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Tin: P ortland O bserver • N o vi mbi r 6, 1996
P age B3
Assessing the investment climate
Social Security, W h a t other
countries do:
• The prospect o f savings short­
fa lls and eventual insolvency have
prom pted many nations to explore
new approaches to the administra­
tion oj publicly sponsored retire­
ment plans
• A symbolic relationship ap­
pears to exist between a privatized
system o f fo rc e d savings and a na­
tion 's economy. The introduction
o f the form er-property adminis-
tered-appears to have a beneficial
impact on the latter
Prospective savings shortfalls
and the problems o f financially pub­
licly sponsored retirement plans like
Social Security are not unique to the
United States. At least 20 countries
have introduced forced savings pro­
grams, while others have either par­
tially privatized their systems or
have developed a private option to
existing publicly financed plans.
Contribution rates for social se­
curity programs within developed
nations vary widely, depending on
the level o f coverage and the extent
to which some benefits are paid out
o f general revenues, rather than paid
from specifically ear-marked em-
ployee/employer tax levies. Italy
and Portugal have the highest social
security tax rates at 29.6% and
34.8% respectively, while Canada
at 5.4% and Switzerland a, 9.8%
have the lowest rates. Like the U.S.,
where employer and employ ee each
pay one-half ofthe 12.4% rate, most
countries have struck a relative bal­
ance between employer and em ­
ployee contributions. But in the
Netherlands the employee pays all
o f the 25.8% figure, while in Swe­
den, the employer pays 19% and the
employee pays only 1%.
Competingeconomic, social and
political philosophies have played
a key role in determining the kinds
o f public savings systems that have
evolved in each ofthe w orld’s econ­
omies. Some countries have clung
tenaciously to the values o f public
social welfare systems, while others
have explored plans that place more
relian ce on p riv a te in itia tiv e .
Singapore is one o f 20 countries
with a forced savings plan, while
Chile was the first country in the
Americas to initiate a privatized
system. The United Kingdom adopt­
ed a private sector option in the late
1970’s and currently administers a
two-tier system. A brief look at some
o f these systems may provide some
insights into prospective policy op­
tions for modifying the U.S. Social
Security system.
Singapore introduced a compul­
sory savings program in 1955 which
requires workers up to age 55 to
contribute 40% o f wages and sala-
ries-paid equally by employer and
employee-into the Central Privident
Fund (CPF) an institution that in­
vests the funds for the employee.
Initially the CPF invested the funds
entirely in government securities but
the program has become more flexi­
ble over time.
Essentially, Singapore's philoso­
phy has been that citizens must pro­
vide for their own retirement, hous­
ing and healthcare needs. In addition
to providing retirement savings, the
funds are targeted into different ac­
counts for specific purposes, such as
home purchases and healthcare ser­
vices. This has enhanced the proba­
bility that more citizens must pro­
vide retirement savings, the funds
are targeted into different accounts
for specific purposes, such as home
purchases and healthcare services.
This has enhanced the probability
that more citizens will be able to
afford these items. This forced sav­
ings program has ensured a steady
source o f investment capital and ap­
pears to be a significant factor in the
country’s high real economic growth
rate. This high growth rate has in
turn, played a key role in the success
o fth e program, keeping participants
employed and insuring a steady flow
of funds into the investment accounts.
D u rin g th e last four y e a rs,
Singapore’s real economic growth
has averaged 8.8%, while the na­
tion’s consumer price index has av­
eraged 2.3%.
The Chilean social security sys­
tem was privatized in 1981. Like that
in Singapore, the Chilean system in­
volves forced savings. But in many
ways Chile s system resembles the
U.S IRA savings programs Pri­
vate companies compete to manage
individual savings accounts and
workers are free to choose among
various investments options.
In privatizing Social Security,
Chile turned its previous "pay as
you go” social security debt into an
explicit debt, that is composed o f
(a) the pensions o f existing retirees,
(b) future pension payments o f those
workers who chose to stay with the
old system and (c) the accumulated
entitlements o f those workers who
switched to the new system Chile
has been very fortunate that the
government ran a huge surplus in
the 1980’s, so that any potential
pension deficit did not put an extra
burden on the economy. In fact the
program has been most successful
and appears to have contributed to
vigorous economic growth. M ore­
over, this economic growth did not
place upward pressure on interest
rates during this time period be­
cause increased private savings was
concurrently occurring within the
economy.
