lunes, 13 de abril de 2015

Comprehensive development plan for Latin America

Comprehensive development plan for Latin America

Copyright © Germanico P. Vaca
(;blog: )

The entire continent of America needs a radical change that will allow real progress in every front: economic, commercial, industrial, and agricultural, as well as tourism development are much needed. We are faced with the challenge to find real solutions. 


I could spent countless hours detailing the ills of the economy in the United States and the rest of the world, and I could waste my time debating the ideological and political environment in Latin countries. Let us not waste our time in debates. Let us create a plan.

In the aftermath of the 2008 financial crisis, financial regulators and central banks across the world assured us that we could have a financial system more stable, increasing bank capital and liquidity requirements, developing bank resolution plans, and requiring derivatives trading to go through central clearing houses. It is probable that a financial crisis in the short term may have been solved.  But they have still failed to address the fundamental issue – the ability of banks to create credit, money and purchasing power, and the instability which inevitably follows. As a result, the reforms agreed to date still leave the world dangerously vulnerable to future financial and economic instability.  It serves no purpose whatsoever to continue to argue in the grounds of politics or ideology as we all have our different perspectives about it. We need specific action and for that we need a plan to confront the problems head on, by providing economic solutions. The only thing that matters is that we need to create jobs for our children, otherwise what is the purpose of education, living and working? We need a plan, period.
To that end independent public corporations should be created so that each country can be represented equally, while they will have government oversight, at the same time it can operate independently as a corporation without government restrictions and bureaucracy, but rather as free enterprises with their own budgets. To achieve such goals the treaty will:

This is a plan for the comprehensive cooperation for integral development of all countries in the Americas. To this end we need to make a commitment, an investment and a full effort with one single purpose. The improvement of humanity through a concerted cooperation and investment to develop our countries. World leaders must make their commitment to freedom and peace, we must maintain sovereign principles, freedom and independence and desist those imperialistic goals of a "new world order" that has only resulted in chaos and despair, and could only result in World War III, which has only one meaning: No one Wins. This way we grow together. The path of war is a road to nowhere but destruction, so any miss guided effort to re-initiate an arms race is beyond stupidity. 

Therefore we must pursue the creation of a “Peace and Unity Treaty”. An intercontinental network of transport and communication to serve as a massive initiative to create jobs through infrastructure building with mutual cooperation among all participant countries, which will allow the growth of industry, trade, tourism, and communication between all countries. The obvious benefit for the United States is the financing, the technological know how and the thousands of jobs from engineering, design, bridge and road building, metal and machinery sales. It will be huge.

1)     Build a railroad network that will cover all Latin American countries and connect with a network of s new and sophisticated train system in the United States such as the world has never seen, even better than the Chinese and Japanese. .
2)     Expand four ports that will serve as hubs of entry and exit for large scale imports/exports to Asia.
3)     Implement an initiative for the modernization and technological advance of Latin America.

The importance of this treaty can be resumed in the following points:

a)     The construction of a network of train systems in every country in North, Central and South America that will create an intercontinental system of mass transportation with the goal of opening new markets for exports, commerce and industry. It will reach the most productive agricultural regions on the continent, the best fishing towns, the best gold, silver, copper and steel mines, the best factories of all kinds of products in every nation. Opening international markets for everyone and creating the roads to major access for large scale commerce.

b)    The agreement will empower people in the Americas, it will motivate new investment in agriculture, industry and commerce. It will benefit greatly all communities. It will be help trade, industry and tourism. The railroad network to be built could be joined and integrated to the United States, and to the proposed large scale ports that will serve as gateways to Asia.

