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Article Artículo

News Flash: Robert Samuelson Tells Us that Alan Greenspan Also Doesn't Like Social Security and Medicare

Proving once again that you can get just about anything into the Washington Post as long as it agrees with the party line, Robert Samuelson used his column to tell us that Alan Greenspan agrees with him about Social Security and Medicare being too generous. Before getting into the details, let's first deal with the question as to whether Mr. Greenspan should be viewed as an expert on anything other than his shoe size.

Samuelson tells readers:

"Why should we listen to Greenspan? After all, wasn’t he the guy who brought us the 2008-2009 financial crisis? Well, no. Granted, he made huge errors, but so did many others. If Greenspan had become a professional musician, the financial crisis would still have occurred. And despite the crisis, Greenspan remains a highly original economic thinker."

Basically Samuelson is giving us the "who could have known amnesty" story. Yes, there were a lot of people that should have seen the $8 trillion housing bubble ($12 trillion in today's economy) whose collapse wrecked the economy, but how does that excuse the Fed chair for being completely clueless about the economy? 

We saw an unprecedented nationwide run-up in house prices in the years 1996 to 2006. There was no accompanying increase in rents, which just kept pace with the rate of inflation over this period. Vacancy rates were already hitting record highs as early as 2002. You didn't have to be a genius to see that there was a bubble here. It also should not have been hard to imagine that the U.S. economy would have bubbles since the collapse of the stock bubble (also on Greenspan's watch) had just thrown us into a recession in 2001.

CEPR / November 21, 2016

Article Artículo

Haiti

Latin America and the Caribbean

World

Haiti Election Primer, Part 5: The International Community

Ever since the first democratic elections in 1990, the influence of foreign actors over Haiti’s political process has only increased. Foreign donors have financed Haitian elections, UN troops have transported ballots and guarded polling stations, international observers have granted (or withheld) legitimacy to electoral outcomes, and foreign embassies have intervened when postelectoral crises erupt. Due to this preponderant role played in elections, the so-called international community ? the polite term for the dominant powers, organized now as the Core Group ? has often had the last word in Haitian politics.

This state of affairs has engendered even greater distrust in the political process. Sensing that it was not voters but foreign diplomats who decided who could be president, Haitians’ participation in elections has plummeted, from greater than 50 percent participation a decade ago to only about 25 percent last year. But with the developments over the past year and a half, that cycle looked to be breaking down.

The decision of the Haitian authorities, with the support of civil society, to rerun the election was a huge blow to the US and its allies in the international community. The Core Group (which brings together the ambassadors of the US, Canada, France, Brazil, Spain, the European Union, and the special representatives of the Organization of American States and the secretary general of the United Nations) had vigorously opposed calls for a verification commission and the formation of a transitional government after the October 25, 2015 elections. Many advocated for a continuation of last year’s vote, despite the protests of political actors and civil society, and the boycott of second-place finisher Jude Celestin. As Haiti expert Robert Maguire noted at the time, “the objective seems simply to be able to check an ‘elections done’ box.”

The US and the Core Group was also worried that new elections might give the Lavalas-aligned candidates (Maryse Narcisse and Moïse Jean-Charles) a better chance at the presidency. “They're not thrilled with Aristide’s forces coming back,” a US congressional source told Reuters regarding the Obama administration’s reaction to the antifraud protests. Another concern for the Obama administration was keeping Haiti ? where Hillary Clinton had developed a negative reputation ? out of the headlines during the US presidential campaign.

An organized and mobilized civil society rejected the dictates of the foreign actors and the interim government that took over when former president Martelly’s term expired responded to these demands. Confronted by this stunning development, European Union observers pulled out of the country after the decision to rerun the presidential election. The US withdrew $2 million in funding that remained in a UN-managed election basket fund and, with Canada, pledged not to provide additional money for this year’s election. Foreign aid was reduced over the last year, with many embassies refusing to attend meetings with the provisional president, or even go to the National Palace over the last nine months.

Jake Johnston / November 20, 2016

Article Artículo

Haiti

Latin America and the Caribbean

World

Haiti Election Primer, Part 4: Hurricane Matthew

Read Part 1: Timeline of Key Events, here.
Read Part 2: Presidential Candidates and Their Parties, here.
Read Part 3: The Parliament, here

The devastating passage of hurricane Matthew has changed the dynamics of the upcoming election in Haiti. Following last year’s fraudulent elections, the new electoral council has been making changes in order to produce a more legitimate outcome this year, but the hurricane has raised new concerns.

A significant number of voting centers in the affected area have been destroyed or damaged. Many are also being used as temporary shelters. Efforts have been ongoing to repair or set up tents to replace voting centers, and the electoral council has stated that 80 percent of damaged voting centers have been repaired, and that all are able to be reached. However, the true test will come Sunday.

