The gated community motto: Come and live in a lie while ignoring life!

The papers, books and studies related to the urban development of gated communities in the Global South have provided lots of information by problematizing the history and politics behind the imaginary of these projects. Urban developers all over Latin America, Africa and Asia are building hundreds of communities and apartment buildings that imitate European and Western Styles of construction, lifestyle, norms and regulations. This morning I got my hands in one more of these advertisements for a housing project located in a recently developed dormitory city near Guatemala City, Guatemala.

The community is called “Residenciales Pasaje Español” and the development aims at replicating the lifestyle of a Spaniard ideal of a community  (while, of course, ignoring reality about Spain’s complexities).  The advertisements are all directed at the appeals of the growing middle-class market in Guatemala which is backed by a search for: affordable housing, accesible parks, gated walls around the housing project, 24/7 private police service, white houses that offer access to parking spaces for family-sized cars.  All of this providing a “theme-park” feeling that enables you to transport yourself from the violent and insecure life outside of the gates.

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Guatemala City and the dormitory cities around it are inhabited by aprox. 3.5 million people with more than 1 million cars and the figures are quickly rising. Many of the gated communities are 1 or 1.5 hours away from most of the office and industrial areas and traffic jam is a constant worry for this people. Alienated from crime and lack of rule of law, these gated-communities offer an escape from public worries to taxpayers and an excuse to ignore the country’s multiple problems.

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But as any other theme-park there are many flaws and dangers in the aim to replicate the “ideal society”.  The complex is located straight next to a line of huge power towers that represent a health menace to the people that will live in the houses. Also, the gated-community is surrounded by hundreds of new houses and dozens of new gated-communities that once completed and sold will represent an increase in the traffic jam outside of the “housing dream”.

Perhaps it is still time to Rethink the future of our cities. We still have time to further problematize our development model and think about the contradictions behind these city-building dystopias. And bring to light more information regarding how these gated-communities further weaken collaboration, cooperation and citizenship in our societies…

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Piketty’s “Capital,” and the Rest of the World

Video: Thomas Piketty Discusses, “Capital In The 21st Century” with Ryan Grim and Alexis Goldstein

The book by the French economist Thomas Piketty’s Capital in the Twenty-First Century has already become part of everyday discussions and is being referenced among academics. The research by Piketty has come in the perfect time and there are plenty of reasons why. Piketty’s book discussion brings some light to the study of income quintiles and deciles into a new debate of the “the skyrocketing incomes of the 1% — and the mind-boggling gains of the 0.1% and 0.01%  — by gathering and publishing income tax data that nobody had bothered with before. Piketty was behind similar projects in France, Britain, Japan, and other countries.” (via Justin Fox at the Harvard Business Review)

I finished reading the book this weekend and it was eye-opening. The book presents great challenges to the study of capital and inequalities in the developed economies as well as in the rest of the world. The book also opens the doors for a wider discussion on the effects European Capital has had in the global economy. Further, the book invites globalists to challenge our understanding of European-centric terms that over longer periods of time become, perhaps, insufficient to comprehend global economic processes over the passing of centuries and how these processes have changed and transformed themselves by a complex evolution and redefinition.

It can’t be denied that capital during all of the 19th Century and in the beginning of the 20th Century was centered in the main European metropolises and extracted most of the goods from the periphery. Few Capital remained in colonies and protectorates. Wealth belonged to the Empires and Poverty remained in colonial territories. Even the poorest of the European was considered Rich by comparison to the inhabitants of Colonies.

Today, European Empires are gone for a while, U.S. Capital increased and gained from the fall of the European Empires and new economies started developing in former Colonies. Giant Economies like China and Russia woke up after decades of isolation from global trade and today reconfigured our understanding of Capital. Piketty’s book somehow fails to explore this Global political changes and its economic effects.