c)     The agreement would provide the framework and financing to build an advanced fast train systems in every participant country that will interconnect at the borders of countries to transport products and people, and even a line of “super-fast railroads”. Imagine the opportunities that will open up if in three hours you could go by train from Buenos Aires to Quito. The cooperation of the United States, Japan, China and all Latin countries is vital. The development, construction and design of these new systems will create thousands, if not millions of jobs in all nations and will challenge the use of new technologies as cooperation of scientist, investors and inventors will be needed to meet the geographical challenges, the engineering and architectural challenges to build on the jungles of Ecuador, Colombia, Venezuela, Peru and Brazil, in the mountains of the Andes, and the deserts of Chile and Argentina, and the altiplano of Bolivia and Peru. It will require great infrastructure building in a scale that it has never been seen in the continent.

d)    The agreement will finance and launch an implementation of the most advanced technologies in mass transportation for the renewal of existing trains and the building of new railroad systems. The combination of which will allow integration of the economies, development in all countries, construction of the greatest infrastructure ever seen as bridges, tunnels, train stations, warehouse buildings, trade fair buildings, malls, new hotels, new housing will be motivated as a result of this plan. It could facilitate further cooperation in all industries, agriculture and commerce, it will trigger a new era of tourism.  

e)     The agreement will help create three commissions: One for technology, one for finance and one for the legal framework of operation. Later this will result in the creation and organization of an institution composed with three representatives (1 economist, 1 engineer and 1 lawyer) for each member country. This international institution will then coordinate, organize, plan and budget the proposals contained in this document.

f)     This agreement will acquire, facilitate and finance the most advance super computers to keep track of the thousands of jobs being created, the contracts and the companies, the bus gets and the legal framework, national and international laws and regulations, investment of each sector and companies, payments and purchases, lists of corporations involved, the logistics of transport, the machinery needed, fair salaries, fair practices and fulfillment of the plan and its implementation. But not only that, it will ask the best software corporations for the creation of computer programs that will help in the design of each system, each train, each railroad track. As well as the programs for the operation and scheduling once the railroad system begin operation. It could be even ideal the creation of a program that will help in the decision making when it comes to cost and it will track performance of each corporation involved and the fulfillment of their obligations.

g)    The development of this project will increase employment in all sciences and thousands of civil, electrical, and industrial engineers. All professional organizations could establish a system of mutual cooperation with their colleagues from other countries. All universities could initiate programs of international cooperation in all their departments and cooperation in all fields could be unequaled as never before. Towards this goal this agreement will promote a study to unify all university programs for international acceptance and recognition. Certification of Universities by an international University Board so we will no longer have to re validate degrees in each country. This agreement indeed will improve cooperation in every field. From archaeologist and geologist, from biologist to engineers will have plenty of discoveries to be made. Great progress and development will come from exchanging knowledge and experiences. The greatest era of cooperation will come from working together for the development of all countries. The greatest advantage will be the economic cooperation of all the nations of our continent.

h)     The agreement would aim to create an expansion of trade and industry development between North America and Latin America and the rest of the World. To that end an economic plan of equal tariffs and taxes should be tried for the next five years. Equal opportunities and fair commerce practices cannot be achieved if each nation operates under their own rules. While total respect for the constitution of each country and the absolute respect for the laws of the member nations is an integral part of this agreement. An international treaty must be made to implement the rules, regulations and obligations of this agreement. Towards this goal a “mediation board” must be created.

