- property rights
- honest government
- political stability
- a dependable legal system
- competitive and open markets.
Often, what makes the news is the absence of these institutions. For example, you will read about
- violations of property rights (people take what is others', for example, intellectual property through copyright violation), or governments take private citizens' property (for example, confiscation of land or assets)
- dishonest government (corruption, fraud, favoritism, nepotism, etc.)
- frequent changes of government, violent protests, coup d'états (government overthrow), civil war
- difficulties in getting contracts enforced, difficulties in applying reasonable regulations, unpredictable or unreasonable changes in the law, etc.
- abuses of market power (by big firms), creation of monopolies or uncompetitive actions (by firms or by governments), trade barriers (import tariffs, regulations), etc.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=45941
ReplyDeleteThis article talks about how political instability in the country of Nepal is harming the country's economic growth. Mostly, the lack of political agreement is preventing development. A brief report was recently released explaining that lack of agreement will expressively delay the passing of several legislations for 2012 and 2013, including a full-year government budget. Many believe that if political agreement could be reached, growth would increase and huge amounts of progress will be made. GDP for this year was at a 4.6% and is expected to lessen to 3.8% for the upcoming year, especially if these agreements are not resolved.
http://www.independent.co.uk/news/world/middle-east/exclusive-uk-military-in-talks-to-help-syria-rebels-8399658.html
ReplyDeleteThe article I chose to write on focus on the most recent happenings in the civil war that is currently taking place in Syria. This war has now been taking place for twenty-two months and has left 1.5 million internally displaced by the fighting and cost over forty-thousand Syrians their lives. The conflict started in January of 2011, when Syria’s oppressed citizens tried to forcefully remove their president (although he is really more of a dictator than he is a president) Bashar-al-Assad from office. The uprising was not met well, and a civil war broke out with Assad refusing to give up his power and butchering thousands of his own citizens, including women and children.
This article focus on what the major powers of the world are planning on doing twenty-two months after this revolution started. The West now has now choice but to get involved now that Syria has recently started bombing the parts of Israel that are nearest to the Syrian border. Several Western countries have tried to take some initiative in dealing with this crisis, but all moves to do so in the U.N. have been blocked by either Russia or China, both of whom are arming the Assad regime with stockpiles and weapons. In light of recent events though, many countries have decided that enough is enough. Both England and France have suggested setting up training facilities in Turkey (another country who has agreed to help deal with the situation) to train certain, non-terrorist rebel forces. America, while she has said that she will not put any men on the ground has suggested she is open to backing the rebels with air and naval support in the hope of forcing Assad to step down. The mindset is now in place that not only is intervention in Syria unavoidable, but sometime in the future war with Syria might be iminant.
http://security.blogs.cnn.com/2012/11/26/clinton-not-warned-of-egyptian-presidents-power-grab/
ReplyDeleteThis article spoke about President Morsi’s recent power grab (President of the recently democratic Egypt) and touched upon some of the economic fall out. President Morsi effectively took full control of Egypt making himself (and as a result the Muslim Brotherhood) fully in charge of Egypt. This resulted in days of protests by hundreds of thousands of Egyptians. This as can be imagined is hurting the economy of Egypt internally, but more than that the recent power grab may prevent the Egyptian Government from acquiring a billion dollar loan from the US that they insist the need to recovered from previous uprisings (this is 3.8 billion dollars less than the had originally requested). This turmoil in Egypt (and surrounding countries Syria mentioned above) is preventing capitol inflow, the civil conflicts of the nation are preventing growth of GDP, and there new and aggressive political stance is likely going to prevent them from getting large loans on an international level.
The article that I chose was about Russia trying to Formulate Intellectual Property. They are starting to create more intellectual property because they are so far behind Germany the US and Japan, “Germany tallies up twice as many patents each year as Russia, the United States almost nine times and Japan up to 15 times more”. This project is only in its early stages and is said to take off within the first quarter of 2013. Russia plans to kick this off by having the government stimulate a mass influx of patents into the market. The only problem with this is the government ending up owning all of the intellectual property in the country.
ReplyDeletehttp://www.themoscowtimes.com/business/article/state-formulating-intellectual-property-rights-strategy/472638.html
http://www.haaretz.com/business/will-any-israeli-party-set-out-to-combat-corruption.premium-1.484013
ReplyDeleteThis article primarily discusses corruption in the country of Israel. According to Transparency International's annual survey, on a scale of 1 to 5, with 5 denoting a perception of the institution as "extremely corrupt," Israelis rated political parties at 4.5. This corruption is not only political, however; it is also occurring in the media as well as the business and private sectors. The issue that the article touches on is a concerning one: is institutionalized corruption to blame? The argument is that when organizations are very ineffective at delivering goods, citizens are tempted to seek out easier methods--including, but not limited to, bribery, unionizing, and reform prevention. This issue that is currently dominating Israel must be tackled head-on.
