News and Analysis: 02-16 May 2016 | EmergingFrontierMarkets.com

Based in: Manila, Philippines

Posted on Mon, 16 May 2016:

John Cochrane: Ending America's slow-growth tailspin, WSJ, 3 May 16 [PDF, courtesy U Chicago]:
Sclerotic growth is America's overriding econ problem. From 1950 to 2000, the economy grew at an average rate of 3.5% annually. Since 2000, it has grown at half that rate. Looking ahead, solving almost all of America's problems hinges on re-establishing robust growth., writes U Chicago prof

Local growth and development - An era of new priorities, OECD Observer, by M Landel, May '16:
"Global sourcing" typically involved moving the company's operations to wherever labor was cheapest. First the production work went abroad, and then companies were offloading all but their most essential core activities. Today this paradigm seems out of date, at best, writes CEO of services firm Sodexo

"Medical tourism" poised for continued growth, Travel Market Report, 5 May 16:
The past few weeks brought 2 new reports pointing to growth in the medical tourism market. One is a report titled "World Medical Tourism Market -- Opportunities and Forecasts, 2014-2022." And the 2nd is a ranking of 40 nations by the Medical Tourism Assn (2016 Medical tourism index)

Posted on Fri, 13 May 2016:

Bangladesh Bank heist similar to Sony hack; 2nd bank hit by malware, Thomson Reuters Foundation, 13 May 16:
Global financial network SWIFT disclosed a previously unreported attack on a commercial bank. It did not say which bank it was or whether it had lost money, but cyber-security firm BAE Systems said a Vietnamese bank, which it did not name, had been a target. It was not clear if they were referring to the same attack

Joseph Stiglitz: The new era of monopoly is here, Project Syndicate, 13 May 16 [via Guardian]:
In today's economy, many sectors - telecoms, cable TV, digital branches from social media to internet search, health insurance, pharmaceuticals, agro-business, and many more - cannot be understood through the lens of competition, writes Nobel Laureate '01

Iranian, Indian cities ranked worst for air pollution, Reuters, 12 May 16 [via Yahoo]:
India has 4 of the 10 cities in the world with the worst air pollution, the World Health Org said. But while WHO experts acknowledge India faces a "huge challenge", many nations are so bad that they have no monitoring system and cannot be included in its ranking. The dirtiest air was recorded at Zabol in Iran (WHO media release)

Posted on Wed, 11 May 2016:

Greg Mankiw: The economy is rigged, and other presidential campaign myths, NYT, 8 May 16 [PDF, courtesy Harvard]:
If you want to learn about the economy, there are good and bad places to go. Dissembling and exaggeration are no strangers to politics, but this year's campaigns have been esp. egregious. Here are six myths that underlie much of the recent rhetoric, writes Pres GW Bush's Council Econ Advisers chair

Print new money to boost the global economy - Fmr UK finance industry regulator, London Business School, 11 Apr 16:
While speaking at LBS, Adair Turner said that overt money finance or "helicopter money" -- where central banks print new money to finance tax cuts and public expenditure increases, or directly distribute it to households or businesses -- could strengthen struggling economies

Revving the engine of trade in services, World Bank, 20 Apr 16:
Trade fell dramatically during the financial crisis and has grown sluggishly since then. But this overall trend obscures an important fact: trade in services -- from health and educ to transport, telecom, and tourism -- has proven remarkably resilient. This presents developing nations with significant opportunities

Posted on Mon, 09 May 2016:

An Open Letter to world leaders about tax havens, by 300 economists, Oxfam, 9 May 16 (scroll):
We urge you to use this month's anti-corruption summit in London to make significant moves towards ending the era of tax havens. The existence of tax havens does not add to overall global wealth or well-being; they serve no useful economic purpose (List of signatories, by country)

