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Article Artículo

Bill Keller's Center-Left Is the Reason We Are Growing Less Rapidly

Bill Keller gives us some holiday fun by getting almost everything completely wrong in contrasting the left-left (Elizabeth Warren and Bill de Blasio) with his friends, the center-left. There are so many profoundly ill-informed assertions that it might be hard to know where to begin if Keller didn't make it so easy. Keller tells readers:

"The center-left (I’m somewhat oversimplifying these categories) agrees on the menace of inequality, but places equal or greater emphasis on the fact that the economy is not growing the way it did for most of the last century. The sluggish growth means that not only are the poorest stuck at the bottom, but the broad middle is in economic decline."

The amazing part of the story is that Keller's center-left heroes are precisely the reason why the economy is not growing the way it did for most of the last century. Keller perhaps missed it, but it was the center-left that set the economy on a bubble driven growth path in the 1990s. The demand generated by the stock bubble was used to fill the hole created both by lower consumption spending due to the upward redistribution of income and the exploding trade deficit which resulted from Clinton's high dollar policy.

Keller's center-left friends also pushed financial deregulation so that their Wall Street friends could get ever richer at the expense of the rest of us. This deregulation facilitated the build-up of the housing bubble, the collapse of which gave us the current downturn from which we have still not recovered.

Given the origins of current weak growth in the policies of his center-left friends it is more than a bit bizarre that Keller would lecture the left-left about the need for stronger growth, as when he tells readers:

"The center-left — and that includes President Obama, most of the time — sees the problem and the solutions as more complicated."

Okay, that should be enough to get the gist of Keller's piece, now for some specifics. He outlines the left-left agenda:

Dean Baker / December 23, 2013

Article Artículo

Latin America and the Caribbean

Outrage Following Honduran Colonel‘s Attack against U.S. Human Rights Defender

Last week, Colonel German Alfaro, the commander of Operation Xatruch III in Honduras’ Aguan Valley, personally denounced Annie Bird, co-director of the U.S. and Canada-based human rights NGO Rights Action, on TV and radio, alleging among other things that she is engaging in “destabilization work” in the Aguan. The accusations, which were also covered in La Tribuna and Tiempo newspapers, came just after Bird accompanied campesinos in the Aguan to the Attorney General’s office to file human rights complaints, including some against Honduran soldiers. Alfaro also said he was opening an investigation into Bird’s activities.

In response, Human Rights Watch (HRW) issued a statement yesterday condemning Alfaro's accusations. This was followed by a statement today signed by representatives of 33 human rights, labor, faith-based and other organizations, including the AFL-CIO, Sisters of Mercy, and the Washington Office on Latin America calling on the State Department to denounce Alfaro's comments.

HRW's Americas Director Jose Miguel Vivanco also urged the U.S. government to condemn Alfaro's accusations:

Given its ongoing cooperation with Honduran security forces, the US government should use all the tools at its disposal to call a halt to verbal attacks on activists by senior Honduran military officials[.] Whether directed at human rights defenders or campesino leaders, such accusations only add to a climate of fear and intimidation.

Alfaro’s statements fit into an ongoing pattern of violence, intimidation and threats against human rights defenders in Honduras, both foreign and domestic, that has including the kidnapping by armed men of two European human rights defenders in July; threats and public accusations against American and Canadian human rights defenders and electoral observers ahead of and during the elections; and threats and public denunciations of Honduran human rights defenders like Bertha Oliva and Victor Fernandez.

CEPR / December 20, 2013

Article Artículo

USAID Takes Step Toward Greater Transparency, Reveals Low Levels of Local Procurement

In a positive step towards greater transparency of U.S. aid programs in Haiti and worldwide USAID has released new data on its use of local country systems. However, the content of the data itself also raises questions about USAID’s commitment to greater local procurement in Haiti and the speed at which the agency is achieving its goals.

In 2010, USAID launched USAID Forward, an ambitious reform agenda which called for increasing the use of “partner country systems” in order to strengthen local capacity and to raise the “percentage of total dollars through direct contracts with local private businesses.” In Haiti, however, previous CEPR research has shown that an extremely low percentage of funds have gone to local institutions since the earthquake: less than 1 percent out of the $1.3 billion obligated. Despite this, in September 2012, USAID Administrator Rajiv Shah told the Miami Herald that the goal is to have 30 percent of USAID funds going to local Haitian organizations by 2015.

The newly released data from USAID, though only covering the 2012 fiscal year, reveals just how far the agency still has to go to reach its goal. In 2012, USAID obligated nearly $210 million for programs in Haiti, but according to its own data, just 5.4 percent of this went directly through local country systems. This compares unfavorably with the rest of Latin America and the Caribbean, as well as with the rest of the world. Overall, USAID obligated just over 14 percent of its funds through local systems while the figure for Latin America and the Caribbean was 11.3 percent.

In his interview with the Miami Herald, Shah also stated that prior to the earthquake, less than 9 percent of USAID funds were going through local systems, but that “we’re over the pre-earthquake level now.” The data released by USAID seems to directly contradict this.

USAID has since lowered their goals for local procurement in Haiti. In October Beth Hogan of USAID testified during a Congressional hearing concerning U.S. foreign assistance to Haiti. In response to questions from Rep. Barbara Lee about why so little of USAID’s funds go to Haitian organizations, Hogan acknowledged that “It's much too low” but that USAID has “a target of getting to 15 percent. And even getting to 15 percent is going to be difficult because of the low capacity.” Hogan added that while “very little of our money goes directly… to Haitian institutions” USAID has “spent 50 million (dollars) through grants and subgrants and subcontracts to Haitian institutions.” Yet, there has been no systematic reporting of subcontracts and subgrants on the part of USAID. That may soon change.

Jake Johnston / December 20, 2013