Saturday, December 20, 2014

Why Cuba move will help America

(CNN) -- In opposing President Barack Obama's opening to Cuba, Florida's Republican senator, Marco Rubio, explained, "This entire policy shift announced today is based on an illusion, on a lie, the lie and the illusion that more commerce and access to money and goods will translate to political freedom for the Cuban people." Rubio has correctly touched on the core issue. But theory, logic and history suggest that he's wrong in his conclusions.
I would recommend to Rubio one of the classics of conservative thought, Milton Friedman's "Capitalism and Freedom." He doesn't have to spend too much time on it. The first chapter outlines the "relation between economic freedom and political freedom."
The point Friedman makes in the book is one that America's founding fathers well understood. Drawing on the political philosopher John Locke, they believed that the freedom to buy, sell, own and trade were core elements of human freedom and individual autonomy. As they expand, liberty expands.
fareed zakaria in studio
fareed zakaria in studio
Behind the Cuba policy deal Obama discusses Cuba relations Many Cubans welcome closer ties with U.S.
This is not just theory, of course. Over the last two centuries, the countries that embraced "more commerce and access to money and goods" in Rubio's phrase -- Britain, America, then Western Europe and East Asia -- have moved toward greater prosperity, but also political freedom. If you exclude oil-rich countries, where money is not earned but dug from the ground, almost every country that has used free markets and free trade to grow is also a democracy.
Yes there are a few exceptions: Singapore and China (though the latter is still not quite a developed economy.) But on the whole, there has been a remarkably strong connection between economic freedom and political freedom.
In Latin America itself, the line has been clear. Augusto Pinochet's regime opened up its economy in the 1970s. Chile began to grow, but that growth then produced a stronger civil society that over time clamored for the end of the Pinochet dictatorship. (The same pattern could be seen in Taiwan, South Korea, Spain and Portugal.) In Latin America today, democracy and markets have acted to reinforce each other, transforming the continent, which 30 years ago was almost entirely ruled by dictatorships to one that is today almost entirely ruled by democracies.
Cuba is an outlier, one of the last regimes in Latin America that has embraced neither markets nor ballots. The Obama administration is acting on the theory that more commerce, capitalism, contact, travel and trade will empower the people of Cuba and thus give them a greater voice in their political future. And so the first point to make is that it will help Cubans economically -- it will raise their incomes, their standard of living, and boost access to technology. These are all good things in and of themselves.

But easing the embargo will also help Americans, who will benefit from being able to trade with a neighbor. This is the reason that conservatives have long understood that free trade is not a gift bestowed on someone. It helps both countries and in particular, helps the United States.
That's why the Wall Street Journal's editorial page -- bastion of conservative thought -- has been an advocate on lifting the trade embargo against Cuba, which is a far larger step than Obama's normalization.
So, did it support Obama's opening? Of course not. It turns out that he has done it in the wrong way. It is difficult not to think that the problem here is not the policy, but who the president is. Had George W. Bush announced this initiative, I have a feeling that the Wall Street Journal would be hailing it -- and Rubio would be quoting Milton Friedman to us all.

Source: http://edition.cnn.com

Friday, December 19, 2014

Pakistani military kills over 60 militants after school massacre

PAKISTANI jets and ground forces have killed 67 militants in a north-western tribal region near the Afghan border, officials say, days after Taliban fighters killed 148 people most of them children in a school massacre.

Meanwhile, a Pakistani prosecutor said the government will try to cancel the bail granted to the main suspect in the 2008 Mumbai terror attacks a decision that outraged neighbouring India and called into question Pakistan’s commitment to fighting militancy.
The violence at a school in Pakistan’s northwest earlier this week stunned the country and brought cries for retribution. In the wake of the mass killing the military has struck targets in the Khyber tribal region and approved the death penalty for six convicted terrorists.

PAKISTAN MOURNS AFTER SCHOOL MASSACRE

The military said its ground forces late on Thursday killed 10 militants while jets killed another 17, including an Uzbek commander. Another 32 alleged terrorists were killed by security forces in an ambush in Tirah valley in Khyber on Friday as they headed toward the Afghan border, the military said.


Khyber agency is one of two main areas in the northwest where the military has been trying to root out militants in recent months. Khyber borders Peshawar, where the school massacre happened, and militants have traditionally attacked the city before fleeing into the tribal region where police can’t chase them.
The other area is North Waziristan, where the military launched a massive operation in June.
In the southern province of Baluchistan, Pakistani security forces killed a senior Pakistani Taliban leader along with seven of his associates in three separate pre-dawn raids, said a tribal police officer, Ali Ahmed.


Army chief Gen. Raheel Sharif late on Thursday signed death warrants of six “hard core terrorists” convicted and sentenced to death by military courts, the army said.
It was unclear when the military planned to hang the six men, but authorities generally move quickly once death warrants are signed. Such executions are usually carried out at prisons under the supervision of army officers and then the bodies are handed over to relatives for burial.
There was no information on the men or the crimes for which they were convicted.

The news comes after Prime Minister Nawaz Sharif on Wednesday announced that he would lift a moratorium on executions in terrorism-related cases. The government has not yet carried out any executions.
The lifting of the moratorium was aimed at demonstrating the government’s resolve. But the decision by an anti-terrorism court Thursday to grant bail to the main suspect in the Mumbai attack, Zaki-ur-Rahman Lakhvi, called into question that commitment.

