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Menampilkan postingan yang diurutkan menurut relevansi untuk kueri political reform. Urutkan menurut tanggal Tampilkan semua postingan
Menampilkan postingan yang diurutkan menurut relevansi untuk kueri political reform. Urutkan menurut tanggal Tampilkan semua postingan

Failures in Development-The Chad Oil Pipeline Story

Ken Silverstein writes in Harpers about another failure of a Top Down development project:

Back in 2000 construction began on a $3.7 billion pipeline running from oil fields in southern Chad to the Atlantic coast of Cameroon. An international consortium led by ExxonMobil and ChevronTexaco, promised the project would be a model for Third World energy projects, and would alleviate poverty in Chad and promote political reform and stability.The controversial project proceeded with the enthusiastic backing of the do-gooders at the World Bank. “World Bank involvement will ensure greater public consultation, local participation, and attention to environmental and other socio-economic issues,” said a rosy statement released during the project’s early days.The project was completed a few years ago and there appears to have been little or no poverty reduction in Chad since the oil began flowing, governmental corruption is worse than ever, and there’s been no political reform.

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In The Name of Education Reform

Democrats Host Union-Bashers
by Candi Peterson
published in Labor Notes Magazine , No. 355 October 2008

Here in Washington, DC schools chief Michelle Rhee contends that her education reform plan will be done either with teachers - or to teachers. She argues that urban schools do poorly due to union contracts that prevent schools from firing bad teachers. Teachers' seniority rights, she says, stand in the way of the best education for our children.

Odd Bedfellows
Rhee and DC Mayor Adrian Fenty were invited to a forum before the Democratic National Convention in Denver last August to sell their management scam. They appeared with N.Y. Chancellor Joel Klein and Reverend Al Sharpton for a panel discussion that bashed teachers unions.

These self-styled education reformers can't document a case where slashing teacher seniority and tenure has led to higher student achievement. The platform presented at the Denver forum clashes with the Democrats' historical alliance with teachers union and stated commitment to workers' rights.

In Rhee's typical style, she vowed to impose her educational reform if contract talks with the union continue to stall. This doesn't fit the Democrats, which claim support for teachers unions and public education.

These anti-union plans support more privatization and outsourcing of public education while gutting hard-earned job protections. In exchange, teachers would be bought off with hefty raises and bonuses.

Fight Under-Funding, Not Teachers
Rhee and the people who invited her to speak before a crowd of Democrats, whose convention delegates were 25 percent union members, need to refocus. If half of the energy they spend fighting teachers went to fighting the under-funding of public education and budget cuts, our children would be much better off.

The nationwide assault on teachers unions from corporations and conservatives has intensified in recent years. N.Y. public schools have doled out millions of dollars to private contractors. DC is following suit, and millions more will be spent on hefty contracts with groups such as Teach for America and New Teacher Project - an approach that encourages a teaching force that will have a high turnover rate and an equally high number of novice teachers.

Without teachers unions and experienced teachers who are willing to speak out against budget cuts, understaffed schools, high-stakes testing and unsound educational practices, schools may become the personal plantations of principals beholden to corporate forces.

Our union allows us to pool our resources, knowledge and lobbying power to ensure better working conditions and better schools, and fight off attacks like the one we face in DC.

A Political Battle
The major party alternative to the Denver forum is certainly no better. Senator McCain regularly bashes teachers and public education. He supports private vouchers with no proven track record for raising student achievement. Obama meanwhile supports a compensation package developed with teachers, not imposed on them, and has said he would close failing charter schools. Rather than blaming teachers for the ills of our education system, he pledges more funding for public education.

For a long time, the obstacle to school reform has been political. We know how to make schools better. But we simply have not had political backing to separate education funding from local property taxes, which guarantees abundance for some schools and poverty for others. Seeing Rhee's deeply misguided ideas trumpeted in front of Democratic audiences makes one wonder which direction the party is heading. Posted by The Washington Teacher.

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Smart Aid for Africa

Mired in grinding poverty and social destitution, Africa cries for help. A cacophonous galaxy of rock stars, anti-poverty activists, and heads of state are calling on the G-8 countries to cancel Africa’s $350 billion crippling foreign debt and double aid to the continent. British Prime Minister Tony Blair will make aid to Africa the centerpiece in Britain's presidency of the G-8 meeting in Gleneagles, Scotland in July. Live 8 is planned for July 2. After meeting with President Bush on June 10, modalities are being worked out to cancel at least $34 billion in debt of 27 of the world’s poorest nations, mostly African. Will this African Marshall Aid Plan work?

Africa’s plight follows a ten-year attention deficit cycle. Every decade or so, mega-plans are drawn up and rock concerts held to whip up international rescue mission for Africa. Acrimonious wrangling over financing modalities ensues. Years slip by, then a decade later, another grand Africa initiative is unveiled. Back in 1985, there was Live Aid and a “Special Session on Africa” held by the United Nations to boost aid to Africa. Then in March 1996, the U.N. launched a $25 billion Special Initiative for Africa. In September 2005, the plight of Africa will again take center-stage at a U.N. conference with clockwork precision. Expect another major initiative for Africa in 2015.

Helping Africa of course is noble but has now become a theater of the absurd – the blind leading the clueless. A recent IMF study estimated that Africans in the diaspora remit $32 billion annually back to Africa, with the main destinations being Ghana, Nigeria, and Kenya. About $7 billion is sent to southern Africa (Ghana News Agency, Accra, May 31, 2005). The amount Africans abroad remit back exceeds the $25 billion Tony Blair seeks to raise.

Nigerian President Olusegun Obasanjo says corrupt African leaders have stolen at least $140 billion (£95 billion) from their people since independence. The World Bank estimates that 40 per cent of wealth created in Africa is invested outside the continent. Even the African Union, in a stunning report last August, claimed that Africa loses an estimated $148 billion annually to corruption – or 25 percent of the continent's Gross Domestic Product (GDP). Rather than plug the huge hemorrhage, African leaders prefer to badger the West for more money. And the West, blinded by its own racial over-sensitivity and guilt over the iniquities of the slave trade and colonialism, obliges. This is the real tragedy of Africa.

Between 1960 and 1997, the West pumped more than $450 billion in foreign aid – the equivalent of four Marshall Aid Plans – into Africa with nothing to show for it. Contrary to popular misconception, foreign aid is not free but a soft loan. Outright debt relief and massive inflow of aid without any conditionalities, safeguards or monitoring mechanisms is absurd. It is akin to writing off the credit card debt of a drunken sailor and allowing him to keep the same credit cards. No African government has been called upon to give a full public accounting of who took what loan and for what purpose since many of Africa’s foreign loans taken in the past were misused and squandered. No government official has been held accountable; instead, irresponsible past borrowing behavior is being rewarded.

More distressing, much of the new aid money will flow directly into an African government budget – a huge black maze of vanishing tax receipts, extra-budgetary expenditure items, perks and off-budget “presidential privy accounts,” redolent with graft, patronage and waste. Over the past few decades, African budgets have careened out of control. State bureaucracies have swollen, packed with political supporters. Back in 1996, 20 percent of Ghana's public sector workforce was declared redundant by the Secretary of Finance and Guinea’s 50,000 civil servants were consuming 51 percent of the nation's wealth. In Kenya, civil service salaries take up half the budget; in Uganda, it is 40 percent. Zimbabwe has 54 ministers; Uganda with a population of 35 million has 70, while Ghana, with a population of 22 million, has 88 ministers and deputy ministers. With bloated bureaucracies, soaring expenditures and narrow tax bases, budget deficits have soared.

They are covered with World Bank loans and foreign aid (Ghana’s budget is 50 percent aid-financed and Uganda’s is 60 percent). If the aid is insufficient, the rest of the budget shortfall is financed by printing money. Even when is aid available for “budgetary support”, there is no guarantee that it will be used productively to generate a return to repay the soft loan. It could well be “consumed” when it pays for the salaries of civil servants. Writing off Uganda’s debt does not eliminate the aid dependency. In fact, when the World Bank canceled $650 million of Uganda’s debt in 1999, the first item President Yoweri Museveni purchased was a new presidential jet!


British Prime Minister thinks he can cajole or browbeat African leaders into curbing corruption and ensuring that resources released by debt relief are put to some good use – such as increased spending on education and health care. But the push for good governance and reform must come from within – from African civil society groups, organizations and the people. However, in country after country, chastened by diabolical restrictions, these groups have no freedom or political space to operate.

Carlos Cardoso, an investigative journalist, was murdered in November 2000 for uncovering a bank scandal in which about $14 million was looted from Mozambique's largest bank, BCM, on the eve of its privatization. The official in charge of banking supervision, Antonio Siba Siba, was also murdered while investigating the banking scandals. Such was also the fate of Norbert Zongo, a popular journalist in Burkina Faso, who was gunned down on Dec 13, 1998, while investigating official corruption. In September 2001, President Isaias Afwerki closed down all the independent media and arrested its staff, quashing calls for democratic reforms. In all, the government shut down eight private newspapers and arrested its journalists, picking them up in their newsrooms and homes and from the streets. They were held in a central jail until April, 2002, when they threatened to begin a hunger strike to protest their detention. They were then transferred to an undisclosed location.

