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FM
Former Member

Politics and Guyana’s Underdevelopment – Part 3

 

 On March 6, 2013 @ 5:01 am In Daily,Features | 

 

Introduction

This series of columns focuses on the strategic interactions among four groups divided up along class and ethnic lines. There is within group class differences – the PPP connected East Indian elites (EIEs) and East Indian masses (EIMs). And there are African Guyanese elites (those associated with the PNC) and African Guyanese masses (AGMs). It was argued in the previous column of February 6, 2013 that the factor underpinning the persistent ethnic conflict is the desire to control economic resources and opportunities by both elite groups.

 

In order to claim control of economic resources, the East Indian elites of the PPP must mobilize the East Indian masses (EIMs) by making sure that they vote as an undivided group. One way the mobilization is accomplished is through the command of the state-owned media that excludes the African Guyanese elites (AGEs). It also takes the form of information propaganda and personal attacks against opposition individuals, particularly opposition personalities who are educated East Indians.


This strategy goes far back to the days of Mr Balram Singh Rai and relatively more recently Mr Ravi Dev who was cursed out brutally in front of his home by several key leaders of the PPP. Mr Freddie Kissoon faces continual attacks from the PPP, its proxies and apologists.

 

Only a few short weeks ago Mr Anand Goolsarran faced a serious series of personal attacks. He was never given an opportunity to respond in the taxpayers-owned Guyana Chronicle, which led the attack.

development watchThe PPP has never responded in a serious intellectual manner to the criticisms made by these East Indian personalities. This strategy of personality attack is really meant to send a signal to its masses that the party can debate and is correct in its position. It seems like the party made a calculation that it must shoot as much misinformation as possible so that some will stick. Will the EIMs continue to accept this insult to their intelligence indefinitely?

African Guyanese elites must have leverage when bargaining with the EIEs. They obtain this bargaining power or leverage by seeking to prevent AGMs from splitting their votes. The PNC that has evolved into APNU, it would seem, made the calculation that it will be only an African Guyanese mass party. In the previous election APNU virtually ignored campaigning in East Indian villages.

 

It appears like they concluded it is better to focus their limited financial resources in the areas where they are most likely to win their votes. While on the surface this strategy seems like a sound decision based on marginal benefits and costs, it is strategically flawed from a game-theoretic point of view. For starters, it sends the wrong signal to EIMs who might be tempted to vote for an independent third party.

 

The tenuous third party
While each group wants economic opportunities, each cannot be assured that it will receive those benefits. The ethnic and class divide and pernicious winner-take-all Forbes Burnham Constitution preclude every group from being a winner. Only one elite group can win. The bastardized Burnham Constitution gives the President significant powers to do what he wants, even to protect his Minister who allowed a Police Commissioner who allegedly “benefitted materially from the drugs trade” to serve.

Therefore, let us look at the four possible outcomes in order to investigate how economic underdevelopment will be the most likely state; moreover, we study why the AFC faces an existential threat. Let us start off by analysing voting options of EIMs and AGMs. EIMs have three strategies – they can vote PPP (their elites), vote PNC (the elites of AGMs) or vote for a multi-ethnic independent third party (say AFC). AGMs also have three strategies – they can vote for PNC (their own elites), vote for PPP (the elites of EIMs) or vote for the multi-ethnic party AFC.

 

History guides us to eliminate one strategy from each group. We have seen limited cross over votes where one group will vote for the other in large enough numbers to bring the government turnover I wrote about in the previous column. Therefore, we can eliminate the possibility where EIMs vote AGEs and AGMs vote EIEs as the probability of these events is very low. Elimination of these two strategies does not imply that there is no cross over votes. It just means historically it has not been significant. Let us now look at the four outcomes or possibilities.

 

Outcome 1: Sufficient EIMs vote for multi-ethnic AFC and sufficient AGMs also vote for multi-ethnic AFC. Here the AFC wins the largest percentage of votes and forms the government. Guyana gets its first post-Independence genuine multi-ethnic government. Since a true multi-ethnic mass party would more likely have across the board ethnic support, its resource allocations are more likely to be balanced, thus there is a greater likelihood of balanced development. Unfortunately this outcome will not occur that easily in a bi-communal society where elites stoke the fears of their respective ethnic group. Nevertheless, it is up to the multi-ethnic third party to anticipate and respond effectively to the strategies of the other parties.

