News and Analysis: 1-15 Apr 2013 | EmergingFrontierMarkets.com

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Posted on Mon, 15 Apr 13:

Strong domestic demand drives increasing growth in East Asia/Pacific, World Bank, 15 Apr 13:
Driven by strong domestic demand, developing East Asia/Pacific economies continue to be an engine of global growth, growing at 7.5% in '12--higher than any other region in the world, says the bank in its latest analysis of the regional economy released today (Mon.). The East Asia/Pacific region contributed around 40% of global growth in '12, and the global economy continues to rely on the region's growth. An emerging issue is the risk of overheating in some of the region's larger economies

John Kay: Prosperity requires more than rule of law, FT, 10 Apr 13 [courtesy author's Web site]:
The idea that 'institutions matter' is a relatively recent amendment to the standard corpus of econ thinking. Only in the past 2 decades has it become a mantra of dev't economists. But to say institutions matter is to beg the question: which institutions? So when the Chinese ask how to establish the institutions to support a prosperous economy, it is not enough to mumble: "Property rights and rule of law – go to Denmark and see," writes Oxford Said Business Sch founding dir / advisory board member, Inst New Econ Thinking

Nook & cranny: Interview with Univ Michigan's Joel Slemrod, Richmond Fed Reserve Bank, Jan/Mar '11 [PDF]::
Slemrod has spent his career working in the field of public finance and directs the Office of Tax Policy Research at Michigan. He also has held previous appointments with the US Treasury Dept and the Pres.'s Council of Econ Advisers. Q: In a '05 paper, you described your 'Beautiful Tax Reform'. Could you briefly discuss the system that you laid out? Also, do you think it is possible to divorce normative concerns from positive concerns when thinking about tax policy, or will equity issues always arise?

Posted on Fri, 12 Apr 13:

'Social progress index' designed by team led by Harvard's Porter ranks Sweden as No.1, Social Progress.org, 11 Apr 13 [PDF]:
Sweden is the most socially advanced nation globally, says a new index released Thu at the Skoll World Forum, an int'l platform for accelerating innovative solutions to the world's most pressing social issues. Britain is ranked 2nd, Germany 5th, US 6th, and Japan 8th. The index ranks 50 nations based entirely on social and environmental measures covering basic human needs, foundations of well being and opportunity (More info)

Is growth in emerging economies good for the US?, Peterson Inst, 19 Mar 13:
Free trade agreements and the surge in US foreign direct investment in emerging markets have stirred fears in the US about job losses and other ill econ effects. In the Inst's new study, Rising Tide: Is growth in emerging economies good for the US?, Univ of Cape Town's Edwards and Harvard's Lawrence undertake an extensive survey of the empirical literature to date and more importantly conduct their own in-depth analysis of the evidence

Leading sustainable tourism businesses recognized by World Travel &Tourism Council, Dubai Chronicle, 10 Apr 13:
Businesses and destinations that are leading the way in sustainable tourism have been recognized at the WTTC's 'Tourism for Tomorrow Awards' ceremony Wed. in the United Arab Emirates. This year's 4 winners are Peaks of the Balkans – Albania, Kosovo, Montenegro (for destination stewardship), El Nido Resorts - Philippines (for community benefit), & Beyond - SAfrica (for conservation), and Air New Zealand (for global tourism business) (About the awards)

Posted on Wed, 10 Apr 13:

Developing Asia's growth steps up in '13, Asian Dev't Bank, 9 Apr 13:
Rising private consumption and stronger intra regional trade will spur a pickup in growth in developing Asia in '13 and '14, as econ activity in the US and Europe remains in the doldrums, says the bank's Asian Development Outlook. The report warns that political risks linked to wrangling over the US debt ceiling, fatigue over tough austerity measures in the euro zone, and long simmering tensions over border disputes in Asia present the main threats to the outlook (Low-income nations show comeback in growth performance, IMF Survey Mag)

Robert Solow: How to save American finance from itself, New Republic, 8 Apr 12:
Central banking is not rocket science, but neither is it a trivial pursuit. Running a central bank is in one way a little bit like flying a plane or sailing a boat: much of the time standard responses and small adjustments will do just fine, but every so often a situation arises in which fundamental understanding, knowledge of history, and good judgment can make the difference between riding out the storm and crashing. There was no such person in charge in 1929, and the result was disaster. There was one in 2008, writes Nobel Laureate '87 / MIT Inst prof emeritus

'Post-2015: inclusive and sustainable future,' European Report on Development, 9 Apr 13 [PDF]:
The European Development Commissioner welcomed Tue the new European Report on Development on how global action can best support the efforts of the poorest countries in achieving dev't. This year's report, which keeps poverty eradication as a central goal post-2015, though in an inclusive and sustainable manner, was prepared by a research team from 3 institutes: ÚK Overseas Dev't Inst, German Dev't Inst and European Ctr for Dev't Policy Management (Brief intro) [PDF, 2MB]

Posted on Mon, 8 Apr 13:

Morsi's Egypt hitting the economic wall, CBC News/ Can., by N Ayed, 8 Apr 13:
As it enters the 3rd year after its revolution, Egypt finds itself in a downward econ spiral that not only threatens individual livelihoods, but also the nation's stability. Big hits to the nation's tourism industry, foreign investment and spending power have made a serious dent in its financial health. "The fact that Egypt is in serious trouble--there is no doubt about that," says a financial expert who teaches at the American Univ of Cairo (Banking on a black market in Egypt, McClatchy News) [via Gulf Times/ Qatar]