In neighboring Ethiopia, President Meles Zenawi, a member of Tony Blair’s Africa Commission, just held fraudulent elections. Anticipating public outrage, he banned street demonstrations for one month and assumed full control of the country’s security forces. When the opposition rallied to protest the results dribbling in, the police opened fire, killing 26; opposition leaders have been placed under house arrest. Witness the election machinations in Egypt.

The paucity of good leadership has left a garish stain on the continent. Worse, the caliber of leadership has distressingly deteriorated over the decades to execrable depths. The likes of Charles Taylor of Liberia and Sani Abacha of Nigeria even make Mobutu Sese Seko of formerly Zaire look like a saint. In an unusual editorial, The Independent newspaper in Ghana wrote: "Most of the leaders in Africa are power-loving politicians, who in uniform or out of uniform, represent no good for the welfare of our people. These are harsh words to use on men and women who may mean well but lack the necessary vision and direction to uplift the status of their people (The Independent, Ghana, July 20, 2000; p.2).

The crisis in leadership remains a major obstacle to poverty reduction and has many manifestations. It is characterized, among others, by the following dispositions and failings: The "Big Man" syndrome, subordination of national interests to personal aggrandizement, super-inflated egos, misplaced priorities, poor judgment, reluctance to take responsibility for personal failures, and total lack of vision and understanding of even such basic and elementary concepts as "democracy," "fairness," "rule of law," "accountability," and "freedom" -- among other deficiencies. In some instances, the leadership is given to vituperative utterances, outright buffoonery, stubborn refusal to learn from past mistakes, and complete absence of cognitive pragmatism.

Believing that their countries belong to them and only them only, they cling to power at all costs. Their promises are worth less than Al Cappone’s. They stipulate constitutional term limits and then break them: Angola, Chad, Gabon, Guinea, and Uganda. African leaders themselves drew up a New Economic Partnership for Africa’s Development (NEPAD) in 2001, in which they inserted a Peer Review Mechanism (PRM), by which they were to evaluate the performance of fellow African leaders in terms of democratic governance. What happened? To be fair, they acted in reversing the “military coup” in Togo in February but went on vacation when elections were stolen in Zimbabwe and Togo.

Ask them to cut bloated state bureaucracies or government spending and they will set up a “Ministry of Less Government Spending.” Then there is the “Ministry of Good Governance” (Tanzania). They set up “Anti-Corruption Commissions” with no teeth and then sack the Commissioner if he gets too close to the fat cats (Kenya) or issue a Government White Paper to exonerate corrupt ministers (Ghana in 1996). To be sure, multi-party elections have been held in recent years in many African countries but the electoral process was so contumaciously manipulated to return incumbents to power. Four such “coconut elections” have so far been held this year: Zimbabwe, Togo, Congo (Brazzaville), and Ethiopia.

Ask them to place more reliance on the private sector and they will create a Ministry of Private Enterprise (Ghana). Ask them to privatize inefficient state-owned enterprises and they will sell them off at fire-sale prices to their cronies (Uganda). Or ask them to move a foot and they will demand foreign aid in order to do so. In 2003, some 30,000 ghost names were discovered on the payroll of the Ministry of Education, costing the government $1.2 million a month in salaries heisted by living workers. When Ghana demanded foreign aid to purge the payroll of these ghost names, Japan coughed up $5 million.

The reform process has stalled through vexatious chicanery, willful deception, and vaunted acrobatics. Only 16 out of the 54 African countries are democratic, fewer than 8 are “economic success stories,” only 8 have a free and independent media.

No amount of debt relief and increased aid will help Africa until Africa cleans up its own house. But the leadership is not interested in reform. Thus, without new leadership and genuine reform, debt relief and increased aid would compound Africa’s problems and more African countries will implode. The continent is stuck in a veritable conundrum. What can Western donors do?

Smart aid would do one of two things. One, bypass the vampire state and target the people, who produce Africa’s real wealth. An African economy consists of three sectors: the traditional, informal, and the modern sector. The people who produce Africa’s real wealth – cash crops, diamonds, gold and other minerals – live in the traditional and informal sectors. Meaningful development and poverty reduction cannot occur by ignoring these two sectors. But in the 1960s and 1970s, much Western development aid was channeled into the modern sector or the urban area, the abode of the parasitic elite minority. Industrialization was the rage and the two other sectors – especially agriculture – were neglected. Huge foreign loans were contracted to set up a dizzying array of state enterprises, which became towering edifices of gross inefficiency, waste and graft. Economic crises emerged in the 1980s and billions in foreign aid money were spent in an attempt to reform the dysfunctional modern sector. Between 1981 and 1994, for example, the World Bank spent more than $25 billion in Structural Adjustment loans to reform Africa’s dilapidated statist economic system. Only 6 out of the 29 “adjusting” African countries were adjudged to be “economic success stories” in 1994. Even then, the success list was phantasmagoric. Ghana, declared a “success story” in 1994, is now on HIPC life-support system.

At some point, even the most recklessly optimistic donor must come to terms with the law of diminishing returns: That pouring in more money to reform the modern sector is futile. Greater returns can be achieved elsewhere – by focusing on the traditional and informal sectors.

Second, smart aid would empower the African people (African civil society groups) to monitor how the aid money is being spent and to instigate reform from within. Empowerment requires arming the African people with information, the freedom and the institutional means to unchain themselves from the vicious grip of poverty and oppression.

Africa already has its own Charter of Human and Peoples’ Rights (the 1981 Banjul Charter), which recognizes the right to liberty and to the security of his person (Article 6); to receive information, to express and disseminate his opinions (Article 9); to free association (Article 10); to assemble freely with others (Article 11); and to participate freely in the government of his country, either directly or through freely chosen representatives in accordance with the provisions of the law (Article 13). Though the Charter enjoins African states to recognize these rights, few do so. When President Thabo Mbeki called on June 3, President Bush should have handed him a signed copy of this Charter to be delivered to President Robert Mugabe of ‘Zimbabwe.

The institutional tools Africans need are an independent central bank (to assure monetary stability and stanch capital flight), an independent judiciary (for the rule of law), a free and independent media (to ensure free flow of information), an independent Electoral Commission, an efficient and professional civil service, and a neutral and professional armed and security forces.

Recent events in Ukraine (November), Ghana (December), Zimbabwe (March), Lebanon (April), and Togo (April) unerringly underscore the critical importance of these institutions. Without them, President Bush’s plan to spread democracy may stall. Democracies are not built in a vacuum but in a “political space” in which the people can air their opinion, petition their government without being fired on by security forces and can choose who should rule them in elections that are rigged by electoral commissions packed with government goons.

On May 13, thousands of Egyptian judges, frustrated by government control over the judiciary, agitated for full independence from the executive in their oversight of the electoral process. “The institutions are presenting Mr. Mubarak with an unexpected challenge from within, one that will be difficult to dismiss. The fact is, major changes in this country are going to come out of those institutions, not from the streets," said Abdel Monem Said, director of the Ahram Center for Strategic Studies in Cairo.

In the past 24 years, Egypt has received more than $55 billion in U.S. aid in direct government-to-government transfers. Smart aid would assist civil society in instigating institutional reform. Since this approach carries some risks, the same objective can be achieved by funneling aid through diaspora Africans and their organizations, as was the case with Soviet dissidents during the Cold War.

Africa’s long term growth prospects do not lie in rock concerts and increased dependency on Western aid but on the ability of the African people or civil society groups to instigate reform from within. Assistance to such groups – both at home and abroad – constitutes much smarter aid to Africa than all the LIVE AID concerts Bob Geldof can organize.
______________

The writer, a native of Ghana, is a Distinguished Economist at American University and President of the Free Africa Foundation. His new book is Africa Unchained (Palgrave/MacMillan). This article is culled from his May 10 testimony before the Standing Committee on Foreign Relations of the Senate of Canada.

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Africa and Opportunity

At the "...2005 Wharton Global Business Forum Africa Conference, entitled "Unveiling the Value; Demystifying the Risk." Speakers described the continent as bursting with opportunities, challenges and pitfalls for local and foreign companies, but the emphasis was decidedly on the word "opportunity...Paa Kwesi Nduom, minister for public sector reform in Ghana, noted that his country had reduced inflation from as high as 45% in recent years to a current level of under 15%. "You are operating in an environment where there is a shortage of everything," said Oyebode, speaking for Africa as a whole. But for companies that succeed, he stated, return on equity can approach 50%...One theme that ran through the conference was the idea that economic growth in Africa would tend to occur more rapidly in an atmosphere of reduced government regulation and greater political reform. Oyebode(Nigerian lawyer), for example, predicted that there would be greater opportunities for business in Liberia following recently held elections to replace the authoritarian government of former president Charles Taylor..."Some countries are ready for change and are indeed implementing reform. Others need to be encouraged,"noted Nduom. "We have a small group of countries that need to be dragged along. And that must happen. We have come to understand that we cannot achieve accelerated national development, create wealth and eradicate poverty without reforming the public sector..."
Via Knowledge@Wharton

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Obama's Economic Policy is... State Socialism?

