars)

Imposed taxes                                                 $47.6 billion (Fiscal year 08/09)

Expenditure                                                    $201 billion (April to Sept 09)
Total income                                                   $135 billion (April to Sept 09)
Deficit                                                             $14 billion (April to Sept 09)
Total Deficit                                                    $52.6 billion (Fiscal year 08/09)

Oil prices in particular which is currently worth $3 billion per annum exploded from 2007 into the succeeding year. In fact the spiraling increase in the cost of oil and rice accelerated by 38.9% and 138.6% respectively between December 2007 and late July 2008 jolting inflation to a high of 26.5% by mid 2008 and public debt obligation at present to 56% of the total budget. Misfortune also included foreign remittance valued at a monthly decline of $20 million and a disruption within the tourism industry and elsewhere restricting capital from private international creditors.

Unfortunately the Economist Intelligence Unit foresees the Jamaican economy will decline by 1.6% in 2010 followed by unpersuasive growth of 0.2% in 2011 a contraction largely victim to crime and a burdensome public debt. Such debilitating analysis is accompanied by the regime’s inflation of up to date estimates of expenditure by $19 billion from $547 billion to $556 billion and an inability to realize its most recent projected $16.8 billion budget curtailment by at least $5 billion due to an acute reduction in revenue. These disturbing circumstances have led to speculation of necessary borrowing from multilateral institutions at interest rates between 1.5% to 4.5% on $400 to $500 million and a triple c rating, down from triple c + and a notch above the default rating from Standard & Poors.

In the end the government’s incapability to access fiscal support from the open market resulted in a February agreement with the IMF which requires effective public reforms to reduce the budget deficit, the creation of a debt strategy to reduce debt servicing costs and the implementation of reforms to the financial sector to reduce risk in return for the sum of $1.28 billion to be dispersed over a 27 month period.

Partial Disbursement Plan of the IMF Loan to Jamaica

Month/Year                                                                 Amount

Feb 2010                                                                     $650 million

May                                                                             $100 million
August                                                                        $50 million
Nov                                                                             $50 million
Feb 2011                                                                     $200 million

According to Strauss-Kahn, “Protecting the most vulnerable Jamaicans is a key concern of this program. To help soften the impact on the poor, the program allows for at least a 25% expansion of the social safety net, in particular the Program of Advancement through Health and Education (PATH) and the school feeding program. The coverage of these programs will be expanded to about 360,000 people from the current 325,000.”

In addition the IMF has responded to its cynics and multiplied its financial offerings to destitute states by raising the bar from $1.5 billion in 2008 to over $3.5 billion by early 2010. A portrait of the contemporary persona engulfs

Mobilization of additional resources – encompassing the sales of gold to boost the fund’s lending potential to approximately $17 billion through to 2014 with $8 billion for the first two years.

Interest relief – zero payments on outstanding concessional loans to indigent states until 2011

Improved concessions – a regular examination of annual interest rates to preserve a greater level of concessionality.

New financial instruments – extended credit facility (flexible medium-term support), standby credit facility (short-term and precautionary needs) and rapid credit facility (emergency support with limited conditionality).

At this point in time oil rich Nigeria is but one of a few specimen of a maturing IMF relationship through a policy support agreement which was introduced to promote debt reduction on a $28 billion loan with the Paris Club. In words of adulation a previous Finance Minister Ngozi Okonjo-Iweala acclaimed, “We are the pilot for the program. The IMF makes sure it is as stringent as an upper credit tranche program and then monitors it like a regular program but the difference is that you develop it and you own it.” Thus far a combination of prior oversight and the new arrangement which imposed spending restrictions and reorganization has been credited during its first years of implementation for a decrease in the nation’s inflation rate from 20% to 10% and a surge to $20 billion in foreign reserves. Another glimmer of hope is the potential to build on the country’s partial payments of 50% ($1 billion) for two consecutive years to the Paris Club lenders.

In summation it is premature to predict favorability for the IMF as its vibrancy is dependent on unwavering loyalty to enhanced communications with its associates, updated surveillance of financial stability and intensification of international coordination and policy making processes. Reflection of today’s global realities is pivotal to the establishment’s mission of realignment.