Showing posts with label free trade. Show all posts
Showing posts with label free trade. Show all posts

Sunday, October 21, 2007

Loonie Tories Blaming The Victims


Like their Green Policy the Conservative Government likes to blame the victims. In this case Finance Minister Jim (Halloween Surprise) Flaherty takes a shot at Canadian consumers and retailers. He wants retailers to reduce their prices based on the strength of the Canadian dollar.


The Canadian government plans to try to persuade retailers to cut prices more quickly as the Canadian dollar rises "Cross-border shopping quite frankly is not good for retailers in Canada, nor is good for tax revenues for the governments in Canada," Flaherty said.


And instead of intervening in the market he asks us as consumers to do his job for him.

He is posturing of course, and like his asking banks to reduce ATM fee's he is blustering and blathering knowing that it is all for naught expect to appear to be doing something.

Now if he really wants to do something he would get together with Foreign Affairs, call in the U.S. Ambassador and put pressure on American exporters to drop their prices. But of course considering that this government is willing to sell out Canadian industry, the softwood lumber agreement comes to mind, for better political relations with their Republican cousins in the White House, well that would be a bit much to expect wouldn't it.

Diane Brisebois, Retail Council of Canada president, said the true culprit behind high prices is not the retailers but the suppliers of big recognizable national brands. She said she hopes she can set Mr. Flaherty - and Canadians - straight about why prices in Canada are generally higher than those in the United States. Suppliers of national or global brands charge Canadian retailers 20 to 50 per cent more than they charge a U.S. retailer for the same item, she said.

SEE:

Canadian Banks and The Great Depression

Forward To The Past

America's Debt Economy

Tax Cuts For The Rich Burden You and Me

Greenspans Legacy

Blaming The Victim


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Wednesday, September 26, 2007

A Contient of Children

If the Harper Government is so concerned about ending; violence against children, their exploitation and impoverishment, then its abandonment of the former Liberal government focus on African Aid is the biggest moral betrayl of those aims.

Because at the beginning of this century, seven years ago, one in two Africans were under 18. In other words 50% of the continent is populated by children. Many of them war children.

And as he made clear at the Council on Foreign Relations yesterday Harpers development and foreign aid focus is not Africa. He has abandoned the continent of children for a policy of neo-liberal colonialism in this hemisphere.



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Saturday, September 01, 2007

Harpers Latin American Success

Remember that mission to Latin America and the Caribbean that the Harper went on in July to promote development and bi-lateral trade. He missed Cuba, Venezuela, and Bolivia, but made it to Chile. Looks like the mission was a success.

Scotiabank to buy major stake in Chilean bank


Of course we just lost another thousand jobs at GM in Oshawa, despite all the corporarte welfare they got and the previous cuts announced this spring.

And Stelco just got bought by U.S. Steel.While we de-industrialize while watching Canadian resource companies get sold off to foreign capital, Canadian Banks go offshore to invest.


Of course when we think of trade and development Banks buying Banks is not what comes to mind. But thanks to all those bank fees, ATM charges, and tax breaks from the Canadian Government they have excess profits to invest. Profits made off the backs of their workers and Canadian taxpayers.

Bank of Nova Scotia's (BNS/TSX) international group may have taken a back seat to its domestic cousin when the company reported stronger-than-expected third quarter results Tuesday, but it still proved there is plenty of money to make overseas.

Profits at Scotiabank rose 9% year-over-year to $1-billion in the quarter, as domestic operations rung in profits of $391-million, up 23% from last year.

The international group, for their part, turned in profits of $270-million, a 15% increase from the year previous, after Scotia CEO Richard Waugh said operations in Peru, the Caribbean, South America and Chile all reported strong results.


SEE:

Contientalism

Afghanistan or Africa

Bank Union

Left Wing Pragmatism

Banks Profit From Job Cuts


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Friday, August 10, 2007

Tin Man


Gee who do you think might have been responsible for this?
In the grip of speculators, tin hits 18-year high
And has lots of cold hard cash to invest?


China

China is also one of the major tin-producing countries; the main producing area is the Gejiu complex in Yunnan which has accounted for a large proportion of the total output in China for many years.

