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Stabroek News

Poverty and inequality
published: Monday | October 23, 2006


Beverley Anderson-Manley

It is now fairly well established that the majority of countries in the Latin American and Caribbean region, including Jamaica, have failed to deal effectively with issues of poverty and inequality. Even when these countries manage to grow their economies, a critical reason that prevents them from eradicating poverty and inequality is corruption - the extent to which elements in society have become so embedded in corrupt practices - that they are unable to clearly distinguish between what is right and what is wrong.

Several studies from multilateral agencies like the World Bank show that there is a high level of correlation between corruption and poverty. From the perspective of the World Bank Group: "Corruption is an impediment to growth and poverty reduction. Corruption limits opportunities, creates inefficiencies and forms additional barriers to the smooth delivery of services. Corruption cumulatively undermines progress towards achieving development objectives, not least - as its impact is most adversely felt by the world's poor."

So when something like the Trafigura affair is revealed in our society, we need to be reminded of these links between corruption and poverty, so that among other things, we understand how and why corruption keeps the poor in a state of perpetual poverty. Corruption is like a virus; like a poison that affects the quality of life of all our people and in particular, the poor. Corruption is contagious.

Corruption, is not theory. It has significant, practical and negative consequences on the everyday life of women, men and children. As the World Bank Group states, the impact of corruption "is most adversely felt by the world's poor."

High Cost of Corruption

Corruption exacts a high cost, particularly when it takes its most invasive form. Often, it is only then that there is an outcry from civil society and perhaps, at that time, some action takes place on the part of policymakers and bureaucrats, until the next incident occurs.

One of the costs of corruption is good governance. Corruption is inimical to good governance. When corruption becomes endemic, no amount of economic growth can result in the eradication of poverty. Corruption has a particular stench to it. The stench is embedded in both our central and local governments.

Too many individuals and organisations benefit from corrupt practices. Which individuals and groups are getting the payoffs from these corrupt practices? What kind of interventions are necessary to break this cycle of corruption? When did we, as a country, get to the stage where we no longer know what is right from what is wrong?

Countries experiencing a decrease in corrupt practices begin at the top and follow the corruption trail wherever it leads. Then and only then can we, through our actions, demonstrate that we are against all forms of corruption. Only then can the eradication of poverty become a real possibility.

In bringing closure to the Trafigura scandal, the People's National Party (PNP) needs to accept, as a group, that wrongdoing took place. Steps must be taken to ensure that this type of episode does not recur. Party members who are hurting over this issue - party members who are outraged at what has taken place - must take a powerful stand now to redeem their party and their country.

In the 1970s, members of the PNP were reminded constantly by its Leader Michael Manley that left to themselves, political parties quickly degenerate into machines for attacking opponents, distribution of benefits and the winning of elections. When the political party degenerates into a machine solely for winning elections, the cost is high and this can result in the subordination of core principles like integrity.

The Trafigura affair provides lessons not only for the People's National Party but for the Jamaica Labour Party and indeed, all of Jamaica.

Beverley Anderson-Manley is a political scientist and gender specialist. Email: BManley@kasnet.com

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