Afleveringen
-
On this episode of the show, Rasheed is joined by international lawyer Thomas Laryea, who specializes in the mediation process for sovereign debt restructuring. As a senior lawyer with the IMF, Thomas holds a unique vantage point at the tables of the negotiation between state debtors and creditors when financial instability requires a reevaluation of ongoing agreements.
The Caribbean is no stranger to Laryea's field, with several members having undergone their own restructuring processes. Of particular note is Suriname's own recent restructuring, which came under scrutiny in the public eye for it's long-winded execution and apparent delays brought about by the largest creditor, China. Thomas explores the intricacies of of the negotiation process, an outlines factors that could lead to the perception of overdrawn negotiations.
What makes a good or bad deal? There's no one size-fits all for restructuring. Sovereign debt restructuring is handled case-by-case. Dynamic solutions must be brought to the table to bring each party as close as possible to their perceived conditions for a win. The negotiations must also account for future investment opportunities and ideally provide new vehicles for additional financing in the long term.
Climate change poses a significant threat to the Caribbean region with many territories lacking the necessary financing to implement infrastructural and policy changes needed to weather the upcoming crises. Here, Thomas offers advice for governments seeking funding solutions across both private and public liquidity pools. The climate conundrum will be a broad challenge for small island states, and broad solutions will therefore be required to meet that challenge. -
Navigate the Barbadian political landscape with Rasheed Griffith and CPSI Podcast Producer Shem Best. In this episode, we discuss the evolution and decline of governance on the island, starting with one of its most prolific Prime Ministers, Owen Arthur. What tipped the scales for the David Thompson administration's rise after over a decade of BLP rule? What disastrous decisions paved the way for Mottley's landslide victory in 2018?
Barbados' Westminster-style government structure has created one of the world's most stable democracies with over three centuries of an uninterrupted parliament (the 3rd oldest in the Western Hemisphere). However, its two-party arrangement has also generated predictable levels of stagnation throughout all levels of leadership which can result in knee-jerk reactions from the electorate, easily swayed by domestic and international pressures.
We explore milestones in industry and policymaking that have produced one of the most tumultuous political environments the island has experienced since the early years of independence. From self-harming fiscal and monetary legislation to the resulting physical deterioration of the island's infrastructure and the compounding shocks of international events, join us in this two-part series on how the Gem of the Caribbean lost its luster. (All over afternoon tea) -
Zijn er afleveringen die ontbreken?
-
Where does Caribbean tech infrastructure stand today? Join Cybersecurity expert Neil Harper as we investigate the slowdown in innovation and standards adoption that could further erode the region's competitiveness and digital integrity.
Could 5G benefit the Caribbean? Neil says yes, outlining the surface benefits of the latest in cellular data technologies and how they could provide resilience in a disaster-prone region. 5G offers the opportunity to bolster telecommunications infrastructure with a smaller footprint that is less susceptible to natural phenomena like hurricanes.
What about security? The Caribbean has become a breeding ground for nefarious cyber activity, owing to a failure to adopt more stringent policies to protect its citizen's data. With the digitization of entire industries underway, a more systematic and meaningful approach to how information is handled, both at the business and legislative levels, will be required. -
What lessons can we learn from the current tech regulation climate in the United States? CPSI Director Shane Glynn joins us for a great discussion on efforts to reign in the juggernauts of the technology sector and the market factors driving the latest wave of scrutiny over household brands like TikTok and Amazon.
The Caribbean may not be a major player in global information and technology, but it is a notable customer and beneficiary. Social media proliferation in the region facilitates the dissemination of news and politicians have jumped on the latest trends to reach a younger and more socially active electorate. Facebook, WhatsApp, Instagram, and TikTok allow ideas and movements to propagate throughout the region in mere seconds. The importance of these platforms has not gone unnoticed by US regulatory bodies. The courts argue that the ubiquity of these public forums has crossed the threshold for which they can operate without increased oversight.
