Archive for February, 2008

Civil Society missed a great opportunity

Wednesday, February 27th, 2008

I think the representatives of civil society were right to accept the invitation from President Bharrat Jagdeo to meet with him on the crime situation following the Bartica massacre.

My concern that they may not have properly grasped the opportunity for a meaningful exchange with the President arises from the anodyne statement coming out after two days of consultations.

That statement certainly does not make me feel safer or optimistic as the only matter of substance agreed is that civil society will have an opportunity to review the government’s security plan. Does this have anything to do with the reports referred to Special Select Committees chaired by the Prime Minister, including the one referred to as the Chang Report?

If the “plan” to which the representatives are privy is a separate plan what is the relevance of the work being done by the Special Select Committees?

Budget Focus 2008

Sunday, February 24th, 2008

2007 was the year of Cricket World Cup, the single largest sporting event ever held in Guyana. It was an event on which billions were spent by the Government of Guyana and the private sector, yet there has been no analysis of the returns and the extent to which expectations were met. Significantly, visitor arrival numbers were about 12% above the preceding year. With World Cup done, we do have tourism and infrastructure assets but the Stadium for example, which may have cost close to $10Bn to build, will have to be maintained at substantial annual cost.

Budget 2008 which had been planned for earlier in the year became a casualty of both the Lusignan (January 26) and Bartica (February 17) massacres. In the latter case the presentation was set for February 18th but the massacre on the evening before forced a cancellation. It was presented four days later on February 22.

Despite the extra days and the gravity of the situation only one paragraph on the Bartica massacre appears to have been added to the Budget Speech. The work of the Government and the nation must of course go on but the events of the weeks preceding the budget should have impressed on the Minister the pressing issues confronting the nation - crime, the increasing threat of flooding, inflation and the brain drain. To the extent that he dealt with any of these it was how many billions the Government was going to spend.

The ability of the economy to withstand the pressures of crime and spiralling prices will be tested in 2008 as Carifesta returns to Guyana. This and other significant events such as local government elections, the completion of the Berbice Bridge and the Skeldon Modernisation Project were the backdrop against which Minister of Finance Dr. Ashni Singh presented a G$119Bn budget - 8.5% higher that the latest estimates of 2007.

Please download the full publication at www.ramandmcrae.com

Compensation for lives and properties

Sunday, February 17th, 2008

Introduction

It took the January 26 massacre in Lusignan to bring home to the government that it had to confront the situation on the lower East Coast. Typically, one of its responses was to react to the calls by residents to “deal with” the Buxton crisis that has been festering for years. Despite an army presence over a couple of years the solution to what the government sees as the criminal dimension to Buxton seems as far away as when Shaka Blair was killed by the police in 2002.

Last weekend I again visited Lusignan meeting with relatives of the victims whose hopes for improvements in their daily lives are rapidly receding. The wish of many is to pack up and get out, not only from the community but from the country. All these persons claim to have been lifelong supporters of the PPP/C - and indeed the results from successive general elections would support this. As a community they feel deserted, with very little interest shown by officialdom after the initial public intervention.

Hopelessness

And over at Buxton, which I also visited, the situation is both different and similar. Hopelessness envelops a once glorious village and poverty is all around. This too is a village that except at one election has given its full support to the PNCR for which it seems to have received little in return. It is a broken community where, like Lusignan, any semblance of participatory democracy vanished decades ago. This is despite the fact that we now have three experienced ministers with relevant experience in the Ministry of Local Government - another example of a waste of taxpayers’ money and the creation of state jobs for party persons.

In their desperation, these communities now alternate between a dream that their political leaders will represent them and anger at themselves for even thinking this will ever happen. Yes the government went in the early days in Lusignan and in their typically imaginative manner even opened an account with one of the shops in the area where those who suffered direct losses could get some material assistance. And in Buxton the leaders of the PNCR have been visiting almost daily to meet with the residents including those who operate farms, but who are now subject to formidable restrictions on access to their farms.

Police capacity

While the government appears to have back-pedalled from the initial decision to clear all the farms in the backlands to improve security, it appears that there is still considerable clearing being done and that the police have been assigned responsibility for assessing and paying. It has been a long time since the government has shown such confidence in the police!

I am not convinced that the police under the Police Act have the authority or the capacity to assess and make compensation payments in what is a very complex technical issue. In fact every Commissioner of Police I have spoken to since 1993 has admitted that the force does not have the capacity to investigate more than basic fraud cases. How it will move from that level of incapacity to being able to assess losses and award compensation beyond the kind we had in the 2005 floods is to be seen. We recall that in 2005, surveys and data bases were conducted at some cost, which should mean that records are available to make some advances to those who suffer losses while their claims are prepared and submitted and for examination and payment.

