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Santo Domingo.- Canada ambassador Georges Boissé affirmed Tuesday that Ottawa’s more than US$100 million in economic cooperation, technical assistance and development projects during six decades of diplomatic ties and trade relations have improved the standard of living of thousands of Dominicans.

Stressing that Canada is the nation that provides the second highest foreign investment in the country, the diplomat said the projects include the areas of tourism, construction, housing, education, religion, health, energy, mining, recreation, as well as contributions in banking and sports.

The diplomat said Dominican Republic has a favorable trade balance with his country of nearly US$1.1 billion, since Dominican exports to that nation topped US$1.2 billion and imports from Canada reached US$152 million.

Boisse said projections favor the Dominican Republic because gold exports to Canada will continue to rise this year.

Stable trade, increase in tourism, the support against organized crime in the Caribbean and Central America, among other key areas in the Canada-Dominican Republic ties during 60 years were cited as positive by the diplomat

Boisse called for continuous efforts to prepare the SMEs so they can place their products and services in Canada, a market of more than 35 million people he affirms has great potential, with a demand for fruits, vegetables, textiles, mineral resources, among others.

He also spoke of the Pan American Games in 2015, which will be held in Toronto, where he said he expects a high turnout from the Dominican Republic.

The diplomat headed the 60th anniversary of diplomatic ties between his country and the Dominican Republic and Canada’s national holiday at the Hilton Hotel, attended by business leaders from both countries, diplomats and officials.

During the activity, Boisse recognized several personalities for their work in the areas of development, trade, society and with contributions to Canada-Dominican Republic relations.

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COMMENTS
66 comment(s)
Written by: Ricardolito, 3 Jul 2014 8:52 AM
From: Dominican Republic, Zona Colonial
well done Canada..a truly great country
Written by: zooma, 3 Jul 2014 8:58 AM
From: United States, and Dominican Republic

This includes donations of fire fighting equipment from Canadian Firefighters Without Borders and it includes fire trucks.

Written by: josean, 3 Jul 2014 10:10 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


......and how much does this "altruistic" help improve the pockets of the Canadian corporations?


.........."You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time."

Abe



Written by: Radar, 3 Jul 2014 10:30 AM
From: Dominican Republic

A favorable trade balance of nearly US$ 1.1 Billion. Not too shabby, eh?
And we can increase that by much more.!

I read somewhere that many a containers of produce gets returned here for lack of hygiene and/or bugs, chemicals, et al.
We have world-class seaports but too many inept port officials who hinder the process. We need to find ways to expedite our export market, in any way possible. It is a vital link to a healthier economy which could double if not for bureaucracy.
The potential for business with Canada and other nations, hungry for our fruits and vegies, is there for the taking. It's all up to us to get the lead out and do the right thing. The sky's the limit.
Written by: laman00, 3 Jul 2014 10:58 AM
From: United States, Los Angeles CA
There's saying in english, GAS GRASS or ASS no one rides free , though im not a Canadian but whats the CATCH!!!!
Written by: josean, 3 Jul 2014 11:05 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

laman00,

The CATCH is a "not so subtle" advocay for the Polluting Predatory Enviorment Destroying Canadain mining companies!


Written by: laman00, 3 Jul 2014 11:18 AM
From: United States, Los Angeles CA
Isnt it enough for ireversable damages thats been caused beacause of there interests, not to mention the gauging of the natural resources, when will this stop when????
Written by: laman00, 3 Jul 2014 11:25 AM
From: United States, Los Angeles CA
Not a dime will improve the quality of lives of the people from this, you all know here who's going to benefit only, what an absurd statement , and yet they make it look like its for each and every individual. NO WAY...
Written by: dreadlocks, 3 Jul 2014 12:23 PM
From: United States
laman, i enjoy your remarks. you post like a person who lives on planet earth, and understands reality. a refreshing break from some of the nitwits who just make simplistic, irritating remarks.
Written by: laman00, 3 Jul 2014 12:24 PM
From: United States, Los Angeles CA
I hear you my friend. Thanx!
Written by: Cabaretecanuck, 3 Jul 2014 5:00 PM
From: Dominican Republic, Cabarete
Canadian companies, mainly mining companies, spend more than US$100,000,000 per year in the DR. This is not altruistic spending, and it certainly isn't environmentally friendly, but don't mistake that for the money the Canadian government donates.
Their support generally is targeted to benefit people in the DR, not Canada. I'm sure the politicos here, with their buddies, manage to make a lot of the money stick to their fingers, but I doubt they manage to get most of it (just a good chunk). Canada tends to commit to programs, not cash donations (which all just go to Switzerland anyway).
Josean, Canada isn't the US, the money isn't attached to an elastic band, and laman00 I doubt very much there is a requirement of ass or grass for the cash Canada sends here. Sometimes things really do happen just because they are the right thing to do, however hard cynics may find that to believe.
Written by: josean, 3 Jul 2014 5:03 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016




