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Vol. XI, No. 3 Three Dollars The Springtime of Elections; Whatever Happened to Cancan; Why Latin America Is Poor; Absorbing the Caribbean Labor Surplus; Interviews of Michael Manley and "Comandante Cero." Certificate In Latin American- Caribbean Studies * Over 55 Latin American and Caribbean related courses in the University. * Certificate requirements include: successful completion of five Latin American and/or Caribbean related courses and one independent study/research project, from at least three departments; demonstration of related language proficiency in Spanish, Portuguese, or French. * Certificate program is open to both degree and non-degree seeking students. * Expanded University support as a Title VI Undergraduate Language and Area Center. * Expanded Library holdings in Latin American-Caribbean materials. * Special seminar series offered by distinguished visiting scholars in Latin American and Caribbean Studies. For further information contact: Latin American-Caribbean Center Florida International University 'Imiami Trail Miami, Florida 33199 Latin American-Caribbean Studies Faculty Irma Alonso, Economics Ewart Archer, International Relations Ken I. Boodhoo, International Relations Manuel Carvajal, Economics John Corbett, Public Administration Grenville Draper, Physical Sciences Luis Escovar, Psychology Robert Farrell, Education Gordon Finley, Psychology John Jensen, Modern Languages David Jeuda, Modem Languages Charles Lacombe, Anthropology Barry B. Levine, Sociology Anthony P Maingot, Sociology James A. Mau, Sociology Floretin Maurrasse, Physical Sciences Ramon Mendoza, Moder Languages Raul Moncarz, Economics Marta Ortiz, Marketing Mark B. Rosenberg, Political Science Reinaldo Sanchez, Moder Languages Luis P Salas, Criminal Justice Jorge Salazar, Economics Alex Stepick, Anthropology Mark D. Szuchman, History William T. Vickers, Anthropology Maida Watson Breslin, Moder Languages Miami Speaker's Bureau On Latin America and the Caribbean The Latin American and Caribbean Center of Florida International University hosts a Speaker's Bureau for scholars traveling through Miami. The Bureau serves as a means for area specialists to share their experiences and research during colloquia. A modest honorarium and per diem expenses will be provided. Scholars anticipating travel through Miami and interested in participating in the colloquia should contact Mark B. Rosenberg, Director, Latin American and Caribbean Center, FIU, Miami, FL 33199 at least 30 days prior to the anticipated departure from their home cities. Occasional Papers The Center also publishes both an Occasional Papers Series as well as a series of Dialogues given by guest speakers on the campus of FIU. Please write for details. In this issue The Springtime of Elections The Status of Democracy in the Caribbean By Don Bohning, Juan Tamayo, and Bernard Diederich Two Hundred Islands of Soledad International Law and the South Atlantic By Farrokh Jhabvala Chagito, The Dreamer A Puerto Rican Short Story By MiguelIngelo Rodriguez Whatever Happened to Cancun? The 600 Billion Dollar Question By Pamela Falk Why Latin America Is Poor Cultural Factors in Latin Poverty By Michael Novak Absorbing the Caribbean Labor Surplus The Need for an Indigenous Engine of Growth By Ransford Palmer Interviewing Michael Manley The Role of the Opposition in Jamaica By Janis Johnson and Robert A. Rankin Interviewing Eden Pastora "Comandante Cero" By Beatriz Parga de Bay6n The Legacy of Dictatorship: Nicaragua The Fall of Somoza Reviewed by Carlos M. Vilas Haitian Neo-Slavery in Santo Domingo Bitter Sugar Reviewed by Paul R. Latortue In Light's Dominion The Art of Rafael Soriano By Ricardo Pau Llosa Recent Books An Informative Listing on the Caribbean, Latin America and Their Emigrant Groups By Marian Goslinga Page 14 "The fact of interdepen- dence is far greater than the perception of it." Page 18 "The problem of reaching the destitute and the poor is not insuperable. Resources are available." Page 30 "Our politics are run by the Soviet Union, our economy by Bulgaria, and our de- fense, by Cuba." On the cover: Luci6rnaga en la nochel Firefly in the Night by Cuban-born artist Rafael Soriano (Oil on canvas, 50" x 60"). See page 38. Avances en psicologia contemporanea Gordon E. Finley Gerardo Marin Las mas significativas y recientes aportaciones al pensamiento psicol6gico del continent americano, expuestas por sus propios autores, se han logrado conjuntar en este valioso texto que permitira tanto a profesionales como a estudiantes de psicologia actualizar sus conocimientos. B.F. Skinner, Edwin I. Megargee, Rogelio Diaz-Guerrero, Ruben Ardila y otros reconocidos psicologos desarrollan en esta obra diversos temas cuyo studio result imprescindible, por igual, para aquellos que se desempeian en el ambito de la ciencia de la conduct, y para quienes se aprestan a hacerlo. Editorial Trillas, S.A. Av. 5 de Mayo 43-105, Mexico 1, D.F. 1979 moneda y banca en america central Raul Moncarz El libro esta escrito en un lenguaje claro y comprensible teniendo en consideraci6n que el mercado potential para el cual esta proyectado esta representado por una amplia variedad de posibles lectores. El material esta dividido en tres areas. La primera explore concepts basicos del dinero y la banca, tales como el lugar del dinero en la economic, la importancia de la banca y otros intermediaries financieros. La segunda parte hace un analisis detallado de la banca en Centroamerica, la expansion y contracci6n monetaria y los aspects econ6micos del sistema bahcario centroamericano en los ultimos cinco aiios, y finalmente, se estudia con detalle la banca central en Centroamerica y sus principles funciones. La tercera parte trata en una forma general y especifica la teoria y la political monetaria incluyendo aspects internacionales del dinero y la banca de Centroamerica. Escuela Bancaria Superior Centroamericana Tegucigalpa, D.C., Honduras, CA. 1978 2/cAr?BBeAN rEviEW CATIBBCAN SUMMER 1982 Vol. XI. No. 3 Three Dollars Editor Barry B. Levine Associate Editors Art Director Anthony R Maingot Danine Carey William T Osborne Design Consultant Mark B. Rosenberg Juan C. rquiola Contributing Editors Contributing Artists Carlos M. Alvarez Eleanor Bonner Eleanor Bonner Ricardo Arias T y Ken I. Boodhoo Terry Cwikla Jerry Brown Bibliographer Herbert L. Hiller Marian Goslinga Antonio Jorge Gordon K. Lewis Cartographer James A. Mau Linda M. Marston Raul Moncarz Circulation Manager Luis P Salas James E Droste Mark D. Szuchman William T Vickers Marketing and Sales Manager Gregory B. Wolfe Robert A. Geary Assistant Editor Production Assistant Judie Faerron Robert Valdivia Editorial Manager Beatriz Parga de Bay6n Caribbean Review, a quarterly journal dedicated to the Caribbean, Latin America, and their emigrant groups, is published by Caribbean Review, Inc., a corporation not for profit organized under the laws of the State of Florida (Barry B. Levine, President; Andrew R. Banks, Vice President; Kenneth M. Bloom, Secretary). Caribbean Review receives supporting funds from the Office of Academic Affairs of Florida International University (Steven Altman, Vice President for Academic Affairs) and the State of Florida and cooperates with the Latin America and Caribbean Center of FII (Mark B. Rosen- berg, Director). This public document was promulgated at a quarterly cost of $6,659 or $1.21 per copy to promote international education with a primary emphasis on creating greater mutual understanding among the Americas, by articulating the culture and ideals of the Caribbean and Latin America, and emigrating groups originating therefrom. Editorial policy: Caribbean Review does not accept responsibility for any of the views expressed in its pages. Rather, we accept responsibility for giving such views the opportunity to be expressed herein. Our articles do not represent a consensus of opinion-some articles are in open disagreement with others and no reader should be able to agree with all of them. Mailing address: Caribbean Review, Florida International University, Tamiami Trail, Miami, Florida 33199. Telephone (305) 554-2246. Unsolicited manuscripts (articles, essays, reprints, excerpts, translations, book reviews, poetry, etc.) are welcome, but should be accompanied by a self-addressed stamped envelope. Copyright: Contents Copyright 1982 by Caribbean Review, Inc. The reproduction of any artwork, editorial or other material is expressly prohibited without written permis- sion from the publisher. Photocopying: Permission to photocopy for internal or personal use or the intemal or personal use of specific clients is granted by Caribbean Review, Inc. for libraries and other users registered with the Copyright Clearance Center (CCC), provided that the stated fee of $1.00 per copy is paid directly to CCC, 21 Congress Street, Salem, MA 01970. Special requests should be addressed to Caribbean Review, Inc. Syndication: Caribbean Review articles have appeared in other media in English, Spanish, Portuguese and German. Editors, please write for details. Index: Articles appearing in this journal are annotated and in- dexed in America: History and Life; Development and Welfare Index; Hispanic Ameri- can Periodicals Index; Historical Abstracts; International Bibliography of Book Reviews; International Bibliography of Periodical Literature; International Development Ab- stracts; Public Affairs Information Service Bulletin (PAIS); United States Political Sci- ence Documents; and Universal Reference System. An index to the first six volumes appeared in Vol. VII, No. 2, an index to volumes seven and eight, in Vol. IX, No. 2. Subscription rates: See coupon in this issue for rates. Subscriptions to the Caribbean, Latin America, Canada, and other foreign destinations will automatically be shipped by AO-Air Mail. Invoicing Charge: $3.00. Subscription agencies, please take 15i. Back Issues: Back numbers still in print are purchasable at $5.00 each. A list of those still available appears elsewhere in this issue. Microfilm and microfiche copies of Caribbean Review are available from University Microfilms. A Xerox Company, 300 North Zeeb Road, Ann Arbor, Michigan 48106. International Standard Serial Number: ISSN 0008-6525; Library of Congress Classifi- cation Number: AP6, C27; Library of Congress Card Number: 71-16267; Dewey Decimal Number: 079.7295. Mobility and Integration in Urban Argentina CORDOBA IN THE LIBERAL ERA By Mark D. Szuchman Between the 1870s, when the great influx of European immigrants began, and the start of World War I, Argentina underwent a radical alteration of its social composition and patterns of economic productivity. Mark Szuchman, in this groundbreaking study, examines the occupational, resi- dential, educational, and economic patterns of mobility of some four thousand men, women, and children who resided in Cordoba, Argentina's most important interior city, during this changeful era. The use of record linkage as the essential research method makes this work the first book on Argentina to follow this very successful research methodology employed by modern historians. 290 pages, $19.95 I DA I = University of Texas Press 083 POST OFFICE BOX 7819 AUSTIN, TEXAS 78712 Please send copies of Mobility and Integration in Urban Argentina at $ 19.95 ea. Texas residents add 5% sales tax. D Check Enclosed ] VISA O MasterCharge Credit card no. Exp. date Signature Name (print) Address City/State Zip code --- Barry B. Levine shatters the myth of the victimized immigrant. BENJY LOPEZ A Picaresque Tale of Emigration and Return Using the first-person technique pioneered by Oscar Lewis, noted sociologist Barry B. Levine records and analyzes the life story of a Puerto Rican emigrant, "one of the most colorful characters to make an appearance in sociological literature...Barry Levine has that increasingly rare gift, the sociological ear. In this book, we have the result of his listening."-Peter Berger. "A labor of love for Puerto Rico and its plight, and a fine piece of scholarship."-Ed Vega, Nuestro "Levine has rescued Third World man from indignity...I believe that few works will better demonstrate the circumstances of the Puerto Rican in New York than this one."-Miguel Barnet, Caribbean Review "Highly recommended"- Joanna Walsh, Library Journal "Excellent..."-Frank Fernandez, Revista Interamericana "Valuable research, excellent writing"-Raymond E. Crist, Latin America in Books "Estupendo..."-Carlos Alberto Montaner, Spanish International Network "A rare work about the Puerto Rican diaspora..."-Gerald Guinness, Americas "Interesting and refreshing..."-Aaron Segal, Times of the Americas. "Opens the reader's eyes to the problems and challenges, the pain and frustration of life as a Puerto Rican in the big metropolis."-Joseph P. Fitzpatrick, S.J., Contemporary Sociology "A good read...but above and beyond its literary attributes, it stands on its own as a well-conceived, thoroughly researched, and solid study...A significant contribution to the scientific analysis of the causes and consequences of Puerto Rican emigration and return."-Angel Calder6n Cruz, Caribbean Studies "A stupendous book that only a sociologist/anthropologist willing and unafraid to let a little humanism and common sense creep into his study could write. A very human document about a very human being."-Gary Brana-Shute, The New West Indies Guide. $12.95 at bookstores, or direct from the publisher (212) 593-7083 Visa and MasterCard Accepted BASIC BOOKS, INC 10 East 53rd Street, New York 10022 CAIBBEAN PFEVEW/3 IB "'* Election posters: Colombia and the Domin- ican Republic. ~ The Springtime of Elections The Status of Democracy in the Caribbean By Don Bohning, Juan O. Tamayo and Bernard Diederich Although no one has been paying much attention, democracy is alive and well around the Caribbean basin, if exercising the right to vote is a proper barometer. While El Salvador elec- tions for a constituent assembly became a media event of worldwide proportions be- cause of Washington's preoccupation with the tiny Central American country, voters elsewhere in the region were casting ballots with amazing regularity and considerable significance. Beginning with Costa Rica on Feb. 7, including El Salvador on March 28, and concluding with Mexico on July 4, national elections took place in nine of the more than 30 countries and territories that fall within that amorphous geographic entity known as the Caribbean basin. In addition to the three named, voters also went to the polls in Guatemala, the Dominican Re- public, St. Lucia, the Bahamas, the Dutch Antilles and Colombia. For the most part they were elections whose significance was submerged by a combination of the roar of guns and rhet- oric of the Falklands War in the South Atlan- tic, the Reagan administration's escalation of the Central American crisis to the level of East-West confrontation, and a media men- tality known in the trade as "coups and earthquakes" in which the spectacular takes precedence over the significant. An election, especially one untroubled by vio- lence or bloodshed, is a mundane happen- ing condemned to the back pages even when its longterm impact on the nation far outstrips that of a passing natural disaster. How many readers know, for example, that Colombia, vying with Argentina to be the largest Spanish-speaking country in South America, held an election May 30 in which an underdog Conservative Party can- didate defeated a former Liberal Party presi- dent principally because of a split in the Liberal Party ranks? Not many, if one is to judge by the coverage it received. Of the major US media, not even The New York Foreign correspondents, Don Bohning and Juan O. Tamayo cover Latin America for The Miami Herald, Bernard Diederich covers the area for Time magazine. Times, universally regarded as the "news- paper of record," staffed the story with its own correspondents. The only one to do so was Time magazine but which has yet to record the election outcome in its pages. The principal problem, of course, was the War in the South Atlantic which had stretched media resources to the limit and by the time of the Colombian and Baha- mian elections was then at the end of its second month, with interest peaking as a climax neared. Other significant elections overwhelmed by the Falklands War in- cluded the tiny English-speaking Eastern Caribbean island of St. Lucia, the Bahamas and the Dominican Republic. In the Dominican Republic, incumbent president Antonio Silvestre Guzman kept his promise and became the first elected president in his country to voluntarily not seek a second term. But he did not live to complete this first cycle of power. Just 43 days before he was to hand over power to his successor he took his own life. On Guz- man's death, Vice-PresidentJacobo Majluta was sworn in as president and both he and the military chiefs swore to uphold the con- stitution and hand over power to President- elect Salvador Jorge Blanco on August 16. Stunned Dominicans heard PRD Secre- tary-General Jose Francisco Pefia G6mez eulogize Guzman, saying he had killed him- self (in a palace bathroom) in an act of "supreme responsibility, of civic courage, of patriotic shame" because Pefia said he had discovered that some of his aides were cor- rupt. "There is no doubt," he explained, that Guzman had shot himself to "leave final proof that he was an honest and serious man." Placing the emphasis on "honor" tends to put political suicide in a different light in Latin America. It was after Guzman had received a Catholic burial that Pefia G6mez delivered his speech declaring the president had taken his life as an act of honor. Guzman, he claimed, had given his life for both party and patria. As tragic as this ending was, it did demonstrate the new- found Dominican democracy. Said a Do- minican newsman: "If this had happened a few years ago, the generals would have been pushing and shoving to reach the pal- ace first and occupy the presidency." That democratic strength was reinforced by the fifth consecutive election since the 1965 civil war and US intervention. It was an election in which the cast of characters were mostly old antagonists of a bloody past when bullets, not ballots counted. It was the first real election by television (the Domin- ican Republic today boasts five color chan- nels) starring live and on video the principal players of the 1965 revolt which brought massive intervention of United States troops, ordered ashore by President Lyndon B. Johnson to prevent "another Cuba." Communists and caudillos and rabid anti- communists all campaigned in a civilized manner to win the hearts and minds of the 5.5 million Dominican people. Together the extreme right and extreme left received less than 5% of the vote. In St. Lucia, voters returned conservative former Prime Minister John Compton to office after nearly four years of chaotic rule by a divided left-of-center government. In the Bahamas, Prime Minister Lynden Pindling's Progressive Liberal Party scored its fifth straight parliamentary election vic- tory. Pindling remains the premier of elected leaders in the hemisphere, having headed the island government since Janu- ary 1968. He ranks behind only Paraguay's Alfredo Stroessner and Cuba's Fidel Castro in terms of longevity among hemisphere heads of government. More than anything, however, the Bahamas election was a dem- onstration of faith in the electoral system with more than 90% of the islands' eligible voters turning out at the polls. The Falklands War was not the only prob- lem, however, in relegating election stories to the inside pages, since rightly or wrongly, the media often is guided in its pursuit of stories and the emphasis it gives them by the priority Washington assigns to them. And since coming to office in January 1981, Reagan administration policy has tended to portray the Caribbean basin as a region trapped in a tug-of-war between East and West, leaving little room in the news- pages for reports on democracy around the region. The Soviets and Cuba, US policy holds, have been stoking the flames of insurrec- tion around the Caribbean, if not to recruit CAI?BBrAN r VIEW//5 new members for the Eastern bloc at least to keep Washington busy fighting fires in its own back yard. Thus the rush of aid to El Salvador. Thus attempts to resume military aid to Guatemala. And thus the plan for a $350 million Caribbean Basin Initiative de- signed primarily to help countries of their region strengthen their defenses against Marxist penetration. Lost in the emphasis on East-West con- frontation and the penchant for "coups and earthquakes" are some hard facts: Of the nine elections in the first six months of 1982, only one, El Salvador, received front- page attention in the media and that was not even a presidential election. Three of the elections were won by parties more conser- vative than their predecessors in power, continuing a trend in the region that dates to late 1980. The others, for the most part, either returned incumbent governments to power or changed governments with no measurable change in ideological direc- tion. Not one shifted to the left. Guatemala's presidential elections, blatantly rigged on behalf of a conservative army general, were annulled in a coup by a group of young and moderate army officers who later installed a born-again Christian as the new president. He has promised new, and honest elections, although at an unspecified time that seems to set put further back with each subse- quent pronouncement. El Salvador, wracked by a bloody civil war, saw a record turnout of 1.5 million voters for its March 28 elections and gave four rightist parties a solid majority in the constituent assembly. Even Haiti, which has the longest-run- ning family dynasty in power in the region, seemed to be catching election fever. Not since Dr. Francois (Papa Doc) Duvalier came to power in 1957 have there been presidential elections in Haiti. But in his April 22 speech commemorating the anni- versary of his assuming the presidency-for- life in 1971 upon his father's death, Jean- Claude Duvalier declared he had decided to "decree free and honest municipal elec- tions." While Jean-Claude gave no date for elections, it is considered a first step and a positive one by the United States which would like to see a full range of elections in Haiti. Members of the US congressional black caucus, recently on a visit to Haiti, acknowl- edged his statement on elections and were eager to see the promise materialize. El Salvador In the most important of the elections, more than one million Salvadorans turned out under a hail of bullets to vote in March 28 elections for a constituent assembly that if nothing else showed the peoples' driving desire for a peaceful end to the civil war. There are questions-and maybe there will always be questions-about the exact number of voters, whether or not the vote represented a rejection of the leftist guer- rillas and even who really won. But with 100 official observers from abroad and 800 journalists reporting, there is no doubt the elections and the outcome represented the first free and fair elections held in El Sal- vador since the 1930s. There is also little question that the large turnout-officially 1.5 million people-undermined, perhaps fatally, claims by leftist guerrillas that they represent the majority of the Salvadoran people. The guerrillas claim the government put subtle pressure on people to take part in the More than one million Salvadorans turned out under a hail of bullets to vote. elections by marking the identification cards of those who voted. Such marks, ac- cording to the rumors, would later be re- quired for almost any official transaction. Whether or not the voters felt this pressure, the rebels themselves put far more pressure on people to abstain from voting, by direct death threats as well as a nationwide offen- sive, launched a week before the balloting, that left at least 200 dead. But the elections seem to have failed in two important aspects: They did not in- crease international support for the Sal- vadoran government, and, instead of making it easier for the government to govern, may have in fact complicated the nation's bizarre political alignments. The four rightist parties that won a 32-seat ma- jority in the 60-seat assembly consider themselves the winners of the balloting and quickly tried to grab the power to rule the country. But the liberal Christian Demo- crats of former President Jose Napoleon Duarte argued that they were the victors, with a 28-seat bloc in the assembly, and along with their allies in Washington, sought to retain a share of the power. The armed forces, showing they still are the real power behind the throne, stepped into the breach and proposed a group of five potential compromise candidates, from which the Constituent Assembly elected in- dependent banker Alvaro Magana as in- terim president of the country. Angered by the US and army pressures, the rightist ma- jority in the assembly later elected Roberto d'Aubuisson, head of the ultra-rightist Na- tionalist Republican Alliance, as president of the chamber. The bickering underlined the growth of the right into a legally orga- nized force that has further complicated the nation's weird political lineup and could un- dermine the program of progressive re- forms launched under the previous Duarte- military government. The rightist assemblymen already have adopted a string of measures that Duarte charged effectively killed most of the am- bitious land reform program. The rightists denied the allegation, but US congressmen were sufficiently worried to knock off $100 million from a military aid package in a clear warning that US aid to the guerrilla- besieged nation was still chained to con- tinued progressive reforms. The Dominican Republic In less violent but almost as important elec- tions, the Dominican Republic terminated 43 years of "caudillismo" and went to the polls May 16 balloting what seemed to mark the permanent rooting of democracy in the nation. It was a radical change for a country that suffered under 31 years of Tru- jillo dictatorship, the 1965 civil war and in- tervention by 27,000 US troops and, finally, another 12 years of rule by Balaguer. But Trujillo has been dead since 1961 and the two powerful figures that arose out of the ashes of his era, Balaguer and Bosch, suf- fered defeats in the elections. Balaguer, president from 1966to 1978, is now 74 years old and virtually blind, and his conservative Reformist Party is deeply split over who should succeed him. Bosch at 72 proved he is still a formidable politician even though his party came in a distant third, it was a remarkable showing for the mercurial leader who quit his own party- the PRD-in 1973 and then began from scratch with a new party he calls the Domin- ican Liberation Party. It was also a remark- able performance for the ex-president (1962-63) who in the early 1970s had es- poused a thesis of "dictatorship with popu- lar backing" which he proposed as a substitute for representative democracy that he felt had failed to help the great mass of people. The winner by an overwhelming margin was Salvador Jorge Blanco, a 55-year-old politician of a type that seems to be on the rise around the Caribbean-modestly lib- eral, committed to fair government and sur- rounded by young technocrats who promise "economic democracy" and a new generation" in power. Jose Francisco Pefia G6mez un- disputedly the Dominican Republic's most astute politician as Secretary General of the PRD and a leader in the Socialist Interna- tional, swept Santo Domingo as mayoral candidate. The city has grown to over a million from 460,000 in the past 17 years. On a tense Saturday afternoon in April, 1965, it was Pefia who stirred the city with a call over Radio Santo Domingo for revolt against the military-backed triumvirate and the restoration of the Bosch government. Jorge Blanco was to become the Attorney General in the constitutional government 6/CAI?BBEAN FETIEW which the backers of Bosch set up in the downtown section of the city. The Domin- ican Republic has come a long way in 17 years, but, as PRD leaders claim, the US intervention which cost a loss of lives, both Dominican and American, only delayed the democratic process. They were all there. Even Rafael Bonilla Aybar, the Radio-TV commentator who had been a prime campaigner for the overthrow of Juan Bosch in 1965 whom he painted a "communist" Besides the ex-general Elias Wessin y Wessin, the onetime rabid anti- communist instrumental in the overthrow of Bosch and opposed to his restoration by the 1965 revolt, there was youthful Narcisco Isa Conde candidate of the Dominican Communist Party. Isa Conde and his brother had figured prominently on the US government official list of 53 communists, whom they cited as involved in the 1965 revolt to justify the intervention of 27,000 troops. Today the Communist Party office is no longer clandestine and in fact has a large luminous sign over its portal in a little red brick house on Avenida Independencia op- posite the Union Church which is fre- quented by US Embassy personnel of the Protestant faith. Rafael "Fafa" Tavares, a June 14th move- ment fighter who raised his rifle and threat- ened the Americans in 1965 during an anniversary day speech, appeared middle aged and mature in his posters as candi- date of the socialist groups. There was no end to nostalgia. A lesson might be drawn from yesterday's El Salvador. Bonilla Aybar was quick to tell a TV audience there had been irregularities in the vote, but few paid him any heed. The Dominican Republic has no shortage of commentators, now. The military were at last under civilian con- trol and ballots had definitely replaced bullets. The PRD wound up with 46.7% of the more than 1.7 million votes, a record turn- out, and control of the 120-seat House of Assembly. Balaguer won 39.1% of the vote and Bosch managed 9.8%. There was no violence on election day and no repeat of the 1978 balloting, when the military stopped the vote count as it became clear that a victory was in store for Guzman and the PRD. The count was resumed under heavy pressure from the Carter administra- tion and Guzman served out his four-year term without further challenges from the military. The 1982 vote count went smoothly and by midnight the avenue that hugs Santo Domingo's coast had turned into a mile-long dance hall with thousands of "jorgeblanquistas" celebrating what one radio commentator called "this na- tional feast of democracy" "I want to congratulate all Dominicans, because today we achieved the final consol- idation of Democracy," said Guzman. But dangers lurk in the future of the Dominican Republic, dangers that everyone senses could undermine the country's young and still fragile democracy. The economy, while stronger than most of those around Latin America, is on its knees and causing prob- lems that ultimately could spill over into the political arena. Unemployment stands at about 30%, inflation hit 8.5% last year and the world price of sugar-the industry that the Dominican Republic lives and dies by- has been around 9 cents a pound, half the 18 cents it costs to produce. On the political field, the defeats of Bal- aguer and Bosch have left the PRD as the lone powerful party-and the one that will be blamed should Jorge Blanco fail in his attempts to rekindle the economy. Unless the PR and the PLD pick up their socks before the 1986 elections, the PRD could easily tum into a Dominican version of the Mexican Institutional Revolutionary Party (PRI), which has won every single major election over the past 53 years. Mexico The PRI did it again July 4 and gave Miguel de la Madrid an overwhelming election mandate to succeed President Jos6 L6pez Portillo when his six-year, non-renewable term expires Dec. 1. It was an easy victory for the PRI and de la Madrid, a Harvard- educated economist who broke almost every mold for the Mexican presidency by attacking rampant government corruption, speaking English and touting his wife's Catholic activism in a nation that is officially anti-church and intellectually anti-Ameri- can. Eight candidates from the left and right opposed de la Madrid, taking advantage of a string of political reforms adopted in 1977 by L6pez Portillo, who ran unopposed in 1976, to give opposition parties a louder voice in the nation's political life. But the real contest on July 4 was not for the peoples' sympathies but for their votes-half a cen- tury of PRI victories fueled widespread voter apathy-and the unity of the PRI, tom by splits between de la Madrid's team of young "technocrats" and the "old pols" fac- tion led by former Interior Minister Pedro Ojeda Paullada. De la Madrid will have to try to patch those splits at the same time that he grap- ples with an economy that overdosed on oil profits and exploded into 50% inflation, a 50% peso devaluation and a $60 billion for- eign debt, while doing little to erase the 50% unemployment and underemployment plaguing the nation of 70 million people. Landless peasants have been growing in- creasingly restless and membership in in- dependent labor unions has shot up despite the efforts of the PRI-afilliated Mex- ican Workers Confederation. Fidel Velaz- quez, the venerable head of the CTM and the man who kept labor in line as workers saw the buying power of their salaries dwin- dle, is in his late 70s and no likely successor is in sight. The poor are becoming increasingly dis- appointed over the failure of the oil money to trickle down to their level, the middle class has shrunk along with the economy and increasing numbers of students are graduating from universities, permeated with the PRI's leftist revolutionary rhetoric, only to find there are no jobs for them. "The biggest question these days is not what de la Madrid can do," said one Treasury Minis- try official before the elections. "The biggest question is whether his will be the last peaceful sexenlo-or the first violent sexenlo." Costa Rica In Costa Rica, the Feb. 7 elections saw voters keep up a 34 year near tradition of alternating the four-year presidential terms between two middle-of-the-road parties- Continued on page 40 CARBBEAN PCVIew/7 Two Hundred Islands of Soledad International Law of the South Atlantic By Farrokh Jhabvala The crash of guns shattered the tran- quility of the remote reaches of the South Atlantic in April of this year as a 149 year dispute between Argentina and Great Britain over the Falklands/Malvinas Islands suddenly lurched from diplomacy to a test of arms. The military confrontation and subsequent conflict were widely por- trayed and perceived in emotional terms as each party sought to internationalize the dispute and win the propaganda battle for world opinion and sympathy. On the one side the conflict was described as a na- tionalistic and anti-colonial struggle to rid the Western hemisphere of anachronistic extra-hemispheric presence; on the other, as the effort to deter aggression and to save the world from expansionist, authoritarian ambitions. These tactics appear to have received only mixed success; witness the lukewarm OAS and non-aligned resolutions or the grudging and reluctant decisions of the Eu- ropean Community with their early termi- nation of sanctions. Nonetheless, the emotions raised by the conflict and the pulsating drama of the military engage- ments have indeed served to displace tem- porarily from public view any discussion about the respective rights of the parties. Any settlement of the dispute, however, will have to reckon with the legal positions of the parties, even though other considera- tions-political, economic, military, strate- gic and the personalities of the leaders involved-are also likely to play a part. The Islands and their History The Falklands lie roughly 300 miles east of the southern tip of South America and the eastern end of the Straits of Magellan. There are two main islands, East and West Falk- land, and about 200 much smaller islands, the total land area being about 4,700 square miles, somewhat larger than that of Jamaica, and a third again as large as Puerto Rico. South Georgia lies about 700 miles east by southeast of Port Stanley or about 1,000 miles from Argentina. The South Sandwich Islands lie about 1,200 Farrokh Jhabvala teaches International Rela- tions at Florida International University. miles from Port Stanley in the same general direction as South Georgia; that is, about 1,500 miles from Argentina. The Falklands and South Georgia are inhabited. The South Sandwich Islands are unable on their own to support habitation although Thule Island has a weather station. By letters patent issued formally in 1908 and amended in 1917 Great Britain de- clared as dependencies of the Falkland Is- lands all territories included within the sector bounded by the meridians 20W and 80W, and extending from the South Pole to the latitude of 50S between 20W and 50W, and up to 580S between 50W and 80W. In other words, all territories that Brit- ain either claimed or possessed in the At- lantic and in Antarctica south of 50oS and excepting the Falklands themselves were constituted as the Falklands dependencies. In 1962 Britain reconstituted these territo- ries so that only South Georgia, the South Sandwich Islands and some minor out- croppings such as the Shag and Clerke Rocks remained Falklands dependencies. All territory claimed by Britain south of 60S latitude were formed into the British Antarc- tic Territory, administered from the Falk- lands' capital, Port Stanley. (The Antarctic Treaty of 1959 applies to the area south of latitude 60S.) Much uncertainty surrounds the discov- ery of the Falkland Islands. Argentina claims that the islands were discovered by members of the expedition of Magallanes in 1520. The British claim that the islands were first sighted by an Englishman, John Davis, in 1592. A Dutchman, Sebald de Weert, also sighted the islands in 1600. The relatively underdeveloped state of cartogra- phy and navigational techniques of the time increase the uncertainty surrounding the various claims of discovery, for the loca- tions of the islands supposedly sighted vary considerably. It appears to be undisputed, however, that an Englishman, John Strong, made the first recorded landing on the Falk- lands in 1690. The first attempt at settlement was led by the French navigator Louis-Antoine de Bougainville, who founded a French colony at Port Louis on East Falkland in 1764. In the following year the British founded Port Egmont, either on Saunders Island or on West Falkland. Spain, which claimed the islands on the basis of the Papal Bull Inter Caetera of 1493, the Treaty of Tordesillas and discovery, obtained the cession in 1767 of Port Louis by France in return for monetary compensation. They changed the name to Puerto Soledad. In 1770 Spain forced the British from Port Egmont but, apparently unwilling to go to war with Britain over the Falklands, agreed to return Port Egmont to Britain. The British garrison returned to Port Eg- mont in 1771 but was withdrawn in 1774, apparently for reasons of economy. They left behind a plaque claiming sovereignty over the Falklands for Britain. Spain maintained its settlement at Puerto Soledad until 1806 when the uprising in Buenos