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Colombia

Investment in Colombia

Sunday, April 20th, 2008

bogota.jpgIt seems fairly certain that any serious US response to the humanitarian crisis in Colombia will have to wait until after the next president takes office. The 3.8 million Colombians currently living in exile have failed to penetrate the presidential bubble. And don’t bother asking Dick Cheney about this tragedy either. It’s not something he reflects on while fly fishing.

Dropping the remaining tariffs on products shipped between Colombia and the United States would certainly provide a revenue boost to the merchants now paying those taxes. But violence from the forty year old drug war in Colombia still scares away investors. The conflict has crippled the region and a free trade agreement won’t matter to millions of impoverished Colombians.

Trickle Down vs. Rising Tide
President Reagan justified tax cuts for wealthy Americans under the theory that well funded entrepreneurs would grow the economy through their wise investments. However the “trickle down” effect did not make up for lost federal revenues and the deficit grew during Reagan’s presidency.

On October 3rd, 1963 in Heber Springs, Arkansas President John Kennedy described how public works projects benefit an entire nation.

These projects produce wealth, they bring industry, they bring jobs, and the wealth they bring brings wealth to other sections of the United States. This State had about 200,000 cars in 1929. It has a million cars now. They weren’t built in this State. They were built in Detroit. As this State’s income rises, so does the income of Michigan. As the income of Michigan rises, so does the income of the United States. A rising tide lifts all the boats and as Arkansas becomes more prosperous so does the United States and as this section declines so does the United States. So I regard this as an investment by the people of the United States in the United States.

Since the United States is Colombia’s leading trade partner, this rising tide approach to public spending could also apply to our investment in Latin America. The Colombian free trade agreement currently pending in Congress however relies on the trickle down plan. It offers tax cuts to wealthy Colombian merchants as a panacea to the countries’ problems.

Reagan is the lazy farmer who dumps all of his seeds in the most fertile corner of the field. Kennedy prefers to carefully till the entire field and spread the seeds around evenly. Some of the plants will die in either case, but Kennedy’s egalitarian approach will result in a more bountiful harvest.

In Kind Aid
According to the World Economic Forum, Latin American countries have fallen behind European and Asian nations when it comes to internet network readiness. Upgrading information systems infrastructure in Colombia would give more Colombians access to the World Wide Web and an opportunity to trade directly with Americans here in the States. I’m sure eBay wouldn’t mind the extra traffic.

Providing foreign aid in the form of public works projects has the added benefit of preventing corrupt local politicians from diverting public funds to private accounts. Put people to work wiring up remote villages and self serving politicians will have a much harder time appropriating that investment for their own purposes. The local governor may insist on having the new server farm named after his favorite polo pony, but that shouldn’t hold things up too much.

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Colombia Deserves a Better Deal

Wednesday, April 16th, 2008

Barranquilla__Colombia_1.JPGThe US State Department estimates that Colombia ranks second only to Sudan in the number of internally displaced refugees. Up to 3.8 million Colombians live in exile, more than 5% of the population. Our country fuels this humanitarian crisis with $500 million in annual military aid, which is used in a drug war pitting the Colombian military against cocaine distributors and their militias. In the meantime Washington haggles over free trade agreements. Talk about misplaced priorities. A free trade agreement won’t help the Colombian refugee community anytime soon.

Does the conflict in Colombia really matter to the US? Well, the Colombian government recently seized 66 pounds of uranium from that nation’s largest rebel group, something the US government considers “disturbing”. Indeed.

Radioactive material in the hands of our enemy is never good news, and they’re probably not using it for clean energy production. The situation is just another example of a dangerously inept US foreign policy. The United States should fix its counterproductive relationship with Colombia.

Better Avenues for Investment
Here are some alternative ways to spend $500 million a year:
1) Humanitarian aid in the form of food, shelter, medicine and other necessities for displaced Columbians.
2) Research into the medicinal benefits of the cocoa plant, which has powerful analgesic qualities but which is also highly addictive.
3) Treatment for drugs addicts, so that they can get back to living productive lives.
4) Education programs to warn kids about the dangers of drug abuse.
5) Schools in remote Colombian villages, where education serves as a socio-economic equalizer, thereby giving poor communities leverage against dangerous local militias.

Treat the Illness
If every ounce of cocaine on the planet vanished overnight, thousands of cocaine addicts would still wake up in the morning needing a fix. Removing the drug doesn’t cure the addiction. Without remedial intervention, addicts will just move on to some other intoxicating substance.

Some people are more susceptible to addiction than others. Effective drug prevention programs help at risk kids before they ever get hooked. Plenty of recovered addicts have conquered their demons with a bit of intestinal fortitude and help from professionals. We can lessen the problem of drug addiction in America through a more therapeutic, less punitive approach.

The Bloody Black Market
During the days of Prohibition, alcohol production and consumption went underground. The ensuing gangster violence in Chicago and New York shocked the nation to such an extent that prohibition was repealed. Now cocktail parties are back in fashion. But drug and alcohol abuse still plagues America. In the modern era however, we’ve exported the intimidation and assassinations to places like Medellin and Cali. That’s why we need a fundamentally different arrangement with our Latin American friends.

Colombia is, after all, birthplace of the Goddess Shakira. So we owe them for their contributions to the artistic world as well.

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About Radical Avenue

If you want to find criticism of our government here in America, you won’t need to look far. When it comes to politics, it seems that everyone has a grievance. Radical Avenue on the other hand, takes a solutions oriented approach to public policy. It’s radical because I’m proposing fundamental changes to the structure of our government, like transferring commander in chief responsibilities to a small elected group. My philosophy is: Everyone knows we’ve got problems, so what are we going to do about it?

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