i)      The agreement will help plan, build and construct the expansion of the gateway ports of San Lorenzo in Esmeraldas Ecuador and Manta in Ecuador to serve as points of entry to the continent to import and export from Asia and the rest of the world. While a port in Mexico and Chile can be implemented also to make trade and commerce much more effective. It could be ideal that most South American countries could increase their exports of agricultural products, metals, and all natural resources, while we import much needed machinery to motivate small industry at the lowest possible price dealing directly with Asian factories. The ability from all sides to increase their imports/exports will result in great progress in commerce. Indeed the United States cannot continue being the “world consumer”. Products to be exported from South America could all go to the ports in Ecuador by the new railroad system to be built, and from Ecuador to all Asian nations and the United States, while the reverse can also happen and most imports from Asian countries can come directly to Ecuador and be distributed there to the rest of the continent. The reason is that transporting everything to one single country could provide many benefits. Ecuador benefits of ocean currents on the Pacific Ocean and the Amazon River on the other side, and several navigable rivers allow rapid transport of all products. The benefit is huge for countries like Brazil, Uruguay, Argentina, Paraguay and Bolivia because the prices and time of export will be reduced considerably and that will reduce prices for consumers in both sides of the pacific. Therefore cost could be reduced and exports will increase exponentially as much needed products for industries could reach their destination much faster; as well as products that could not be exported to Asia before from Latin countries because of length of time and they could go to waste. Large Super Cargo ships can come loaded from China and unload completely in Ecuador and distributed form there in the new railroad system and even by plane. Other small cargo ships will take over the distribution and through the railroad system things can be shipped directly in the fastest way to several cities of all the continent from the Ecuadorian ports, reducing all kinds of logistics of transport and cost. The commerce and the growth in all industries, exports and jobs could bring the greatest prosperity to the continent. To that end opening ports of Napo and Aguarico could allow such trade directly through the Amazon River. Hence the construction of a railroad line between Manta-Ibarra and Napo could allow transport of all Brazilian products.

j)      The agreement should aim for the reduction of tax tariffs across the boards in all participant countries. Some products could be exported with only 5% tariffs and other with no more than 15% of tariffs. Otherwise the citizens of Latin countries are paying extremely high prices for products, machinery and food imports. There is no such thing as FREE TRADE, but a reasonable amount of tariffs and taxes should be paid. In exchange all the necessary loans from North American and Asian countries should be able to finance this investment. At the same time an investment of at least 15% by each participating country should be expected. On the one hand China cannot cope with having millions of unemployed in their factories if the dollar collapses. The massive losses of bonds and securities held by China in USA dollars cannot serve any purpose. To this end investment is needed to inject money, provide loans and investment. However the rules of Breton Woods are often manipulated and such influx of money can be used by money usurers such as the Federal Reserve to cause massive inflation in all Latin countries, and the devaluation tool could be used to take advantage of our countries. Therefore this plan has been submitted to all nations so we all can deal in the most honest ways knowing what is at stake.

k)     This agreement should implement an economic framework for a fix rate for all Latin currencies for at least five years until proper restructuring of the World economy is achieved.  While China and the United States wishes and wants the natural resources of Latin America, Latin America need to increase production of agriculture and industry. We all benefit by working together and avoiding economic chaos and war.

l)      This agreement has as principal objective to create jobs for millions of people and to that end we need to establish a legal frame that will provide visas, facilitate travel, communication and will permit the creation of department of coordination in the embassies. Thus citizens that are from Argentina could be informed properly of requirements and duties to follow if they are to work in Mexico or Ecuador and vice versa.

m)   This agreement must also create some rules for the protection of consumers as the plan intends to drive development. It will also create consumers. Millions of people employed and thus people that perceive a constant salary become consumers, thus propelling trade; Tourism from Asia and from Latin countries can also be expected; cooperation in a constant flow of scientist, professionals in all fields and technicians from Japan India, China, Korea and other countries to visit and travel with their families to Latin countries and vice versa. While, also in Latin America will enter a new era of cooperation and development. But millions of new consumers should also enjoy protection so we can keep a lid on real estate speculation, scalping of prices, and protection so tourist and workers are not taken advantage.

n)     Countries that are party to the agreement must facilitate mutual cooperation to "stabilize" prices of tariffs on all countries to allow fair trade product, setting the same rate will increase trade and any losses resulting from the reduction of tariffs and taxes will be offset with the huge increase in trade volume.

o)    The members of the trade treaty could benefit from the most ambitious cooperation and development between all countries, which can ignite their economies and industries. To that end Better Business Bureaus and cooperatives trade associations and commerce organizations should be motivated to work together at an international level for recognition and support. 

p)    The members of the treaty could agree to create a fair system of investment for the purpose of motivating that wealth reaches all members.

Continues to Second Part

No hay comentarios:

Publicar un comentario