Aires province broke out. All Span- ish residents were pulled out in 1811. In 1816 the United Provinces of the Rio de la Plata claimed to succeed Spain in the Falk- lands and took possession of Puerto Sol- edad in 1820. The Buenos Aires govern- ment appointed a governor for the Falklands in 1823 but was unable to estab- lish a settlement there. Three years later a naturalized citizen of Argentina, Louis Vernet, was able to estab- lish a private settlement in the Falklands, and in 1829 he was named Commandant of the Political and Military Commandancy of the Malvinas Islands. Great Britain had not protested the Argentine actions till now but they did protest strongly the steps taken in 1829. By December 1832 a British squadron had taken possession of Port Eg- mont and in January 1833 it forced the surrender of the Argentine garrison at Puerto Soledad. There is no indication whatsoever that during this period, from the sixteenth cen- tury through the year 1833, the Falkland Islands/Malvinas included South Georgia and the Sandwich Islands. The precise longitude of the global division of 1493-1494 between Spain and Portugal is somewhat uncertain-to Spain all territo- ries west of the longitude 100 leagues west of the Azores and Cape Verde-but even the longitude most favorable to Spain would place South Georgia and the South Sand- 8/CAI?BBEAN Pv1IEW which Islands outside the Spanish sphere. South Georgia appears to have been first sighted by the Portuguese navigator Ves- pucci in 1502 and subsequently by a British ship in 1675. The first interest in these islands was ex- pressed by Captain James Cook who landed on South Georgia in 1775 and for- mally annexed it in the name of George Ill. Captain Cook also discovered the South Sandwich Islands on the same voyage. By the 1908 Letters Patent the British govern- ment formally annexed both South Georgia and the South Sandwich Islands. There is no indication that Spain ever voiced a claim to these territories which, from the very beginning have been ex- clusively in British possession. The first Ar- gentine claim to South Georgia dates only from 1927; and it made no claim to the South Sandwich Islands before 1948. The Interests Involved Contrary to popular belief the dispute and the recent hostilities are not over merely barren, windswept, inhospitable and re- mote specks of land which support more sheep than humans. That is not to deny that states and their leaders are altogether capa- ble of acting irrationally, precipitously and to further personal ambition rather than state interest. It appears, for instance, that the Argentine regime's decision to take the is- lands militarily was prompted in part by the necessity of deflecting the mounting do- mestic criticism of thejunta. Furthermore, the Argentine leaders appear to have badly miscalculated the reactions of Great Britain (under Prime Minister Thatcher), of the United States, and of the Third World in general. It is also entirely possible that in a "more-nationalistic-than-thou" atmo- sphere it may have been impossible for cooler heads and rational calculations to prevail in Buenos Aires. Similarly, it appears that Britain, too, misperceived Argentine in- tentions prior to April 2nd. Nonetheless, the important fact remains that the Falklands and their dependencies are not insignificant ocean outcroppings over which it would be reckless to fight. The Falkland Islands have, first, a strate- gic importance of their own. Apart from the Panama Canal, the only feasible maritime link between the Atlantic and Pacific Oceans is the Drake Passage. Even in nor- mal and peaceful times some of the larger tankers have to use the route around Cape Horn. The Falklands, situated in a position to control the Drake Passage-and the Straits of Magellan-thus have a strategic, military and maritime significance that can hardly be ignored. Indeed, naval units from the Falklands fought important sea battles in both World Wars. Geography also lends a second level of importance to the Falklands and their de- pendencies, for they hold the key to the resolution of conflicting Antarctic claims. Britain claims the sector of Antarctica bounded by the meridians 20W and 80W and extending from the South Pole to the latitude of 60S. Argentina claims the sector CARBBEAN ~liWE/9 I I of Antarctica bounded by the meridians 25W (the eastern extremity of the South Sandwich Islands) and 74W, and extend- ing from the South Pole to the latitude of 60S. The Argentine claim, made some thirty-four years after Britain's, overlaps in its entirety the British claim. If Britain were to lose the Falklands and their dependencies, and the support bases these islands provide, its position in Ant- arctica would be practically, albeit not le- gally, impossible to maintain. On the other hand, Argentina's claim to Antarctic terri- tory, being based largely on proximity and geological continuity, could hardly survive any interruptions of the alleged continuity or proximity brought about by the interposi- tion of British sovereignty. (This condition also explains in part Argentine inflexibility in its dispute with Chile, over the Beagle Chan- nel Islands.) Furthermore, without the Falk- lands, South Georgia and the South Sandwich Islands Argentina's Antarctic claims on the declared bases of proximity and geological continuity would be unsup- portable except perhaps in the sliver be- tween 74W and 64W. And here, the overlapping Chilean claim would have to be faced. Antarctica is of strategic significance for Argentina-as well as for Chile, New Zea- land and Australia. For these Southern hemisphere states, as John Hanessian Jr. has noted, "the Antarctic is not a distant frigid ice mass, but a nearby continent on which hostile military activity could easily threaten national security. Australia for ex- ample has for some years been uneasy re- garding Soviet Antarctic intentions." Scientific interests in Antarctica are un- questionable and at least twelve states maintain year-round or summer stations on that continent. Interest has existed in other states; in recent years Brazil, Peru and Uru- guay have appointed committees to investi- gate the possibilities of making claims and undertaking activity in Antarctica. The sig- nificance of a scientific presence for exist- ing or future territorial claims has not been missed and it is perhaps safe to state that while neither the United States nor the So- viet Union has yet made a formal territorial claim in Antarctica each would rest such claims, were they to be made, to a large extent upon their scientific presence there. While denying British Antarctic claims based upon "occupation" Argentina itself has argued that its presence at the Laurie Island meteorological station substantiates its claim to Antarctic territory. Though the economic possibilities of Antarctica are highly speculative at present it would be wrong to conclude that states consequently have little or no interest in Antarctica. The possibility of discovering commercially viable pools of oil, gas or hard minerals, the enormous quantities of krill that are known to exist awaiting only further development of suitable uses, the demon- strated feasibility of trans-Antarctic flights, and the continuing interest of some states in Antarctic whaling cumulatively hold out the hope of significant economic gain, however distant, for states that have a claim or a foothold in Antarctica. The develop- ment under international law of 200-mile exclusive economic zones strengthens and legitimizes extensive claims by states to re- sources of the oceans. A convention to manage and conserve Antarctic marine liv- ing resources was concluded in 1980 by the parties to the 1959 Antarctic Treaty, and The Falklands and their dependencies are not insignificant ocean outcroppings over which it would be reckless to fight. a set of recommendations on Antarctic mineral resources was adopted by the same parties in 1981. Finally, the nationalistic and jingoistic forces that are universally aroused over ter- ritorial claims and disputes must be reck- oned with in order to understand the British-Argentine dispute. States do not part with territory they consider part of their na- tional patrimony even if it be sparcely inhab- ited and of little tangible value. As Argentina has demonstrated, the "recovery" of pre- sumed national territory may well be a na- tional objective handed down through the generations and kept alive by being made part of the national culture. Indeed, the test of one's nationalism may be the extent of one's commitment to such an objective. Political scientists would add that pres- tige must be a factor, too. For, a weak British response to Argentina's military takeover of the Falklands could have been perceived globally as an inability and/or an unwilling- ness to defend British interests and com- mitments with possible ramifications everywhere. Similarly, once the Argentine junta had decided to move militarily any withdrawal without a fight could be seen to indicate that they were not too serious about "recovering" the islands. And, apart from the domestic consequences for both governments flowing from such percep- tions, the consequences for other interna- tional situations of conflict, say with Chile or Guatemala, could have been grave. This compendium of interests represents the setting in which the decisions of the two parties to resort to force over the Falkland Islands were taken. The decisions them- selves plainly carried the stamp of the per- sonalities involved and, perhaps, of haste and miscalculation. The Dependencies Argentina's claim to the Falkland Islands and their dependencies rests essentially on two bases: first, the putative legitimacy of Spain's title to the islands and Argentina's succession to that title after independence in 1810; and, second, Argentina's title to the islands based upon its own actions between 1810 and 1833. Spain's title to the islands is argued on several grounds: the Papal Bulls, the treaty of Tordesillas, discovery and possession of the islands and the acquiescence of other European states in Spain's claims. Argen- tine succession to Spain in the Vice-royalty of the River Plate (the doctrine of uti pos- sidetis) is argued as conferring upon Ar- gentina all the rights of Spain in that area, including title to the Falkland Islands. Fi- nally, it is argued that Argentina was illegally and forcefully deprived of the islands and that it has never accepted, nor will it accept, this loss of territory. The above line of argument can hardly apply to the dependencies, which therefore must be treated separately. South Georgia and the South Sandwich Islands are, re- spectively, 700 and 1,200 miles from the Falklands. The most favorable interpreta- tion from Spain's point of view of the vari- ous pronouncements and agreements of the period 1493-1494 would still place these islands in the non-Spanish sphere. There is nothing to show that Spain ex- pressed even the slightest interest in them; certainly nothing that would approach the level of manifestation of Spain's interest in the Falklands. The islands of the dependencies were probably discovered by the British. Much more important, however, is the fact that these islands were claimed and peacefully "occupied" by Great Britain from 1775 on- wards without even the slightest protest from Spain. Even after Argentine indepen- dence the new republic neither objected to British sovereignty over the dependencies nor made any effort at claiming them. The stark contrast between Spain's and Argen- tina's approach to the Falklands proper with that towards the dependencies can hardly have been greater. The first Argentine claim to South Geor- gia appears in 1927 and that to the South Sandwich Islands in 1948. In other words, the first claim to the dependencies was made after 152 years of uninterrupted Brit- ish sovereignty and in the absence of any other prior claim either by Spain or Argen- tina. As far as South Georgia and the South Sandwich Islands are concerned, therefore, they were British from the point that they became an object of state interest. Spain did not have-and did not claim-sov- ereignty over these islands, and a fortiori Argentina could not have succeeded to any rights over them. The association of these 10/CA1?BBEAN PCVIE~ islands with the Falklands stems from Brit- ish administrative convenience. Under international law, the most impor- tant elements in a question of title to terri- tory would be the intention of the claimant state or states (animus occupandi), and the actual exercise or display of state au- thority (corpus occupandi). Together these elements constitute the doctrine of "effective occupation." International courts and tribunals have, in several cases involv- ing territorial disputes, given primordial im- portance to "effective occupation" so that this factor has always prevailed over other factors such as discovery or proximity. The well-known Island of Palmas case provides an understanding of the doctrine of "effective occupation." The case con- cerned the island of Palmas which, accord- ing to Spanish maps accompanying the cession of the Philippines to the United States in 1898, was part of the Philippine archipelago and entirely within the area possessed by Spain. Nonetheless, the is- land was in 1898 and for many years prior to that date under the "effective occupa- tion" of the Netherlands. The United States argued that it succeeded to the rights of Spain over the Philippines; and that the rights of Spain arose from discovery, from treaties such as the 1648 Treaty of Miinster to which Spain and the Netherlands were parties, and from contiguity (proximity). The Swiss jurist, Max Huber, who pre- sided over the case gave a clear and con- cise statement of the applicable rule of international law. Sovereignty, he stated, based "on the title of peaceful and continu- ous display of state authority...would in in- ternational law prevail over a title of acquisition of sovereignty not followed by actual display of state authority...." He added that "[t]he title of discovery...would, under the most favorable and most exten- sive interpretation, exist only as an inchoate title, as a claim to establish sovereignty by effective occupation. An inchoate title how- ever cannot prevail over a definite title founded on continuous and peaceful dis- play of sovereignty." As for contiguity or proximity he dismissed it as follows: "the title of contiguity, understood as a basis of territorial sovereignty, has no foundation in international law." (For text of award, see 22 Am. J. Int'l L. 867 [1928], pp. 908, 910.) It ought to be added that Judge Huber recog- nized the critical importance of evaluating alleged actions and claims in the light of the law that prevailed at the time the dispute arose. Thus, his award evaluated the norms of international law that prevailed during the 18th and 19th centuries. Argentine jurists have in the past recog- nized and accepted the doctrine of "effec- tive occupation" in stating their own case for the Falklands. Clearly, an application of this doctrine to the dependencies would confirm British sovereignty over South Georgia and the South Sandwich Islands. Britain has granted leases for grazing and mining in South Georgia to a Chilean com- pany, an Argentine company, four Nor- wegian firms and several British firms. A magistrate has been continuously resident since 1909 and police, customs and post offices were established in 1912. Govern- ment buildings were constructed in 1925. Whaling licenses were issued in 1912 for the South Sandwich Islands to several Nor- wegian companies and one was issued as recently as 1927-28. Mapping and other exploratory activities were undertaken be- tween 1930 and 1937. The first claim to the dependencies was made after 152 years of uninterrupted British sovereignty and in the absence of any other prior claim either by Spain or Argentina. The volume of activity necessary to es- tablish "effective occupation" varies ac- cording to the condition of the territory and the competing activities of other claimant states. The Permanent Court of Interna- tional Justice declared in itsjudgment in the Eastern Greenland case (Nor(ad\ v. Den- mark) that "[i]t is impossible to read the records of the decisions in cases as to ter- ritorial sovereigntywithout observing that in many cases the tribunal has been satisfied with very little in the way of the actual exer- cise of sovereign rights, provided that the other state could not make out a superior claim. This is particularly true in the case of claims to sovereignty over areas in thinly populated or unsettled countries." ([1931] PC. 1.J. Ser. A/B, No. 53, p. 46) Contiguity or proximity does not provide a legal basis to territorial sovereignty, as Judge Huber correctly pointed out. Indeed, international tribunals in territorial disputes appear to have attributed "greater weight to-even isolated-acts of display of sov- ereignty than to continuity of territory, even if such continuity is combined with the exis- tence of natural boundaries." What is true of continuity must, a fortiori, be so much more true of proximity or contiguity. In any case, the dependencies can hardly be said to be contiguous to Argentina, being 1,000 to 1,500 miles away! If Argentina cannot prove "effective occupation" of the depen- dencies either by Spain or by Argentina it- self then the argument of contiguity will avail it nought. The legal weakness of Ar- gentina's case cannot but have been a ma- jor consideration in its steadfast rejection of several British offers of judicial resolution of the dispute. The Falkland Islands Even if the uncertainty surrounding the dis- covery of the Falklands could somehow be resolved it would not settle the issue of sov- ereignty. As the Palmas case illustrates, dis- covery would have conferred at best an inchoate title which, were it not consoli- dated through "effective occupation" by the discovering state, would have been liable to displacement by any other state that under- took "effective occupation" of the islands. The sovereignty issue over the Falklands turns on this point. One need not tarry long over the Papal Bull Inter Caetera and the Treaty of Tor- desillas. It is extremely doubtful that papal grants were sufficient to invest title in terri- tory against third states in the 15th and 16th centuries. Certainly, Catholic powers such as France and England under Henry VII did not consider papal grants as precluding their acquisition of territory in areas granted to Spain and Portugal. At best the Papal Bull, as well as the Treaty of Tordesillas, may be considered as instruments obliging Spain and Portugal inter se; they could scarcely be considered as limiting the rights of independent and sovereign third states such as Britain. More important are the claims advanced by Spain during the eighteenth century. Among the first acts or claims of Spain vis-a-vis Great Britain was the response to the planned British expedition of 1748-49. Spain objected to the dispatch of this expe- dition and Britain desisted from the planned undertaking without, however, conceding that sovereignty over the islands vested in Spain. The Bougainville settlement of 1764 at Port Louis and the claiming of Les Mal- ouines for Louis XV evoked another protest by Spain, which claimed the islands "on the ground of political expediency" and prox- imity. Spain sweetened its claim by offering to purchase the settlement, an offer "which indicated that the Spanish were none too sure of the validity of their protest," accord- ing to Julius Goebel, Jr., an author generally sympathetic to the Argentine view. For rea- sons of its own France eventually agreed to renounce its claim to the islands in return for monetary compensation. The signifi- cance of this transaction lies in Spain's as- sertion of its claim over the islands, that is, as evidence of animus occupandi. The transaction by itself, however, could not set- tle the Anglo-Spanish dispute; for France could hardly be considered as having had the powerto make such decisions on behalf of Britain. The establishment in 1767 of a Spanish presence in Port Louis, renamed Puerto Continued on page 42 CAI?BBEAN IEVIEW/11 Chagito, The Dreamer A Puerto Rican Short Story By Miguelingelo Rodriguez 6wg e must destroy the invaders from the East!" GUeybana's voice was sorrow-filled, for he was truly a man of peace, yet his body was painted black, the color of War and Death. The profound gaze of his large oval eyes signaled that every man, woman, and child was to fight the Spanish invaders. "They have robbed and mistreated us! Abused our women! Enslaved us! Broken the sacred guaitiao! We can no longer be blood- brothers with the invaders! There must be war!" The beat of the drum became heavier and louder. Gieybana the Brave stared at the bonfire in the middle of theyucayeque of his people who had come down from their cave refuges in the thickly foliaged mountains of Boriquen. Many dark eyes looked to him for an answer. The god Yocahi( had not saved them from being captured and put to work in the gold mines; the cemis did nothing against the invaders. No longer was there singing, cloth making, or the ball game ofbatey; every hand now was to be raised against the men who rode on frightening beasts and possessed loud, magic weapons that could kill. When the areyto was sung the prowesses of their no- ble Taino ancestors would bring them their needed success in the coming war; his gaze and moving lips took in every watchful face: "Boriqu&n is our land! Our fathers' fathers lived and died here! Our children must live and die in Boriqunn! We cannot let our- selves be captured and made slaves! We must fight!" shouted the cacique. "Destroy the enemy!" ...The Tainos stood up one by one. Their stone hatchets, spears of flint and mollusk reflected the bonfire's orange fury which also gave their dark, sweating skins and black hair a victorious, metallic sheen-there was hope now. Gueybana the Valiant would save them...lead them... "1Fbnte a limpiar no seas vago!" yelled Chagito'sabuelo. Te tengo que decir otra uez que barras el piso?" Chagito consen- tingly mumbled under his breath, and swept the floor quicker now. He looked back at his abuelo, standing behind the counter Writer Miguelingelo Rodriquez teaches in the Communications Department of American College, Bayam6n, Puerto Rico. in the colmado, with amazement. It was as if the old man had walked into a dark room and violently shook Chagito out of a deep sleep. "T7 eres siempre un soiiador, y bien sabes que tienes que barrer el piso y limp- iar el refrigerator La tienda siempre esta sucia y yo no tengo nadie que me ayude." Saying nothing in return, for-as Chagito found out-to contradict the old man was only to get him angrier, he continued sweeping the dusty, wooden floor, the vision of his angry, fearless people fading fast in Gieybana's-the Brave, the Valiant-dark, profound eyes. "iTu nunca haces lo que yo te digo!" commanded his abuelo. "Yo creo que hoy es un dia en que tu preferirias estar con tus amigos. iPero mijo hay trabajo pa'hacer!" Who did he think he was? Chago P&rez Romero, "Chagito," had been sent to stay in Puerto Rico with his abuelo because his mother was divorcing his father; and broken up, the family no longer lived in the Bronx. His sisters were still there though, with his mother. "Recuerda que tienes que poner las coca colas en el refrigerator," the old man continued. "...Pero abuelo...it's so hot. I feel tired," replied Chagito. But the old man did not hear his nephew and stood putting some cupones into the cash register, smiled at the customer as he always did because he really had a kind heart. "Mira," he said, pointing with his hand at Chagito and saying it out loud so the entire morning world could hear. "Tengo aqui un nenito que no le gusta trabajari Tienes que ser un hombre. Un macho. iTienes que trabajar!" "Acaba de barrer para que puedas ir a jugar con tus amigos." Chagito sheepishly smiled back, no longer feeling tired. He was relieved that he would soon be permitted to go out to play. His abuelo made him do this, do that, there was always something to do, which of course Chagito preferred not to do, never having been made to work this hard before. Yet while listening to the salsa com- ing from the General Electric radio on the shelf above the NCR register, he swept the aisle in front of the frozen foods, moving up to the rear of the store, sweeping in front of the Kelvinator beverage cooler where a poster advertised a beautiful blond smok- ing a popular low tar, filtered cigarette in front of El Morro; he could hear the latin rhythms end, then the news, his abuelo's footsteps going up the wooden steps to the apartment. Chagito stopped sweeping, resting the straw broom against the cooler; he was so tired. "ilYo oluides mopear de- bajo del refrigerador!" crackled his abuelo suddenly as he appeared at the top of the steps. Chagito quickly put the broom away and got the mop. "Si abuelo! iSi! iAhora!" He filled a bucket with Lestoil and water and mopped the inside of the colmado. In the rear, minutes later, he stood alone and quiet. The floor was damp-there was a strong smell of disinfectant...before he could go play he had to ask his abuelo; he could be safe here for the moment. Over- head, sunlight poured through a crack in a rear window, through that crack too the sounds of the sunfilled day; birds chirping, a truck roaring by destroying the serenity of everything, Vieques on the news again... As he stood there by the mop, which was taller than Chagito himself, his vision suddenly took in the array of Kellogg's Corn Flakes, Quaker Oats, Heinz baby food... "...It's the English, ready to attack again," the sergeant said coolly. "It's Drake!" said El Comandante Romero, taking the telescope and looking at the bay. "Load the cannons!" he commanded. "Load the cannons!" the sergeant repeated. Without haste, armored soldiers swept out the passageways of El Morro which guarded San Juan Bay. Already, Drake and his squadron of deadly English ships were within attack range; they wanted to capture Puerto Rico for the English crown. San Juan would be in panic-their last attack had razed the city. El Comandante had to defend it; he moved from one battery to another. "Remember God and Puerto Rico!" he exhorted. "Remember your fami- lies! Don't fire till they are within close range!" The handsome, tall muscular figure was a legend already, a warrior who had defeated the Indians in every battle, and 12/CAIBBEAN rEVIEW would now keep the Pearl of the Caribbean out of the hands of the terrible English. El Comandante, El Comandante-his name was whispered everywhere, and as he stood facing the Atlantic he heard his name in that feminine tone he recognized so well. It was Carlotta Marques Aboy, his be- trothed. She came in fitful agitation, her Andalusian features marred by soot, the mound of red hair in disarray. These words burst out from her lips: "The English rebels have taken Vieques and sent a squadron to land further up the coast. They are march- ing on the town, soldiers must be sent! They have already burned my father's plantation! Comandante, you must send soldiers be- fore all of San Juan is burned! The English must not capture us!" she said in a near shout. "There is only one man who can save us!" He took her in his arms, "Don't worry," El Comandante answered in a cool, con- trolled voice, kissing her. "I will save you and Puerto Rico!" Immediately, he ordered the sergeant to take half the soldiers to defend the town. Then he moved from cannon to cannon, "Shoot Drake out of the water!" he ordered his men, but the evil pirate Drake came in closer, his cannons battering El Morro. "He's really invincible like they say," Car- lotta stated nervously. El Comandante tumed to his cannoners, "Let me get him!" he ordered, the soldiers standing back. With the telescope he looked out and found Drake's ship; he fixed the cannon on the target and lit the fuse, everyone stood back... "iChagito! iChagito! ZAcabaste de limp- iar el piso? iHas puesto las coca colas en el refrigerator?" He shook his head then got up and walked resignedly towards the front of the colmado, where there was an- other cooler, and soft, worn boxes of guineos, pirlas, yautia, and mangos, which had just come in season. "Tengo dos o tres cosas mis para que hagas," said his abuelo, as he walked slowly down the stairs. "Oh..." Chagito sucked in air with disap- pointment. He was tired of working; every since he'd come to the Island all he had done was work...and he missed his mother and father. "Hay latas y botellas para poner en los anaqueles." "But abuelo...you said..." "Not now. Not now," he replied using some of the little English that he knew. "Later you can go. There is much work to do." His abuelo's stern, dark gaze was no match for Chagito and he shuffled past the newsrack "NAVY CONTINUES OCCUPA- TION" and the boom boom boom of can- noning ringing through his senses-. It was lunchtime Chagito realized when Continued on page 44 CAfBBEAN MVIEW/13 Whatever Happened to Cancun? The 600 Billion Dollar Question By Pamela S. Falk Mexican President Jos6 L6pez Portillo at CancOn conference, 1981. he investment climate in most of the developing world-especially Latin America-has deteriorated dras- tically. The chances of a significant eco- nomic recovery-with an international recession unparalleled since the 1930s, record-high interest rates, soaring debt ser- vice burdens, low commodity prices, and increasing energy bills-is next to nil. These ominous signs, as well as a reticence by most industrialized nations to increase for- eign aid programs, threaten to reverse the slow but steady growth Latin America has achieved during the past two decades. The summit conference in Cancun in October 1981 demonstrated increased re- alization by industrialized and industrializ- ing nations-the "haves" and the "have- nots"-that coordinated development is preferable and perhaps inevitable. The Pamela S. Falk is Director of Programs at the Center for Inter-American Relations in New York. She attended the summit conference in Cancun as an observer. Her book, Cuban Foreign Policy in the Twentieth Century, will be published by Lexington Books in the fall. tremors of international recession in the North are today felt as economic earth- quakes in the South. As Brazilian Foreign Minister Ramiro Saraiva Guerreiro said in Cancun, "the North-South dialogue is no longer an exercise in making demands by peripheral countries aimed at nations set on a firm course and completely in control of its underlying variables." The debate is a dialogue not between outcasts and benefactors but between inter- connected groups that comprise the inter- national economic system. For when pri- vate debt is added to public debt, the total debt of the South to the North today reaches $600 billion. In the continued eco- nomic expansion of the developing nations, clearly, trade and aid are essential, es- pecially in the Western hemisphere. At the heart of the development equation is the need to increase capital flows to developing nations, for without capital there is no in- vestment, and without investment, there is no future-the fear which, in effect, sparks the turmoil in the region. Several different groups have been for- mulating programs during the last year to increase both private sector contributions to bilateral development programs as well as government contributions to multilateral lending institutions. In the assistance pro- grams that the developed nations of the West are proposing, most notably those by the White House, security and development assistance are defined as an indivisable unit. New changes in the world, according to former US Secretary of State Alexander Haig, present challenges that economic and political foreign policies must over- come. In fact, the reality of a security threat is not as germane to cooperation in interna- tional development programs as the per- ception of that threat; for less crucial than the motives, the fact that developing na- tions are being given increased economic assistance and attention may well be bene- ficial to their development process. Ineffec- tive aid programs of the 1960's illustrate the need to direct dollars and jobs to local peas- ants and small business owners rather than to the military or to the top "fourteen fami- lies." "Security assistance is specifically de- signed to shape events and address short- term problems," Haig cautioned. The logi- 14/CAiFBBCAN PEVIEW US President Ronald Reagan at CancOn conference, 1981. cal consequences of aid geared to security concerns-in addition to history-illustrate the problems in definitions that emanate from the definition of "friendly states" which can "help us assure our most vital national interests." At Cancun, the debate over cooperation between the world's rich and poor-com- monly known as the North-South debate- moved to center-stage. The willingness of twenty-two heads of state to gather in Can- cun, Mexico reflected three changes in in- ternational political and economic rela- tions. First, economic interdependence among virtually all nations is at an all-time high. Second, there is a new emphasis on the role of the private sector in international economic development; and third, there is the new definition of political and security interests which requires economically-sta- ble developing nation allies. These changes in global economic relations enhance the prospects for North-South cooperation. The threshold question remains: Do eco- nomic interdependence, increased par- ticipation of the private sector, and a changed perception of political and security interests form mutually-exclusive forces in an international negotiating setting such as Cancin? The answer must be no. The tradi- tional demands by both the North and the South have been extreme. The paramount demand of the South of a voting structure for the international lending facilities that represents one-nation, one-vote, is scoffed at in private by directors of the World Bank. Credit ratings in bond markets, the direc- tors claim, would dive. But one might wait forever for the private sector to bail out 500 million starving people in the world, a re- sponsibility it may not feel. Compromise of these positions must recognize the realities of a modern interdependent economy. De- velopment programs must recognize the needs of the South to determine its own fate and the limits of the North to shape devel- opment plans tailored to the 1980s. Debt and the Private Sector Recent programs for assistance-most no- tably the US proposal for Caribbean basin development-emphasize a combination of government incentives for private invest- ment and public cushions for increased trade. The plan is, no doubt, flawed. It is, nonetheless, welcome aid in hard times. In fact, its troubled trip through the US Con- gress is being anxiously followed by most nations in the region. If there is no plan for the Caribbean basin when the 97th Con- gress adjourns, there will be resentment by many Latin American allies. Efforts to remove the Caribbean Basin Initiative from US purvue and place it under World Bank direction would surely kill the plan. But what it needs is not a total over- haul nor a change of venue. As Robert Yost, outgoing ambassador to the Dominican Republic (appointed by Carter) put it, "This idea is a non-starter: there is no way to pass these funds through the World Bank. I have no interest in promoting Reagan's policy. It is a program that just should be passed." The programs embodied in the plan are, for the most part, reliant on bilateral aid-and carry all the liabilities that two-way dealings bring: heavy-handed influence, lack of a multiplier effect, threat of withdrawal, and vulnerability to the whims of the US Con- gress. Another plan might be preferable, but there are none waiting in the halls of the CAIBBCAN rIVIE /15 White House or the chambers of the Cap- itol. The Caribbean basin aid is, by most accounts, better than nothing. That is not to say that there is no place for multilateral lending today. Although con- cessional lending has seen better days, the World Bank, a director argued last fall, "is no Red Cross." In multilateral lending institu- tions, programs which combine lending by private, commercial banks and guarantees by private insurance companies have been remarkably successful. Of course, since de- velopment capital, essential for investment and growth, is in short supply, the devel- oped nations need to fulfill obligations to the World Bank as well as to regional devel- opment banks, such as the Inter-American Development Bank (IDB) and the African Development Bank (BAD). The developing nations' public debt alone to the West reached $341 billion in 1980. The servicing of that debt soared from $11 billion to $112 billion during the last decade. It has thus come about that, today, more than in any previous period of history, that which harms the developing world also harms the developed world. Rec- ognition of this economic interrelationship is barely keeping astride with the reality. "The fact of interdependence," the World Bank's new President A.W Clausen warned, "is far greater than the perception of it." Even so, increased economic interdepen- dence is one factor which brought repre- sentatives of North and South (though conspicuously not the Soviet Union) to the round-table at Cancun. One of the reasons for the shift is the present high level of pri- vate sector participation in international de- velopment projects. Indeed, one of the principal objections by the US to the estab- lishment of a separate energy facility in the World Bank, is the large number of private oil company programs which require no taxpayer assistance. A World Bank pro- GRINANDBEARIT byichty&Wagner gram, the argument continues, should, "complement and facilitate, rather than substitute for, the role of the private com- panies." The question that is not answered by this argument is whether the interest of private oil companies coincides with that of the developing countries to develop self- sustaining energy sources. According to the US government, the emphasis on private sector participation in development is due to the dramatic up- surge in private direct investment after World War II, including the key role US pri- vate investors played in Europe's post-war One might wait forever for the private sector to bail out 500 million starving people in the world, a responsibility it may not feel. recovery. Between 1950 and 1980, US di- rect investment increased from $11.8 bil- lion to $213 billion. In 1979, although most investment went to the developed world, and the ability of the developing world to attract investment decreased, only $37 bil- lion was directed to Latin America and the Caribbean together. "Private capital flows," Ronald Reagan stated in 1981, when he described his position at Cancun, "now ac- count for almost 70% of total financial flows to developing countries." Improving the climate for private capital will likely be an essential part of a US development pro- gram. "Investment," Reagan concluded [clearly implying 'private' investment], "is the lifeblood of development." Finally, a redefinition of political