Following the election of Ghanaian President John Dramani Mahama, a transition team is being formed. The team will not carry out the usual steps of shifting the power from one form of government to another, as the president is an incumbent. Rather, it will have a “power vacuum” in which “the team will take custody of state property and paraphernalia awaiting the inauguration of the new president, who will then assume responsibility for state property and paraphernalia,” according to Tony Aidoo, director of monitoring and evaluation of President Mahama. Mahama, who represents the National Democratic Congress (NDC), has been called upon by the losing candidate, Hassan Ayariga (who represented the People’s National Convention, or PNC) to form an “inclusive government.” This is precisely what the new administration plans to do, as many people who work for the administration are not members of the NDC. Expectations are high for Mahama, but Aidoo has full confidence in him, stating that “President Mahama is smart enough to know that it is about time the government’s policies, programs and projects are aimed at the betterment of the lives of the underprivileged…” Ghanaians seem to see Mahama as the answer to their economic problems, and hope he will be able to create jobs, improve healthcare and education, and better Ghana’s infrastructure as it is now an oil-producing country.
ReplyDeletehttp://www.voanews.com/content/ghana-to-form-transition-team-following-election/1562370.html
http://www.guardian.co.uk/world/2012/dec/10/chinese-economy-america-tectonic-shift
ReplyDeleteThe article that I read was about how China is going to be the future economic superpower of the world. The article said that by 2030 there will be a tectonic shift that brings this about. The best possible outcome of this would be if China and the US were able to collaborate on ideas. The US is a source of stability so there would be world anarchy if the US was completely shut out as a world power. The middle class will become the center of attention and will prosper. In return the US and Europe will fall behind because only the developing world will prosper. There might also be an outbreak in violence, because there will be greater personal empowerment, which means better access to lethal weapons. There will also be a shortage of food and water. The article seemed a little extreme but very powerful.
http://www.theborneopost.com/2012/12/11/strong-unity-possible-with-political-stability-musa/
ReplyDeleteThis week I found an article speaking of political stability particularly in Malaysia. They have been able to put all their differences aside and being a celebration including all the people from different nationalities and religions. It’s all like a big get together for them where they all respect each other and what their government has to say; Malaysia is now one big family. They say that this would not have been possible if they had not reached a political stability and also that it is sustainable. They would have had a terrible social and economic future. It is essential that people have a stable government but not all countries are as lucky as Malaysia.
http://www.colliergov.net/modules/ShowDocument.aspx?documentid=2055
ReplyDeleteEminent Domain is used when owners do not want to give up their property for public use. Vanderbilt Beach Road is under consideration for extension from Collier Boulevard to Wilson Boulevard. Oil Well Road was recently widened and many homes lost their front yards. The government is allowed to acquire the property that is needed and does pay fairly for that property.
There are two sides to every story. If my home was going to be destroyed because of the road construction, I would be very upset. There have been cases of the government taking property for state parks and then five years later selling that property to developers for golf courses and condos. This happened in New Mexico.
When eminent domain is used there should be strict oversight by the general population.
http://online.wsj.com/article/SB10001424127887324001104578168283496596560.html
ReplyDeleteThe well-being of Venezuela has just been put at stake with the reoccurring cancer of Hugo Chavez. The socialist leader has now been in office for fourteen years and his term could very well be coming to an end. The fate of Chavez is tested in how well he fights this cancer. It is very likely for the end of his life to come soon. Politically, this has a huge effect on Venezuela. He is the most prominent leader Latin America has had in generations. His death could make the leftist party take a hit in Venezuela. Other countries around it would be affected as well. Cuba desperately depends on Venezuela’s oil. Venezuela also could easily turn into a war zone should Chavez die. A civil war would possibly break out. The Venezuelan economy has been hurting as of late. It had only a 5% growth last year. It is right now in uncertain times.
This comment has been removed by the author.
ReplyDeletehttp://www.expatica.com/es/news/spanish-news/italian-markets-plunge-as-eu-urges-political-stability_252814.html
ReplyDeleteRecent turbulence in the Italian government has brought about turmoil in the Italian financial markets. The EU has stressed the importance of political stability for Italy, but like all economic issues, there are two sides to the story.
After the Italian Prime Minister Mario Monti made it clear he was stepping down, a representative of the EU came out and reminded the Italian people that it is important to not forget issues of economic reform during this election. The issues are still there, and a means for recovery must be constant. However, analysts say that the Bersani, the favorite for the next election, has promised to stick to Monti's economic plan. They go on to say that although there might be some short term havoc, in the long run, things will go on as scheduled.
Analysts also claim, that even if the feared (and criminal) Berlusconi is elected, for a fourth (although not consecutive) term, the economy, ideally, will not be completely down the drain. Even his leftest plan leads towards the road of economic recovery. In short, although the EU is right that political stability is necessary for a stable economy, Italy does not necessarily lack a stable economy.