Showing posts with label Running Out of Other People's Money. Show all posts
Showing posts with label Running Out of Other People's Money. Show all posts
Saturday, June 27, 2020
What socialism looks like today in Venezuela. Are these photos encouraging?
Link to photos
CARACAS, Venezuela (AP) — Venezuela’s economic collapse has left most homes without reliable running water, so Caracas resident Iraima Moscoso saw water pooling inside an abandoned construction site as the end of suffering for thousands of her poor neighbors.
Workers had long ago stopped building a nearby highway tunnel through the mountain above them. Yet, spring water continued to collect inside the viaduct and then stream past their homes, wasted. The construction firm had also left behind coils of tube.
Moscoso, 59, rallied her neighbors to salvage the materials and build their own system, tapping into the tunnel’s vast lagoon and running the waterline to their homes. Today, they’re free of the city’s crumbling service and enjoy what many in Venezuela consider a luxury.
“Everybody here has water,” said Moscoso, seated on the stairs of her hillside neighborhood of cinder block homes. “We all benefit.”
Venezuela’s water crisis is nothing new, but it’s started driving residents to extraordinary measures — banding together to rig their own water systems and even hand dig shallow wells at home. Water today is even more important as a way to protect against the pandemic.
Critics of the socialist government blame chronic infrastructure failures on years of corruption and mismanagement that have also left the electrical grid fragile and destroyed Venezuela’s once-thriving oil industry.
An estimated 86% of Venezuelans reported unreliable water service, including 11% who have none at all, according to an April survey of 4,500 residents by the non-profit Venezuelan Observatory of Public Services.
Full Coverage: Photography
María Eugenia Gil, of the Caracas-based non-profit Clear Water Foundation, said residents have no other choice than to hunt for water, breaking a nationwide quarantine that was imposed to slow the spread of the new coronavirus. They’re exposing themselves to illness or possibly spreading the virus to others, she said.
“They don’t have an alternative,” Gil said. “You can’t stay at home locked inside if you don’t have water.”
President Nicolás Maduro’s government has accused political foes of sabotaging pump stations, and recently celebrated the purchase of a fleet of 1,000 “super tanker” trucks from China to deliver water to residents.
That’s no solution for Arcangel Medina, 66, who recruited young men in his neighborhood to dig for five days, striking water at a depth of four meters (13 feet). He bought $200 worth of pipes and an electric pump so he can share the water with other homes.
“We went four months without running water,” said Medina, complaining that when city lines used to flow every two weeks, dirty water spewed from his faucets.
“It’s a blessing,” said Medina, one of a dozen residents in his sector who took the drastic measure. He next had to figure out how to get rid of the dirt pile on the street in front of his home.
Moscoso, who proudly organized her neighbors to build their own system, estimates that 5,000 people in her neighborhood now have water. It started flowing in May, said Moscoso, who works at the mayor’s office.
Their above-ground water line starts at the abandoned tunnel’s mouth and runs 1,000 meters (3,200 feet) - under a highway, strung from power poles over a city street and down to their homes.
Four other neighborhoods have run similar lines from the tunnel.
Moscoso said the water is perfectly safe, drinking down a glass as proof. She declined to say how much it cost them after salvaging the abandoned pipes, claiming she hasn’t had time to add up the expenses.
“For me it’s priceless,” Moscoso said.
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Tuesday, June 4, 2019
Zimbabwe socialist tyranny leads to "food insecurity"
Zimbabwe: Between land ownership and food security
A land dispute in Zimbabwe has highlighted a major hurdle in the country’s new agricultural policies. There is a need for better food security and an economic upturn, but also for a more transparent land reform.

Farfell Coffee Estate is known in countries like Sweden, France and the US for its products. The farm employs 600 workers, exports macadamia nuts, 1,300 tons of avocados to France each season, and its coffee is in demand in over 50 countries around the world.
For estate owner Richard Le Vieux, the future of the farm is, however, uncertain. He is facing charges for refusing to make way for Remembrance Gwaradzimba, son of provincial minister Ellen Gwaradzimba, who went to the farm together with the police holding a letter claiming ownership of parts of the farm in February 2019. The demand was that Le Vieux should cede half of his estate to the new owners who were purportedly given a land offer by the government.