...........In God we Trust all other bring Data..........including the angelic Canadians!





Written by: Ricardolito, 3 Jul 2014 6:20 PM
From: Dominican Republic, Zona Colonial
I like it when money is given for specific projects like the Canadians do and I agree with Cabarete canuck that the easy comment is t just to be cynical when there are many cases, as in this case of genuine and properly controlled donations
Written by: josean, 3 Jul 2014 7:27 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


"as in this case of genuine and properly controlled donations"

The ambassador said going back six decades......... that would mean starting in 1954 under Trujillo then Balaguer and NARCO Lie-onel is when the majority of these alleged disinterested philanthropic funds were dispersed..........those three bastions of transparency and honesty......and you dare make such Asinine statement.


........after demonstrating that type of idiocy I believe you when you say you can't find things on Google!

Written by: laman00, 3 Jul 2014 8:57 PM
From: United States, Los Angeles CA
Properly controled donations dont apply here , i dont mean to disrespect your Canada, do you even know how this govenment here functions at all??? GRAB IT WHILE YOU HAVE IT, una vez!!!!!
Written by: johnny, 7 Jul 2014 12:00 PM
From: Canada
IS this 100M going to put money in Canadian Pockets yes it is. It will also put money into the DR and peoples pockets. Of course if you don't like it, we can always spend the money in a country that appreciates it. Do not under estimate the power of gratitude.
Written by: josean, 7 Jul 2014 5:18 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016




...........Don't let the door hit you on the way out!




Written by: johnny, 8 Jul 2014 8:17 AM
From: Canada
Clearly Josean you have never owned or run a business, otherwise your response would not be so trite. Yep canada cn pack up go home, and then listen to the lament of thousands complain that the great Josean sent us canadians packing because he was too short sighted to see the long term benefits, But more so Josean was angry the canadian companies made money. Thats what business does jodean. I make money in my business in DR, but so do my staff who work with me, and they make more than dominican wages. I admit Josean you got a mouth but beyond that not much else.

Stupid people should be encouraged to do and say stupid things so that we know who the stupid people are. Please continue your rants Josean so we all know you are the Stupido
Written by: josean, 8 Jul 2014 10:02 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016



Yet you felt compelled to write a long winded attack at a "Stupido"..... so what does that make you Genius!


.........don't threaten your gonna leave........ just leave..........



Written by: josean, 8 Jul 2014 10:13 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


...............talk about being stupid..............


Written by: johnny, 8 Jul 2014 8:23 AM
From: Canada

"America is not great anymore it is mediocre with a leader who is not an american citizen and refuses to provide a proper long form birth certificate that isn't forged."

dominicantoday.com/dr/local/2014/7/3/52013/Ruling-party-commemorates-little-known-US-DR-battle


...........is that the position of the Canadian government as well?


Written by: dreadlocks, 8 Jul 2014 10:40 AM
From: United States
did johnny from Canada really write that posting about Obama not being an American citizen? what is this now? the attack of the racists?

johnny, do not get me started. please. i am a caribbean man, and as such i am very, very, intolerant of racists. if you want to criticize Obama's policies, be my guest. if you are trying to paint him as "other", then we are going to be at war here. choose your words wisely, please.
Written by: johnny, 8 Jul 2014 10:54 AM
From: Canada
Well Dread finally a response that is not condescending, sarcastic and nothing to do with Gays. You want to speak truths we can have good debates. But when it descends to the bottom of the well, the fight starts. I welcome truth debates. not the petty talk i see so much on this site.