As in the case ofSingapore, there
appears to be a symbiotic relation­
ship between the introduction o f a
privatized system o f forced saving
for retirement and the economy o f
Chile. Real economic growth has
exceeded 7% per year on average
for the past 5 years. As the system
grows into a maturing Chi lean econ­
omy however, growth will more
than likely modify.
The social security system in the
UK comprised to two tiers: (1) as a
basic benefit, all workers w ho qual­
ify, receive a flat rate figure o f
about 18% o f national average earn­
ings; (2) another level o f benefits is
provides by the so called State Earn­
ings Related Pension Scheme or
SERPS, which providesproportion-
ally higher benefits for workers with
higher incomes. Since 1978, em ­
ployers have been allowed to con­
tract their employees out to the
SERPS tier if they can provide pri­
vate pensions that would yield the
equivalent o f SERPS. Moreover,
since 1988 individual employees
have been permitted to leave the
SERPS system, provided they set
up individual pension accounts.
Workers who are contracted out
lose the right to draw a SERPS
pension from the government but
they and their employers receive
compensatory payroll tax deduc­
tion, which are used to fund the
SERPS equivalent plans. This two
tier system is extremely flexible
D ’raythan,l5, and Tristan, 12.
Published on December 2 8 ,1993,
and designed as a biannual issue, it
was only a scant 38 pages long and
3000 printed copies. But the commu­
n ity 's initial response was over­
whelmingly positive.
However, the problem o f funding
the second edition had yet to be
solved. By doing a little research,
Lewis found that according to the
Larson Broadcasting Company, a
Northwest Hispanic Market report
estimated a $800 million buying in­
fluence in the Portland ADI (area of
dominant influence) alone, and an
estimated $2.5 billion a year in the
entire state o f Oregon
Upon discovering this informa­
tion. Lewis began to visi, Hispanic
community businesses and others
with bilingual services who might be
interested in buying advertising in
her 94-95 second edition.
During this time she also decided
to make this full-fledged directory an
annual issue beginning in July o f that
year to coinside with the migrant
workers' seasonal work cycle. Again,
it was an immediate success and for
b \
S ean C ki z , E ditor
The fields o f Oregon farms lie
only minutes away from Portland
kitchens, but for farm workers the
distance is vast. The isolation
which they endure as a result o f
poverty and the nature o f their work
and for many— the great distanc­
es which separate them from their
families, are magnified by the im­
passivity of the communities that
they serve.
Farmworkers toil in isolation
The quality o f life in Portland is
heavily dependent upon the rich
harvests that skilled farm workers
bring into the state’s economy . Yet
city dwellers know' little about the
farm workers’ ongoing struggle to
improve their working and living
conditions to levels that we tend to
take for granted.
N ew s o f the fa rm w o rk e rs ’
strikes- or ofthe issues that under-
liethem are rarely reported incity
media, and consumers tend to focus
on the prices they see in supermar­
kets without considering the eco­
nomic and social structure that caus­
es food to appear as we see it.
People are far more often con­
sumers than they are citizens, after
all.
City attitudes are crucial
Perhaps battles over issues that
we take for granted and meager
pennies per pound are topics too
mundane to occupy the minds o f
harried city dweliers. There is also
probably a general assumption that
the workers are foreigners, and
probably undocumented as well,
and mostly Mexican, and therefore
not worth thinking too deeply about.
This indifference, then, stems
from elitism, ignorance and racism,
a condition which too many work-
the 95-96 directory every business
that had previously bough, advertis­
ing space did so again without hesi­
tating.
The 96-97 edition has now grown
to include 138 pages and had impres­
sive distribution numbers estimated at
60,000 directories, whereas the 97-98
edition is estimated to distribute and
estimated 80-1 OO.OOOdirectories. They
are currently distributed to area post
offices, libraries, DM Vs, local His­
panic businesses, and grocery stores
like Walgrens and Food for Less.
V ictoria Lewis came to this coun­
try as a young child, and remembers
how scary and confusing learning a
new language and culture can be. She
considers the Las Paginas Amarillos
en Espanol to not only provide a
listing o f services available in the
Hispanic community, but to be a
learning tool for her people as well.