Total mined production of tin in 1990 (as ores and concentrates) was 211,000 tonnes, with the major producing nations being Brazil, China, Indonesia, Malaysia, Bolivia and Thailand.

Thus an alliance that once was part of the non-aligned anti-Imperialist bloc now becomes aligned with the new Imperialist player on the block, who can throw some coin their way in the global marketplace.


SEE:

Turning Lead into Gold

China Burps Greenspan Farts Dow Hiccups

China: The Triumph of State Capitalism

China No Longer Red Nor In The Red

US vs China for Global Hegemony

Afghanistan or Africa


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Tuesday, August 07, 2007

Softwood Redux

Harper said this would never happen again when he forced Canada's Lumber industry to accept his billion dollar bribe to the Americans with his Softwood Lumber Accord.

The U.S. asked an independent panel to resolve a dispute over a softwood lumber accord with Canada, saying the country is ignoring a cap on exports to the U.S. and that Canadian firms are still getting unfair subsidies.


Just like Harpers new formula for Provincial transfer payments were to end the years of bickering over equalization.

Didn't happen.

This is a government that likes to say it doesn't just talk it takes action..... forgetting Newtons Third Law.



SEE:

How The MacDonald Commission Changed Canada

Job Loss It's The Environmentalists Fault

There Is No Free Market

Behind the Eight Ball

US Housing Market Crash

Between a Bloc and A Hard Place

Softwood Republican Slush Fund


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Monday, July 30, 2007

The New Imperial Age


China's Imperialism. In Africa, the Ugly American has been replaced by the equally ugly Chinese trader.

The People's Republic has been so shameless in its wooing of other nations that it now receives the type of anti-imperialist criticisms once reserved for America. It stands accused of exploiting foreign populations for economic gain; of stacking the international political deck in its own favour; of ploughing forward with no regard for environmental sustainability.

As trade and diplomacy between China and other countries in the developing world has skyrocketed, America's relationship with poor countries has crumbled – nurtured by years of unpopular wars, military interventions and one-sided economic policies.

In East Asia, where many of China's new friends are located, the animosity toward the U.S. veers on cartoonish. In Seoul, roughly half of young people polled said their country should support North Korea in a nuclear war with America. Kurlantzick doesn't say this may have been a knee-jerk reaction to a fresh outrage – U.S. soldiers crushed two 14-year-old South Korean girls in an armoured vehicle – but the sentiment is widespread.

In Africa, a continent wooed intensely by Chinese officials, the U.S. has likewise soiled its reputation to China's benefit. America even threatened poor, famished Niger with sanctions when it tried to support the International Criminal Court, which the U.S. opposes.

As America rolls back from Africa, cutting aid, China has moved – straight into the worst neighbourhoods. China now controls about 40 per cent of Sudan's oil consortium and regularly courts mass murderers such as Zimbabwean dictator Robert Mugabe.

But China's support of African despots is well documented. Kurlantzick is valuable because he traces, first-hand, the cutthroat romp of Chinese industry all the way to Latin America.

Kurlantzick notes, though, that China's efforts haven't been seamless: There is anger at hollow trade deals; resentment at the huge trade deficits; protests by Africans upset by Chinese firms' preference for exported Chinese labour.

SEE:

China Burps Greenspan Farts Dow Hiccups

Neo-Liberal State Capitalism In Asia

China: The Triumph of State Capitalism

US vs China for Global Hegemony

China No Longer Red Nor In The Red

Free Trade Not Aid

Bureaucratic Collectivist Capitalism

Russian Oligarchy

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Sunday, July 15, 2007

Harpers Latin America Tour

Harper leaves on his mission to Canada's trading partners in Latin and Central America and the Caribbean. The small number of countries he is visiting shows this trips is all about being Canada's salesman for our friendly Imperialism in the region.

Whether it is promoting our investment interests in Haiti, or those of Barrick Gold in Chile, or the role of the money laundering Scotia Bank in the region. Canadian miners are big investors in the Caribbean and Latin America, and their impact on the environment leave much to be desired.

It is a natural extension of the Conservatives contientialism. They have abandoned aid to Africa, a Liberal policy, for selective aid to countries we have sent our military to, or have investment interests in.

Ironically one of the Caribbean countries we have major investments and influence in is not being visited by Harper, Cuba.