Piketty’s central argument has a gigantic weakness since it is tied to nation-states and cannot be compared or understood in reference to Global Capital flows in today’s multinational economy. Very few references are made to the role played by Multinational Companies and foreign national investments and savings by State Companies in the world.  And less is mentioned of global inequalities and the North-South divide that has been increased by the investments done by Developed and Developing Economies in the rest of the world.  Piketty argues that Capital has tended over time to grow faster than the overall economy (he focuses on European and US economies); and that income from capital is invariably much less evenly distributed than labor income (again he focuses on European and US economies). Thus failing to acknowledge how Labor income stopped been localized during the 20th Century and it involved multiple polities far away from the metropolis.  Piketty argues that together (Capital growth and its uneven distribution) amount to a powerful force for increasing inequality.

Piketty doesn’t take things as far as Marx and this is a pitty. Marx’s methodology involved the State but it also referenced to its effects both and from the peripheries through the pass of longer periods of time. This is one of the most important contributions of Marx: his global understand of the economy.

Piketty shows how over the two-plus centuries for which good records exist, the only major decline in capital’s economic share and in economic inequality was the result of World Wars I and II, which destroyed lots of capital and brought much higher taxes in the U.S. and Europe. However, he again fails to acknowledge how Capital grew in the Global South after these wars as a result of increased inequalities in the Colonies and Agriculture-centered States in South America and Asia. During the wars Capital destruction was followed by a spectacular run of economic growth that involved the entire globe and not only Europe and the U.S.  The Cold War is a good reference for finding how Capital flows went from Europe to Asia, America and Africa.  As well, the run of economic growth started involving non-State actors in which Capital continue increasing at a higher and faster rate than the one he references and studies. Failing to study this shows in Piketty’s book that after decades of peace, slowing growth, and declining tax rates, capital and inequality are on the rise all over the developed world only, and it’s not clear what if anything will alter that trajectory in the decades to come.  However, the declining tax rates, capital and inequality are on the rise at a faster pace in the developing economies and in the “puppet states” (Nigeria, Chile, the Middle East countries) which have emerged around them as sources of petrol, minerals and rare earths.

Piketty’s main worry as points out Justin Fox is that “growing wealth in Europe will bring a return to 19th century circumstances in which most affluent people get that way through inheritance.” Plus, “U.S. median income will continue lossing ground relative to other nations in the following years”. But this are not the only worries that we should identify.  The BRICS countries are probably a good source of comparison to see how the growing wealth of the 20th Century remains on the hands of the few rich and is currently been passed through inheritance. Further, developing economies in South America and Africa are an extreme case of the last.

Piketty’s solution to Europe’s and U.S. problems is that a progressive global wealth tax be established. But this tax will fail to be the best response to the current dynamics of inequality if Capital continues flowing outside of Europe into multinational capital investments overseas and into State companies overseas. 

I enjoyed this political economy analysis and will continue learning a lot from it. Piketty’s solution is a challenge for the study of global political economy and the reconfiguration of the global economy in the 21st Century. Perhaps if a new book is published studying the shareholders who own the most stock in almost every Fortune 500 company and the Capital of any major global company instead of only the economies of France, Germany or the United States more accurate insights will be found.

 

Global Education trends

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In the last few years I have found myself immersed traveling around different cultures.  A trend I have observed is that the more educated people has been, the more they are healthy and the more they are cooperative towards the rest.  Following Malow’s hierarchy of needs one can easily understand why is it that education is so important to help establishing a better society.  My favourite philosophers agree that in order for a human to act rationally he/she needs to know clearly which is his/her code of values and their aim in life.

Today’s reality whoever is discouraging to many in regard to the Global Educational trends.  The divergence between the Global North and South in terms of educational development is increasing:

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Why is it that development has continued growing uneven in these regions is the field of study of global studies and it requires a long discussion.  One thing is certain: in order for ignorance to be cured there is only one medicine: cheap or free good access to all knowledge.  For this reason I support strongly projects like Google Books and many others in local areas.  I contribute to this global project by donating printed books and providing access to an online ebook collection of Humanities. Now, how are you contributing to this project?

Entendiendo el racismo en Guatemala ¿Qué opinas?

