ECONOMIC DEBATE ABOUT DEVELOPMENT IN BELIZE, BETWEEN THE SUCCESSFUL BUSINESS PEOPLE AND THE SALARIED ACADEMIC BUREAUCRATIC MIND SET.
That
is a bunch of baloney! First off, to be self reliant, we need to NOT
EVER AGAIN use commercial debt. If we force ourselves to do so this
way, that is a good thing. It is pretty hard for a state the size of
Belize geographically with the small population it has, to do much more
in the sense of economic advancement. As our population grows, so will
the economic opportunities, particularly in light manufacturing. We
lack the entrepreneurs among the younger generation coming up. It isn't
the lack of opportunities, but lack of self starting, bootstrap
capablility. A mental outlook problem! That is coming, slowly but
surely, as our numbers grow. We can short cut that a bit, if we
encourage successful business types from other countries. That have
already learned the lessons of entrepreneurship. Most lessons of which,
can only be learned by trial and error. Academic education helps, but
the real test of learning is HANDS ON practice. Nothing like getting
your feet wet and going broke small scale, a few times, to teach you the
do's and don'ts of successful business experience. If you want to
blame the credit crisis on somebody, name them? Said, Fonseca and
Godfrey. ( End of story ) Blame also a country whose media, is port
town based and think they know it all. They still believe in GIMME
DOLLAR, or BORROWING is the only way to get ahead. They do it
differently in the districts, it is pay as you can go, and some at least
are learning to sell shares in their business ideas, to raise capital.
THAT IS THE WAY TO DO IT PROPERLY. Since our culture is dominated by
the CREOLE lend me money loan crowd of the port town, until that
changes, nothing will much happen, that and the buildup of our young
human capital, outside of the port town. The economy is going great in
the Mennonite areas, they only go to PRIMARY SCHOOL level. Then they
LEARN by HANDS ON. Trial and error!
We also have too much in overhead for infra-structure for our small population base.
Nothing you can do about that, but suck in your tummy and tighten your
belt, and be leaner and persevere more. Success in economics comes with
BULLDOG tenacity for your dreams. Not from a College or University.
Buses leave every day down here on the highway, picking up people to
harvest citrus from the trees. Where are those unemployed of the port
town? Too much work picking citrus? Pah! Let them cry and shoot each other over pennies and personal slights.
We neither NEED, or WANT foreign loans and credit, other than
infra-structure stuff, in a smaller controlled manner from regional
institutions designed for that purpose, at low interest rates. Belize will grow stronger economically and better, as the population naturally grows and
apply the lessons of selling shares in your new venture to family and
friends. e.g: Espat family I notice in the media just SOLD their shares
in Belize GRACE KENNEDY to the Jamaica outfit. Now THEY did it right,
not the port town idiot theories on LEND ME THE MONEY, or GIVE ME DOLLAR
mentality.
From: innovate belize
To: bz-culture@psg.com
Sent: Sunday, October 14, 2012 8:18 AM
Subject: Bz-Culture: Small Caribbean states can't afford to follow Greece ?
SOME small Caribbean countries are in danger of acquiring the reputation as failed pariah states.
States are regarded as failed for three reasons:
First, they have shown themselves to be incapable of successfully
performing the first task of a state, which is to keep law and order
within the national borders of their territories.
Second, they are incapable of protecting their populations from external
aggression and invasion, as is evident in the uncontrolled penetration
of transnational crime and drug trafficking.
Third, they are not able to achieve self-reliant sustainable economic development.
Their foreign policy is usually to seek external assistance from Taiwan
to Venezuela, dependent on foreign aid, lobbying for special trade
arrangements and pleading for debt cancellation.
They are pariah states because they default on their debt-servicing and
sell economic citizenship to persons of dubious reputation, providing
safe haven to questionable off-shore financial institutions active in
drug production and transshipment. In addition, like in many other
countries, there is corruption, tax evasion and human trafficking.
Now,
some of our small Caribbean countries are doing further reputational
damage by defaulting on servicing their debt. The list of defaulting
states includes Belize and Grenada, who have made a fundamental error in
strategy by following Greece.
They
failed to appreciate that Greece could default because they, given the
need for viability of the Euro and the political unity of the European
Union (EU), matter to the EU.
When
a small Caribbean state defaults it does not matter to anyone, it does
not threaten any financial institution and the markets cannot afford to
be merciful because it sets a precedent that perennial bad debtors would
seek to emulate.
When
a small Caribbean state defaults it gives up the already limited
leverage which is the threat of default, thereby weakening its
bargaining position. To default is to give up any possibility of
bargaining with creditors. After the default, creditors let these small
states sweat, then the financial institutions and consultants charge
exorbitant fees to arrange a restructuring of the debt which, when
accomplished, involves a new higher interest rate and a long repayment
schedule and maybe a small write-down of the debt.
Meanwhile,
the prime minister and the finance minister (if they are not one and
the same person) and the financial secretary and governor of the central
bank, are forced to do the diplomatic rounds in Washington, DC; New
York; and London, making earnest, if not credible, pleadings of their
inability to pay because of the global economic crisis.
They
express their contriteness and willingness not to do this again if they
get a fresh start. They pledge to accomplish what they have never done,
which is to practise proper fiscal management and accept all technical
advice from the International Monetary Fund.
Default
is not a workable negotiating strategy for small states because the
actuality of default affects no government, financial institution or
financial market. Whereas all lending countries know they must beware of
Greeks bearing debt, the only people affected by a default by Belize
and Grenada are Belizians and Grenadians.
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