Listening to a recent speech by US President Barack Obama (Democrat) regarding the passage of the American Invents Act at Thomas Jefferson High School for Science and Technology in Alexandria, Virginia, I was bothered by way that he phrased things. Shortly into his speech, he said:

...But there are other steps that (the national government) can take. Today, for example, my (the national government) administration is announcing a new center that will help companies reduce the time and cost of developing lifesaving drugs. When scientists and researchers at the National Institutes of Health discover a new cure or breakthrough, (the national government's) going to make it easier for startup companies to sell those products to the people who need them. (The national government) got more than 100 universities and companies to agree that they’ll work together to bring more inventions to market as fast as possible. And (the national government's) also developing a strategy to create jobs in biotechnology, which has tremendous promise for health, clean energy and the environment....

....So (the national government's) going to have to make sure that (the national government's) continuing to invest in basic research so you can do the work that you’re capable of — and still pay the rent, which is important, you will find out. (ha ha, paying the bills is funny.)

(The national government's) need to continue to provide incentives and support to make sure the next generation of manufacturing takes root not in China or in Europe, but right here in the United States — because it’s not enough to invent things here; our workers should also be building the products that are stamped with three proud words: Made in America.

And if (the national government) wants companies to hire our workers, (the national government) needs to make sure we give every American the skills and education that they need to compete. (The national government has) got to have more schools like Thomas Jefferson....

...That’s why (the national government's) boosting science and technology and engineering and math education all across the country. And that’s why (the national government's) also working with businesses to train more engineers, and revitalize our community colleges so they can provide our workers with new skills and training. And, finally, that’s why (the national government's) making sure that all of our children can afford to fulfill their dream of a college education — that they can afford to go to school and that Pell grants and student loan programs ensure that they don’t come out of college with mountains of debt.

This is the economy (the national government) needs to build — one where innovation is encouraged, education is a national mission, and new jobs and businesses take root right here in America.

So that’s the long-term project.
To be helpful, I replaced the word 'we' with 'the national government' so that I could better understand exactly what Obama sees as the long-term project of change for our nation.

You see, what bothers me is that the economic philosophy that I increasingly believe that Obama is increasingly pushing in our nation is State Socialism. Wikipedia describes it this way:
State socialism is an economic system with limited socialist characteristics, such as public ownership of major industries, remedial measures to benefit the working class, and a gradual process of developing socialism through government policy.

Proponents of state socialism claim the state, through practical considerations of governing, must play at least a temporary part in building socialism. Many Socialists, such as Fredrick Engels and Saint-Simon, take the position that the state will change in nature and function in a socialist society; specifically, the nature of the state would change from one of political rule over people into a scientific administration of the processes of production; specifically the state would become a coordinating economic entity of inclusive associations rather than a mechanism of class and political control....

...Traditional social democrats and non-revolutionary democratic socialists argue for a gradual, peaceful transition from capitalism to socialism. They wish to abolish capitalism, but through political reform rather than revolution. This method of gradualism implies utilization of the existing state apparatus and machinery of government to gradually move society toward socialism, and is sometimes derided by other socialists as a form of "socialism from above" or political "elitism" for relying on electoral means to achieve socialism....

....Trotskyists believe that central planners, regardless of their intellectual capacity, operate without the input and participation of the millions of people who participate in the economy who understand/respond to local conditions and changes in the economy, and because of this criticize central state planning as being unable to effectively coordinate all economic activity....
Perhaps I'm wrong, and Obama isn't in favor of State Socialism, but I think I'm narrowing down exactly just exactly this guy is thinking for the future of America.

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OT: Original Tea Partier

Over at Doug Ross I saw this term used, and I wanted to elaborate a little bit further on it for the benefit of those who read my blog. There is a war going on in the Republican Party right now, as this is still the nominating and convention season, between those people who call themselves "Tea Party people" and those who refer to themselves as 'the establishment.'

But there is an important fact that is being ignored in this war- many of the people who have been in the GOP for years and who are now 'part of the establishment' are in fact and have been Tea Party people for many years.

The Tea Party movement, according to wikipedia, is an American socio-political movement that emerged in 2009 through a series of locally and nationally coordinated protests. The protests were partially in response to several Federal laws: the Emergency Economic Stabilization Act of 2008 (the Bailout), the American Recovery and Reinvestment Act of 2009 (the Stimulus or Porkulus Bill), and a series of health care reform bills (Obamacare). The Gadsden Flag has become an adopted symbol of the American Tea Party movement. Tea Party people have been shown to care about the constitution, want to stop cap-and-tax, want a balanced budget, want a simplified tax system, limit spending, reduce taxes, and increase transparency in government.

Tea Party people wear as a badge of pride that they are new to the political process and are proud of their ignorance of the rules and players in their local/county/state/national Republican parties. As an OT, I'm glad to see so many of my fellow brothers and sisters finally participating in the political process, but on the other hand I don't view their newness and ignorance as something to be proud of. They sat around and weren't Tea Partying for many years while me and many other OT's were. While they complained to their friends or silently stewed in anger over the political system, me and other OT's were busy getting involved, volunteering, learning the rules of the game, meeting the local partisan players, and becoming 'the establishment'. This is not meant to be criticism of those first-time Tea Party citizens who are now involved in the political process- rather, my intent is to educate those people and make them more aware that when they attack the Republican party establishment, they have to be careful, because the Republican party establishment has been infiltrated for years by Original Tea Parties.

For years, many of us OT's fought for the same principles and for the same agenda that the Tea Party is just now starting to fight for. I'm glad to welcome them to the fray, I only hope that when they enter they don't take people like me, Ron Paul, Rocky, Rush, and many others.

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Tapping Hidden Fortunes

Catherine Kuchta-Helbling writes

Emerging democracies and economies are struggling to provide their citizens with better lives marked by political participation and economic prosperity. Yet, excessively high transaction costs hinder such efforts. Making this aspiration a reality hinges on instituting democratic governance in the public and private sectors. Such a change will contribute to more responsive policies and will increase efficiency, transparency, accountability, and growth, as well as reduce corruption. Moreover, if citizens are granted a greater voice in the reform process, they will gain a sense of ownership over reform measures. This will strengthen democracy and help to build a broader pro-reform constituency essential to consolidate political and economic reforms.

via CIPE

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Obama's Transparent Game for America

As Admiral Ackbar once famously said "It's a trap!"

2012 isn't that far away, and it is becoming one of the most important elections in American history. In one direction America will continue to travel down the road to the gray mass of the rest of the world, losing its exceptionalism and becoming a Europe of favored ruling classes and slaves working for them. In the other direction, regardless of the nominee the Republicans choose, will be tough choices and grown-up decisions that are sure to anger and upset a lot of people but years from now grandchildren of an exceptional America of freedom and liberty will look back on and thank. Until recently, I could not imagine any way that Obama could be re-elected to the Presidency, but via memeorandum, I read this on Powerlineblog:

Obama's game is transparent, isn't it? He is playing a game of chicken. He puts forward a series of proposals that he knows are more or less insane; but he also believes that Republicans will come to his rescue. They, not being wholly irresponsible, will come up with plans to reform entitlements--like, for example, the Ryan Roadmap. Ultimately, some combination of those plans will be implemented because the alternative is the collapse, not just of the government of the United States, but of the country itself. But Obama thinks the GOP's reforms will be unpopular, and he will be able to demagogue them, thus having his cake and eating it too. Is that leadership? Of course not. But it is the very essence of Barack Obama.
This game is getting more transparent each day- the Republicans cut a measly $100 million from the budget for the coming year and Democrats are making noise about some sort of government shut down, Obama sends his minions and allies to Wisconsin to trash the capital and wave disgusting signs, all while the Middle East collapses and Obama is left steps behind admiring pictures of him shaking hands with these former dictators whose regimes are collapsing. Obama has got a game though- more elaboration on his game over at Chicago Boyz (please read the full thing- this is only part of the analysis):
Obama knows exactly what he is doing. Obama is setting up a confrontation and he plans to win.

Obama is betting that he can force the GOP to make their proposed cuts, which he can blame them for, which he can truthfully say he does not support. Then he can attack the Republicans for making the cuts. He will appeal to the people who are suffering from the cuts, and strip away GOP support. They will be angry and mobilized. Obama then plans to force the GOP into a funding crisis just as Clinton did. Obama plans to destroy the GOP reform wave of 2011 just as Clinton destroyed the GOP reform effort in 1995.

Obama’s team attempted to use the Tucson massacre in the same fashion that Clinton used the Oklahoma City bombings, to discredit the GOP. Obama is acutely aware of the Clinton playbook. This is another re-run.

If Obama wins, then the GOP / Tea Party effort is over and the Democrats have won the whole ball game. Obama gets reelected, the GOP is finished as a political party, and we have a mess for some number of years while a new party forms. But odds are it will be too late by then. A majority of people will be dependent on the Government.