Written by: johnny, 8 Jul 2014 10:54 AM
From: Canada
Well Dread finally a response that is not condescending, sarcastic and nothing to do with Gays. You want to speak truths we can have good debates. But when it descends to the bottom of the well, the fight starts. I welcome truth debates. not the petty talk i see so much on this site.

Written by: josean, 8 Jul 2014 11:01 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016



Dr. Dread he nervous now....posting the same thing twice after being exposed!

......The guy claims that Obama is not born in the United States and he complains pettiness......better petty than Stupid!



Written by: dreadlocks, 8 Jul 2014 12:37 PM
From: United States
i hope i have not misread you, but did you not go off into some tirade about blacks wanting everything for free? i am black, and no white man ever gave me anything i did not earn. do you wish to debate that?
Written by: Radar, 8 Jul 2014 1:15 PM
From: Dominican Republic

Any enterprise, regardless of its national origin, is welcome to set up business here. Canadian firms are not better or worse than any others, from anywhere.
It stand to reason that whoever invests here does so to profit in one way or another. Businesses are not characterized as charitable organizations. They're out to make as much profit as possible from the product or service they provide. To think otherwise is foolish and naïve.

That said, it behooves any firm to maintain a positive image. It must advertise itself as one providing a great product while feigning to be conscientious of its employees' welfare.

A successful business must project itself as part of the community. One which benefits everyone, lest it may be viewed as a foreign intruder, bent on exploiting the people and nation it operates in.
Thus is the perception shone by Falcondo and Barrick Gold.
Sometimes, avarice can cost more than that which may be realized without it. A good image is priceless.
Written by: josean, 8 Jul 2014 1:19 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016



"I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country."

Thomas Jefferson


Written by: josean, 8 Jul 2014 1:24 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016



"The corporations don't have to lobby the government anymore. They are the government."


Jim Hightower



Written by: josean, 8 Jul 2014 1:31 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016




Corporation: an ingenious device for obtaining individual profit without individual responsibility.


Ambrose Bierce








Written by: dreadlocks, 8 Jul 2014 1:35 PM
From: United States
giving us 3%, and keeping 97% for themselves is not a good image-maker. not to me, at least.
Written by: Radar, 8 Jul 2014 2:51 PM
From: Dominican Republic

The expectations of the pin heads on this site is to think we can get something for nothing.
In reality, we must work hard to obtain that which we most desire. Even if in the process, we step over a body or two. That is the cruel reality of life. Life isn't fair, to think otherwise is naïve and delusional.
The dream of a workers' paradise has ended in nightmarish results. Communism was a great experiment in futility, rudely awakened by the realities of what makes us human. On paper, It seemed like a good plan. It voided personal ownership. All goods were to be distributed equally. A classless society.

Too bad systems aren't as Utopian as that. We, humans aren't bees or ants; working for the common good. We are, by nature, a species of selfish individuals bent on materialistic pursuits, regardless of whom we leave in the dust to obtain it. A business or corporation isn't any different.
That's how it is. Like it or not.
Written by: josean, 8 Jul 2014 3:04 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

"For a system of inequality to be stable, those who have more must convince those who have less that the distribution of who gets what is fair, just, proper, or the natural order of things. The greater the level of inequality, the more compelling and persuasive these explanations must appear to be. The type of explanation or ideology varies depending on the type of inequality. In feudal societies, for instance, the aristocracy used ‘birthright’ and the idea of ‘the divine right of kings’ to justify power and privilege over commoners and peasants. In slave societies, slave owners used either the idea of ‘spoils of victory,’ or ‘innate superiority’ to justify their ownership of other human beings. In traditional Indian caste societies, inequality was legitimized on the basis of ‘reincarnation’; that is, one’s place in this life was based on one’s performance in past lives. In industrial societies such as the United States , inequality is justified by an ideology of meritocracy."

