OECS Telecom Liberalization:
The Organization of East Caribbean States(OECS) telecommunications industry, with the exception of Antigua Public Utilities Authority [APUA ], was owned by British Transnational Cable and Wireless Limited.
Subsequently with US$6 million from the World Bank and US$4 million from five (5) OECS member States: Dominica, Grenada,St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines in October 1998, initiated the World Bank Project towards OECS telecommunications liberalization, later followed by the regulatory framework.
On May 4, 2000 OECS leaders signed the treaty establishing East Caribbean Telecommunications Authority (ECTEL) a regional regulatory body.
And its terms followed by a Memorandum Of Understanding (MOU) signed on April 7, 2001 ending Cable and Wireless exclusive arrangements.
However, public opinion persist, the World Bank had influenced the outcome with funding and agenda for telecom liberalization in the OECS.
The World Bank Influence:
The World Bank clandestine manipulation was adverse to the interest of the OECS , but in support of US Federal Communications Commission (FCC) argument that cash settlement paid to developing countries Public Telecommunication Operators (PTO) needed to be lowered.
Since in 1996 more than US$5.7 billion was paid to developing countries in settlement rates.
Was the influence of U.S. telecommunications Transnational interest obvious?
According to a report: 'For Rich or Poorer?: The Impact of Telecoms Accounting Rate Reform In Developing Countries' was mandatory.
" The United States Federal Communications Commission (FCC) argues that US operators loose almost US$6 billion per year in what it calls "above cost" payments to other countries"
In a paper prepared by Dr. Tim Kelly for Telegeography 1998: ' Is There Life For The Accounting Rate System After 1998' further crystallized that point of view:
"[From] the FCC at least there is no talk of changing the systems, just reducing the rates to levels at which settlement payments would be reduced"
The US FCC argued that "80% of telephone calls from the USA and Europe terminated in the Caribbean" and as the primary PTO, Cable and Wireless and the Caribbean market was targeted for telecom liberalization; and tariff re-balancing by the US FCC.
US FCC Rates Against Developing Countries:
New US FCC tariffs was effective January 1, 1999, with rates reduction from 56.5% to 133%, settlement rates for Africa fell by 67% and South Asian countries by 17%.
Between 1993 to 2002 Antigua settlement rates was reduced by 270% according to US FCC data.
The developing countries loss was a significant saving for US telephone operators and consumers.
In 1996 Jamaica earned US$100 million accounting rate revenues from US telephone traffic; and Dr. Cezley Sampson of Mona Institute of Business Studies at UWI expressed concern that payment would be much lower from January1, 1999.
According to Dr. Sampson: "Reduction in settlement rates will reduce this inflow, affecting the country's foreign exchange earnings and balance of trade"
Dr. Sampson's critical overview of the economic implications and revenue loss applied to many developing countries.
Even the poorest of African countries benefited from settlement rates.
It is suggested that Caribbean service providers are now paying large sums to US telephony service operators, a reversal of fortune.
The money flow is now from South to North, and the World Bank business of deception continues to feed ignorance with enslavement as the rich gets richer.
Antigua Political Syndicate:
Even in Antigua and Babuda, the political syndicate is devastating the economy, and it is transparent that only the politically well connected seems to be the main beneficiary of "Democracy"
For the Antigua and Barbuda government to contemplate passing the Antigua Telecom Act empowering all trading partners with Most Favored National (MFN) status would be an unjust reward.
Consequently if there is no political will to confront the forces threatening APUAs ownership, the events of Antigua's 1918 Riot will re-emerge!
Does the Minister of Information and Technology Dr. Edward Mansoor possess sufficient expertise in telecommunications to deal with some of the most complex regulatory issues?
Dr. Mansoor is promoting a marketing stratagem that the reduction in telephone cost was due to the competitive industry, an obvious distortion.
Market forces was never responsible for lower rates but negotiations with Cable and Wireless reduced the cost significantly from a low of 9% to a high of 58% effective September1, 2005.
.
Liberalization In The OECS:
In the liberalized OECS telecom market, The ECTEL Report 2006 pg 11 focus on saving to the consumer and the socio-economic impact of liberalization:
"Telecommunication users in the region realize a collective net saving of EC$54 million (US$20,224,719)"
But it came with economic implications, and a reversal of fortunes. How much was collectively lost?
Probably a strategic approach for OECS national participation would have yielded more benefits for the OECS.
From the introduction of 1997 US FCC Benchmark Policy, the objective of saving billions was realized, and according to the FCC:
"Commission Staff estimates US consumer savings of up to $38 billion due to the decline in settlement rates from 1997 through 2002"
Antigua and Barbuda knows about gambling and winning a moral victor, but the money war is the US domain.
The settlement rates battle was won by US Telecom TNC not the OECS Government, OECS consumers or the National Treasury of any OECS Country.
Lowering tariffs always relate to cheaper rates per call after liberalization.
Antigua Consumers Interest:
If Antigua and Barbuda was to follow the same course, the cost for essential services, water and electricity would give rise to sky-rocketing prices out of consumer reach.