It is that serious.
This is the game, people. It is a serious game with serious consequences. Recent polling in Wisconsin shows that 48% of the people of that state support liberty and freedom and private property rights and 38% support the rights of the privileged few to demand more benefits from taxpayers. Although the good guys are winning in that poll, it is not a majority- the day is fast approaching when democracy will rule and those who have political power will outnumber those who do not and will use the power of the state to steal from others and bring tyranny and injustice to America, as it is in every other nation in the world. This is a serious game- you all better be up for it. Obama is, and he won 2 years ago, and now our nation is trillions more in debt and weaker internationally, politically, and culturally because of it. Can we afford another 4 more years? I doubt it.

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The Colonialism-Imperialism Paradigm Is Kaput (1 of 2)

The Colonialism-Imperialism Paradigm Is Kaput
George B. N. Ayittey, Ph.D.
June 26, 2005.

Africas paradox is galling: immense mineral wealth yet inexorably mired in steaming squalor, misery, deprivation, and chaos. A few countries have sprinted ahead but Africas overall economic performance remains abysmal, lagging behind those of other regions in the Third World. The United Nations Development Program (UNDP) has warned that at the prevailing rates black Africa would take another 150 years to reach some of the development targets agreed by UN members for 2015. (Financial Times, July 9, 2003; p.1). Who ruined Africa?

The causes of Africas lack of development have always evoked heated emotional debates. On one hand are those who portray Africa as a victim of powerful external forces and conspiracies a group that may be described as externalists.On the other are those who believe that the causes of Africa's crisis lie mostly within African in the nature of government (governance) or how Africa runs its own affairs. This group may be described as the internalists.

The Externalists

The externalists believe that Africa's woes are due to external factors such as the lingering effects of Western colonialism and imperialism, the pernicious effects of the slave trade, racist conspiracy plots, exploitation by avaricious multinational corporations, an unjust international economic system, inadequate flows of foreign aid, the neo-liberal policies of the World Bank, IMF, and deteriorating terms of trade. Disciples of the externalist creed include most African leaders, scholars, and intellectual radicals. For decades, the externalist position held sway, attributing the causes of almost every African problem to such external factors.

In his book, The Africans, African scholar and historian Professor Ali Mazrui, examining Africas crises, attributed most of Africas woes to Western colonialism and imperialism. "The West harmed Africa's indigenous technological development in a number of ways" (164). Africa's collapsing infrastructure (roads, railways, and utilities) is due to the "shallowness of Western institutions," "the lopsided nature of colonial acculturation" and "the moral contradictions of Western political tutelage" (202). In fact, "the political decay is partly a consequence of colonial institutions without cultural roots in Africa" (199). Therefore, self congratulatory western assertions of contributing to Africa's modernization are shallow: "The West has contributed far
less to Africa than Africa has contributed to the industrial civilization of the West" (164). Decay in law enforcement and mismanagement of funds can be traced to Western colonialism too. "The
pervasive atmosphere in much of the land is one of rust and dust, stagnation and decay, especially within those institutions which were originally bequeathed by the West signal the slow death of an alien civilization" (204) and Africa's rebellion "against westernization
masquerading as modernity" (211). Western institutions are doomed "to grind to a standstill in Africa" or decay. "Where Islam is already established, the decay of western civilization is good for Islam since it helps to neutralize a major threat" (19).

Many African leaders also subscribed to and espoused similar views ascribing the causes of Africa's crises to external factors. In fact, since independence in the sixties, almost every African malaise was alleged to have been caused by the operation or conspiracy of extrinsic agents. This externalist doctrine totally absolved the leadership of any responsibility for the mess in Africa. The leadership was above reproach and could never be faulted. President Mobutu even blamed
corruption on European colonialism. Asked who introduced corruption into Zaire, he retorted: "European businessmen were the ones who said, 'I sell you this thing for $1,000, but $200 will be for your (Swiss bank) account'" (New African, July, 1988, 25).

In his address to the third Congress of the Democratic Union of Malian People recently, President Moussa Traore observed that, The world economy is passing through a period characterized by monetary disorder and slow trade exchanges. The worsening crisis is affecting all countries, particularly developing countries. Due to the difficult situation, which is compounded by the serious drought, socio economic life has been affected by serious imbalances
that have jeopardized our country's development growth. Debt servicing, characterized mainly by state to state debts are a heavy burden on the state budget. The drop in the price of cotton which accounts for much of the country's foreign earnings, has led to a great reduction in export
earnings" (West Africa, 16 May 1988, 876).

President Danial arap Moi accused the IMF and other development partners of denying Kenya development funds, thus triggering mass poverty (The Washington Times, June 3, 1999; p.A12). According to the Chairman of Ghanas ruling NDC, Issifu Ali, whatever economic crisis the nation was going through had been caused by external factors. He said the NDC has since 1982 adopted pragmatic policies for the progress of Ghana, adding that the macro-economic environment of 1999 has been undermined by global economic developments" (The Independent, Nov 18, 1999; p.3). Said the Zimbabwe Independent (April 27, 1999), Mugabe
rejects the criticism of those who blame the government for the economic crisis. It is, he says, the fault of greedy Western powers, the IMF, the Asian financial crisis and the drought (p. 25).

Naturally, African leaders would deny any responsibility and blame everybody else except themselves for the mess in Africa. The New Economic Partnership for African Development (NEPAD) echoes this orthodoxy when it claims that Africas impoverishment has been accentuated by the legacy of colonialism and other historical legacies, such as the Cold War and the unjust international economic system. Colonialism subverted the "traditional structures, institutions and values," creating an economy "subservient to the economic and political
needs of the imperial powers" (para 21). Colonialism, according to NEPAD, retarded the development of an entrepreneurial and middle class with managerial capability. At independence, Africa inherited a "weak capitalist class," which explains the "weak accumulation process, weak states and dysfunctional economies." (para 22). More recent reasons for Africa's dire condition include "its continued marginalization from globalization process." (para 2). NEPAD seeks $64 billion in investments from the West.

Frankly, this colonialism-imperialism card has been so overplayed that it has lost its relevance and credence. Even Africas children dont buy it. Chernoh Bah, president of the Children's Forum asserted that Africa's socio economic problems are a direct repercussion of incompetent and corrupt political leaders who usurped political office via the gun. "Some blame colonialism for Africa' plight while others blame the continent's harsh climatic conditions. I think the reason is the kind of political systems we have had over the past decades, he said. (Standard Times [Freetown], April 2, 2003; web posted). At the United Nations Children's Summit held in May 2002 in New York, youngsters from Africa ripped into their leaders for failing to improve
their education and health. "You get loans that will be paid in 20 to 30 years and we have nothing to pay them with, because when you get the money, you embezzle it, you eat it, said 12-year-old Joseph Tamale from Uganda (BBC News, May 10, 2002).

The Internalists

Internalists are the new and angry generation of Africans, who are fed up with African leaders who refuse to take responsibility for their own failures and, instead use colonialism and other external factors as convenient alibis to conceal their own incompetence and mismanagement.
Internalists believe that, while external factors have played a role, internal factors have been far more significant in causing Africas crisis. This school of thought maintains that while it is true Western colonialism and imperialism did harm Africa and continues to do so, Africa's condition has been made immeasurably worse by such internal factors as misguided leadership, misgovernance, systemic corruption, capital flight, economic mismanagement, declining investment, collapsed infrastructure, decayed institutions, senseless civil wars, political
tyranny, flagrant violations of human rights, and military vandalism. In fact, one can identify a whole lot of them but these will suffice. U.N. Secretary-General, Kofi Annan, himself an African, lashed out at African leaders at the Organization of African Unity (OAU) Summit in Lome in July 2000. He pointedly told them that they are to blame for most of the continent's problems. Instead of being exploited for the benefit of the people, Africas mineral resources have been so
mismanaged and plundered that they are now the source of our misery (Daily Graphic, July 12, 2000; p.5). Earlier in the year at a press conference in London in April, 2000, Kofi Annan, lambasted African leaders who he says have subverted democracy and lined their pockets
with public funds, although he stopped short of naming names (The African-American Observer, April 25 May 1, 2000; p.10). During a brief stop-over in Accra, he disclosed in a Joy FM radio station interview that "Africa is the region giving him the biggest headache as the
Security Council spends 60 to 70% of its time on Africa. He admitted sadly that the conflicts on the continent embarrasses and pains him as an African" (The Guide, July 18-24, 2000; p.8).

Ordinary people are speaking out too. Said Akobeng Eric, a Ghanaian, in a letter to the Free Press (29 March - 11 April 1996): "A big obstacle to economic growth in Africa is the tendency to put all blame, failures and shortcomings on outside forces. Progress might have been achieved if we had always tried first to remove the mote in our own eyes" (2). Angry
at deteriorating economic conditions in Ghana, thousands of Ghanaians marched through the streets of the capital city, Accra, the economic crisis is due to external forces and therefore, beyond his control, then he should step aside and allow a competent person who can
manage the crisis to take over," Atta Frimpong demanded (The Ghanaian Chronicle, Nov 29, 1999; p.1). Appiah Dankwah, another protestor blamed the NDC government for mismanaging the resources of the nation.