Farfell owner Richard Le Vieux has been grappling with court cases over the ownership of his farmland
Le Vieux resisted but what followed were arrests, detention and court appearances that have disrupted operations at the farm for the past four months. "It is very unfortunate what has happened here. I have been targeted in an individual capacity," Le Vieux told DW. "It is counterproductive for everything that the new administration is trying to achieve, which is to move the country forward after the chaos of the previous 20 years."
For the farm laborers the land dispute has also resulted in uncertainty. Leni Kambarami, a mother of three, has worked in the farm's avocado packing sector for four years. She is worried about losing her job if the compulsory acquisition of the farm is allowed to go ahead. "I have three children, two are going to school. I will not be able to pay their school fees, let alone have income to buy food,” she said. "If this farm is taken, it will be a big blow."
‘Anything productive should be protected'
Although not as violent as in the early 2000s, the land redistribution claims have again cropped up, with a few remaining productive white commercial farmers being targeted. Although this was done to correct unfair land ownership imbalances dating back to the colonial era, the difference today is that Zimbabwe is very aware of the economic downturn the country experienced over the past 20 years.
Additionally the country's image on an international playing field is at stake. After years of economic isolation, the country "is open for business," as President Emmerson Mnangagwa mentioned repeatedly after the ousting of longtime leader Robert Mugabe..
In what could provide some interim relief, the government is said to have taken a decision to stop any fresh farm invasions and occupations. "Government policy is to protect the current businesses that are going on. Anything that is productive is protected," proclaimed government spokesperson Nick Mangwana. "It is not our policy to disrupt productive land. It is not our policy to disrupt or confiscate land or property, we respect property rights."
The director of the Commercial Farmers Union of Zimbabwe, Ben Gilpin, said the government should fix landownership policies and put a stop to attempts to acquire the land of remaining productive farms. "We would like to see this become policy. Clearly, we have asked for a moratorium many times in the past and it would send a positive signal," Gilpin said. "Any time there is disruption on productive land it sends a negative message and investors get very gun shy when they see that this kind of thing can still happen at this time."
Zimbabwean economic analyst Vince Musewe believes that the handling of land redistribution is currently based more on politics than on actual research. "You can see that there is a disconnect between national policy and what happens on the ground at provincial level," Musewe told DW.
Musewe criticizes the government for dragging its feet. "There's plenty of land for everybody if you want to get into farming. But the problem has been that people who have jobs elsewhere end up getting a farm and not being productive on the farm." Proper land redistribution can only be done when a land audit that is currently underway is finished. The problem is, he says, that in the past one and a half years, only eight percent of the land has been audited.
Read more: Zimbabwe's white farmers sue South Africa
Food insecurity
In the last land reforms, about 4,500 productive commercial farmers lost farms and only a small number, estimated at fewer than 500, are still operating. Much of the redistributed land is either idle or poorly utilized.
What is even more harrowing than fresh land disputes, however, is a looming drought, says Musewe. In the event of another drought, the country needs about 1.3 million tons of food to be food secure, he says. Currently Zimbabwean farmers are producing just over half that amount.
"The priority is to make sure that the large farms are being productive. The second is the issue of small-scale farmers – if they are productive, you also have food security because they don't have to be fed," says Musewe. "We have the land, we have the water systems. So it's a matter of investment, implementation and project management."
Sella Oneko contributed to this article.
Friday, May 17, 2019
Haiti, Venezuela corruption and looting the countries resources.
Without Venezuela’s oil, Haiti struggles to keep lights on
When her daughter was 4 years old, Jennifer Jean started a small catering business in Bourdon, a lower middle-class district of the Haitian capital.
Starting with the occasional wedding or corporate meeting, she grew the business into a venture that earned her as much as $1,000 a month, enough to pay bills and send her now-teenage daughter and her 7-year-old son to a good private school.
Then the blackouts started, making it impossible to do basic activities. Without refrigeration, she now has to buy ice on the street to keep her prepared food cool.
