The Great Debate UK

from The Great Debate:

The short and long of emerging markets

Photo

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.

from The Great Debate:

How Russia puts business behind bars

Photo

President Vladimir Putin at a news conference at the Kremlin in Moscow, July 1, 2013. REUTERS/Maxim Shemetov

The Russian Duma approved its much anticipated amnesty for entrepreneurs on July 2, seeking to halt the legal onslaught against the Russian business community. More than 100,000 Russian businesspeople are now either in prison or have been subject to criminal proceedings, according to Boris Titov, Russia’s official ombudsman for the defense of the rights of entrepreneurs. He maintains that the majority are innocent.  Releasing them -- and improving Russia’s overall business climate -- remains critical as the Russian economy continues stumbling along with low growth and falling revenues.

from David Rohde:

Prosperity without power

Photo

A woman walking near the headquarters (L) of the Federal Security Service, in central Moscow, May 14, 2013. REUTERS/Maxim Shemetov

In Moscow, they are “non-Soviet Russians.” In New Delhi, they are a “political Goliath” that may soon awake. In Beijing and São Paolo, they are lawyers and other professionals who complain about glacial government bureaucracies and endemic graft.

from The Great Debate:

For Russia, Syria is not in the Middle East

Photo

Russian President Vladimir Putin meets with (clockwise, starting in top left.) U.S. Secretary of State John Kerry, British Prime Minister David Cameron, next Israeli Prime Minister Benjamin Netanyahu and U.N. Secretary-General Ban Ki-moon. REUTERS/FILES

A string of leaders and senior emissaries, seeking to prevent further escalation of the Syria crisis, has headed to Moscow recently to meet with Russian President Vladimir Putin. First, U.S. Secretary of State John Kerry, then British Prime Minister David Cameron, next Israeli Prime Minister Benjamin Netanyahu and now, most recently, U.N. Secretary-General Ban Ki-moon These leaders see Russia as the key to resolving the Syria quandary.

from David Rohde:

The devil who can’t deliver

Photo

Picture of Syria's President Bashar al-Assad riddled with holes on the Aleppo police academy, after capture by Free Syrian Army fighters, March 4, 2013.  REUTERS/Mahmoud Hassano

MOSCOW – After marathon meetings with Secretary of State John Kerry here Tuesday, Russian Foreign Minister Sergey Lavrov hinted that Moscow may finally pressure Syrian President Bashir al-Assad to leave office.

from The Great Debate:

‘Post-Communist’ Russia and China remain remarkably the same

For a Russian to live in Beijing is to experience time travel. Things long gone in Russia, or stuffed into kitschy theme bars to draw tourists, still appear in China with no sense of irony. There are endless displays of hammer-and-sickles, Red stars, and exhortations to Obey the Communist Party. There’s the rhetorical deification of the worker and the peasant. “Public-security volunteers,” elderly men and women with red arm-bands and a lot of time on their hands, lounge on little folding stools, sizing up passers-by. There are five-year plans, and front-page headlines screaming “Socialist path reaffirmed”.  I thought I left all of this in the 1980s’ Leningrad. But no, it’s all still here in Beijing, instantly recognizable even behind Chinese characters that give it  a new spin. All of which makes it tempting to think how  Russia and China have changed over the last 20 years.

But in fact the opposite is true: their political systems  remain remarkably similar. Both ditched Communism a while back. The only difference is Russia ditched the trappings while China held onto them. The system that emerged in both places operates with fewer overt ideological constraints but with a singular mission: the self-perpetuation of the ruling elite.

from The Great Debate:

Obama, Romney missing the point on Libya

President Barack Obama and Governor Mitt Romney in Monday's foreign policy debate are again likely to examine the administration’s handling of an Islamic militia’s murderous attack on the U.S. consulate in Benghazi, Libya, and its significance for U.S. policy in the Middle East.

Unfortunately, they may again miss the crucial question raised by the murder of Ambassador Chris Stevens and three other Americans: Why is Libya at the mercy of hundreds of lawless militias and without a functioning state one year after U.S. and NATO support enabled rebels to overthrow dictator Muammar Ghadaffi?

from The Great Debate:

The great paradox of Hobsbawm’s choice

The words “communist” and “socialist” are now used so recklessly in the United States that their meaning has been devalued. But Eric Hobsbawm, the British historian who died Oct. 1, was the real deal.

Born in 1917, the year of the Bolshevik Revolution in Russia, Hobsbawm used Karl Marx as the inspiration for both his personal politics and his successful transformation of our understanding of history. He was an unabashed and unwavering supporter of communism in theory and practice, who only let his party membership lapse at the final moment, when the Berlin Wall fell.

from The Great Debate:

How should liberal democracies deal with China and Russia?

Twenty years after the end of the Cold War, we face a new challenge: how to conserve liberal freedoms once our citizens feel safe enough to take them for granted. Totalitarianism of the left and right, which defined liberalism throughout the 20th century, is no longer there to remind us how precious freedom is. It is up to us all to remember who we are, why liberty matters, why it is a discipline worth keeping to, even when our own sinews tell us to relax.

Today, liberal democracy’s decisive encounter is with post-communist oligarchies – Russia and China – that have no ideology other than enrichment and are recalcitrant to the global order. Predatory on their own societies, Russia and China depend for their stability, not on institutions, since there are none that are independent of the ruling elite, but on growth itself, on the capacity of the economic machine to distribute enough riches to enough people. They are regimes whose legitimacy is akin to that of a bicyclist on a bicycle. As long as they keep pedaling, they keep moving; if they stop, they fall off.

from The Great Debate:

Stop the pointless demonization of Putin

American media coverage of Vladimir Putin, who today began his third term as Russia's president and 13th year as its leader, has so demonized him that the result may be to endanger U.S. national security.

For nearly 10 years, mainstream press reporting, editorials and op-ed articles have increasingly portrayed Putin as a czar-like "autocrat," or alternatively a "KGB thug," who imposed a "rollback of democratic reforms" under way in Russia when he succeeded Boris Yeltsin as president in 2000. He installed instead a "venal regime" that has permitted "corruptionism," encouraged the assassination of a "growing number" of journalists and carried out the "killing of political opponents." Not infrequently, Putin is compared to Saddam Hussein and even Stalin.

  •