and se- curity interests has become a fundamental component of current programs of eco- nomic aid, especially in the Caribbean basin. Stated simply, the current view of the Reagan administration appears to be: An economically stable neighbor is more likely to be a politically stable ally. Although the argument is not new to the foreign policy of developed nations, its importance dimin- ished during the years of East-West detente and its resurgence is directly tied to the in- creased perception of East-West conflicts. Former Secretary of State Haig argued to the US Senate Foreign Relations Commit- tee last Spring, "In the formulation of eco- nomic policy, in the allocation of resources, in decisions on international economic is- sues, a major determinant will be the need to protect and advance our security." Se- curity and development assistance have, during the Reagan administration's two years in office, gone hand in hand. The Shift to the South During the 1950s the concentration of eco- nomic development issues began to shift from the war-torn nations of Western Eu- rope and Japan to the chronically poor na- tions of the South. In the 1960s, the Cold War remained a major determinant in de- veloped nations' foreign economic and po- litical assistance programs and foreign policies. The international system was still fundamentally bipolar-divided between the United States and the Soviet Union. Re- lations between the North and the South were yoked to perceptions of security and influence. More often than not, the recently decolonized states had serious economic problems to confront as well as deep-set political divisions. The United States established the Al- liance for Progress to channel bilateral aid to Latin America; a "revolution of rising ex- pectations" in the nations of the Third World was fueled by generous aid programs de- signed to accelerate short- and intermedi- ate-term economic growth. Such aid was justified in terms of security and spheres of influence; an economically healthy Third World, it was felt, would mean a politically stable environment-both for the regions themselves and also for the developed North. The prevailing theory at the time was that financial aid alone did not have a last- ing and fundamental effect on the econo- mies of the nations involved nor did it contribute to self-sustained growth unless, 1) it was administered by multilateral in- stitutions and, 2)the benefits of trade agree- ments accrued to all nations involved in the agreement. Responding to the new-found strength in its economies and political systems during the late 1960s and 1970s, the South began to devote more time and effort to regional political institutions and simultaneously the South began to vote in a bloc more often. The public appearance of consensus, these nations began to notice, could be as impor- tant as agreement itself. The 1970s, how- ever, witnessed a shift. By mid-decade, the economic recession in the North caused by the shift in power to oil exporting countries, and compounded by the 1973-74 oil em- bargo by OPEC, hit the South severely. Oil exporting nations of the South were, more- over, in a very different position from their regional and political allies. Oil-exporting developing nations-including Mexico, Venezuela, and Ecuador as well as the Arab nations-splintered the voting unity of re- gional groups. In addition, during this pe- riod, the United States and the Soviet Union made temporary peace; as the Cold War waned, a new policy of detente diminished the developed nations' interest in protect- ing the South and insuring economic pro- tection from the volatility of the international marketplace. US assistance dropped to .2% 16/CAiBBEAN REVIEW of the GNP; growth in developing countries leveled off. Responding to the increasing fear that barriers such as protectionist policies would reverse the gains achieved by the develop- ing nations during the past fifteen years, several regional organizations began to call for a restructuring of the post-war interna- tional economy and the creation of a New International Economic Order. These calls were overpowered by economic and politi- cal crises in a distracted North. As an eco- nomic recession intensified, concessional programs of the World Bank became threatened. "Soft-loan" programs such as the Bank's International Development As- sociation (IDA) or the Inter-American Devel- opment Bank's Fund for Special Opera- tions, which rely on new contributions, became more dependent on approval by single nation contributors, such as the United States. By the end of the 1970s, the international economic climate had deteri- orated significantly. The era of multilateral lending appeared to be over. In September 1977, Willy Brandt, former Chanceller of the Federal Republic of Ger- many, warned that the current critical prob- lems of hunger, poverty and disease, would lead to "mass starvation," and established the Independent Commission on Interna- tional Development Issues to explore the ways that the North might address the se- vere and worsening crisis in the South. The Commission recommended reforms in: of- ficial development assistance, the structure and procedures of World Bank loans, changes in the bank's ratio of borrowing-to- capital, or "gearing ratio," lending criteria of the IMF, international trade, national food strategies, and energy. The response to the Brandt Commission-Report was lukewarm. When its recommendations were released at the end of 1979, the developed nations appeared to feel no compelling reason to respond. A report by the Inter-American Develop- ment Bank warned of an increasing crisis in Latin America: "The unprecedented in- crease in oil prices in 1979 and early 1980 by about 140%, again produced substantial balance of payments deficits." Similarly, deficits of the balance of payments of the industrialized North increased from $31 bil- lion in 1979, to $70 billion one year later. The results were devastating: a world-wide recessionary trend in production grew more pronounced; global inflation acceler- ated; unemployment increased. In coun- tries of the Organization of Economic Cooperation in Development the growth rate of the GNP fell from 3.3% in 1979 to 1% in 1980. Most relevant to the developing nations, the growth rate of international trade fell from 6% in 1979 to 1% in 1980. By the beginning of the 1980s, the gap between the rich and poor was widening rapidly; in 1980, 80% of the global GNP was enjoyed by only 25% of the population. Average GNP per capital in the developed countries of $8,000 contrasted with $597 per capital in the developing nations. Politically, the conflict between the East and West was reheating. 1979 witnessed the Iran crisis, the Nicaraguan revolution, the Soviet invasion of Afghanistan. Once again, interest in the economic develop- ment of the South was defined in terms of sphere of influence. In this new crisis en- vironment, the calls for a North-South sum- mit were renewed. In early 1980, when the Brandt Commission report was published, The Caribbean basin aid is, by most accounts, better than nothing. the South was rocked by more severe bal- ance of payments deficits, bankruptcy fears and increased political unrest than it had ever before experienced. Argentine econo- mist Raul Prebisch recommended a new approach. In a meeting of regional finance ministers in Montevideo, Prebisch called for a reversal of his previous policies of import substitution and growth based on aid from developed nations. The South, he argued, must rely on what it could produce itself. The caution was based on the well-founded fear that the era of multilateral lending was over. By January 1980, both England and the United States had recently elected lead- ers who espoused free trade and reductions of official development assistance. In this setting, the calls for an international summit conference first sounded in the Brandt Re- port were repeated and a response came in the convening of the Cancun summit. The Cancun Conference On October 22, 1981, eight delegates from the northern, developed nations and four- teen from the southern, developing nations filed into a conference room in the unlikely luxury of Cancun, Mexico to discuss the economic crises confronting the world's poor. During two days of closed-door ses- sions, 22 heads of state discussed five pressing issues of mutual interest: eco- nomic cooperation, energy, food and agri- culture, trade, and international finance. Mexico's President Jose L6pez Portillo and Canadian Prime Minister Pierre Elliot Trudeau, the conference co-chairman, emerged on October 23rd with a con- ference summary which all attending members supported. While the conference summary represented a compromise state- ment lacking any concrete proposals for global negotiations or specific commit- ments by the developed nations' represen- tatives, it enabled all participants to breathe a sigh of relief that none of the dreaded rhetorical ambushes had occurred. As the ground rules for the conference had re- quired, no agenda was followed, no formal agreements were announced. Even with these modest results, none of the 22 partici- pants broke rank in their expression of guarded optimism as they left Cancun. In part, this expression of support re- flected the assessment that sitting down together in such an unprecedented summit was, in itself, an achievement. In addition, the developing nations were able to state their plans, programs, and goals and, as the world watched, be heard. Yet, principally, the expression of support by the South re- flected the factthat the case for the develop- Continued on page 45 From FIU's International Affairs Center The Universidad Pedagogica Nacional, Bogota, Colombia, completed a higher education seminar on analysis, planning and development in May, 1982. The seminar, sponsored by the International Affairs Center and the Victoria Gildred Foundation for Medicine and Education in Latin America, was attended by ten senior level administrators of the UPN, including the Rector, Augusto Franco Arbelaez. A second seminar in July, 1982 on Special Education for three faculty from the UNP is currently in session at Florida International University. During July 1982, delegations from the Universidad Aut6noma del Estado de Mexico, Toluca, Mexico, and from the Universidad Central del Este, San Pedro Macoris, Dominican Republic, visited the University to initiate planning and delivery of programs and seminars in Mexico and the Dominican Republic. In early August, 1982, a team of senior level administrators from the University will deliver a higher education seminar to approximately forty participants at the UAEM in Toluca. The second meeting of the Executive Committee of the Interamerican University Council for Social and Economic Development (Consejo Universitario Interamericano Para el Desarrollo Social y Econ6mico) was held in Kingston, Jamaica, July 14-16 for the purpose of reaching agreement on the statutes, bylaws, operating budget and planning. Representatives from the following institutions were in attendance: Florida International University; Universidad Autonoma de Guadalajara, Mexico; Indiana University; Universidad Simon Bolivar, Venezuela; Universidad Catolica de Valparaiso, Chile; University of the West Indies, Jamaica; Universidad de Moron, Argentina; Universidad Peruana Cayetano Heredia, Peru; Universidad Catolica Madre y Maestra, Dominican Republic. International Affairs Center Florida International University Tamiami Trail, Miami, Florida 33199 Ph: (305) 554-2846 CAI BBCAN rPVIEW/17 Why Latin America Is Poor Cultural Factors in the Creation of Latin Poverty By Michael Novak It is odd, on the face of it, to blame the poverty of Latin America on North Amer- ican capitalism. Such poverty, after all, is a great deal older than its purported cause. Two hundred years ago, Latin America was poorer than it is today; but so was North America. At that time, Adam Smith drew attention to the two contrasting experi- ments taking place in "the New World," one on the southern continent and one on the northern, one based on the political econ- omy of southern Europe, the other launch- ing a new idea. In those early days, Latin America seemed to have greater physical resources than North America. Much of its gold, silver, and lead ended up in the ornate churches and chapels of the Catholic Church in Spain and Portugal. Columbus himself, seeking gold and other precious resources, sailed under a Spanish flag. By contrast, the first settlers in New England discovered lit- tle evidence of precious metals, and a rela- tively harsh agricultural environment. Even so, and by dint of great effort, they won from North America such riches as tobacco, furs, com, and later, cotton, which they traded to Europe for manufactured goods. In 1800, there were about 4 million Euro- pean settlers in the United States, about 900,000 blacks, and an "Indian" population estimated at one million. The population of Latin America was then more than three times larger, numbering 19 million, of which the original population of Indians, estimated at between 25 and 50 million in 1500, had been dramatically reduced. By 1940, the populations of the United States and Latin America were about equal- some 130 million each. By 1977, however, the population of the United States was rela- tively stable at 220 million whereas that of Latin America had shot up to 342 million. In computing average per capital income, population is important in three ways. First, Michael Novak is resident scholar in philoso- phy, religion and public policy at American Enterprise Institute in Washington, D.C. The above article was reprinted with permission from the Atlantic Monthly Company, and is ex- cerpted from Novak's book, The Spirit of Democratic Capitalism (Simon & Schuster). Copyright 1982 by Michael Novak. every newborn child lowers the average per capital income. Second, as the under-eigh- teen population increases in proportion, the relative number of productive workers de- creases. Third, rapidly increasing popula- tions indicate that many parents have decided in favor of larger families, through whatever combination of motives, and this preference, though it might be admirable, has its economic costs. Those who make that choice cannot properly blame others for its consequences. Since 1940, the pop- ulation of the United States has grown by 90 million, but that of Latin America has in- creased by 210 million. In the nineteenth century, on both conti- nents, independence was relatively new. Both had recently been colonies of the then greatest powers in Europe. All through the nineteenth century, trade between Latin America and North America was negligible. Nearly all trade by both continents was with Europe. In North America, the vast majority of persons became owners of their homes and lands; not so in Latin America. The moral-cultural system of North America placed great emphasis on building and working for tomorrow. The moral-cultural system of Latin America favored an empha- sis on personal rather than civil and eco- nomic values. Either choice has its own costs and its own rewards. Consider what might have been. Sup- pose that Latin America had developed in- dustries and manufacturing before the United States did. Clearly, the resources were available. Latin America is rich in oil, tin, bauxite, and many other important min- erals. Its farmlands and tropical gardens are luxuriant. Why then, didn't Latin America become the richer of the two continents of the New World? The answer appears to lie in the nature of the Latin American political system, economic system, and moral-cul- tural system. The last is probably decisive. Latin America might have been eco- nomically active, progressive, and indepen- dent. Indeed, it had the advantage of remaining outside World Wars I and II. It might long ago have placed the United States in its economic shadow. Yet its bishops do not blame the Catholic Church, the political and economic systems those bishops have long supported, or the past values and choices of the Latin American people. They blame the United States. Specific emphasis is placed upon prac- tices of trade. Between 1900 and 1950, trade between Latin America and the United States did begin to grow, but by 1950 the value of US investment in Latin America came to only $4.6 billion. During World War II, Western Europe lay in rubble, its economies broken, and Japan lay eco- nomically prostrate. After the war, trade be- tween the United States and Latin America continued to grow. Still, by 1965, the total value of all US investments in Latin America was $11 billion. By 1965, investments by Western European nations and Japan, just beginning to revive after World War II, were not of great significance. It seems pre- posterous to believe that such small sums are responsible for the poverty or the de- pendence of Latin America. They are nei- ther a high proportion of the wealth of the investing nations nor a high proportion of Latin America's internally generated wealth. The total US investment of $11 billion aver- ages out to $44 per capital for the 250 mil- lion Latin Americans of 1965. Moreover, US investments in Western Europe and devel- oped nations such as Canada and Japan were higher, over time, without producing similar "dependence." Is it supposed that such investments in Latin America should have been forbidden altogether? Traditional Catholic ignorance about modem economies may, in fact, have more to do with the poverty of Latin America than any other single factor. Consider the eco- nomic history of traditional Latin cultures. Latin Catholic Economics Max Weber observed that capitalism seemed to succeed first and most steadily in Protestant lands. He traced the origins of the modern capitalist ethos to Calvinism. Unfortunately, scholars observed, capital- ism was also retarded, for ideological rea- sons, in certain Calvinist strongholds- Calvin's Geneva, for one. The empirical pic- ture is a bit more complicated than Weber thought. For example, Hugh R. Trevor-Roper noted that many of the great entrepreneurs 18/CA TBBEAN FtrIEw of the sixteenth and seventeenth centuries are to be distinguished less by the fact that many were Calvinists than by the fact that nearly all were immigrants. In addition to the Calvinists, there were Jews and Cathol- ics. Thus Trevor-Roper asks, What made these entrepreneurs migrate? Why did they find some cities and some regimes hospita- ble and others (including some Calvinist ones) inhospitable? The details of Trevor- Roper's argument, which I here summarize, are rich and the scholarship he cites broad. The basic picture he draws indicts Catholic Counter-Reformation economies, particu- larly that of the Castilian monarchy of Spain, then at the zenith of its imperial power. Trevor-Roper uncovers many surprising patterns. He argues that the remote origins of capitalism, both as a system of produc- tion and as a technique of financing, lie in Catholic cities such as Antwerp, Liege, Lisbon, Augsburg, Milan, Lucca. "These were the centres of European capitalism in 1500," Trevor-Roper writes. Yet between 1550 and 1620 these centers were "con- vulsed, and the secret techniques of capital- ism were carried away to other cities, to be applied in new lands." Why? For Trevor-Roper, the decisive factor was a new alliance of Church and State, more intolerable with each passing year, which drove the new class of Catholic business- men in some cases out of their church but in many cases out of their native cities and homelands. They sought cities no longer under the control of princes and bishops; they sought self-governing cities of a re- publican character. A sharp contrast arose between such cit- ies' liberalism and the economic short- sightedness of the Spanish Empire. Made rich by silver from South and Central Amer- ica, the Spaniards, who represented the dominant Catholic state, misperceived the basis of their new economic strength. Offi- cials of Church and State grew ever more numerous. They produced little, being par- asitic upon the producers, whom they gouged and regulated until the latter emi- grated. With relative suddenness, then, the strongholds of the Counter-Reformation declined economically and northern Euro- pean centers of commerce gained the as- II ~ I!tI~ 'I I hi, I ~; ,tI In ',.r ~" A'J'14 CAl?BBEAN IKEIEW/19 'I .:- CA Z Isu~~ ~, cendancy. Trevor-Roper concludes: "The Calvinist and for that matter the Jewish en- trepreneurs of northern Europe were not a new native growth: they were an old growth transplanted. Weber, in seeing the 'spirit of Capitalism' as something new, whose ori- gins must be sought in the sixteenth cen- tury, inverted the problem. The novelty lay not in the entrepreneurs themselves, but in the circumstances which drove them to emigrate." The Counter-Reformation state at- tempted to gain control of commerce. It banned or restricted enterprise in the pri- vate sector. It licensed certain entrepreneurs to develop state monopolies; it favored state mercantilism over private mercantilism. "It was a change," Trevor-Roper reports, "which occurred predominantly in coun- tries of the Spanish clientele." At the time of America's founding-Latin America and North America alike-Spain and Portugal were the world's dominant and most active powers. But the philoso- phers and theologians of Spain and Portu- gal failed to grasp the inner secret that had made them so and, careless of it, lost it. For their colonies in the New World as well as for their nations of birth, this failure of Catholic intelligence was a calamity. Latin Catholic theology remains in its pre-modern phase, as is evident--and not only in Latin lands-by such statements as the following, by the Catholic bishops of Peru in 1969: "Like other nations in the Third World, we are the victims of systems that exploit our natural resources, control our political decisions, and impose on us the cultural domination of their values and consumer civilization.... The more we try to change, the stronger the forces of domina- tion become. Foreign interests increase their repressive measures by means of eco- nomic sanctions in the international mar- kets and by control of loans and other types of aid. News agencies and the communica- tions media, which are controlled by the powerful, do not express the rights of the weak; they distort reality by filtering infor- mation in accord with their vested interests." "We are the victims," the bishops say. They accept no responsibility for three cen- turies of hostility to trade, commerce, and industry. They seem to imagine that loans and aid should be tendered them indepen- dent of economic laws, and that interna- tional markets should operate without economic sanctions. After having opposed modern economics for centuries, they claim to be aggrieved because others, once equally poor, have succeeded as they have not. Are the bishops really expert in technical matters of international trade? Before pro- nouncing moral condemnation, do they understand the laws that affect international currencies? Do they wish to enjoy the wealth of other systems without having first learned how wealth may be produced and without changing their own economic teachings? The Peruvian aristocracy and military were for three centuries under their tutelage. Did the Peruvian bishops for three centuries teach them that the vocation of the layman was to produce wealth, eco- nomic self-reliance, industry, and com- merce, and to be creative stewards thereof? This intellectual failure appears among North American bishops as well. In an un- signed pamphlet, "Development-Depen- dency: The Role of Multinational Corpora- Among Nobel Prize winners in science, Protestants have been conspicuous. tions" (1974), the Catholic bishops of the United States say of themselves and their people, "We are a people...deeply commit- ted in theory, if not in practice, to the philos- ophy or the ideology of free enterprise in the old-fashioned sense of the word...." This statement, in form an empirical statement, is not true of the bishops themselves. It is not true of most American economists. The text and footnotes of the bishops' statement are filled with misinformation and innuendo. An example: "In the period between 1950 and 1965, US private corpo- rations invested $3.8 billion in Latin Amer- ica. Part of the profits were retained in Latin America to increase the total investment of the companies concerned; part of the prof- its were remitted to the United States. From this investment of $3.8 billion, no less than $11.3 billion in profits were remitted home to the United States, while the profits re- tained locally increased the investment of $3.8 billion to $10.3 billion. There are several confusions in this pas- sage, even if we accept its highly problema- tic figures. First, the total investment made by US corporations between 1950 and 1965, as given, averages out to $253 mil- lion per year. This does not seem like suffici- ent money to make all of Latin America "dependent." Second, the bishops ignore investments made before 1950, which, as we have seen, totaled $4.6 billion. This fig- ure must be added to the $3.8 billion in- vested during 1950-1965 to figure the base on which a return is made. The bishops say that with reinvested profits, total investment during 1950-1965 reached $10.3 billion. They do not give the cumulative total for the pre-1950 period. Finally, the bishops say that $11.3 billion in profits was remitted to the United States during the fifteen years. There is no way of telling, from their figures, on what base of cumulative investment these returns should be calculated. But per- haps a simple illustration will do. Invested at 8% interest, money will double in about twelve years. In fifteen years, at that rate of return, an investment of $10 billion should have more than doubled, simply if left in a bank. If the bishops intended to shock their readers concerning returns on Latin Amer- ica investment during 1950-1965, they did not make the case. Dependency Consider the assertion of Archbishop Dom Helder Camara, of Brazil, before the World Council of Churches in 1970: "It is a sad fact that...80% of the world's resources are at the disposal of 20% of the world's inhabitants." This assertion is not exactly true. Most of the world's oil, for example, appears to be in the hands of Venezuela, Mexico, Nigeria, Saudi Arabia, Kuwait, Libya, and Iran. Such curi- ous expressions as "the Third World" and "the South" mask many contradictions. It cannot factually be said that all Third World nations are poor. Furthermore, most of the poor in the world-in India and other parts of Asia, including China-are to be found north of the equator. In fact, the word "re- sources," as used by the Archbishop, must also be stripped of ideology. What he de- scribes as "a sad fact" is sad only if it is looked at from one ideological perspective. As a "fact" it is at best only partially true. Quite diverse cultural histories lie behind it. The combustion engine was invented under democratic capitalism barely 150 years ago. The first oil well was dug in Titus- ville, Pennsylvania, in 1859, and the first oil well in the Middle East was dug only in 1908. Most of the materials we today call resources were not known to be such before the invention of a democratic-capitalist po- litical economy; many were not known to be such even a hundred years ago. Such mate- rial remains inert until its secrets are dis- covered and a technology for bending it to human purposes is invented. The word "re- sources," therefore, includes within its meaning the factor of culture, of which dis- covery and invention are expressions. Prot- estant European culture, in particular, has been exceedingly fertile in the discovery of such resources and in the invention of such technologies. Among Nobel Prize winners in science, Protestants have been conspicuous. Thus Archbishop Camara might have observed, in fairness: "It is a marvelous fact that 80%-maybe even 90%-of the world's resources have been discovered and put to use during the past century by one of the smaller cultures on the planet. The benefits of such discoveries have been carried to every continent, but more must now be done in this direction." Dom Helder Ca- mara, of course, was trying to make a moral rather than a scientific point. Furthermore, 20/ CArBBEAN I VIe he was trying to make an ideological point. He was trying to suggest that there is some- thing "sad" in the preeminence of a minor- ity culture in the discovery of resources and in the invention of technologies for using them. Some cultures have organized their political economy precisely for this pur- pose. Others have not. Nothing prevented Brazilians from in- venting the combustion engine, the radio, the airplane, penicillin, and technologies that give resources their utility. Although Brazil is apparently one of the most richly endowed of all nations in material re- sources, neither Brazil nor other Latin American nations have so far provided a system favorable to invention and discov- ery. So, in a sense, the Archbishop's obser- vation is merely a truism: Those cultures that value the intelligent and inventive use of God's creation are far better off than those that do not. He cannot mean to imply that intelligence and invention on the part of some obstruct intelligence and invention on the part of others, for that would be absurd. Latin America is responsible for its own condition. It had beginnings very like those of Nortl America. The system estab- lished there has not been as successful as many would now like it to become. As late at 1850, the difference between the per capital income of Latin America and that of North America was not great. Most of the technologies the world now knows had not then been invented. Oceangoing ves- sels were still creaking wood and billowing sail. Although steam-powered locomotives were in use, they were still primitive and few. Most agricultural labor was by hand, and such machinery as had been invented-for instance the reaper and the combine-was pulled by animals. Highways were designed for horseback, carriage, and cart. Wars were fought with muskets and cannon. In population, Latin America in 1850 numbered 33 million, the United States 23 million (and all North America 26 million). Manufacturing was more highly developed in a few states in North America than any- where in Latin America, but both continents were largely agricultural. The mining indus- tries of Latin America were far more impor- tant than those of North America. The economy of Western Europe was stronger than that of either continent of the New World, and both continents depended upon Europe for most of their manufactures. But in some respects, certain regions of both continents enjoyed a higher standard of liv- ing than southern Italy, parts of Spain and Portugal, and other sectors of Europe, and both, therefore, attracted immigrants. In 1850, Great Britain was just complet- ing seventy straight years during which, with a dynamism never before matched in history, its economic output grew by an average of nearly 2% a year. This seemingly miraculous achievement introduced into the world the reality of economic develop- ment. It also gave material substance to the notion of "progress," which had long fasci- nated the imagination of the West. Spain also had colonies but did not have similar economic policies. In Britain, the law of pa- tents had greatly stimulated invention, as had the Royal Society. In every decade and in almost every year, new technologies ex- cited the populace. Invention was the source of British wealth. Why, then, did the paths of North Amer- ica and Latin America dramatically diverge after 1850? Why for the next hundred years Latin America is responsible for its own condition. did the economy of one remain almost static while the other steadily but ever more rapidly developed? During that century, North America hardly needed Latin Amer- ica. Latin America hardly needed North America. The volume of trade between them was highest in 1892, when the US exported goods worth $96 million to Latin America and imported $290 million worth. Latin Americans do not value the same moral qualities North Americans do. The cultures see the world quite differently. Latin Americans seem to feel inferior to North Americans in practical matters but superior in spiritual ones. In Latin American experi- ence, powerful personages control almost everything. From this experience, it is easy to imagine that the whole world must work this way, and to project such expectations upon North America. It must be said, then, that relations between North and South America are emotional as well as eco- nomic. The "Catholic" aristocratic ethic of Latin America places more emphasis on luck, heroism, status, and figure than the relatively "Protestant" ethic of North Amer- ica, which values diligence, regularity, and the responsible seizure of opportunity. Given two such different ways of looking at the world, intense love-hate relations are bound to develop. Looking at North Amer- ica, Latins are likely to attribute its more advanced status to luck-and also to a kind of aristocratic power. In their experience, wealth is relatively static, and what is given to one is taken from another. By contrast, looking at Latin America, a North American is likely to attribute its backwardness to an ethos better suited to aristocrats, monks, and peasants, who lack respect for commerce and industrial life and the moral virtues on which these de- pend. As Latin Americans do not admire Northern virtues, North Americans do not entirely approve of Latin virtues. Thus most North Americans are likely to feel not a shred of guilt for the relative economic posi- tion of the two continents. However, some North Americans are susceptible to the guilt feelings that flow from the reverse side of the "Protestant" ethic: the demand for perfect charity. Some feel unworthy of their own success. Some take many accusations to heart. They are inclined to believe Gustavo Guti&rrez's ac- cusation in his best-selling A Theology of Liberation: "The underdevelopment of poor countries, as an overall social fact, ap- pears in the historical by-product of the de- velopment of other countries. The dynam- ics of the capitalist economy lead to the establishment of a center and a periphery, simultaneously generating progress and wealth for the few, and social imbalances, political tensions, and poverty for the many. Gutierrez believes that the decisive libera- tion for Latin America will be socialism: lib- eration from private property. This is not a theological interpretation of development but an economic one. Moreover, his thesis of dependency is only one economic theory among many. It cannot be said to have bibli- cal authority. It does not square with many of the facts. It has many internal problems of its own. Official reports of the UN Economic Commission on Latin America give the most accurate portrait of the available facts. A brilliant young scholar who worked for that commission, Joseph Ramos, an econ- omist for the UN's International Labor Or- ganization and a professor at the Catholic Latin American Institute on Doctrine and Social Studies (ILADES), in Santiago, pre- pared background papers on economics for the Catholic bishops' meeting at Puebla in 1979, and has elsewhere replied to Gutierrez courteously and eloquently. In what follows, I draw upon his assessment of the economics of liberation theology, upon the UN statistical record, and upon US De- partment of Commerce reports. In particu- lar, I follow his review of Gutierrez's book. First, in embracing the dependency the- ory and the center-periphery theory, Gutier- rez inherits all the factual and theoretical weaknesses of those theories. In an interde- pendent world, every nation is dependent upon every other. The most highly devel- oped nations are quite dependent upon the oil-producing nations, for example. If one regards the oil nations as part of the periph- ery, they are, clearly, able to exploit nations in the center. If they are now to be located in the center-having until recently been on the periphery-then the original theory of center-periphery is a truism: a "center" is any self-reliant, economically active locale. Second, Guti6rrez seems to think that progress and riches in one place must sub- tract from what is available in another place. Continued on page 48 CARBBEAN PirIW/21 Absorbing the Caribbean Labor Surplus The Need for an Indigenous Engine of Growth By Ransford W. Palmer / 0 s. "y i i Jamaican Piresident Edward Seaga. Caribbean peoples historically have not had many options. Their ances- tors did not opt for leaving Africa; they were taken. And when they arrived in the Caribbean, they did not opt for colonial- ism; it was the established institution. Even the West Indies Federation which was to have replaced colonialism was not a Carib- bean option; it was in fact a metropolitan perception of what the Commonwealth Caribbean ought to have become. Regret- table as it may have been to many, the breaking away of Jamaica in 1961 was probably the first real exercise of a political option by an English-speaking Caribbean people. While national political indepen- Ransford W. Palmer teaches Economics at Howard University. This article is adapted from his presidential address before the Vllth Annual Meeting of the Caribbean Studies Association, Kingston, Jamaica, May, 1982. dence has indeed stimulated Jamaicans and other Caribbean peoples to reach for indigenous resources, their economic op- tions are still by and large controlled by external engines of growth. Centuries of colonialism and countless analyses of the limitations of small size have indoctrinated the Caribbean into perceiving its economy as defined exclusively by exter- nal forces. Consequently, post-indepen- dence development strategies were largely predicated upon metropolitan decisions to enlarge the market for Caribbean exports and to increase the supply of capital and technology for their production. But experi- ence has indicated that these external deci- sions also encouraged a pattern of growth and development that reinforced the pri- orities of the external decision makers. As a reaction, Caribbean governments during the 1970s began to underscore the need for growth and development patterns that rein- force domestic priorities. For such patterns to become truly operational, the Caribbean must systematically build an indigenous engine of growth capable of exploiting ex- ternal opportunities. Local Ownership Political independence has provided the ve- hicle for asserting the economic sov- ereignty necessary for mobilizing a country's resources in accordance with its national development priorities. For many Caribbean countries, the assertion of eco- nomic sovereignty has taken the form of the localization of ownership through national- ization of major industries, as well as through joint-venture arrangements. These strategies are a reaction to the progressive transnationalization of the region during the 1950s and 1960s, a time when Caribbean governments pursued "industrialization by invitation" strategies. While local ownership is a