 

Outcome 2:  Sufficient AGMs vote for PNC elites while sufficient EIMs vote for multi-ethnic AFC. Here the PNC could win the election and therefore social networks and intra-ethnic connections would result in more resource access for African Guyanese masses and AGEs. African Guyanese masses may be aware of this and therefore would be tempted to stick with APNU. East Indian masses are also responding strategically. Remember in strategic behaviour one group observes the other’s historical actions and subsequently internalizes this on the day of secret ballot.  Outcome 3: EIMs stays with the PPP, while AGEs vote for the third party (for now assume the votes from the fifth group – Indigenous and other Guyanese – are split evenly). In this case the PPP wins and the EIEs are again in control of opportunities and economic resources. We have opposition turnover but not government turnover. Relaxation of the assumption that the fifth group is split evenly presents the best opportunity for the third party. We will take this up in the next column.

 

Outcome 4:  In the final possibility, with the highest historical probability of occurrence, fear and prejudice take over. EIMs fall for the propaganda machinery and vote overwhelmingly for the East Indian elite party, PPP. AGMs decide to stick with APNU. At some level the non-collusive signals and strategies of the two masses reinforce each other as they march towards their own economic impoverishment (economists would call this sub-optimal outcome the Nash equilibrium). Here the EIEs benefit from the control of the State. Backed with their united but numerically disadvantaged votes, AGEs are left to bargaining with EIEs for some redistribution of resources.

 

The real losers in this pernicious equilibrium are the masses of African Guyanese and East Indians. In this situation, inequality along ethnicity and class lines is the natural outcome; hence underdevelopment is inescapable.  Moreover, outcome 4 gives birth to the elected oligarchs who rule by dividing up the economic resources and opportunities among the connected friends and families. Established social and cultural networks guarantee that those who are connected will enjoy a greater share of the redistribution schemes (see previous column).

 

Conclusion
When fear and uncertainty take over, on the day of secret ballot, EIMs vote for their elites while AGMs vote their elites. However, the elites are the winner in this arrangement, while the masses will experience limited income growth. AGMs are particularly disadvantaged in outcome 4, the sub-optimal equilibrium state. One other crucial result from outcome 4 is the very uncertain position in which the AFC finds itself. The party faces an existential threat at each election. It therefore must evolve effective strategies to increase its chance of survival.

 

The final column in this series will explain how we might be able to escape the equilibrium of underdevelopment.  Constitutional reform is always the best case scenario. However, in the absence of constitutional reforms we will examine some of the strategic choices that can help to increase the possibility of government turnover.

Politics and Guyana’s Underdevelopment – Part 4

Posted By TarronKhemraj On March 20, 2013 @ 5:01 am In Daily,Features | 

 

Introduction
This series of columns argue that Guyana will stay an underdeveloped country because the Constitution promotes competition for economic resources between the two main ethnic groups. In this competitive arrangement the East Indian elites associated with the PPP gain the greatest economic rewards. The media houses have reported several events where individuals connected to the PPP have expanded their economic stranglehold on the economy by gaining the rights for TV and radio, oil exploration, gold extraction, land ownership, hotel construction, broadband internet provision and government contracts. In return, the connected friends have in the past financed election campaigns and other events like a Presidential appreciation day.These individuals are now part of the Private Sector bodies, which ironically have remained quiet as state resources are used to compete against business owners not connected to the government.

Some of the resources expropriated from the people are redistributed to East Indian masses, African Guyanese masses and African Guyanese elites associated with the PNC in an effort to preserve the status quo. However, it is this very arrangement that guarantees unequal ethnic and class income growth; hence my argument that there cannot be economic development. For starters, projects like the Marriott and the airport terminal expansion will not propel the nation to a sustained growth path; instead they will add foreign currency debt without growth in incomes. With respect to the economic viability of the Marriott, Delta Airlines has already voted with its wings.

development watchHow do we escape from this terrible situation? There are possibly two options. First, electoral turnover in government under the present Constitution would allow for regular change in government. However, we noted in the previous column (March 6, 2013) that the very Constitution promotes a zero sum outcome. Therefore, African and East Indian masses are likely to vote strategically along ethnic lines on the day of voting because neither can be certain how the other will vote. Here we have the classic situation of what economists call a prisoner’s dilemma game in which there is always the worst outcome for the players involved. Nevertheless, this leaves the possibility for a third group of ethnicities to swing the election away from the PPP. However, there is still the risk that the Burnham Constitution would incentivize the new government to behave in an authoritarian manner.