Lakhvi is one of seven people on trial in Pakistan for the assault, but the trial has produced no results so far. It has been closed to the media.
India reacted with outrage to news of Lakhvi’s pending release.
Special public prosecutor Abu Zar Peerzada said he would appeal to the High Court to cancel the bail and said Lakhvi had not yet been released.



Monday, December 8, 2014

Leading Venezuelan opposition figure charged over alleged plot to kill president

Maria Corina Machado told she will face criminal charges for her alleged involvement in a supposed plot to kill Nicolas Maduro.



A leading figure in the Venezuelan opposition has been told she will face criminal charges for alleged involvement in a purported plot to kill President Nicolas Maduro, a move she called an attempt to silence her and other critics of Venezuela’s government.

Maria Corina Machado, a former member of the National Assembly, left a private meeting with prosecutors at the Ministry of Justice after authorities informed her that she would be charged with conspiracy. The charge carries a maximum of 16 years in prison.

Her case will now be assigned to a judge so Machado can be formally charged.

“All the accusations and the supposed evidence are false,” she told reporters outside the ministry.

Machado has repeatedly said she has no knowledge of any plot against Maduro and portrays the allegations as political persecution.

“I have not committed any crime,” she said before the meeting with prosecutors. “This is the price I have to pay for speaking the truth in Venezuela.”

The attorney general’s office opened its investigation in March after officials claimed a plot was being formed against Maduro and others in the government involving Machado and several other opposition figures. Authorities have not provided any evidence publicly beyond some allegedly incriminating emails. The government has prohibited Machado from leaving the country since June.

Tomas Arias, one of her lead attorneys, said the defense had asked for more specific proof of any link between Machado and what he called the “supposed plot” against the president. Authorities have provided nothing in response, he said.

Prosecutors have issued arrest orders for several other opposition figures for their alleged roles in the supposed plot, several of whom have left Venezuela.

Since narrowly winning election last year to succeed his mentor, the late President Hugo Chavez, Maduro has claimed there have been five assassination attempts against him and more than a dozen acts of sabotage and conspiracy.

The investigation of Machado comes as oil-dependent Venezuela comes under increasing financial strain because of plunging world oil prices, forcing the government to cut spending amid widespread shortages and the world’s highest inflation.

Source: Associated Press in Caracas
theguardian.com, Wednesday 3 December 2014 22.50 GMT

Saturday, March 22, 2014

Venezuela's food shortage by the end of February at 47.7%

State-owned food corporation and oil company Mercal and Pdvsa face shortage at 50%, research firm Datanálisis informed



EL UNIVERSAL

Monday March 17, 2014  10:47 AM

General food shortage in Venezuela has consistently exacerbated for 16 months. Shortage in regulated goods averaged 37.2% in 2013, up 21.3 percentage points with respect to 2012 figures.

In January-February 2014, shortage in regulated products hit 47.7%, rising 31.8 points as against 2012, and 10.5 points compared to 2013, according to Mystery Shopping, a research conducted by Datanálisis in seven distribution routes.

In 2011-2012, none of the categories went through more than 50% of shortage, whereas this year 33% of the goods face more than 70% of shortage.

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Prices up in gov't food network to prevent smuggling

Venezuelan Minister of Food Félix Osorio thinks that keeping prices without any variation is "vulgar"


ANGIE CONTRERAS C. |  EL UNIVERSAL
Thursday March 20, 2014  09:52 AM
Prices of the foodstuffs sold through Mercal, a network of food vendors under the aegis of the Venezuelan government, have risen "step by step" in the last year, with no formal announcement from the Executive Office.

As alleged by Food Minister Félix Osorio, rising prices has been a measure to curb outgoing smuggling of subsidized commodities.

The last "formal" hike of prices in the foodstuffs traded through Mercal network occurred in 2009.

In the minister opinion, keeping prices without any variation is "vulgar."

Osorio downplayed the claims of production problems in Venezuela and attributed imports to a larger demand.

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Venezuela's Sicad 2 insufficient to meet public sector demand

JP Morgan does not rule out an adjustment in the forex rate of the National Center for Foreign Trade from VEB 6.30 to VEB 8.40 per US dollar


MAYELA ARMAS H. |  EL UNIVERSAL
Thursday March 20, 2014  10:02 AM
The Venezuelan Government started the New Year with a deficit in its fiscal accounts, which has led to a revision to the foreign exchange policy, including the incorporation of the Second Ancillary Foreign Currency System (Sicad 2), whose forex rate is set to fluctuate. Nonetheless, the effects of the new architecture would not satisfy demand if authorities fail to cut down on public spending.

Although authorities have not explained how much foreign currency supply would rise with the new supplementary mechanism, income would not be enough to meet the needs of public institutions.

The director of research economic firm Ecoanalítica, Asdrúbal Oliveros, has outlined that "although income deriving from Sicad 2 operations could be useful, a policy aimed at reducing public expenditure and a reform of the country monetary policy are needed."

In his view, Oliveros asserts that the impact of devaluation on the supplementary forex system is subject to other actions. Unless measures are adopted, the system would fail.

Meanwhile, JP Morgan deems Sicad 2 could gradually flow. The firm estimates oil giant Pdvsa would allocate USD 5-10 billion out of its oil revenues. Moreover, JP Morgan projects bonds stock held by public institutions would account for USD 5.8 billion.

In a report the firm also expresses the need for further policies. In this context, it does not rule out an adjustment in the forex rate of the National Center for Foreign Trade, from VEB 6.30 to VEB 8.40 per US dollar.