News and Analysis: 10-21 Sep 12 | EmergingFrontierMarkets.com

Based in: Manila, Philippines

Posted on Fri, 21 Sep 12:

India stages strike over supermarket reforms, BBC News, 20 Sep 12:
Opposition parties and trade unions in India have staged a day-long strike over plans to open the nation's retail sector to global supermarket chains. Calcutta and Bangalore were virtually shut down, but the response in other parts of the nation was mixed. The reforms, which ministers say are needed to revive the economy, were formally introduced on Thu. But small shops fear they will be put out of business and many people are angry at recent fuel price rises (Will global supermarkets help India?)

Nancy Birdsall: Put the UN General Assembly on 'The Daily Show'! (Or maybe not?), Ctr Global Dev't (blog), 18 Sep 12:
Last week I gave a speech at the UN General Assembly. I was the keynote speaker for a session on the global economy and the Millennium Dev't Goals. I came away with mixed feelings. The inefficiency of the UN can be maddening--the place is badly overdue for a good skewering on 'The Daily Show'. Yet, precisely because it provides an opportunity for all nations in the world to have their say, it has unique legitimacy that can be put to good use in setting global norms--such as purpose of dev't, says Ctr pres

Villages as laboratories in debate on Africa aid, AP, 16 Sep 12 [via La Crosse Tribune]:
The 14 Millennium Villages in Africa are part of a global anti-poverty initiative launched under UN auspices in 2000. The goal is to bring people out of poverty with a big push of assistance that will wean them off aid after several years. The villages get fertilizer and improved seed, irrigation canals, clinics and health workers, school meals, roads and better access to markets. Columbia U's Earth Inst director Jeffrey Sachs says that villagers in Africa are stuck in a poverty trap, and with the right help can escape it for good. But he has his critics

Posted on Wed, 19 Sep 12:

Japan's central bank joins Fed in easing policy, AP, 19 Sep 12 [via Houston Chronicle]:
Japan's central bank expanded its monetary easing by 10 trillion yen ($126 bln) Wed., moving to nurture the country's feeble econ recovery and cushion its exporters from the yen's rise. The Bank of Japan wrapped up a two-day policy meeting by increasing its asset-purchasing fund. That followed the US Fed's decision last week to stimulate growth through so-called quantitative easing. Recent weak econ data and strong pressure from politicians anxious not to see a further deterioration ahead of elections may have played a role

Global debt crisis is far from over, conference hears, IMF Survey Mag, 18 Sep 12:
The sources of the global financial turmoil, how best to detect a financial crisis before it is too late, and the consequences of an attendant surge in public debt are among key issues policy makers ponder 4 years after the onset of the worst global financial crisis since the Great Depression. In a recent IMF conference of leading economists, keynote speaker Harvard's Carmen Reinhart sounded a somber note. The current crisis is far from over, and the debt is bigger than meets the eye

Islamic financing swells, Star/Malaysia, 19 Sep 12 [PDF, courtesy GIFForum]:
The size of global Islamic finance assets is expected to grow between 10% and 15% annually over the next 3 years buoyed by strong demand and supply factors as well as effective regulation and quality of services that will sustain growth, acc to a World Bank top official. He said globally, 'shariah'-compliant assets were showing remarkable growth, hovering between US$1.2 trillion and US$1.3 tln in asset size (Islamic finance--Learning lessons from Malaysia, MEED/UAE)

Posted on Mon, 17 Sep 12:

Japan firms stop China operations, AFP, 17 Sep 12 [via Bangkok Post]:
Japanese firms including Panasonic suspended operations at plants in China, reports said Mon, after mass anti-Tokyo protests at the weekend over disputed islands in the East China Sea. The camera/printer maker Canon, meanwhile, suspended 3 of its 4 main plants Mon and Tue to ensure the safety of its employees, a company spokesman said. Speaking in Tokyo, US Defense Secy Panetta called for diplomatic efforts to resolve the worsening spat

Kemal Derviş: World economy--convergence, interdependence, and divergence, Finance & Dev't, Sep-Nov '12:
The world economy entered a new age of convergence around 1990, when average per capita incomes in emerging market and developing economies taken as a whole began to grow much faster than in advanced economies. The sharp division between rich and poor nations that characterized the world since the industrial revolution in the early part of the 19th century is now weakening. The industrial revolution and colonialism brought about great divergence, says Brookings Inst vice-pres/fmr head of UNDP

R Backhouse and B Bateman: Wanted--worldly philosophers, NY Times, 5 Nov 11 [courtesy Univ Nebraka-Lincoln]:
It's become commonplace to criticize the "Occupy" movement for failing to offer an alternative vision. But the thousands of activists in the streets of NY and London aren't the only ones lacking perspective: economists, to whom we might expect to turn for such vision, have long since given up thinking in terms of econ systems--and we are all the worse for it, say profs at U Birmingham and Denison U (Q&A with Bruce Caldwell, dir of Duke U's Ctr Hist.Polit.Econ., Richmond Fed, July-Sep '10 [PDF] | INET grant for Duke)

