Caribbean at the mercy of billionaires

by | January 18, 2024 | Global View, North and Central America, South America, Environment, Economy/Poverty

2023, annually6from month to month11During the hurricane season, which lasts until May, the Caribbean7Including two hurricanes20A powerful storm caused extensive damage.afflictedThe National Oceanic and Atmospheric Administration (NOAA) has been working to address the situation. In this situation, the National Oceanic and Atmospheric Administration (NOAA(The experts are,2023The hurricane season of 2012 was one of the most turbulent on record.1years and ...Call it.There are.

Hurricane damage in the Caribbean has increased.causeOne of the most significant factors is that sea water temperatures in the Atlantic Ocean have increased dramatically due to climate change. Greenhouse gases such as carbon dioxide are the main cause of global warming. Humans emit greenhouse gases through a variety of activities, with emissions from high-income groups being particularly large. And the Caribbean region is one of the world's richest places where millionaires, who usually emit large amounts of greenhouse gases, gather. At the same time, however, it is also a region where poverty is pronounced. The disparity there is also the cause of various problems other than climate change. In this article, we will therefore look at the current situation and challenges in the Caribbean region, which is at the mercy of the actions of the world's wealthy.

Resort and yacht on St. Thomas, U.S. Virgin Islands (Photo:Scott Smith / Flickr [CC BY-NC-ND 2.0 DEED])

Widening Disparities Around the World

Before discussing inequality in the Caribbean, let us first take a look at inequality in the world as a whole. A non-governmental organization based in the United Kingdom with the goal of eradicating poverty and injustice in the world (NGO(Oxfam International) on disparities in the(written) reportAccording to,2018Assets lower among the world's population over the years50%(at sentence-end, falling tone) indicates a confident conclusion38The assets of a billion people are11%While the total decreased10The wealth of billionaires with assets of more than US$100 million is daily25At a pace of US$100 million.Increase.It was. Furthermore, as of 2019, the total assets of those 3.8 billion people were equal to the total assets of only 26 of the top richest people.

furthermore2020The pandemic of the new coronavirus that has occurred since 2006 has widened economic disparities worldwide. In fact, Oxfam International's report on disparities2024 EditionThen,2020richest in the world in the period since 1949.5People's assets doubled,10Billionaires with assets of more than US$100 million are3omen3,000It is estimated that the country has become US$100 million richer.

While the assets of the wealthy thus increased, the pandemic simultaneously accelerated global poverty.2022of the World Bank in 2006.surveyAccording to the "Economic Disparity in the World1945It was the largest since 1949. Facts,2021Lowest in income distribution in the world as of 200640The average income of those who will be affected by the pandemic is higher than projected before the pandemic.6.7Low %,2019Since the year2021through the year 2000.2.2%decreaseThe company is also Also,2020In the world since 19495 billion peopleSome report that more than

Caribbean History and Overview

I have been looking at poverty issues around the world, and the Caribbean region is one of the most poverty-stricken regions in the world.1The Caribbean Sea is one of the most important regions in the world. So what exactly is the Caribbean Sea? To begin with, the Caribbean Sea is the Atlantic Ocean located between Central America and North America.2The second largest approx.270It is a frontier sea of 10,000 square kilometers. The Caribbean Sea region has13Sovereign states of the United States and17The territory of the Caribbean region includes the territory of countries outside the Caribbean region of the United States, including some large but small islands such as Cuba and Ispaniola, and about7,000The islands are scattered throughout the region.

Next, the Caribbean regionclimateWe will look at Year-round warmtropical regionThe climate of the Caribbean region, which is included in the "Caribbean Sea," is highly subject to changes in ocean currents, mountain elevations, and trade winds. The region also has a hurricane season that is6from month to month11Continued through May,8from month to month9It peaks during the month of May.

In addition, the CaribbeanEconomic AspectsWe turn our attention to the In this region, thetourist tradeare an important part of the economy. The Caribbean Islands, with their coral reefs, mangrove forests, and rich natural features, attract many tourists, mainly from North American continental countries, for the beaches and diving there. Many of the world's major resorts are located here, making it a popular destination for wealthy people from outside the region.

Next, we will look at the history of the Caribbean region. The region was originally known as the Taino or Chevronay in many of the islands.indigeneswere residing in the area. However,15Around the 19th century, European countries such as Spain, England, France, and the Netherlands moved into the area and cultivated sugarcane and other crops.Plantation Managementspread rapidly, and in addition to the locals, many people who were forced to emigrate from Africa as slaves were forced to work hard.being forced toIn the process, the plague killed most of the local population.

