Monday, June 16, 2008

Why Does My Underwear Get Tight

A Hundred Years of the Birth of Salvador Allende

( Posted in The Desk, June 11, 2008 )

On December 4, 1972, the then president of Chile, Salvador Allende, had the opportunity to appear before the UN General Assembly in New York and to report on the country chairing. Many things have changed over the last 35 years but others are very similar and even, in some cases, has widened the gap between the desirable and the harsh reality.

As for the negative changes, an update to 2008 I should say, for example: "I come from Chile, a small country, in which any citizen today is no longer free to express themselves as best choice, with a disturbing intolerance cultural, religious and ideological, where racial discrimination has no place. A country with an atomized working class and poor in different unions, where universal suffrage and secret, is becoming less participatory and more and more the vehicle to enshrine a political regime inclusive, with a parliament which suffered a severe disruption in its operation since its establishment 196 years ago and remains a limited power and questionable representativeness popular, where the courts are not independent of the Executive and the economic and military. A country which since 1981 has created a charter according to the needs of an oligarchy represented in the dictatorship of Augusto Pinochet and supported by Presidents Aylwin, Frei Ruiz-Tagle, Lagos and Bachelet, whose public life is organized civil institutions under the supervision of the Armed Forces, with an extremely limited democratic spirit. A country of about seventeen million people in the past 30 years there has been no Nobel prize for literature, as if they did Gabriela Mistral and Pablo Neruda, both sons of modest workers a less pretentious and arrogant Chile but also more humane and noble. "

Following the same line of argument, today is not possible to say that the people of Chile "is fully delivered to the task of establishing economic democracy, so that economic activity responds to needs and expectations, and not the profit interests particular. " Less could be added that "workers are displacing the privileged sectors of political and economic power, both in work centers, as in the municipalities and the state. " Rather we should say that the process in the country is completely opposite and not be directed, then held Allende, towards overcoming the capitalist system, even worse, capitalism is consolidating more and more savage and ruthless.

In his speech applauded, Allende stated the need to serve the enormous needs of the Chilean people, all of our economic resources, which according to him was directly related to the recovery of the dignity of Chile. To Salvador Allende, we should end up with a situation in which we, Chileans, squirming against poverty and stagnation, we had to export huge amounts of capital for the benefit of the most powerful economy in the world, so that the nationalization of basic resources was a historical claim. Our economy could no longer tolerate the subordination implied to have more than 80% of exports in the hands of a small group of large foreign companies that had always prefix their interests to the needs of countries which were operating profit .

could not accept the scourge of large estates, commercial and industrial monopolies, credit for the benefit of a few nor brutal inequalities in income distribution. This fact denounced by President Allende, has not changed significantly and has even worsened, since today's monopolies and concentration of wealth is even worse than then, so also the land and major natural resources remain usufruct of transnational capital and national economic groups.

regard to copper, Allende claimed that "only in the last forty-two years away, in that period, more than four billion dollars in profit ...." How much more should not be shocked today when only In 2006, multinational companies that exploit the Chilean copper took the modest sum of 20 billion dollars. At that time, Allende comparing figures and asked to keep in mind that only a fraction of that amount would be secured forever proteins all Chilean children. With respect to amounts drawn foreign capital today we can say, as Allende did that for years could ensure an appropriate education for all children in Chile. The trouble is that this not only applies to copper, but also to water, soil, and all fisheries and forest resources available to the country for its development.

At that time, as Allende today, we can say that "Chile is also a country whose economy is alienated to foreign capitalist enterprises ..., a country with an economy highly sensitive to the external environment, where millions of people have been forced to live in conditions of exploitation and misery of open or disguised unemployment. "

A much has come back to Chile in almost every aspect even today are still valid conclusions de Allende, when referring to the Chilean people as politically mature. Today is just the opposite, because as people exhibit a political immaturity that prevents capital from lack of practice, reflective capacity, neglect, mediocrity, laziness, and even superior, active and determined to deal with looting, theft and all kinds of abuses that we are victims.

today's tragic that Allende's speech ovation, also extends to the consequences which he announced as a result of the globalization process and are now becoming increasingly apparent, when he held that the outlook for Chile, as for other countries Third World were simply doomed to exclude the possibilities of progress, welfare and social liberation more and more millions of people, relegating them to a subhuman life.