Posted on Fri, 14 Sep 12:

Bernanke's friend credited with encouraging Fed shift, Reuters, 14 Sep 12 [via Globe and Mail/Can.]:
The economist credited with helping encourage the Fed to take a new, bold approach to monetary policy says the latest plan to buy bonds will prove more effective than past efforts to boost the US econ recovery. Taking a page from the academic paper presented to the central bankers' conference in Jackson Hole, Wyo. in late Aug by Columbia U’s Michael Woodford, the US central bank on Thu said it would continue to buy financial assets until there is a 'substantial' improvement in the labor market

Mohamed El-Erian: Central banks' "responsible irresponsibility"?, Estado de Sao Paulo/Brz, 11 Sep 12 [transl. by HuffPost]:
I suspect that central bankers, whether in Europe or the US, realize that--acting by themselves--they cannot deliver the much-needed outcomes of growth, jobs and financial stability. Rather than guarantee the destination, they are helping to define the journey. They are building bridges, hoping to buy time for politicians to overcome their bickering. Time will tell whether this strategy will work. In the meantime, the rest of the world has no choice but to adapt to this "responsible irresponsibility", says CEO and co-chief invest. officer of PIMCO

Rethink role of state in finance, says World Bank, 12 Sep 12:
The worldwide financial crisis brought into relief the role of financial systems in econ development and poverty reduction. The Bank's 1st-ever "Global Financial Development Report" contributes to the policy debates on this topic, drawing on several new global surveys and unique country-level data covering more than 200 economies since the 1960s, emphasizing the perspective of low- and middle-income nations. It re-examines a basic question highlighted by the crisis: what is the proper role of the state in financial dev't? (FAQs about the report)

Posted on Wed, 12 Sep 12:

German court clears path for European rescue fund, AP, 12 Sep 12 [via Nat'l Public Radio]:
Germany's highest court paved the way Wed. for the creation of Europe's 500 bln euro ($640 bln) rescue fund, after it rejected calls to block it. The Federal Constitutional Court's decision clears the way for German Pres Gauck to ratify the fund, the European Stability Mechanism. The ESM wouldn't have been able to start work without Germany, its No.1 contributor. Opponents had challenged Germany's ratification of the ESM, arguing it violated the nation's constitution

Switzerland retains 1st-place position in innovation performance, says global innovation index, Insead/WIPO, 3 July 12:
For the 2nd year running, Switzerland, Sweden, and Singapore lead in overall innovation performance, acc to the Global Innovation Index 2012. The report ranks 141 nations on the basis of their innovation capabilities and results. It shows that the dynamics of innovation continue to be affected by the emergence of new successful innovators, as seen by the range of nations across continents in the top 20 (Full rankings) [PDF]

Growth in tourism industry picks up, OECD, 19 July 12:
Int'l tourism arrivals have returned rapidly to steady growth, showing tourism's resilience to the effects of the global econ and financial crisis, acc to a new report. The report reviews tourism in 51 nations, incl all OECD and EU members. In '10, total int'l arrivals in all nations reached 940 mln, 6.7% above the '09 figure, with most growth taking place in Asia-Pacific. It suggests key policy reforms and effective governance practices to boost competitiveness and sustainability

Posted on Mon, 10 Sep 12:

Sweden, US, UK top global ranking of first ever Web index, World Wide Web Found./Switz., 5 Sep 12 [PDF]:
Sweden is best in the world at putting the Web to work, beating the US and UK for the top spot, acc to a new global study launched by Tim Berners-Lee on behalf of the foundation. However, Internet access remains a luxury good in most nations. Across the 61 nations surveyed, broadband connections still cost almost half of monthly income per capita. The Web Index is the most comprehensive assessment to date of the Web's impact around the world (Full rankings)

Charles Kenny: Why millions of people choose to live in urban squalor, Foreign Policy Mag, Sep-Oct '12:
There is something viscerally repulsive about urban poverty: the stench of open sewers, the choking smoke of smoldering trash heaps, the pools of fetid drinking water filmed with the rainbow color of chemical spills. It makes poverty in the countryside seem almost Arcadian by comparison. With life so squalid in urban slums, why would anyone want to move there?, asks Ctr Global Dev't senior fellow

Edward Lazear: There is no 'structural' unemployment problem, Wall St Journal, 3 Sep 12 [courtesy Hoover Inst]:
The unemployment rate has exceeded 8% for more than 3 years. This has led some to speculate that there has been a fundamental change in the labor market. The view is that today's economy cannot support unemployment rates below 5%--like the levels that prevailed before the recession. Those in gov't may take some comfort in this view, says Pres. G W Bush's Council of Economic Advisers fmr chair/Stanford prof (Tyson: Obama vs Romney on jobs, Proj Syndicate, July '12) [via Guatemala Times]

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