The Dominion - Bruce Wark

Clinton Apology to Haiti Surprises NS Activists

Moira Peters — Tue, 11 May 2010 05:21:18 +0000

Former US president calls dumping cheap rice "a mistake"

HALIFAX—Nova Scotia activists are expressing surprise that former US president Bill Clinton has apologized for flooding Haiti with cheap American rice beginning in the mid 1990s. During testimony before a US Senate committee last month, Clinton admitted that requiring Haiti to lower its tariffs on rice imports made it impossible for Haitian farmers to compete in their domestic economy. The trade policy forced farmers off land and undercut Haiti's ability to feed itself.

“It may have been good for some of my farmers in Arkansas, but it has not worked. It was a mistake,” Clinton—now a UN special envoy to Haiti—told the US Senate Foreign Relations Committee March 10. “I had to live everyday with the consequences of the loss of capacity to produce a rice crop in Haiti to feed those people because of what I did; nobody else.”

“I would like to believe that Clinton has had a change of heart,” wrote Heidi Verheul of the Halifax Peace Coalition in an e-mail. “But he actually needs to do something to challenge the free market shock doctrine economic policies that are being designed to further subjugate and impoverish Haiti,” she added. “The policies of aid and development in Haiti have continuously served to undermine democracy [and] local economies, and have driven tens of thousands of people from their land, enslaved them in sweatshops, makeshift homes, and absolute grinding, miserable poverty.”

Clinton’s apology attracted scant media attention in the US and none in Canada. It was included as part of an Associated Press news agency report that was published March 20 by the Washington Post. The AP report from Haiti’s earthquake-ravaged capital, Port au Prince, suggests world leaders are reconsidering trade and aid policies that make poor countries dependent on rich ones. It quotes UN aid official John Holmes as saying that poor countries, like Haiti, need to become more self-sufficient by rebuilding their own food production.

“A combination of food aid, but also cheap imports have...resulted in a lack of investment in Haitian farming, and that has to be reversed,” Holmes told AP. “That's a global phenomenon, but Haiti’s a prime example. I think this is where we should start."

The Clinton administration forced Jean Bertrand Aristide to agree to cut rice tariffs drastically when the US restored the Haitian president to power in October 1994. Aristide, Haiti’s first democratically elected president, had been overthrown by a US-backed military coup in 1991. In return for $770 million in international loans and aid, Aristide was required to agree to a business-friendly “structural adjustment” program that, aside from cutting food tariffs, also included freezing the minimum wage, cutting the size of the civil service, and privatizing public utilities. (Aristide annoyed the US by being slow to implement such policies, making Clinton’s apology last month all the more surprising.)

Janet Eaton, trade and environment campaigner for Sierra Club Canada, said members of the global democracy movement have long known about the failures of the globalized food system, and Clinton’s apology to Haitians only reinforced what many activists have talked and written about for years.

“When high-profile leaders admit that economic globalization isn’t working, then it’s time for governments to get on board and look at alternatives.” Eaton added. “It is time to admit that these failures exist and put an end to the aggressive free trade frenzy that is now occurring in Canada, the US and Europe as they vie for foreign markets, raw materials and unfettered free trade.”

Eaton pointed to one alternative in Nova Scotia—a Food Policy Council, which was formally established at a meeting in Truro on April 19. Farmers, consumers, academics, policy analysts and organizations were promoting food security for all Nova Scotians by focusing on ways to grow more of our own food. Eaton contended that growing more local food would help curtail climate change, reduce dependence on increasingly expensive fossil fuels and alleviate global poverty.

She added, “Haiti should be seen as a metaphor for what can happen on a planetary level if we fail to recognize the crisis we face.”

Bruce Wark is a freelance journalist based in Fall River, NS. This article was originally published by the Halifax Media Co-op.

clinton in haiti

Budgeting for an Alternative Nova Scotia

Moira Peters — Tue, 06 Apr 2010 09:14:02 +0000

Nova Scotia can afford to spend on education, transportation and health this year: CCPA

HALIFAX—A Nova Scotia think tank is urging the NDP government not to panic when it brings down its provincial budget this spring. The Canadian Centre for Policy Alternatives (CCPA) says there’s no need to boost sales taxes or slash spending to reduce the deficit.

“The danger is you’ll actually shrink the economy if you panic,” said Larry Haiven, a professor in the Department of Management at Saint Mary’s University. “We have to deal with the deficit, absolutely,” Haiven added, “but in a very tempered way.”

Haiven made his comments during a March 23 news conference in Halifax to announce the provisions of the CCPA’s 10th Nova Scotia Alternative Budget. The 52-page document contains a wide range of suggestions for strengthening social programs while, at the same time, reducing this year’s provincial deficit. The Alternative Budget calls for $443 million in tax hikes and $150 million more for social spending. The social spending increases include a reduction in university tuition fees, a new provincial crown corporation to provide inter-city bus service and gradual improvements in welfare rates.