Harper's itinerary is also packed with meetings with Canadian investors in the region, and with speeches to local economists and businessmen.

In Santiago, he will celebrate the 10th anniversary of Canada's free-trade deal with Chile, tour a new Scotiabank office, and stop by the local headquarters of Toronto-based Barrick Gold Corporation, which is developing a highly controversial mine in Chile.

"It will be very disappointing if the prime minister returns from this trip and it simply has been a business-as-usual approach - of trying to sign as many new contracts as possible, slapping leaders on the back, talking about how investment is going to flow and how new commercial opportunities are opening up - without any significant attention paid to these very real human rights concerns," said Alex Neve of Amnesty International Canada.

Well Alex be prepared to be disappointed.

See:

More Munk-Key Business

Haiti Quebec's Shame

Haiti Canada's Colony

Haiti Atrocities

Canadian Imperialism

Gildan Sweat Wear

Gildan Sweat Shop Success Story

Gothic Capitalism Redux




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Monday, June 18, 2007

How The MacDonald Commission Changed Canada

With the Conservative governments announcement of further bi-lateral free trade agreements, we should return to the roots of this policy. One that was developed by the Liberals over twenty years ago. Credit where credit is due, the Liberals set the agenda for the development of Free Trade which the Conservatives under Mulroney and Harper have merely inherited. Proving once again the axiom, Liberal, Tory same old story.

Tracing the roots of Canada’s contemporary involvement in North American free trade back to the Royal Commission on the Economic Union and Development Prospects for Canada in 1985 – also known as the Macdonald Commission – Gregory J. Inwood offers a critical examination of the commission and how its findings affected Canada’s political and economic landscape, including its present-day reverberations.


In this case the recommendations that led to the reinvention of the Liberal government as a Neo-Liberal government began with the Commission they set up under Donald MacDonald.

Macdonald represented the Toronto-Rosedale riding for 16 years as a federal member of parliament. He served nine years as cabinet minister in portfolios such as national defence, finance and energy, mines and resources. He was high commissioner for Canada to the United Kingdom from 1988 to 1991, and from 1982 to 1985, he chaired the Royal Commission on the Economic Development Prospects for Canada (known as the Macdonald Commission).


What the Liberals didn't do was follow the MacDonald Commission recommendations on UI/EI.

Moreover, instead of following the Commission’s recommendation for increasing federal contributions to UI during recessionary periods, the government eliminated all contributions to the program by 1990. And there is no evidence that the government has seriously considered proposals made by the Commission and others for experience-rating the program’s financing.

The intensity rule and benefit clawback of 1996 were sold as “worker-side experience rating” (see Nakamura and Diewert (2000)), but they proved as politically unpalatable as employer-side experience rating of premiums. Indeed, since the mid-1990s and continuing today, the feds’ most notable attitude toward EI is that the program is a handy, covert source of net funds for other governmental purposes.


Nor did they follow the Commissions recommendations for a Guaranteed Annual Income.

The Universal Income Security Program (UISP) was the Commission’s other major recommendation for reforming income security. In essence, the UISP was a guaranteed income scheme that would have replaced other programs such as the Guaranteed Income Supplement, Family Allowances, the refundable child tax credit, child and marital tax exemptions, federal social housing programs, federal transfers to the provinces for Social Assistance (SA), and the income support functions of UI. UISP payments were to be made on an income-tested basis, with a tax-back rate of 20 percent applied to all income in addition to the normal personal income tax rates. The Report stated, “The UISP seems to Commissioners to be the essential building block for social security programs in the twenty-first century.


Instead they applied a neo-liberal approach of tax credits, which increased the taxable income of those who received government supplements. So in effect the working poor, paid for a benefit they received from the government. The Federal government let the provinces off the hook by paying their share, and allowing them to cut Social Assistance on the promise that the savings would go back into broad based public programs for the working poor.

The reality was a claw back of provincial benefits, real cash in your pocket, for a credit chit from the Feds, your tax dollars at work. The ensuing benefit not being taxed, meant that the working poor moved up the income tax scale. Not unlike the current Conservative Child benefit; their so called universal child care program.