Written by: josean, 8 Jul 2014 3:06 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

'You may not be held responsible for where you start out in life, but you are responsible for where you end up.’

‘In 1900, only 4% of Americans eighteen to twenty-one year olds were college students. By 2001, 62%.’

‘If intelligence were actually the primary determinant of getting ahead, then one might expect that the distributions of income and wealth would closely mirror the bell-shaped distribution of intelligence. But they don’t even come close. In fact, the most important determinant of where people end up in the economic pecking order of society is where they started in the first place.’

The Meritocracy Myth, by Stephen McNamee


Written by: Radar, 8 Jul 2014 4:43 PM
From: Dominican Republic

One can beach and complain about inequality. We tend to blame the "haves", but secretly wish to be one of them. Only those that did not work diligently to gain in social status, and/or material possessions, complain about the "unfairness of life", and the misplaced, perceived oppressive nature of those with money.
Mostly everyone must work hard, in one way or another, to get ahead and provide for basic necessities, anything beyond that is a bonus.
There are people who in spite of adversity and a limited education, through sheer willpower, make it extraordinarily. This goes to show that, unless one is born into wealth, -and sometimes this is no guarantee of success,- an individual must strive to forge ahead by maximizing that which he/she knows best.

Proclaiming inequality and forcing change by taxation, enactment of laws, or wresting private property, are the hallmark of Communism. And as we all know, the Marxist/Leninist experiment has failed miserably.
Written by: dreadlocks, 8 Jul 2014 4:50 PM
From: United States
says Radar

Proclaiming inequality and forcing change by taxation, enactment of laws, or wresting private property, are the hallmark of Communism. And as we all know the Marxist/Leninist experiment has failed miserably.

and so has capitalism. if you believe that a system in which 1% of the people gathered 95% of the gains of the economy since the recession is a display of success, then there is nothing to debate. secondly, you should read the book that Josean suggested, and disabuse yourself of some of the myths you might entertain.

can you suggest to me one reason why it is that white people in the USA have far more wealth than blacks? is it because blacks are lazy and useless?

let me give you a hint; think Levittown, for starters.
Written by: josean, 8 Jul 2014 4:54 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Dr. Dread,

Some people just can't get beyond Simplistic Cold War rehtoric!

The U.S. Has The Worst Income Inequality In The Developed World, Thanks To Wall Street: Study

Mark Gongloff The Huffington Post 08/15/13 11:52 AM ET

Hey, who says America is in decline? The U.S. is still more awesome than the rest of the world at making at least one thing. And that thing is income inequality.

A new paper by economists Facundo Alvaredo, Anthony B. Atkinson, Thomas Piketty, and Emmanuel Saez lays out just how much better at making inequality the U.S. is than everybody else and tries to explain how it got that way.

Since the 1970s, the top 1 percent of earners in the U.S. has roughly doubled its share of the total American income pie to nearly 20 percent from about 10 percent, according to the paper. This gain is easily the biggest among other developed countries, the researchers note. You can see this in the chart below, taken from the paper, which maps the income gains of the
Written by: josean, 8 Jul 2014 4:58 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

top 1 percent in several countries against the massive tax breaks most of them have gotten in the past several decades. 



Written by: dreadlocks, 8 Jul 2014 5:01 PM
From: United States
when companies make record profits, and pay no taxes, that is not meritocracy at work. at least, i don't think so.
Written by: josean, 8 Jul 2014 5:04 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Dr. Dread here is another book that the opened minded non Wall Street non Neo-liberal Kool-Aid drinkers might consider taking a look at:

Capital in the Twenty-First Century

Thomas Piketty

What are the grand dynamics that drive the accumulation and distribution of capital? Questions about the long-term evolution of inequality, the concentration of wealth, and the prospects for economic growth lie at the heart of political economy. But satisfactory answers have been hard to find for lack of adequate data and clear guiding theories. In Capital in the Twenty-First Century, Thomas Piketty analyzes a unique collection of data from twenty countries, ranging as far back as the eighteenth century, to uncover key economic and social patterns. His findings will transform debate and set the agenda for the next generation of thought about wealth and inequality.