In the case of TikTok for example, the geopolitical tension between Washington and Beijing has brought the popular video-sharing network within the crosshairs of Congress. Shane discusses the broader implications of recent congressional hearings and the shift it could cause in the greater regulatory landscape. America's competitive and technological edge is often said to be driven by its open markets and de-regulatory practices. A leader in innovation and information access, The U.S. is powered by a thriving tech sector that largely functions without the fear of government incursion. But could this edge be dulled by a renewed focus on censorship? What could this increased oversight mean for privacy, free speech, and accessibility for the satellite regions of the Caribbean and greater Americas? -
In this fascinating episode, we dive into a more nuanced discussion for implementing dollarization in Argentina. Nicolás Cachanosky joins our Executive Director, Rasheed Griffith, for a detailed and technical rundown of the steps needed to transition the beleaguered economy to the US Dollar.
Firstly, there's the equilibrium rate. How many pesos would be needed to redeem one US dollar? How would this price be established? The government could remove the country's capital controls, which have been used to maintain an inflated and unsustainable rate. This would allow the market to determine a new rate at which the country would dollarize.
Secondly, you must dollarize the bank deposits. The checking and savings accounts of citizens and businesses must be converted to USD. This is the most straightforward step, as this form of money is purely digital. Bank deposits also act as a method of converting the physical currency into dollars when withdrawals are processed and redeemed in USD.
Thirdly, there's the dollarization of the central bank. Argentina's central bank is insolvent. Government bonds would be a viable solution if Argentina's trust rating on global markets weren't firmly in junk territory. To get around this problem, Cachanosky suggests using a special purpose vehicle, transferable bonds, equities, and other financial instruments based on assets in the government's portfolio, such as pensions and health insurance.
None of this can happen in a vacuum. Measures will also need to be taken to ensure that the policy changes are concrete enough to withstand a regime change. If successful, it could cause a cascade of financial reform across the Southern Cone and usher in a new financial era in Latin America. -
Citizenship by Investment or CBI programs tend to get a bad rap due to the misconceptions surrounding how they work and how they came to be. Dr Kristin Surak shares some valuable insights on the origins of "passports for sale" and goes into more depth on the true meaning of citizenship through the eyes of the people and the state.
Several islands in the Caribbean offer prominent CBI opportunities. It is estimated that more than 40% of Dominica's government revenue is derived from their own CBI program, financing wide-scale infrastructure projects across the island, such as additions to their green energy generation and a new international airport. To truly understand the lucrative nature of CBIs, we'll explore the historical context behind their inception, the motivations behind those who invest in these programs, the suppliers involved, and the complexities of successfully executing such a multifaceted process.
A passport may not necessarily mean citizenship. Dr. Surak posits that to grasp the motivations behind CBIs, a better understanding of modern state and personhood concepts is required - what exactly does a foreign passport offer, and how does it differ from the perks of naturalization?
The history of CBI programs also sheds light on the driving factors behind their persistence. For example, Hong Kong's handover to China fueled much of the initial success of many CBI programs in the Caribbean and Canada. A passport can be an assurance or fail-safe against government-induced insecurity, evident by the number of Hong Kongers who took up the offer.
But are these programs also a backdoor for unsavory individuals to bypass global restrictions? Not necessarily. The screening process for many of these programs is vigorous, even more so than Visa approval from countries like the USA. Bad apples are not unheard of, but this is not an indictment on the industry as a whole.
These programs are the lifeblood of several smaller economies and are a legitimate source of revenue for vulnerable small island states. The question should not be if CBIs are harmful because they aren't, but how best they could be utilized to enable development in the countries that rely on them. -
Should Canada dollarize? Should sovereign debt be modeled as risk-free? Why is monetarism unfit for modern financial markets? John Cochrane, Senior Fellow at the Hoover Institute and blogger at The Grumpy Economist, joins Rasheed on the podcast. They discuss core themes in macroeconomics and why financial tools are underutilized in stabilizing economies to make them more conducive for growth.
Toward a Run-free Financial System by John H. CochraneFiscal Histories by John H. CochraneThe Fiscal Theory of the Price Level by John H. CochraneMacro Markets: Creating Institutions for Managing Society's Largest Economic Risks by Robert ShillerIndexed Units of Account: Theory and Assessment of Historical Experience by Robert ShillerCentral Banking 101 by Joseph Wang (also, previous podcast with Joseph)Money Changes Everything: How Finance Made Civilization Possible by William Goetzmann
Links and Recommendations -
If you were asked to rank cities based on their level of libertarian policy implementation, it is very unlikely that at the top of the list, you would intuitively put Madrid. Of course, liberalism, classical liberalism, libertarianism, or capitalism are not usually thought of as being abundant in European cities. But on today's episode, we are going to be discussing with Diego Sánchez de la Cruz his newest book, "Liberalismo a la Madrileña" (Madrid-style Liberalism). How and why Madrid has become the region in Spain that grows the most, generates the most income, offers the best public services, collects the most, and lowers the most taxes.