By the 1990s, African governments had completely lost touch with their people; in fact, they were at war with their people. Citing "the credibility gap between the people and the leadership built up through years of mismanagement," Mr. Mohammed Boudiaf, the head of Algeria's
High Executive Council (HEC), lamented: "A large segment of the population has, I am afraid, lost confidence in the capacity of the leadership to provide jobs, housing, health care and its ability to combat corruption" (Financial Times, June 17, 1992; p. 4). Indeed, said Simon Agbo, a farmer in Ogbadibo, south of Makurdi, Benue state capital in Nigeria: "I heard we have a new government. It makes no difference to me. Here we have no light ( electricity), we have no water. There is no road. We have no school. The government does nothing for us (The
Washington Times, Oct 21, 1999; p.A19).

Rafael Marques, a journalist, jailed and convicted of defamation for a 1999 article in which he characterized President Jose Eduardo dos Santos of Angola as a dictator, wrote: "The government has created a stateless state here in Angola. Each citizen is responsible for his own health and welfare while the government is accountable to no one. The MPLA and
UNITA are like two gangs and the people of Angola are innocent bystanders caught in the middle of a drive-by shooting" (The Washington Post, Sept 18, 2000; p.A1).

As a result of the failure to provide the basic necessities of life, the state and those in power have increasingly alienated themselves from those they rule and from whom they claim to derive their legitimacy. The growing gap between the leaders and the people has made the leaders increasingly insecure, sensitive, repressive and less responsive to the wishes of society. The mass of the people in turn regard the state and its organs with fear, suspicion and cynicism because as far as they are concerned, they are no longer legitimate or relevant in their lives. The government does nothing for them. Insecure African despots spend inordinate amounts on the military and security forces, subverting other state institutions squelch dissent, prop them up in power, and serve their parochial interests. The masses on the other hand, sensing their
inability to meaningfully influence the policies of the state and the behaviors of those in positions of power, develop apathy and withdraw from participation in the political process for safety reasons.

Government, as an institution that cares about its people and attends to their needs, has ceased to exist in many African countries. What exists is a vampire state, where the government has been hijacked by a phalanx of unrepentant bandits and crooks, who use the machinery of the
state to enrich themselves, their cronies and tribesmen, while excluding everyone else (the politics of exclusion). The richest persons in Africa are heads of state and ministers. Quite often, the chief bandit is the head of state himself.

At an African civic groups meeting in Addis Ababa, Ethiopia, Nigeria's President, Olusegun Obasanjo, claimed that corrupt African leaders have stolen at least $140 billion (95 billion) from their people in the decades since independence (The London Independent, June 14, 2002. Web
posted at www.independent.co.uk). In August 2004, an African Union report claimed that Africa loses an estimated $148 billion annually to corrupt practices, a figure which represents 25 percent of the continent's Gross Domestic Product (GDP). But these are gross underestimates. According to one UN estimate, $200 billion or 90 percent of the sub-Saharan part of the continent's gross domestic product was shipped to foreign banks in 1991 alone (The New York Times, Feb 4, 1996; p.4). Nigeria's past rulers stole or misused 220 billion ($396 billion) -- that is as much as all the western aid given to Africa in almost four decades. The looting of Africa's most populous country amounted to a sum equivalent to 300 years of British aid for the
continent (The London Telegraph, June 25, 2005; web posted). If this sum had been divided equally among Nigerias 120 million people, its income per capita would be at least $3,000, instead of the miserable $265, which is about the same as it was when it gained its independence in 1960. Between 1970 and 2004, more than $400 billion in oil money
flowed into Nigerian governments coffers. What happened to the oil money?

Eventually the vampire state metastasizes into what Africans call a coconut republic and implodes when politically-excluded groups rise up in rebellion: Somalia (1993), Rwanda (1994), Burundi (1995), Zaire (1996), Sierra Leone (1998), Liberia (1999), Ivory Coast (2000), and
Togo (2005). Only reform intellectual, economic, political and institutional will save Africa but the leadership is not interested. Period.

Ask these leaders to develop their countries and they will develop their pockets. Ask them to seek foreign investment and they will seek a foreign country to invest their booty. Ask them to cut bloated state bureaucracies or government spending and they will set up a Ministry of
Less Government Spending. Ask them to establish better systems of governance and they will set up a Ministry of Good Governance (Tanzania). Ask them to curb corruption and they will set up an Anti-Corruption Commission with no teeth and then sack the Commissioner if he gets too close to the fat cats (Kenya). Ask them to establish democracy and they will empanel a coterie of fawning sycophants to write the electoral rules, hold fraudulent elections with opposition leaders either disqualified or in jail, and return themselves to power (Ivory Coast, Rwanda). Ask them to reduce state hegemony in the economy and place more reliance on the private sector and they will create a Ministry of Private Enterprise (Ghana). Ask them to privatize inefficient state-owned enterprises and they will sell them off at fire-sale prices to their cronies. In 1992, in accordance with World Bank loan conditionalities, the Government of Uganda began a
privatization effort to sell-off 142 of its state-owned enterprises. However, in 1998, the process was halted twice by Ugandas own parliament because, according to the chair of a parliamentary select committee, Tom Omongole, it had been derailed by corruption, implicating three senior ministers who had "political responsibility" (The East African, June 14, 1999). The sale of these 142 enterprises was initially projected to generate 900 billion Ugandan shillings or $500
million. However, by the autumn of 1999 the revenue balance was only 3.7 billion Ushs.

Now, their recalcitrance has transmogrified into extortion. Ask them to move a foot and they will demand foreign aid in order to do so. In 2003, some 30,000 ghost names were discovered on the payroll of the Ministry of Education, costing the government $1.2 million a month in salaries heisted by living workers. When Ghana demanded foreign aid to purge these ghost names, Japan ponied up $5 million.

The reform process has stalled through vexatious chicanery, strong-arm tactics, deception, and vaunted acrobatics. Only 16 out of the 54 African countries are democratic and fewer than 8 African countries can be described as economic success stories. Intellectual freedom remains
in the Stalinist era: only 8 African countries have a free and independent media. But without genuine reform, more African countries will implode -- Chad, Cameroon, Central African Republic, Equatorial Guinea, Guinea, Togo and Zimbabwe are already teetering on the brink

The slave trade, Western colonialism, imperialism and external factors have nothing to do with the naked plunder and wrong choices made by bad African leaders. The World Bank has nothing to do with monumental leadership failure in Africa. The IMF, which most African leaders relish
vilifying, has nothing to do with petrol (gasoline) shortages in Nigeria. Nor do Western agricultural subsidies have anything to do with why African governments cant supply reliable electricity and safe drinking water to their people. The slave trade has nothing to do with
Nigeria turning itself into the scam capital of the world.

The Flaws in the Externalist Position

The issue of Western culpability or complicity in causing Africas woes evokes such intense emotionalism that it often clouds rational analysis of our problems in Africa. Let us strip the issue of its emotionalism and examine it rationally.

Historical Wrongs Committed by the West

The Slave Trade/Colonialism

Everyone agrees that the slave trade was at once a brutally inhumane treatment that can ever be meted out to a people. The horrors of capture, the trans-shipment, the loss of millions of able-bodied men, the atrocities that were committed by European slave traders, etc. are all documented. We all agree to the humiliating experience of colonial subjugation. The discrimination against African natives, the exploitation of Africa's mineral wealth and artifacts, etc. -- we also agree on that.

Remedies

We may seek compensation (reparations) for the harm that slavery did to us. We may seek the return of the stolen booty. Ethiopia has just received its ancient obelisk, stolen by the Italian colonialists. But even here, African leaders have debauched the issue.

Back in August 1999, representatives of African governments met in Accra and issued a declaration: "Africa is demanding $777 trillion from Western Europe and the Americas in reparation for enslaving Africans while colonizing the continent" (Pan African News Agency, August 18, 1999). It added that the money would be demanded from ''all those nations of Western Europe and the Americas and institutions, who participated and benefited from the slave trade and colonialism''. Dr. Hamet Maulana and Debra Kofie, co-chairpersons of the commission, urged that worldwide monitoring and networking systems be instituted to ensure
that reparation and repatriation will be achieved by 2004. Problem is, U.S. GNP is only $12 trillion and amount asked- $777 trillion- exceeds the combined sum of the GNPs of the entire Western world! According to the British governments Office of National Statistics, The United
Kingdom -- that is England, Wales, Scotland and Northern Ireland -- is officially valued at $8.8 trillion, a sum that includes all of its property and buildings, machinery, roads, bridges, planes, trains and automobiles. It also includes all the money deposited in its banks and other financial institutions. Plus everything on the shelves at Harrods (The New York Times, Jan 1, 2004; p.A4). So how do African leaders hope to collect $777 trillion?

We may argue all we want about the size of reparations but these historical wrongs cannot repeat, cannot -- be used to justify the cruel atrocities and grotesque misdeeds African leaders commit against their own people. Winning independence for their respective countries gives no African leader -- none of them -- the license to do what they want with their people and countries.