necessary step in the pursuit of national development pri- orities, it certainly is not a sufficient one. For even if 100% of everything is locally owned, the Caribbean will not be able to reduce its vulnerability to external shocks without the backward and forward linkages being in place. The task of local ownership therefore is to direct resources into the development of those linkages which the lack of local ownership has ostensibly allowed to lie fallow. Nationalization of the so-called com- manding heights of local economies may not by itself enhance the performance of this task, simply because no new invest- ment resources are created by such owner- ship. One might even argue that there is likely to be a net reduction in resources, since the national acquisition of ownership usually must be paid for out of future tax revenues. Thus the initial benefits from lo- cal ownership through nationalization may be limited to national pride. In the long run, the extent to which the nationalization enhances domestic control over the process of structural transforma- tion will depend on the competitiveness of these industries in international markets and the growth of these markets. If the ac- quisition of national ownership by itself will 22/ CAlBBCAN rFEIvE not enhance the performance of exports in these markets, neither will it increase the flow of profits for investment in structural transformation. The recent economic his- tory of Jamaica is a clear illustration of this. National ownership of the sugar and baux- ite industries and portions of the hotel in- dustry in the 1970s was followed by declining production. Yet some measure of national ownership is desirable when essential institutions with the power to mobilize resources are domi- nated by foreign corporations. Financial in- stitutions easily come to mind. It is not surprising that in many developing coun- tries, not only have governments acquired a substantial share of the ownership of private financial institutions, but they have also es- tablished complementary public financial institutions to mobilize financial resources as an essential first step toward the creation of greater employment opportunities and the ultimate reduction of the surplus labor. Anatomy of the Labor Surplus Because the magnitude of the surplus labor in the English-speaking Caribbean is great- est in Jamaica, it is worth focusing on the data for Jamaica. I have arbitrarily chosen the unemployment data for 1979, the year which, according to the Economic and Social Survey, was characterized by "ab- normally depressed labor market condi- tions." But I could just as well have chosen 1978 or 1980 since in all these years, the unemployment rate exceeded 25%. In October 1979, according to the De- partment of Statistics, the number of per- sons unemployed in Jamaica was 299,100 out of a total labor force of 962,500, yielding an unemployment rate of 31%. In devel- oped countries such a national unemploy- ment rate would mean an economic depression of cataclysmic proportions. In developing countries, it is regarded as just one of the characteristics of under- development. The Jamaican govemment defines the unemployed labor force as "all persons who were actively seeking work as well as those persons who although they were not actu- ally seeking work indicated that they were willing to accept a job and were in a position to do so." And it classifies the unemployed into "seekers of jobs" and "non-seekers of jobs." Those who were classified as non- seekers answered "None" to the question "What steps did you take to get a job?" Of the 299,100 reported unemployed persons in October 1979, 60% were classified as non-seekers. The main reason put forward for their not seeking jobs is the "relative unavailability of jobs in many areas." It could be argued, however, that many of the non-seekers opted for leisure rather than take jobs which did not fulfill their income and social expectations, and that they were able to make this choice because they could rely on what Henry Bruton calls a "sharing mechanism" that would sustain them until they found a job. This argument is reinforced by the data which show that 53% of the documented unemployed were under the age of 25, and that an almost identical percentage (54%) of those unem- ployed were supported by parents, guard- ians, or other relatives, while 28% were supported by spouses or common-law partners. It is of interest to note that twice as many non-seekers (35%) as seekers (17%) were supported by spouses or common- law partners. The main reason for this im- balance is the predominance of females among the non-seekers. The October 1979 data show 139,100 female non-seekers compared to 41,000 male. Of the males, only 800 received spousal and common- law support, while 63,100 of the females did. Despite the support mechanism that sus- tains the unemployed, the problem of pov- erty associated with unemployment and under-employment in the Caribbean is se- vere. For as Trevor Farrell reminds us in his analysis of unemployment in Trinidad and Tobago, "the argument that unemployment among the young and dependent bears no necessary link with household poverty ig- nores the fact that there is an operant class system. As such, one suggests that unem- ployed, dependent youth are likely to come disproportionately out of poor, proletarian households without 'connections' and which need extra income, rather than out of affluent middle-class households. This means that unemployment will in fact tend to correlate with poverty" (Social and Eco- nomic Studies, June 1978). Moreover, there is the likelihood that a permanent group of unemployables will develop- people who have been out of work for so long that they are unable to acquire the right kind of attitudes that success in a hierarchi- cal work environment requires. An Indigenous Engine of Growth How rapidly the Caribbean economy ab- sorbs its surplus over the next two decades depends on its success in generating lo- cally-rooted economic impulses to create employment. Currently, the primary em- ployment-creating impulses reside for the most part in North America and Europe, where the high value-added created by each worker assures a high level of demand for a complex market basket of goods and services. In the current international scheme of things, the Caribbean caters to this demand through the export of raw and semi-finished products whose local value- added is typically low. Through the trickle- down mechanism of international trade, the expansion of demand in North America and Europe increases employment in the Caribbean. In recent years this external en- gine of growth has begun to slow down. As long as Caribbean countries remain small open primary-goods-exporting economies, the character of the trickle- down mechanism of international trade will be governed by the pace of growth of the industrial users of these goods, whoever they may be. It is the industrial bias of this trickle-down mechanism that an indige- nous engine of growth must exploit. Indige- nous engines of growth are industrial sectors which intensively use local raw ma- terials, labor, capital, and managerial exper- tise to produce for the local as well as for the foreign market. This implies substantial lo- cal ownership as well as a low share of im- ports in the total production cost of finished products. Like Clive Thomas, I argue that "an effec- tive industrialization strategy must seek the vertical integration of the demand structure with domestic resource use." But unlike Thomas, who espouses production for do- mestic needs within a context of compre- CARBBEAN FCOEW/23 hensive planning and progressive disen- gagement from international capitalism, I see the aggressive exploitation of interna- tional markets as an essential function of an indigenous engine of growth. The fact that a development strategy encourages indige- nous development does not mean that it must disengage the economy from the rest of the world. The real test of a strategy of indigenous industrial development is the extent to which it allows a small economy to exploit the markets of the world. Here I draw support from Bela Belassa who argues that: "The flexibility of the national economy is greater under an outward-oriented than an inward-oriented strategy. In the former case, firms have been exposed to competition in world markets and have acquired experi- ence in changing their product composi- tion in response to shifts in foreign demand. By contrast, under inward orientation, there is generally limited competition in the con- fines of the narrow domestic market and firms have little inducement to innovate, which is necessary under outward orienta- tion in order to meet competition from abroad" (World Development, January 1982). The extent to which this indigenous engine will absorb local labor will depend not only on its success in exploiting foreign markets but also on the labor intensity of the production methods adopted. Manufacturing Whatever comparative advantage Jamaica has had in manufacturing for the export market has been in the production of those goods with a local resource base. The out- standing examples are alcoholic beverages, tobacco, and tobacco products. These were the only manufacturing industries which experienced growth in real output during the declining 1970s. Most of the others op- erated far below capacity because the dry- ing up of foreign reserves severely restricted the import of raw materials and equipment. Thus as we move from the local resource base end of the manufacturing spectrum to those industries with a predominantly for- eign resource base, the performance (and therefore the competitive position) of the manufacturing sectortended to deteriorate. Yet if the manufacturing sector is to develop a strong indigenous core, the growth of such import-dependent industries as pe- While local ownership is a necessary step in pursuit of national development priorities, it certainly is not a sufficient one. troleum refining and machinery and equip- ment which provide intermediate inputs for other industries is crucial. While a domestic raw material base facili- tates the development of comparative ad- vantage in a number of manufacturing industries, it is not a sufficient determinant of the indigenous character of an industrial engine of growth. Few would dispute the fact that the large chocolate manufacturing industry in Hershey, Pennsylvania, has been an indigenous engine of growth for that city. Yet America does not produce cocoa beans. Indeed, throughout much of the ad- vanced industrial world, many indigenous engines of growth have been built on raw materials produced in distant developing countries. Perhaps more than most indus- trial countries, Japan has shown that an indigenous industrial development can be based on imported raw materials. Yet as critical as these raw materials are, they rep- resent a relatively small share of the total cost of industrial production in these countries. The small size of Caribbean countries has frequently been displayed by econo- mists as a factor limiting similar develop- ment. But the limitations of small size are themselves governed by the stock of human capital and the quality of institu- tional organization, which together can generate policy decisions that can tran- scend some of these limitations. In the final analysis, the indigenous character of indus- trial development is determined by these very decisions. To understand the evolution of manufac- turing as an engine of growth in Jamaica, we must look back a few decades. Follow- ing the lead of Puerto Rico in the 1950s, many Caribbean countries actively encour- aged the development of light manufactur- ing industries through industrial incentive legislation. For these small countries with rapidly increasing populations, the oppor- tunity to combine captial and labor with very little land to produce goods for a large number of people had an exotic appeal. And when Arthur Lewis published his path- breaking explanation of the economic growth process in developing countries, he provided policymakers in these countries with the theoretical justification for encour- aging the development of a modern indus- trial sector with light manufacturing as its 24/ CA?BBEAN 1NVIEW centerpiece. With beautiful simplicity, Lewis argued that the industrial sector would ex- pand by mixing capital with an unlimited supply of labor from the rural sector. As the rural labor surplus is absorbed into higher- paying jobs in the industrial sector, agri- cultural productivity would rise to meet the increase in the demand for food and raw materials. In reality, this beautifully simple relationship failed to develop in the Carib- bean. For one thing, the growth of man- ufacturing in the 1950s and 1960s was led by import-substitution industries which had only the slimmest of ties with the local agri- cultural sector. For another, industrial in- centives provided by the government had the perverse effect of encouraging the sub- stitution of scarce capital for abundant la- bor. Mahmood Ali Ayub has encapsulated the Jamaican industrialization experience as follows: "The combination of duty-free or low-duty imports of capital goods, the choice of products designated as approved under the incentive laws, the generous de- preciation allowances, and quantitative re- strictions on final products have encour- aged rather capital-intensive investment in an economy where the unemployment rate averages about 25%" (Made in Jamaica, World Bank Staff Occasional Papers, No. 31, 1981). It is not surprising, therefore, that during most of the 1960s, the share of cor- porate profits in national income grew from 11% in 1963 to 14% in 1969, while compen- sation to employees hovered about 61%. Even during the "socialist" 1970s, when capital investment declined sharply, the lending policies of commercial banks con- tinued to subsidize commercial borrowers by offering them loans at interest rates far below the inflation rate. In 1979, for exam- ple, the interest rate on commercial loans made by commercial banks in Jamaica was 11% while the rate of inflation was 29%. This in effect meant that borrowers paid a nega- tive real interest rate of 18%. The interest rate subsidy to borrowers of capital was par- alleled by an interest penalty on those who acquired savings deposits out of their wage income. The data for 1979 show that com- mercial banks in Jamaica paid 7% on sav- ings deposits, which meant that at a 29% rate of inflation, holders of these deposits received a negative real interest rate of 22%. Given the fact that the price of capital has been artificially lowered by both public and private institutional arrangements, is it any wonder that the development of manufac- turing in Jamaica has had a capital-inten- sive bias? Yet, despite its capital intensive bias, Jamaican manufacturing did show some promise of absorbing a substantial amount of labor. During the period 1969 to 1973, for example, a 1% increase in real manufacturing output generally increased manufacturing employment by 0.6%. Even if we regard this as a low employment re- sponse, it meant that a 10% growth in real manufacturing output would absorb labor at a rate twice as fast as that of the growth of the labor force. But in the latter part of the 1970s, the promise died from a combina- tion of local and external shocks: local shocks arising from a political philosophy of state supremacy in economic affairs and external shocks arising from sharp in- creases in import prices reinforced by ex- change rate devaluations. Real manufactur- ing output plunged from J$400 million in 1973 to J$275 million in 1980, helping to sinkthe Jamaican economy into eight con- secutive years of negative growth. The initial benefits from local ownership through nationalization may be limited to national pride. Out of the ashes of the 1970s, an interest- ing statistical phenomenon has emerged. When one looks at the period 1976-1979, one finds that while employment in man- ufacturing establishments having ten or more workers steadily declined, employ- ment in small establishments (those with fewer than ten workers) steadily rose. The conclusion that we are left to draw from this is that had it not been for small establish- ments, the overall decline in manufacturing employment would have been more severe. It is not possible to say from the statistics the extent to which workers laid off by large establishments started their own manufac- turing enterprises or were absorbed by smaller enterprises. Whatever actually hap- pened, the statistics underscore the impor- tance of the role of the small establishment in the manufacturing sector as an employer of labor. All this suggests that if employ- ment is given top priority in the country's development strategy over the next two decades, small manufacturing establish- ments should be given special incentives to contribute to that employment. Govern- ment policy should not lose sight of the fact, however, that what the unemployed worker needs most is not top priority but a job. The Future of Manufacturing Employment By the year 2000, the Jamaican population is expected to be 3 million, with a labor force of roughly 1.4 million-40% larger than that of 1980. If the manufacturing sector is to employ, say, 20% of that labor force, it would have to expand fast enough to absorb 280,000 workers-a little over three-and- one-half times what it now employs. In other words, it would have to increase employ- ment at an annual rate of 6.6% to employ an additional 200,000 workers. Assuming that the degree of labor intensity of manufactur- ing remains the same as it was in 1980, i.e., 278 workers producing J$1 million of real manufacturing output (at 1974 prices), then total real manufacturing output would almost quadruple by the year 2000 to slightly over J$1 billion, assuming an an- nual growth rate of 6.6% over the twenty- year period. Thus, given the labor intensity of production, the rate of growth of man- ufacturing employment would be the same as that of real output. To maintain the same labor intensity, capital investment would have to grow at the same rate as employment. If we assume, conservatively, that it takes a modest J $5,000 of capital to create a job place, then in order for manufacturing to create 200,000 job places between 1980 and 2000, J$1 billion (at 1980 prices) would have to be invested in that sector alone. Whether or not this kind of invest- ment is forthcoming will depend among other things upon the prospects of quad- rupling the market for manufactured output. Any flow of large amounts of subsidized private foreign capital into manufacturing Continued on page 51 Florida International University now offers an interdisciplinary Master of Arts program in International Studies with an emphasis on socio-economic development. The program seeks to train individuals for employment with governments, private enterprise and international organizations. Courses in the program are offered by faculty in Political Science, History, Economics, International Affairs, Sociology and Anthropology. For further information contact: Dr. Farrokh Jhabvala Florida International University Tamiami Trail Miami, Florida 33199 (305) 554-2555. CAIFBBEAN FEVIEW/25 Interviewing Michael Manley The Role of the Opposition in Jamaica By Janis Johnson and Robert A. Rankin Michael Manley, prime minister of Jamaica from 1972 to 1980, was turned out of power after a bitter, violent election campaign in which some 700 Jamaicans died. His successor Ed- ward Seaga, swept into office with 59% of the vote. Seaga, a graduate of Harvard University, champions private enterprise and has been called President Reagan's model leader for Third World nations. Seaga in fact originated the idea which became Reagan's Caribbean Basin Initia- tive and was the first foreign head of state invited to Washington by the US president. Manley, a vice president of the Socialist International, remains prominent as an advocate of Third World socialism and the non-aligned movement He is the leader of the People's National Party, Jamaica's loyal opposition. He was interviewed in Kingston on May 19 by freelance writer Janis Johnson and Robert A Rankin of The Miami Herald. Robert A. Rankin: Is the honeymoon over for Seaga? Michael Manley: He has been able to mobilize a tremendous amount of loan sup- port and this has helped stabilize the situa- tion with the International Monetary Fund and ease the foreign exchange crisis partic- ularly as it affected our ability to service debt Obviously this has restored our finan- cial credit There has been a tremendous change for the better in Jamaica. I think the real cause for that is that once the election resolved one set of tensions, we as an opposition have deliberately done everything as quietly as possible, giving the country every chance to try to catch its breath and recover. This has had the obvious benefit of giving the country a breathing space from the sort of confrontationist politics that Seaga im- posed upon Jamaica he thrust upon Jamaica almost without letup from 1976 to 1980. I think the country paid a high price for it They got what they wanted, which was to win. They obviously have no further interest in confrontation because they are now in power. And we have not tried to get into the tit-for-tat game. The country has benefitted from that. The government claims that the stabiliza- tion of financial relations with the interna- tional banking system is recovery. From one point of view obviously it is. On the other hand in terms of economic recovery, we are very badly behind schedule. There has been no significant increase in produc- tion. Sugar is down, bananas are down, bauxite is down. Tourism is up to some extent but the moneyed tourist is not back yet. Behind all the propaganda they're se- cretly worried. Seaga made a series of concrete predic- tions about the rate at which certain pro- ductive targets would be overtaken; that within three years, this industry, that indus- try and the other industry would have reached a specific point. Every single one has already had to be amended, some by two years, some by one. And it is quite clear that they have not really achieved a produc- tive momentum. In foreign investment they had expected a lot more to happen in terms of capital inflow than has in fact taken place. RAR: We have been reading in the Ja- maican press about strikes increasing in certain industries. What should the govem- ment's response be? MM: Jamaica has always been a strike- prone society, not as bad as Britain but probably worse than America. Some of the difficulties that are surfacing in the labor movement are arising because employers are beginning to rough up the game. Em- ployers feel that their side is in power, that their man is there, and I think they are be- having accordingly. There is the case of a factory in the King- ston Industrial Estate called Servwel Ltd. which behaved really quite shockingly for about a year while we tried to get negotia- tions going. They just wouldn't come to the bargaining table and always found an ex- cuse not to come. After about a year, the workers lost patience and staged a stop- page. That employer who had dealt with unions for years, in an astonishing act, fired 79 workers and replaced them with men that he had recruited in the prime minister's constituency. It has led to tribunal hearings and to the supreme court. Another example is in a New York-owned brassiere factory in Port Maria on the north coast. Local negotiations took place and an agreement was arrived at; when the em- ployer in New York heard about what his representatives had settled for, he just uni- laterally countermanded half of it. Now you have a strike there. He responded by firing all the workers. Our union has had to take out an injunction against him. It's a messy business. Those are some examples. You may find that this becomes an increasing problem. The government is tied to an economic strategy which is predicated upon a certain kind of labor pliancy, a pliant labor force that is attractive to the foreign investor. The workers are put increasingly under pressure to behave themselves and not rock the boat. RAR: You have been critical of the Rea- gan administration's Caribbean Basin Initiative. MM: Speaking personally and for the op- position, we approve of the increased eco- nomic aid to the region. To the extent that there has been an incremental $350 mil- lion, we think that is good. We strongly ap- prove of the one-way free trade idea. We think that is an excellent positive step. We have merely reminded everybody that that is exactly what Europe has been doing for 10 years under the Lom6 Convention to the former African, Caribbean, and Pacific colo- nies of one or another of the European empires. We think this is a parallel develop- ment, equally good; an excellent develop- ment which I hope will not be destroyed in Congress because of interest groups. On the other hand, we do not approve of the military element, of the incremental mil- itary aid. We think that quite enough military hardware is passing through this region al- ready. The amount of military aid that is contemplated ought to be converted into economic aid. Our second criticism is that the plan does not contemplate funneling some of the in- cremental assistance to the existing re- gional institutions, particularly the Carib- bean Development Bank. The plan is too purely bilateral and doesn't look at regional possibilities such as the need to assist in the regional integration to which CARICOM is nominally devoted. 26/CAI?BBEAN KVIEW Nearly every other Caribbean territory shares my view. Seaga is the only person who does not make that criticism. Bar- bados has made the point. The new winner in St. Lucia, Compton, has made the point The Trinidadians have made the point The plan disregards the infrastructural needs of the smaller territories. They need help with their infrastructure so they can get to the point where they can take off economically. Our final criticism is: It is a bad thing to declare a regional plan and then discrimi- nate within the region. Either you say, "We are extending our bilateral relations," in which case, fine, that is America's inaliena- ble right. But to claim that you are carrying out a regional plan and naming it a Carib- bean basin regional plan is contradicted by the exclusion of certain countries. And we ask the question: How can you justify leav- ing out Nicaragua and Grenada but includ- ing what 1 have previously described as "dictatorships knee-deep in blood" like Guatemala and Honduras? How can you justify the inclusion of those countries and the exclusion of Nicaragua and Grenada in what you have chosen to describe as a re- gional plan? I was very pleased to see Congress had decided to put a country limit of $75 mil- lion. 1 am interested to see if the White House is going to accept it because they want to plunk money into El Salvador in particular. I rather approve of the congres- sional action because putting a limit forces a more equitable spread of the benefits to the region as a whole. How can I tell the United States of Amer- ica what to do? You are a sovereign nation, the most powerful in the world. You can do whatever you want to do. I'm not saying you don't have the right to put a billion dollars into El Salvador if you want to. What I'm saying is that if you're going to come to the region and say this is for all of you, this is a new start, it is for the great principle of hemi- spheric cooperation, then you contradict your declared purpose when you pick out El Salvador for special treatment and exclude other countries from anything at all. You really are not entitled to have the best of both worlds! Janis Johnson: What is your evaluation Jamaican ex-President Michael Manley. of the sandinista regime? MM: My view of Nicaragua is this: I think that they have tried to work in a pluralist direction. They certainly have tried to coop- erate with their private sector and to mobi- lize it as part of the whole revolutionary reconstruction. From the very start they have been put under tremendous pressure by elements of their private sector that would not cooperate and in fact have tried to sabotage the economic recovery. Later- ally they have been put under tremendous pressure from external forces, partly the old Somoza forces operating out of neighbor- ing countries. They certainly are put under tremendous pressure by the Reagan ad- ministration not by the Carter admin- istration by the Reagan administration. As the revolution has kept trying to be plu- ralist and moderate, it has found itself put to the sword in a number of ways internally and externally, and to preserve itself it has tended to radicalize. I attach great impor- tance to their own declaration that if the outside world would just give them a chance to settle down, that they will hold free and full elections by 1985. That has been said at the most solemn level of inter- national seriousness. RAR: Has the sandinista regime made it more difficult for Social Democrats in the hemisphere? MM: Atremendous effort has been made by the United States to use Nicaragua as a means of embarrassing Social Democrats. The US is forcing the pace all the time, trying to make an issue out of it, accusing Nicaragua of involvement in El Salvador, and then unable to come forward with one shred of proof. My suspicion as to what really lay behind the cancellation of the So- cialist International February meeting in Caracas was that certain people who had to face elections were afraid that being in- volved in a conference with Nicaragua would prove that they had communist or crypto-communist [views] or were soft on communism, and so they were protecting their own electoral flanks. I pay them all the courtesy of assuming that they're more in- telligent than to think that Nicaragua is a communist cats-paw when it really isn't. JJ: Does anything the sandinistas have done alarm you? MM: Obviously one has to be concerned about their relations with the press. Nobody pretends that they have not done things that perhaps one might have hoped they would not have. But I come back to the broader question: What is the broad thrust of what they are doing? It is clear they are trying to remain pluralist They are trying to do some fine work at the social level with literacy and education. A pluralism has emerged from a bitter revolutionary struggle. The country was flattened by Somoza. A scorched earth policy has never been more ruthlessly ap- plied in a country than did Somoza. Their country was flattened, came out of a blood- bath that was inescapable, is struggling to recover, is trying to be pluralist, is asking for help, particularly for help to be allowed to be pluralist We just don't have any sense of propor- tion about it. Our real concern ought to be to mobilize public opinion against the peo- ple who are sabotaging them intemally, like some of their own private sector, people who are stealing foreign exchange out of the country. If the world would surround CAffBBEAN PEVIEW/27 Ce I- I- -- -J F_ \/ them with a little protective public opinion and they then behaved in a rather total- itarian way in marginal instances, [there would be] time enough to turn around and say, "Hey, we're not going to support you if you do that." But what happens is people put them to the sword. We are quite uncompromising in our support. As long as we are assured of their broad pluralist commitment, to work for their people and behave with a residue of restraint, we think they deserve to be supported. RAR: Mr. Seaga has argued that when you were in power youwere taking Jamaica down the same path Castro took in Cuba. MM: Quite simply, Seaga is a liar. When Seaga triedto saythatwe were trying to take Jamaica down Cuba's path, he not only was a liar, he knew he was a liar. And if he says it now he's still a liar. It's as simple as that. You have only to look at what we did. It had nothing to do with the Cuban model. We were trying to run a mixed economy. We were importing millions of dollars for spe- cial foreign exchange to support our private sector. There just aren't any parallels at all. But in foreign policy, we worked with Cuba in the nonaligned movement, we worked with them for the new international economic order. We, like they, felt strongly about the liberation struggle in southern Africa. And from a different ideological per- spective, there were certain things we felt similarly about. We felt that this region would benefit if we would all forget about ideology and build up common shipping lines, find areas of economic cooperation where we did things as a region and didn't worry too much about Mexico's political form or Cuba's political form or Jamaica's political form. But of course, if anybody deals with Cuba in an honorable, principled and arms-length way in this region, he sets himself up as a propaganda target. Seaga used it ruthlessly, with complete cynicism. He's far too intelligent to have believed in all the stuff he talked about. When President Reagan says that Seaga saved Jamaica from communism, you only have two choices: He's either a fool or a liar. Because it's just not true; it's patently not true. After all, we didn't invite [Reagan] to come and insult Jamaica or insult the PNP [People's National Party] or insult us. I mean here I am, an honorable vice president of the Socialist International, the heartland of Social Democracy, accused of trying to turn Jamaica into a communist country! RAR: If Cuba was notthe model you were trying to follow, what was? MM: What we were always interested in was the Scandinavian experiment, Norway and Sweden in particular. I have always been interested in the way that worked, the cooperatives, mixed economy, strong state sector, working for industrial democracy through worker participation. A lot of what we do is born of our own thinking. If you insist upon parallels, I think the nearest par- allel to what we were trying to do is a coun- try like Norway or Sweden. There is no question that we were sandbagged in the propaganda. RAR: You've had 18 months out of power now. Would you have done anything differently? MM: The most important thing that we are concerned about is how to get our pri- vate sector to understand that the propa- ganda that we want to destroy them just isn't true. We were trying for eight and a half In terms of economic recovery, we are very badly behind schedule. years to say to our private sector: "The fact that we are working for social justice, trying to set up a mixed economy and dealing with the whole problem of an egalitarian econ- omy does not mean that you won't have a completely honorable and dynamic place in it. We want you to grow and expand and play your part and pull everything along." But we never really got that through to them. They always worried that somewhere we were really secretly trying to do them in. We are working very hard at the moment to try to studythe whole sequence of events. Where did it go wrong? Where did they get this into their heads? How much was our fault? How much was their fault? How much was opposition? We regard that as a critical part of what we have to do in opposition. We are taking this period in opposition to try to find out where it went wrong, to develop strategies so that it can't happen again be- cause we want to change the policy. The most important thing that has happened in our movement is that it has reconfirmed the conviction that what we were trying to do is basically right. The party spent the whole of the first year in intensive introspection at all the levels of our democratic process and came up with that unanimous view. RAR: Is your party more united now? MM: I don't know of any Democratic So- cialist or any Social Democrat party in the world that doesn't have a left and a right wing. There is always the more and less radical elements. The problem of politics within that kind of movement is to find a path that both support. I think people often exaggerate the extent to which we were in- ternally torn. But there has always been in- ternal tension. It goes back to my father's time, back to 1940. RAR: We don't hear much talk about the new international economic order." It doesn't seem to have the currency it did a few years ago. MM: The new economic order wasn't that primary. It was a foreign policy goal but an additional goal. Our first goal was to create in Jamaica an economy that was socially responsive. Because we did not see [the economy] as an experiment in pure market forces, we recognized a responsibil- ity to direct the economy towards deep so- cialist objectives. Now that's a simple statement of fundamental objectives. To achieve that means that there are certain areas of the economy that the state might have to own. We were very concerned as our second objective in how to democratize the econ- omy. That means a powerful interest in land reform of a certain kind, with a major em- phasis in people participation in the use of land. To insure large-scale benefits that come from larger organization of the land [we have developed an] interest in coopera- tives. That is why we had a strong desire to experiment with the cooperative form, why we put tremendous emphasis on land re- form itself. We were also interested in the whole industrial democracy idea, because the more you can democratize the worker's role in the workplace, the more you are democratizing control and ownership of the economy. Even the United Auto Workers in Detroit is experimenting with it now. We've been talking about this for 15 or 20 years. Incidentally in all of that, we always favor foreign capital but we never believed that a country should make foreign capital its deus ex machine, the thing that is going to solve its problems. We wanted to maximize our local efforts and have foreign capital help with capital formation, technology and things; rather than just saying, "We're so small we can't do anything ourselves, let us go for nothing but foreign capital." We think it is a very important difference in emphasis - maximize self-reliance but want foreign capital. We went to the trouble of working out a foreign capital code, a foreign invest- ment code which we put through Parlia- ment and every foreign investor who has ever looked at it said it was first-class, fully respects the rights of foreign capital, etc. All these things we thought were correct and still think are correct. In foreign policy we obviously felt that we should work for changes in the way the world economic system works. It is not going to come as quickly as we had hoped. But we have always [believed] that the South should cooperate a lot more inside itself. There are an awful lot of things that the countries of the Third World could do, by planned cooperation, which they are not doing right now, which would strengthen their economic base and add an additional dimension to the independence which we are supposed to enjoy politically. RAR: Would cooperatives imply state ownership? MM: Groups of people in an area would own the co-ops. The state would have ser- 28/ CAIBBEAN rI' 1E vices and marketing and things of that sort. We wanted to have cooperatives where the groups of people