Eventually, the Caribbean region became a EuropeancolonyThe company was However,19In the 19th century, slave rebellions increased and the plantation system wasdeclineAt the same time, the colonial rule of European countries began to fade. At the same time, European colonial rule began to fade,20By the mid-19th century, many island nationsindependence (e.g. of a company)The company fulfilled the

However, the Cayman Islands and Turks and Caicos Islands, which are British territories, Puerto Rico, which is a U.S. territory, and Curacao, which is a Dutch territory.17Some areas still remain as exterritories of Western countries. These exterritories remain independent.reasonare several things that can be mentioned. First, the Caribbean region is easy for the home country to use as a military base or tax haven. Other advantages include the fact that the Caribbean territory can receive economic assistance from the home country, and the high sense of belonging to the home country of the people from the home country, who make up the majority of the residents of the Caribbean territory. In addition, the colonized country still has a strong sense of economicdependenceSome of these territories are still under the control of the United States. It is rare in the world that such a large number of Western territories still remain.

Flag of the British Overseas Territories on Parliament Square in the United Kingdom (Photo:Foreign and Commonwealth Office / Wikimedia Commons [Open Government Licence version 1.0])

Disparities in the Caribbean and wealthy people from outside the region

With the growing problem of poverty in the world, the Caribbean region is no exception. The region is home to a large impoverished population,Dominican Republicand Jamaica and St. Lucia, where the population is about3Allotment,Haitiabout9Percentage of the Ethical Poverty Line (note 1)the followinglife.

These poverty problems have also caused many social problems in the Caribbean countries and territories. The first one that comes to mind is the high unemployment rate. For example, according to the World Bank'sdataaccording to (someone)2022The unemployment rate as of 2006 in St. Vincent and the Grenadines was19%In St. Lucia, St. Lucia.17.4%in Haiti.14.8percent, and this3The country has the highest unemployment rate in the world.30The country is among the first countries to do so. In addition, the pandemic of the new coronavirus has caused a significant decline in tourism, which had been a major source of economic activity and employment in many countries and territories.

Further,crimeThe increase in the number of people in the world is also a problem. Caribbean countries and territories are in a state of affairs due to governments with high levels of corruption and weak economies.instabilityIn addition, the Caribbean is also a place where people are often unemployed, and some of those who are unemployed are driven by poverty to seek income outside of work, which leads them to turn to crime. In addition, the Caribbean region is located in South America, where cocaine and other drugs are produced and consumed, and in North America, whererelay pointand also has a drug trade-related crime problem.

An additional challenge is that poverty limits children's access to educational opportunities in the Caribbean, resulting in a low level of education. In St. Lucia,2012As of 2006, the wealthy96%have completed their primary education, while the poor62%Only a few have graduated. Also,2020In the Dominican Republic in 2006,15The number of students aged 6 years old who have achieved minimum proficiency in mathematics in the poorest students, compared to the number of students in the richest students who have achieved it.20%less thandataThere are also

A view of the town of Jamaica (Photo:Christina Xu / Flickr [CC BY-SA 2.0 DEED])

On the other hand, the Caribbean region has a wealthy population that is influential not only among the poor but also globally.2019As of 2006, the Caribbean region had1,100More than one person100Assets of US$10,000,000 or moremillionaireexist, and their number is increasing every year. In addition,2021Forbes Magazine in 2006.billionaires listAccording to the Caribbean region, according to the8There are as many billionaires as there are billionaires. But none of them are from the Caribbean.2022In 2006, a new Caribbean native2People are on the billionaires list.RegistrationHowever, the percentage of people from outside the region is still high. And some aspects of the behavior of these billionaires and other wealthy people have led to the exacerbation of social problems related to poverty, as described above.

Some of the world's billionaires are using their vast wealth to acquire land. Some of them have personally purchased entire islands in the Caribbean. For example, the founder of the Virgin Group, which operates in the music and airline industriesRichard BransonMr. Harris has personally visited several uninhabited islands in the British Virgin Islands.BuyThe company is doing so.

Wealthy people who own such Caribbean islands can use the power of money to influence local regulations and legal systems. Some of them may even evade local laws. For example, investor Jeffery Epstein, of the U.S. Virgin Islands2He bought and owned two islands. He brought underage girls to these islands for sexual exploitation and sex trafficking. From this series of incidents, the islands owned by Mr. Epstein have been designated as "Isle of paedophilesand others. Eventually he wasArrest and prosecutionThe first time I saw a new building, I was surprised to see it,20What made his crimes possible over a period of two years was Epstein's political donations to politicalinfluenceIt is believed to be.