Continued:
Written by: josean, 8 Jul 2014 5:07 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Piketty shows that modern economic growth and the diffusion of knowledge have allowed us to avoid inequalities on the apocalyptic scale predicted by Karl Marx. But we have not modified the deep structures of capital and inequality as much as we thought in the optimistic decades following World War II. The main driver of inequality—the tendency of returns on capital to exceed the rate of economic growth—today threatens to generate extreme inequalities that stir discontent and undermine democratic values. But economic trends are not acts of God. Political action has curbed dangerous inequalities in the past, Piketty says, and may do so again.

A work of extraordinary ambition, originality, and rigor, Capital in the Twenty-First Century reorients our understanding of economic history and confronts us with sobering lessons for today.

Written by: dreadlocks, 8 Jul 2014 5:14 PM
From: United States
i am familiar with the book. my buddy is bringing it for me at the end of the month..
Written by: josean, 8 Jul 2014 5:29 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

TOP 10 COUNTRIES WITH LEAST INCOME INEQUALITY GAP

1. Slovenia: 0.24

2. Denmark: 0.25

3. Norway: 0.25

4. Czech Republic: 0.264

5. Slovak Republic: 0.265

6. Belgium: 0.266

7. Sweden: 0.26

8. Finland: 0.26

9. Austria: 0.26

10. Hungary: 0.27




Written by: josean, 8 Jul 2014 5:39 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

TOP 10 COUNTRIES WITH HIGHEST INCOME INEQUALITY GAP


1. Mexico: 0.48

2. Turkey: 0.41

3. United States: 0.38

4. Israel: 0.37

5. Portugal: 0.35

6. United Kingdom: 0.34

7. Italy: 0.34

8. Australia: 0.34

9. New Zealand: 0.33

10. Japan: 0.33



Written by: josean, 8 Jul 2014 5:43 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016



Dr. Dread I was sure you would be familiar with Picketty's book.......the comment was for the usual suspect(s)of the untutored mob........who love to pontificate using rhetoric that at best they have picked up via osmosis.


Written by: Radar, 8 Jul 2014 8:18 PM
From: Dominican Republic

Mr. Dread.

I said: "as we all know the Marxist/Leninist experiment has failed miserably."

And you responded: "and so has capitalism".

Your contention, and you'd be right, is that a minority of people control the greater wealth. I do not dispute that. This has been the case since time immemorial. And it will continue to be so, for the foreseeable future.
People have experimented with socialism, to a great disappointment. But even in socialism, there's a disparity of power and wealth among the public at large, and the party bosses. So even in a system that professes equality, there is a marked division between the haves and have not.

No system of government, to date, has succeeded best in bringing closer this division than capitalism. As we all know, the old Soviet Union, came to the sad realization that there's nothing out there better, so they reverted to something akin to Capitalism. China did the same, but with greater success.

continued..

Written by: johnny, 8 Jul 2014 8:30 PM
From: Canada
Don't know how long you have lived in America Dread. The was a time I believe in the late 1870, Jesse jackson and others tried to commence an action that would see "La Negrre" get 50,000 dollars in reparations for allowing their ancestors to be brought into America and sold as slaves. It almost came true, but got shot down by the courts At that time blacks working were pretty slim, a huge sense of entitlement after Vietnam. Troubled times they were. Today, unfortunately with the race baiters, Jackson, Shaprton and others, I believe they are only keeping blacks down. They do not want them to rise up and be successful or they would lose the tons of cash they make doing this.
Written by: Radar, 8 Jul 2014 8:52 PM
From: Dominican Republic

Cuba is still languishing with its old Marxist system. These three nations have taken different paths in attempting to find an equalizer for this tragedy, with varying success.
I don't think ANY type of system in place today is ideal or will right the wrongs of inequality. I don't think we'll find this Nirvana anywhere on planet Earth, or anytime soon.
I do not believe,- and this coming from an optimist-, that we'll ever reach that Utopia where everyone is equal, in every way.. It's impossible.
The best we can hope for, is for the disadvantaged better access to basic needs to sustain life in a modest capacity. And the opportunity to emerge, if so desired.
For better or for worse, until we find a better way, we're stuck with Capitalism.