Second, beginning in 1998 the National Child Benefit (NCB) System subsumed the CTB and replaced its earnings-related benefit with a substantial cash supplement for lower income households with children. Under agreements with the federal government, most provincial governments reduced their SA benefit rates for children by amounts equivalent to the NCB supplement. Again, this scheme pursued a Commission goal of reducing the disincentives for welfare beneficiaries to seek or return to work. These changes also reduced the break-even
income levels for welfare beneficiaries, though the provinces have not reduced phase-out rates for their own benefits. The “reinvestment” of provincial savings from reduced SA cash benefits into in-kind benefits for the working poor and welfare beneficiaries promoted the lowering of the welfare wall, but the benefit phase-outs further aggravated disincentives for the working poor.

Despite the visible positives from the NCB initiative, the scheme also mirrored the
hidden deficiencies of the Commission’s UISP scheme. That is, the NCB supplement phase-out sharply raised the effective marginal tax rates faced by many working poor and near-poor families. The NCB scheme did reduce the “welfare wall” but simultaneously erected a higher “success wall” keeping the working poor and near-poor from advancing to higher earnings.

What made the MacDonald Commission unique was the near unanimty of the political economists who agreed that Free Trade was the panacea for Canada's stagnating economy. An economy that was no worse off nor better off than any other at the time of global recession. However dissident voices were not to be found amongst the Academics of the day who promoted Free Trade saying There Is No Alternative. And so the Liberals led the push for Free Trade despite John Turners tearful denials in his debate with Mulroney and Broadbent.

Policy makers who want a policy initiative in place may well foster the research to support the initiative. This fostering could come in various forms: commissioning background studies from sources known to favor the initiatives; designing the terms of reference in ways that will yield favorable results; “advertising” favorable results while “burying” unfavorable results; or, reviewing the research with suggestions tilted towards influencing the results or having them presented favorably.

In Canada, the signature recommendation of the Macdonald Royal Commission of 1985, was for a bilateral free trade agreement between Canada and the U.S. That recommendation led to the Canada-U.S. Free Trade Agreement (FTA), negotiated between 1985 and 1987 and implemented January 1, 1989. The research of the Commission was extensive, involving 280 studies done mainly by 300 different academics in 70 volumes.

The importance of academic research to the Commission is also illustrated by the fact that 84 percent of the 1,014 references in the final report are to research studies (67 percent from the academic literature and 17 percent from the background research studies of the Commission which tended to synthesize the academic research). Only 10 percent of the references were to briefs formally presented to the Commission and 6 percent from references to transcripts of the public hearings (calculations from data in Inwood, 2005:181).

The fact that the academic research generally favored free trade while the briefs and public hearings generally involved advocacy positions opposed to free trade, suggests that the research also had a greater impact (Inwood, 1998:18).

The research on trade had a number of important characteristics that likely facilitated its
impact on public policy. It was high quality research done by top researchers in the country and coordinated by a prolific and respected trade economist. The computable general equilibrium models were particularly influential, especially because they captured the indirect productivity enhancing effects of the restructuring that would occur because of the economies of scale for producing for a large market. The research of the Commission generally involved a synthesis of the cumulative stock of existing research, the vast majority of which favored free trade. The near consensus perspective favoring free trade is illustrated by the fact that “only one academic could be found to make the anti-free trade case out of the approximately three hundred hired by the Commission” (Inwood, 1998:35).

This homogeneity of perspectives within economics and the rigor with which they are advanced made economics prominent as a source of policy advice to the Commission (Simeon, 1987). Brooks and Gagnon (1988:109) conclude that this is a more general phenomenon: “There can be little doubt that economists remain pre-eminent among social scientists in their integration with the policy process.”

The research also had champions who made the case for free trade to the Commissioners and to the politicians, and who defended it in the heated public debates that ensued. Trade unions strongly opposed the FTA and organized public forums against it. In countering this, Macdonald (2005:11) acknowledges the important role played by an Industrial Relations academic, John Crispo, for “his robust platform technique which ultimately frightened away the union leaders from contested meetings where initially it was they who had brandished the verbal brass knuckles.”

