Once more, please look at news that have to do with a country's institutions. Focus especially on news having to do with
- 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://online.wsj.com/article/SB10000872396390444318104577587641175010510.html
ReplyDeleteMy article focuses on a different kind of philanthropist, Mohammed Ibrahim, who is now known as “The philanthropist of honest government.” He believes that the main reason Africa’s countries are weak and unstable is because of a lack of honest government. Year after year, political leaders in these countries especially are taking payoffs. They become multi-millionaires while countries and people suffer in extreme poverty. What Ibrahim does is “reward” political leaders in Africa with prizes of sums of money if they choose not to take pay offs and instead run an honest government. To be specific, he offers 5 million over the first 10 years, and then pays $200,000 annually for life. This idea has expanded to Singapore, Moscow, Honk Kong, and the U.S.
He says “Better governance, though, "will open up the continent for investment…Investment will create jobs, and when people have decent jobs, they look after themselves, they look after the education of their kids, they look after their health."
Ibrahim understands that this idea will not suddenly change the way of government in Africa, or fix all corruption, but he hopes the prizes will lead one step closer to better, and more honest governments
http://www.dailystar.com.lb/News/Middle-East/2012/Dec-17/198765-sharaa-no-side-can-win-syria-war.ashx#axzz2FKorrLFz
ReplyDeleteThis article details the release of the statement made by Vice President of Syria, Farouq al-Sharaa. Al-Sharaa definitively stated, "Neither my government nor the rebels fighting to overthrow it are capable of a decisive victory." The 21-month long civil war has claimed over 40,000 lives thus far. He went on to say that a "historic settlement" is needed to end this conflict. As expected, many surrounding countries have become involved. For example, on Sunday, Iran put forward a six-point plan to end the Syria civil war, "including negotiations, presidential elections and a halt to arms shipments." Turkey has also petitioned NATO to increase their boarder defenses. The problem with this is that many believe the deployment of these US-made missiles into Turkey may be viewed as a "predicative" action. This civil war is certainly affecting the political, social, and economic aspects of both Syria and surrounding countries. More than 500,000 Syrians have fled the nation as refugees, according to the UN. Corruption among Syria's government, specifically the Assad regime, is a prime example of the importance of honest government and political stability.
Syrian rebels took control of a Palestinian refugee camp in Yarmouk. The Syrian army had been using fighter jets and artillery to neutralize the rebels, who are now in the center of the city. Over half a million Palestinian refugees live in Syria, and Palestinians have joined forces with both the government and rebel forces. Syrian vice president Farouq al-Sharaa said recently that “neither side can win” and that a “historic settlement” is needed to end the violence. He admitted, however, that “anyone who met [President Assad] would hear that ‘this is a long stuggle… and [Assad] does not hide his desire to settle militarily to reach a final solution.’”
ReplyDeletehttp://www.reuters.com/article/2012/12/17/us-syria-crisis-idUSBRE8AJ1FK20121217
http://m.theglobeandmail.com/report-on-business/economy/economy-lab/emerging-from-the-crisis-how-latvia-did-it/article4350263/?service=mobile
ReplyDeleteWe normally look at how an institution in a country causes its economy to fail. This article, however, did the exact opposite and discussed what cause the economic recovery of Latvia. Latvia, a country with about two million citizens, had a severe recession in 2008, unemployment shot up 20% and in 2009 GDP fell 18%. However things starting turning up in 2011 with a GDP growth of 5.5% and a steadily dropping unemployment rate. Analysts are trying to figure out why amidst an economically failing Europe the little country is recovering so quickly. It is the result of the government doing something right. Prior to the recession the national debt was only 10% of GDP and 50% a GDP was in exports allowing them to have a firm investment in larger countries. The government before things started to go down hill had been making sure to keep charge of the debt and had been working had to boost the countries economic competitiveness, this foresight is the main factor in the recovery. Not needing to worry about national debt or who is going to purchase your products allows a country to focus its efforts fully on recovery. This economic plan may not be a model for how to get out of our current recessionary gap, but it is one to show us how to avoid this kind of scenario again.
