Wednesday, April 28, 2010



Belize is your typical two political party SOCIALIST STATE, like much of the British Caribbean. ALL the tax revenues go to provide the socialist equivalent of BIG OMNIPOTENT government. We don’t have the POLITBORO of the communist one party states. What we substitute is the CABINET management team instead of a POLITBORO. The only difference is in the name.
ALL the government tax revenues pay for the biggest industry in the whole country. BIG SOCIALIST GOVERNMENT. The socialist part is because whichever political party gets to control the government ( that is the democratic choice ) all the family, friends, relatives and party hacks take over the government jobs from the party before. You sort of think with the rise in education levels, we would get more efficient and a better working government over time. Doesn’t work that way in practice though, this is the one thing we have in common with other socialist states.
Infra-structure is done by foreign loans, grants, NGO’s, visiting US Army Corp of engineers training battalions, church groups, and other machinations outside of the tax revenue base. The latter used exclusively to provide jobs to all and sundry with connections to the political party in power.
This is the debtor structure that governs socialism. Provide a lot of jobs mostly is the idea; this the biggest industry in the country and thus what small part of improvements in life style come along, are usually from the small capital base in the country of private enterprise. It is not much, because Belize is an agrarian country. This makes Belize a wonderful place to live because of simple self sustainability. The climate makes it all possible. There is some tourism, but that is limited. Agro processing is starting and that is going to help a tiny bit. We have no light manufacturing and unlikely to do so because of the tax theories of socialism. The inefficient bureaucracy expands according to the foreign loan borrowing capacity of the country, providing secure jobs. The tendency in one party socialist states, is to tax, license and bury in bureaucratic expensive red tape, small private enterprise into oblivion. That more or less is the same in Belize, though we only have a one party state, done by elections one at a time.
The National debt is running in a range between 76% and 127% of GDP over the last 15 years and seems ordained to remain in this range. Paying for infra-structure work is becoming more and more difficult to get more loans for, and our BONDS are JUNK BONDS, though for some reason we have not yet defaulted? We probably should, to give the foolish capitalists a lesson in lending to Socialist Belize.
Life in a simple agrarian society is still good though. When the taxes get too high, people simply have the choice of stopping buying. Thankfully, school gardens are the norm in our school system now. We can at least feed ourselves. If you like the simple rural country lifestyle, living in Belize is very good though.

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