A call for a better world society

 Colombia faced unfortunately two big hard shocks last week, first a political terrorism act what brought two deaths and second the alleged complicity of a “victim” in one of worst kidnaping and genocides faced by Colombia in 2002 which took place in public offices  at Cali and finished with the death of 11 hostages in colombian mountains. What society we have, my thought is that these events are a call to world society to work together to finish violence no matter who is: low income people or in most cases wealthy people in complicity with low income people. If we want to grow up as world society and be part of this space called life, we have to take fair actions  according to Law against terrorism. My point of view to mend this out of track is through a better education for everybody, specially in neighborhoods at main cities where income is low and work out in strong emphasis about democracy meaning for government leaders. Education for low income people has to be first class education no matter the paper money cost, at the end it is just paper money. Second we have to review monetary and financial sector recipes in order to bring real opportunities to people that face middle and low income, it must be ended the era of loans to close government friends and job opportunities to close government friends also, it will bring a cost but it is just paper money cost. The benefits of this, I think, is a better society which deserves better opportunities.

Author: Humberto Bernal,

Economist,

e-mail: zhumber@gmail.com

It can be download at:
https://docs.google.com/open?id=0BzkhS13UydIHNk5yazk2ZFE1VjQ


Colombia was a victim of terrorism act last week, there were two deaths (body guards), this irrational act does not belong to a world society which looks for recognition that can live without kill each others. Moreover, it was broadcast by media last week that the only politician alive of massive kidnapping at Cali (Colombia) in 2002 was an accomplice of this fact and the death of their coworkers. Therefore, it is call to colombian authorities and international community to review our policies to reach a better world society which let us to be part of this period called live. 

As a citizen which looks for a better place to live and is open to critics, I can say that one of main facts what rides us to this violence road is lack of education and opportunities to develop our dreams, for instance Colombia faces 0.55 from the poverty index called GINI and spend on education just 7.3% of GDP according to official figures but it can be less if one make the proper measure due to most of this spending goes to administrative duties instead to real investment such as more skilled teachers, better technology for learning and better infrastructure, as example the main library in Colombia named Luis Angel Arango does not have subscriptions to main world data bases ( in my field as economist  I will expect that this library counts with FDI market (www.fdimarkets.com), Jstor (www.jstor.org), ScienceDirect (www.sciencedirect.com) and The New Palgrave Dictionary of Economics (www.dictionaryofeconomics.com) but unfortunately counts with limited subscriptions such as Pro Quest, e-libro and E-ebrary. Moreover, this library shows a thousands of guests through month and it has an old tables and uncomfortable chairs, therefore what can we expect from a society which grows up in middle of this misery education?.

The most ironic is Colombia faces exponential economic growth and increase of resources from crude oil and mining extraction which could be invested in education but the real result is terrorism acts and more corruption in public sector as we already know. The right path must be more institutions for education in neighborhoods at main cities such as Bogotá, Cali and Medellín where most violent people grow up. In addition high education must go to rural areas and less developed regions no matter cost. We must be carefully, the actual economic principles are bringing us to this sad point, in other words: high economic growth and lot of extraction of resources brought us perverse income distribution and violence, these principles must be changed. 

The core of violence in democratic countries is a result of monetary and financial sector recipes mainly, monetary policy set that the main target is just inflation without income distribution, this is the first mistake, Central Banks have to look for income distribution under a well developed research, in addition this public servants have to focus on it without private incentives which take them out from this target. Second, Central Banks, Financial Sector and Government have to open opportunities to every body through easy loans (low interest rate, it must be close to inflation), these loans are usually given to government’s close friends and private banks’ owners which lend most of their resources to people who has lot of assents and few loans to low income people, of course this policy based on high coverture in credits will bring an increase of defaults but we have to work out on it through educational system, Greece is aware of it and due to old economic recipes forced by Monetary Union, this country will take the right decision to go out of this group.