This book includes more graphics
and business personnel photos for
those patrons who might not read and
write, as well as full page non-profit
ads on recycling, earthquake aware­
ness, and the basic points ofthe Unit­
ed States Constitution
ers experience directly from their
employers
Farm workers struggle
Most Oregonians are unaware o f
the struggle to obtain basic rights for
farm workers and their families that
has continued for more than ten years
in Oregon. As recently as 1990, O r­
egon state law made picketing near
harvest sites illegal, and growers
continue their organized opposition
to the right for farmworkers to orga­
nize themselves. Most growers refuse
to negotiate with farmworkers on a
collective basis.
Film documents strikes
Portland film maker Tom Cham­
berlain documented the 1995 series
o f work stoppages among the straw­
berry fields o fth e Williamette Val­
ley in his film “Aumento Ya! (A
Raise Now!)”, which debuted recent­
ly at the Northwest Film Center. I he
documentary, which won the 1966
Oregon Arts Commission Media Arts
Fellowship, depicts the workers' at­
tempts to gain a raise of 2 to 3 cents
per pound after enduring stagnant
wages for more than ten years.
Issues are far from mundane
A m ong the issu es w hich
farmworkers hope to resolve through
negotiation are: an end to retaliation
for speaking up or attempting to
unionize, such as black listing or evic­
tion; an end to unfair labor practices
such as charging workers $3.00 per
day for rides to the workplace wheth­
er they need them or not; after ten
years o f hard work at less than the
minimum wage, a small raise; two
paid 15-minute rest periods per day;
separate toilets for men and women;
clean drinking water, instead o f irri­
gation w ater; improved housing,
much o f which consists o f plastic
tarps nailed over a wooden frame; an
end to intimidation tactics on the pail
o f growers, which includesemploy-
ing gun-wielding enforcers.
The right to negotiate
Fundamental to achieving any of
these goals is winning the right to
organize and negotiate collective­
ly,
b e c a u se
in d iv id u a lly
farmworkers cannot hope to win
concessions from either indepen­
dent farmers or agribusiness.
Agribusiness interests, however,
refuse to recognize PCUN, the
farmworkers union, and continue to
deny the farm workers any opportu­
nities to negotiate on any issue.
National boycott in support
PCUN has called for a nation­
wide boycott o f certain products for
the purpose o f forcing reluctant
grow ers to the bargaining table. The
targeted companies are: NORPAC,
a food processing giant with 1995
revenues o f $287 million (labels
include Flav-R-Pac andSantiam ’s);
Steinfeld’s Products, a NORPAC
customer with estimated annual rev­
enues o f $31 m illion; Kraemer
Farms, a NORPAC co-op member
and Steinfeld’s supplier with 2,000-
acres under cultivation; and. Whole­
some & Hearty Foods, makers o f
G ardenBurger products and a cus­
tomer o f NORPAC.
Portland Observador
supports La Causa
The Port land Observador endors­
es the e ffo rts o f our O regon
farmworkers to join together and
win the right to negotiate for better
living and working conditions. We
urge agriculture businesses to rec­
ognize the farmworkers union and
the humanity o f the people who
work the crops. To this end, we
urge our readers to support the boy­
cott and to write to these companies
in support o f the w orkers’ right to
negotiate together.
Velazco Joins Lewis & Clark
Salvador V elazco’s journey to Lewis & Clark College began with a love
ofliteratureandan insatiable interest in the history o f Mexico, his home land.
Velazco recently joined the faculty at Lewis & Clark College as assistant
professor o f Spanish. He received his doctorate in March from the University
o f Michigan at Ann Arbor. Velazco’s interest in Latin American literature and
history (lowered more than a decade ago when he wrote for the arts and culture
section ofa daily newspaper in Guadalajara, El Informador. Since then, he has
published more than two dozen articles in professional and literary journals.
Lewis & Clark's national reputation among liberal arts colleges and its location
attracted Velazco. Portland is Guadalajara's sister city.
Velazco said he hopes to serve as a resource to students who travel to
Latin America as part o f Lewis & Clark’s overseas program.
“ I see m yself as a bridge between students and their Latin American
experiences,” said Velazco.