The US FCC confirmed a telephone subsidy system is in place in the U.S.A., but at the same time oppose developing countries so called "excessive cost' to finance telecom infrastructure and promote social program in Tird World countries.
The FCC assert US subsidy is in the consumers interest: "[In] which the cost of domestic network is not borne wholly by domestic subscribers in all cases"
The emphasis in Antigua and Barbuda is water and electricity: Is there a difference if both are kept within the range of household disposable income!
APUA Sustainability Promoting Public Good:
APUAs sustainability and essential development of public good is as important as Antigua and Barbuda ownership of the utilities industry.
In 1987 The World Commission On Environment And Development defined sustainable development:
"Development that meets the needs of the present without compromising the ability of future generations to meet their own needs."
The Battle Against Social Exclusion:
As inequity in this era of globalization is promoted, public sell-off and social exclusion continues the graphic defining moments; and the highlight of emerging consequences.
And in Thomas Friedman's Book 'The Lexus and the Olive Tree' pg 42 the outcome is clear:
"If that participation comes at the price of a country's identity, if individual feels their olive tree roots crushed, or washed out, by the global system, those olive tree will rebel. They will rise up and strangle the process"
We have witnessed the battles of social exclusion, and the overthrow of State bias as the struggle is waged continually in protection of African peoples cultural identity against cultural imposition.
Although there maybe doubts about
globalization in the West, some neoliberal outlook never change.
And as China rises as the second most powerful trading country with more than US$1.33 trillion in reserve that can reshape countries and destroy economies there is now doubt.
Or could it be that globalization long awaited economic benefits for people and countries resulted in economic dilemma and devastation of millions of livelihood.
According to PEW Global Attitudes research: "There are signs that enthusiasm for economic globalization is waning in the West- Americans and Western European are less supportive of International Trade and Multinational Companies than they were five years ago"
Neoliberal Conscience is Lost :
And many neoliberal are unconcerned and stoned silent when the South is pillaged and it has been happening for hundred of years and continues today with free trade agreements and exploited workers from Haiti to Sub-Sahara Africa.
Today, the destructive European Partnership Agreements (EPA) is ready to brutally peel the economic livelihood of small farmers and pauperize development in Africa, Caribbean and Pacific (ACP) group of States, and not a word of condemnation is heard!
The free market doctrine of Reagan and Thatcher is now questionable but proponents continue to support the inequity of a system that has created hardship for many and also turn a blind eye to World Bank privatization and continuous sell-off of developing countries asset.
The Wolrd Bank Promotes Privatization:
As the World Bank privitziation plan of public sell off continues, it is escalating even more: "In 2004-2005 62 Developing countries carried out nearly 400 privatization transactions worth US$90 billion"
And the World Bank is the principal financier of privatization particularly: telephone, water, and electricity.
Digicel is a recipient of International Finance Corporation (IFC) a World Bank Group funding to fully participate in the telecom takeover.
The Impact of Globalization
There is a need to think critically about how trade and economic policies impact the lives of people in developing countries; and be concerned that between 1989 and 1996 in Jamaica:
"66 privatization occurred for accumulated proceeds of almost US$500 million" according to a report: 'The Evolution of Structural Adjustment And Stabilization in Jamaica " by Damien King
And that Jamaica's dollar was devalued by 95% between the end of 1987 and May 1988.
Many Caribbean countries endured similar fate of economic devastation and absolute hardship because of The World Bank Privatization and currency devaluation.
During Guyana's adversity in 1991 Atlantic Tele-Network (ATN) of the U.S.A acquired 80% of Guyana Telecom Corporation for US$17 million.
Guyana's currency was valued at G$10 to US$1 in 1988 and depreciated to G$144 to US$1 in 1995.
Additionally in 1991 Omari Gold Mines Limited (OGML) a subsidiary of Cambior (Canada) own 75% and Golden Star (Canada) own 20% of Guyana's mining rights; and the State of Guyana with only 5% negotiable after the tenth or twelfth year.
Then there was the era of struggle in Trinidad and Tobago against the International Monetary Fund (IMF) and World Bank Policies of destabilization and privatization that inflame protest and social chaos in 1990.
IMF and World Bank Incite Popular Protest.
Civil unrest against the neoliberal austerity measures of the IMF and World BANK started as early as 1988 in Algeria against high prices.
Uunemployment,demonstrations in Jamaica against fuel increase, strikes in Bolivia, revolt in Trinidad and Tobago on July 28, 1990 more than 50 people killed.
In Papua New Guinea many students killed when thousands rallied against planned privatization of government services.
Protest halted privatization in Peru, Ecuador, Paraguay and Uruguay and that struggle continues in Haiti with labour unions leading the demonstrations.
How much more of our assets must be sold before we say Enough Is Too Much.?
Antigua and Barbuda must protect public interest and fight against the Columbusization of our economy.
Kwame Nkosi Romeo
aka Bombshell Romeo