http://uk.reuters.com/article/2012/12/17/us-japan-economy-world-idUKBRE8BG0T920121217
ReplyDeleteThe article I read was about how Japan’s economy does not look like it is going to be improving, contrary to popular belief, even though the new government was promising improvement. The yen’s value is decreasing and will continue to decrease. The government is running a budget deficit of about 10 percent of gross domestic product and its gross debt has risen from less than 68 percent of GDP in 1990 to more than 235 percent now. Japan’s inflation target was one percent, but they are extremely far from their goal. Japan’s economy is the third largest economy in the world, so depending on how their economy is doing; it can affect many other economies.
http://www.bbc.co.uk/news/business-20764675
ReplyDeleteAlthough political stability generates steady and "good" economy, Japan is an exception to that rule. This article discusses how a change in leaders (and economic strategy) will effect not only Japan, but also the world.
Japan's inflation rate is very low, about 1%. In the next year, it is projected to potentially veer into negative region. The goal of the Japanese government is to reach 2%. The current political leader Shinzo Abe has made it clear that he will go to all lengths to achieve this goal, even if it means limiting the independence of the central bank. Shirakawa the favored competitor of Abe has a more reasonable plan--buying foreign government bonds to force the yen to depreciate.
In 2013, most countries are relying on exports to stimulate their economies. The issue Japan faces is that their high exchange rates discourage trade--a crucial component for the Japanese economy which is still attempting to bounce back from debt.
http://www.fortmorgantimes.com/fort-morgan-local-news/ci_22208468/property-rights-group-talk-fiscal-impact-water-use
ReplyDeleteWater is essential to human existence. The way we get water is also a very important topic. We get water from rivers. One of the matters that has been recently been discussed is the property rights of water sources. There is this group that is going to discuss the effect that the fiscal cliff is going to have on the property rights off water sources the meeting is going to be this week on Wednesday 19. What they will focus on mainly is: “"Economic Activity of Irrigated Agriculture in the South Platte in 2013: What the future May Hold for all of us."”
http://abcnews.go.com/International/wireStory/low-turnout-egypts-vote-raises-questions-18001316?page=2
ReplyDeleteThe article I chose discusses the recent polls turnout in Egypt. The voting that is currently taking place Egypt is centered on a proposal for a new constitution. The constitution is being proposed by President Mohammed Morsi and would give a substantial amount of power to religious institutions and figures, as well as putting an astounding amount of power in the hands of the president himself. What makes this proposal particularly unnerving is the fact that Morsi is publically known to have strong ties to a radical group known as the Muslim Brotherhood. The Brotherhood would receive a large amount of power is this document were to be voted through. This fact has caused many countries in the Western world to question the legitimacy of Egypt’s so called desire for democracy (they fear that these powers would transform Morsi into more of a dictator than a president as well as allow him to fund and support terrorist organizations). But it is not only the West who does not want this constitution to be passed. Only thirty percent of Egyptians voted this week on the Constitution. This is in direct response to a strong “Vote No” movement that has been stirred up within the country. This movement has strongly emphasized the power the constitution would give to Mosi and his radical allies and urges Egyptians not to allow the Brotherhood to gain such a strong say in how their country will be run. Many leaders in Egypt are remembering the recent revolution that saw the overthrow of one tyrant and do not want to see yet another despot rise to power in Egypt.
http://www.fortmorgantimes.com/fort-morgan-local-news/ci_22208468/property-rights-group-talk-fiscal-impact-water-use
ReplyDeleteThis focuses on the right of property: the property rights group to talk fiscal impact of water use right. On Wednesday, Dec. 19 the Property Rights Foundation of the West will meet to discuss the different economic impacts of waters use rights. There has been already two meeting dealing with the demands on the river, South Platte River. Dr. James P. from the University of Colorado will focus: “Economic Activity of Irrigated Agriculture” in the South Platte River. Dr. James has been dealing with this kind of right for quiet sometime now, that he specializes on the right of water use.