There were certainly attacks on the research and on the academic case for free trade. However, the attacks tended to be polemic and based on more nationalistic denunciations of free market economics in general. They tended not to provide alternatives based on different methodologies, and the work was generally simply presented at conferences or published in forums of contemporary opinion as opposed to peer-reviewed academic journals (Inwood, 1998:5).


The term neo-liberal was coined in this period to note the shift that mainstream political economists were making in calling for Free Trade, reductions in social benefits, reinventing government, contracting out services and privatization. All these went hand in hand, and while promoted by neo-cons elsewhere in Canada they truly were policies of the New Liberals; neo-liberalism.

Begun by Trudeau and MacDonald they were then carried through in the nineties by Chretien and Martin. The current Conservatives are the beneficiaries of the Liberal restructuring of the state.



While free trade was the signature recommendation of the Macdonald Commission, numerous other recommendations were made backed by labor and social policy research. As Riddell (2005) indicates, many of these
recommendations were implemented into policy, including unemployment insurance reforms; active adjustment assistance policies; income supplements to the working poor; national testing of student achievement; and deemphasizing minimum wages.

In his overall assessment, Bradford (1999/2000:158, 159) concludes: “The Macdonald Commission report remains the essential component reference point for the host of era-defining policy innovations, ranging from continental free trade to restrictions on unemployment insurance and retrenchment of the federal role in social assistance, legislated between 1985 and 1997 by successive Conservative and Liberal governments.”

Freer trade was also regarded as a potentially effective way for the federal government to pressure provincial governments to adopt market-oriented reforms given the substantial control they have over policy initiatives in Canada’s system. This was especially the case since there was a backlash against the nationalist and government interventionist policies that prevailed during the 1960s and 1970s, including wage-price controls, energy price fixing, foreign investment restrictions, government procurement policies, and a state trading corporation to
assist smaller Canadian firms to sell to centrally planned economies (Chant, 2005:14). Such policies were often regarded as contributing to the worst recession Canada experienced since the Great Depression of the 1930s.

Interestingly, while he was previously in political office, Macdonald himself presided over many of these interventionist strategies including a national oil policy, a state-owned petroleum company, government investment in oil developments that were avoided by the private sector, price controls on uranium exports, and the wage-price control program. He attributes his conversion to free trade and less government intervention to: “My experience in the private sector after my departure from government made it clear that state-controlled programs
had failed to achieve the rates of growth to which we all aspire” (Macdonald, 2005:9).

This rejection of nationalist-interventionist policies also occurred for Prime Minister Trudeau who had earlier instituted many of the policies in the 1970s. By 1982, he indicated: “Personally, I remain convinced that the primary engine of economic development must be a dynamic private sector and that the marketplace is in most circumstances the best allocator of scarce resources”

The Liberal reinvention of government in this period meant the whole scale contracting out of government services, in particular computer based IT as well as P3 programs and the sell off and lease back of government buildings. Which has resulted in the the various scandals and boondoggles from the Gun Registry to the RCMP pension fund scandal.

That the Conservatives could get former Liberal Industry Minister David Emerson to cross the floor days after his election to occupy his old cabinet seat shows how interchangeable the two parties are when in power. After all Emerson is simply following through on Liberal policy even as a Conservative.




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Tuesday, June 12, 2007

Afghanistan or Africa

It seems that the Harpocrites while extolling their increase in funding development aid, forgot that Afghanistan is nowhere near Africa except perhaps in the dictionary.

All the recent focus on aid levels, however, could hide the fact that Canadian aid also needs to be made more effective, ie, it should be spent on poverty alleviation. Harper has mandated Afghanistan to become the largest recipient of Canada's largesse. This led world-renowned development economist Jeffrey Sachs to complain, "…the money going to Afghanistan and Iraq is really not development aid but security spending."


And this blast is not from just any old rock n roll celebrity;


Stephen Lewis slams G8 as morally bankrupt

The G8 countries are spending $120 billion annually to deal with conflicts in Iraq and Afghanistan, but they can't find half that amount to deal with HIV/AIDS, Lewis said.


Meanwhile Harper announces an new policy direction for Canadian aid in order to end any association of HIS government with past, Liberal, governments that pushed for greater aid for Africa.