Lets not delude ourselves into thinking humanity can change into a more pluralistic and altruistic society, affording most of us a way to absolute equality. It'll never happen. We're a savage species still evolving and oppressing.
Written by: dreadlocks, 8 Jul 2014 9:02 PM
From: United States
well, you used the term "socialism " a few times. most of Western Europe is socialist to some degree, with Scandinavian countries being in the vanguard. taxes are high, but they get free education, health care, long annual vacations, and great infrastructure. they seem to have something that works better than the USA.
Written by: josean, 8 Jul 2014 9:11 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


Some people have a very John Bircher 1950 s Red Scare brainwashed mentality of what socialism is however one of the free marketer's conservative bibles Forbes magazine is a lite more opened minded:


Happiest Nations Are Mostly Northern Socialist Nations

The World’s Happiest Countries Forbes.com

1. Norway

2. Denmark

3. Finland

4. Australia

5. New Zealand

6. Sweden

7. Canada

8. Switzerland

9. Netherlands

10. US


 

Written by: josean, 8 Jul 2014 9:25 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


Short but informational:

youtube.com/watch?v=01BbhA3mmfQ&feature=youtube_gdata_player


Written by: Radar, 8 Jul 2014 9:48 PM
From: Dominican Republic

There's a huge difference which makes the Scandinavian nations better suited for that type of governance. The fact that it's mostly a homogenous society affords a system that, for the most part, works very well for them.

No so for the rest of Europe. As we all know, they are weathering a financial crisis of unprecedented proportions. Some of this due to the strain of its generous welfare, the world-wide recession, compounded by the burden of a huge number of economic refugees wanting the same social advantage.

The general consensus is that If these nations do not drastically cut back on expenses, and restructure their political system, the internal tax structure will lessen dramatically to unsustainable levels, thus a shortfall in funding with dire results. The system must be modified accordingly. This, if they are to restore their economy to a semblance of what it used to be.
Written by: josean, 8 Jul 2014 10:21 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

.......let's try to straighten out the pretzel........


Five economic lessons from Sweden, the rock star of the recovery

The Scandinavian nation of Sweden has accomplished what the United States, Britain and Japan can only dream of: Growing rapidly, creating jobs and gaining a competitive edge. The banks are lending, the housing market booming. The budget is balanced.

By Neil Irwin,  Published: JUN 24, 2011 

STOCKHOLM — Almost every developed nation in the world was walloped by the financial crisis, their economies paralyzed, their prospects for the future muddied.

And then there’s Sweden, the rock star of the recovery.

This Scandinavian nation of 9 million people has accomplished what the United States, Britain and Japan can only dream of: Growing rapidly, creating jobs and gaining a competitive edge. The banks are lending, the housing market booming. The budget is balanced.

Continued:

Written by: josean, 8 Jul 2014 10:29 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Sweden was far from immune to the global downturn of 2008-09. But unlike other countries, it is bouncing back. Its 5.5 percent growth rate last year trounces the 2.8 percent expansion in the United States and was stronger than any other developed nation in Europe. And compared with the United States, unemployment peaked lower (around 9 percent, compared with 10 percent) and has come down faster (it now stands near 7 percent, compared with 9 percent in the U.S.).

Some of the reasons for the Swedish success are as unique to the nation as its citizens’ predilection for Abba, pickled herring and minimalist furniture. But there are plenty of lessons for other countries as they struggle to find a pathway toward prosperity.

Continued:

Written by: josean, 8 Jul 2014 10:32 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

The overarching lesson the Swedes offer is this: When you have a financial crisis, and Sweden had a nasty one in the early 1990s, learn from it. Don’t simply muddle through and hope that growth will eventually return. Rather, address the underlying causes of the crisis to create an economic and financial system that will be more resilient when bad times return.

Here is what that means in practice. Call them Sweden’s five lessons for a crisis-stricken nation.