Infographic: Philippines election - Can the country stay on track?, WSJ, 18 Apr 16:
Under Pres Benigno Aquino III, the nation has recovered its econ credibility. As the democracy of more than 100 million people votes, we chart the nation's recent progress, and ask what his successor must do to complete the nation's transformation from the "Sick Man of Asia" into the region's next econ star

Coffers: Dobbs and assoc -- Why investors may need to lower their sights, McKinsey, Apr '16:
Given the waves of turbulence that have swept through financial markets in recent years, it may sound odd to describe the past 3 decades as a golden age for investors. But the reality is that total returns on equities / bonds in the US / Western Europe from '85 to '14 were significantly higher than the long-term average

Posted on Fri, 06 May 2016:

Federal budget expert blasts failed politics for lack of economic progress, Stanford Univ, 15 Apr 16:
In a blunt, sometimes funny, speech delivered in accepting the prize for contributions to econ policy, Alice Rivlin let loose on the political gridlock she says is keeping the US economy from reaching its fullest potential (It's not the economy, stupid -- it's failed politics!)

Structural reforms necessary, politically difficult, IMF Survey Mag, 15 Apr 16:
Reforms to the structure of a country's economy to make it more productive and boost long-term growth are among the toughest to achieve, given opposition from vested interests, the rise of populism, and competing views about which reforms to undertake, when, and how

The future of globalization - Q&A with author of "From Silk to Silicon", International Economy Mag, Mar '16 [PDF]:
Jeffrey Garten recently talked with our editor. Q-You tell the story through the lives of 10 transformative leaders who opened the doors to progress. They are Genghis Khan, Prince Henry, Robert Clive, Mayer Amschel Rothschild, Cyrus Field, John D. Rockefeller, Jean Monnet, Margaret Thatcher, Andy Grove, and Deng Xiaoping

Posted on Wed, 04 May 2016:

Olivier Blanchard: Slow growth is a fact of life in the post-crisis world, FT, 13 Apr 16 [courtesy Peterson Inst] (Alternative link):
The weak recovery in advanced countries also goes a long way in explaining the slowdown in emerging markets. While domestic factors play a role, and the evolution of China is largely 'sui generis', lower exports and less demand for commodities have led to lower output, writes fmr IMF chief economist

Coffers: Low returns are here to stay, London Business School, 4 Mar 16:
The Global Investment Returns Yearbook 2016 -- authored by Dimson, Marsh and Staunton from LBS -- is based on the investment returns of 23 national stock markets since 1900. The key message for investors is to focus on how much time you are in the market and not on timing the market

Coffee/Tea Room: Angus Deaton -- Letter from America - a special edition from Stockholm / Wash., Royal Economic Society, Apr '16:
In these letters, I have only occasionally interrupted accounts of serious issues with cameo personal appearances (even though my shape is now remarkably similar to that of the late Alfred Hitchcock). Many have written about the splendors of Stockholm, writes Nobel Laureate '15

Posted on Mon, 02 May 2016:

Productive inclusion - A silver bullet or a new development fad?, Brookings Inst (blog), by J Rigolini, 12 Apr 16:
"Give a man a fish and you feed him for a day; teach a man how to fish and you feed him for a lifetime." This old proverb illustrates well the principle of productive inclusion programs, which aim to boost productivity and incomes of the poor, writes World Bank sector leader for LatAm

Tackling rural development is essential for achieving the Sustainable Development Goals, OECD, 31 Mar 16:
Over 3 billion people currently live in rural areas, with around 92% of the rural pop. located in developing nations. Achieving the recently launched SDGs will depend heavily on designing and implementing effective policies to lift millions of rural poor out of poverty

Spence and Brady: Growth vs. political instability, Project Syndicate, 25 Mar 16 [via Japan Times]:
Western democracies have seen a rapid rise in political instability, characterized by frequent shifts in governing parties. The question now is how to improve econ performance at a time when political instability is impeding effective policy making, write Nobel Laureate '01; and Stanford prof

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