European slave traders or colonialists did not tell President Mugabe to raze down shanty-towns, destroying the propertied of hundreds of thousands of Zimbabweans and rendering more than 1.5 million HOMELESS. American imperialists did not tell President Meles Zenawi of Ethiopia
to order his security forces to open fire on student demonstrators, killing more than 40 of them on June 15, 2005. British racists did not tell President Isaiah Afwerki of Eritrea to shut down all the private newspapers in Eritrea and jail all their editors and journalists.

These leaders must be held ACCOUNTABLE for their actions. Historical wrongs by the West do not factor in here because they are a separate issue and CANNOT be used to excuse wrongful actions taken by African leaders TODAY.

Colonial Legacies

It is also agreed that the colonial legacies bequeathed to Africa were pitiful. What the Portuguese left behind in Guinea-Bissau, after 200 years of colonial rule, was a small brewery for their local servicemen. There was no social development; industry was not encouraged. African colonies were to serve as sources of raw material and cheap labor for the industrial machines of Metropolitan Europe. The colonial economies were based on export mono-culture: the export of one or two cash crops.

Colonial education was geared toward training male clerks for the colonial administration. The Belgians and Portuguese never encouraged university education as that would teach African natives of their political rights. When Tanzania gained its independence in 1964, it had only 4 university graduates.

Infrastructure was Spartan. Few roads and railways were built. Even where built in West Africa, they exhibited a dendritic pattern: Straight from the coast to the hinterland to evacuate some mineral or cash crop.

All this is true but heres the problem: After independence, we, African elites, did not maintain, let alone keep the little infrastructure we inherited from the colonialists. In fact, we destroyed them! Infrastructure crumbled in the post colonial period. The few universities we got in Ghana and Nigeria decayed. In Uganda, Makerere University used to be called the Harvard of Africa in the 1950s. By 1980, it was a shambles. In Zaire, the Belgian colonialists put down only 2,000 miles of paved road appalling for that huge country the size of Texas. By 1990, only 200 miles were usable. So who do you blame: the Belgian colonialists for not laying down enough roads OR Mobutu for failing to maintain the little that Zaire got? Later, we learned that Mobutu allowed the roads and infrastructure to crumble in Zaire because it made it difficult for the opposition to organize against him!
(contd)

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Rural Entrepreneurs as a Political Constituency

From the CIPE Blog:

In Ghana, rural entrepreneurs are gaining presence as a political constituency...With a greater political voice for rural entrepreneurs, the people in poverty can lead the charge to eradicate poverty.The Private Enterprise Foundation (PEF)has several programs designed to bring rural entrepreneurs into the political process.
  • With proper resources and training, farmer-based associations can become an effective voice for rural entrepreneurs.
  • Engaging the private sector in the legislative advisory process provides a vital opportunity for dialogue on reform issues with policymakers.
  • Private sector associations are important for improving Ghana’s business climate and making the broader business community a part of democratic decision-making.

...[continue reading]

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Government Does Not Create Jobs; In July Alone It Added $9.5 Billion to the Cost of Doing Business

Pivoting away from other issues like the environment ("Bombshell" Experiment: Global Climate Change Caused by Cloud Cover) or education (More Than 200 D.C. Teachers Fired! Progress?), let's return back to jobs and the role that the government plays in job creation.

In my post Coming To Grips With a Political Economy I wrote about a class that I took in college called 'Political Economy.' The class was an attempt to indoctrinate students with the idea that government could create jobs through its actions and could create wealth through proper regulation and control over free markets. I struggled through this class, mostly because I rejected entirely the idea that government can create wealth and jobs through its actions, and today I still believe that.

Government does not create jobs. It takes wealth from those who are productive and creating wealth, cycles it through many layers of bureaucracy and 'management', and then gives that wealth to those people who are favored by the government. Some of those who are favored by the government should be- the Constitution identified those who the government can give 'jobs' to and states further have identified those who the government should give 'jobs' to. But many others who the government gives 'jobs' today in America are simply those who benefit from the kind of crony capitalism and banana republic policies that are more common to two-bit dictatorships and tyrannies.

And the 'jobs' that are created by government are inefficiently created- much wealth and property is squandered and lost and burned by having government provide these jobs because of the many layers of 'management' and bureaucracy that mark the government. This is an acceptable price to pay for fire, police, and military jobs, but for most other 'jobs' the government creates the cost to create these jobs far exceeds the useful good that these jobs provide to society.

For example, many liberals claim that Obamacare will 'create jobs'- agencies and regulatory bodies that will hire overlords and masters who supervise a once-free and vibrant economic sector and regulate, tax, and control it. But the cost of these jobs was demonstrated graphically by the reaction that businesses had to it- after the passage of this law businesses dramatically dropped their hiring of workers. The Heritage report explained why this happened:

Businesses with fewer than 50 workers have a strong incentive to maintain this size, which allows them to avoid the mandate to provide government-approved health coverage or face a penalty; Businesses with more than 50 workers will see their costs for health coverage rise—they must purchase more expensive government-approved insurance or pay a penalty; and Employers face considerable uncertainty about what constitutes qualifying health coverage and what it will cost. They also do not know what the health care market or their health care costs will look like in four years. This makes planning for the future difficult.
Yet President Obama and the modern-day Democratic Party continues to think that regulations, spending, taxes, and control over free people can 'create jobs'. They take wealth from those who have it- either through taxes or fees or by simply sucking up savings by selling debt- and give it to those who they favor and try to pretend that they have made society better. But they haven't- they have killed legitimate jobs that millions of people through their free actions wanted and needed (the unseen hand of the market) and made society less because of their actions that took away freedom and property.

In Latest EPA Rules to Cost 1.4 Million Jobs and a 12% Increase in Utility Bills I wrote about how the Washington Post reported that the new EPA rules that were recently published will cause electric bills will jump 12 percent nationally by 2016 to comply with these new policies, with residents in areas such as Kentucky and Tennessee seeing a 24 percent increase in their utility bills. These policies are project to eliminate 1.4 million jobs- real jobs that will be destroyed by the actions of government, creating people who will no longer be paying taxes any more and will now be sucking down government benefits, all thanks to these policies pushed by Democratic bureaucrats employed by a Democratic President supervised by Democrats in the House and the Senate and supported by Democratic unions and a Democratic media.

And now Wyoming Republican Senator John Barrasso has put together a report that showed that the executive actions of the Democrat President have put in place in July alone an additional $9.5 billion in new regulatory costs by proposing 229 new rules and finalizing 379 rules. Among those rules that are going to add to the cost of doing business, kill jobs, and make our society less productive and wealthy are rules regarding the fake issues of global warming, healthcare reform, and financial regulatory reform rules.

IN JULY ALONE A DEMOCRATIC PRESIDENT PUT IN PLACE $9.5 BILLION IN NEW COSTS! I don't care how many times Obama 'pivots' to talk about jobs, the heart of the matter is that he is wrong about the government being able to create jobs and wealth through its actions- government is best that governs least because when people are free and free to live their lives and free to make their own decisions and free to do with their wealth and labor as they see fit, then jobs are created and wealth is created.

Make the choice in 2012 to turn America away from tyranny and 'government-created jobs' and to freedom and 'people-created jobs'.

For more reading, try Productivity versus OSHA and EPA regulations (Research for business decisions).

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Electoral systems and institutions; Political asset or liabilities?

From Pambazuka, The Kenyan Section of the International Commission of Jurists (ICJ Kenya) and the Konrad Adenaur Foundation invite contributions to be published in a Special Issue on Electoral Systems Reform in Sub Saharan Africa:

It is increasingly becoming a trend in Africa, that, whilst elections are supposed to anchor and ensure sustainable growth in democracies, in countries such as Kenya and Zimbabwe, elections have become a liability. Instead of institutionalising democracy, they have fueled political instability. Consequently, the essential question is: to what extend do electoral systems and institutions in Sub Saharan Africa turn into political assets and / or liabilities?

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Patronage Networks

Bruce J Berman writes(pdf):

The colonial legacy of bureaucratic authoritarianism, pervasive patron-client relations, and a complex ethnic dialectic of assimilation, fragmentation and competition has persisted in post-colonial societies. Patron-client networks remain the fundamental state-society linkage in circumstances of social crisis and uncertainty and have extended to the very centre of the state. This accounts for the personalistic, materialistic and opportunistic character of African politics. Such networks also penetrate institutions of civil society and liberal democracy, undermining programmes of socio-economic and political reform.

via African Affairs

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A Future Vision for Education- Few High Cost Teacher Leaders assisted by Many Low Cost Teacher Aids

A reader emailed me a story from The Blaze on education reform that I'd like to comment on:

Terry Moe, one of the leading experts in education reform in the country, professor of political science at Stanford University, fellow at the Hoover Institution, and author of the newly released Special Interest: Teachers Unions and America’s Public Schools, has a message for the teachers unions:

Rest In Peace, because your days are numbered...

