The Rasheed Griffith Show

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Former Minister of Finance Manuel Hinds joins us for an eye-opening account of how El Salvador dollarized. We get down to the nitty-gritty of monetary policy and prudent governance in what should serve as a poignant lesson for the Caribbean region. 

Dollarization in Latin America is back in the economic headlights. The policy is simple. Encourage the use of US dollars as a unit of an account in a country other than the USA to aid the fiscal stabilization and long-term growth of that country, yet from all corners, you have professional economists slinging unjustified objections to dollarization.

Always in these cases, they never gave actual examples of countries that have dollarized. How did they do it? What happened on the ground? What were the empirical results? Instead, they retreat into abstract theorization. 

Through this discussion based on the world as it is, and not mere abstraction, it can be seen that dollarization is a simple, elegant, and powerful policy that any economy in Latin America and the Caribbean should adopt.

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Talent will make or break a band, a company, and even a country. We're joined by Dr Collin Constantine to explore the requirements for successful growth, primarily in the context of Guyana, the region's potential rising star economy. Does Georgetown possess the necessary talent to bolster its social and political institutions or will they languish beneath a wave of uneven wealth distribution, similar to the likes of West African oil states?

Guyana's political history and economy are in a complicated state of disrepair.  Racial and class tensions have resulted in unsteady leadership as various interests jostle for control at every level of government. Collin argues that an influx of fortunes from the recently discovered oil reserves could widen the divide. 

Will Guyana's newfound financial weight create a unifying voice within the union or further exacerbate its irrelevance? CARICOM's viability and utility have been brought into question, with Jamaica even threatening to abandon the initiative at the turn of the decade. A shift in power to any single state could undermine the balance and dynamic of the Caribbean Community. 

What about the local currency? Surely the government would seek to address a weak Guyanese dollar given its nascent energy sector, poised to bring significant foreign exchange to the country. Dr Constantine explains that while the local currency should be replaced with USD it will be a mainstay for the foreseeable future. The coming decade will be an interesting period of development for Guyana and the greater Caribbean region.

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This episode takes us deeper into the idea of art as part of the welfare state. Music journalist and critic, Andrew Mellor is our guide to the historical nuances that fuel the Nordic's ongoing domination of the classical music space.

Finland boasts the highest number of conductors per capita in the world. This has not happened by chance. The unique way of talent selection at the Sibelius Academy plays a large role in this. The country exports its prowess to almost every corner of the classical music space. In the UK, Every BBC orchestra is headed by a Finn.   

Iceland, a population smaller than some Caribbean countries, has crafted itself into a music powerhouse. The geography of the Nordics has played a remarkable role in shaping their high art and music-focused culture. Harsh winters and foreboding landscapes greatly influence one's outlook on life. This has made them exceptional leaders, diplomats, and, of course, conductors.

The proliferation of the Nordic brand of music, forged by geographical circumstances, is not dissimilar from that of the Caribbean, save for a critical difference. The governments of the Nordics saw the potential in this cultural output, not just as a revenue source, but as a way to better the everyday life of their citizens. The Caribbean music scene has all but diminished. What can be learned from the Nordics?

Andrew Mellor on X (formerly Twitter)

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Reading Recommendations:
Andrew's book: The Northern Silence: Journeys in Nordic Music and Culture

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A return to Argentina.
On this episode of the Rasheed Griffith Show, we focus again on the beleaguered South American economy and discuss Javier Milei's meteoric rise to claim victory in the recent elections. Our guest, Argentinian political analyst Bruno Binetti, explores the socio-economic conditions that paved the way for Milei's win and the harsh recovery journey ahead for what was once one of the continent's financial powerhouses.

The name of the game is change. Binetti posits that the electorate grew tired of policies, particularly under "Kirchnerism", which proved ineffective in righting the country's foundering economy during the crisis at the turn of the century. A disillusioned population saw solace in the charismatic Milei whose platform eschewed both centrism and Kirchnerism. His message admonished all politicians for being selfish while positioning himself as one for the people.

Argentina's current predicament results from in-flexible government interventionism whereby the ruling party did not adjust course or adapt to global trends, leading to a depressed economy and successive defaults. This has spooked investors and barred Argentina from lucrative global financial markets, a situation not so dissimilar from many islands in the Caribbean. It is the reason for heads of state like Barbados' PM Motley, broadly campaigning for financial access under the guise of "climate fairness".

Buenos Aires has attempted some reforms before, but not to the degree or tempo necessary to course correct before an administration is removed from power. Milei has promised a more drastic shift, one which in his inauguration speech, he described as inevitable measures, evoking comparisons to Margaret Thatcher's "tough medicine" rhetoric. The reforms required will be far-reaching and no doubt initiate a period of great discomfort for the people of Argentina. The coming years will be a litmus test for the effectiveness of Milei's policies.