Hace algunas semanas estaba leyendo un cuadernillo de investigación de la USAC titulado “El Terrateniente guatemalteco: una aproximación a su concepción ecológica y a los efectos de su práctica productiva sobre el medio ambiente” y me parece prudente mencionarlo ahora que la gente ha empezado a hablar en demasía con términos abstractos como “guatemala” “guatemaltecos” “nosotros” “ellos” y a veces abusan de los términos vacíos con los que pretenden hacer representaciones de unidad. Continue reading “Entendiendo el racismo en Guatemala ¿Qué opinas?”

Chavez is dead

“God is dead. God remains dead. And we have killed him. Yet his shadow still looms. How shall we comfort ourselves, the murderers of all murderers? What was holiest and mightiest of all that the world has yet owned has bled to death under our knives: who will wipe this blood off us? What water is there for us to clean ourselves? What festivals of atonement, what sacred games shall we have to invent? Is not the greatness of this deed too great for us? Must we ourselves not become gods simply to appear worthy of it?”
—Nietzsche, The Gay Science, Section 125, tr. Walter Kaufmann

 

Overcoming the goods and bads of Mr. Chavez will not be any easy.  Eliminating redistribution of wealth programs will be almost impossible and the surrender of greater virtues like rationality, honesty, integrity, productivity and justice will be most surely sacrificed by the ruling leader for the sake of his reelection.  Even now that Mr. Chavez died, the Venezuelan Welfare State supports millions of its voters.  Just last year,  Venezuela added more than 800,000 people to the rolls of the state welfare system and  the number of pensioners reaches nearly 2.5 million, an increase of over 600 percent since 1999 in total pensions paid by the state, all of which are indexed to the national minimum wage (via venezuelanalysis.com).  Though he died, his party continues living and his ideas will continue been fostered in the form of more programs in the Venezuelan welfare state.  For this and many more reasons I say: Chavez is dead.

In a global scale the death of former President of Venezuela, Hugo Chávez Frías, will be very limited but noticeable for countries like China and Russia who benefited after Mr. Chavez expelled Western oil companies operating in the country and replaced them with Chinese and Russian state owned companies.  This oil companies were the most important strongholds of this two powerful countries in Latin America.

In a regional perspective the disappearance of this controversial figure will have important effects in Latin America as well.  Specially, around the league of the group ALBA (Spanish Acronyms for the Bolivarian Alliance for the Americas) in which he played an important role as its founder and main speaker against the North American interventionist policy.  Without Mr. Chavez the possibility of a halt of the oil donations to the member countries of this alliance could have an important significance as well. Venezuela donated millions of barrels of oil to needy Caribbean states, particularly Cuba, but also countries like Trinidad and Tobago and this countries in exchange commissioned their doctors to help in the most needed areas of Venezuela.  This symbolic gesture has been a constant diplomatic activity of the poor Caribbean states.

Also, Nicaragua benefited from Mr. Chavez anti-American policy.  The government of the former guerrilla leader Daniel Ortega and his party’s politburo have been recipient of more than $2.2 billion in Venezuelan petrodollars since 2007.  To them, the election of a member of the Chavez regime is fundamental to continue holding control of elections in the next term.  Further, the Pulitzer Center reports that “Since Ortega returned to power democratically in 2007, the wellspring of aid from ALBA — a bloc of eight left-leaning Latin American countries underwritten by Chavez — has provided the Sandinista government with an average of $500 million a year in loans, donations and oil credit. In 2011, Ortega’s ALBA allowance jumped to $609 million during his own re-election campaign.”  Showing how Venezuelan interventionism in the region was in occasions more powerful than the interventions of the United States of America that are historically hated and protested by leftists demagogues.