1. Keep your fiscal house in order when times are good, so you will have more room to maneuver when things are bad.

In 2007, before the recession, the U.S. government had a budget deficit equivalent to 3 percent of its economy, as did Britain. Sweden, meanwhile, had a 3.6 percent surplus.

Continued:
Written by: josean, 8 Jul 2014 10:37 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

So when the recession hit, that surplus gave its government a cushion in the downturn and it didn’t run up the huge debts that in other advanced nations have now created the risk of a future crisis. Sweden’s gross debt is set to reach 45 percent of the size of its economy this year, as the United States closes in on 100 percent.

This was a lesson Sweden learned from its early 1990s crisis, in which a collapse in commercial real estate and the banking sector was exacerbated when the budget deficit rose to such high levels that the country had trouble borrowing money and the value of its currency collapsed.

The nation set a goal of averaging a 1 percent budget surplus over time and held to it — which left the government with lots of flexibility to engage in deficit spending when the economy went south.

Continued:
Written by: josean, 8 Jul 2014 10:41 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

“If you don’t have a fiscal problem, you have more degree of freedom,” said Stefan Ingves, governor of Sweden’s central bank, the Riksbank, in an interview. “This time around, the issue was not ever even close to being about solvency.”

2. Fiscal stimulus can be more effective when it is automatic.

Sweden didn’t do much in terms of special, one-off efforts to spend money to combat the downturn. There was some extra infrastructure spending and a well-timed cut to income tax rates, but the most basic response to the government was to do what the nation’s social welfare system — lavish by American standards — always does: Provide income, health care and other services to people who are unemployed.

In the United States, the battle over whether to use government spending to cushion the blow of the downturn became a divisive one. Whether to try to stabilize the economy became one more battle in the longer term war over the proper role of government.

Continued:
Written by: josean, 8 Jul 2014 10:43 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

And because the $800 billion fiscal stimulus that Congress and the Obama administration enacted in early 2009 consisted mostly of special, one-time programs, it took months for many of them to begin pumping money into the economy, thus kicking in months or even years after the economy had collapsed, and the spending expired without regard to whether the need remained.

When spending to cushion economic blows happens as part of a more carefully designed set of programs established during good times, it can be ready to go quickly right when the economy turns, and can be designed to taper off when it makes sense economically, such as when the jobless rate has fallen, rather than on some arbitrary date. And that can be true even for a safety net that is smaller than Sweden’s.

Continued:
Written by: josean, 8 Jul 2014 10:47 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

3. Use monetary policy aggressively

The Federal Reserve has won both plaudits and criticism for responding aggressively to the financial crisis, pumping money into the financial system in epic fashion. But by one key measure, the Swedish central bank was even more aggressive.

Like the Fed, the Riksbank lowered its target short-term interest rate nearly to zero. But it also expanded the size of its balance sheet more than the Fed did relative to the size of its economy, flooding the financial system with even more cash during the height of the crisis.

In summer 2009, the Riksbank had assets on its balance sheet equivalent to more than 25 percent of the nation’s gross domestic product. For the Fed, that level never got much over 15 percent.

Continued
Written by: josean, 8 Jul 2014 10:49 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

In 2009, the Riksbank even moved one key interest rate it manages below zero. Under this negative interest rate, banks that parked money at the central bank actually had to pay 0.25 percent for the privilege. That made them all the more eager to lend the money to one another rather than park it at the central bank, though in practice, Swedish officials and bankers said that the negative rate had more symbolic consequences than practical ones.

The impact of low rates on the economy, however, are clear.

“Interest rates fell very low, and households had more money available for consumption because their mortgage payments dropped,” said Lena Hagman, chief economist of Almega, an association of major employers in Sweden’s services sector.

Written by: josean, 8 Jul 2014 10:51 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

The Riksbank had the flexibility to move so aggressively in large part because of changes it made in the wake of the early 1990s crisis. At the time, the nation had experienced years of double-digit inflation and the central bank lacked credibility on financial markets. At one point, it raised its target interest rate to a stunning 500 percent in a futile effort to maintain the value of the Swedish currency, the krona.