Before President Jagdeo set up the Commission of Enquiry into the allegations against then Home Affairs Minister Gajraj, it had been suggested that a wider commission should be appointed to look into the matters concerning the East Coast. There can be no better time for that than now with the question of compensation high on its terms of reference. Despite our experiences with the flood we have no legislation or regulations governing the payment of compensation and instead the government relies on benevolence and ‘ad hocism’ to guide policy in this critical area.

Compensating agriculture

Despite the agricultural base of our economy we do not have a Compensation Fund or national insurance system for the sector. Agriculture, even in the best of circumstances is typified by persistent, high and a wide range of risks which could come from rain, sun, drainage and irrigation issues, pests, El Nino and La Nina, poor farming practices and good old government incompetence. Our present Minister of Agriculture holds an MBA, and while this may not have been in agriculture it should allow him to formulate a suitable compensation scheme for “his farmers.”

The Minister would find compensation schemes for agriculture as recent and as close as in Jamaica in August 2007, in South America, in Canada and the US, Europe and Asia. The one model that I especially like is that of Vietnam, setting out in considerable detail the basis for entitlement of compensation arising out of a 2003 resettlement scheme which had as its focus health care.

Constitutional guarantees

Given our own experiences, Guyanese would of course be cynical about whether what is set out in theory and law does in fact operate in practice. Usually it does if the citizens and their leaders hold the government accountable. Our constitution and the Investment Act 2004 guarantee citizens adequate and timely compensation, but for all practical purposes those guarantees seem to have been suspended when it comes to Buxton. The farmers who are suffering losses as a result of what Dr Luncheon calls the ‘line of sight’ initiative would certainly be affected, but when a people feels as deserted and dis-empowered as those communities do, constitutional rights are a useless luxury.

In the case of Vietnam, at the very early stages of project preparation, local authorities and leaders of different administrative levels in each of the communities affected were consulted and participated in the project design, while affected persons were informed on an individual household basis. The scheme provided for compensation for assets, income and businesses at full replacement cost with compensation for land regardless of the nature of ownership, while investments made on trees and crops are compensated at full replacement costs at current market prices. The headings under which compensation arose are: agricultural land; temporary loss of agricultural land; secondary affected persons; loss of structure; loss of business and income; loss of crops; and allowance during the transition period.

Guyana and Guyanese have the capacity to rise to this level of thinking rather than some mistaken belief or indeed strategy that we strengthen our own position when we fail to empower others. In fact all we do is push them towards the poverty mill from which the only escape route is out.

What about Lusignan?

This community has lost property and lives, but except in the most objective and impersonal way, it would be impossible to place a value on the lost lives. Yet, is it asking too much that even as it considers compensating the people of Buxton for their crops, that the government go beyond items from a friendly hardware shop and assist the residents of Lusignan who must now look only to private initiatives such as the one by Kaieteur News.

There is nothing revolutionary about victim compensation programmes to provide financial compensation for victims of violent crime. Such programmes are found around the world and in 2000 neighbouring Trinidad and Tobago proclaimed The Criminal Injuries Compensation Act, although I have been unable to ascertain whether the board to administer it has yet been brought into existence.

A typical financial compensation programme provides compensation of defined amounts to victims of reported violent crime who suffer serious injuries, dependants of deceased victims and scholarships for bereaved children. Injuries are not confined to physical or fatal injuries, but may be a medically recognised psychiatric or psychological illness. The schemes are generally statutory and there is no question of benevolence or handouts by politicians. Victims receive these as of right.

Conclusion

The festering problem of Buxton and the massacre in Lusignan must surely wake up the country to the backward state of our laws and management of the country. The absence of local democracy is exacerbating an already fragile national democracy. There is no logical, fair and timely system of compensation for our farmers arising out of natural disasters; databases created one year are destroyed the next. In matters of policing and security, there is an increasing tendency by the state to delegate security to the citizens by way of community policing, while victims are often left to fend for themselves. The knee-jerk reaction to clear the backlands, its almost daily modification and amendment and a display of the most incompetent judgment as to who should evaluate and manage an agricultural compensation programme are as clear signs as we can get that those with the duty to protect our communities have little idea how to do so.

It is time that there was a Commission of Enquiry to look at the whole of the East Coast, including Buxton and Lusignan, and that this be as wide-ranging as possible. We can then have a thorough examination of the root causes of the problems we are facing, no doubt including pitiable pay to the police, local government and economic issues, and consider sensible ways to compensate communities. Since Lusignan, such rational questions have been pushed off the bus.