feel, "This is our stake." Instead of each one by himself, out of coop- erative aggregate each would get the ca- pacityto enjoy benefits of the common level of skill and advantages. When you look at agriculture, really, what are the choices? Either to hold to the old private plantation concept which creates an impossible social relationship. Or you can go for state-ownership. But again you'd get thousands of acres but then you'd have the problem of how to get them to work be- cause again [the workers] don't have a per- sonal stake. Or you have to find something that tries to get as many people involved in the land as possible, yet enables it to be efficient; hence the emphasis on coopera- tives. Your American experience is so differ- ent; you don't have to see your land as part of your unemployment strategy. You see the unemployment problem as a factory prob- lem, or a service industry problem. If we don't use our land as part of our unemploy- ment strategy, we're going to have 25% un- employment further. And if Seaga thinks he's going to solve the unemployment problem without using the land as part of the strategy, he's got an awful shock com- ing to him. JJ: What is your vision of the future? MM: Our mission has to be to create a just society and to form that society on the maximum economic independence that can be attained. Economic independence (not a crazy autarchy, nobody can do it themselves) is a necessary precondition to genuinely achieving either social justice or a feeling of psychological independence. Maximizing your capacity to control your own economy, minimizing its dependence on any one source of hegemonic power, doing your best to have diversified external links and.the greatest degree of internal control over your economy is possible. We think the dependent countries that have chosen the satellite route find that they can't really deal with social justice because they tie themselves to an absolute depen- dence on an outside power. This under- mines them psychologically, and perhaps even more dangerously, means that they are constantly having to determine their policies by reference to the outside force. What will it accept? What conditions will it demand? When the foreign capital comes pouring in, that enables your middle class to buy Cadillacs and Mercedes Benzes and what- ever they like a spectacular level of living - because the foreign exchange which comes with foreign capital creates an artifi- cial capacity to import. It is a very attractive strategy for any middle class, because all middle classes want to live at the highest standard. They read the same Vogue maga- zines, the same Harper's Bazaars. But what's the price you pay in terms of internal social dynamics? We think you pay an un- controllable price in the end, that you really create two societies. RAR: How long will it take before the insufficiency of this approach is going to be proven to the voters in Jamaica? MM: There are two choices. One is within three-and-a-half years. The other is eight- and-a-half. Eight-and-a-half is inevitable. I don't think there will be any question that we will get back in power in the ten-year sweep. Whether we can be the first to break that, and get back in before, remains to be seen. Nobody has ever done that before. Jamai- cans are rather locked in this ten-year thing. RAR: Do you see much hope for much real improvement in the lives of the average Jamaicans by the year 2000? MM: There will be real improvement. There has been real improvement. No question about that. With all that goes on, things tend to move gradually upward. Look where we've gone in the last 40 years. There's been improvement, gradual improvement. JJ: Are you optimistic? MM: Incurably. SoA CO.O"l PUS-1 CAl?BBEAN PEVI9W/29 Interviewing Eden Pastora "Comandante Cero By Beatriz Parga de Bay6n I t was a cruel introduction to the harshness of politics for Eden Pastora. At the tender age of seven he learned that his father had been assassinated by a member of Anastasio Somoza's National Guard. Ten years later, after watching four classmates die at the hands of Somoza's soldiers, Pastora joined a guerrilla move- ment fighting against the Nicaraguan leader's family despotism. At the age of 40 Eden Pastora was the leading figure in the takeover of the National Palace in Man- agua and the subsequent downfall of Somoza. He made headlines around the world not as Eden Pastora, son of Panfilo Pastora, but as "Comandante Cero." No other guerrilla in Latin America is more controversial, more admired or more feared than "Comandante Cero."It is said that this hardened leader-merciless to his enemies-wept tears ofjoy as the people of Nicaragua cheered him on the day the National Directorate gained power Al- though Pastora was not one of the nine members of the Directorate, he was widely considered the leader of the revolution. In April 1981, two years after the take- over Pastora surprised the world by re- signing his position as Nicaragua's Vice- Minister of the Interior He gave up his six- room home, sent his family out of the country and then also left Nicaragua. In his own words, he had to "chase the smell of gun powder" A true revolutionary, Pas- tora could not accept the "bureaucratic and luxurious lifestyle"of those he sought so long to depose. He wandered from Costa Rica to El Salvador, to Panama to Cuba, disappeared for months, then resur- faced to announce that he would return to Nicaragua to "rehabilitate" the revolution. He warned: "Stay out W&shington, stay out Cuba, stay out Moscow! This is Nic- aragua's business, to be handled by Nic- araguans." This interview by Beatriz Parga de Baydn, took place in Costa Rica in May shortly before Pastora was expelled from that country where he had taken refuge Beatriz Parga is a Colombian journalist presently working in the United States. She recently was awarded the Givre Foun- dationjournalism award, presented to her in Argentina by German Arciniegas. The 0< N I- interview was translated from the Spanish by Jayne Pennington, Manfred Rosesnow and Frank Van Reigersberg. Beatriz Parga: How long have you been fighting? Eden Pastora: Twenty-three years. I started in 1957 by organizing the Nic- araguan Revolutionary Committee at the University of Guadalajara, Mexico, while I was studying medicine. Later, toward the end of 1959, 1 went to Honduras with five Nicaraguan buddies. We slipped across the Nicaraguan border and joined a guerrilla movement, later to be identified as the Frente Sandinista de Liberacidn Nacio- nal. The FSLN was the first group to choose the red and black colors of Sandino as its fighting flag and the sandinista ideol- ogy as its political orientation. In late 19591 had my first armed encounter in Las Trojes, when we attacked the barracks of the Na- tional Guard. We were only 35 men fighting a whole garrison of 250 to 300. It seems unreal, but in guerrilla war it is possible. Later, I climbed all over the hills of Nic- aragua, from east to west, and from north to south. The only hills I did not climb were the ones around Managua: that residential neighborhood where the sandinista com- manders now live. BP: How do you feel when you have de- voted all your life to fighting dictatorships, to revolution, and to reform and now realize that you have not succeeded? EP: The fight was not totally unsuccess- ful. We knocked out the dictatorship, the cruel tyranny, the dreadful somocismo. The sad thing is that once in power, the nine leaders of the revolution became traitors of sandinismo. In a few short years they shed the mask of "pure" revolutionaries, imple- mented a Marxist-Leninist takeover Stalin- style, creating a totally repressive police state. They have confused the people by making them believe that they are par- ticipating in national decisions. No way! To go to a public square to yell slogans is not to share in the making of national decisions. It is necessary to establish party structures that will allow the people to participate. At this stage, the National Directorate has not developed a political structure where the people can play a meaningful role. You asked me how I feel. I feel the same way as all the people of Nicaragua. I feel what all the people of the world feel when they realize that they have been deceived. I feel sadness, anguish, frustration, anger, hatred and resentment. BP: Do you think that what happened in Nicaragua was the replacement of one dic- tatorship by another? EP: Definitely! It went from a dictatorship of the right to a dictatorship of the left. It went from totalitarianism of the right to to- talitarianism of the left. We, the sand- inistas, do not favor extremes, but a policy of the middle, a national policy that will al- low our people to freely elect their leaders, to have freedom of expression for ideologi- cal pluralism, and to have a mixed econ- omy. In addition to a lack of freedom, Nicaragua is now bankrupt There is no for- eign investment, no foreign capital, no do- 30/ CAPBBEAN IFEIEW mestic capital. We are broke. BP: How does a "broke" country recover? EP: Simply by working. I tell my fellow politicians that we should stop playing poli- tics and go to work, that everybody should become productive. A revolution is not pos- sible without an economy. You do not shoe the people's feet with speeches. You do not feed the people with slogans. You do not provide health, education, and housing with political demonstrations. To make a true revolution people must work, they must produce. The responsibility of the nine commanders of the revolution is to initiate these efforts. Unfortunately for Nicaragua they do not realize this, they are playing political games. BP: Had you been appointed the tenth commander of the National Directorate, what would have happened? EP: I think the same thing would have happened. They would not have listened to me. They have always accused me of hav- ing a low ideological level, of immaturity, of not having class consciousness. I would have had to leave eventually, to fight against what I believe is a mistake. BP: When did you realize that Daniel Or- tega [Coordinator of the nine-man Directo- rate and member of the Junta] was going to adopt Soviet patterns? EP: Soon afterthe victory. Priortothat we worked very closely, talking to each other informally. Later, our relationship changed. Ortega, dressed in the uniform of a com- mander of the revolution, spoke in a formal and impersonal manner. He changed his position of non-alignment at the summit of non-aligned countries in Havana. He let himself be led astray by Soviet tendencies. I began to realize that Nicaragua was in grave danger of treason, that Moscow was begin- ning to play a crucial role in our revolution. Now, our politics are run by the Soviet Union, our economy by Bulgaria, and our defense, by Cuba. When I started to fight, to explain how 1 saw things, they began to abandon me. It was then that I decided to leave. I sought other international move- ments looking for the same freedoms we had fought for in Nicaragua. BP: Could you tell me about your con- nections with Qaddafi? EP: I went to him simply as one more revolutionary to ask for a logistical aid plan for my Guatemalan brothers, and he agreed to give me $5 million. The Nicaraguan Di- rectorate, thinking that victory for me in Guatemala could result in a triumphant re- turn to Nicaragua, prejudiced the Guatemala liberation leaders against me. They told them that the money would give me more economic, political and military power that they had, that my popularity would overshadow the Guatemalan lead- ers. Because of that the Guatemalans re- fused the $5 million. BP: When Qaddafi offered you the money, were there any strings attached? EP: He offered it to me without conditions. BP: If you are against the intervention of one country in another, why were you think- ing about joining the guerrilla army in Guatemala? EP: Ahhhh! Because 1 am not a country, I am not a government. As a private indi- vidual I can do whatever I want One person does not represent the intervention of one country in another. BP: Following that idea, the Cubans and the Soviets could say: Our intervention in your country is by "private" individuals. EP: Well, in my case it was my own initia- tive and nobody could interfere with that. I wanted tojoin another freedom movement. There was no political intervention by any government. BP: About your trips to Cuba. What hap- pened the last time you were there? EP: The last time, I was there for four months. I wanted to work in Guatemala. I wanted to offer the Guatemalans my efforts, my experience, my life if necessary! The National Directorate did not like this and started to pull strings. Finally I was able to speak with the Guatemalans and got along with the members of the Revolutionary Or- ganization of the Armed People (ORPA). Their leaders were mature, well balanced, pragmatic and extremely aware of the real problems of the people of Central America. I had just begun to work with ORPA when I was invited to visit Cuba. I later discovered that this invitation was the result of a direct suggestion from the National Directorate. During those four months I went to beaches and night clubs. I had good meals, good wine, and a Mercedes Benz. They treated me with protocol, I lived in a grand resi- dence, but I was "politely" discouraged from leaving the country. Comments were being made abroad that I was a prisoner in Cuba, that I had become a political liability to the revolutionary government. To dispell the rumors that Panamanian military men had delivered me to Castro, the government of Panama sent the son of General Omar Torrijos, Martin Torrijos, to go to Cuba and get me. BP: What was Castro's attitude? EP: I have a good opinion of Fidel. Fidel has leased many things from his experi- ences. For example, he was not in favor of Nicaragua accepting the T-55 tanks offered by Russia. Fidel was not in favor of impos- CAIBBEAN eVIEW/31 ing rationing in Nicaragua. He said: "Do not make the same mistakes that we made. It is better even if a few thousand die of hunger." Stupidly, the leaders of the National Directo- rate, on the insistence of Minister of Do- mestic Commerce Nicho Marenco, im- posed rationing. And now sugar, oil, even toothpaste are rationed. Fidel advised: "Don't accept those tanks, they have a polit- ical price." In spite of this warning, the Na- ANNALES DES PAYS D'AMERQUE CENTRAL ET DES CARAIBES PUBLICATION BILINGUE (FRANCAIS-ESPAGNOL) CENTRE DE RECHERCHES ET D'ETUDES SUR EAMERIQUE CENTRAL ET LES CARAIBES DE EINSTITUT D'ETUDES POLITIQUES D'AIX-EN-PROVENCE BULLETIN DE COMMAND SERVICE DE PUBLICATIONS UNIVERSITY D'AIX-MARSEILLE III 3, AVENUE ROBERT SCHUMAN 13628 AIX-EN-PROVENCE FRANCE PRIX 45,00F-FRAIS DE PORT ISBN 2-7314-0004-8 tional Directorate accepted them. When the tanks did not arrive on time, Humberto Or- tega suspected Castro of stopping the ship- ment. He went to Havana to complain. 1 imagine that Fidel must have said, "Go to hell; take those tanks and you will know the price you are going to pay..." BP: How do you view the current rela- tions with Fidel? Closer to the Directorate or to you? EP: The rope will break where it is the weakest. Generally, everyone who has to choose between relations with a state or relations with an individual, will go with the state. History is going to tell the tale. I am not aware of Fidel's position with the National Directorate. Fidel knows that I speak the truth, that I am right. He knows that the problems of Nicaragua have to be solved by the sandinistas. Fidel knows that the best thing is no foreign intervention; not Moscow, not Washington, not Cubal This is our fight, a Nicaraguan struggle, and the time will come when I will publicly request that Fidel pull the Cuban military advisers out of my country. When I have to fight, I do not want to fight against Cubans in Nicaragua. BP: And for that fight, do you have aid? EP: I will get aid from honest people, revolutionary people, who understand the problems of Nicaragua. For the time being, I only have the backing of my own people. In 1959, when we started fighting Somoza, we did not have a penny. BP: Would you accept aid from Cuba, the Soviet Union, the United States or Qaddafi? EP: From anywhere! As long as there are no conditions, as long as our right to inde- pendence is respected. I would hope that the primary motivation for giving aid would be to assist in the fight for the right of all men to be free. BP: Do you need it? EP: I need it...My people need it! A revolu- tion needs money to fight back, to succeed. The purpose ofthesandinista revolution is Competition, Cooperation, Efficiency and Social Organization Introduction to a Political Economy by Antonio Jorge $9.50 ISNB 0-8386-2026-4 L.C. 76-20272 FAIRLEIGH DICKINSON UNIVERSITY PRESS P.O. Box 421, Cranbury, New Jersey 08512 to save the Nicaraguans from oppression, starvation and slavery. My noble and long- suffering people can only enjoy freedom and prosperity under a democracy with the government of the people, for the people and by the people. Once we are free this will serve as a catalist for the rest of Central America. But Nicaragua must be first. BP: The National Directorate is accusing you of being linked to somocismo and the CIA.. EP: They will tell any lie to stop me. For 23 years I have been fighting the somocistas who assassinated my father. I continue fighting for the same reasons. Me, an agent of the CIA? Ridiculous! Somoza called his enemies communist! The Na- tional Directorate calls anyone who is against them an agent of the CIA, of Ameri- can imperialism. When we were fighting Somoza, he accused us of being financed by Moscow... BP: If you return to Nicaragua, what will happen to the National Directorate? EP: It is their country too. They can stay there, live in freedom, even work in politics. They would have the same rights as the other parties. In a democracy, if the people choose the members of the National Direc- torate, the people have spoken! Fifty thou- sand Nicaraguans have died for the right to choose! BP: How long will it take you to return to Nicaragua? EP: That depends on developments in the political scene, what changes may oc- cur. Today I might say one year, and in three months I might say tomorrow. BP: Do you ever tire of the fight? EP: Our war cry is "A free fatherland or death." We, the revolutionary sandinistas, carry that cry deeply in our souls. Sandino's legacy will lead us to victory. No one tires of wanting to be free. And people who want to be free will fight, they will fight until they obtain their freedom. Or they will die stand- ing on their feet, like trees, with dignity... Professor Jorge's innovative study advo- cates a new and different perspective on the joined disciplines of history, economic theory, and the social sciences, and calls for a wider scope and a more flexible, if initially more complex, approach in the perception of socioeconomic reality. The book deals with competition and cooperation as antithetical approaches to human interaction in the social field. Com- petition and cooperation mix in an infinite variety of combinations, giving rise to a wide spectrum of different types of organizations. They also reflect, particularly in the long run, the nature of the motivational composite behind them. The essence of Jorge's message is that productivity and efficiency can be incorpo- rated into a variety of social arrangements, and that no particular model needs to be a maximum maximorum. 32/CAIBBEAN PiE EW BP: A very small country always needs an ally. When someone offers to be an ally, doesn't it mean in most cases that there are ulterior motives? EP: Not when our allies are our brothers, like Costa Rica, Panama, Venezuela, Mexico, and even Cuba, the members of the An- dean Pact. Latins, like us, who feelthe same, think the same, have no motives other than to develop the Third World. Our allies must be members of the Third World. Large seg- ments of the European and Asiatic world have these same goals. We all should have the best relations with the United States and the Soviet Union. These two great powers seem to understand each other so well; they divide the world among themselves, they talk about their neutron bombs, their atom bombs, and both have a bright red tele- phone, a hot line at the headboard of the bed, and they greet each other everyday: "How are you today?" "How is your flu?" "How is the weather?" and they tell each other fashionable jokes. It would be sheer stupidity to start fighting against one of them since they get along so well and they divide the world so fairly. It would be mad- ness for a little country to choose between two giants. They would step on me and destroy me...and they would shake hands afterwards. BP: When you think about your life as a guerrilla, what do you remember? EP: It is very complex to think about my- self as a guerrilla in combat. I think about my buddies that are no longer with me, the ones who died. I think about the physical exhaustion, the hunger, and the deprivation, sleeping on the floor when you get a chance to sleep at all. BP: Do you think that revolutionaries, after a certain time, begin to need the en- vironment of war? EP: Maybe...lt is difficult to unite a man with a rifle, but it is more difficult, once united, to separate him. That is one of the problems... BP: Are you afraid of ending up like Somoza? The National Directorate says, "the revolution has long arms against its enemies." EP: It would be a mistake for the National Directorate to kill me. It would create world- wide commotion and open confrontation with counterrevolutionary forces. They gain nothing if they kill me. BP: You spent your life fighting against a dictatorship, don't you think that dictator- ships such as Somoza's, Duvalier's or Batista's, are fertile ground for Marxism? EP: Definitely. They are the best protago- nists of Marxism-Leninism. They oppress and exploit and sentence the people to a life of poverty. I am not afraid of Marxism-Leni- nism. What frightens me is totalitarianism. When Marxism is applied Soviet-style, ac- cording to the social, political and eco- nomic laws of the Soviet Union, you transpolarize solutions, philosophy, and doctrine. BP: Do you think hunger of the people is stronger than weapons? EP: Definitely. Look at Nicaragua with Somoza, Cuba with Batista. Latin America is a volcano. If Duvalier was not sealed within an island, like a rooster ruling a chicken coop, there would be another cock crowing in the henhouse. BP: Nicaragua has always fought under one flag, what would have been the pos- sibilities had there been several flags? EP: We tend to identify a flag with an ideal. When we talk about the red and black flag we talk about Sandino and his ideas. His philosophy defends the sovereignty of our people, with beautiful phrases like: "The sovereignty of a people is not up for discus- sion. It is defended with weapons in hand." Sandino was a man who taught us to love Nicaragua, who gave us guidelines for peace, brotherly love, national dignity. When we fight, we have that flag in our minds, in our hearts. That is the sandin- ismo we now have to rescue; True san- dinismo. Not the Soviet version, the san- dinismo of Monimb6, not of Moscow. i The prestigious scholarly journal of the INSTITUTE OF CARIBBEAN STUDIES / UNIVERSITY OF PUERTO RICO ISSN 0008-6533 Caribbean Studies is entering its third decade of uninterrupted publication. It is written and edited by and for Caribbeanists and other persons keenly interested in keeping up with the best in Caribbean scholarly research and writing from a multidisciplinary, multicultural perspective. Here is a sample of articles, essays and research reports scheduled for publication in Volume 20 (1980). Equality and Justice: Foundations of Nationalism in the Caribbean / Wendell Bell Esclavitud y Diplomacia: Los Limites de un Paradigma Histbrico / Francisco Scarano The Trajectory of Canadian-Panamanian Relations / Graeme S. Mount Piri Thomas: Author and Persona / Eugene V. Mohr Exploration and Exploitation of Manganese Nodules in the Caribbean / Edmund Dale Bibliography of Theses and Dissertations on Venezuelan Topics / William Sullivan Trends in Caribbean English Fiction / Maria Teresa Babin Malaise Social et Criminalit6 aux Antilles Franqaises / Auguste Armet PLUS: Book Reviews Current Bibliography Documents To keep abreast of significant developments in Caribbean studies in the 1980s, subscribe now. Just fill out, clip and mail the attached subscription form. ----------------------------------------- TO: Institute of Caribbean Studies, University of Puerto Rico P.O. Box BM, University Station, Rio Piedras, P.R. 00931 Please enter my subscription to Caribbean Studies as indicated below. Enclosed is my check (or money order) for US$ in payment of this subscription. Volume 19 (1979) US$ 20 instit. US$ 15 indiv. E 20 (1980) $20 instit. $15 indiv. E 21 (1981) $25 instit. $ 16 indiv. E SPECIAL OFFER (new subscribers only). Subscribe to all three volumes (19, 20 & 21) and pay only: $40 individuals (save $6); $60 institutions (save $5). NAME INSTITUTION ADDRESS CAI?BBEAN FEVIEW/33 I :ea n' ties rcaribbean Studh;e AJ0 C 6Lh h chz, I t IU ses Hassan, and prominent a'X From top: Sandinista leaders Daniel Or- '-. tega, Miguel D'Escoto, Sergio Ramirez and ' somocista lawyer Rafael C6rdova Rivas. .w Illustration of Somoza from the dust jacket. 34/CA1?BBEAN EVIEW The Legacy of Dictatorship: Nicaragua The Fall of Somoza Reviewed by Carlos M. Vilas Translated by James F Droste Somoza and the Legacy of US Involvement in Central America, Bernard Diederich. E.P Dutton, New York, 1981. $19.75 The triumph of the sandinista revolu- tion has generated many books on the subject: interpretive essays, analy- ses of Nicaraguan society, testimonials of the war etc. This rush to publish has tried to satisfy the interest, or the curiosity, of an audience far beyond academic circles. The predominant note in these works has been one of interpretation. They have attempted to offer points of view and hypotheses about a process whose outcome is well- known, but whose history is all but unknown. The Diederich book helps meet this de- mand; richly informative, well written, and factual, it elaborates on the important as- pects of the Somoza dynasty, the US in- volvement in its creation, the development and eventual overthrow of the dictatorship, and some of the aspects of the revolution which overthrew Somoza. As foreign correspondent for Time magazine, the au- thor had direct access to the events nar- rated and the majority of the personalities involved. As in his previous works (on Trujillo and Papa Doc) Diederich's style is to let the facts speak for themselves. In this sense the pre- cise and meticulous-at times too meticu- lous-chronical makes this book, which is not as such a political scientific or a so- ciological study, into an informative input for the specialist or the investigator. Unen- cumbered by bias or slant which might have slipped in, a considerable risk in this type of work, Diederich offers valuable data for analyses of various dimensions and as- pects of the revolutionary road which led to the Frente Sandinista de Liberacidn Na- cional (FSLN) capturing undisputed power. In particular, Diederich presents a de- tailed account of three questions which, Argentine Political Scientist Carlos M. Vilas today works in Nicaragua. Translator James F. Droste is on the staff of CR. from this author's viewpoint, are of special importance. A first question concerns the involvement of the US throughout the whole of the Somoza dictatorship, the methods and means used by the US in various phases of the dictatorship, and the intentions of the Carter administration when revolutionary triumph became only a matter of time. Carter tried to disassociate himself from Somoza and generate a non- revolutionary (that is to say, a non-san- dinista) alternative by removing the Somozas while preserving their power ap- aratus; what the FSLN has called "Somocismo sin Somoza." The failure of the mediation attempts of first the US, Guatemala, and the Dominican Republic collectively, the OAS later, and finally the Bowdler mission underline the diplomatic defeats suffered by Washington as it at- tempted to detach itself from an ally whose fall threatened to go far beyond a simple change of personnel in the halls of power. Diederich suggests that the Washington initiative arrived too late, and in any case was wrapped up in the court of the Somoza dynasty. Possibly. His narrative, however, implies other hypotheses. It can be held, for example, that the Washington delay was simply a lack of any policy. The mediation strategy was elaborated and its implemen- tation was attempted much more as a re- sponse to the revolutionary anti-dictatorial struggle than as a product of a foreign pol- icy supporting non-dictatorial forms of po- litical power. This, perhaps, was not the exclusive fault of the Carter administration, but rather a constant in US-Nicaraguan re- lations over the last 50 years. The comfort with which the US developed its relations with Somoza made it impossible for the State Department to even formulate an hy- pothesis that the Somoza family might not be eternal. One can hardly escape the im- pression that it was only when the san- dinista struggle was at the brink of success that the US comprehended that such a the- oretical possibility was already a structured reality. The political and military struggle against Somoza and somocismo had been the ex- clusive property of theFSLN for some time. It is therefore difficult to conceive of a suc- cessful diplomatic initiative to remove Somoza without significant changes in somocista power structures, especially the National Guard, which needed for its own success the approval of Somoza himself! Therefore it could be suggested that the disqualifying factors of the non-revolution- ary alternative designed by the Carter ad- ministration were not so much the intrigues and delays of Somoza, who delayed his flight until the very last possible moment, but rather the US involvement, from the beginning, in an adventure into personal power, dictatorial dominion, exploitation and massacre. A second point, closely tied to the first, revealed by Diederich's data concerns the relationship forged at the last minute be- tween the anti-Somoza (or at least the not pro-Somoza) bourgeoisie and the US De- partment of State. This strategy was based on the growing opposition to Somoza in the middle class, particularly afterthe murder of anti-Somoza newspaperman Pedro Joa- quin Chamorro Cardenal. After that event the bourgeoisie began open, collective ac- tion against the dictatorship, seeking a non- revolutionary way to be rid of Somoza. From the beginning the strategy of the anti- Somoza bourgeoisie was to obtain the sup- port of the US embassy. Diederich illus- trates how the anti-Somoza bourgeoisie and the State Department established their close relationship, especially after the ap- pointment of Ambassador Lawrence Pezzulo. As a class, the anti-Somoza bour- geoisie participated in the social and eco- nomic benefits of the system of power. The "cost" they had been paying for those bene- fits was political banishment. If Somoza De- bayle remained in power despite the opposition of the reform-minded bour- geoisie, it was largely due to the US decid- ing not to dump him, or not knowing how. The Diederich book thus reveals a com- petition between Somoza and his bour- geois opponents to obtain US support, a competition fueled by mistrust of the changes proposed by the FSLN. Somoza again tried to claim the role of champion anti-communist, denouncing bourgeoisie complicity with the FSLN. This argument, Continued on page 52 CAPBBEAN "vIE6/35 Haitian Neo-Slavery in Santo Domingo Bitter Sugar Reviewed by Paul R. Latortue Sucre Amer. Esclaves Aujourd'hui dans les Caraibes, Maurice Lemoine. 292 pp. Nouvelle Socitek des Editions Encre, Paris, 1981. his book examines the Haitian mi- gration to the Dominican Republic. The details of the migration reveal a tragic picture of severe hardship for mi- grants and benefits for plantation owners (such as the Consejo Estatal de Azicar, Gulf and Western, the Vicini family and the various land owners in the Dominican mil- itary). Besides the plantation owners, vari- ous segments of the ruling elite in both Haiti and Santo Domingo directly benefit from the neo-slavery of the Haitian cutters, as does the Dominican population via large indirect benefits. Haitian migration to Santo Domingo dates as far back as 1915 when US invest- ment in sugar plantations increased sub- stantially in Santo Domingo and the Spanish-speaking Caribbean islands. This increased the demand for labor related to land clearing, planting, harvesting and re- fining of sugar cane. Of all these activities, the cutting of sugar cane is the most back- breaking. Few people are willing to under- take this task, unless forced to by serious hardship. Today, Haitian migration often takes place under the auspices of both the Haitian and Dominican governments. Since 1967, a contract has been signed every year be- tween the Duvalier government and the Dominican government to send 15,000 temporary Haitian migrant workers to cut cane planted on the land belonging to the Consejo Estatal de Azdcar. Attracted by the illusion of higher wages, and supposed government protection of workers in the Dominican Republic, Haitians have fought to enlist. Once in the Dominican Republic it be- comes quickly evident that expectations are Paul R. Latortue directs the Center for Busi- ness Research at the University of Puerto Rico, Rio Piedras. largely unfounded. Contrasting with the promise of $15 for a day of work, sugar cane workers hardly make a gross pay of $2.50 a day. They are paid by the weight of cane cut. But, unless the cane is quickly transported to the mill, it loses weight, dry- ing in the sun. The mill owners' transporta- tion policies are so arranged as to minimize labor costs. Another usual arrangement is the trick scale. Were it not for these unfair practices, the weight of the cane cut in a. day's work would double. All in all, the aver- age worker today makes about $20 biweekly. Years ago, even with a lower price per ton of sugar cane cut, it was possible to make from $30 to $40 biweekly. This dete- riorating income comes despite inflation and increases in taxes to finance social security and other benefits (running 20% of wages). Yet no services can be expected in return. A substantial amount of the taxes collected are sent to Duvalier's personal coffers. At work, the relation of the Haitian sugar cane worker to the Dominican crew leader is one of severe subordination. The crew leader is trained to force the cane cutters to reach higher productivity levels. He knows that it is hunger and the fear of starvation that make it possible to recruit Haitian cane cutters. "One could regret it, but the whole system, the entire economy, all the wealth of our country is based on it." When Haitians are found planting food crops on unused plantation land, crew leaders uproot these crops. The crew leaders know that if Haitian migrants eat better, they won't cut the sugar cane. French colonization of Haiti never dared to enforce such measures during slavery Housing for the cane cutters is provided in enclaves called "bateys," located not far from the plantation. Though both Haitians and poor Dominicans live in the bateys, there is segregation: Dominicans live in front, Haitians in back. Latrine facilities are segregated, one latrine per 200 persons. A Dominican prostitute will not go to bed with a Haitian cane worker, even when he is able to pay the going rate. Though most Haitian migrants to the Dominican Republic are males, some females have also arrived. Children born of Haitian couples in the Dominican Republic do not receive birth certificates. They are not allowed to become Dominican citizens out of fear of "darkening" the Dominican population. There thus exists a large com- munity without legal existence, giving way to all kinds of abuses and frauds, including electoral fraud by political men in power. Former President Joaquin Balaguer [1966-1978] seems to have known and profited from such practices. Yet the old-time Haitian "residents" in the Dominican Republic (the viejos) establish a distance between themselves and the newly arrived (the congos). When, how- ever, rapport is obtained, the viejos be- come for the congos an important source of advice. That rapport does not come about automatically. The congos feel that the viqjos often want to pass for Domini- cans (since they speak the language) in a vain attempt to escape the stigma attached to being Haitian. The viejos feel that the constant arrival of congos depress wages and create unemployment. All this pro- duces an environment where everyone is for himself, just for himself, for survival's sake, which, in the final analysis, worsens everyone's lot. The general Dominican community, rich and poor, looks down on the Haitians. Pre- conceived ideas about Haitians include prejudices such as: Haitians live like wild tribes in their communities and they bring sickness with them. Haitians are black; Dominicans even when they are black, often do not conceive of themselves as black. Dominicans of mixed blood prefer to say they are of Indian descent rather than admit the presence of negro blood. For the oligarchy, blacks are to be confined to the lower occupational groups. Note the circu- lar reasoning: The Haitians live in these conditions because they are negroes. They are negroes because they live in these con- ditions. Middle-class Dominicans often say they have never seen a well-dressed Haitian. When children do not behave well, they are told that Haitians boogeymenn) will take them away. Dominicans have never for- gotten that they were occupied militarily by the Haitians in the first part of the 19th cen- tury. The Dominican press still reminds its 36/CAIBBEAN revIew readers that Dominican independence was obtained from Haiti, not from Spain. The anti-Haitian feelings indeed have deep and complex roots. The Massacre Lemoine tells of the tragic massacre of Haitians by Trujillo in the 1930s. Up to 30,000 Haitians died in what is known as the "perejil" operation. Creole-speaking Haitians, even fluent in Spanish, seem to have difficulty in pronouncing correctly the word "perejil." Using this fact as a criterion for identifying Haitians, a general massacre was conducted by the Trujillo police. The Haitian government passively accepted a few thousand dollars for the damage inflicted. Today the police and the military are very much involved in the subjugation of the Haitian migrants to the Dominican Repub- lic. They play an important role not only in spying within the bateys, but also in pre- venting Haitians from leaving them. Hai- tians outside the bateys need to show their "cedula" (identity card) on demand to the police and justify their presence outside the batey. If not satisfied, the police take them back to a batey, anybatey, and back to the cutting of sugar cane. The police receive from landowners $200 for every detained Haitian whose physical strength promises hard work capabilities on labor-short plan- tations. Indeed, this practice is