But after that episode, the Riksbank set an explicit target of 2 percent annual inflation, and stuck to it, and over the next 15 years attained enough credibility on global markets that it could respond as aggressively as it did to the financial panic without sparking another krona collapse.

In other words, a central bank that has credibility can do more to support an economy than one that is less trusted by markets to be responsible.

Speaking of credibility, the Riksbank hasn’t left its ultra-low interest rate policy and large balance sheet in place forever;
Written by: josean, 8 Jul 2014 10:54 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

with its economy recovering nicely, the Swedish central bank has already raised rates, helping maintain its credibility for the next time the economy goes soft.

4. Keep the value of your currency flexible.

Sweden has declined to adopt the euro currency, and in hindsight that looks wise. The changing value of the Swedish krona was a helpful buffer against the economic downdraft of the past few years.

In the depths of the financial crisis, the krona fell in value against both the dollar and the euro, as global investors sought the safety of putting their money in the most widely circulated currencies. That helped make Swedish exporters more competitive at a time when global demand was collapsing, working as a sort of pressure valve.

Continued:



Written by: josean, 8 Jul 2014 10:55 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

And now that the Swedish economy is looking up, the free-floating nature of the Swedish krona could hold a different advantage: Neighbor Finland, which also is experiencing solid economic growth, uses the euro. With other parts of Europe in deeper economic distress, it could face inflation, because the European Central Bank sets policy based on the whole of the 17 nation currency zone. By contrast, Sweden’s monetary policy is based only on Swedish economic conditions.

There is a lesson here for the United States as well: Maybe being the global reserve currency isn’t all it’s cracked up to be. During the crisis, the value of the dollar skyrocketed as world investors sought a safe place to put their cash.

That put American exporters at a distinct disadvantage in the global marketplace at the very moment the economy was at its weakest.

Continued:
Written by: josean, 8 Jul 2014 10:56 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

5. Bankers will always make blunders; just make sure they don’t doom the economy.

Swedish banks didn’t make it through the 2008 crisis without major losses. To the contrary, they had lent heavily in the Baltic nations of Lithuania, Latvia and Estonia, which suffered an economic collapse.

The banks relied on funding in dollars that they borrowed from other banks — and during the crisis that funding all but disappeared as banks hoarded dollars. Had the Federal Reserve not made billions of dollars available to the Riksbank through “swap lines,” which were then lent to Swedish banks, there surely would have been a devastating collapse of the banking system.

So it’s not that the Swedish banks managed things perfectly. But they experienced more manageable losses than did their counterparts in the United States and much of Europe, and are now back to playing their normal role of making loans and supporting growth.

Continued:
Written by: josean, 8 Jul 2014 10:58 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Swedish financial officials don’t point to any single magic bullet in their regulatory approach. Rather, the Swedish banking system seems to have held up okay because the pain of the early 1990s was severe enough as to scar both bank executives and regulators, leaving them with little temptation to go into risky real estate lending in the mid-2000s, even when the rest of the world was doing just that.

“After the crisis in the ’90s, it was clear we needed to be more conservative and careful,” said Cecilia Hermansson, chief economist of Swedbank. An aphorism often cited, she adds, has been “burn your tongue once on hot milk and you will start blowing on yogurt.”

Continued:

Written by: josean, 8 Jul 2014 10:59 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

In other words, although bank bailouts might be necessary to save an economy, it’s also important that bankers not be so cushioned from the consequences of their unwise decisions as to go straight back to the old ways as soon as it’s over. They need to at least have their mouths burned.

5.5%

Growth rate of Sweden’s GDP 
in 2010

2.9%

Growth rate of U.S. GDP in 2010

1.8%

Growth rate of the EU GDP in 2010

Written by: josean, 8 Jul 2014 11:05 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

"The fact that it's mostly a homogenous society affords a system that, for the most part, works very well for them."

"....and Japan can only dream of: Growing rapidly, creating jobs and gaining a competitive edge. The banks are lending, the housing market booming. The budget is balanced."

PS

.......last I heard Japan was a pretty "homogeneous society!"




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