There is also the problem of corruption by politicians and influential people of local origin (see*2(The). Bribery and corruption.suspicionThe British Prime Minister of the Turks and Caicos Islands, Michael Misick, and former FIFA(FIFA)Jack Warner, Vice President and Minister of National Security in the former government of Trinidad and Tobago, is a case in point.

However, the problem of inequality is not only seen from the actions of these millionaires and powerful people in the Caribbean. It is also seen in the tourism industry that supports the economy. In some cases, for example, local fishing activities are being restricted by the development of resorts for vacationers and tourists. In Jamaica, the frequent construction of hotels for coastal resort developments and the increase in private beaches have led local residents to restrict their fishing activities to a small portion of the coast.1%It is reported that the island has access only to This makes it an important industry for Jamaica, an island nation.fishing (industry)This has had a negative impact on the In fact, prior to the start of the resort development, walking from one's home10Fishermen who used to be able to get to the coast in minutes now have to make a one-way trip to fish every day because the hotel construction has closed the coast.about10kmSome testified that they have had to commute the distance to the sea to get to their homes. This has left many unemployed and homeless in Jamaica.

The island was owned by Mr. Epstein (Photo:Navin75 / Flickr[.CC BY-SA 2.0 DEED])

Wealth Saving and Tax Evasion

The tax savings and evasion problems seen in the Caribbean also involve corporations and wealthy individuals from around the world. The Caribbean is home to a number of territories that are considered tax havens, particularly in the British Isles.numerousFirst of all, the first thing to do is to make a decision. First, to begin with.tax havenis a country or region that does not tax foreign businesses or has a very low tax rate (*3). In addition, because tax haven jurisdictions restrict the disclosure of information about locally incorporated companies and their owners, theconfidentialityThe characteristic is that it is guaranteed that the

Many of the corporations and wealthy individuals from around the world who use Caribbean tax havens are companies that are registered as corporations in tax havens but have no apparent business or operating activitiespaper company (i.e. existing "only on paper")to launch a new company. There, many of the wealthy people are facing the problem of tax reduction and tax evasion by transferring the profits of their own companies.detectionThe Caribbean is a very important part of the world's economy. Although much of the wealth in those transferred profits only passes through the Caribbean, there are wealthy individuals who base themselves in Caribbean territories in search of the aforementioned advantages. While it is legal to avoid taxes by using loopholes in the laws and systems of tax havens, it is illegal to evade taxes or launder money by taking advantage of their secrecy.

As noted above, the Caribbean is one of the world's largest concentrations of tax havens. Based in the United KingdomNGOThe Corporate Tax Haven Index value, which indicates the degree of complicity in tax avoidance by multinational corporations, is published by the Tax Justice Network of the*4of the2021Year.dataNow, let's look at the British Virgin Islands, the British Cayman Islands, and the British Bermuda Islands.3The values were highest in the two regions. In fact, in the British Cayman Islands, the number of companies registered in the Cayman Islands population6The 10,000,0002doubleabout12ten thousandThe number of such projects is very large, amounting to as many as 1.5 million.

Purchase of passports (citizenship) by the wealthy

In addition, the problem exists that wealthy individuals outside the region have abused the Caribbean passport system in some instances.

There are countries in the Caribbean that sell their own passports to those outside the region. The purchase of such passports is a means for wealthy people from outside the region to become citizens of the Caribbean.1The two are. To purchase citizenship, you will need approximately several hundred thousand to several million U.S. dollars to invest in public goods and real estate in the country where you want to become a citizen and a background check in a country that offers passport sales.onlyIn the Thus, the wealthy buy the second2The second3The passport for the "golden passportcalled "the wealthy purchaser himself does not even have to live in the place where he holds citizenship.

Wealthy individuals can purchase a Caribbean Golden Passport, which provides tax benefits and visa-free travel rights to many countries. For example, a St. Kitts and Nevis passport exempts the holder from all taxes except corporate tax and allows visa-free157The right to travel to as many countries as possible.obtainThe company can do this.

Dominican passport (photo:Mehranvary / Wikimedia Commons [CC BY-SA 4.0 DEED])

The Dominican government has1993The company sells citizenship and passports to foreigners from The majority of passport buyers are from countries in North Africa, Central Asia, and the Middle East.institution from which one graduatedand the Organized Crime and Corruption Reporting Project (OCCRPwith the Guardian and other newspapers.2023Year.joint investigationAccording to,2007The number of people who have purchased Dominican passports since 2006 is7For a population of about 10,000 people, about7,700He said that there would be as many as 1,000 people.

