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Article Artículo

Katrina Redux: New Disaster, Same Contractors
Ben Fox of the AP reported earlier this week on foreign firms going to Haiti to try and capitalize on the long and expensive reconstruction process. One contractor, which we have written about previously is Ashbritt. Fox writes:
Pompano Beach, Florida-based AshBritt Inc. so far has invested $25 million in its Haitian reconstruction operation covering a soccer field.

Now all Perkins [the CEO of Ashbritt] needs is a government contract to make his investment pay off.

Jake Johnston / June 11, 2010

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David Brooks and the Power of Magical Thinking at the NYT

David Brooks doesn't like the stimulus, as readers of his columns know. Today he engages in a bit of magical thinking in putting out his case for deficit reduction.

His first invention is telling us: "deficit spending in the middle of a debt crisis has different psychological effects than deficit spending at other times." This is very interesting, what "debt crisis" is Brooks referring to? We can point to a debt crisis in Greece, and arguably Portugal and Spain, but it is not clear what that has to do with the argument for stimulus in the United States. There were debt crises in Latin America in the 80s, no one ever raised these in the context of the Reagan era budget deficits.

In the real world we would look to things like the ratio of debt to GDP in the United States (@60 percent) and compare it to the ratios in other countries and to the U.S. at other points in time. There are several countries with debt to GDP ratios of far more than 100 percent who are able to borrow money with no difficulty. For example, Japan has a debt to GDP ratio of more than 110 percent yet it pays less than 1.5 percent interest on its long-term debt. Right after World War II the debt to GDP ratio in the United States was also over 110 percent, yet interest rates were low and the economy had decades of solid growth.

The next thing we would do in the real world is look at the interest rates that the United States is currently paying. At present the interest rate on 10-year Treasury bonds is about 3.2 percent, near a post-World War II low. In short, the debt crisis is magic -- an invention of David Brooks -- not something that exists in the world.

Dean Baker / June 11, 2010

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Reforming Reform: Judicial Edition
The Wall Street Journal reports on moves by the Senate Appropriations Committee to block some funding for criminal justice programs in Haiti following the massacre at the prison in Las Cayes. Dionne Searcey writes:
The Appropriations proposal, put forth by Democratic Sen. Patrick Leahy of Vermont, says that in light of the incident at Les Cayes "no funds ... should be obligated for justice programs in Haiti until a thorough, credible and transparent investigation occurs, the results of which are made publicly available, and the [Haitian government] takes appropriate action."

The language, while not binding, is still powerful and would likely be honored. If the proposal is approved, at least one U.S.-backed justice-reform program in Haiti expects to shut its doors, according to people close to the group.
The program that will be probably be stopped is a $20 million project, administered by USAID. Although Haiti's criminal justice system does clearly need improvement and reform, it is worth pointing out that USAID money for justice programs have, in the past, been used to undermine the democratically elected government of Jean-Bertrand Aristide.

Jake Johnston / June 10, 2010

Article Artículo

Increasing Risk of Forced Evictions as Relocation Efforts Falter
Ansel Herz reports for Inter-Press Service on the ongoing problems between land owners and the "temporary" camps that have sprung up throughout Port-au-Prince. Following the announcement of a moratorium on forced evictions, there is still massive confusion according to Herz, who writes:
The Haitian government and U.N. agreed in April to a temporary moratorium on forced evictions of camps. They say no landowner should push people from land unless there is an alternative space that meets minimum humanitarian standards.

“We made the decision together. But applying it was another story,” Interior Minister Paul Antoine Ben-Aimie told IPS in an interview. “We haven’t communicated anything to the population so far.”

Jake Johnston / June 10, 2010