News and Analysis: 27 Aug-7 Sep 12 | EmergingFrontierMarkets.com

Based in: Manila, Philippines

Posted on Fri, 7 Sep 12:

APEC summit seeks a spark in Asia, AP, 7 Sep 12 (via Gulf News):
Asia and Pacific leaders meeting in the Russian port city of Vladivostok this weekend are pushing ahead with their agenda for freer trade. Faltering vital signs in China and elsewhere suggest the global recovery may depend on it. But election-year politics and territorial spats are weakening the resolve of its 21 members to put aside differences for the sake of regional vitality (Top 10 Asia-Pac investment destinations, DTiNews/Viet. | APEC CEO Survey, PwC)

The man with the patience to cook a stone, Finance & Development, Sep-Nov '12:
At a reception earlier this year to mark the end of Justin Yifu Lin's tenure as World Bank chief economist, as is customary on such occasions, there was mention of a lifetime of achievement. Alongside these milestones were tributes to his most defining qualities: his determination, his flexibility, his pragmatism. If ever a person qualified for the description of "right man, right place, right time," Lin is that man - the first WB chief economist from a developing economy (World Bank appoints Kaushik Basu chief economist)

Martin Feldstein: Romney's tax plan can raise revenue, Wall Street Journal, 28 Aug 12 (courtesy Harvard):
Romney's plan to cut taxes and offset the resulting revenue loss by limiting tax breaks has been attacked as "mathematically impossible". He would reduce all individual income-tax rates by 20%, eliminate the estate tax, and limit tax deductions/loopholes that allow high-income taxpayers to reduce their tax payments, says Pres Reagan's Council of Econ Advisers' fmr chair/Harvard prof (Summers: The reality of trying to shrink gov't, Wash.Post)

Posted on Wed, 5 Sep 12:

Persisting divides in global competitiveness as Switzerland, Singapore, Finland top rankings, World Econ Forum, 5 Sep 12:
Switzerland, for the 4th consecutive year, tops the overall rankings in the latest 'Global Competitiveness Report' released today, followed by Singapore, Finland, Sweden, and the Netherlands. The large emerging market economies (BRICS) display different performances, with China (29th) continuing to lead the group. Only Brazil (48th) moves up this year, with S Africa (52nd), India (59th) and Russia (67th) experiencing small declines in rankings (Full rankings [PDF])

Horizons: The man who changed the way the world looked at science, Observer, by J Naughton, 19 Aug 12:
Fifty years ago this month, one of the most influential books of the 20th century was published. Many if not most lay people have probably never heard of its author, Thomas Kuhn, or of his book, The Structure of Scientific Revolutions (1962), but their thinking has almost certainly been influenced by his ideas. The litmus test is whether you've ever heard or used the term 'paradigm shift', which is probably the most used - and abused - term in contemporary discussions of intellectual progress and organizational change

D Acemoglu and J Robinson: 10 reasons countries fall apart. Foreign Policy, July-Aug '12:
Some nations fail spectacularly, with a total collapse of all state institutions, as in Afghanistan after the Soviet withdrawal and the hanging of Pres Najibullah from a lamppost, or during the decade-long civil war in Sierra Leone, where the gov't ceased to exist altogether. Most countries that fall apart, however, do so not with a bang but with a whimper. States don't fail overnight. The seeds of their destruction are sown deep within their political institutions, say MIT/Harvard profs and co-authors of Why Nations Fail (2012)

Posted on Mon, 3 Sep 12:

Bergsten: Why the Euro will survive - Completing the continent's half-built house, Foreign Affairs, Sep-Oct '12 [courtesy Peterson Inst]:
As doom and gloom about the euro abounds, an increasing number of economists question whether the common currency can survive. An even deeper crisis allegedly threatens the world economy. To be sure, the euro area faces serious econ and financial problems. The area is in the midst of multiple overlapping and mutually reinforcing crises. Yet for all the turmoil, fears of serial defaults or the total collapse of the euro are vastly overblown, says Inst pres

Cementing new power structures, Bertelsmann Foundation/Ger., by J Doody, 20 July 12:
The world is watching to find out whether the BRICS (Brazil, Russia, India, China and S Africa) can provide an alternate engine for growth in a post-Western world, or whether their star will fall along with that of the developed economies. But in growth or decline, it is clear that their fortunes will have significant implications for the future of the global economy (Reisen: BRICS--Emerging, not dominating, OECD (blog), 13 Aug)

Robert Skidelsky: Ian Little -- Economist who urged pragmatic thinking on issues of overseas aid, Independent, 6 Aug 12:
Little had the finest mind in post-war British economics. In the opinion of his Oxford contemporary Francis Seton he "combined the most rarefied forms of abstract thinking with a down-to-earth pragmatism". He is best known for his contributions to welfare and development economics. But intellectual fastidiousness and a "take it or leave it" attitude, combined with difficult personal circumstances, prevented him from securing the recognition he deserved, says pre-eminent biographer of Keynes (Book in his honor, Oxford U Pr | Lal: The ending of conversations, Biz Standard/India | Joshi: Promoter of liberal trade policies dies. FT)