similar to that of a slave market, with the marketing often taking place within the prison walls and the transporting made on' military trucks. A so-called "incentive system" fixes a $0.50 additional reward per metric ton of cane cut, to be collected at departure time at the end of the harvest. This measure looks to ensure the migrants' return to Haiti. The "incentive system" is widely violated. I have seen workers with piles of coupons with no hope of collection. One wonders what kind of protection Haitian migrant workers receive from the Haitian embassy and its staff of 90 Haitian inspectors and supervisors who have been hired to oversee the fulfillment of the clauses of the Haitian government contract with the Consejo Estatal de Azucar. The answer is simple: they do not care. Em- bassy inspectors visit the bateys only once in a long while. Their role consists largely in convincing the workers that conditions are not so bad after all. They consider workers' complaints as fictions. The inspectors' sal- ary is paid by the Dominican government and they work in the interest of those who pay them. The Ambassador never visits the batey. His agents, however, are present to spy and report on unusual activities. Indeed, the presence of the Tonton Macoutes in the bateys of Santo Domingo is a certainty. Lemoine even cites the names of Tonton Macoutes, "tristemente celebres" in Port-au-Prince, stationed in Santo Domingo for the political control of Haitian migrants. Tonton Macoutes are welcome in the bateys to help control potential politi- cal rebellion. Duvalier wants no trouble with the Dominican Republic. Besides, he wants in his coffers the bribes offered to make the migration possible. Finally, he greatly needs the foreign exchange brought by the re- turning migrants. Reports out of Port-au- Prince claim that the 1981 summer oil bill could not have been paid without the foreign exchange brought by the cane cutters. Haitian cane cutters feel worse off, psy- chologically and humanly speaking, in the Dominican Republic than in Haiti. However, though not eating well, their diet in Santo Domingo has improved when compared to the one at home. Indeed for a daily meal of rice, beans and sardines (and chicken on Sundays, the Haitian migrants sustain the sugar cane production apparatus. Sugar and its by-products gave the Dominican Republic, in 1975,25% of its GNP 65% of its exports, and 40% of government revenues. It is in this sense that the entire Dominican population benefits from the Haitian mi- grant labor. Many Dominicans, though sympathetic to the Haitian cause, do not always see this. Without the foreign ex- change earned by sugar export today, con- sumption levels in the Dominican popula- tion at large would diminish in the absence of a better base for economic development The Dominican government knows this. This awareness brings two practical conse- quences: suspicion and persecution of Hai- tian exiles who approach the migrants, and an understanding with the Duvalier regime to supply the needed workers every year. In a nutshell, this means tacit support for Duvalier. In this sense, a more progressive government in Haiti would carry the need for a more progressive government in Santo Domingo also. Yet in the long run, this is an unstable situation. Many Haitians do not return home, creating what Balaguer labeled "la invasion pacifica" and the fear that Haitianization of the Dominican Re- public may take place over time. Jose Francisco Pefia G6mez, the most popular national leader in Santo Domingo today, is widely believed to be of Haitian descent. Perhaps this neo-slavery of sugar can be stopped sometime soon and a better base for economic and social development could be created on both sides of the bor- der. But this won't happen unless Haiti changes and/or political and economic awareness grows among the migrants. Signs of such an awakening exist. Con- sequently, former Dominican President An- tonio Guzmfn weighed the possibility of greater mechanization of thezafra and pro- gressive nationalization of the work force. The results, however, are not due any time soon. A CAIBBEAN PFVIEW/37 In Light's Dominion The Art of Rafael Soriano By Ricardo Pau-Llosa Since Turner, a number of artists have addressed themselves to the phe- nomenon of light as a discreet and essential visual structure. They have pon- dered the ways of making light as autono- mous and spatial as the masters of the chiaroscuro (Rembrandt, Leonardo, Car- avaggio) made shadow a distinct volume with its own rules, order, and character. Leonardo proclaimed that it was in shadow that bodies reveal their form. For painters like Cuban-born Rafael Soriano, and others who belong to what can be called oneiric luminism, it is through shadow that light reveals its form. The pioneer in this century of oneiric luminism is the great Chilean painter, Robert Matta. Within an ambiguous surrealist framework, Matta explored the ex- plosiveness, the life-like capriciousness of luminosity. Frequently in his work a me- chanical, humanoid figure emerges to sub- due or unleash the forces of energy that surround him. This figure can be seen as the symbolic presence of the artist wielding the full range of his rational and irrational powers to orchestrate the forces of life into the images of art. But Matta's intensity often falls into superficiality and repetition. His work is, at its best, highly dramatic. In con- Ricardo Pau-Uosa teaches Latin American Art at Florida International University. trast, Soriano penetrates and preserves the full range of mysteries implicit in the essen- tial structure of light. Soriano is a con- templative painter, a thinker in pure light and shadow. What Matta narrates (the forces of light being turned into the order of art), Soriano reveals and achieves, and does so with total legitimacy: there is not a single resolution of space, a single form or texture which is repeated. Each painting is the result of what Soriano calls a "dialogue" between the ma- terial at hand and himself. It is a slow, ar- duous process, but the dialogue is achieved, recovered after each layer of oil dries on the canvas, and re-initiated. What structures bind his work, what patterns in his paintings emerge to define some sense of a style, are ignored by the artist who in- sists that each painting is a spontaneous offspring of his soul. Soriano, who for years (in Cuba and up to the late 60s in the US) painted hard-edged, geometrical abstrac- tions, says that he no longer premeditatess" his paintings as he did in his previous, ana- lytical work. There is never a drawing or a study of a painting realized in premonition of the work. As the now principal figure in Latin Amer- ican oneiric luminism, Soriano is inter- ested, primarily, in allowing the forms of light "to come," to enter the realm of con- scious being. Light in his work achieves a spatiality, a will, and a dimension which art usually bestows on objects or on the ex- pressive signatures and textures of pure ab- straction. Soriano's art rests between two poles, the world of referentiality in which art points to and is the icon of things in our common reality, and the subjective world in which the splatters and tears of color some- how speak the undecipherable language of the creator's soul. In Soriano, the world is not iconically represented, neither is it ban- ished by the artist's self breaking out into expression. His work is the fulcrum between inner and outer realms, the balancing point of the contemplative dream. In his particu- lar vision of the oneiric, it is light as autono- mous entity that dreams, sheds, forges the boundaries between the luminous and the obscure. Light dreams the world of forms in the same way that, in the natural world, it brings to us colors and distances. The im- pressionists' attention to light's power to fuse particulars into chromatic wholes, the principal vehicle of which is the distance between subject and object (between viewer and painted texture), is here inverted. The fusion is given; intimacy and not dis- tance is the aim. Soriano achieves a precise inversion of impressionist distance: his paintings absorb us, and are explicitly about the fusions and subtleties of a visual life in a "Luci6rnaga en la Noche" (Firefly in the Night), 50" x 60", oil/canvas. "Paisaje Errante" (Errant Landscape), oil/canvas, 33" x 47". 38/CAIBBEAN PIF~W world whose only respite from relativity and flux is the constancy of light's velocity and nature. The immediacy and spontaneity of Soriano's work, and of the creative process they involve, have made him unaware of stylistic structures which are evident in his paintings. One example is the predomi- nance of horizontal forms in paintings dominated by blue. These forms present themselves in a more heightened sense of flux than those in his earth-tone paintings. The tension between luminous and opaque spaces are also more intense in his blue paintings. Earth tones predominate in paintings where echoes of torsos emerge. Biomorphic forms, frequently in vertical at- titudes, come forth from the mineral fog of a landscape made of radiant gas. They dwell at the precise point of identity, at the point in which they are human shapes but are still one with the surrounding textures and shades. These are paintings of stasis, of timelessness. Cellular forms also emerge as knots of volumes interlocking in an ecto- plasmic embrace, and these mostly in his blue paintings. Throughout his work, vol- umes of light emerge independently of the nebulous referents which inhabit the canvases. Luminosity in Soriano takes on its own life, enters into and dissolves itself at will own work the constructivist and kineticist interest in light as absolute space or abso- lute movement. Only in Soriano does light dream the human dream. Only in Soriano is light more a part of us because it reveals itself as independent from us. As thaumaturgist he has forged light's domin- ion, and the mysteries of that realm are ours. A Artist Rafael Soriano. through the spaces and contours of a barely recognizable common reality. He has inher- ited and greatly expanded the tradition of luminism in Latin American art, a tradition which emerges not only in Matta's surreal- ism, but in the expressive, archetypal imag- ery of the Argentine Victor Chab, in the vibrant colors of the Brazilian Manabu Mabe, in the transparencies of Carlos En- riquez and the architectural purity of Emilio Sanchez, both Cubans, in the organic vol- umes of the Guatemalan Elmar Rojas and the Chilean Mario Toral, and in the atem- poral presence of the Mexican Rufino Tam- ayo's imagery. He has transcended in his "El Abanico" (The Fan), 50" x 60", oil/ canvas. "Sombra del Aire" (Shadow of the Air), 30" x 40", oil/canvas. "La Imagen del Suefo" (Image of the Dream), 30" x 50", oil/canvas. CAr BBEAN EV1W/39 Elections... Continued from page 7 the National Liberation Party (PLN) and the Unity Party (PU). The PLN's Luis Alberto Monge notched a broad victory over the PU of former President Rodrigo Carazo and its candidate, 32-year-old Rafael Angel Cal- der6n de la Guardia, who is expected to make another run on the presidency in 1986. Former conservative President Mario Echandi and three other candidates, in- cluding a communist, together eamed less than 5% of the vote in Central America's most stable democracy. One of Monge's first acts in office was to travel to Washington to appeal to the Rea- gan administration for increased economic aid to his nation, bankrupt after years of low export prices and wild government spend- ing on social programs that gave Costa Rica the best educated, least poor and healthiest rural population in the region. Reagan chat- ted with Monge and quickly put him to work on the US Congress, lobbying for passage of the Caribbean Basin Initiative that could send his country as much as $50 million. Part of the US aid was expected to be for public security programs, a proposal that has drawn severe criticism in Costa Rica, which disbanded its army in the 1940s. US officials and some Costa Ricans have ar- gued that the nation must have some sort of military capabilities if it is to defend its trou- bled northern border with leftist-ruled Nic- aragua. Other local officials, however, remember the total chaos wrought by the collapse of the economy in the final year of the Carazo administration, and wonder whether, if Costa Rica had an army, the na- tion might now find itself under a military government. The Netherlands Antilles Perhaps the election most ignored of the nine came June 25 in the Netherlands An- tilles, the six-island Dutch colony in the Car- ibbean. There former premier Don Martina's party won six of 22 seats in the Staten or parliament, enough to form an- other shaky coalition government. Martina had served as interim premier following the collapse of his minority government in Jan- uary. Second largest bloc of votes went to an.Aruba separatist party headed by Betico Croes which won five. Observers saw the outcome as strengthening Aruba's case to separate itself from the central government in Curacao, either as a distinct colony or by becoming independent. Colombia Belisario Betancur, 59, the perpetual under- dog of Colombia's relatively weak Conser- vative Party, is this country's next president. He is the first conservative president to take office independently in 30 years. Other con- -7 A.-l 4Ww ---- ------ i T" I Miguel de la Madrid, president-elect of Mexico; Jos6 Francisco Peria G6mez, newly-elected mayor of Santo Domingo; Luis Alberto Monge, recently-elected president of Costa Rica. servative presidents took office as a result of a political agreement to alternate the presi- dency between the Liberal and Conserva- tive Parties. Betancur is not a typical Colombian president. He makes no bones about his humble childhood as one of 22 children, the first in his family to wear shoes. He prides himself on being an intellectual, and yet stresses his early education in a one-room, one-teacher rural schoolhouse in Amaga, Antioquia, a region noted for its hard-workers and fertile families. Betancur had already lost the presidency three times to Liberal challengers when he decided to take on former president Alfonso L6pez Michelsen under the slogan, "Yes, we can." Colombians-who poured out in record numbers on Sunday, May 30th-voted for change against a system on the verge of ossification, a system which had almost ceased to offer choices. Perhaps they were encouraged by the presence of a young Liberal dissident, Luis Carlos Galan, who in an unprecedented move decided to stick out his candidacy to the end. Galan had frankly admitted that the principle motive for his continued can- dicacy on a New Liberalism ticket was his desire to prevent the election of L6pez Michelsen, whom he characterized as "one of the worst" presidents to govern 20th cen- tury Colombia. He succeeded; his 700,000 votes added to L6pez's 2,500,000 would have meant an easy L6pez victory, and the entrenchment of the Liberal Party in power. The traditional Liberal Party here represents the old oligarchy, financial interests, and to a lesser extent, the blatantly new rich who have made their fortunes from drugs and other aspects of the underground econ- omy. The Conservative Party-even in its underdog role-represents somewhat the same interests. But Betancur cultivated carefully the image of a populist, grassroots, national unity candidate. He dedicated his victory speech to the poor. "I address myself, above all, to the poor people of this country," he said in his low-key and conciliatory victory speech. "I was once one of them, and 1 have not for- gotten the lessons of that painful situation. I will work tirelessly, night and day, to better their fate." Betancur's election Sunday showed that the democratic system here, despite all its flaws, can still work on the electoral level. While L6pez's sophisticated political ma- chinery often borders on corruption, Betan- cur had the image of a clean candidate. Colombians who like to bad-mouth their 40/CA,?BBcAN REVIEW Ex-presidents of the Dominican Republic Joaquin Balaguer and Juan Bosch and newly-elected Dominican President Salvador Jorge Blanco. system often repeated the following joke: "People will vote for Molina [a leftist coali- tion candidate] in their heads, for Galan in their hearts, for Belisario [Betancur] on the ballot, and L6pez will win." The fact that L6pez did not win is a reminder to the disen- chanted that the Colombian system is flexi- ble. While some vote-buying and other forms of electoral persuasion existed, they apparently were not enough to influence the election results. Betancur's victory in- stilled a breath of life into the Colombian political process. In addition to the surpris- ing victory of the Conservative Party, the anticipation of a new Galan candidacy in 1986 has given momentum to the ailing system. The Conservatives themselves are quick to emphasize the elements of change. In a glowing, front-page editorial, written in nearly-liturgical language, the Bototi con- servative daily El Siglo beamed, "We now know that hope has triumphed, it is a great change, the most immediate thing is the change in the country's spirits. It makes one want to shout. Lift up your hearts, because there is hope." But not all are so optimistic. "The car is the same and today, a new chauffeur is being chosen," warned leading El Tiempo columnist Daniel Samper. "Changing the conductor of the orchestra, while the same musicians go on playing more or less the same tune, is not an au- thentic alternative." Betancur will have to prove to the people who voted for him that he is indeed capable of playing a different tune. He spoke to peo- ple's basic needs, offering such things as free university for those with a high school education and low-cost housing without down payments. But how he will be able to live up to his image of change will depend to a large extent on the people who surround him. Betancur's candidacy was supported by two very divergent branches of the Con- servative Party, the moderate wing headed by Misael Pastrana, and the hard-line, to the right of Ronald Reagan, wing headed by Alvaro G6mez. People bargaining for something new may find they get new wine in old bottles. This may increase discontent with the electoral system, a pattem of grow- ing frustration which the recent elections seemed to overturn. Betancur will also have to deal with the army, which opposes the broad amnesty which he has advocated. He will also find himself without an absolute majority in the congress, although the executive branch is the most powerful one in Colombia. And despite his four candidacies, it is still un- clear as to just what sort of president he will be. His two clear priorities are peace and economic development. His low-key style will probably win him bargaining power with his own as well as opposition parties. What is left after a failure of Betancur to provide change is likely to be deep-seated apathy towards the political process or a call to arms. While Colombia has a long guer- rilla tradition, its democratic system is even longer and more deep-seated. The growth of the April 19th Movement (M-19) is proba- bly the first time in Colombian history that guerrillas have gained support in poor neighborhoods, as well as in the univer- sities. The guerrillas held a press con- ference to state their plans to disrupt the elections. However, their plans were aborted when a small Renault (used to transport materials with which to blow up the coun- try's largest television communications an- tenna which transmits television signals countrywide) exploded in a gas station out- side of Bogota. The eight guerrillas cap- tured-many of them seriously injured- were all university students. The failure of the guerrillas to disrupt both the presiden- tial elections and the March primary elec- tions does not mean their power has diminished. If peace cannot be made and economic solutions be found for social un- rest, Colombia is likely to be facing a politi- cal crisis within five to ten years. Thus, Betancur's election and his administration are likely to be seen as a test of the flexibility of the political system both for the people and the politicians. Perhaps the most remarkable thing about the recent elections--apart from the fact that there were so many of them in a region viewed from the outside as one of military dictatorships and palace coups-is the voter turnout. It once again demon- strated that Latin Americans will go to ex- tremes to exercise their right to vote if they are given a glimmer of hope that it will count for something. The Dominican Republic and El Salvador provide contrasting and dramatic examples. In El Salvador, voters walked miles and braved bullets to cast their ballots in record numbers for a constituent assembly. In the Dominican Republic, in- creasingly a democratic showcase for the Caribbean, voters waited in line for as much as eight hours under a broiling sun and occasional rainstorms. Even in Mexico, where the outcome is a foregone conclu- sion, an estimated 77% of the eligible voters turned out for presidential elections July 4. By contrast, a 50 to 60% turnout of the US electorate for a presidential election is con- sidered good by today's standards. The dif- ference, perhaps, is that other peoples of the hemisphere cherish their right to vote more because democracy in many cases is still a unique experiment and voting is a responsibility taken seriously. A CAIBBEAN PEVIEW/41 Islands... Continued from page 11 Soledad, the declaration by Spain in 1766 that the islands formed a dependency of the Captaincy-General of BuenosAires, andthe appointment of a governor for the islands in the same year are evidence of corpus oc- cupandi on the part of Spain. It ought to be emphasized that these acts constituted the first concrete steps taken by Spain to con- vert any title it claimed to the islands into legal reality. Almost simultaneously the British, too, were undertaking acts evidencing corpus occupandi on their part through their es- tablishment of a garrison at Port Egmont. In chronological terms the British arrival at Port Egmont preceded Spain's possession of Puerto Soledad by fourteen months. The expulsion of the British garrison from Port Egmont in 1770 and its subsequent resto- ration by Spain to Britain the following year, although avowedly without prejudice to the question of sovereignty over the islands can only be interpreted as an acknowledgment by Spain of Britain's claim to the islands. The disclaimer on sovereignty meant only that Spain did not acquiesce in Britain's claim. The reservation by Spain could not ipso facto vacate the claim of Britain; on the other hand, restoring to Britain its settle- ment in the Falklands acknowledged at the very least that Britain had a claim. Britain's subsequent withdrawal from Port Egmont in 1774 must be seen in this light. Having received acknowledgment of its claim from Spain it left behind evidence that it was not relinquishing this very claim. Furthermore, the voyage of Captain Cook and his discovery and claiming of South Georgia and the South Sandwich Islands the following year was evidence that in with- drawing from Port Egmont Britain was not abandoning its interests in the south Atlantic. The general conclusion that may be drawn from these facts is that Spain claimed and exercised sovereign acts over the Falklands until it withdrew its governor in 1806. Britain, too, was in "effective oc- cupation" of a part of the islands till 1774 and it had received acknowledgment of its claim from Spain. Thus, when Spain com- pleted its withdrawal from the Falklands in 1811 the only claimant left at that time was Great Britain. Much has been made of Brit- ain's withdrawal with suggestions that such a withdrawal implied an abandonment of its claim. It is important, however, to view the action in its context. After the Spanish set- tlement with France in 1767 only two claim- ants to the Falklands remained; and one, Britain, received concrete acknowledgment of its claim from the other, Spain. Having voluntarily thus acknowledged Britain's claim Spain would in law be precluded from denying it subsequently. Interestingly, there appears to be another point in Britain's favor specifically in its dis- pute with Argentina. Argentina has based its belated claim to the dependencies of South Georgia and the South Sandwich Islands on the notions of proximity and on their puta- tive territorial unity with the Falklands. With respect to Argentina, then, it would be per- missible to argue that British intentions and actions with respect to the dependencies also encompassed the Falklands them- selves. If Argentina claims that the depen- dencies are integrally parts of the Falkland Islands in a territorial and legal sense then it is not unfair to extend to the Falklands the animus and corpus occupandi displayed towards South Georgia and the South Sandwich Islands by Britain in 1775 and thereafter. One party could not legally be permitted to gain from an alleged "fact" without allowing to the other party whatever advantage may flow from the same "fact." The link between whatever rights Spain may have possessed in the Falklands and Argentina's claim to the islands is the suc- cession that Argentina claims for itself. No treaty with Spain declares that Argentina "universally" succeeded to the Viceroyalty of the River Plate. In fact, Argentina did not so succeed because the Viceroyalty broke up into four new states, Argentina, Bolivia, Paraguay and Uruguay. Furthermore, after the uprising of 1810 Spanish interests were maintained, as far as was possible, by the governor at Montevideo. It may even be argued that Argentina attempted to suc- ceed universally to Spain by seeking to as- sert its control over all the territories of the Viceroyalty but failed to do so. Clearly, there can be no obvious presumption of Argen- tine succession to Spain in the territories of the former Viceroyalty. In addition, Spain withdrew its official presence from the Falklands in 1806 and completed the final withdrawal of all its per- sonnel by 1811. Subsequently, it made no further claim to the Falklands. Thus, it ap- pears that Spain's withdrawal in 1806, at least by construction, was a final abandon- ment of the islands. It was not until 1816 that the United Provinces of the Rio de la Plata formally declared independence from Spain. In the same year it claimed sov- ereignty over the Malvinas. It appears, then, that a critical 10-year hiatus existed be- tween Spain's withdrawal of 1806 and the establishment of the precursor to modern Argentina. Indeed, Spain's withdrawal oc- curred some years prior to the Buenos Aires uprising of 1810. The actions of the Buenos Aires au- thorities towards the Falklands between 1816 and 1832 certainly qualify as display of animus and corpus occupandi. The designation of a governor in 1823, the granting of concessions to Pacheco and Vernet in 1823 and 1828, the creation of a Political and Military Commandancy of the Malvinas in 1829 and the appointment of Vernet as Commandant the same year all clearly contribute towards the establish- ment of "effective occupation." On the other hand, it must be noted that strong British protests were lodged some months after the establishment of the Comman- dancy of the Malvinas. The challenge to Argentine claims was not exclusively British. The United States, which had long-standing sealing interests in the South Atlantic, regarded the Falk- lands at this time (1830-31) as terra nul- lius, that is under the sovereignty of no nation, and rejected the attempts made by Vernet to regulate US ships in Falklands waters. The British ultimately returned to Port Egmont in 1832 and forced the surrender of the Argentine garrison at Puerto Soledad in January 1833. Since then the British have continuously and peacefully exercised all the rights of sovereignty in the Falklands until they were temporarily dislodged by the Argentine action of April 2, 1982. The Falk- lands dependencies of South Georgia and the South Sandwich Islands have been un- ambiguously British since the last quarter of the eighteenth century. Argentina's re- cent claims to these islands receive support neither from their history nor from interna- tional law as it used to be in the eighteenth century and thereafter to the present. The Falklands themselves have had a very different history, being claimed at vari- ous times by Spain, France, Britain and Argentina. Argentina's claim to the Falk- lands depends upon its putative succession to Spain in the territory of the Viceroyalty of the River Plate. Even if such a succession can be proven-it has been argued above to be very doubtful-Argentina could still only succeed to rights that Spain itself pos- sessed at the time of succession. The fact that Spain withdrew from the Falklands be- fore the formation of the United Provinces of the Rio de la Plata creates an awkward gap for Argentina's case. We know that at least in the view of the United States the Falklands were terra nullius in the period 1830-31. The sovereignty issue of the Falk- lands was finally resolved by Britain, which supported its claim with adequate force. A point should be made to place the Brit- ish use of force of 1833 in its temporal and legal setting. Nineteenth century political and legal theory viewed the state as being absolutely sovereign, including within its authority the absolute right to use force that is without any international accountability. Since the Great War of 1914-1918 however, numerous efforts have been mounted to restrict the use of force by states. The most important of these efforts is the UN Charter, according to which the use of force is re- stricted to self-defense and collective mea- 42/CAIBBEAN PevFJE I I sures decided upon by the Security Council. Just as any constitution, the Char- ter defines norms; equally, it too cannot guarantee that its norms will be observed in all cases. It is important to draw attention to the changes that have occurred in the past 150 years in international norms-rules of state behavior-and to the necessity of evalu- ating state actions by their contemporary norms. Consequently, British actions of 1833 must be evaluated by the standards of the time, and Argentina's recent seizure of the Falklands by current standards. While such a procedure may appear to treat the use of force by the two parties unequally, it must not be forgotten that the intervening 150 years have made war not only far more costly in human and economic terms but that since 1945 the survival of mankind itself has come to be jeopardized by war. This consideration by itself would be suffici- ent reason to treat modern wars and other uses of force differently from those of pre- vious ages. A Permanent Solution What are the conditions under which a per- manent settlement of the dispute may be possible? The most obvious condition is a normal peaceful setting in which a perma- nent settlement can be negotiated. The loss of life on both sides requires a decent inter- val before the national positions and inter- ests in whose name those losses were incurred can be adjusted and bargained through diplomatic negotiations. The same consideration applies to the loss of materiel and other economic costs. National pas- sions, aroused by the hostilities and fanned by politicians, the news media and other less-than-disinterested elements of the two states, will also need time to cool off before the respective representatives can confi- dently resume negotiations. A permanent settlement of the Falklands dispute may also have to be postponed until the cadres of leaders involved with the re- cent hostilities are replaced by others not shackled to positions and statements adopted during the military conflict. Such a process of replacement already appears to be underway in Argentina; in Britain it may occur only at the next general election if the Conservative Party either loses or replaces Mrs. Thatcher as its leader. Clearly, there will also have to be under- taken national efforts directed at refor- mulating public opinion in both states so that a compromise, once it has been worked out, is not scuttled by dema- goguery. If a settlement is worked out it will most likely be one that will be implemented in phases rather than abruptly. It will, further, have to recognize the geographical, politi- cal and economic realities of the time. Fore- most among these factors appear to be two, the relative proximity of the Falklands to Argentina and the high level of nationalistic sentiment in Argentina over the Falklands. While Britain has certainly demonstrated that it can mount a successful military cam- paign many thousand miles away against high odds the long term prospects of a tense and draining position still appear to be against Britain. The interests of the islands' residents, the so-called "kelpers," may in fact be more negotiable than Mrs. Thatcher and the Falk- land Islands lobby in London have been willing to admit. Interestingly, while the re- cent hostilities appear to have stiffened the will to "keep the Falkland Islands British" in the short run, the absurdity of having a gar- rison of 3,000 or more soldiers to protect less than 2,000 persons 8,000 miles from Britain is likely to sink in over the longer run. Here, too, a settlement that is effected in phases over a long period of time, say, a generation or longer, will have a far better chance of accommodating the islanders' interest than one completed in a shorter period. A UN trusteeship or other interna- tional plan that provides for a gradual with- drawal by Britain and its subjects and a corresponding gradual introduction of Ar- gentina into decision-making and control over the Falklands thus seems most likely to succeed. The "internationalization" of the dispute will, most likely, have to be matched by a widening of the range of interests included in any permanent settlement. Because the resolution of the Falklands question has se- rious ramifications in Antarctica and for transit through the Drake Passage as- surances of the maintenance of the inter- ests of the parties, particularly Britain, in these areas will probably be necessary. The recent arrangements between the Antarctic Treaty parties on the marine and mineral resources of that continent and its waters are steps in that direction. The satisfaction of these conditions will necessitate the emergence of pragmatic, rather than dogmatic, leaders on both sides. While the recent hostilities may have made it more difficult for the above condi- tions to develop it must be recognized that factors which would encourage their devel- opment are also immanent in the present situation. The stark possibility of recurring hostilities with all the attendant dangers and costs is perhaps, foremost among such factors. A CAl?BBEAN fEVIEW/43 Chagito .. Continued from page 13 his abuelo told him to go upstairs and eat. He had prepared a delicious black bean soup, and good bread with butter. At least, meals with his abuelo were regular and Chagito never cooked for himself, like he used to when his mother came from work then suddenly went back out to look for his father, who was out somewhere "messing around" as she would always say. He ate lunch while watching TV (it was on all day and late into the night). He sat on the big sofa which opened up at night into his bed. He was somewhat attentive in front of the machine, then slowly, after that heavy meal, he slid into sleep, the words of a TV program about rising unemployment and unraveling family life falling onto his ears... "i Chagitol" The voice was loud and woke the boy up. At first he had confused it with the sounds from the TV, but-no-it was his abuelo. He shook his head and got up quickly. Halfway down, there again came that voice. It pulled at him. Grabbed him. "Te he estado buscando en los ultimos cinco minutes. eEstabas arriba durmiendo? i/A bendito! iTi, tan vago como siempre! "But abuelo, I'm tired." "iQue?" his abuelo said. "Tired? Ju es mush too jung to be tired. iMjo hay trabajo pa'hacer! Sabes eso, uerdad? What ju do upstairs, sleep? When you become old man ju sleep. Now, ju work" "But when can I go out?" asked Chagito, his voice edged with refusal. "It's already the aftemoon and I haven't been out once to play with my friends." His abuelo looked at him. "Mas tarde. Florida International University now offers a Master of Arts program in Economics with an emphasis in International economic develop- ment. The program, consisting of 30 semester hours with the option of a thesis or a research paper, is designed to be completed in one year. For information please contact: Dr. Jorge Salazar Department of Economics Florida International University Miami, Florida 33199 (305) 554-2316 Puedes ir ajugar con tus amigos mis tarde, okay?" he said. ",Ju help me now?" "Leche" said a voice then, "iHay leche en poloo" A lady from just up the street wanting leche en polvo. "Leche," she re- peated to his abuelo. "iHay leche en polvo?" Chagito looked at her from his position next to the counter. "iLeche? Si, hay en el almacen. Cha- gito, bdscame una caja de atrds," the old man commanded. He went into the back- room, a confused, crowded area of full boxes, half-full boxes, empty boxes, a bro- ken chair, a broken fan, empty and full soda bottles, plastic cartons, loaves of bread that had molded, insecticide, old curtain rods, a torn cushion, the steering wheel of the Chevy his abuelo once owned. Leche en polvo, sought the leader of the Spanish forces against the English. 