Cooperation instead of Competition
The Constitution, therefore, has to be reformed significantly in order to change people’s perceptions, expectations and actions. If the present Burnham Constitution entrenches distrust and non-cooperation, then changing it to one that promotes cooperation is necessary. In other words, if non-cooperation gives us the bad outcome of uneven development, then cooperation in the same prisoner’s dilemma setup could result in the outcome of a more balanced development where all have equal access to opportunities, at least under the law and in the practice of the government.

 

It is for this reason I am not in agreement with the argument that because of the present fiasco in Parliament the politicians of this country can never work together. This argument does not take into consideration that a new constitution could be crafted to incentivize politicians to work together. Take for example the present situation in Parliament and at the Executive branch. The people have spoken against the PPP, which lost the majority in the last election. The opposition has expressed its distrust for Minister Rohee and has also voted against the exorbitant pension for former President Jagdeo.

 

However, President Ramotar is armed with the bastardized Burnham Constitution that avails him the power not to cooperate with the opposition. As a matter of fact, the President has little incentive for changing, except of course if polls continue to guide the PPP that the 51% is gone for the foreseeable future. In addition, Mr Ramotar cannot be impeached. In spite of the fact that he is coming from the base of 48.4% of the votes, he intends to use the Burnham Constitution to stonewall the opposition on both issues. To make matters worse, the PPP has decided it will play politics by allowing Mr Rohee to go to Parliament to promote superficial police reform, when he has refused to do so for many years. Moreover, the PPP has enormous economic incentives to maintain power at all cost in spite of not having the credibility of 51% of the votes.

It appears Freedom House made the calculation to allow Mr Rohee to promote watered-down security measures and police reforms that the opposition is likely to vote against. Voting down any security measure implies the opposition, specifically the AFC, is setting itself up to be blamed for crimes by the awesome propaganda machinery of the PPP, which extends to the Guyana Times and VCT. No doubt Freedom House has elections in sight. However, the demographics are changing and it is unlikely to win a 51% margin again. The point is the PPP prefers to compete to win everything for itself instead of pursuing cooperation.

 

Chinese Immigrants
As part of the strategy of non-cooperation, Mr Rohee recently resurrected the old bogeyman by blaming the opposition for several robberies committed against Chinese immigrants. This strategy has been used over the years by PPP party shills who often in secret or at bottom house meetings blame the PNC for crimes committed against East Indians. To this day not a single person from the PNC has ever been prosecuted or jailed. It is an insult to people’s intelligence for claiming the opposition is responsible for crimes and at the same time fail to bring anyone to justice.

It is an old tactic that is used to project fear in order to preserve the ethnic East Indian vote bank. I hope the Chinese government is taking note of this situation. Either Mr Rohee arrests these individuals in the opposition or he needs to apologize. Of course, I will not hold my breath. Perhaps one reason for the PPP to take this road is it has plans to register Chinese immigrants for the next election. This registration would be a welcome development since it is important to allow new immigrant groups to settle in Guyana.

 

The Chinese government, however, should warn the PPP that it must provide an immigration policy framework. Moreover, China’s own economic development model focused in the early stages on bringing in multinationals to employ poor workers and boost manufacturing. Like South Korea and other South East Asian economies, the Chinese model requires domestic content requirements. Therefore, the opposition did nothing wrong to demand that Guyanese workers also be employed in projects funded by loans from the Chinese government, and which will have to be repaid by all taxpayers. The Chinese government should make sure its people are not used as a pawn in the old ethnic struggle between East Indian and African Guyanese masses. The new hard working immigrants should not be used as a means for maintaining PPP East Indian elite hegemony.

 

Conclusion
This series of columns argued that the Burnham Constitution will guarantee unequal income growth and inequality along class and ethnic lines. Deep Constitutional reforms are needed to incentivize political leaders to cooperate. They will be incentivised to cooperate when those who lost the election understand that they still have the power to effect positive change. And those who win the election know that they are not under ulterior threats. Many Guyanese over the years have proposed various models for reform. Mr Ralph Ramkarran recently outlined several sensible benchmark reform steps, which are close to my own views of reforms that are needed. The AFC and PNC have publicly stated they would like to move in the direction of reform. The PPP should know it has more to gain from constitutional reform than to lose.

FM

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