Answering a question in the House of Commons yesterday, Foreign Affairs Minister Peter MacKay pointed out that "Canada will double its international assistance from 2001 to 2010, with assistance to Africa also doubling in that time frame." Canada plans to increase its Africa funding to $2.1 billion for 2008-09, from $1.05 billion in 2003-04, and African aid makes up 40 per cent of all Canadian foreign aid. What's more, Canada's foreign aid budget is growing by eight per cent per year.

"Canada’s on target to meet those obligations," Harper said. "I think we’re the only country on target to meet them, and to meet them early, in fact."

The Prime Minister’s Office was unable to provide documentation to prove his claim. A senior Canadian official said Canada’s aid budget for Africa will amount to $2.1 billion in 2008-09, but DATA, an aid agency co-founded by Bono, estimates Canada will need to increase aid by $479 million this year and next to meet its commitment. Only Japan and Britain are on track to meet their promise, DATA says.

Stronach said the amount set aside by the Conservative government falls $700 million short of that, and Harper is responsible.

Layton said the prime minister has reduced Canada's commitment to foreign aid while telling the world that it wasn't doing so.

"Mr. Harper simply isn't telling the truth and when it comes to life-saving foreign aid, that's despicable," Layton said.


Policy on the run is Harpers foreign affairs specialty. Like last years support for Israels war on Lebanon. Now he goes and does it again.
Harper signals shift from Africa to Americas
Prime Minister Stephen Harper signalled a major shift in Canadian aid policy yesterday, saying that Canada's primary focus is moving away from Africa and toward the Western Hemisphere.

"Canada's sole focus and primary focus is not necessarily Africa, but we remain engaged there, we will meet our targets and will move forward with that plan into the future," Mr. Harper told reporters at the G8 summit.



His push to deal with development aid in our Hemisphere bodes ill, premised as it is with hemispheric bilateral agreements in the context of an expanding North American Union. Harper clearly has mixed up the concept of Aid and Trade.

This hemisphere is not in need of development Aid, rather it is in need of Fair Trade. Instead we have Free Trade Zones, which are anti-union tax free havens for American and Canadian manufacturers, and the attempt to import Latin American workers into Alberta as cheap labour for the Tar Sands.


Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) Analysts expect that--as occurred in Mexico--CAFTA will attract foreign direct investment and boost Central American exports in certain sectors, but will provide little benefit to the rural and urban poor of the region.

Why U.S.-CAFTA-DR?

The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) includes seven signatories: the United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. The U.S. Congress approved the CAFTA-DR in July 2005 and the President signed it into law on August 2, 2005. The CAFTA-DR has been approved by the legislatures in the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua. Approval is pending in Costa Rica. The export zone created will be the United States' second largest free trade zone in Latin America after Mexico.

The United States is implementing the CAFTA-DR on a rolling basis as countries make sufficient progress to complete their commitments under the Agreement. The Agreement first entered into force between the United States and El Salvador on March 1, 2006, followed by Honduras and Nicaragua on April 1, 2006, Guatemala on July 1, 2006, and the Dominican Republic on March 1, 2007. The U.S. Government continues to work with Costa Rica to ensure timely and full implementation of the Agreement.

in the region, and strengthens protections for U.S. In addition to tariff reduction, CAFTA-DR provides new market access for U.S. consumer and industrial products and agricultural products. It also provides unprecedented access to government procurement in the partner countries, liberalizes the services sectors (see also financial services), protects U.S. investmentspatents, trademarks, and trade secrets. The Agreement covers customs facilitation and provides benefits to small and medium-sized exporters. Provisions are also included that address government transparency and corruption, worker rights, protection of the environment, trade capacity building, and dispute settlement.



Why Latin America Needs a Free-Trade Zone

At the Summit of the Americas in Quebec City, the Hemisphere's leaders may at last give serious consideration to the establishment of free trade from Argentina to Alaska. But the meeting will also give critics an opportunity to cite economic uncertainty and political instability in much of Latin America as a reason to oppose the trade initiative. With the Andean region from Venezuela to Bolivia in varying degrees of turmoil, and with Argentina on the brink of possible default, trade liberalization is under attack.