Samuel George: BRIC by BRIC - Building an alternative to Bretton Woods development, Bertelsmann Found., 8 Apr 13:
For decades, the World Bank acted as the globe's foremost investor in dev't. In the wake of the 5th BRICS summit in SAfrica, World Bank Pres Jim Young Kim apparently tried to reaffirm his institution's relevance in a speech at Georgetown U. The reason: the World Bank faces mounting competition from the BRICS nations. But, as it would be the 1st to point out, increased competition yields the best result, writes Found. proj manager in Wash, DC

Gregory Mankiw: Give me your tired, your poor and your economists, too, NY Times, 10 Feb 13 [PDF, courtesy Harvard]:
As an economist committed to rational policy analysis, I have to acknowledge that the immigration debate also has a visceral, emotional element. I am the grandson of 4 immigrants from Ukraine, who arrived in the US about a century ago. None had more than a 4th-grade education, and none could speak English. Yet they found work, made a living and raised families. They lived modest lives, but their children did better than they did, writes fmr Pres G W Bush's Council of Econ Advisers chair / Harvard prof

Posted on Fri, 5 Apr 13:

Ending extreme poverty possible by 2030 - World Bank president, Georgetown U News, 2 Apr 13:
The World Bank pres told a Georgetown audience Tue that he is optimistic that the organization can end extreme poverty in its member nations by 2030. Dr. Jim Yong Kim said the bank wants to "seize the opportunity to end extreme poverty" because the goal is "within our grasp," despite the ambitious deadline. To achieve the desired result, he says growth rates must be accelerated-–esp. in South Asia and Sub-Saharan Africa, and efforts to curb inequality and enhance inclusiveness need to increase (WB media release)

Changing trends call for policy mix on jobs, growth, IMF Survey Mag, 4 Apr 13:
With over 200 million people out of work and global output subdued, job creation and growth that is widely shared are imperatives that resonate today in every nation. A new report discusses how the IMF can help govts devise strategies to improve job prospects and raise output levels. Its main finding is that while there is no single 'silver bullet' strategy, nor any 'one size fits all' approach, a stable econ environment, with low inflation and low output volatility, is the essential foundation

Nitin Nohria: Lessons I learned from Japan, Boston Globe, 26 Feb 13:
Not too long ago, I sat in the cabin of a Boeing 787 Dreamliner on a Tokyo-to-Boston flight after visiting biz leaders in Asia, incl Japan. A few days after, govts around the world grounded the new Dreamliner. While this may make traveling to Japan less convenient, we shouldn't let it deter us. After talking with the execs and leaders working to revive Japan's economy, I am certain that anyone who believes the West no longer has anything to learn from Japan is making a mistake, writes Harvard Business School dean

Posted on Wed, 3 Apr 13:

Q&A: Kaesong industrial complex, joint industrial park of North and South Korea, BBC News, 3 Apr 13:
NKorea's move to suspend access for SKoreans to a joint industrial park has caused concern among many observers and raised tension further on the Korean peninsula. The Kaesong industrial complex is located inside NKorea just across the demilitarized zone. The project was launched in '03, largely financed by the South to increase cooperation. It is one of the last remaining points of peaceful engagement between the 2 Koreas, and is often seen as an indicator of relations between them

Olivier Blanchard: Five lessons for economists from the financial crisis, Wall St Journal (blog), 1 Apr 13:
What did the worst financial crisis and deepest recession in 75 years teach economists and policymakers on whose watch it happened? At a recent London School of Econ forum, convened to honor Bank of England Governor Mervyn King, Blanchard offered some answers. He is well-positioned to offer such reconsideration. An internationally prominent macroeconomist, he spent 25 years on the MIT faculty before becoming IMF chief economist in Sep '08, just before the collapse of Lehman

World Bank's new vision on tackling poverty 'very unambitious', Guardian (blog), 21 Mar 13:
Optimism about the prospects of significant change at the World Bank could fall after leaked strategy documents revealed what critics have called an 'unambitious' and 'business-as-usual' approach to dev't, prioritizing economic growth over pressing social issues such as rising inequality. The bank's promotion of 'shared prosperity' fails to tackle inequalities and growing gaps between rich and poor, critics warn

Posted on Mon, 1 Apr 13:

Novartis is latest drug maker to lose Indian patent battle, AP, 1 Apr 13 [via CTV News/Can.]:
India's Supreme Court on Mon. rejected drug maker Novartis AG's attempt to patent an updated version of a cancer drug in a landmark decision that health activists say ensures poor patients around the world will get continued access to cheap versions of lifesaving medicines. The court's decision has global significance since India's $26 bln generic drug industry, which supplies much of the cheap medicine used in the developing world, could be stunted if Indian law allowed global drug firms to extend the lifespan of patents by making minor changes to medicines

Joseph Stiglitz: What is Italy saying?, Project Syndicate, 3 Mar 13 [via Social Europe Jl]:
The outcome of the Italian elections should send a clear message to Europe's leaders: the austerity policies that they have pursued are being rejected by voters. The European project, as idealistic as it was, was always a top-down endeavor. But it is another matter altogether to encourage technocrats to run nations, seemingly circumventing democratic processes, and foist upon them policies that lead to widespread public misery, writes Nobel Laureate '01 / fmr World Bank chief economist

A Alesina and V de Rugy: There is good and bad austerity, and Italy chose bad, Forbes, 7 Mar 13:
Italians understood the gravity of their econ situation in Nov '11 when Mario Monti was appointed, and were prepared to make sacrifices to help pull their country back from a cliff. The political leadership wasted the opportunity, choosing the easier path of higher taxes, and has paid the price at the polls, with a partial defeat. Italy's election outcome is not, as the critics claim, the resounding death knell of austerity economics in Europe, write Harvard prof, and George Mason U senior res fellow

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