Additionally, many communities remain almost completely out of contact and unable to be reached. Electoral materials have been distributed throughout the country, but there is a high probability of delays on Sunday morning in some hard-to-reach areas. Damage to infrastructure, and ongoing flooding in parts of the country could also dissuade voters from going to the polls. Turnout ? which has already reached abysmal levels in recent elections ? will be a key indicator.

Many voters also lost their identity cards in the storm. Though it is unclear how many Haitians were impacted, and the government has pledged to provide new cards to those in need, the full scale of the problem is still unknown. The government agency responsible for providing the ID cards said last week that only 2,000 new cards have been requested, indicating that many may simply be dealing with basic necessities like having a roof over one’s head or securing food, rather than voting. This has created uncertainty around the ability of Haitians in the southern peninsula to exercise their democratic rights. 

Beyond the technical problems that have been created by the hurricane, there are severe humanitarian issues. Hundreds of thousands across the southern peninsula have been left with no homes, no crops and no safe water. Relief efforts are ongoing, but have been inadequate to address the many needs. Is it simply too soon to ask the Haitian people most impacted by this storm to think about an election?

Between 10 and 15 percent of registered voters reside in the storm-ravaged southern peninsula, and many more in the northern departments that have more recently been affected by heavy rains and flooding. It is clear the election in these areas will be significantly impacted, and many will be disenfranchised. It’s also possible that with lower turnout in more rural provinces, it will be, more than ever, Port-au-Prince determining who the next president will be.

This is likely to reinforce centralization in the “republic of Port-au-Prince”, further isolating rural provinces and towns that have long felt disconnected from the political and economic elite in the country’s capital.

Jake Johnston / November 18, 2016

Article Artículo

Haiti

Latin America and the Caribbean

World

Haiti Election Primer, Part 3: The Parliament

Read Part 1: Timeline of Key Events, here

Read Part 2: Presidential Candidates and Their Parties, here

Often lost in the discussion of Haiti’s presidential race is the fact that many legislative seats are up for grabs as well, including more than half of the Senate. Currently, the parliament is pretty evenly split between political factions but with such a high number of seats left to be decided the balance of power could shift dramatically this weekend. Control of the legislative body is especially important in Haiti’s political system, where it is parliament that approves the new prime minister and government program.

The presidential election was scheduled to coincide with the expiration of one-third of the Senate. Ten Senators had been elected to six-year terms in 2010, so ten first-round races for senate seats will be conducted on November 20. Six second-round Senate races and two dozen second-round races for Deputy will be held as well. The second-round races are the continuation of last year’s fraud- and violence-plagued elections.

For the ten first-round senate elections (one in each department), 149 candidates have registered, coming from 43 different political parties. Interestingly, it is Fanmi Lavalas and Pitit Dessalines who have registered the most candidates of the four major presidential parties with 10 and 9 respectively. With candidates competing in all ten departments, it could bolster rural votes at the presidential level. PHTK and LAPEH, on the other hand, have registered 7 and 6 candidates respectively.

For the second-round senate races still to be competed, parties allied with PHTK make up the majority of candidates. Due to high levels of fraud and violence in the August 9, 2015 legislative election, first-round reruns were conducted for these races in 3 departments (Center, Grand Anse and Nord) last October. Nine of the 12 Senatorial candidates participating in this Sunday’s second round are from PHTK, Bouclier and Consortium (all allies) while no other party has more than one candidate. With two senators being elected from each of these races, PHTK and its allies are guaranteed at least one additional seat in each department.

At the deputy level, there are 25 second-round races that will be completed on Sunday. Again, it is PHTK and allied parties that make up the largest number of candidates, accounting for 40 percent overall, putting them in a good position to pick up seats in the lower chamber. The number of races, broken down by department is as follows: West (6), North (6), Artibonite (4), Center (2), Grand’Anse (2), South-East (2), South (2) and North-West (1).

Jake Johnston / November 17, 2016

Article Artículo

Haiti

Latin America and the Caribbean

World

Haiti Elections Primer, Part 2: Presidential Candidates and Their Parties

Read Part 1: Timeline of Key Events, here.

In a crowded field of 54 presidential candidates, the top two finishers in last year’s elections were Jovenel Moïse (PHTK) and Jude Celestin (LAPEH). Third and fourth were Moïse Jean-Charles (Platfom Pitit Dessalines) and Maryse Narcisse (Fanmi Lavalas). Although the earlier vote was plagued by fraud and irregularities and the results were eventually discarded, the top four finishers on October 25, 2015 are expected to lead the pack of 27 candidates participating on Sunday, November 20. Here is a closer look at the principal candidates heading into this weekend’s election:

Jovenel Moïse is PHTK’s candidate. Prior to the 2015 elections when former President Martelly selected Moïse as his successor, the lanky agricultural businessman from the North was a political unknown. Moïse’s company Agritrans runs a banana plantation primarily for export in Trou-du-Nord and was set up with government financing under Martelly’s administration. During the campaign, Moïse has branded himself as “The Banana Man” (Nèg Bannann Nan). He promises to revitalize Haiti’s neglected agriculture and to remobilize Haiti’s military, which was disbanded in 1995.