▼
T ara P iekson
If one were to flip through Las
Paginas Amarillas en Espanol ( the
Spanish Yellow Pages), on pages
112-113 one would notice the pro­
fessional profiles on members o f the
local H ispanic com m unity-their
background, education, and life's
motto.
With each annual edition o f the
PAE, new people are profiled. But
there is one prson who has become a
positive force in the Hispanic com­
munity who has yet to be included in
a current issue. And her personal
success story reveals the advent to
Las Paginas Amarillas en Espanol,
itself.
In 1993. Victoria Lewis was at a
crossroads in her life. While strug­
gling through a painful divirce,
shebecame involved with the Volun­
teers o f America. Most o f her time
was spent helping Spanish-speaking
immigrants and migrant workers to
find doctors, deal with phone com­
panies, or contact insurance agents
or lawyers.
Ms. Lewis then realised that there
was a need in the local community
for and organised listing o f Spanish­
speaking services. It w asn't that such
services were unavailable, rather they
were unadvertised, and therefore
were underused. But the real inspira­
tion came from a trip to California
that brought that state’s own Spanish
Yellow Pages to her attention.
She was on a mission now, and
soon found that her new project was
just the therapy she needed in her
turbulant personal life.
The first edition o f Lewis’ “bro­
chure” was paid for by herself and
produced in the basement o f her
home, with only the help o f a graph­
ics specialist and her two sons.
- .
Continued to page A3
Las Paginas Amarillas en Español
bv
OBSERVANDO
Williamette Valley
labor strife continues
Waiting children
To learn more contact The Spe­
cial Needs Adoption Coalition at
The Boys and Girls Aid Society,
(503)222-9661
Around the United States, there
are many children awaiting adop­
tion. In the state o f Oregon alone,
there are over 200 children in need
o f adoptive families. This is a group
o f private agencies working with
the state to help find adoptive fam-
ilies.
These agencies are completely
waiving fees in order to encourage
the adoption ofthese children in need.
Single adults, both male and female,
as well as couples are welcome to
consider adoption.
Serglo, age 6 (Sergio, 6 anos
de edad).
Daniel and Alicia, ages 9 and 8 (Daniel y Alicia, edades 9 y 8).
Sergio, age 6: This charming dynamo embraces
life with gusto! Sergio is a handsome little boy o f
Cuban/Caucasian heritage. Athletics, the outdoors,
mechanics and family activities just skim the surface
o f Sergio’s many interests. Sergio’s brilliant smile
hints at the enormous amount o f potential he is
harboring inside Parenting him will be an initial
challenge, but will be well worth it in the long run.
Sergio is a terrific kid!
Daniel and Alicia, ages 9 and 8: These resilient
Hispanic/Caucasian siblings are an extraordinary
pair. Daniel is a gentle boy with a good sense o f
humor He excels in science and finds dinosaurs
intriguing! Alicia is a caring child who is reaching
out to others. She enjoys playing with dolls and
experimenting with arts and crafts. Doing well in
school, she is also a strong reader Daniel and
Alicia really need a committed family to call their
own
I
Below are some examples of
the special children looking for a
loving home:
Sergio, 6 anos de edad: Este encantador dinam o
abraza la vida con gusto! Sergio es ii guapo ninito de
h e re n c ia C u b a n o /A m e ric a n o . Los d e p o rte s , las
actividades al a ire lib re , m ecánica y actividades
fam iliares, son por m encionar unos de los muchos
intereses de Sergio. La b rilla n te sonrisa de Sergio da
una indicación del enorme potencial que alberga dentro.
Ser padres de el sera un reto al inicio, pero a la larga
vald ra mucho la pena. Sergio es un gran chico!
Daniel v Alicia, edades 9 y 8: Estos animosos hermanos
Hispano/Americanos son una p areja e x tra o rd in a ria .
Daniel is un nino noble con buen sentido del hum or. El
es sobresaliente en ciencias y encuentra los dinosaurios
muy intrigantes. Alicia es una nina atenta a la que le
gusta ayudar a otros. A ella Icen can tajug arco n muñecas
y experim entar con artes manuales. V a bien en la
escuela v es tam bién sobresaliente en lectura. D aniel y
Alicia necesitan realm ente una fam ilia de confienza que
puedan lla m a r p ro pria.
I