Still, as much as we trust Beyond that the great values \u200b\u200bof humanity will prevail and not be destroyed.

Marcel Claude, an economist.

Friday, June 6, 2008

How To Make A Ceiling Curtain Rod

"Sale of VAT or fuel taxes? Address

( Published In Strategy June 6, 2008 )

The union of truckers once again in the story makes tuning the foundations of the palace of La Moneda. The threat of unemployment was running at the palace officials, including the Queen to stop the impending protest action. This is a sign that the famous specific tax on fuel is left very little life and eventually go away. However, whatever the justice of the demands of the truckers, I must ask the effectiveness of this measure to solve the problem of fuel. First, it is important to understand that the price of oil is rising and is not spring from the government of Chile to avoid it. What could be done and not done for the country reduce dependence on petroleum as the main, is a long-term policy that had anticipated. It preferred to leave everything to the market and we know that private investors will only invest in businesses round with short-term gains imminent. The consequences were entirely predictable and are now beginning to spend the account.

The problem is that truck drivers demanding the elimination of the specific tax on fuel. This is favoring the more affluent sectors of the country, and that, having increased energy consumption per person, are especially beneficial owner of the elimination of this tax. It also worsens the problem of air quality by encouraging car use. A more effective mechanism that will ensure a stable price increases medium-term prospective controlled before they could be absorbed, by the population, with reductions in the value added tax that is most damaging to the pocket poorest. If a kilo of bread costs a thousand dollars, in just over two months, a poor family gives the State the 20 pesos it given as bonus compensation for the increases in the cost of living. If we consider a family with an income of 100 pesos a month, of which there are many-who spends all their income on VAT products affected in only one month will give the State what he brings back from time to time as the maximum expression of generosity and social commitment.

If indeed this government had social sensitivity, would fall by as VAT and tax would raise significantly the profits of big business, but that would mean another government and another Chile.

Marcel Claude, an economist.

Thursday, May 22, 2008

What Does Your Pointer, Middle And Pinky Mean

May 21: Municipal Finance

( Strategy Published in Journal May 23, 2008 )

do not know what was more predictable the last May 21 "the presidential address or the reaction of the political class? The truth is that both overpost not left the script that we have, rather than saturated, the selection of figures called "political class." The Coordination mass fixer speech and almost mathematically Alliance to lash with all the power and energy. Both coalitions were absent for reasons not to do what they did, it is clear that "no reason for any accommodations, but reasons were much more than electoral and ideological opportunism is only part of the play of the current Chilean politics.

my interest not to applaud the actors involved or to comment on which of the two sides had the best theatrical performance. As fair, in my opinion, is to look at the founding of the speech substrate, the design of profiles and shapes society and independent of the carve-up and benefits that some will progress, and I have no doubt that no letter or word or phrase by Dr. Bachelet is not a scream from the rooftops that in Chile things are not going to change. Salmon dedicated to offering, this time supported to overcome the health crisis they face. Unqualified support to the hydroelectric project that are necessary Aysén to give effect to the energy demand of export development. Resources -40 million dollars for the country's image and thereby strengthen Chilean exports are mainly large companies that do not exceed 1% of them.

For the middle class and poor as usual, words of good breeding and placebo effect. Grant to purchase electric motors for SMEs; free PSU, personal computers for poor children featured; bond of 20 thousand dollars for poor pensioners, and so on.

