News and Analysis: 23 May-3 June 11 | EmergingFrontierMarkets.com

Based in: Manila, Philippines

Posted on Fri, 3 June 11:

M Cardenas and E Levy-Yeyati: Graduation season - Moving toward advanced economy status,   Brookings Inst, 1 June 11:
The practice of grouping emerging markets into acronyms in order to identify the next group of top performers has become outdated and problematic. From the popular BRICs to CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and S Africa) by HSBC, and EAGLES (Emerging And Growth-Leading Economies, or the BRICs plus Korea, Indonesia, Mexico, Turkey, Egypt and Taiwan) by BBVA - all of these have sought to single out a set of nations, which supposedly outperform the rest, say Inst LatAm Initiative dir and senior fellow (ADB: Panel discusses reforms to help Asian nations avoid 'middle income trap' | Asia 2050 - Realizing the Asian Century)

NGOs call for IMF head to be chosen by 'double majority',   Inter Press Service, 23 May 11:
More than 100 civil society groups called for the next IMF head to be approved by a majority of its 187 member nations, as well as a majority of the voting shares that are heavily weighted in favor of the world's richest nations. In an open letter addressed to the IMF's Board of Governors, the Non-Governmental Orgs, incl the Bretton Woods Project, Oxfam, and Third World Network, said such a requirement was the best way to ensure an 'open, merit-based, transparent process' for determining the successor to the fmr head

Edward Glaeser: New land of opportunity,   Forbes, 20 Apr 11:
If you are alive today, there is a one-in-eight chance that you are living in a slum in the developing world, desperately trying to improve your lot. The UN estimates that 828 mln people, which is about 12% of humanity, live in slums in the developing world. Slum dwellers are typically defined as urbanites who lack decent housing or sanitation or clean water, or all of the above. They live in places of great deprivation. Disease is endemic, crime serious and corruption rampant. But slums also offer tremendous econ opportunities, says Rappaport Inst dir/ Harvard prof

Posted on Wed, 1 June 11:

Health Club: Radiofrequency electromagnetic fields are possibly carcinogenic,   WHO/Int'l Ag. Res. Cancer, 31 May 11 [PDF]:
WHO has classified Radiofrequency electromagnetic Fields as possibly carcinogenic to humans, based on an increased risk for glioma, a malignant type of brain cancer, associated with wireless phone use.  Over the last few years, there has been mounting concern about the possible adverse health effects from exposure to RF, such as those emitted by wireless communication devices. From 24-31 May, a working group of 31 scientists from 14 nations has been meeting in France to assess the potential carcinogenic hazards from exposure to RF

Editorial: The IMF - Time for a change,   Economist, 26 May 11:
It is not hard to see why even Western finance ministers with a low opinion of the French pres have rushed to anoint his finance minister for the top post. Ms Christine Lagarde has many strengths. But it is still wrong. To begin with, the stitch-up, whereby the head of the IMF is a European and the head of the World Bank is an American, is a disgrace. Int'l posts should be filled according to merit. And the growth of emerging economies makes it even less defensible

A Banerjee and E Duflo: Why aren't children learning?,   Development Outreach, Apr '11:
We are 4 years away from '15, the year when the Millennium Development Goal of universal education is supposed to be achieved, and the school attendance numbers do look good. In many parts of both East and West Africa, and almost all of South Asia, school enrollment has grown rapidly, with primary school enrollment now exceeding 90% in many. So why aren't we celebrating?, ask MIT profs/ founders and directors of its Jameel Poverty Action Lab [J-PAL] (Time 100 most influential people: Joseph Stiglitz | Esther Duflo)

Posted on Mon, 30 May 11:

China is not a manipulator of currency, says US,   Press Trust of India, 28 May 11 [courtesy Deccan Herald]:
In its report on the int'l economy and exchange rates sent to the Congress, the Treasury Dept said that China can't be branded as a currency manipulator. Based on the ongoing appreciation of the renminbi vx the dollar since June '10, China's public statements asserting that it will continue to promote exchange rate flexibility, its recent policy commitments through the G20 and the US-China Strategic and Econ Dialogue to address external imbalances, Treasury has concluded it is not a currency manipulator, the report said (UAE mulls plan to buy Chinese currency, National, 29 May)

Paul Blustein: Immoral hazard,   Foreign Policy, 20 May 11 (courtesy Ctr Int'l Govn Innov/ Canada):
Ever since the IMF head's arrest, eye-popping developments have come fast and furious. Now comes a spectacle that is appalling in a different way: a power grab by officials of the European Union. The Europeans will probably get their way. If so, that will be a travesty, says Ctr visiting senior fellow/ author of And The Money Kept Rolling In (and Out): Wall St, the IMF, and the bankrupting of Argentina (2005)

Ejaz Ghani: A service revolution is sweeping South Asia,   Proj Syndicate, Mar '10 [courtesy Japan Times]:
While China is a formidable exporter of manufactured goods, India has acquired a global reputation for exporting modern services. Indeed, India has leapfrogged over the manufacturing sector, going straight from agriculture into services.  Can latecomers to development take advantage of the increasing globalization of the service sector? Can services be a driver of sustained growth, job creation, and poverty reduction?, asks World Bank econ adviser (with Brookings Inst's Kharas: The service revolution, Economic Premise, May '10 [PDF] | Oxford U Pr: The Service Revolution in South Asia [2010])

Posted on Fri, 27 May 11:

Timothy Ash: If Obama really wants to lead us to a free world, he should abolish the G8,   Guardian, 25 May 11:
Anyone who abolishes a useless committee or institution should be awarded a medal, and this would deserve a large one - a kind of global Medal of Honor. More broadly, this US pres is qualified like none before him to move forward from the outdated cold war notion of 'the leader of the free world' towards being the leader of a movement towards a free world, says Oxford U historian/ Hoover Inst senior fellow (As G8 meets, Asian leaders seek a bigger role, NY Times, 26 May) [courtesy Ctr Int'l Govn Innov/ Canada]

Jim O'Neill: IMF leadership,   Goldman Sachs, 22 May 11 [PDF]:
The new leader should satisfy 2 broad criteria. One, s/he must be well-versed in the many econ and policy issues that the IMF must handle and lead. Two, s/he must have a personality that can engage successfully with the many different members to orchestrate change as well as a better and more balanced world economy. What the leader must not be is simply a figurehead of a pure European and US 'deal' to sustain the historic arrangement that the IMF always has a European leader and the World Bank has an American leader, says GS Assets Mgmt chair (and creator of 'BRIC' acronym -Ed.)

Moises Naim: In the IMF succession battle, a stench of colonialism,   Wash Post, 20 May 11 [courtesy author's site]:
A stench of colonialism is wafting around 19th and H streets in Wash., site of the IMF's HQ. These foul fumes do not originate in the fact that the powerful, wealthy 62-year-old Frenchman who until last week ran that institution stands accused of sexually assaulting a young and poor African maid in a posh NY hotel. They're emanating instead from the strong colonial legacy that is already tainting the selection of DSK's successor, says Carnegie Endowment int'l econ prog senior assoc

Posted on Wed, 25 May 11:

BRICS slam European grip on IMF, France's Lagarde leads race,   Reuters, 25 May 11 [courtesy Sify/ India]:
Top emerging economies joined forces to slam Europe's "obsolete" grip on the IMF's top job, even as France's finance minister appeared to strengthen her lead in the race to replace Strauss-Kahn. Brazil, Russia, India, China and S Africa, known as the BRICS, sharply criticized European officials on Tue for suggesting the next IMF head should automatically be a European. In the 1st joint statement issued by their directors at the Fund, the BRICS said the choice should be based on competence, not nationality, and called for "abandoning the obsolete unwritten convention that requires that the head of the IMF be necessarily from Europe" (Statement by the IMF exec directors of Brazil, Russia, India, China and S Africa)

Women at IMF object to depiction of workplace - Letter to the editor,   New York Times, 23 May 11 [courtesy IMF]:
We - a group of women at the IMF ranging from admin assistants to dept heads - do not recognize the picture of the Fund painted in your article. We feel insulted by your description of our workplace. Contrary to your article, there is nothing unusual about recognizing that close personal relationships in the workplace do not automatically involve harassment. On 6 May - ironically, just shortly before the spotlight swung to these matters - the Fund adopted strong reporting requirements to ensure that any ensuing conflicts of interest are addressed. Signed by: 679 female IMF employees (At IMF, men on prowl and women on guard, 20 May) [courtesy CNBC]

Unleashing the potential of the human mind with learning,   World Bank, Apr '11:
With a record 210 mln people out-of-work worldwide and employers reporting too few workers to hire with the right skills, the World Bank appealed to gov'ts, donors, community leaders, and employers to focus more on education that prepares young people for the job market with the right skills, rather than one which emphasizes the number of years they spend in school. The bottom line of the bank's new educ strategy for the next decade is to "invest early, invest smartly, and invest for all"

Posted on Mon, 23 May 11:

DSK expresses bitterness to former IMF colleagues,   Agenzia Giornalistica Italia, 23 May 11:
Strauss-Kahn, who resigned last week from the IMF, wrote an email to his fmr colleagues on Sun evening to express his "profound bitterness and frustration for having had to leave in these circumstances." He went on to say, "I deny in the strongest terms possible the accusations I have to face." CNN made the email public. DSK said he is confident he will clear himself of the charges, but explained he could not accept "the fact that the Fund (and you my colleagues) should in any way have to share my personal nightmare. Therefore, I had to leave"

Joseph Stiglitz: The IMF cannot afford to make a mistake with DSK's successor,   Daily Telegraph/ UK, 21 May 11:
An effective and fair IMF is essential - an institution that looks not just after creditors in the lending countries but after the well-being of all. And whatever the result of the case vs Strauss-Kahn, this much is clear - he was an impressive leader of the IMF and he re-established the Fund's credibility.  But the hard-fought gains of the Fund could easily be lost. That's why the choice of the head - and the process by which the choice is made - is so important, says Nobel Laureate '01/ Columbia U prof (Subramanian and Veron: A truly International Monetary Fund or a continuing North Atlantic Monetary Fund?, Peterson Inst, 19 May | IMF on the selection process for its next head)

Coming soon to a screen near you . . . ,   OECD Insights, 20 May 11:
"That action is best which procures the greatest happiness for the greatest numbers." - Francis Hutcheson (1694-1746). What we measure governs the things we strive for. And if we can't measure what's really happening in our lives, we won't design policies that best serve our needs. That's why numbers matter. But which numbers? Over the past 80 or so years, our societies have been gathering ever more hard data - on the economy, the health of our societies, and on the environment - as well as 'soft' data (like, "do you feel happy?"). The question has also been the focus here - since '08, OECD has hosted the Global Proj on Measuring the Progress of Societies. And on Tue (24th), the story of measuring progress steps up a pace with the launch of 'Your Better Life Index'

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