Charlene Croft, chair of the Alternative Budget Working Group, noted that NDP finance minister Graham Steele has been holding consultations around the province where he has warned that his budget will be full of “tough decisions” to deal with a big structural deficit. “Our budget challenges the assumption that we are facing such a fiscal ‘crisis’ and it calls on the government to address the real crisis of the ballooning social deficit,” she said.

Tax increases

The Alternative Budget calls for $399 million in personal income tax increases that would affect the top 40 per cent of income earners with the largest increases paid by the top 10 per cent. The CCPA rejects any rise in sales taxes. Larry Haiven calls sales taxes “regressive because the poor pay more as a proportion of their incomes.” Haiven and his CCPA colleague Michael Bradfield, a retired Dalhousie economics professor, argue that Nova Scotians with the highest incomes benefited most from previous tax cuts, and should contribute more to provincial coffers now.

The Alternative Budget also suggests a $44 million reduction in provincial tax write-offs to businesses. The CCPA calculates that such corporate tax subsidies amount to about $110 million a year.

“In these difficult times, we have to tighten our belts,” said Haiven. “Well, corporations should, too.”

Tuition fee reductions

The Alternative Budget recommends that the province spend $18 million in the coming year to finance a $1,100 reduction in university tuition fees. It also recommends that $14 million be redirected from the Graduate Tax Credit—available to anyone living and working in Nova Scotia who recently graduated from a post-secondary program—into needs-based student grants, and that the grant portion of every provincial student loan increase from 20 to 50 per cent.

“In Nova Scotia, tuition fees more than tripled since 1989,” said Rebecca Rose, who represented the Canadian Federation of Students on the Alternative Budget Working Group. “Students in this province currently pay the second highest average tuition fees in the country, next to Ontario. We were, however, number one for 20 years, which resulted in the highest average student debt in Canada at just under $30,000.” Rose added that high levels of debt force many students to leave Nova Scotia after they graduate to seek higher-paying jobs elsewhere.

The Alternative Budget also calls on the provincial government to eliminate tuition fees for students attending the Nova Scotia Community College. That would cost an estimated $18 million a year.

“This measure would not only save the government money in other sectors of social services, such as income assistance and health care, but would also increase access and create a steady flow of educated workers who are not carrying large student debts,” said Rose.

New crown corporations

The Alternative Budget recommends the province create three new crown corporations:

1. Transit Nova Scotia—modeled on a provincial transit company in Saskatchewan—would provide subsidized bus services to link Nova Scotia rural communities and larger cities. The CCPA envisions about 20 bus routes at an annual cost of just over $10 million. The province’s yearly share would be up to $6 million. The CCPA estimates that the initial cost of setting up Transit Nova Scotia would be $20 million. The new crown corporation would also study the feasibility of high-speed provincial rail services that, according to the CCPA, would be less costly to operate and maintain than provincial highways.

2. An insurance corporation to provide public auto insurance. (Initial cost to establish: $15 million.)

3. A Workers Cooperative Corporation to assist worker-owned businesses. As the Alternative Budget explains: “In Nova Scotia today, they [co-ops] contribute one-sixth of the economic activity in the province, employ 7,000 people and provide 6,000 people with homes. Three hundred and eight thousand Nova Scotians are members of the province’s 402 co-op businesses. These businesses are often the only provider of services in a community—credit unions are the only financial institutions in 34 Nova Scotia communities...To re-build the Nova Scotian economy, we cannot rely on tactics used in the last 25 years—investing in call centres simply won’t work...Instead of trying to attract international corporations who don’t care about the communities they operate in, we should invest in our people and in jobs that we know will stay in the province. The best way to do this is invest in workers’ co-operatives.” (Initial cost to establish: $15 million in 2010 with an additional $10 million in investment capital in each subsequent year.)

Strengthening social programs

The Alternative Budget recommends a wide range of social spending including $12.2 million in additional support for welfare recipients; $20.6 million to promote and help establish new community health centres, $25 million to strengthen government pharmacare plans, $2.4 million to introduce a phased-in pre-primary learning and child care system at 19 existing sites, and $2.1 million to establish a provincially administered program for special needs students in elementary schools.

According to Larry Haiven, the province can afford to repair its social safety net damaged after years of budget cutbacks in the 1990s. Haiven showed a graph to demonstrate that the Nova Scotia economy grew by 63 per cent in the last 25 years and is 36 per cent more productive than it was a decade ago.

“We are a much richer province than we were 10 years ago and we shouldn’t forget that,” Haiven added.

Charlene Croft said that many argue now isn’t the time, when provincial revenues are falling in the midst of an economic recession, for the Nova Scotia government to undertake new social investments. She added, however, that opponents of social spending never want any increases.

“We’re always being told, 'Now isn’t the time to do any social investments,'" she said. "If now isn’t the time, then when is the time?”

Bruce Wark is a freelance journalist based in Fall River, Nova Scotia. An original version of this article was published by the Halifax Media Co-op.

Nova Scotia Tuition Fee Protest