Not that I look bad this kind of royalty, the welcome and much-but they do not change the character of the country project that we have submitted and that is why this piece of speech is but a guarantee that there is nothing to expect from this government. Only three things to include: maintaining the educational model embodied in the LGE that guarantees profits in education, recognition of the need to improve the conditions in which workers negotiate but nothing more than words, and in the municipal budget will continue the problem the vast inequality.

Marcel Claude, an economist.

Friday, May 16, 2008

Blue Dots On A Pregnancy Test

perfectly predictable, Mirror of Injustice in the World Hunger

( Posted in The Desk, May 16, 2008 )

There is some agreement that the municipalities are an ideal forum for the achievement of public policy, because they are an organization nearby public to the needs of citizens. However, the way they can achieve their objectives, it is similar for all groups. In our country, the financing of municipalities is an unresolved issue that causes much perception of abuse and injustice and, indeed, natural classification is common among rich and others poor municipalities. In the current scenario, it is obviously not an issue to be negligible because the level of responsibilities they face in areas as diverse as education or health, waste collection or repair of roads, etc..

If we consider that within the existing 345 municipalities, there a significant proportion-about 48% - which is below the national average of resources per capita, then the situation is not at all satisfactory. For example, Vitacura municipality with a population of 82 000 inhabitants, has a budget of over 31 billion pesos, instead Quillota, commune of the fifth region, with 83 thousand inhabitants, has a budget of 4 000 890 million pesos, or put another way, Vitacura being 6.3 times more than Quillota. And the latter must address three times the number of students that the community of the metropolitan area. In that same scenario and worse, there Alhué communes as in 2006 had no equity to make investments in its territory. These inequalities become a very complex problem, particularly in the case of poor communes, considering the very high amounts to be spent on education and health.

figures regarding municipal expenditure that can be analyzed from another angle in order to show how far we are from the development goals that we like to profess. Taken together, the municipalities manage financial resources constitute approximately 2.8% of GDP and only 13% of government spending in general. A far cry from what happens in European countries, in which the percentage local average is 43% of which is government spending. In Sweden, for example, the figure climbs to over 60%. For its part, South and Central America the average is 16.5%. In this regard Bolivia has a stake of 18.3%. Chile is far from these percentages, despite the political importance and relevance to publicly assigned to municipalities. Again, there is no agreement between what is postulated as of major importance and the resources available to do so.

And while it has developed tools that have allowed provide more resources to the municipalities, such as the Municipal Common Fund, it is not used in their full potential as it currently is 520 billion pesos approximately, which is wholly inadequate given the pressing needs they face, especially the poorest. In addition, the fund mainly comes from communal resources, for example, land tax and / or vehicle licenses, and very little central government, so it is a way to share the best distribute poverty or misery. Worse still, to this fund are commonly called rich-give-in percentages almost the same as poor communes, while the land tax all municipalities must spend 60%, Santiago, Providencia, Las Condes and Vitacura must contribute 65% . In terms of distribution This fund critics point to the lack of objective criteria and in accordance with the real vulnerability of communities.

Then, when questioned harshly acidic or municipal function or its results, it should consider the enormous responsibilities, functions and tasks to be met by municipalities, while the poor reception of resources, considering all of these - and the unimportance of municipal funds in relation to the central government's overall expenditure. In short, lasa decentralize responsibilities but not the resources available, which leads to the worst of all worlds since no one is ultimately responsible for meeting the needs of population. The government has the resources but not the responsibilities and the municipality has responsibilities but not resources. Result: frustration, poverty, injustice and central government as increasingly wealthy do not spend the proceeds of taxes and transfers that are public companies such as Codelco. At this point the lock is very clever in reducing or maintaining controlled spending. The problem is that so things are moving very little and inadequate educational, health or infrastructure are still procrastinating.

If we decentralize, is not enough that the central government to jettison its responsibilities, should also allocate resources to the municipalities to meet their obligations. Indeed, this is required by law. The development also involves, as we have seen, the greater availability of resources spent locally and not centrally.

Marcel Claude, an economist.