...Moe argues that the incredibly massive revolution in information technology will deliver a death blow to teachers unions. In this profile of his life and impact on the education reform movement, Moe says:

“In the final analysis, what technology requires is a substitution of technology for human labor. Computers will do a lot of what teachers do now.” Jumping forward in his chair, he lights up: “Technology is cheap. Labor is really expensive. Education has always been very labor intensive, so if our education system can substitute technology for labor and still provide kids with high quality education, then great!”

Moe explains that technology will fundamentally change the politics of education. “In the future, we will have fewer teachers per student. This means fewer union members per student. Also, teachers don’t have to be concentrated in the same geographic place—because when students do their learning online, their teachers can be anywhere. This fragmentation and dispersion will make it harder for unions to organize.”...
After further analysis, I agree with some of what Mr. Moe argues but disagree about his fundamental point.

I agree that in the future, we will have fewer teachers and teachers will be geographically spread out, because skilled teachers will more aggressively use technology and cheap assistants to deliver higher quality instruction to more students at lower costs. In my vision of future teaching, rather than one-size-fits all bureaucratic statist-produced cookie-cutter teachers, you'll get expert lead teachers who produce the lessons and deliver the instruction via webcams and the internet to classrooms all over the nation, where cheaper and less trained and skilled teacher aids will support and assist in the instruction deliver by the lead teacher. Oh, I know there are some wrinkles still to iron out in the process like how to interact with all of these students, how to grade all the students the same, how to run activities and group projects and simulations, etc- but if Mr. Moe is correct and technology continues to advance as rapidly as it is, these wrinkles can be ironed out in time.

But having fewer teachers and having them geographically spread out will not necessarily mean that the unions will decrease in influence and authority- in fact, I imagine that the geographically-based lower paid teacher aides will become a powerful union of low-skilled labor who needs to continue to organize and collectively bargain while the high-skilled non-geographically based teacher leaders freelance and sell their skills to the highest bidder without collective bargaining or unions.

To read some of the books by Terry Moe, check out Special Interest: Teachers Unions and America's Public Schools and Politics, Markets and America's Schools.

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Feds Flex Muscle at Automakers

Today's Detroit News carried a good article by Daniel Howes on the loans for the auto companies, and focused on what I think is the larger implication for the industry and the nature of government in our country. Here are some highlights:

This is what you get, Detroit, when the government becomes your lender of last resort -- a business plan designed to score political points, which means no bonuses for the top execs and no corporate aircraft (leased or owned) for as long as Detroit's beleaguered automakers owe the public money, which could be three years but probably more.

Also required is compliance with federal and state fuel efficiency requirements to develop alternative technology vehicles, no dividends for shareholders, restructured balance sheets, and no legal challenges to strict state greenhouse gas emissions rules. And, my personal favorite, agreement to assess the viability of converting SUV plants to the production of buses and rail cars for use by public transit agencies.

No wonder Ford Motor Co. doesn't want any part of the $15 billion morass taking shape in Washington. It gives new meaning to the term "loan shark," however predictable it all is, considering the political agendas inside Congress and, second, the abject financial weakness of General Motors Corp. and Chrysler LLC.

I'm not sure which is worse: A federal government presumptuous enough to think it can transform one of the country's most complex industries in a little more than three months. Or one readily prepared to use its emergency financial power to shape an industry and steer it toward political ends that may or may not reflect market demand.

Each step in this process feels more strange than the last -- a first round of congressional hearings that gave new meaning to the term "clueless Detroit," a second round long on detail and even longer on groveling, stunning ignorance in Washington of an industry that accounts for millions of jobs, an uninterested White House and, now, a bailout bill that reads as if is was drafted by Greenpeace and Soviet central planning.

The congressional committees that wrote a $700 billion financial bailout package, lent $150 billion to AIG and pumped $20 billion into Citigroup demand detailed plans from the automakers and four days of hearings for what's shaping up to be $15 billion in loans.

Or the chairman of the Senate Banking Committee, Chris Dodd, D-Conn., suggests Sunday that GM Chairman Rick Wagoner should "go" and make way for new leadership because the current one led GM off a cliff.

This from the senator who blocked reform of Fannie Mae and Freddie Mac three years ago, was their top recipient of campaign cash, pocketed more than $300,000 in contributions from PACs and executives tied to Citigroup and then spearheaded the legislative effort to craft the financial rescue package.

Yet in the world where Detroit's future lies, such irony doesn't matter. Perception, politics and calculated remarks masquerading as offhanded ones do.


There are some really good points in here. My person favorite piece of analysis was on how the loan bill that Congress is writing looks more like it was produced by a combination of Greenpeace and the Soviet Union. There is actually a lot in there. Think about what Congress is bribing companies to do with taxpayer money- submit the the watermellons of state control. Our government is using our money to put in place a regulatory structure that would make the Nazi's or Soviet's envious, and what is even more sad is that citizens are clammoring for it to be done. When Congress passes this deal with the devil bill, everyone will clap, and the Republicans and people who voted no will look like the bad guys. Bizarro world strikes again!

The only thing that provides me any comfort is that I am not the only one totally pissed off by this whole process. Over at this blog, the blogger is so upset he has basically shut down posting in the face of this relentless environmental-fascist legislation. Is anyone else out there as pissed as me? Email me and let me know that I'm not alone!

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The Lesson of Michelle Rhee

Michelle A. Rhee is the former chancellor of the District of Columbia Public Schools system of Washington, D.C. From 2007 to her resignation in October of 2010, she aggressively sought to reform the D.C. school system by closing schools, adding early-childhood programs for the gifted and talented, adding programs for art and music classes, adding special education services to District schools, fired several central district administrators and school principals, and passed a contract with teachers that traded weaker tenure protection for higher bonuses.

The results? In the two years that we have data (2008 and 2009), the graduation rates increased by 6%, reading pass rates had increased by 14 percentage points, math pass rates had increased by 17 percentage points, and enrollment decreased by only one percent (which was a slower decline than prior years).

The results? Rhee's approval ratings decreased from 59% to 43% from 2008-2009, parents began complaining, teachers fought her tooth and nail, the media turned on her, political support fell out from under her, her co-workers increasingly threw her under the bus, and the teachers union even went so far as to demand that Rhee apologize for her actions.

The results? Adrian Fenty, the mayor who had nominated her and stood by her lost his re-election bid in the 2010 Democratic primary election, to Vincent Gray, who was a community activist strongly supported by the teachers union. After this, Michelle Rhee resigned from her position, feeling both that the incoming mayor should be able to appoint a new chancellor and that she was doing more harm than good in her current position.

That's the story of Michelle Rhee, boys and girls, and is a good lesson for the challenges that those who want to reform the system faced. She gave more money to good teachers, got better results, cut out the inefficient and wasteful parasites in the educational system, graduated more students, and shook up a culture- and because of that, she and her supporters were punished. The Democrats, the teachers union, and the media had a chance to continue the progress, to give real reform a chance, but instead decided to support the parasites in the central office, support the bad and lazy and unqualified teachers in the system, and punish success. That's what we are up against as teachers, and that is why I blog.

Check out these books on Michelle Rhee: THE BEE EATER: Michelle Rhee Takes on the Nation's Worst School DIstrict and American School Administrators: Michelle Rhee.

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Democrat Congressman Gary Peters' Principles‏ Mean Nothing

Last year, Gary Peters published a set of principles for health care reform on his official House web site, standards by which he promised he would judge health care reform legislation when it was debated on the House floor. Rep. Peters even said that if a health care reform bill met these principles he would vote for it and, if not, he would vote against it. So how did our representative stack up against his own standards, the so-called “Peters’ Principles”?

Peters’ Principle 1: Bring down health care costs for businesses and middle-class families.

In retrospect... Obamacare increases costs for all . . .

Insurance premiums: According to an August 18 Bloomberg Report, about 63% of businesses plan to make employees pay a higher percentage of their premiums starting in 2011, and most of them expect their cost for benefits to rise by 9%.

Administrative costs: Obamacare triples the number of tax forms that every small business owner has to fill out annually by requiring even the smallest firms to prepare and submit IRS 1099 forms to every vendor with whom they do more than $600 in business.

Small business costs: Obamacare does nothing to “bend down the cost curve” that small businesses face relating to health care insurance coverage. The increased costs of health insurance will cause many firms with 50 or fewer employees not to offer coverage, drop coverage if they currently offer it, layoff workers or limit hiring.

Peters’ Principle 2: Strengthen Medicare.

In retrospect: Obamacare weakens Medicare through . . .

Reduced coverage: Medicare’s chief actuary, Richard Foster, recently reported that cutting $575 billion from Medicare to implement Obamacare will result in Medicare recipients replacing Medicaid patients at the bottom of the healthcare ladder as early as 2019—that’s when fees Medicare pays to providers will be slashed to below Medicaid rates, which are already well below market prices.

Obamacare cuts $145 billion from Medicare Advantage plans, which Medicare’s chief actuary believes will cause up to 50 percent of seniors to lose their current health care coverage.

Higher prices: Obamacare includes $107 billion in tax increases on medical device manufacturers, prescription drug companies, and health insurance providers. Medicare’s chief actuary believes all these tax increases will be passed along to consumers in the form of higher prices. Seniors will pay the vast majority of these tax increases.