Venezuela has been officially (though in contravention to its Constitution) under the rule of the Vicepresident Nicolás Maduro since the death of Mr. Chavez.  He is now the interim President of Venezuelafollowing the death of Hugo Chávez.  Mr. Maduro will most probably run for the elections with very high chances of winning.  Before dying, Hugo Chavez ran for reelection in 2012 and got the vote of 55% of the voters.  His approval ratings among the poorest of the voters is very high and his main opponent, Henrique Capriles Radonski, will have it very difficult to win.  More important to note is the fact that Mr. Capriles is mentioned as being part of the Centre-Right of the country.  However, if elected his main policies may end up been very similar to the ones that gave popularity to Mr. Chavez.  He may thus be a centre-right from hand-to-mouth and a centre-left activist in practice.

Mr. Chavez ruled the country since February 2 1999 until 5 March 2013.  During his 14 years in power he reformed to his convenience the Venezuelan Constitution several times, created dozens of agencies formed by members of his party, formed hundreds of thousands of state-owned cooperatives, fuelled billions of dollars in his stated goal to lower inequality in the access to basic nutrition, and to achieve food sovereignty for Venezuela.  Further, he placed Venezuela at the centre of the regional foreign policy with states in Africa, Asia and Europe.

February 26: The day the Communist Manifesto was published

These are some of the most used words in The Communist Manifesto
“WordCloud” of some of the most used terms in The Communist Manifesto

26 February, 1848: Karl Marx and Friedrich Engels publish the COMMUNIST MANIFESTO, a political theory that has become one of the modern world’s most influential documents and a source of inspiration for most of our political leaders.

The Communist Manifesto changed the face of the twentieth century beyond recognition, inspiring millions to revolution became an ideological source for millions of deaths (at least 94 million people according to Werth et al. Margolin‘s The Black Book of Communism).  This book has become the basis of political systems that dominate countless lives and continues to ignite violent debate about class and mixed systems of economic and political government today.

If you have never read this book (as most of its advocates have surely not done so) I encourage you to read it and study it attentively.

communist manifesto karl marx book cover

In countries where modern civilisation has become fully developed, a new class of petty bourgeois has been formed, fluctuating between proletariat and bourgeoisie, and ever renewing itself as a supplementary part of bourgeois society. The individual members of this class, however, are being constantly hurled down into the proletariat by the action of competition, and, as modern industry develops, they even see the moment approaching when they will completely disappear as an independent section of modern society, to be replaced …” Manifesto

Table of Online Contents for the Communist Manifesto:

Preamble
I:   Bourgeois and Proletarians
II: Proletarians and Communists
III: Socialist and Communist Literature
IV: Position of the Communists in Relation to the Various Existing Opposition Parties

Other Free Versions for Download: AudioWordepubprcPDF, Kindle.

The Economic Impact of a War Between Japan & China

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“The United States believes that the establishment of diplomatic relations with the People’s Republic will contribute to the welfare of the American people, to the stability of Asia where the United States has major security and economic interest, and to the peace of the entire world.”

President Jimmy Carter
The American Presidency Project. December 15, 1978

 

Unfortunately, this is not a conspiracy theory.  2013 is a decisive year to deter the escalation of a war between Japan & the People’s Republic of China.  Who can stop it? According to this impressive video, the United States of America has a decisive role to play in this global arena.

A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.

The team at One Minute MBA explains that

“The conflict between China and Japan has put the United States in a precarious position: if a full-scale war were to erupt, the U.S. would be forced to choose between a long-time ally (Japan) and its largest economic lender (China). Last year, China’s holdings in U.S. securities reached $1.73 trillion and goods exported from the U.S. to China exceeded $100 billion. The two countries also share strong economic ties due to the large number of American companies that outsource jobs to China.

However, the U.S. government may be legally obligated to defend Japan. In November, the U.S. Senate added an amendment to the National Defense Authorization Act that officially recognizes Japan’s claims to the disputed islands; the U.S. and Japan are also committed to a mutual defense treaty that requires either country to step in and defend the other when international disputes occur. Not honoring this treaty could very easily tarnish America’s diplomatic image.

The countries of the Asia-Pacific region are collectively responsible for 55 percent of the global GDP and 44 percent of the world’s trade. A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.”

To read the entire video transcript please visit this link.