Madrid achieved all of this while implementing the most radical liberal reforms in any European city in the last 15 years. How exactly did Madrid become the Capital of Capitalism in Spain?
Book Link
Liberalismo a la Madrileña, Diego Sánchez de la Cruz -
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. -
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. -
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)
Rasheed Griffith on X (formerly Twitter)
Reading Recommendations:
Andrew's book: The Northern Silence: Journeys in Nordic Music and Culture
Subscribe on cpsi.media -
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)
Rasheed Griffith on X (formerly Twitter)
Reading Recommendations:
La Moneda En El Aire: Conversaciones sobre la argentina y su historia de futuros imprevisibles - Pablo Gerchunoff y Roy Hora -
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
Professor Lawrence White on X (formerly Twitter)
Rasheed Griffith on X (formerly Twitter) -
"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
Egill Bjarnason on X (formerly Twitter)
Rasheed Griffith on X (formerly Twitter) -
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.
Oil And Bullyism: Venezuela Opens the Intimidation Playbook Again (part 1)
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:
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 GriffithDr. Ivelaw Griffith on LinkedIn
Rasheed Griffith on X (formerly Twitter)
-
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
Rasheed on X (formerly Twitter) -
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."
Rasheed on X (formerly Twitter)
Prof. Biggar's website -
What does it actually mean to "restructure" debt? Federico Sequeda, a portfolio manager at Morgan Stanley, discusses the intricacies of default with our CEO Rasheed Griffith. No two restructurings are the same and we get to the bottom of the how and why behind the hard conversations Caribbean governments find themselves in to attempt fiscal correction.
The region is no stranger to default. A dearth of foreign investment and a glaring lack of projects to invest in may be to blame. Coupled with a faltering reputation due to lapses in accountability and a failure to produce attractive products and services on the international stage, the region finds itself struggling to compete.
Federico argues that the Caribbean should take steps to attract more private foreign investment (FI) such as making more information on the health of the business landscape readily available. He gives some insight into the informal world of "roadshows" and how countries present themselves to be more lucrative to foreign investors.
The governments of the Caribbean find themselves locked out of international lending markets after restructuring because they have abandoned their responsibilities: internally to fiscally course correct, and externally to diversify their sources of funding.
Harmful rhetoric from leaders can also potentially scare off valuable FI.
Join us for an exciting dive into this important reality for the region on this episode of Caribbean Progress.
Recommended Reading
Sovereign Defaults: The Price of Haircuts by Cruces and Trebesch
Follow the Caribbean Progress Studies Institute on Substack -
Argentina is gearing up to make one of the most pivotal decisions in its economic recovery: dollarization. The country heads to the polls this weekend, and a win for presidential hopeful Javier Milei means a vote for the shift to an officially dollarized financial system. Emilio Ocampo is the man tasked by the potential new president to coordinate and execute the transition to the dollar. In this episode, he discusses the implications of this controversial move and the conditions that have brought one of Latin America's most culturally and economically significant players to this historical crossroads.
Is sovereignty lost when you dollarise? Ocampo argues that the answer is an unequivocal “no.” If sovereignty is associated with having your own currency, then Argentina's is markedly weak. The peso has lost 90% of its value in just the short span of four years. Trust in the banking system is at an all-time low and continues to sink lower daily. Argentinians have already voted for the dollar across the informal economy.El Salvador and Ecuador have maintained dollarisation through political regimes that were less than welcoming to the concept. This is a testament to the transition as a viable and beneficial monetary policy backed by economic precedent and by the voters themselves.
The only path to correction is drastic monetary and fiscal reform, neither feasible at this stage, as the most effective means of doing so have been exhausted. Dollarisation will not be a silver bullet, but it is a viable start for a platform of responsible governance. Join Rasheed and Emilio Ocampo in this insightful discussion on the future of Latin America's second-largest economy.
Emilio's substack on dollarization in Argentina: Dolarización en ArgentinaContinue the conversation on X (Twitter)
Rasheed Griffith: @rasheedguo
Emilio Ocampo: @ocampo_emilio - Laat meer zien
