The Great Debate UK

Swift action needed to curb tapering impact on emerging markets

–Shaukat Aziz is the former prime minister of Pakistan. The opinions expressed are his own.–

Emerging markets have seen increasing economic uncertainty in recent months, due to a slowing down in quantitative easing (QE) and a reduction in economic activity. Several countries have experienced rising current account deficits, reducing capital flows, declining foreign reserves and depreciating currency values. Brazil, India, Indonesia, South Africa and Turkey have all seen their currencies drop by more than 10% this year.

These factors serve to lower consumer and investor confidence and delay new investments – in effect, creating a ‘wait and see’ attitude with the result that discretionary expenditure is deferred.

The need for leadership, bold structural reforms and a backstop liquidity cushion has never been greater. The best time to initiate structural reforms is when an economy is strong, capital flows are healthy and current and fiscal deficits within a comfortable range. However, even for those emerging market countries facing a difficult future, it’s not too late to push through the required economic and structural reforms.

from The Great Debate:

China’s commitment to growth will drive the global economy

From outside China, the Bo Xilai trial looks like the Chinese news event of the year, one of the preoccupations of Western media, along with corporate corruption and the clampdown on American and European companies. Yet these issues are no more than sideshows to the most important economic event of recent times, the unveiling and ratification of a major program for reforms for the next decade, which will occur at the Chinese government’s third plenum in November. The reforms promise to bring another great leap forward in China's dramatic ascent.

Chinese officials will reveal how long China will need to make the transition from an investment-led, middle-income country to an innovative, consumer-driven, high-income one -- and thus when it will become the world's largest economy. Can China circumvent what we know as "the middle-income trap" that has for decades denied high-income status for Latin America and Asian countries like Malaysia and Thailand?

UK recovery, but not on the high street

It was only a few days ago that George Osborne declared victory on economic malaise saying that the UK economy has turned a corner. The economic data has improved dramatically in the last six months, which gave Osborne a battering ram to launch a political attack on the Labour Party. Osborne used his moment in the sun to prove Ed Balls and all on the other side of the political bench wrong, saying that his austerity programme is right for Britain.

However, a little over 24 hours after Osborne’s speech a report from the Local Data Company made for uncomfortable reading as it detailed grim conditions on the UK’s high streets. High Street vacancy rates remain stubbornly high; out of 650 town centres in the UK the average vacancy rate is 14.1 percent, which is basically unchanged since February.

from The Great Debate:

A potential turning point for Syria

In the dizzying debate over U.S. military intervention in Syria, one key point of consensus stands out: Both the Obama administration and Congress recognize that the resolution to Syria’s conflict must come through a negotiated settlement. Key international actors share the same conclusion.

But how do we get there? Russia’s recent proposal to put Syrian chemical weapons under international control could open a viable path to a long-sought diplomatic solution.

The digital divide and inspiring young people into science

By Dr Juha Ylä-Jääski, President and CEO, Technology Academy Finland

– The opinions expressed are the author’s own –

Don’t let them be the lost generation.

The young have borne the brunt of the current economic malaise afflicting Europe and much of the developed world, with chronic levels of unemployment and gloomy prospects. At the same time, many are equipped or have the potential to be equipped with the digital skills that can transform our economies through innovation, qualities that their elders often struggle with.

We are failing to grasp this opportunity, however, with demand for tech skills outpacing the ability of educators to provide for it, opening a digital divide that is holding back our economies and our young people.

from The Great Debate:

Is the intelligence on Syria different this time?

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The long shadow of the faulty, hyped intelligence in the run-up to the war in Iraq has posed a huge barrier to President Barack Obama's efforts to win public and congressional support for a limited missile strike against Syria.

Remember the "mushroom cloud?" Both President George W. Bush and Condoleezza Rice, his national security adviser, used that terrifying phrase, invoking images of a nuclear holocaust, to push America along the road to war.

from John Lloyd:

Why democracy is an insufficient force against WMD

The British parliament’s refusal to countenance military intervention in Syria, and President Barack Obama’s decision to delay a strike until Congress approves it, point to a larger, even more dangerous contradiction of the mass destruction age.

That is, parliamentary democracy and weapons of mass destruction (WMD) sit ill together. Each confounds the other’s natural working.

from The Great Debate:

The politics of Syria

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Congressional Democrats are in a bind. If they vote to authorize a military strike on Syria, they could be putting the country on a slippery slope to war. But if they vote no, they will deliver a crushing defeat to their president.

What President Barack Obama did was call their bluff. Last week, more than 50 House Democrats signed a letter urging the president to “seek an affirmative decision of Congress” before committing to any military engagement. That was the Democrats' way of going on record to express reservations about what Obama sounded like he was going to do anyway. Then, lo and behold, the president decided to do exactly what they asked. Now it's their decision.

from Compass:

How to win the vote — and the war — on Syria

President Barack Obama’s surprise decision to seek congressional authorization for punitive cruise missile strikes against Syrian government targets presents the West with a perhaps final opportunity to align rhetoric with reality, and policy with purpose, in its response to the Syrian civil war.

The bad news is that the White House, by gambling on its ability to convince a recalcitrant Congress to go against an isolationist public mood, has opened itself up to the very real possibility of defeat as its opponents will seek to embarrass what they consider a reluctant, irresolute Commander-in-Chief. The good news is that that path to winning the vote in Washington is paved with setting out a new and credible course for a diplomatic solution to the crisis that can justify an act of war.

from The Great Debate:

Obama’s flawed case for a Syria strike

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We should not bomb Syria without a vital national security interest and a precise foreign policy objective.

Right now, the Obama administration has not established either.

Under the United States’ legal and historical precedents, a president faces the highest burden for justifying military attacks that are essentially optional: actions not required for self-defense and which are not in response to an attack on the United States -- or imminent threat of such attack.  Intervening in the Syrian civil war fits that difficult category.

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