REPORT #477 March 2002
FIXED PRODUCTIVITY, VERSUS LOAN BORROWING GOVERNMENT AND OR SAVINGS RUN GOVERNMENT!


Produced by the Belize Development Trust

by Ray Auxillou

The PUP party of Belize and also the philosphers of that party and academic intelligentsia of the old colonial capital in the port town of Belize City, half way along the coastline of the country; have always claimed that trying to run a country with such a small population requires an expensive government more than the country can afford.

This rural fisherman and tourist guide from Caye Caulker says, BALDERDASH! If that is the level of thinking of the parasitic non productive academic and political psychophants of the old colonial capital; we should re-structure the political system to stop giving them control of the government by population representation and shift to geographic district controls of national policies so rurals control national policies.

Let us look at a statistic. Of the 240,000 population of Belize, 24,000 is the available working adult labor force. ( statistics arrived at in an earlier Development Issues Report ) Of this, 40% ( a very large part come from that parasitic academic crowd of the old colonial capital, Belize City ), or 9,509 adults of our available productive force live off the other 14,491 workers. Mostly in the rural six districts.

To produce the $360 million Belize currency a year, or $180 million USA foreign exchange a year that the country of Belize Government earns as revenue, only 14,491 producing adult workers are doing this.

Since from the time of Colonial Days, when this was British Honduras and starting during all the Self Government years during the autocratic rule of the PUP party under the Caudillo, George Price and since Independence, the PUP political party propoganda machine have claimed that they could not provide the apparatus of a central government on the money that the ex-colony earned. They have tried every scheme and sales pitch under the sun, to generate more money for the central government, meaning themselves. In the meantime, they continued to borrow from all and sundry, the amounts of money they said was necessary to govern a country like Belize with the British Parliamentary style of government, until we are in hock to our eyebrows with $2 BILLION Belize Dollars, so say the Opposition Party the UDP.

But the statistics show that this DEBT has to be paid back by 14,491 workers. We can increase government revenues, but by doing two things. The tax increase thing has run it's course and is now counter productive and stifling the economy.

The two things we require are:

a) Reduce the size of government by political restructuring and thus INCREASE the available workforce to productive and hopefully export orientated products and services. Let ingenuity and the profit motive decide how that will play out. But the productive capacity of the country needs more labor. The only labor we have under utilized are drawing government pay cheques.

Let us reorganize the way government is done? We need to throw out the British failed Parliamentary system ( an exploitive monopoly small party control model ) and try something else? We need to restructure! ( like, as in our successful Credit Unions and Cooperatives )

We also need to shift our human resources from a government pay cheque, to productive capacity. ("If they are so smart, why aren't they rich?" ) We can restructure national government to only require 1440 people. Local government of part timers will do the rest. That will give the productive capacity of the country in human resources, 8,069 people; that will have to figure out a way to earn a living outside of a government pay cheque. They have the education, they will find a way! This will increase our human resources capacity by 56 %.

In academic theory at any rate; this means the government revenue which averages $360 million Belize a year would also jump 56% to $561 million Belize per year. And so far it has not cost a cent and the government actually cuts costs and puts more individuals to work with a part time local government pay cheque at the local level.

The mania that the PUP political party have; that they have to borrow foreign exchange, to support the parliamentary style monopoly exploitive model of British government is out of fashion for at least sixty years.

Let's face it, whether we BORROW to run government, or SAVE to run government and provide services and infra-structure; those same 14,491 productive people that are producing what wealth the country has and that average $360 million Belize a year the government revenue is; are doing a herculean task. But there is no more! They are tapped out! The answer the PUP constantly give is that there is not sufficient money to run government for a nation like Belize. Balderdash I say!

RESTRUCTURE the political equation. Start from the premise you are going to run the country, or national government with 1440 people. That is the top limit. Then work backward from there!

b) The rationalization for borrowing is wrong! Like a child with the need for INSTANT GRATIFICATION, the PUP political party have been borrowing and borrowing and borrowing and borrowing, for decades. This has got to stop! Whether you borrow, or you save, the same 14,491 productive people ( your human resources) have to produce the money to pay the loans. If you save, you postpone instant gratification and provide self sacrifice and pay cash. A person who pays cash, is master of their destiny. A person who borrows, mortgages the future, and eliminates the future and any opportunities and choices the future may offer.

It is better for Belize to RESTRUCTURE politically and cut costs, and SAVE and postpone for a while many things, until the debt is gone. With savings, the future and opportunity are there for the whole nation because of choices. With loans, there is no future! Only debt repayment and slavery to offshore lenders.


Let's look at some realistic figures, not the BALDERDASH put out from Belmopan derived from imported expensive foreign academics who ignore our villages and rural self sufficient farmers.

85% of the population of Belize live off less than $5000 Bz per year. For foreigners reading this the equivalent is $2500 USA per year.

A middle level business person running a small business, will GROSS before taxes and other operating costs about $36,000 Belize per year, or $18,000 USA per year. An upper level middle class business person who is successful, by local standards, will GROSS before taxes and other operating costs about $60,000 Bz per year, or $30,000 USA per year.

Let us compare those middle and upper class business GROSS incomes before costs, with salaried employment on a Belize government pay cheque.

The highest salaried chauffer ( vehicle driver) of a political party Cabinet Minister under the PUP earns $63,597.25 this past year. According to the newspaper figures published recently, this peron was Robert Wagner of the Ministry of Finance, the driver of the party hack, who is reputed one of the mafioso clique running the country, from the port of Belize City. The lowest driver chauffer for a political party member was Pedro Briceno with an income of $24,614 for last year according to the media.

In the Department of Budget and Planning, the highest salaried person was Louis Lue who collected $94,400 as an Investment Advisor. Considering the UDP opposition party claim this department has recommended and implemented policies to create $2 BILLION in national debt, of which most has been done in the last three years of PUP political party rule; I question whether the guy's advice is worth two cents? Most all other people in the department are making salaries from government cheque of over $40,000 Belize a year. The lowest abberation was Winston Smiling with $18,000 Belize as an income, who does revenue collection.

Now you do some comparisons, between what 85% of the people of Belize earn per year, versus what the middle class GROSS AS A BUSINESS on average and what the higher middle class earn, to the earnings of working as a Chauffer, or driver for a British style political party mafioso run Cabinet Ministry position and see if there is any logic to how this political government is operated, organized and run?

You can draw your own conclusions! If you are going to make changes where would you start?

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