New York Times (November 14)
Xi Jinping is poised to replace Hu Jintao as general secretary this week and president next March. “It could be sometime before the new relationships shake out and the world gets a clear sense of how Mr. Xi and his new colleagues intend to make their mark.” Will they continue on the same course or chose reform? Either way, they will confront challenge. China “faces daunting domestic and international challenges…. growth has slowed, state-run enterprises remain dominant in most industries and the gap between rich and poor is among the widest anywhere. Social and political unrest is increasing.”
Tags: Challenges, China, Hu Jintao, Reform, Unrest, Xi Jinping
New York Times (October 12)
“Bank bailouts were supposed to be followed by financial reform to limit the banks’ destructive power. Instead, bailed-out banks are bigger than ever and have resisted reforms to limit their size and complexity.” Fortunately, there are some promising signs of change. The most recent arrived in a report from a committee led by Erkki Liikanen for the European Commission. Should the recommendations be approved “the lack of progress, however, may yet give way to change.”
Tags: Bailouts, Banks, Complexity, Erkki Liikanen, European Commission, Reform, Size
Wall Street Journal (October 2)
Reform of money market funds seemed to grind to a halt last month when a draft rule was blocked by the Securities Exchange Commission. Now Commissioner Gallagher is indicating that “he favors giving investors accurate prices in real time.” That would provide Chairman Mary Schapiro with the votes she need. Rather than fight this reform, “the industry would be wise to work with Mr. Gallagher and Ms. Schapiro on a floating net-asset-value before it suffers a worse fate.”
Reform of money market funds seemed to grind to a halt last month when a draft rule was blocked by the Securities Exchange Commission. Now Commissioner Gallagher is indicating that “he favors giving investors accurate prices in real time.” That would provide Chairman Mary Schapiro with the votes she need. Rather than fight this reform, “the industry would be wise to work with Mr. Gallagher and Ms. Schapiro on a floating net-asset-value before it suffers a worse fate.”
Wall Street Journal (February 22, 2012)
“China could face an economic crisis unless it implements deep reforms, including scaling back its vast state-owned enterprises and making them operate more like commercial firms.” A soon-to-be released report, titled “China 2030,” also warns that “China’s growth is in danger of decelerating rapidly and without much warning.” The report indicates that China, like Brazil and Mexico, will face a “middle-income trap,” which tends to snare developing countries that reach a threshold income level.
“China could face an economic crisis unless it implements deep reforms, including scaling back its vast state-owned enterprises and making them operate more like commercial firms.” A soon-to-be released report, titled “China 2030,” also warns that “China’s growth is in danger of decelerating rapidly and without much warning.” The report indicates that China, like Brazil and Mexico, will face a “middle-income trap,” which tends to snare developing countries that reach a threshold income level.
New York Times (February 9, 2012)
The “Greek Tragedy” continues to unfold. “By forcing all Greeks to suffer with no real prospects of relief, Europe is uniting the country, now beset by strikes, against further reforms.” Unfortunately, Greece has little choice. “It cannot survive without Europe’s money, even if it chokes on Europe’s conditions.”
Economist (February 3)
Prime Minister Naoto Kan “seemed likely to follow his predecessors into the dustbin of history.” Instead, “he has put together a package of proposed reforms more radical than anything attempted during two decades of economic malaise.” If he succeeds with his bold, “almost recklessly ambitious” agenda, he may go down in the history books for bringing real change to Japan.
Financial Times (May 24)
If Europe’s leaders fail, the euro will fail. But they mustn’t and the euro shouldn’t. During boom times, leaders could break the rules. Early on, France and Germany broke the public debt limits (less than 60% of GDP) of the Stability and Growth Pact. Today’s leaders need to establish tough rules and hold their countries accountable. Europe also needs productivity gains to grow faster. This means difficult structural reforms can no longer be put off.
If Europe’s leaders fail, the euro will fail. But they mustn’t and the euro shouldn’t. During boom times, leaders could break the rules. Early on, France and Germany broke the public debt limits (less than 60% of GDP) of the Stability and Growth Pact. Today’s leaders need to establish tough rules and hold their countries accountable. Europe also needs productivity gains to grow faster. This means difficult structural reforms can no longer be put off.
Tags: euro, Europe, Germany, Reform, Stability & Growth Pact