Bruno Binetti on X (formerly Twitter)

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Reading Recommendations:
La Moneda En El Aire: Conversaciones sobre la argentina y su historia de futuros imprevisibles - Pablo Gerchunoff y Roy Hora

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From gold to Bitcoin. In this episode, we are joined by Professor Lawrence White to explore a comparative history of money, starting with the era of the gold standard. We trace the origins of bank notes, private money, and the underpinnings (and shortfalls) of monetary systems across Latin America and the Caribbean.

Our discussion begins with dollarization rumblings across Latin America, namely Argentina. "In a way, dollarization is a bit like going back to the gold standard in the 19th century. You're adopting external money that's a world currency. This has the effect of constraining the budget of the home country, as they can't just issue more money to finance their debts and have to be more fiscally prudent." Latin America is no stranger to dollarization. Panamá has been dollarized since 1904 and is the only country in Latin America where you can have a 30-year mortgage, a testament to the stability of their economic landscape. Post-elections, it would appear that President Milei's plans for the Central Bank of Argentina are on hold. The coming decade will prove to be an interesting one for the country's financial landscape and either a success or a cautionary tale for the region. 

Similar to the last century's gold standard, is the idea of Bitcoin as a reserve currency. Circulation of the digital token began in 2009, and it was even made legal tender through legislation by El Salvador in 2021. Could Bitcoin take on a similar role as conventional money? The Bitcoin network has proven its robustness in terms of being a payment network. The system itself can't be censored, i.e., no single body like a central bank can prohibit or block transactions. However, Bitcoin's bid to become a global currency like gold or the US dollar is hamstrung by its purchasing power volatility. Bitcoin's primary use is as a means of investment, rather than a true payment vehicle for the masses as a result.

So, what about other digital alternatives? What if a Central Bank digitized the local currency? Professor Lawrence argues that CBDCs (Central Bank Digital Currency) are a threat to privacy and some basic freedoms that cash facilitates. A CBDC could also be a logistics nightmare in terms of retail payment services. You, a citizen, could hold a bank account with the Federal Reserve, which has no tangible experience in fulfilling the necessary services. So, for now, it'll be dollars and a mix of both cash and the ones and zeroes on bank ledgers that already make up the majority of all money on Earth.

Better Money: Gold, Fiat or Bitcoin by Lawrence White
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"1 in 10 Icelanders write books." This curiously repeated statistic, (accuracy notwithstanding) stems from Iceland's proud literary heritage. The North Atlantic island nation is renowned for its contributions to the arts, gender norms, and governance. This episode's guest, Egill Bjarnason (a writer himself) gives us some insight into the origins of this cultural dynamism, the modern policies that foster its continuation, and the resulting influence beyond Iceland across the globe.

At just over 370,000, Iceland's population is surpassed by some Caribbean countries (Trinidad & Tobago is 1.3 million). Like the Caribbean, in the art world, the Nordic nation punches well above its weight. Today, Icelandic works are a common sight on lists like the NYT Bestsellers. Egill surmises that this propensity for storytelling is rooted in the realities of the harsh Icelandic winter. From as far back as the early Norse settlers, stories were the main entertainment during the months when everyone was stuck indoors. This skill has been passed down and cherished through many generations and continues today in the form of book writing. In Reykjavík, one might visit a bookstore and come upon books written by a neighbor, a colleague, or any other unassuming member of the community. How is it that not only has the tradition continued, but remained so accessible that anyone can put pen to paper and have their work published? Egill says that's where government grants come in. The Icelandic government acknowledges the importance of the arts to its citizens, through financial assistance and incentives for would-be novelists, musicians, and more. In essence, art forms a core part of the famous Nordic Welfare State.

In 1980, Iceland made history as the first country in the world to elect a female head of state democratically. Vigdís Finnbogadóttir, served as president from 1980-1996. She initially ran simply to show that a woman could run a political campaign and did not expect to win. Today, Iceland tops global rankings in terms of gender equality, orientation equality, and other human rights fronts. Egill attributes this to the global financial crisis of 2008, in which Iceland was a pivotal player in the financial downturn. In the aftermath, the country took steps to reform the business sector, starting with the hiring processes from the bottom up. Diversity and anti-discrimination policies were introduced, aimed to reform and prevent a repeat of what was perceived as a non-ideal social environment. These policies have evolved and have positioned Iceland as one of the most progressive countries in this space.

Iceland's global influence can be seen in politics all over. A deep cultural history that aids in molding and directing modern policy could serve as a guide or inspiration for countries in the Caribbean. Iceland is proof that size is irrelevant to your international footprint in the arts, governance, and more - a lesson that warrants reiteration for the Caribbean and its leadership.

How Iceland Changed the World - Egill Bjarnason

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Why is Venezuela on the verbal offensive and threatening to carve off more than two-thirds of Guyana's land area? The answer is wrapped in a tale almost 200 years in the making. Dr. Ivelaw Griffith takes us on an insightful journey from the nascent years of the Bolivarian Republic and its then-colonial neighbor, right up to today's war of words and saber rattling.

