The Great Debate UK
from The Great Debate:
Fickle investors have spurned emerging markets in recent weeks, but this rout has obscured a more alluring vista out on the horizon.
Developing economies now account for 50 percent of global output and 80 percent of economic expansion and are projected to continue growing far faster than developed nations. They are expected to possess an even larger share of global growth, wealth and investment opportunities in years to come. So much so that the labels investors use to classify some of these nations will change as the developing develop and the emerging emerge into more potent economic powers
But this long-term view has been lost on many of those who look to emerging market assets for a higher yield in the short term. Their ardor cooled when the Federal Reserve signaled it may soon ease the stimulus that has kept credit cheap, signaling higher interest rates ahead. That was coupled with signs of slower growth in key emerging markets like China and Brazil.
Still, the developing world’s gross domestic product growth of 5 percent this year and 5.4 percent next, as projected by the International Monetary Fund, will far outpace the advanced economies’ 1.2 percent and 2.1 percent. Developing countries are now also better armed to keep panic at bay, with more foreign exchange reserves than before and less aggregate debt than developed nations. Many have put their economies on firmer foundations.
It is more than a year since the devastating July and August 2010 floods in Pakistan that affected about 20 million people and killed an estimated 2,000. Many believe that the disaster was partially fuelled by global warming, and that there is a real danger that Pakistan, and the Indian subcontinent in general, could become the focus of much more regular catastrophic flooding.
Come back Mr Fukuyama, all is forgiven.
In his 1992 book "The End of History and the Last Man", American political scientist Francis Fukuyama famously argued that all states were moving inexorably towards liberal democracy. His thesis that democracy is the pinnacle of political evolution has since been challenged by the violent eruption of radical Islam as well as the economic success of authoritarian countries such as China and Russia.
Now a study by Russian investment bank Renaissance Capital into the link between economic wealth and democracy seems to back Fukuyama.
By Laurance Copeland
After one year, the progress report on the Coalition reads “Moving in the right direction, but with a lot more to do”.
Nonetheless, it is a prisoner of its commitment at the outset to leave two departmental budgets untouched: the NHS and international aid. It is not simply the amounts of money involved (colossal in the case of the NHS, relatively small for aid). It is also the signal it sends that there is such a status as sacrosanct, which immediately begs the question from policemen, firemen, teachers, the legal system, the armed forces: why isn’t our budget sacrosanct too?
from Pakistan: Now or Never?:
"Cricket diplomacy" has always been one of the great staples of the relationship between India and Pakistan. The two countries have tried and failed before to use their shared enthusiasm for cricket to build bridges, right back to the days of Pakistan President Zia ul-Haq, if not earlier.
So when Indian Prime Minister Manmohan Singh announced last week that he was inviting Prime Minister Yusuf Raza Gilani and President Asif Ali Zardari to watch the semi-finals of the Cricket World Cup in Mohali, India, the temptation was to dismiss it as an old idea.
from Pakistan: Now or Never?:
The foreign secretaries, or top diplomats, of India and Pakistan are expected to meet on the sidelines of a South Asian summit in Thimpu, Bhutan on Feb 6/7 to try to find a way back into talks which have been stalled since the attack on Mumbai in November 2008. Progress is expected to be limited, perhaps paving the way to a meeting of the foreign ministers, or to deciding how future talks should be structured.
Expectations are running low, all the more so after a meeting between the foreign ministers descended into acrimony last July. And leaders in neither country have the political space to take the kind of risks needed for real peace talks right now. Pakistan is struggling with the fall-out of the assassination of Punjab governor Salman Taseer among many other things, while Indian Prime Minister Manmohan Singh has been weakened by a corruption scandal at home.
from Davos Notebook:
Jim O'Neill, the Goldman Sachs economist who coined the term BRICs back in 2001, is adding four new countries to the elite club of emerging market economies. But does his new edifice have the same solid foundations?
In future, the BRIC economies of Brazil, Russia, China and India will be merged with those of Mexico, Indonesia, Turkey and South Korea under the banner “growth markets,” O'Neill told the Financial Times.
from Environment Forum:
Feeling hungry? Maybe that's because of all the news, from around the world, about food today -- how much people produce, how much more they need, how much it's going to cost, how much of an effect it will have on climate change, and vice versa.
Starting in Washington, the U.S. Agriculture Department reported that American stockpiles of corn and soybeans will shrink to surprisingly low levels this year, which sent grain prices soaring to 30-month highs. Bad weather in places like Australia and rising world demand led by China are partly responsible for cutting crop inventories around the globe.
from Pakistan: Now or Never?:
Reading through some of the many thousands of words written about Richard Holbrooke, for me two stories stood out in their ability to capture what will be lost with his death:
The first was in Rajiv Chandrasekaran's obituary in the Washington Post:
"While beleaguered members of Mr. Holbrooke's traveling party sought sleep on transcontinental flights, he usually would stay up late reading. On one trip to Pakistan, he padded to the forward of the cabin in his stocking feet to point out to a reporter a passage in Margaret Bourke-White's memoirs of the time of India-Pakistan partition and independence. Bourke-White quoted Pakistani leader Muhammad Ali Jinnah telling her that Pakistan would have no problems with the Americans, because 'they will always need us more than we need them.' Mr. Holbrooke laughed, saying, 'Nothing ever changes.'"
Decades of mistrust haven't stopped China and India's trade from tripling in the past five years. Now China wants to restart free trade talks when Premier Wen Jiabao visits New Delhi later this week. India has long resisted such an agreement. Yet more open trade should leave both sides winners.
Since the two countries warred over a border dispute in 1962, China and India have had a fractious relationship. But on some issues they agree. India helped China stop an agreement over climate change in Copenhagen that both felt was too soft on rich countries. Chinese and Indian state-owned firms have bid together for oil and gas assets.