1 wish I never came here, thought Cha- gito, pulling at the firmly adhered lid of the carton; I should have run away. Once, when there was so much trouble at home, he had tried to run away and took the IRT as far as 149th Street before he was stopped in his progression downtown by a subway patrol- man. Chagito had gotten off the train and the huge labyrinth filled with roaring noises and disinterested people had brought forth his tears. He only wanted to get to Staten Island, where he'd gone once before with a teacher...but the policeman noticed the ripped paper bag with clothes falling out; he noticed the hungry, sad little boy. If I run away again, he thought, I won't cry and no one will stop me. I'll have my things in a suitcase, and write a note with permission that I'll say is from my mother-like before, when she had signed the slip and gave Cha- gito money to go to Staten Island. He ripped open the box. "Work," he mut- tered angrily to himself, as he walked with the carton of Carnation powdered milk to the front of the store. His abuelo wanted to discuss the unpaid account with the lady but there had been a killing over some money up the street and that was more important. Chagito himself wondered what else the cranky old man would find for him to do. What a way to spend the summer! He couldn't leave with- out first asking permission; he wasn't free anymore to roam around like he'd done in the Bronx, which was an awful place to raise children, his abuelo told his daughter when she had tearfully called to tell him about the mess her life was in. He wished he was in the Bronx though-he could play stickball and didn't have to work. Ugh, boxes to unpack, shelves to clean, windows to wash, floors to sweep. No free time. If he lounged around, his abuelo's voice would break into that serenity. "iLimpiaste los anaqueles?" he would ask. "iYya barriste el piso?" Dense foliage opened up and a cacaphony of men's voices were heard as they walked through the jungle. "The re- sistance is too strong! We'll never capture the island!" said the Colonel. General Romero looked at him through that weary face, "We must plan our attack carefully now that we have support from the people." "But there's a Navy cruiser out there de- fending the port," he said. The General answered bravely, "I'll de- stroy it. Plant a mine." "But you can't, the ship is guarded carefully..." The General stopped and turned to look squarely into the officer's face; behind them the long line of troops also halted. "Don't tell me what I can do, Colonel," he said firmly, "If we have to destroy the ship to protect our troops then...then I'll take two men tonight and plant a mine. Mark my words tomorrow there won't be a ship sitting out there." He spoke loudly, "We'll free this Island. I will never surrender!" And those men around him nodded in agreement. Already five had volunteered. At the mountain camp a raft was quickly assembled, and a Russian ZX6 magnetic mine readied for the trip down the moun- tain roads to the shore. The men had all urged the General not to go, but he wanted to destroy the ship himself. "I've got this far and tomorrow I'll take us further. Closer to liberation." He stood up from the circle of sitting, squatting men. "We must destroy the invaders from the North!" he cried. "It's a dangerous mission, General," said the Colonel. "Danger is what we always face now," he replied curtly. "When people want to be free they must fight!" His band of soldiers looked at him with great concern, because of the immensity of the task. "Let's go. We begin our march to liberation," he turned and waved as his small auxiliary group car- rying the raft and weapons filed slowly along with him away toward the dark, dis- tant Atlantic coast... "Chagito!" He was handed a rag and told to dust the bottom shelves, where the Clorox and Tide were. It was late noon already, and still his abuelo deliberated. At around three, Cha- gito finally pursed his lips and muttered it was late and he'd never get out to see his friends, who'd already come twice to find out when he would finish. His abuelo sud- denly flashed a smile looking down and seeing in his grandson's eyes an image very much like himself when he was young. He tousled Chagito's hair, "Okay, ju work hard today. Regresa a las siete para cenar," he said softly, realizing he had worked hard. Chagito breathed a sigh of high relief; then with a big smile on his face, Giieybana-the Brave, the Valiant-; El Comiandante; The General, went out to play in the visionary and fraternal world of childhood. 44/CAIBBEAN IPEIvW Cancuin... Continued from page 17 ing world-and the present status of poverty, illiteracy, and hunger-had been presented to the industrialized nations of the North, and the sense that the burden was now on the developed nations to return with programs and proposals. Lacking any real lever, the better option for the nations of the South was to wait-at least a few months-and see. The three Latin American nations that attended the conference in Cancuin-Mex- ico, Venezuela and Brazil-are also the most developed in the region. Although the positions of all three reflected the major concerns of the developing nations of the region, in fact, the interest of all three "newly industrializing countries" is substantially different from the rest of Latin America and the Caribbean. As oil producing states, both Mexico and Venezuela have a resource that makes them more solvent-and potentially more vulnerable-than most of their neigh- bors. Mexico and Brazil have incurred sub- stantial debt because of record levels of economic growth. In 1981, Mexico's in- debtedness, both public and private, totaled $70 billion and is expected to reach $80 billion in 1982; comparing those figures to those projected by Brazil, Mexico's debt will surpass that of Brazil, thereby making Mex- ico's level of debt the highest in the develop- ing world. This ability to borrow, however, also has made all three nations the fastest developing nations in the region. Mexico's growth (which will be 8-10% next year) con- trasts favorably even with the growth rates in industrialized countries. All three Latin American representatives argued fervently at Cancun, for greater reg- ulation of international trade to stabilize commodity prices (in contrast to an equally strongly-stated US position to encourage international free trade). Unregulated inter- national trade is not necessarily beneficial to the developing world-particularly Latin America. Because of their relatively low lev- els of industrialization, these nations (es- pecially the island economies of the Caribbean) rely on primary products which fluctuate enormously in price, and render their economies vulnerable to the fluctua- tions of the international market. One of the principal demands the developing nations brought to Canc6n, was a request for a reg- ulation of commodity prices. Kurt Wald- heim, former United Nations secretary- general (who attended as a guest), argued that the need to stabilize world commodity prices was one of the four most pressing problems in the developing world. For most of Latin America, GATT (Gen- eral Agreement on Trade and Tariff) is not attractive; Mexico and Venezuela, for exam- ple are not members. Indeed, Mexico's prin- cipal trade representative to the US argues that the trade principles embodied in GATT are out of date and that the General System of Preferences is a better approach. At Can- cun, Mexico made its views on GATT very clear. As did Venezuela. For different rea- sons, Brazil argued the same point on trade policies in Cancun. Brazil's Foreign Minister spoke at the conference on this issue un- abashedly: "One cannot predicate the ob- jective of economic and social develop- ment-even in those countries where economic policies encourage the inflow of risk capital-on activities which are by defi- nition profit-oriented and which might not be available when needed." The trade pol- icies, that the developed countries support, are "discriminatory," he argued, "they hamper the import capacity of some countries." Unlike monetary reform issues, on which compromise solutions are being examined, trade appears to be an issue on which the rich and the poor have locked horns. The United States is calling for increased open trade policies with an emphasis on GATT US trade policy, formulated in large by William E. Brock, United States Trade Rep- resentative, has different and apparently in- compatible priorities. "Internationally," Brock has stated, "we will pursue policies aimed at the achievement of open trade and the reduction of trade distortions." In- vestment incentives widely adopted by de- veloping countries which are trade related can have serious side-effects, he argued. It was this policy that the US carried to Can- cin. This new trade emphasis by developed countries--and opposition to it by develop- ing countries especially in Latin America- has led to what appears to be a stalemate on the issues of trade. "Market mechanisms cannot be considered in abstraction of trade, economic and political realities," Bra- Scholarly multidisciplinary journal devoted entirely to Cuba zil's foreign minister argued. Frustrated by the apparent deadlock, he concluded, "the debate has slipped between those who are in principal concerned with development and those concerned with reactivating the world economy." In mild language which represented the common denominator of the varied points of view represented at the conference, the conference co-chairmen presented the conference summary on October 23. Al- though the United States had clearly dis- agreed on the desire to set a timetable-or even to agree on the format-of future global negotiations, the summary ex- pressed the desire of the participants to launch future talks at the United Nations. Analyses of current international eco- nomic dilemmas have focused on several issues: the economic self-interest of the North; the mutual interests of both devel- oped and developing nations; the dangers of balance of payment shortfalls and eco- nomic and political collapse in the poorest developing countries; and finally, the use of debt and trade imbalances as a political threat. While the economic self-interest of the North remains a fact of modern life, the picture, however, has shifted since World War II, due to increased transfers of technol- ogy, shifts of wealth to oil exporting nations in the developing world and the increased levels of industrialization and growth in many of these states so that todaythe South is not just a retail outlet for the North but a supplier as well. The dangers of a crisis resulting from overwhelming balance of payment deficits, sky-rocketing debt servicing costs, and food shortages suggest that the well-being of the North is tied to the fate of the South. For if a developing nation defaults, or worse, declares itself bankrupt-economic and political turmoil will result, the nation CUBAN STUDIES Cuban Studies/Estudios Cubanos is published twice a year by the University of Pittsburgh's Center for Latin American Studies. Each issue includes articles relevant to contemporary themes, with summaries in Spanish and English, plus book reviews, a classified bibliography of recent publications, an inventory of current research, and an author index. The most recent issues feature: Literature In Revolutionary Cuba (January 1981) The Cuban Exodus: A Symposium (July 1981/ January 1982) Prerevolutionary Cuban Society (July 1982) Annual subscriptions: $8 for individuals and $16 for institutions Back issues: $4.50 for individuals and $8.50 for institutions University of Pittsburgh Center for Latin American Studies 4E04 Forbes Quadrangle Pittsburgh, Pennsylvania 15260 Prepayment requested; please make checks payable to: University of Pittsburgh. CA]BBEAN PVIEW/45 Revista/ Review Inter- americana ISSN 0360-7917 Multidisciplinary Bilingual (Spanish-English) Quarterly of Interamerican Interest Now entering its 9th year of publication, with articles for both the general reader and the specialist in Puerto Rican, Caribbean and Latin American affairs. Articles on linguistics, literature, history, education, anthropology, political affairs and economics. Plus poetry, short stories and book reviews. Special themes have included Education in Puerto Rico, U.S. Foreign Policy in Latin America, Sociolinguistics and Bilingualism, Race Relations in the Americas, Population, Women in Latin America, Caribbean Literature, the Bicentennial and the Caribbean, Modernization in the Caribbean, Caribbean Dictators, Cuba in the 20th Century.. .etc. Forthcoming issues include Tainos, Migration, Religion, Women Poets, and others. Authors have included such recognized authorities as Margaret Mead, Erich Fromm, Eric Williams, Magnus Morer, Joshua Fishman, J.L. Dillard, Aurelio Ti6, Washington Llorens, Bernard Lowy, Selden Rodman, Herbert J. Muller, Eugene Wigner, T. Dale Stewart, John Bartlow Martin, Henry Wells, George Lamming, Piri Thomas, and others. Published Four Times A Year Spring, Summer, Fall and Winter Institutions: $16.00 per year Individuals: $10.00/yr; $16.00/2 yrs. Inter American University Press G.P.O. Box 3255, San Juan, Puerto Rico 00936 may collapse, and finally, the North has to pay; clearly both sides are seriously hurt in the process. This scenario has a basis in the present-day monetary and financial reality: it is one of the premises on which the North and the South agreed to meet at Cancun. To date, the North has rescheduled loans of developing nations that have reached the edge of the cliff. This "recycling" has been achieved at minimal cost to the developed nations or to the private corporations and insurance companies involved. The nega- tive consequences, however, may increase as the era of cheap energy and low-cost borrowing ends. To forecast Armegeddon because of this issue would be inappropriate as the North has not and will not let it happen. This leads to a third major school of thought, which is the concept of "mutual interest." The rea- son that total collapse does not occur is because it would also damage the devel- oped countries. The opposite side of the "mutual interest" coin is that the South, as the World Bank 1981 development report calls it, is also the "engine of growth" to the developed nations, keeping down inflation and providing raw materials. The Caribbean Basin Initiative The Caribbean Basin Initiative has been, from day one-when Secretary of State Haig first announced it as a "mini-Marshall plan"-a bundle of contradictions. To its critics, it has set out to achieve the three objectives which Mexico's L6pez Portillo first argued would doom it to disaster: con- tain communism, unfairly exclude certain nations in the region, and link economic and military assistance. Characteristic of US policy since the Monroe Doctrine, the program was a unilateral announcement of multilateral goals. Venezuela has spent $7 million in programs for energy cooperation, Minister of Energy and Mines Humberto Calder6n Berti argued in Cancin. Ulti- mately, the administration backed off after early criticism and consulted with some of the nations which were to be involved. After several months of fits-and-starts, the ad- ministration formally announced the plan last February. Even to its allies, the Initiative falls short of the massive aid that the region needs, it is arriving late, and it is described often as a program "created with mirrors" since it is seen as a new packaging of exis- tant programs. The six point economic program in- cludes several measures to spur develop- ment in the Caribbean basin which includes concessions in the areas of aid, trade, and private investment. The three- tiered program proposes $350 million in additional aid for the region and $60 million in military assistance. Other points of the program include a one-way free trade ar- rangement-never before attempted-tax incentives to foreign investors, technical training programs (such as promotion of investment and marketing techniques), co- ordination with Canada, Mexico, Colombia and Venezuela who already have programs such as the San Jose accord to assist in oil exploration, and special items for Puerto Rico and the Virgin Islands to protect their rum trade. Much of the criticism has centered around the military aid, since the majority of the aid was planned for El Salvador, which has continued to sink into deeper conflict. The staunchest opposition however, came in the US Congress from manufacturing interest groups because of the access that goods from the region would have, duty- free, in the US market. By the time the CBI was "reported out" of Trade Subcommittee of the House Ways and Means Committee in early May, the tex- tile, footwear, and leather industries in the US had lobbied their way to protect these products from protection under the legisla- tion. Several amendments introduced in the Subcommittee on Inter-American Af- fairs included additional allocations for scholarships for students from the region to study in the US, as well as a limit on the amount of direct aid that each nation could receive. The strength of the initiative was diluted in early May with recent revisions proposed by the administration to add im- port quotas in imported sugar, including sugar from the Caribbean basin, which will severely damage export eamings from Bra- zil, Guatemala and Panama and cripple sugar trade from the Dominican Republic. The CBI should be added to the recent proposals for private sector participation to form a package of aid to Washington's neighbors to the South. Programs which induce lending by private sources chan- neled through multilateral lending institu- tions appear to satisfy all needs: the private sector benefits from the experience, re- spectability, and scholarship of interna- tional lending institutions such as the World Bank or regional development banks; the multilateral financial institutions are able to mobilize greater resources; and developing nations are able to borrow more from the preferred channel of multilateral organiza- tions. Increased multilateral aid is possible if contributions from private lenders are added to official assistance through pro- grams of "co-financing." Co-financing programs may take several forms. Co-financing is defined by the World Bank: "any arrangement whereby funds from the World Bank are associated with funds provided by other sources outside the borrowing country in the financing of a par- ticular project." These projects bring out- side capital from three areas: (1) official sources (governments, agencies, and mul- tilateral financial institutions), (2) export credit institutions (which finance goods and 46/CAIBBEAN VIEW services from a particular country), and (3) private financial institutions (such as commercial banks, insurance companies). In 1980, almost 40% of all World Bank proj- ects included some form of co-financing. The total reached $6 billion in projects that were co-financed; $1.7 billion of that came from the private sector. Because of this increase in lending ca- pacity, the bank has argued strongly that lending from private sources contributes on a significant level to meeting the needs of the developing countries. As a result of wide support, co-financing projects doubled be- tween 1979 and 1980, a period when offi- cial development assistance was shrinking rapidly. CBI critics such as Hodding Carter ll, have questioned the administration's "un- derlying rationale for supporting the mili- tary regimes of Central America" by means of the program "advertised as a compre- hensive approach to the problems of the region." Not surprisingly, the CBI may serve this purpose for the administration. But then it is the military programs-and those alone-which should be eliminated. A vested interest is no good reason, at this stage, to block an economic program which most of the countries involved would desperately like to receive. The Dominican Republic and Costa Rica's new Social Dem- ocratic presidents are entering office with seemingly unresolvable economic dilem- mas. In fact, much of the opposition is com- ing from protectionist groups at home and not from the criticism of the military aspects of the policy. The most legitimate criticism of the plan is that it is merely a "drop in the bucket" to the nations of the region, and is anything but comprehensive. With all its limitations, however, the failure to enact a plan of economic assistance in the region would have significant consequences. There are several plans for increased in- vestment in Latin America and the Carib- bean which might supplement a Caribbean basin plan, or the World Bank's co-financ- ing plans. "Tax sparing" is a program which has been proposed as a program to stimu- late investment, and eliminate or reduce income taxes on investments outside the US-by the allocation of preferences. In short, it is a system of tax credits. An early example of this was the program that al- lowed corporations to receive 100% in- come tax exemption to invest in Puerto Rico under Section 936 of the US Internal Reve- nue Code (originally Section 931), as long as the corporation reinvested in Puerto Rico. Programs such as the 936 Corpora- tion, should be tailored to not impose ex- cessive investments from outside but to supplement income and production. An- other innovative plan was proposed by George Shultz, then-Chairman of Reagan's Economic Policy Advisory Board. He sug- gested the creation of an international code for investments-"a sort of GATT for invest- ment." This type of general agreement on investment would increase and stimulate flows of private capital building on pro- posals such as those in the International Finance Corporation (IFC). In a recent re- port written by former Assistant Secretary of State Viron P Vaky, the steering committee recommended the establishment of a re- gional Intemational Finance Corporation as a private sector window in the Inter-Ameri- can Development Bank. The Brandt Commission In January, 1982, the Brandt Commission, frustrated by the lack of results from the Cancin conference, met again, to reassess the demands that the developing nations had made at Canc6n. Meeting in Kuwait, Willy Brandt repeated the call for global ne- gotiations. "Countries in distress," he warned, "particularly the poorest, cannot wait for the outcome." To date, nothing has come of the Canc(n initiative. The crisis in the South Atlantic has exacerbated tensions in the region. The summit conference at Versailles of the seven major industrial countries in June proved that there is fun- damental disagreement on the basic princi- pals of economic growth, such as the relationship between unemployment and inflation. Washington's Latin American neighbors have waited two years for the design of a coherent foreign economic policy-what- ever the shape-to appear. Instead, the ad- ministration's foreign policy designates continue to publicly feud and the admin- istration is the butt of jokes in Cancun and in Versailles that are all too reminiscent of international reaction to the Carter group's enigmatic policies. Cancin was a gentle reminder that the US, along with other advanced industrial nations, has a responsibility as well as a national self-interest in securing economic and political stability in Latin America, Asia, and Africa. If Washington can convince the US private sector to join in the effort, so much the better. But Latin America is not a laboratory and Washington needs to in- clude a fall-back plan to provide a compre- hensive and far-sighted economic program. Jose L6pez Portillo opened the con- ference by warming, "Our world today is still split by a lacerating contradiction between opulence and poverty...and between prog- ress, backwardness, and sometimes even backsliding." As a leader of a nation recently elevated to the level of a world power and beset with devaluation and oil "indigestion," the comment by Mexico's President re- flected a leader well-aware of the pain that poverty inflicts on a nation. Washington's economic programs in the hemisphere carry with them the increased prospects for international cooperation for the resolution of poverty, illiteracy, and political turmoil; with them they forecast the dangers which the failure to produce such results might bring. CAI?BBEAN PVIEW1/47 THE CA? BBCAN E AWARD We are pleased to accept nominations for the fourth annual Caribbean Review Award, an annual presentation to honor an individual who has contributed to the advancement of Caribbean intellectual life. The award recognizes individual effort irrespective of field, ideology, national origin, or place of residence. The Award Committee consists of: Lambros Comitas (Chairman), Columbia University, New York; Fuat Andic, Universidad de Puerto Rico, San Juan, Puerto Rico; Wendell Bell, Yale University, New Haven, Con- necticut; Locksley Edmondson, University of the West Indies, Mona, Ja- maica; Anthony P. Maingot, Florida International University, Miami, Florida. Nominations are to be sent to the Editor, Caribbean Review, Florida International University, Miami, Florida 33199. Nominations must be received by March 11, 1983. The Third Annual Award will be announced atthe Eighth Annual Meeting of the Caribbean Studies Association. In addition to a plaque the recipient receives an honorarium of $250, donated by the International Affairs Cen- ter of Florida International University. Latin America... Continued from page 21 In fact, since the Industrial Revolution, the world economy has become expansive and dynamic. There is today far more wealth than there was 200 years ago. In absolute terms, the wealth of virtually every nation and region is greater than it was. Average life expectancy is higher. Hygiene and health are better. Some modernization has been achieved. Yet relatively, individual nations rise and fall as events, needs, and exertions favor first one, then another. The rise of Japan has been as spectacular as the de- cline of Great Britain. Moreover, the mere existence of depen- dency does not mean that the under- development of Latin America is a consequence of the development of the United States, or vice versa. A battery of facts, says Ramos, must be accounted for: (1) Only 5% of total US investment is made abroad,and only 7% of the nation's produc- tion is exported. The United States depends relatively little on foreign trade. (2) About 70% of US foreign investments and exports go to developed countries. Less than 20% of US foreign investment goes to Latin Amer- ica. US investment in Latin America repre- sents less than one percent of the US gross national product. (3) The average rate of return on US investments in Latin America has not been particularly high, either before 1950 or during the years 1950 to 1977. This return has been higher than in Canada but about the same as in Europe, Australia, Asia, and Africa. (4) The often-repeated statement that US investors in the Third World take out more in profit than they in- vest is, for all sound investments, a truism. To invest $1,000 in a savings account for ten years is to hope to withdraw significantly more than the original $1,000. These new funds are then available for new investment elsewhere. Without such growth, econo- mies stagnate and investment is futile. One might as well be a miser. (5) To argue that US corporate profits depend to a high de- gree on investments in the Third World is to err. Only about 200 US firms account for most of US investments overseas. Of these, virtually all make most of their investments in the United States and in the developed world. Seventeen percent of their foreign investments are in Latin America. About twenty firms account for half of all US over- seas profits. For such US transnationals- General Motors and General Electric, for example-investments and sales within the United States are, year by year, more than ten times greater than those in the Third World. In some years, profits made in some operations make up for costs incurred for new investments elsewhere. One must ex- amine investments over time. (6) The United States has for many years suffered a balance-of-trade deficit; the total value of its imports exceeds that of its exports. The net effect is a weakening of the dollar in relation to other currencies. These six facts oblige Professor Ramos to reject the center-periphery theory of de- pendence. Belief in such a dubious theory hinges, of course, on other assumptions. Professor Ramos also deals with these. Suppose, he says, exploitation does exist. The exploitation of one people by another has existed since the beginning of history. "However, until the Industrial Revolution, no After having opposed modern economies for centuries, the bishops claim to be aggrieved because others, once equally poor, have succeeded as they have not. people, no matter how exploitative or impe- rialist they were, could reach a generalized, sustained level of economic development." A few nations first reached this level through science, technology, and economic organi- zation. The "wealth" of the center is far more a consequence of such factors than of colo- nial development. The contrast between Great Britain and Spain since 1500 permits no other conclusion. Second, Gutierrez may find it "attractive to place the fundamental blame for our problems on dependency (and by so doing blame others)," Ramos writes, but "might not this dependence rather be a reflection of the internal obstacles to development which are encountered within our coun- tries?" Ramos notes that each currently de- veloped country also began in dependency. "The United States broke out of its depen- dency on what was then the greatest world power, while Latin America, colonized at the same time, still fails to do so." Since Spain and Portugal are among the most under- developed countries of Europe, Ramos suggests that "internal structures common to Latin American and Iberian countries are the fundamental obstacles to overcoming underdevelopment for us as much as for them." In the same vein, Gutierrez believes that underdevelopment in Latin America is a consequence of "private property." But Ramos calls attention to a special charac- teristic of Latin American property rights: "the initial extreme concentration of eco- nomic and political power (since colonial times) in the hands of a few, and the conse- quent limitation of opportunities." In the United States, by contrast, property, power, and opportunities were distributed much more equally from the beginning. For Ramos, a narrow concentration of wealth has negative effects quite visible in regional variations both in the United States and in Latin America. In the US South, where power and wealth were concentrated in the landholding system, vigorous development was delayed until after World War II. By con- trast, the Midwest and Far West, even though they were also agricultural regions, experienced more rapid development through a system of family property and relative equality. In Latin America, agri- cultural regions, held tightly in a few hands, are most backward. Thus development seems to depend on the diffusion of private property. Third, when Gutierrez rejects sentimental appeals to brotherhood, which disguise class conflict, Ramos appreciates his desire to abolish the causes of class conflict. But he finds Gutierrez "ideological and ahistori- cal" in overlooking "the most significant economic fact of modem times, namely that wealth can be created." All economies prior to the Industrial Revolution were (rela- tively) static. Under static conditions, the economic improvement of some is neces- sarily obtained at the cost of others. For this reason, "the central concern of static econ- omies, like the medieval one, has been the fixing of just prices and salaries." In the early medieval economy, capital did not produce new wealth. Thus the taking of interest was judged to involve the terrible sin of usury, since through it one took advantage of those in need. But once capital became creative and its utility in economic progress became clear, moral interpretation was ob- liged to shift its ground. Ramos urges Gutierrez to shift ground too, by recognizing that relations of mutual advantage and co- operation are essential to dynamic econo- mies, even though relations of conflict never disappear. Ramos does not accept the Marxist the- ory that classes are rooted in the relation to property. For him the relation to power is more significant, and assumes different forms in different times and places. Relative scarcity yields one common form of eco- nomic power. Such scarcity may involve land, water, transport, capital, technology, knowledge, oil, arms. "It does not suffice to have property in order to dominate; domi- nation requires the possession of the critical form of power in each historical moment." At different times in history, the military caste, the clergy, the landlords, the indus- trialists, the bankers, the politicians, the technocrats, have been preeminent. There is not one class struggle but many; and their root is not property but power. As a result, class struggle will not disappear with the 48/CArBBEAN EviE ~ abolition of private property. Struggle over the political allocation of power and goods is historically one of the most bitter forms of struggle. Nationalization of ownership al- ways generates class struggle, to the extent that the participation of citizens is only a formality, while decision-making lies in the hands of the party, the bureaucracy, and the police. Private property is a device to limit the power of the State. It undergirds the principle of subsidiarity, by giving citizens rights to make decisions about what each knows best. Finally, Ramos deplores "the exagger- ated tendency of Catholic theology to inter- pret social relations as if they were the same as interpersonal relations." The error of so- cialists is to trust the ideals of socialism while disregarding their structural results. Gutierrez ends his book with a plea for "a definitive stand, and without reservations, on the side of the oppressed classes and dominated peoples." His good motives are clear. But the unintended consequences of his economic theories are not likely to con- stitute the liberation he desires. In matters of political economy, much stands or falls on fact. The liberation the- ologians widely assert that development and reform in Latin America are not work- ing. Not working compared with what? It is worth pausing to reflect on the facts, first of success, then of failure. The Success of Latin America In 1945, the population of Latin America was 140 million. Between 1945 and 1960, the gross national product of Latin America averaged an annual growth rate of 4.9%. From 1960 to 1965, the rate was 5.3%; from 1965 to 1970, 5.7%; and from 1970 to 1974, 6.7%. The world recession slowed growth in Latin America in 1975 (2.7%); in 1976 the rate was back up to 5%. Thus, for the thirty years from 1945 to 1975, Latin America averaged an annual growth of 5.2%. Few regions of the world exhibit such a sustained success. In this century, the wealth of Latin America has doubled, and then doubled again, more than once. Since World War II, manufactur- ing has grown at a rate of 6.5% each year. In addition, agricultural output per worker grew by more than 2% a year; and total agricultural output by 3.5% each year. Since population growth averaged 2.7% a year, agricultural yield has grown faster. This compared favorably with agricultural out- put in the United States from the end of the Civil War until World War I, when agricultural output grew at 2.1% a year and average output per worker at 2.5%. In real terms, wages and salaries in Latin America have grown since World War II at an average of 2% a year. This is better than the United States experienced from 1865 to 1914. Wages and salaries have not grown as fast, however, as returns on capital. In WORLDVIEW SW These are the times that try men's souls. Clearly, Thomas Paine understood the nature of international affairs- the ambivalence, ambiguity, confusion. And just as clearly, what was said of 1776 can be said of 1982. Whether the revolution is in America or Nicaragua, thinking men and women must strive to evaluate, to under- stand, and, ultimately, to decide. But to decide intelligently they must first be informed. Paine had the Pennsylvania Journal. Today, thousands rely on WORLDVIEW. Why? Because WORLDVIEW is the only magazine that consistently examines foreign policy in an ethical perspective; because it looks not simply at the day's events, but ahead to tomorrow's consequences. And it offers more. Timely columns, important book reviews, articles by leaders in government, education, business and religion. Subscribe now. It's only common sense, Special half-price offer. A year of WORLDVIEW for only $8.75! Now, for a limited time, you can get 12 issues of WORLDVIEW at only half name the regular subscription price ($21on newsstands). That's just 73c a month. Send coupon to: street WORLDVIEW Subscription Dept., Box Q 170 E. 64th Street, NY, NY 10021 city & state zip (Outside of U.S. please add $5.00 for postage and handling.) part this is because large agricultural sec- tors, with expanding populations, share slowly in the development of commerce and industry, which occurs in cities. Rising returns on capital tend to attract new capital. While dynamic growth in some sectors does not automatically flow to other sec- tors, it does provide new wealth, which sound political systems may invest in rural electrification and other advances. The rates of growth in real wages, in man- ufacturing, and in agricultural income and output per worker are all the more remark- able when one recognizes that during the same thirty-year period, 1945 to 1975, Latin America's population grew from 140 million to 324 million. Yet despite Latin America's immense growth in population, its per capital income has grown at rates seldom equaled on so sustained a basis anywhere in the world. Per capital income in Latin America in 1976 is estimated to have been between $750 and $1,000. In thirty years (1945-1975), infant mor- tality was reduced from 83 per 1,000 births to 46 per 1,000. Life expectancy advanced from approximately forty-two years to sixty- two years. Despite immense population growth, illiteracy has been reduced from 50% to 25% (absolute numbers, though, remain large: about 80 million persons are illiterate). In 1945, only 55% of primary- school-age children attended school; the figure in 1975 was 90%. In high school, the increase was from 10% to 35%. The per- centage of those from twenty to twenty-four CAI?BBEAN re VIW/49 years old attending universities has risen from 2% to 9%. Obviously, these figures cry out for im- provement. Still, what accounts for the sud- den explosion of growth in 1945, after centuries of relative stagnation? Foreign aid and foreign investment cannot account for it, since together these make up less than 4% of Latin America's annual intemal in- vestment. Favorable terms of foreign trade do not account for it, for these terms are less favorable than in the nineteenth century. Structural reforms cannot account for it, for these have been relatively few; there have been few major land reforms, tax reforms, or dramatic institutional reforms. In the opinion of Ramos, the most satis- MELLON VISITING PROFESSORSHIP AND POSTDOCTORAL FELLOWSHIP ON LATIN AMERICAN STUDIES AT THE UNIVERSITY OF PITTSBURGH Open to outstanding scholars of all nationalities with fluency in English and either Spanish or Portuguese. Emphasis is on teaching rather than research. Priority disciplines for 1983-84 are: (1) economics or business; (2) political risk analysis; (3) Andean or Brazilian history; (4) pre-Columbian and contemporary art. Preference given to suitable applicants in these fields, but other disciplines of the social sciences, humanities, and social professions will be considered. Visiting Professorship awarded for one term to senior scholar to teach two graduate seminars or the equivalent; Postdoctoral Fellowship awarded for two terms to junior scholar who has received the doctoral degree to teach one undergraduate and one graduate course or the equivalent. Deadline for receipt of applications is November 15, 1982. For further information and application forms, write to: Center for Latin American Studies University of Pittsburgh 4E04 Forbes Quadrangle Pittsburgh, PA 15260 USA factory explanation is that the advantages of being a "late starter" have finally been seized. Latin Americans are closing the technological, organizational, and manage- ment gaps that once separated them from the developed world. The power of ideals and intelligence, learning and application, is much in evidence. Religion itself is be- coming more dynamic. There has been a breakthrough in the ranks of the narrow elite at the top. It has not yet reached mil- lions at the bottom, but revolutions in "human capital" have set a great dynamic in motion. Whereas, for example, USAID of- ficers once struck Latin Americans as better prepared than their local counterparts, to- day Latin American economists and experi- enced officials have training and skills superior to those of the average foreign ad- viser. Finally, late-starting nations may take advantage of already developed technolo- gies and thus devote relatively less capital to research and development. The Failure of Latin America Impressive growth in GNRP in per capital in- come, in literacy, in education, in health, and in longevity represent human goods of great value to Latin America. But such fig- ures also mask inequality, uneven distribu- tion, and widespread suffering. In a paper produced for the Catholic So- cial Action Center of Latin America in 1978, economists Sergio Molina and Sebastian Pifiera calculated that in 1970 about 40% of all Latin Americans (some 115 million per- sons) received an income below the poverty line of approximately $200 per year. Still lower on the scale of poverty, at the destitu- tion level, about 19% (some 56 million per- sons) received less than the $100 per year required to buy food providing a minimum level of calories and protein for subsistence. It is clear that the fruits of spectacular eco- nomic growth are not reaching all parts of the population. The 50 million destitute need urgent care. The total 115 million poor need rapid improvement of their condition. Between 1960 and 1970, the percentage of the poor fell from 51% to 40% and of the destitute from 26% to 19%. But because of population growth, absolute figures were virtually unchanged (down only about 2 million in each category). What would it take to raise all Latin Amer- icans above the destitution line? Molina, Pifiera, and Ramos calculate $100 per year for 50 million persons, or $5 billion an- nually. To raise all the destitute and the poor above the poverty line would require an- other $11 billion per year. This $16 billion represents (depending upon its exact cal- culation) about 5% of Latin American GNR Asa percentage of government spending in 1970, it would have represented 22%. As a percentage of the continent's total disposable income in 1970, it represented about 6%. These figures show that Latin America already has at its disposal sufficient annual income and gross national product to raise the level of its 50 million destitute persons almost immediately. The economic capac- ity is present. The political will and the eco- nomic techniques may not yet be present. Techniques that do not discourage greater production are indispensable. On the other hand, the diffusion of purchasing power to the poorest 25% of the population is in the interest of domestic manufacturers, farm- ers, and traders. An additional healthy 50 million persons would provide markets for goods and promote new forms of eco- nomic activism. In a dynamic economy, the economic activities and skills of each per- son offer mutual advantage to others. Molina and Pifiera observe that income differentials among employees explain only about half the difference in per capital in- come between poor and non-poor house- holds. The rest is explained by the fact that the non-poor tend to have a higher number of employed adults per household and a lower number of dependent minors. The vast majority of heads of households are employed. A high percentage complains of underemployment (less than thirty-nine hours a week) and desires more. Simul- taneously, many large social tasks remain unaccomplished. The economic in- frastructure to support future growth will require investment and labor to build roads and bridges, sewage and sanitation facili- ties, generators and power lines, communi- cations systems and urban water supplies, rural irrigation and facilities for transport. The case of Brazil is often cited. Ramos points outthat prior to 1964 the nonmilitary governments in Brazil sustained an average annual growth rate of 5.5% a year. After the military coup in 1964, the growth rate jumped to 9% a year. By 1970, every decile of the population had benefited in real terms. Relatively, however, the poorest de- ciles were receiving a lesser proportion of national income, the upper deciles a larger proportion. Between 1970 and 1976, the relative position as well as the absolute posi- tion of the poorest deciles improved. Still, the contrast between the richest and the poorest is stark. Behind the cold statistics there are families whose children lack suffi- cient calories and protein for normal ac- tivities and normal growth. Ramos proposes that $5 billion be in- vested every year for ten years (a total of $50 billion), from funds already internally gener- ated in Latin America, to improve the lot of the destitute. The exact schemes he pro- poses for this ten-year crash program need not detain us, for they are matters best de- cided by Latin Americans. The central point Ramos makes is that of scale. The problem of reaching the destitute and the poor is not insuperable. Resources are available. 