Wednesday, December 1, 2010

Tirade on Economies, Markets and Crime

Crime blooms where there is a vacuum in law and order. This space is filled by the informal organizations known as gangs. These gangs do not exist because of poverty but as a power structure to control resources. Poverty does not cause crime but the lack or law and order coupled with poor management of economies. Markets it must be noted can not be controlled due to the many variables that encompass it both internally and externally hence government can fix economies not markets. Thus with strong economies the pressures of the market can be statically forecasted which will lead to complex derivatives and commodities futures. Derivatives are really just complex futures as well.

These futures markets becoming planning tools that can change the policy of any nation hence the market control the policies, the policies control the economy and the economy is controlled by private and public sector. If a gap develops in this, entire population will be disenfranchised as is the case in inner cities around the world and especially here in Jamaica . As the flight of capital retreats from areas because the policy for these areas are not realistic for the development growth of formal markets, public and private sectors will also retreat as any investment must show a return on investment (ROI). This ROI can be tangible or intangible return but a positive return none the less.

As our garrisons in Jamaica has become disenfranchised the government past and present has allowed the financial sector to black list these areas. This is not a unique anomaly for Jamaica but the norm around the world especially third world where informal settlement ie squatting communities exist. Crime exists because the people here are at the bottom of Maslow’s pyramid. The social and economic fabric of communities are gone hence a battle for scarce resource which most times are controlled by political and criminal forces.

The government has the ability to end this blacklisting and informal settlement by using the full force of the state to enforce law and order. It has the ability to ensure that a titled property in the inner city is considered an asset vs a liability by banks, insurance companies and the owners of property themselves. It has the power to define clearly land ownership whereby a person can not be force out of their capital because of criminal elements as this is duress. The rule of law and not politics or fear should apply. If land owners consider these properties as valuable assets which the capital market recognizes as assets then a move to destroy the garrisons can begin. But when a free for all is allowed to operate with this basic resource informal organizations are cultivated as a means of self preservation hence the ultimate pariah for a government to control is born and that is the informal economy which policy cannot control or direct thus giving power to the informal organization as a revenue generator is in place to fund their activities with no regard to law and order.