Some countries fail spectacularly, with a total collapse of all state institutions, as in Afghanistan after the Soviet withdrawal and the hanging of President Mohammad Najibullah from a lamppost, or during the decade-long civil war in Sierra Leone, where the government ceased to exist altogether.
Most countries that fall apart, however, do so not with a bang but with a whimper. They fail not in an explosion of war and violence but by being utterly unable to take advantage of their society's huge potential for growth, condemning their citizens to a lifetime of poverty. This type of slow, grinding failure leaves many countries in sub-Saharan Africa, Asia, and Latin America with living standards far, far below those in the West.
What's tragic is that this failure is often by design. These states collapse because they are ruled by what is referred to as "extractive" economic institutions, which destroy incentives, discourage innovation, and sap the talent of their citizens by creating a tilted playing field and robbing them of opportunities. These institutions are not in place by mistake but on purpose. They're there for the benefit of elites (the party faithful) who gain much from the extraction -- whether in the form of valuable lands at special prices, political favours such as the nonpayment of certain obligations, or protected monopolies -- at the expense of society. Of course, such elites benefit from rigged political institutions too, wielding their power to tilt the system for their benefit.
States built on exploitation inevitably fail, taking an entire corrupt system down with them which often leads to immense suffering. This Federation of St. Kitts and Nevis has faced a period of stagnation and negative economic growth with its rising unemployment, increases in the cost of living, elevated crime, poverty and general sense of hopelessness especially amongst the youths. The high National Debt of EC$3billion was foisted on the Nation by a Government which ventured into an expenditure program with no coherent economic development plan other than to borrow and spend with impunity.
The Eastern Caribbean Central Bank in its Financial and Economic Review of the economy of the Federation commented, “Preliminary data suggest that economic activity in St Kitts and Nevis declined in 2012 following a contraction in 2011. Real GDP is estimated to have fallen by 0.9 per cent in 2012 compared with a decline of 1.8 per cent in the previous year. This decline resulted from continued contractions in value added by the construction and wholesale and retail sectors and a decline in output of the agriculture, livestock and forestry sector”.
Economic growth can only be achieved through broad based policies that include all of the country and not perpetuated as now exists in St. Kitts, along party lines with resultant inequalities in education, jobs and other economic status. As a result, there has been a sharp and severe economic decline since 2007 in per capita income, Gross Domestic Product and investment by citizens. All sectors of the economy have struggled as a result of myopic economic policies which have failed to give sustainable economic direction to the Federation. This is evidenced by the decline in aggregate demand as consumer confidence declined and the banks are unable to lend due to the dire shortage of bankable projects. All the economic indicators suggest that there is an increase in poverty. The poverty level in the Federation was 23.4% in 2007 (CDB Poverty Assessment Report). This is now estimated to be 40% in 2012. Poverty, as defined by the report, is the inability to provide one plate of food daily for the family.
The signs that this Federation is becoming a failed state are quite clear. St. Kitts has been ruled by a political tribe with a legacy of seeking vengeance for past injustices, regardless of the economic costs to the country. In recent times there has been a deliberate ratcheting up of the political tribalism, with fifty percent of Nationals being excluded from participating or contributing to economic and social development. This section of the population is then subjected to “hate” and nasty rhetoric (referred to as “hogs”) which emanates from the political platform, broadcast by radio and vocalized by fanatical supporters. This has resulted in increasing anomy among the professionals and middle class who are cowed into silence, whilst the expatriate community increases in numbers and prominence. This group is often given generous fiscal incentives and offered government owned lands at generous prices beyond the reach of most of the citizens of the Federation.
As the political temperature increases in the Federation, all indicators point to the machinations of a creeping dictatorship that is prepared to hold on to power at all cost, even trampling on the much cherished tenets of the democratic process with its accompanying corruption in all aspects of the political and financial structures in this Nation. The resistance to transparency, accountability and representation, flagrant corruption, and Machiavelli’s are classic elements of a failed state. Even though attempts have been made to defend the Government’s refusal to deal with the motion of no confidence, by recalling some long forgotten incidence which occurred in 1981, the act is so egregious, that the democratic community of the Commonwealth and world, despite all of the sophistry, are beginning to regard the Government as a political pariah. In any democracy the motion of no confidence would have been dealt with and the Nation given a chance to elect a Government of its choice.
In a country on its way of becoming a failed state, as is happing in the Federation, there will be continuing political banditry, an abuse of power by supporters of the ruling elite and widespread abuse of the social, legal and intellectual rights of the people.
History is replete with cases that once a country allows itself to sink below a certain level, because of the nefarious acts of dictators, seldom do they recover. This Federation is small and very fragile, for that reason, It is time for the people, civil society, the Chamber of Industry and Commerce; the Evangelical and Christian Council; Teachers Association; Bar and Medical Association to wake up and take control of their country before it is too late. Hitler and Mugabe were no accidents. They were the product of complacency and fear.
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