From these passport sales, the Dominican government2009Estimated from year10A large profit, estimated to be more than US$100 million, was generated.consequentlyThe government is benefiting from the fact that it is allowing wealthy people with criminal records to purchase citizenship. However, the problem behind the government's gains is that wealthy people with criminal records are allowed to purchase citizenship (*5).

Caribbean Wealth and Climate Change

Furthermore, the wealthy are also involved in the serious climate change problems occurring in the Caribbean region. The frequency of hurricanes in the Caribbean has been increasing due to climate change caused by global warming, which has become an issue in recent years.swellPossibility.

At the same time that the risk of more frequent hurricanes is increasing, the damage caused by disasters is also very high. For example,2022In the Caribbean as of 2006.1950.Since,324The number of disasters in the year ended March 31, 2011, was 1,860,25More than 10,000 lives have been lost.2022Hurricane Fiona, which hit the Caribbean in 2006, caused massive flooding in the U.S. territory of Puerto Rico,1,000In addition to forcing the rescue of more than one person, the flooding of waterways and power outages caused pumps to fail, forcing homes and businesses that depend on public water and sewer systems to70%does not have access to drinking water(suffering) damagehappened.

Rising sea levels caused by melting sea ice due to global warming also cause significant climate change damage in the Caribbean region.1One is. Caribbean sea level in the future with increasing greenhouse gas emissions in the world,2000Compared to the point in 20062050by the year 2020 up to a maximum ofabout84 cmIt is estimated that the sea level may rise. As sea level rises, not only will higher storm surges cause more damage to infrastructure and other assets from disasters, including hurricanes, in low-altitude areas, but also permanent inundation of low-altitude areas.dangeralso increases.

A Virgin Islands town totally destroyed by Hurricane Irma (Photo:DFID - UK Department for International Development / Flickr [CC BY 2.0 DEED])

Contributing to the climate change that is causing these extreme weather events and damaging sea level rise is the fact that the world's wealthy are emitting large amounts of greenhouse gases. Oxfam International's(written) report According to,2022Top of the world in 2006125People's wealth is a result of their investment activities.1Annual average per capita300million tons of carbon dioxide (CO2), which is the lowest in the world in terms of income. This is the lowest in the world in terms of revenue90%The average of those who fall into the2.76of a ton100This is 10,000 times greater. This enormousCO2emissions are also due to the consumption habits of wealthy people, such as frequent use of private jets and yachts.causeThe company is doing so.

Thus, the Caribbean region has been greatly affected by climate change, but there are examples of measures that have also been implemented to help the region become more resilient to the damage caused by climate change.2017In 2006, Dominican Prime Minister Roosevelt Skerrit told the United Nations General Assembly that the Dominican Republic was "at the forefront of the fight against climate change."statementNew.policyare also being implemented. For example, reconstruction plans and building standards have been introduced to build infrastructure that can withstand damage from natural disasters, and eco-tourism is being promoted.

However, not all of the small low-income countries in the Caribbean will be able to take such measures. It is the low-income countries that are mainly affected and harmed by climate change caused by greenhouse gases that high-income countries have emitted so far in large quantities, and that lack infrastructure and systems of access to services such as health care, that are the "Losses and DamagesThe problem of "climate change" is also present. This disparity between high-income countries and wealthy people, who have economic power and can relatively easily cope with the effects of climate change, and low-income countries and poor people, who do not have the economic means and are greatly affected by climate change, is called "climate apartheidAlso referred to as "the

Development and Environmental Destruction

Furthermore, in the Caribbean, land development for the construction of resorts for the wealthy is accelerating the destruction of the local environment. For example,2017In 2006, on the island of Barbuda in Antigua and Barbuda, an island nation in the Lesser Antilles in the eastern Caribbean, a developer in partnership with local politicians attempted to convert a large portion of the island into a luxury resort for the wealthy.

However, in the target area of that resort development,Codrington Lagoon National Park (CLNP)is included.CLNPThe wetlands and their resources are protected and used because of the rich mangrove thickets, vast seagrass beds, and coral reefs in the area, which also serve as a breakwater for coastal erosion caused by hurricanes.Ramsar Conventiondue toprotectionThe resort development, however, is expected to bring about a significant increase in the number of visitors to the area. However, this resort development has resulted inCLNPThe mangroves and coral reefs of the Ramsar Convention are being destroyed, and experts suspect that the Ramsar Convention is not being observed.invocation of the gods participating in a riteThe island's soil has been damaged by the flooding. This environmental destruction weakens the island's soils and puts them at greater risk of flooding in the event of future hurricanes.causeThis is the case.