50/CArIBBEAN rEview Labor Surplus... Continued from page 25 enterprises will present Jamaica with an- other dilemma. Large amounts of labor will be absorbed only if wage rates remain low. And only a large permanent stock of sur- plus labor can ensure this. In other words, we have a paradoxical situation in which the absorption of cheap labor is dependent upon the existence of a permanent pool of surplus labor. This is so because every unit of reduction in surplus labor will increase wage rates which in turn will encourage the substitution of subsidized capital equip- ment for labor. As wage rates increase, some wage threshold will be reached where additional private foreign investment will absorb only those workers whose marginal productivity equals or exceeds their wage rate. This means that the character of the demand for labor will change from cheap labor to skilled labor. The speed with which this change occurs depends, among other factors, upon the climate of industrial rela- tions. It is not inconceivable that the mili- tancy of labor unions may enter as a factor influencing the choice of production tech- nology by new manufacturing enterprises. If that critical wage threshold is reached before the stock of cheap, unskilled, surplus labor is significantly reduced, then govern- ment policy must direct its attention to transforming the surplus labor into skilled labor. This is easier said than done. Be- cause most of the surplus labor in the Caribbean is young-it is by definition un- skilled. Despite their relatively high rate of literacy, their local primary and secondary education does not prepare them for work. They must rely on the workplace itself to do that. If there is no workplace, there is no on- the-job training; if there is no on-the-job training, workers cannot acquire the neces- sary skills; and if they do not have the skills, certain types of capital investment will not take place. In a market economy, the creation of workplaces is largely a function of private investment which is itself a function of prof- its, so that the possibilities for on-the-job training are intertwined with the possibilities for profit. But because the workplace is re- ally an extension of the vocational educa- tion system in the Caribbean, its creation should not be dictated by expectations of private profit alone. It should be consciously shaped by public policy and, where neces- sary, public investment The transformation of surplus labor into skilled labor is essential for the functioning of an indigenous engine of growth. But this problem is complicated by the high pro- pensity of Jamaicans to emigrate. The fig- ures show that professional and technical workers as well as those classified as factory operatives emigrated to North America in great numbers during the 1960s and 1970s. All took with them varying amounts of local investment embodied in their edu- cation and training. A small country cannot build up an indigenous engine of growth on imported foreign capital if it simultaneously exports its own human capital. Such an ex- change is more likely to strengthen the ex- ternal engine in the long run, since the return flow of profits and interest payments on imported capital is never offset by the remittances received from equivalent human capital exports. The persistence of How rapidly the Caribbean economy absorbs its surplus over the next two decades depends on its success in generating locally-rooted economic impulses to create employment. this adverse balance of payments on human and financial capital flows lays the foundation for a treadmill rather than for an engine. The fundamental challenge facing Carib- bean economies is the absorption of the growing pool of surplus labor into produc- tive activity. Traditionally, domestic employ- ment growth has been largely influenced by foreign demand for Caribbean exports and to a lesser extent by foreign investment in the Caribbean. But over the past decade, the growth of exports and the inflow of for- eign capital have slowed considerably. One is left to conclude, therefore, that the extent to which the Caribbean can absorb its sur- plus labor is limited by its excessive depen- dence on an external engine. While that will always be important, the need for an indige- nous engine that can expand exports when the external engine slows down is urgent Needless to say, this requires the full sup- port of public policy. Not only must govern- ment provide the right kind of environment in which small efficient firms can develop and establish a network of backward and forward linkages with larger firms, it must also actively support innovative export pro- motion strategies. One of the most frequently cited obsta- cles to Caribbean industrial development has been the small size of the Caribbean market If the US Congress ultimately de- clares the American market wide open to Caribbean exports, as is proposed in the Caribbean Basin Initiative, then the poten- tial market for Caribbean exports would transcend the traditional limitations of small size. But the removal of market size limita- tion by legislation unmasks other limita- tions which are essentially rooted in the underdevelopment of the region. Chief among these is the deficiency in the level and diversity of its human capital stock needed to build and operate the indigenous engine. Only when this engine is on track can the Caribbean fully exploit the oppor- tunities a larger market would provide. a CAIBBEAN PKIEW/51 Review Latin American Literature and Arts Subscribe Now! Individual Subscription $10.00 Foreign $12.00 U.S. Institution $15.00 Foreign Institution $20.00 Published three times a year. Back issues available. NAME ADDRESS A publication of the Center for Inter-American Relations 680 Park Avenue, New York, New York 10021 Nicaragua... Continued from page 35 successful during the Cold War, was of little use in the era of detente with a US admin- istration which recognized the anti-com- munist argument as a mere justification to maintain power. The anti-Somoza bour- geoisie, on the other hand, tried to build itself up as a non-revolutionary alternative to Somoza's regime, but without proposing a complete dismembering of his regime, particularly with regard to keeping a purged National Guard. The alliance which the anti-Somoza bourgeoisie tried to forge with the US Em- bassy had to compete with the revolution- ary struggle of the FSLN. Especially after 1977, the participation of the masses in the sandinista struggle grew. The growth of internal support for the FSLN combined with the support it obtained from friendly governments, especially Panama and Costa Rica. The palace politics of the bour- geoisie could never triumph over the FSLN politics of the masses, which combined in- surrection, grass roots organization, rural guerrilla warfare, conventional military combat, international diplomacy, and opening itself to all forces opposed to Somoza. The democratic Nicaraguan bour- geoisie, a recently evolved class, could not present itself as a real alternative to the FSLN's peasants, workers, students, un- employed, i.e., the majority of the people. The bourgeoisie recognized its own de- feat only at the last moment. The Frente Amplio Opositor (FAO) threw its support to the sandinista-inspired Junta de Gobierno de Reconstrucci6n Nacional (JGRN) only on June 24, 1979, as did the Consejo Superior de la Empresa Pri- vada (COSEP) shortly thereafter. These actions, when the Somoza regime was al- most dead, allowed these sectors to join, along with the victors, in the new era which opened on July 19, 1979. They joined not as a hegemonic force or direction, but as a subordinate element of a national movement. Lulled by the fantasy of North American omnipotence, mortgaged to politics of the antechamber and the bedroom, of mur- murings and insinuations, accustomed to considering politics as foreign to their class, only susceptible to isolated and sporadic pressures, without a national plan, the wealthy classes were not equipped to un- derstand that for most of the population more than the name or face of the govem- ment was at stake. When they at last com- prehended, their own subordination to the Somoza regime left them without room for action. A third aspect which the Diederich book underscores is the role played by the FSLN as a catalyst. The FSLN substituted Somoza vs. sandinista for Somoza vs. anti-Somoza. In so doing they gathered be- hind themselves all forms of anti-Somoza expression, from those who merely wanted to rid themselves of the dictator to those who saw the exit of Somoza as one chapter in a larger more profound process. But the structure ofthe fight against Somoza deter- mined that the defeat of the dictator also meant defeat of the attempt to create and sustain any other option. With "anti-imperi- alism" as a battleflag, with its autonomy intact despite negotiations between the middle class and the US, the FSLN was able to present itself as the voice of the Nicaraguan nation. The Diederich book is therefore an excel- lent source of relevant information for un- derstanding and interpreting the struggle which brought the FSLN to power, and for the understanding of some of the more im- portant aspects of the present situation: the relations of the FSLN with the local bour- geoisie and with the US, the cooperation offered and given by social democracy in Europe and by various socialist nations, and the present crisis in Central America. At present relations between revolution- ary Nicaragua and the Reagan administra- tion are passing through a difficultjuncture, to say the least. One notes from the Diederich book that it is necessary to com- prehend that anti-imperialism is a constant in Nicaragua's history, because military, po- litical, economic, and commercial external aggression have likewise been historical constants. Since Walker's adventure in the last century, the military training of the Na- tional Guard until the last moments of Ana- stasio Somoza Debayle's regime, the violations of Nicaragua's national sov- ereignty, the repression of public protest, the enriching of those in power have all been closely associated with the US par- ticipation in Nicaraguan life. Is it any sur- prise, then, that the State Department, the Defense Department, and the White House should be held in such low esteem by the sandinista revolution? Can anyone be truly surprised when Nicaragua looks for an- other source of aid to create a new army? Or should we be surprised that the FSLN an- them refers to the "yankee enemy of hu- manity?" In politics, as in agriculture, you reap what you sow. 52/CAlBBEAN IFVIEW Recent Books An informative listing of books about the Caribbean, Latin America, and their emigrant groups By Marian Goslinga Anthropology and Sociology ARTISTS CONTEMPORANEOS EN AMERICA LATINA. Damian Bay6n. Ediciones del Serbal (Barcelona, Spain), 1981. 124 p. $20.50. CIVILIZATION AND THE STOLEN GIFT CAPITAL, KIN, AND CULT IN EASTERN PERU. Jacques Chevalier. University of Toronto Press, 1982. 264 p. $25.00. COMO FUE LA INMIGRACION IRLANDESA EN LA ARGENTINA. Juan Carlos Korol, Hilda SAbato. Plus Ultra (Buenos Aires, Argentina), 1981. 213 p. $6.00. CONCEPTUALIZACION Y REGIONAUZACION EN LOS ANDES. Nicole Bemex de Falen, Hildegardo C6rdova, Adriana Flores de Saco. Pontificia Universidad Cat6lica del Peru, 1981. THE COSMIC ZYGOTE: COSMOLOGY IN THE AMAZON BASIN. Peter G. Roe. Rutgers University Press, 1982. 451 p. $35.00. CULTURAL E OPULENCIA NO BRASIL Andre Joao AntoniL New ed. Itatiaia (Belo Horizonte, Brazil), 1982. 240 p. $10.00. DIGESTO LEGISLATIVE DE LA FORMACION PROFESSIONAL EN AMERICA LATINA Y EL CARIBE. H. H. Barbagelata. Centro Interamericano de Investigaci6n y Documentaci6n sobre Forrnaci6n Professional. CINTERFOR (Montevideo, Uruguay), 1981. 5 v $50.00. EAST INDIANS IN THE CARIBBEAN: COLONIALISM AND THE STRUGGLE FOR IDENTITY. Bridget Brereton, Winston Dookeran, eds. Kraus International, 1981. 186 p. $30.00. Papers presented at a conference held in 1975 at the University of the West Indies. ECOLOGIA Y AMBIENTE EN VENEZUELA J. B. Le6n. Editorial Ariel (Barcelona, Spain), 1981. 258 p. LA EDUCATION EN AMERICA LATINA Y EL CARIBE EN EL ULTIMO TERCIO DEL SIGLO XX. Jos6 Blat Gimeno, ed. Unesco, 1981. 210 p. Papers presented at a conference held in 1979 in Mexico City. O ENSINO SUPERIOR NO BRASIL- A ESTRUTURA DE PODER NA UNIVERSIDADE EM QUESTAO. Maria Stela Santos Graciani. Vozes (Petr6polis, Brazil), 1982. 166 p. $6.00. ESCLAVOS REBELDES: CONSPIRACIONES Y SUBLEVACIONES DE ESCLAVOS EN PUERTO RICO, 1795-1873. Guillermo A. Baralt. Ediciones Huracan (Rio Piedras, Puerto Rico), 1982. 183 p. ETNOHISTORIA Y ANTROPOLOGIA ANDINA. Amalia Castelli, et al. El Virrey (Lima, Peru), 1981. 310 p. $9.00. FOLK LITERATURE OF THE MATACO INDIANS. Johannes Wilbert, Karin Simoneau, eds. Latin American Center, University of California (Los Angeles), 1982. FROM PALE TO PAMPA: THE JEWISH IMMIGRANT EXPERIENCE IN BUENOS AIRES. Eugene E Sofer. Holmes & Meier, 1982. $24.00. A HOUSE OF MY OWN: SOCIAL ORGANIZATION IN THE SQUATTER SETTLEMENTS OF LIMA, PERU. Susan Lobo. University of Arizona Press, 1982. 208 p. $18.50; $7.95 paper. INTRODUCTION A LAS CIENCIAS SOCIALES. Pedro J. Rua, ed. Ediciones Huracan (Rio Pedras, Puerto Rico), 1982. $7.50. Social conditions in Puerto Rico. PATRIARCAS DE LA PLATA: ESTRUCTURA SOCIOECONOMICA DE LA MINERIA BOLIVIANA EN EL SIGLO XIX. Antonio Mitre. Heraclio Bonilla, ed. El Virrey (Lima, Peru), 1981. 229 p. $6.00. EL PENSAMIENTO NAHUATL CIFRADO POR LOS CALENDARIOS. Laurette Sejoume. Siglo XXI (Mexico), 1981. 407 p. $36.60. THE PEOPLE OF THE COLCA VALLEY: A POPULATION STUDY. Noble D. Cook. Westview Press, 1982. 98 p. $15.00. PROCESS IDEOLOGICO EN LA IGLESIA LATINOAMERICANA. Anibal E. Fosbery. Astrea (Buenos Aires, Argentina), 1981. $25.000 (pesos). PROFETAS, TERRA Y CAPITAUSMO: IGLESIA Y CAMPESINADO EN AMERICA LATINA. Centro de Investigaci6n y Educaci6n Popular. CINEP (Bogota, Colombia), 1981. 197 p. $12.00. PUEBLA. Equipo Seladoc. Sigueme (Salamanca, Spain), 1981. 544 p. RAINFOREST CORRIDORS: THE TRANSAMAZON COLONIZATION SCHEME. Nigel J. Smith. University of California Press, 1982. 200 p. $22.50. SE ACABA LA FAMILIAR: INVESTIGATION SOBRE LA SOCIEDAD COLOMBIAN Gloria Pacho de Galen. Editorial Pluma (Bogota, Colombia), 1981. 336 p. $18.00. SECTOS EN AMERICA LATINA. Consejo Episcopal Latinoamericano. CELAM (Bogota, Colombia), 1982. 300 p. SERVICE SOCIAL E SOCIEDADE BRASILEIRA. Maria Helena de Almeida Lima. Cortez (Sio Paulo, Brazil), 1982. 144 p. $5.50. A SOCIO-HISTORICAL ANALYSIS OF THE EMANCIPATION OF 1848 AND THE LABOR REVOLT OF 1878 IN THE DANISH WEST INDIES. Clifton E. Marsh. Caribbean Research Institute, College of the Virgin Islands (St Croix), 1981. $7.00. LA TRADITION HUMANISTICA. Pedro Grases. Seix Barral (Barcelona, Spain), 1981. 728 p. DIE ZWEITE BEFREIUNG: APHABETSERUNG IN NICARAGUA. Lore Schultz-Wild. R Hammer Verlag (Wuppertal, W. Germany), 1981. 208 p. $12.50. About Nicaragua's literacy campaign. Biography ALVEAR, F6lix Luna. Belgrano (Buenos Aires, Argentina), 1982. 352 p. $9.90. CAIBBEAN PeVI~W/53 ARGENTINE DICTATOR JUAN MANUEL DE ROSAS, 1829-1852. John Lynch. Oxford University Press, 1981. 414 p. EPISTOLARIO DE CECILO ACOSTA CON MIGUEL ANTONIO CARO, RUFINO JOSE CUERVO Y OTROS COLOMBIANOS. Mario Germ6n Romero, ed. Impr. Patri6tica del Institute Caro y Cuervo (Bogota, Colombia), 1981. 289 p. STUDIOS SOBRE ANDRES BELLO. Pedro Grases. Seix Barral (Barcelona, Spain), 1981. 2 v. FRIDA: A BIOGRAPHY OF FRIDA KAHLO. Hayden Herrera. Harper & Row, 1982. 256 p. $19.18. GEOGRAPHICAL CONCEPTIONS OF COLUMBUS: A CRITICAL CONSIDERATION OF FOUR PROBLEMS. George E. Num. Irvington, 1982. $10.50. Reprint of the 1924 ed. JOAQUIM NABUCO: POLITICAL. Paula Beiguelman, Florestan Femandes, eds. Atica (Sio Paulo, Brazil), 1982. 192 p. $7.00. MEXICAN POLITICAL BIOGRAPHIES, 1935-1980. Roderic A. Camp. 2d, rev., ed. University of Arizona Press, 1982. EL PENSAMIENTO VIVO DEL GENERAL SAN MARTIN. Arturo Capdevila. New ed. Losada (Buenos Aires, Argentina), 1982. 150 p. $3.50. PERUANOS DEL SIGLO XX. Jorge Basadre. Ediciones Rickchay (Lima, Peru), 1981. 171 p. Description and Travel THE AMAZON FOREST AND RIVER. Chillean T Prance, Anne E. Prance. Barron's Educational Series, 1982. $14.95. THE COMPLETE VISITOR'S GUIDE TO MESOAMERICAN RUINS. Joyce Kelly. University of Oklahoma Press, 1982. 527 p. $35.00. A CRUISING GUIDE TO THE CARIBBEAN AND THE BAHAMAS, INCLUDING THE NORTH COAST OF SOUTH AMERICA, CENTRAL AMERICA AND YUCATAN, 1981-1982. Jerrems C. Hart, William T Stone. Rev. ed. Dodd, Mead & Co., 1982. 600 p. $25.00. A FIELD GUIDE TO CORAL REEFS OF FLORIDA AND THE CARIBBEAN. Eugene H. Kaplan. Houghton Mifflin, 1982. 384 p. $17.95. GUIA DE TURISMO Y AVENTURAS DE LA ARGENTINA DESCONOCIDA, ARQUEOLOGICA Y MISTERIOSA. Federico B. Kirbus. Impr. Egisa (Buenos Aires, Argentina), 1982. 127 p.$5.80. LA PAZ: UNA CIUDAD INDOMITA. Mariano Baptista Gumucio. Biblioteca Popular Boliviana de "Ultima Hora" (La Paz, Bolivia), 1981. 107 p. $4.95. SOUTH AMERICA: RIVER TRIPS. Tanis Jordan, Martin Jordan. Bradt Enterprises, 1982. 2 v. VICTORIAN FREDERIKSTED: DETAILS OF 19TH CENTURY CARIBBEAN ARCHITECTURE OF FREDERIKSTED, ST CROIX, U.S. VIRGIN ISLANDS. Susan Brown. St Croix Landmarks Society (U.S. Virgin Islands), 1981. 122 p. $10.00. Economics AMARGO CAFE: LOS PEQUEIOS Y MEDIANOS CAFICULTORES DE UTUADO EN LA SEGUNDA MITAD DEL SIGLO XIX. Femando Pic6. Ediciones HuracBn (Rio Piedras, Puerto Rico), 1981. 162 p. $4.50. About Puerto Rico. COLOMBIA EN LA ECONOMIC MUNDIAL. Hector Charry Samper,et al. C. Valencia Editores (Bogota, Colombia), 1982. 288 p. $20.00. LE COMMERCE DU CAFE EN HAITI: HABITANTS, SPECULATEURS ET EXPORTATEURS. C. A. Girault. C.N.R.S. (Paris, France), 1981. 296 p. 140E LE COMMERCE ENTIRE LA NOUVELLE FRANCE ET LES ANTILLES AU XVille SIECLE. Jacques Mathieu. Fides (Montreal, Canada), 1981. 276 p. 102E 0 DESENVOLVIMENTO ECONOMIC BRASILEIRO. Argemiro Brum. Vozes (Petr6polis, Brazil), 1982. 222 p. $8.00. DEVELOPMENT OF THE MEXICAN WORKING CLASS NORTH OF THE RIO BRAVO: WORK AND CULTURE AMONG LABORERS AND ARTISANS, 1600-1900. Juan G6mez-Quifiones. Chicano Studies Research Center, University of Califomia (Los Angeles), 1982. LA ECONOMIC COLOMBIANA, 1971-1981. Emesto Parra Escobar. Centro de Investigaci6n y Educaci6n Popular, CINEP (Bogota, Colombia), 1982. 102 p. $8.00. LA ECONOMIC DEL INTERIOR EN LA PRIMERA MITAD DEL SIGLO XIX. Carlos Segreti. Academia Nacional de la Historia (Buenos Aires, Argentina), 1981. 208 p. $2.00. About Argentina. ENERGY AND DEVELOPMENT IN LATIN AMERICA: PERSPECTIVES FOR PUBLIC POLICY. Nazli Choucri. Lexington Books, 1982. DE EXPORT VAN CURACAOSE SLAVEN, 1819-1847. W E. Renkema. Van Gorcum (Assen, Netherlands), 1981. About the export of Curacaoan slaves. FARM AND FACTORY: THE JESUITS AND THE DEVELOPMENT OF AGRARIAN CAPITALISM IN COLONIAL QUITO. Nicholas R Cushner. State University of New York Press, 1982. 274 p. $42.50; $13.95 paper. EL INTERCAMBIO COMMERCIAL ENTIRE COLOMBIA Y VENEZUELA Isidro Parra Peiia. A. Pineda Editores (Bogota, Colombia), 1982. 306 p. $35.00. INTERNATIONAL COMMODITY TRADE AND LATIN AMERICAN-EUROPEAN COMMON MARKET RELATIONS. C. W M. den Boer, L F Hagedoom, J. H. Stroom, eds. Centro de Estudios y Documentaci6n Latinoamericanos, CEDLA (Amsterdam, Netherlands), 1982. LATIN AMERICA IN THE WORLD ECONOMY. Diana Tussle, ed. Nichols Pub. Co., 1982. 300 p. $40.00. MUJER Y CAPITAUSMO AGRARIO: STUDIO DE CUATRO REGIONS COLOMBIANAS. Magdalena Le6n de Leal. Asociaci6n Colombiana para el Estudio de la Poblaci6n, ACEP (Bogota, Colombia), 1981. 295 p. $25.00. THE NEWER CARIBBEAN: STUDIES IN NATIONAL DEVELOPMENT Paget Henry, Carl Stone, eds. Institute for the Study of Human Issues, 1982. 300 p. $24.00. THE NITRATE INDUSTRY AND CHILE'S CRUCIAL TRANSITION. Thomas E O'Brien. New York University Press, 1982. 232 p. PERU, 1968-1977: LA POUTICA ECONOMIC EN UN PROCESS DE CAMBIO GLOBAL Anibal Pinto, Hector Assael. United Nations Economic Commission for Latin America, 1981. 166 p. A PRIMITIVE MEXICAN ECONOMY. George M. Foster. Greenwood Press, 1982. 115 p. $22.50. Reprint of the 1966 ed. PUBLIC FINANCE AND ECONOMIC DEVELOPMENT: SPOTLIGHT ON JAMAICA. Hugh N. Dawes. University Press of America, 1982. 162 p. $19.75; $9.50 paper. PUBLIC MANAGEMENT THE EASTERN CARIBBEAN EXPERIENCE. Jamal Khan. Dept of Caribbean Studies, Royal Institute of Linguistics and Anthropology (Leiden, Netherlands), 1982. REVOLUTIONARY CUBA: ECONOMIC GROWTH, INCOME DISTRIBUTION, AND BASIC NEEDS. Claes Brundenius. Westview Press, 1982. 160 p. $21.00. 54/CAIBBEAN REVIEW SURNAME: ONTWIKKELNGSHULP EN DEMOCRATIC, EEN STANDPUNTBEPALING BETREFFENDE HET NEDERLANDSE BELEID TEN AANZIEN VAN SURNAME. M. van Schaaijk. Stichting ter Bevordering van de Studie van de Surinaamse Economie (The Hague, Netherlands), 1981. Economic assistance and democracy in Surinam. EL ZARPAZO DEL SIGLO: EL GRUPO GRANCOLOMBIANO SE GANA $1.800 MILLONES CON FONDOS DE INVERSION. Julio Silva Colmenares, et al. Editorial Surambrica (Bogota, Colombia), 1982. 102 p. $4.00. History and Archaeology BLACK EDUCATION IN THE DANISH WEST INDIES FROM 1732 TO 1853. Eva Lawaetz. St Croix Friends of Denmark Society (U.S. Virgin Islands), 1981. 90 p. $9.50. BRASIL: DO "MILAGRE" A "ABERTURA." Paulo J. Krischke, ed. Cortez (Sio Paulo, Brazil), 1982. 250 p. $9.00. CAPITULOS DE HISTORIC COLONIAL, 1500-1800. Joao Capistrano de Abreu. New ed. Universidad Nacional do Brasil, 1982. 338 p. $10.00. About Brazil. EL CASO DEL CANAL BEAGLE: PROCESS HISTORIC JURIDICO. Hemando Holguin Peliez. Editorial Bloque Andino (Bogota, Colombia), 1982. 245 p. $15.00. CATASTROPHE A LA MARTINIQUE. Philippe AriBs, Charles Daney, Emile Berth. Herscher (Paris, France), 1981. 136 p. 151.40E CHILOE ET SA REGION: PATAGONIE NORD- OCCIDENTALE, ETUDE DE GEOGRAPHIC HUMAINE. Philippe Grenier. Edisud (Aix-en-Provence, France), 1982. 500 p. $38.00. History of the Chilotean people of Patagonia. COLONIAL WORLD. C. Bannon. Forum Press (St Louis, Mo.), 1982. $5.75. CUBA: A HANDBOOK OF HISTORICAL STATISTICS. Susan Schroeder. G. K. Hall, 1982. $85.00. THE FLORENTINE CODEX: GENERAL HISTORY OF THE THINGS OF NEW SPAIN. Arthur J. Anderson, Charles E. Dibble. University of Utah Press, 1982. $35.00. GUERRA Y FINANZAS EN LOS ORIGENES DEL ESTADO ARGENTINO, 1791-1850. Tulio Halperin Donghi. Belgrano (Buenos Aires, Argentina), 1982. 275 p. $10.55. HISTORIC DA CIVILIZACAO BRASILEIRA. Therezinha de Castro. Rev. ed. Capemi (Rio de Janeiro, Brazil), 1982. 498 p. $12.00. HISTORY OF THE WEST INDIES. Thomas Coke. Irvington Books, 1982. 3 v. $49.00. Reprint of the 1811 ed. THE JEWISH NATION IN SURINAM: HISTORICAL ESSAYS. R. Cohen, ed. S. Emmering (Amsterdam, Netherlands), 1982. 120 p. Dfl.65. LA LLAVE DE LAS INDIAS. Nicolas del Castillo Mathieu. Ediciones El Tiempo (BogotA, Colombia), 1982. 382 p. $16.00. LOST EMPIRES, LIVING TRIBES. Ross S. Bennett, ed. National Geographic Society, 1982. 402 p. $19.95. MALVINAS: CRONOLOGIA DE UN DESPOJO. Jose A Landiero. Adrogue (Buenos Aires, Argentina), 1982. 63 p. $3.00. A' MARINHA DO BRASIL NA SEGUNDA GUERRA MUNDIAL Arthur Oscar Saldanha da Gama. Capemi (Rio de Janeiro, Brazil), 1982. 294 p. $10.00. MEXICO. James Cockroft Monthly Review Press, 1982. $24.00. MEXICO: FROM INDEPENDENCE TO REVOLUTION, 1810-1910. W. Dirk Raat, ed. University of Nebraska Press, 1982. ORIGEN DE LOS INDIOS DEL NUEVO MUNDO. Gregorio Garcia. Fondo de Cultura Econ6mica (Mexico), 1981. 419 p. $25.00. ORIGINS OF PRE-COLUMBIAN ART. Terence Grieder. University of Texas Press, 1982. 248 p. $19.95. PANORAMA DE LA ARQUEOLOGIA ANDINA. Rogger Ravines. El Virrey (Lima, Peru), 1982. 336 p. $10.00. PASAJEROS DE INDIAS: SIGLOS XVI Y XVII. Ministerio de Cultura (Spain), 1981. 2 v. 1.220 pts. PEOPLING OF THE NEW WORLD. Jonathan E. Ericson, R. E. Taylor, R. Ber, eds. Ballena Press, 1982. 364 p. $19.95. PRE-COLUMBIAN ART OF COSTA RICA: BETWEEN CONTINENTS, BETWEEN SEAS. Abrams, 1982.240 p. $35.00. PRECIOUS STONES OF THE JEWS OF CURACAO: CURACAOAN JEWRY 1656-1957. Isaac S. Emmanuel. S. Emmering (Amsterdam, Netherlands), 1981. Dfl.250. Reprint of the 1957 ed. LOS QUIMBAYAS BAJO LA DOMINACION ESPAIlOLA. Juan Friede. New ed. C. Valencia Editores (BogotA, Colombia), 1982. 294 p. $10.00. RECHT COMMERCE EN KOLONIALISME IN WEST-INDIE: VANAF DE ZESTIENDE EEUW TOT IN DE NEGENTIENDE EEUW. A. J. M. Kunst De Walburg Pers (Zutphen, Netherlands), 1981. Law, commerce, and colonialism in the West Indies, 1500-1800. SANDINO ET LA GUERILLA AU NICARAGUA. Comit6 de Solidaritd avec le Nicaragua, le Salvador et I'Am6rique Centrale de Lyon. Le Comit6 (Lyon, France), 1981. 92 p. 29.12E A SHORT HISTORY OF MEXICO. Selden Rodman. Stein & Day, 1982. 264 p. $14.95. Language and Literature LA ANGUSTIA VITAL DEL PUERTORRIQUENO EN LA OBRA DE RENE MARQUES. Isabel Velez Villanueva. Universidad Complutense (Madrid, Spain), 1981. 569 p. CHRONICLE OF A DEATH FORETOLD. Gabriel Garcia-Marquez. Harper & Row, 1982. 128 p. $10.50. EVOLUCION DE LA LRICA EN COLOMBIA EN EL SIGLO XIX. Femando de la Vega. Institute Caro y Cuervo (BogotA, Colombia), 1981. 172 p. $5.00. LA LITERATURE HISPANOAMERICANA ANTERIOR AL SIGLO XX. Juan Jose Amate Blanco. Cincel (Madrid, Spain), 1981. 188 p. LITERATURE AND POLITICS IN LATIN AMERICA: AN ANNOTATED CALENDAR OF THE LUIS ALBERTO SANCHEZ CORRESPONDENCE, 1919-1980. Donald C. Henderson, Grace R. Pirez, eds. Pennsylvania State University Libraries, 1982. LOS MEJORES CUENTOS BOLIVIANOS DEL SIGLO XX. Ricardo Pastor Poppe, ed. Editorial Los Amigos del Libro (La Paz, Bolivia), 1981. 358 p. $12.95. LA NOVELA HISPANOAMERICANA DEL SIGLO XX. Marina GAlvez Acero. Cincel (Madrid, Spain), 1981. 96 p. O TRABALHO E A FALA. ESTUDO ANTROPOLOGICO SOBRE OS FOLHETOS DE CORDEL Antonio Augusto Arantes. Kair6s (Sio Paulo, Brazil), 1982. 192 p. $5.00. WINGS OVER JAMAICA: A NARRATIVE NOVEL Zelma E. Duckett. Vantage Press, 1982. $7.95. Politics and Government BARBAROUS MEXICO. John Kenneth Turner. University of Texas Press, 1982. 354 p. $8.95. Reprint of the 1910 ed. CARBBEAN EVIEW/55 CAMBIO, CAMBIO: PLANES Y PROPUESTAS DEL MOVIMIENTO NATIONAL. Belisario Betancur. Ediciones Tercer Mundo (Bogota, Colombia), 1981. 267 p. $12.00. By the new president. CENTROAMERICA LFRENTE ROJO? Esmelin Lugo. Armitano Editor (Caracas, Venezuela), 1982. 379 p. Bs.50. Mostly about Nicaragua. CIENTO TREINTA ARTICULOS Y UNA SOLA IDEA SOBRE EL APRA. VictorRaul Haya de la Torre. Wilbert Bendezu Carpio, ed. El Virrey (Lima, Peru), 1981. 544 p. $15.00. COLOSSUS CHALLENGED: THE STRUGGLE FOR CARIBBEAN INFLUENCE. Michael Erisman, John D. Martz. Westview Press, 1982. 175 p. $20.00. LA COMMUNAUTE EUROPEENNE ET I'AMERIQUE LATINE. Institute d'Etudes Europ6ennes de I'Universite Libre de Bruxelles. University de Bruxelles (Belgium), 1981. 234 p. 95.40E Proceedings of a conference held May 9-10, 1980 in Brussel, organized by the IEE, the Centre d'Etudes de 1'Am6rique Latine de I'Institut de Sociologie, and the Vrije Universiteit, Brussel. ETAT ET SOCIETY EN AMERIQUE LATINE. Marcos Alvarez Garcia, Antonio Jos6 Martins, eds. University de Bruxelles (Belgium), 1981. 502 p. 80.30E GOBIERNO Y SOCIEDAD EN EL PERU COLONIAL: EL REGIMEN DE LAS INTENDENCIAS, 1784-1814. J. R. Fisher. Pontificia Universidad Cat61ica del Perd, 1981. LOPEZ CONTRERAS: DE LA TIRANIA A LA LIBERTAD. Sanin. Editorial Ateneo de Caracas (Venezuela), 1982. 429 p. Bs.60. MARTINEZ DE HOZ EN LONDRES. Osiris Troiani. El Cid (Buenos Aires, Argentina), 1982. 111 p. $5.00. About the Falkland Islands. MEXICO TODAY Tommie Sue Montgomery, ed. Institute for the Study of Human Issues, ISHI, 1982. 157 p. $12.50; $7.50 paper. LE NICARAGUA: LE MODELE SANDINISTE. Jean Michel Caroit, VWronique Soule. Le Sycamore (Paris, France), 1981. 222 p. $20.00. NICARAGUA: THE SANDINISTA REVOLUTION. Henri Weber. Schocken Books, 1982. 144 p. $15.95; $5.95 paper. NUEVA COLOMBIA, Luis Carlos Galan.Coeditores (Bogota, Colombia), 1982. 184 p. $10.00. By the presidential candidate. EL PAIS DISUELTO: EL ESTALLIDO DE 1820 Y LOS ESFUERZOS ORGANIZATIVOS. Carlos A. Segreti. Belgrano (Buenos Aires, Argentina), 1982. 396 p. $12.90. About Argentina. EL PAIS NATIONAL: FRENTE A LA SOLUTION DEL PARTIDO. Pedro Cadena Copete. Ediciones Tercer Mundo (Bogota, Colombia), 1982. 197 p. $9.00. About Colombia. EL PODER MILITARY EN COLOMBIA: DE LA COLONIA AL FRENTE NATIONAL Gonzalo Bermldez Rossi. Ediciones Expresi6n (Bogota, Colombia), 1982. 331 p. $24.00. POLITICAL CRIMINAL LATINOAMERICANA: PERSPECTIVAS. Eugenio Raul Zaffaroni. Hammurabi (Buenos Aires, Argentina), 1982. 172 p. $15.00. POST-REVOLUTIONARY PERU: THE POLITICS OF TRANSFORMATION. Stephen M. Gorman, ed. Westview Press, 1982. 240 p. $25.00; $12.00 paper. UNA PROPUESTA SOCIAL DEMOCRAT. Hector Villalon. El Cid Editor (Buenos Aires, Argentina), 1982. 212 p. $8.90. About Argentina. ,QUE PASO EL 9 DE ABRIL? ITINERARIO DE UNA REVOLUTION FRUSTRADA. Eduardo Santa. Ediciones Tercer Mundo (Bogota, Colombia), 1982. 230 p. $10.00. LA REPORMA CONSTITUTIONAL DE 1936. Alvaro Tirado Mejia, Magdala Velasquez. Editorial La Oveja Negra (Bogota, Colombia), 1982. 361 p. $15.00. About Colombia. REPRESSAO JUDICIAL NO ESTADO NOVO: ESQUERDA E DIREITA NO BANCO DOS REUS. Reynaldo Pompeu de Campos. Achiame (Rio de Janeiro, Brazil), 1982. 180 p. $8.00. REVOLUTION IN EL SALVADOR: ORIGINS AND EVOLUTION. Tommie Sue Montgomery. Westview Press, 1982. 128 p. $16.50; $10.95 paper. EL SALVADOR: BACKGROUND TO THE CRISIS. Central American Information Office. CAMINO, 1982. 148 p. EL SALVADOR: THE FACE OF REVOLUTION. Robert Armstrong, Janet Shenk. South End Press (Boston, Mass.), 1982. 260 p. $20.00; $7.50 paper. SANTA ANNA'S CAMPAIGN AGAINST TEXAS, 1835-1836. Richard G. Santos, 2d, rev, ed. Documentary Publications (Salisbury, N.C.), 1982. 171 p. $24.95. EL SAQUEO DE NICARAGUA. Rafael de Nogales M6ndez. Ediciones Centauro (Caracas, Venezuela), 1981. 360 p. $12.50. UN SIGLO DE POLITICAL COSTARRICENSE. Eduardo Oconitrillo. Editorial Costa Rica (San Jos6), 1981. 271 p. $15.00. A SOMBRA DO SISTEMA. Thomas Coelho. Paz e Terra (Rio de Janeiro, Brazil), 1982. 164 p. Brazilian politics between Castelo Branco and'Geisel. EL TABANO Y LA EMJALMA: SELECTION DE CRITICS Y DOCUMENTS. Bertha Hemandez de Ospina. Editorial El Globo (Bogota, Colombia), 1982. 375 p. $8.00. Critique of the L6pez Michelsen regime in Colombia. LA VIOLENCIA: APUNTES PARA UNA BIOGRAFIA DEL APRA III, 1935-1948. Alberto Sanchez. El Virrey (Lima, Peru), 1982. 243 p. $8.00. A VIOLENCIA BRASILEIRA. Roberto da Matta, et al. Brasiliense (Sao Paulo, Brazil), 1982. 120 p. $4.00. Reference BIBLIOGRAPHIC GUIDE TO LATIN AMERICAN STUDIES, 1981. G. K. Hall, 1982. $295.00. CARIBBEAN DATABOOK. Caribbean/Central American Action. C/CAA (Washington, D.C.), 1982. $20.00. DIRECTORIO DE SERVICIOS DE INFORMATION SOBRE FORMACION PROFESSIONAL DE AMERICA LATINA Centro Interamericano de Investigaci6n y Documentaci6n sobre Formaci6n Professional. CINTERFOR (Montevideo, Uruguay), 1981. 126 p. $10.00. GUIA ECLESIASTICA LATINOAMERICANA. Consejo Episcopal Latinoamericano. CELAM (Bogota, Colombia), 1982. 186 p. $9.00. NETHERLANDS ANTILLES: A BIBLIOGRAPHY, 17TH CENTURY-1980. Gerard A. Nagelkerke. Dept of Caribbean Studies, Royal Institute of Linguistics and Anthropology (Leiden, Netherlands), 1982. NETTIE LEE BENSON COLLECTION IN THE UNIVERSITY OF TEXAS LIBRARY AND LIBRARY OF CONGRESS. G. K. Hall, 1982. $295.00. REGISTERDEEL EN HISTORISCHE BIBLIOGRAFIE BU DE GESCHIEDENIS VAN DE NEDERLANDSE ANTILLEN. J. Hartog. De Wit (Aruba, Netherlands Antilles), 1981. Companion volume to his WHO'S WHO IN PUERTO RICO, VIRGIN ISLANDS AND AMERICAN SAMOA, 1982. Beacon Press Staff, ed. Beacon Press, 1982. 211 p. $59.95. Marian Goslinga is the Latin American and Caribbean Librarian at Florida International University. 56/CA1?BBEAN tEVIEw Ships' Registry: Norway "We had a great time.The S/S Norway isa beautiful ship. And the entertainment isbyfar the best."Mr Mrs.oh Noterman,SarasotaFL. "This was our first cruise and I thought it was really great. "To start with, aboard the S/S Norway you don't have to worry about reservations anywhere. For the price of your room, you have your meals and practi- cally everything else included. "The entertainment aboard the ship during the whole cruise was excellent. We had a really profes- sional performance of the Broadway show 'Hello Dolly.' One night Al Martino, the famous singer, gave us all a great show. And it's really hard to believe but even the television shows on the TV set in our stateroom were good. "A lot of times we had food that I didn't think they were able to serve aboard a ship. One night we had prime rib and another night it was a delicious roast duck. It was really very, very good. "All the different sports you were able to play aboard the S/S Norway were really surprising. I mean we were actually able to play volleyball and basketball. Imagine volleyball and basketball aboard a ship. I was really impressed!" For more information about one-week cruises departing from Miami aboard the magnificent S/S Norway- our $100 million resort- and her visits to St. Thomas and the unforgettable beach party you can enjoy on NCL's private Out Island, see your travel agent or use the attached coupon. We'll be glad to send you a free booklet about the S/S Norway that's full of hints and tips on how to get the most out of your cruise vacation. --- - -- -- -- -- -- -- -- m I Norwegian Caribbean Lines' I First Fleet of the Caribbean SNorwegian Caribbean Lines PO. Box 1111 Addison, Illinois 60101 SPlease send me your FREE S/S Norway cruising I booklet (#102). NAME ADDRESS I CITY/STATE/ZIP q , ,' AIR FLORIDA OPENS UPA WHOLE NEW WORLD TO THE BAHAMAS FROM NEW YORK Air Florida has the only daily non-stop flights to Freeport, the only non-stop flights to Rock Sound (Eleuthera) and a connecting flight to Treasure Cay. Air Florida also has daily service to Freeport out of White Plains. FROM MIAMI Air Florida has daily non-stop flights to Free- port and 20 flights a week to The Bahamas Out Islands: Treasure Cay, Rock Sound, North Eleuthera, Marsh Harbour and George Town. FROM WASHINGTON, D.C. Air Florida has daily flights to Freeport and connecting service to Rock Sound (Eleuthera). For information call toll free 1-800-327-2971. SAir Florida t' At our prices now everyone can go. |
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