The Free Trade Area of the Americas (FTAA) (Spanish: Área de Libre Comercio de las Américas (ALCA), French: Zone de libre-échange des Amériques (ZLÉA), Portuguese: Área de Livre Comércio das Américas (ALCA)) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the American continent. In the latest round of negotiations, officials of 34 nations met in Mexico on November 16, 2003 to discuss the proposal. The proposed agreement was an extension of the North American Free Trade Agreement (NAFTA) between Canada, Mexico and the United States. Against the market are positioned Cuba, Venezuela and later Bolivia, Ecuador, and Nicaragua, which entered the Bolivarian Alternative for the Americas in response.

Discussions have faltered over similar points as the Doha round of World Trade Organization (WTO) talks; developed nations seek expanded trade in services and increased intellectual property rights, while less developed nations seek an end to agricultural subsidies and freer trade in agricultural goods. Similar to the WTO talks, Brazil has taken a leadership role among the less developed nations, while the United States has taken a similar role for the developed nations.

Talks began with the Summit of the Americas in Miami on December 11, 1994, but the FTAA came to public attention during the Quebec City Summit of the Americas in 2001, a meeting targeted by massive anti-corporatization and anti-globalization protests. The Miami negotiations in 2003 met similar protests, though perhaps not as large. The last summit was held at Mar del Plata, Argentina in January 2005, but no agreement on FTAA was reached. 26 of the 34 countries present at the negotiations have pledged to meet again in 2006 to resume negotiations.




This Hemisphere is rapidly industrializing which cannot be said for Africa which is being divided up by Imperialist interests including China. It is still in thralls of being hewers of wood and drawers of water for the G8 and G20 countries.

And development Aid is going into the pockets of private capital investment companies known as Vulture Funds, which in more developed countries are also known as Hedge Funds. Vulture Funds encourage ponzi get rich quick schemes.

Real development funding would be directed to villages and people, not governments, as the success of Micro-credit has shown.

Private firms work on Africa's future

Economic growth in Africa has picked up considerably in recent years to an estimated 5.9% in 2007.

But this has not come about as a result of any concerted action by the leaders of wealthy nations, insists, Sir Mark.

"A key driver of this growth has been high commodity prices," he points out, questioning whether the prosperity will last.

In the meantime, "the aid figures in many areas seem pretty disappointing" and global trade talks have stalled, he says.

"Progress is slower than I would have wished, than we all would have wished," he says.

Market access

President Museveni puts it more starkly.

Zambian President Levy Mwanawasa
Zambian President Levy Mwanawasa says the West must do more

"Almost all African countries are pre-industrial," he says, paraphrasing the voice of the West: "'You must stay producing the cocoa bean. I will process it for you. Stay in your place. Don't move up the value chain.'

"The G8 countries should not assume they have an advisory role in Africa," he says, insisting African governments are capable of deciding themselves how to bring about development.

"Where we need assistance now - or at least not obstruction - is in two areas: cheap electricity and infrastructure.

Free trade is another key to African development, President Museveni says, insisting that "Western countries have denied us access to their markets - deliberately".


Greg Palast on the Battle to End Vulture Funds

Investigative reporter Greg Palast looks at the battle to end "vulture funds", where companies buy up debts of poor nations cheaply and then sue for the full amount.

At the close of the G-8 Summit in Germany last Friday, leaders of the world’s richest countries reiterated their commitment, first made in 2005, to cancel all of the debt owed by the world’s poorest countries. However, so-called “vulture funds,” or companies that buy up third world debt at rock-bottom prices and then sue the countries for the full value and more, are undermining any promises of debt relief. In February, BBC investigative journalist Greg Palast exposed on Democracy Now! how one vulture fund, Donegal International owned by US resident Michael Sheehan, was trying to collect $40 million dollars from Zambia after buying one of its debts for $4 million dollars. Soon after, Congressman John Conyers and Congressman Donald Payne brought this up with President Bush, and urged him to ensure that the G-8 summit would close the legal loopholes that allow vulture funds to flourish.




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Friday, May 04, 2007

Your Breakfast Cup of Coffee


A tip of the hat to the Adam Smith's Lost Legacy blog where I have been debating the author. He pointed out a link to this site where I found this interesting article which shows that the coffee marketplace in Africa is run not by corporate or state capitalism but by village cooperatives. As anarchist mutualists would point out the Cooperative Commonwealth is the Free Market.