A view of the sea on the Dutch island of Sint Maarten, ravaged by the strong winds of Hurricane Irma (Photo:Ministry of Defense, Netherlands / Wikimedia [CC0 1.0 DEED])

In addition to this, the development of a resort on this island of Barbuda involved the expropriation of land by wealthy people who took advantage of the hurricane damage.2017The island of Barbuda in Antigua and Barbuda was devastated by Hurricane Irma in 2005, destroying homes, infrastructure, and means of livelihood.(suffering) damageThe island of Antigua and Barbuda was the first to be hit by the earthquake. A state of emergency was therefore declared, and the displaced were relocated to the populous sister island of Antigua30daysstayThe island's resort development was to be done in the absence of the local residents. The development of a resort on the island of Barbuda was done to take advantage of this opportunity to avoid the opposition of the local population in the absence of residents. The locals in Barbuda called this "land grabThe company is severely criticized for being a "one-stop shop.

summary

The Caribbean region has a history of colonial rule by Western countries, and even today there are many areas that remain outside of Western countries and have yet to gain independence, and it can be said that the poor people of the region have been at the mercy of high-income countries and wealthy individuals throughout the ages. Investments by millionaires with their eyes on the Caribbean certainly have the potential to revitalize the local economy. At the same time, however, the presence of billionaires in the region is also causing not only environmental problems, but also various other problems, including the taxation issues mentioned above, the involvement of the wealthy in politics and policy, and the widening economic disparity caused by large-scale land acquisition and development.question (e.g. on a test)The poor are the ones who suffer the consequences of these problems. And it is the local poor who suffer from these problems.

In addition, the issues of climate change and tax havens in the Caribbean caused by the wealthy have been viewed as problems that affect not only the Caribbean region but also the entire world. The existence of the super-rich should be questioned again now, as they are greatly involved in social issues not only in the Caribbean region but also in the world as a whole.

 

note 1 The World Bank.2019The extreme poverty line as of 2005 is1per day1.9U.S. dollars. However, considering human life, this standard isrealisticAssuming that it is not, instead, "Ethical (ethical) poverty lineSome researchers have proposed "the This is the minimum line at which survival is guaranteed based on the relationship between life expectancy and income,2019At that time in 19491day (of the month)7.4The price was considered to be US$1.00.GNVhas adopted this ethical poverty line. However, the World Bank'sdataThe poverty rate criteria that can be examined from the following,1day (of the month)7.0U.S. dollars and7.5of the more ethical poverty line, as it was only available in U.S. dollars.1day (of the month)7.4Close to the U.S. dollar7.5U.S. dollars were used. In addition, data for the Dominican Republic were2021As of 2006, data for the Republic of Jamaica are2004As of 2006, data for St. Lucia were2016As of 2006, data for Haiti was2012As of 2006.

*2 Transparency International's annual globalcorruption perception index(in Japanese history)(CPI)In the past, Caribbean countries in the10low for many years, and in some countries the state of political corruption isaggravationThe company is doing so.

*3 A country or region becomes a tax haven.reasonis to attract foreign companies and transfer their profits by providing tax incentives for foreign companies. In addition to the economic boost that such established and relocated foreign firms provide through their transactions, they also benefit from the fees charged for the relocation and establishment of the firms.

*4 Published by the Tax Justice Network, the extent to which a country's laws on tax havens are likely to be abused by companies and investors, and the percentage of transactions that take advantage of tax avoidance measures hosted by that country.2hornindicatorA combination of the following.

 *5 Turkish businessman and former government minister Tsavit Çalal is a2001for fraud related to bank interbank in 2006.arrestHe was made a member of the board of directors of the company. However, he was then2011In 2006, a person with a criminal record was granted citizenship in the Dominican Republic, where there are supposed to be regulations that prevent people with criminal records from applying for citizenship.

 

Writer: Mayu Nakata

Graphic:Saki Takeuchi

 

1 Comment

  1. めい

    I thought I understood a little about Caribbean countries, such as tax havens and environmental issues, but I had no idea about the purchase of passports (citizenship) by wealthy people, which was very surprising. I decided to do a little more research on the Golden Passport.

    Reply

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