Venezuela's initial claims to the Essequibo, the disputed territory, began as far back as 1841. During this period of nation-building, we see a fresh new republic eager to settle the lines between itself and British Guiana to the East. The British shared this sentiment and demarcated their claim with the help of Robert Schomburgk, a geographer who would give his name to the survey line which is still at the center of today's dispute.

The Venezuela of yesteryear was much more ideologically aligned with the United States. Its objection to the British claim was bolstered by the assumption that as a staunch ally, Washington would eagerly lend support and aid them in curtailing London's expansionism, a la the Monroe Doctrine. This was not the case and the USA was initially much more indifferent to the cause than expected. Eventually, Uncle Sam would use bigger-army diplomacy to bring both Britain and Venezuela to the table to settle the row.

What followed was a pivotal round of negotiations with elements of scandal. Neither party would leave happy and the accounts of under-the-table dealings paint a controversial image that serves as the backdrop for today's events. One negotiator went as far as to declare posthumously that Venezuela "got a raw deal", undermining the moral legitimacy of the resulting 1899 Harris Award.

Join us on this episode as we unravel the nuances of that deal, give context to the Venezuelan propaganda machine, and explore the implications of a potential cascade effect for South America and the Caribbean Community.

Reading:

• Oil And Bullyism: Venezuela Opens the Intimidation Playbook Again (part 1)
  Dr. Ivelaw Griffith
  
  
• Venezuela’s Latest Move In Its Waiting Game With Guyana (part 2)
  Dr. Ivelaw Griffith 
  
  
• Oil and Bullyism: Venezuela Opens The Intimidation Playbook Again (part 3)
  Dr. Ivelaw Griffith 
  
  

Dr. Ivelaw Griffith on LinkedIn

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Picture this: a tropical island, white sand beaches, bustling outdoor markets, and a burgeoning tech hub. It's not the Bahamas or Barbados. Instead, this episode takes us 11,000 kilometers away from the Caribbean, to Zanzibar, an autonomous archipelago of Tanzania and home of our guest Daniel Yu. The CEO of Wasoko, Africa's fastest-growing company in 2022, sits with Rasheed to discuss the ongoing political and social conditions that are positioning Zanzibar as a prime destination, not just for tourism but business as well.

Talent is everything. The right people can make or break companies and even entire countries. Daniel gives a rundown of some of the positive developments that are making Tanzania the second most exciting African economy to watch (his first choice is Kenya). The current President of Zanzibar, Hussein Mwinyi has prioritized policies to encourage growth, from the structure of his government to the acquisition of the necessary expertise, be it local or the diaspora. Within Wasoko, Daniel has applied hiring practices that are more appropriate for the region, such as focusing less on raw credentials and paying attention to interpersonal skills and outward professionalism. He is also in favor of upward mobility, noting the progression of some employees from interns to managers, unseen almost anywhere else.

At the industry level, Daniel discusses the influx of capital to e-commerce companies in East Africa and the tech sector in general. Wasoko, Daniel's company is a B2B e-commerce facilitator which seeks to connect the more informal small business landscape. The prevalence of his primary clients is noted to be a symptom of a lack of more structured economic opportunities and very closely mirrors the conditions in the Caribbean.

In many ways, Zanzibar is a close analog to the islands of the Caribbean. It faces similar challenges which require diverse solutions. Tune into this fascinating episode where we talk about everything from the political landscape to workplace culture and gain valuable insights from a very unexpected locale.

Daniel's Company Wasoko
Daniel on LinkedIn

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The British Empire was more than just colonialism and slavery. Framing it as such does a deep disservice to history, impedes progress in the present, and is an attempt to rewrite history in a manner that could endanger a stable future. Professor Nigel Biggar joins Rasheed for a thought-provoking discussion to give some ethical clarity to a tumultuous and complex period in the West's past.

Slavery was not unique to the British Empire. They weren't the first, but they certainly made a concerted effort to be the last. The Empire would play host to truly regrettable events and conditions, but this should not invalidate one of its largest contributions to modern Western society, namely the abolition of slavery and the establishment of rudimentary human rights.

Some proponents of the idea of a British Debt to the Caribbean have built entire arguments solely on the demonization of the Empire. These disingenuous arguments focus solely on the extracted commodities and willfully ignore the intangible benefits that are a tenet of our existence to this day. Strong social institutions, trusted legal systems, and a common moral identity are all directly the result of British influence across the continent. We must also never forget which side of history the Empire stood on during World War II and the price it paid to maintain all the aforementioned standards we now take for granted.

In the context of the Caribbean, the remnants of the empire are visibly much more well-off than their proudly independent neighbors. Integration, rather than Balkanisation, was the key to their development, and for their endurance, they were rewarded with the Empire's evolution into a more cohesive and diverse international state.

Professor Biggar explores the truths of the Empire and more in his book "Colonialism: A Moral Reckoning."

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Prof. Biggar's website