And the support of coffee production in Africa based on the cooperative and sustainable farming is Fair Trade ala Adam Smith. As the other articles appended show.

State Power, Entrepreneurship, and Coffee: The Rwandan Experience

In Rwanda, the coffee industry has played a particularly important role in the country's development. For many years, coffee was Rwanda's top export and chief source of foreign exchange income. In the twenty-first century the industry remains important: it provides a livelihood for some 500,000 Rwandan families, many of whom work in cooperatives and grow coffee on small plots on the country's hillsides.

In the past two decades, this important sector of the Rwandan economy has been transformed from a highly controlled, politicized industry to a liberalized sector that is quickly developing a prized niche product: specialty coffee. While the industry is benefiting from increased entrepreneurship and freer trade, the people who work in the coffee industry are also benefiting. They are developing wider trading relations, improving skills, increasing their standard of living and, most importantly, finding a path towards reconciliation--all thanks to increased opportunities to sell their product. Freeing the coffee industry from excessive government regulation and control is directly helping to free the people of this country from poverty and conflict.

The rise of the specialty coffee market in Rwanda presents an exciting research opportunity, for this market developed in the aftermath of the Rwandan genocide. It is providing the means for individuals, whose lives were devastated by conflict, to improve conditions for themselves, their families, and their communities. Rwandan coffee growers are competing with other coffee producers to improve their product, expand their knowledge of the worldwide coffee market, and increase demand for their goods.

Uganda: Serving 1000 Cups of Coffee


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Uganda: Great African Coffee Steams Its Way to Europe, S. Africa

The farmers who transport their coffee to the GAC offices in Kasese on bicycles and pick up trucks before the long process commences get paid Ush3, 500 ($1.94) per kilogramme, translating into 30% to 40% above the market price

Available statistics indicate that a kilogramme of Arabica on the international market costs about $2.70 (Ush4, 860), while GAC fetches $2.88 (Ush5, 184) a kilogramme. One kilogramme of the beans produces 330 grammes of instant coffee and 800 grammes of roast and ground coffee. In 2006, GAC bought over 460 tonnes of washed Arabica coffee, which experts say, is among the best quality in the region.

This quantity, Rugasira told Business Week is anticipated to hit the 1,000 tonne mark worth Ush3.5 billion ($1.94 million) at the end of 2007. 110 tonnes were bought in 2004 with 2005 registering an improvement at 190 tonnes of washed coffee. An acre on average produces about 300 kilogrammes of coffee beans per season.

The optimistic Rugasira anticipates that GAC will attract a higher premium when German based firm, BSC Oko-Garantie GmbH certifies it as organic. He also hopes that his company will list on the Uganda bourse within the next five years with priority for shares going to the farmers.

Before GAC came into the equation, farmers were using the obsolete dry processing method of removing the outer skin of the bean, which while producing a reasonable Arabica cup, does not come close to matching the quality of the wet processed Arabica beans.

The UK's Observer Food Monthly (OFM) in its November 2005 editorial written by respected food and beverage critic Nigel Slater said of Rugasira; "Both a business leader and father figure, he has helped thousands of farmers to give themselves a steady income and provide them with the knowledge that they are at last being given a fair price for their coffee,"

Companies today cannot survive the stiff and dynamic business environment without a pro- active corporate social responsibility programme; GAC is involved in six community projects centred on education, environment, charity and micro finance.

Sipping on the last bits of my rich coffee like a Bohemian, I looked around at the excited farmers, hugging, congratulating and smiling at each other. In all this action, I could see the unlimited opportunities unveiled by the raw beans these farmers at the primary end of the value chain toil with, all year round.

Coffee pack shoot

Africa will never be transformed by handouts, we must solve our own problems and that is what we are doing

• Good African Coffee is unique because it is owned and managed by Africans. It is about us helping ourselves through Trade and not charity

• We are committed to our people not only because it is part of our value system but it also makes smart business sense

• We produce excellent quality products and are committed to bringing you the best that Africa has to offer

• Consumers demand greater accountability and transparency from ethically trading companies – Good African Coffee pledges to satisfy that demand

Kenya: Starbucks Finally Wakes Up And Smells the Coffee

Starbucks to double Africa coffee purchases






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