While in office, Martelly campaigned aggressively for Moïse and was accused of using state resources to promote his party’s candidate. For this reason, Moïse was perceived by many as a weak Martelly surrogate. One irony of the long delay since last year’s vote is that PHTK’s Moïse may actually be in a better position now. Time has allowed him to step out from under Martelly’s shadow, posing as an opponent to the provisional government rather than the ruling party’s candidate. PHTK and its political allies in the parliament have accused the interim government and the CEP of being biased in favor of “Lavalas” and claimed that the elections may be rigged against them. They have also consistently questioned the legitimacy of the provisional president, even at one point calling on police officers to disobey orders.

After the Hurricane, PHTK leaders threatened the provisional government with street protests and legislative action if elections were not held within weeks of the storm and have been publicizing polling (notoriously suspect in Haiti) that shows Jovenel Moïse with the highest level of support among presidential candidates.

Haiti’s interminable election cycle has depleted the finances of many parties, but although PHTK is facing similar problems, they are likely the party with the deepest pockets. With greater access to resources, the party was able to continue to campaign - including in the hurricane-hit south where Moïse distributed aid to victims. Well-financed and with a cadre of international election advisors, PHTK has many factors working in their favor.

In their quest for the presidency, PHTK has allied with local politicians that, in some cases, have been tied to corruption, drug trafficking and other wrongdoing. Though the campaign has distanced itself from Martelly, there is lingering dissatisfaction with the previous government, bolstered by recent allegations of corruption, which could weigh on voter’s minds Sunday.

Jude Celestin, the second-place finisher in last year’s election and the leading figure in the boycott movement, is the candidate of Ligue alternative pour le progrès et l'émancipation haïtienne (LAPEH). In the 2010 election, Celestin competed under the banner of INITE, the party of then-president René Préval. Those elections were also plagued by widespread fraud, violence and irregularities, many stemming from the fact that elections were held in the same year as the devastating 2010 earthquake that killed hundreds of thousands and left more than a million displaced. An Organization of American States (OAS) commission recommended changing the results, removing Celestin from the race and replacing him with Michel Martelly, without providing evidence that Martelly had actually received more votes than Celestin. The US then issued diplomatic threats, including a possible cut off of desperately needed post-earthquake aid, in order force the Haitian government to accept the changes.

Many expected Celestin to eventually call off the boycott and participate in last year’s second-round election, but his position was unwavering and led to the cancellation of the election. His supporters consider him a savior for preventing the fraudulent elections from standing; adversaries see him as the primary cause of the political instability of the last year. After 2010 and his role in cancelling last year’s election, Celestin hasn’t made many friends in the international community, though many close to him have worked over the last year to reestablish a relationship.

Celestin has championed his boycott’s role in getting the rerun, and has pointed to his experience at CNE, the national construction company, to present himself as a builder who knows how to get things done. After the Hurricane, Celestin offered to rebuild a key bridge and construction equipment was seen plastered with his campaign image.

With the provisional president Privert coming from an allied political party, Celestin is perceived to have benefitted from the change in leadership. But it is important to note that the interim government consists of politicians from many different movements and it would be a mistake to think all, or even most, are willing or able to help his campaign.

Still Celestin, similar to PHTK, has received significant private sector backing and can likely count on support from those sectors that have historically been allied with President Préval, giving him a political machine that should be able to generate votes on election day. Still, it is interesting to note that of the three former presidents currently active in politics, Préval is the only one to not openly endorse a candidate. University professor Jacky Lumarque was Préval’s chosen candidate, but was excluded from participating by the previous electoral council under Martelly.

Moïse Jean-Charles, a former Senator from the North department, finished third in last year’s election and is once again expected to be a top vote getter. Jean-Charles was the leading opposition voice against the former Martelly government and led street protests against his rule. Jean-Charles joined Celestin in rejecting last year’s election results and initially supported the interim government and the decision to rerun the elections from scratch.

More recently, however, Pitit Dessalines has struck a similar tone as the other leading candidates in calling for elections to be held as soon as possible after hurricane Matthew.  The party has also expressed discontent with the electoral apparatus and interim government and called for greater transparency, especially in the vote counting process.

Jake Johnston / November 16, 2016