Hamjatta,
Thanks for your contributions again. The 'currency tax' is certainly
something worth looking into in order to be able to fend off attacks from
the Soros' of this world. We must also realize however that when it comes to
private capital inflows, the so called developing countries are competing
with the Eastern Bloc countries and capital markets in the West. The
comparative advantage (if you can call it that) we currently have in paying
very high returns on investment (sometimes even higher than the U.S. stock
market) would probably be lost if we impose such a tax. I think we should
see these funds for what they really are; that is short term capital. We
would therefore use them accordingly by not investing them in long term
capital projects that do not yield immediate returns. Such projects can be
financed by capital from multilateral bodies like the World Bank and AfDB. I
do not pretend to know how to go about limiting the flow of capital to the
private sector in the developing countries or ensuring that the private
sector put the money they receive from 'hot money' transactions into good
use. That I would live to more seasoned thinkers. Lastly on this topic, I
submit that 'hot money' can be a good thing if we in the developing
countries can play the 'confidence game' well enough and invest the proceeds
of 'hot money' appropriately.
On Yaya and the massacre of April 10 and 11, let me say that it gives me no
joy advocating for Yaya to be removed by force. I reiterate that I will be
more than happy if he is removed through free and fair elections. I always
say that I want him removed by any means necessary; not just through the use
of force. I did not reach this stage overnight. This conclusion was reached
by me and many after we analyzed the situation and realize how hopeless the
plight of Gambians are. You are right about people's outrage after the
aftermath of April 10 and 11. But were they outraged enough to call for the
removal of Yaya forthwith? You even have prominent people coming out to
blame the dead children. Not just ardent Yaya supporters, but ordinary
Gambians who are afraid to face facts. What would it take for them to remove
Yaya? Killing 100 children? I can bet anything that if we held elections in
Gambia today, Yaya will win if he wants to. This is not an indictment on the
Gambian electorate. The guy will simply rig the elections like he did
before. Yaya might be foolish, but he does not hate himself. He knows that
people will be after him if he is defeated in an elections and reduced to
being an ordinary citizen again. Not just him, but a lot of his supporters
will suffer. Commonsense just tells us right there that the guy would not
want to leave voluntarily. So you then say, let's give him immunity together
with all the money he has stolen. To that I will reply, he still would not
leave us in peace. In Sierra Leone, they gave Sankoh immunity, a mansion,
all the money he already stole, and the ability to steal some more by
leaving him in charge of the mines. Still, there is no peace in Sierra
Leone. The predicament we are in right now, calls for drastic and decisive
action. Yaya has to be defeated in a manner that would bring peace in the
country. We don't want to give him and his supporters the ability to regroup
in the bush and attack us under the cover of darkness. In conclusion, I
would say that am not a violent person who does not respect the rule of law.
I also recognize the inherent dangers involved in engaging in this cycle of
violence. Which is why we will draw a clear road map to lead us back to
peace and justice. At the moment, this is the only viable option I can come
up with in order to avoid another April 10. Like I said before, the forces
advocating the removal of Yaya through free and fair elections and those
forces advocating his removal BY ANY MEANS NECESSARY, are not mutually
exclusive. We can agree to disagree. I totally understand and respect the
principled position you took on this subject. If we were dealing with a
civilized person I will be side by side with you advocating for free and
fair elections. Unfortunately, we are dealing with a callous person who
would order the murder of children in brought daylight and then have the
cowardice to deny it. The events unfolding in Sierra Leone is quite
instructive to us Gambians. I urge everyone to follow carefully what the
consequences of the Lome Accord is doing to ordinary Sierra Leoneans.
KB
>From: Hamjatta Kanteh <[log in to unmask]>
>Reply-To: The Gambia and related-issues mailing list
><[log in to unmask]>
>To: [log in to unmask]
>Subject: Re: On The Meltzer Report: In Defence Of Moderation
>Date: Mon, 8 May 2000 19:18:11 EDT
>
> KB,
> For a non-economist like my humble self, you have clearly made very
>impressive thumbnail sketch of the main thrusts of the issues raised.
> Indeed you are spot on when you discerned that I have not exhausted
>the
>issue of "hot money" that is very central to many of the financial
>meltdowns
>of recent memory. However, my lack of exhaustion on the issue is due to my
>scepticism and lack clarity on how much control is necessary on these
>so-called "hot moneys". Indeed this is the same type of scepticism
>expressed
>by renowned MIT economist Paul Krugman when he wrote: "Well, as long as
>countries are wide open to massive movements of hot money--to huge inflows
>when the markets like them, then to equally large outflows when confidence
>is
>shaken for some reason--the answer is no. As long as capital flows freely,
>nations will be vulnerable to self-fulfilling speculative attacks, and
>policymakers will be forced to play the confidence game. And so we come to
>the question of whether capital should really be allowed to flow so freely.
>Of course it is not easy to limit the international movement of
>capital-atleast not without threatening to strangulate international trade
>as
>well."
> But again James Tobin and Gustav Ranis has a suggestion worthy of
>mention
>here. They suggested that:
> "To avoid attracting hot money, a Chile-type tax or special deposit
>could
>be required of inflows. In the longer run, an internationally negotiated
>tax
>on currency transactions might deserve consideration."
> This suggestion could be a starting point towards harnessing most of
>the
>greedy swashbuckling speculators who have wreak so much havoc on financial
>systems in recent memory.
> On the issue of Jammeh, I am afraid I wouldn't buy into any scheme
>well
>meaning as it might sound and be, this idea of the use of force to get rid
>of
>Jammeh if need be. If sceptics like me are now convinced that electorally
>Jammeh can be emptied into the dustbin of history, surely you should also
>go
>with the flow. Just check out the public reaction after the 10th. and 11th.
>April murder of school kids by Jammeh. The Gambian People are simply
>disgusted with this tyranny and are showing signs of it. April 10th. and
>11th. might turn out to be just Jammeh's Waterloo.
> I have to go now. Hope you join the peaceful efforts in emptying
>Jammeh
>in the trashbin of history where he deserves to be with his lickspittles.
>Good morning
>Hamjatta Kanteh
>
>
>hkanteh
>
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