Obamacare includes a $210 billion 3.8 percent tax increase on unearned income for all Americans, which will hit seniors especially hard when they sell their houses to retire to smaller ones or use their homes for rental income.

Less access to medical services: Obamacare will cut $233 billion from Medicare Part A and B payments in order to pay insurance subsidies for 32 million new people, forcing one in seven hospitals, nursing homes, home health agencies and hospices out of business, according to the Medicare trustees April 2010 report.

Peters’ Principle 3: Be deficit neutral.

In retrospect: Obamacare adds to the deficit . . .

According to several analyses of CBO data, Obamacare does not control costs, and it does not reduce deficits. Instead, it adds an all new entitlement when we have no idea how to pay for the entitlements we already have.

Smoke and mirrors and financial gimmicks were used to pass the bill, which assumes 10 years of tax increases, about $500 billion, combined with 10 years of Medicare cuts, another $500 billion, to pay for only six years of spending which has been artificially reduced through the exclusion of the so-called Medicare “doctor fix”—the cost of which will eventually be paid anyway.

Recently published estimates place the true 10-year cost of Obamacare in ten years at $2.3 trillion, resulting in a $461 billion 10-year deficit—an amount which only Beltway insiders like Gary Peters would consider “deficit neutral”.

Peters’ Principle 4: Move through a thoughtful, transparent legislative process

In retrospect: Passage was anything but transparent and involved . . .

Just a few examples of how the will of the public was thwarted include: Last minute hyper-partisan deal making behind closed doors—no Republicans, no media allowed; Woefully insufficient time for legislators, media and the public to read, analyze and comment on the bill before its signing; Political gimmickry in which the House Democrats invoked “deem and pass” rules to bypass public debate, and the Senate entertained; using “reconciliation” to achieve passage, a tactic that has never been used for such a sweeping piece of social legislation; and “Vote buying” by Pelosi and Reid who coaxed needed House and Senate votes from Ben Nelson, Blanche Lincoln, Carl Levin and others with partisan, pork-barrel tactics and promises.

What more needs to be said? Vote against Gary Peters this election and put someone in office who has principles and follows them.

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Capitalism After the Crisis

Today I read a great article in National Affairs called "Capitalism After the Crisis." It discusses what is happening to the idea of capitalism after the recent economic crisis, and makes some very important points. One of the most important ideas is that the idea of capitalism is dying today, but not because of it's failures, but instead because we are turning away from capitalism:

When the government is small and relatively weak, the way to make money is to start a successful private-sector business. But the larger the size and scope of government spending, the easier it is to make money by diverting public resources. Starting a business is difficult and involves a lot of risk — but getting a government favor or contract is easier, and a much safer bet. And so in nations with large and powerful governments, the state tends to find itself at the heart of the economic system, even if that system is relatively capitalist. This tends to confound politics and economics, both in practice and in public perceptions: The larger the share of capitalists who acquire their wealth thanks to their political connections, the greater the perception that capitalism is unfair and corrupt.
Under Democratic-control and influence, America is increasingly becoming less a company where your fortunes are defined by what you do, and is increasingly becoming a nation of who you know- who your political connections are, who is giving you grants of taxpayer money, who your parents are, etc. If you have a million dollars now, the best way to turn it into two million is not to work harder and develop a better product- it is to lobby government to have government help protect your product from competition, or to give you a government contract, or to help you in some other way. Our nation is becoming corrupt under Democrats and corruptible Republicans.

Think about what is going on today, especially in the debates regarding healthcare and energy. Supporters of government control of these areas of the economy talk about all the failures of these 'private capitalist systems'- but over the past decades, energy production and healthcare have become amoung the most non-private non-capitalist systems in our economy. The soda-pop market or movie business does not have the same problems as transportation, energy, healthcare, etc- and the difference is not that these problem areas are more capitalist, it is that they are less capitalist.

The problem with healthcare is not not enough government, it is too much government. The problem with energy is not not enough government, it is too much government. The problem with transportation is not not enough government, it is too much government. The problem with education is not not enough government, it is too much government.

The sad thing is, America might have turned the corner towards statism and corruption, and what once made us exceptional may have been lost forever:
Once economic and political systems are built to reward relationships instead of efficiency, it is very difficult to reform them, since the people in power are the ones who would lose most in the change.
One way to possibly make America exceptional again is to remember how we got here. When your children read stories or watch movies, what sort do they read or watch?
The image many Americans have of capitalism is therefore that of Horatio Alger's rags-to-riches-via-hard-work stories, which have come to define the American Dream. By contrast, in most of the rest of the world, Horatio Alger is unknown — and the image of social mobility is dominated by Cinderella or Evita stories: fantasies more than plausible dreams.
Are your children taught to win the government lottery? To win riches by being a professional athlete? To go to Hollywood and star in movies? To marry someone rich? Or are you teaching your children that the way to success in life is hard work and a good attitude? And is our society still reinforcing those teachings by rewarding hard work and a good attitude more so than luck and connections?

Read the whole article- I'm only pulling from a tiny portion of it, but the whole thing is indeed a good read.

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Let Them Go Their Way, while the Oakland County Republican Party Holds its Convention

Today was the Oakland County Republican Convention. As an elected official, it is my duty to attend and be active, and I was. I chatted with several people about the auto loan, voted on procedural stuff, and listened to the speeches. It was a good time. If you're not an elected official or precinct delegate, I encourage you to do so and become active in the party- the only way to truly effect change is by using the tools that are out there, which include the Republican Party.

For those who were not there or who wonder what really occurs at these events, it is an attempt to meet people and get hear some good speeches. The speeches that were at the convention all had pretty much the same themes, and I write about them now to give you a window into what the Republican Party in Oakland County, Michigan, is thinking.

Ronald Reagan featured prominently in every speech. In fact, the keynote speech (found here) by Oakland County Executive L Brooks Patterson was basically just a series of quotes from Reagan. Apparently when Republicans talk about getting back to the basics and being a party of ideas and solutions, what they mean is going back to Reagan and the points he talked about- and that's not a bad thing, because the more I learn about Reagan, the more I think he got it. For example, see my earlier post about his "A Time for Choosing" speech.

Patterson drew heavily on Reagan's 1975 speech to the Conservative Political Action Conference (CPAC). You will immediately see its relevance to today as I quote from it:

Since our last meeting we have been through a disastrous election. It is easy for us to be discouraged, as pundits hail that election as a repudiation of our philosophy and even as a mandate of some kind or other. But the significance of the election was not registered by those who voted...

...Now, it is possible we have been persuasive to a greater degree than we had ever realized. Few, if any, Democratic party candidates in the last election ran as liberals. Listening to them I had the eerie feeling we were hearing reruns of Goldwater speeches....

...But let’s not be so naive as to think we are witnessing a mass conversion to the principles of conservatism. Once sworn into office, the victors reverted to type. In their view, apparently, the ends justified the means....

...Our task is to make them see that what we represent is identical to their own hopes and dreams of what America can and should be. If there are questions as to whether the principles of conservatism hold up in practice, we have the answers to them. Where conservative principles have been tried, they have worked....

Americans are hungry to feel once again a sense of mission and greatness. I don ‘t know about you, but I am impatient with those Republicans who after the last election rushed into print saying, “We must broaden the base of our party”—when what they meant was to fuzz up and blur even more the differences between ourselves and our opponents.

It was a feeling that there was not a sufficient difference now between the parties that kept a majority of the voters away from the polls.... Our people look for a cause to believe in. Is it a third party we need, or is it a new and revitalized second party, raising a banner of no pale pastels, but bold colors which make it unmistakably clear where we stand on all of the issues troubling the people?

Let us show that we stand for fiscal integrity and sound money and above all for an end to deficit spending, with ultimate retirement of the national debt.

Let us also include a permanent limit on the percentage of the people’s earnings government can take without their consent.

Let our banner proclaim a genuine tax reform that will begin by simplifying the income tax so that workers can compute their obligation without having to employ legal help.

Let our banner proclaim our belief in a free market as the greatest provider for the people.

Let us also call for an end to the nit-picking, the harassment and over-regulation of business and industry which restricts expansion and our ability to compete in world markets.

Let us explore ways to ward off socialism, not by increasing government’s coercive power, but by increasing participation by the people in the ownership of our industrial machine.

Our banner must recognize the responsibility of government to protect the law-abiding, holding those who commit misdeeds personally accountable.

We will maintain whatever level of strength is necessary to preserve our free way of life.

A political party cannot be all things to all people. It must represent certain fundamental beliefs which must not be compromised to political expediency, or simply to swell its numbers. I do not believe I have proposed anything that is contrary to what has been considered Republican principle. It is at the same time the very basis of conservatism. It is time to reassert that principle and raise it to full view. And if there are those who cannot subscribe to these principles, then let them go their way.

I couldn't have said it any better than Reagan, and I hope that the Republican Party in Oakland County really believes in returning to the wisdom of Reagan, Goldwater, Coolidge, Lincoln, Jefferson, Madison, and Washington. Our country and county will be better for it.

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