Posted on Fri, 31 Aug 12:

Why tiny Jackson Hole, Wyo. is in the int'l spotlight, AP, 30 Aug 12 [courtesy CSMonitor]:
Every Aug, the world's financial markets shift their attention from the centers of global commerce - NY, London, Tokyo - to a spot in northwest Wyoming -- Jackson Hole, which isn't even a town. It's a valley. The biggest town, Jackson, has a population of 9,710. On Fri, they will hear a speech by Fed Chair Bernanke. So how did this place come to wield such outsize importance in global econ affairs? (Kansas City Fed: Jackson Hole background info [PDF] | Agenda: The Changing Policy Landscape)

Iowa Electronic Market traders have pushed down Romney price, Univ Iowa, 24 Aug 12:
Polls show a tight race between Romney and Pres Obama on the eve of the Republican National Convention, but the 2 are heading in opposite directions on the Iowa Electroni Market. Romney's contract price on the IEM's "Winner Take All" market has dropped by 16% since reaching its peak of 47.6 cents on 10 June. It was trading recently at 40 cents after having gone as low as 36 cents earlier in the week. That means the market believes Romney has a 40% probability of winning the popular vote (Latest Iowa data | Intrade's data [in Ireland]: Obama vs Romney)

The tiger and the dragon, Finance & Development, by M Syed and J Walsh, Sep-Nov '12:
China and India are the giants of the emerging world. But the 2 have pursued very different dev't paths. China's econ model has focused on gearing its manufacturing industries toward exports. Thus China has become the workshop of the world. India has also become increasingly integrated with the rest of the world, though domestic demand and services have played a more important role. India's growth has been less spectacular, but in many industries, from petrochemicals to software, it has achieved success

Posted on Wed, 29 Aug 12:

Mario Draghi: The future of the Euro - stability through change, Die Zeit/Ger., 29 Aug 12 [courtesy ECB]:
Across Europe, a fundamental debate is taking place about the future of the euro. Many citizens are concerned about where Europe is heading. Yet the solutions presented appear to them unsatisfactory. This is because these solutions offer binary choices: either we must go back to the past, or we must move to a United States of Europe. My answer to the question is: to have a stable euro we do not need to choose between extremes, says European Central Bank pres

The strategic context - Q&A with Michael Porter and Jan Revkin, Harvard Mag, Sep-Oct '12:
An interview with the Business School's Porter and Rivkin, head of its strategy unit. Q: What prompted you to begin this inquiry on US competitiveness?; In the 80s, Americans were concerned about the competitive challenge from Japan. Are current challenges different?; In this context, you advance an unusual definition of competitiveness. Is that really the fulcrum for your whole project? (The looming challenge to US competitiveness, Harvard Bus.Rev [Free access till end-Oct])

John McArthur: From physical BRICS to digital CHIIPs, Brookings Inst, 2 July 12:
It has become commonplace over the past decade to describe the BRICS--Brazil, Russia, India, China, and, more recently, S Africa--as a defining force in the global economy. While few can dispute the major shifts away from the advanced economies like US and those in Europe, the world's future econ frontiers might be better captured by the acronym CHIIPs--referring to China, India, Indonesia and Philippines. The world is increasingly defined more by digital chips than physical bricks, says UN Foundation/Inst senior fellow (Meeker/Wu: 2012 Internet Trends, Kleiner, Perkins, Caufield, Byers, 30 May)

Posted on Mon, 27 Aug 12:

Friend and foe--Samsung, Apple won't want to damage parts deal, Reuters, 27 Aug 12:
While Samsung is reeling from a patent pounding by its smartphone rival Apple, this is unlikely to damage the other part of their relationship - where Samsung is the sole supplier of Apple-designed chips that power the iPhone and iPad. It plans to appeal the US verdict and a damages bill for $1.05 bln for copying critical features of Apple's popular mobile devices (OECD, WTO to start measuring trade in value-added as production chains globalize, 15 Mar)

Spence and Brady: Why are governments paralyzed?, Project Syndicate, 16 Aug 12 [courtesy New Europe/Belgium]:
The negative effects of our econ problems are now interacting, feeding back on themselves, and spreading to the rest of the global economy. And yet, despite a palpable sense of concern that something is very wrong, the prognosis for significant change is bleak - and deteriorating. What accounts for the apparent lack of effective policy action across a broad range of nations and regions?, ask Nobel Laureate '01/NYU prof; and Hoover Inst senior fellow/Stanford prof

New index shows which countries are best for entrepreneurs, Imperial College, 23 Apr 12:
A new global ranking of the entrepreneurial performance of countries, the Global Entrepreneurship and Development Index [PDF], compares and ranks 78 nations [PDF], and identifies the strengths and weaknesses of their economies. GEDI analyzes 3 measures, using a range of data to explore the entrepreneurial activities, aspirations, and attitudes of each country (Nearly 400 million entrepreneurs are active, says Global Entrepreneurship Monitor, Babson College, Jan '12)

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