"Back in the day you were able to take your car out any time of night, 1 a.m. or 2 a.m.," said Jean, who is thinking of migrating to the United States. "Now all the streets are dark. You just don't know what you are going to run into."
"Back in the day you were able to take your car out any time of night, 1 a.m. or 2 a.m.," said Jean, who is thinking of migrating to the United States. "Now all the streets are dark. You just don't know what you are going to run into."
Through the Venezuelan aid program known as Petrocaribe, Haiti once received roughly 60,000 barrels of oil a day under favorable terms that beat anything on the open market. More than half the costs of the oil, which came at a heavily discounted price, were repayable over 25 years at a 1% interest rate, allowing the government to supposedly use the windfall for economic development. In exchange, Haiti reliably backed Venezuela against the United States in regional forums such as the Organization of American States.
But as President Nicolás Maduro's government has struggled with plunging petroleum production and a cratering economy, Venezuela has stopped sending billions in subsidized oil to countries throughout Central America and the Caribbean, including Haiti, where the end of cheap oil has meant a sharp reduction in power.
Meanwhile, Haiti's Bureau of Monetization of Development Aid Programs, or BMPAD, quickly ran into its own difficulties. After starting to buy oil on the global market, the bureau said this year that it had run out of operating funds and stopped regularly delivering fuel needed by power station operators to keep the lights on.
Now, much of Haiti's population enjoys electricity for just three hours a day.
Nighttime activity has ground to a halt as armed robbers hold up street merchants or break into people's homes in darkness. Gas stations have gone empty for days, making it nearly impossible for many Haitians to get to work, run errands or take their kids to school. Hospitals are forced to rely on backup generators.
"We can't find gas for our vehicles. Our clients can't come to us. Sales are down in every sector," said businessman Reginald Boulos, whose investment group runs major supermarkets and car dealerships.
The fuel crisis is helping push Haiti's economy dangerously close to recession. GDP growth in 2018 was 1.5% — less than half what the government expected. Economists say this year will likely be the same. Annual inflation has also reached an estimated 17%, while a gallon of gasoline sells on the black market for between $6 and $12.
Fuel distributors are reimbursed by the state to the tune of about 27 cents for every subsidized gallon of gasoline sold to customers. That helps keep the price around $2.50 a gallon. But the cash-strapped Haitian state has gone months without paying subsidies and at one point owed some $71 million, leaving Haitian businesspeople to call for the end of the complicated state-oil purchase structure.
The path out is murky at best. When President Jovenel Moise tried to eliminate fuel subsidies on July 6 and raise prices of various petroleum products by 38% to 51%, protesters took to streets across the country calling for him to step down. The decision was quickly reversed, and the International Monetary Fund has since offered the hemisphere's poorest nation a $96 million low-interest loan.
Protesters are also enraged by corruption.
A Haitian senate investigation found that more than $2 billion in profits from the Petrocaribe program had been wasted or stolen, leading to a months-long citizen campaign calling for more probes and prosecutions.
A Haitian senate investigation found that more than $2 billion in profits from the Petrocaribe program had been wasted or stolen, leading to a months-long citizen campaign calling for more probes and prosecutions.
"The shortages are creating panic. The economy is being damaged. The best approach is liberalizing the market and regulating it, to avoid these problems," said Maarten Boute, the CEO of Digicel, Haiti's largest mobile phone network provider.
Some other countries in the region have weathered the end of Petrocaribe far better. Jamaica is seeing record economic performance. Cuba, however, is suffering from food and fuel shortages, although not as grave as Haiti's.
Moise's administration has asked BMPAD, the finance ministry and private energy companies to suggest ways to further open up the petroleum market. But BMPAD's director, Fils Aimé Ignace St Fleur, says the agency will not give up its role overseeing the importation and wholesale pricing of petroleum in Haiti.
"The state reserves the right to intervene directly in the market," he said.
But in the district of Bourdon, Jean says her situation is becoming dire.
Jean says she can't find gas, the price of a taxi has doubled, and her children often strain their eyes to study in dim light.
"Without electricity," she says, "we're in a very difficult situation."



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Read more here: https://www.newsobserver.com/news/business/article230511009.html#storylink=cpy
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