Bloomberg (November 1)
“China should dethrone its GDP target.” While many expect the Government to lower its GDP target to around 6.5% in the coming five-year plan, it would be better to scrap the target altogether. “The government should do all it can to promote rapid sustainable growth— but now that China is a semicapitalist economy, what that number turns out to be is beyond official control.” Suggesting otherwise, ultimately undercuts Government’s authority with wasteful local investment and data fudging. “Scrapping the GDP target outright would be best.”
Tags: Authority, China, Data fudging, Economy, GDP, Government, Growth, Investment, Official control, Semicapitalist, Target, Waste
Wall Street Journal (October 29)
“The Chinese Communist Party’s decision Thursday to end its one-child policy is a landmark that ends one of the worst government intrusions on human freedom in world history.” It may also belatedly help address China’s “looming demographic crisis from a rapidly aging population.”
Tags: Aging population, CCP, China, Demographic crisis, Freedom, Government, Intrusion, One-child
Bloomberg (September 20)
There has been “a huge and very worrying change in Japanese education policy….Essentially, Japan’s government just ordered all of the country’s public universities to end education in the social sciences, the humanities and law” with a non-binding order from Hakubun Shimomura, Minister of Education, Culture, Sports, Science and Technology. This is “a terrible direction for Japan to be going.” To succeed as a rich country in a service economy, Japan will need more conceptual thinkers who can communicate, rather than more engineers. “Japan needs to keep educating students in the social sciences and humanities. It needs to avoid a doomed attempt to return to a developing-country model of growth.”
Tags: Communicate, Conceptual thinkers, Education policy, Engineers Developing country, Government, Humanities, Japan, Law, MEXT, Rich, Service economy, Shimomura, Social sciences, Universities
New York Times (September 13)
In 1998, the Good Friday Agreement brought peace to Northern Ireland. The arrangement now looks to be in peril. “Ending the power-sharing provincial government in Northern Ireland will serve no good purpose, either for Protestant unionists or Catholic nationalists. The only ones who gain are the dark forces on both sides who remain consumed by sectarian hatred and violence.”
Tags: Catholic nationalists, Dark forces, Good Friday Agreement, Government, Hatred, Northern Ireland, Peace, Power sharing, Protestant unionists, Violence
Financial Times (August 31)
“China’s government has decided to abandon attempts to boost the stock market through large-scale share purchases, and will instead intensify efforts to find and punish those suspected of “destabilising the market.” Many will appreciate the capitulation to market forces, but the prospect of a witch hunt stokes new fears. “In a worrying signal for global investors with a presence in China, some officials have argued strongly for a crackdown on ‘foreign forces,’ which they say have intentionally unsettled the market.”
Tags: China, Crackdown, Foreign forces, Government, Investors, Officials, Share purchases, Stock market, Witch hunt
Bloomberg (August 19)
“Beijing still believes money can buy the trust and soft power it craves, which explains the new $100 billion Asian Infrastructure Investment Bank it has sponsored. But as long as analysts don’t feel the Chinese government’s pronouncements are genuinely reliable, skepticism about the yuan will only grow.”
Tags: AIIB, Beijing, Government, Money, Reliable, Skepticism, Soft power, Trust, Yuan
New York Times (August 18)
“Brazil is in tatters. The economy is in a deepening recession.” On top of that Petrobras is facing a “massive corruption scandal” and the country’s credit rating was just downgraded by Moody’s. “In all this turbulence, it is easy to miss the good news: the fortitude of Brazil’s democratic institutions.” Specifically, “in pursuing bribery at Petrobras, federal prosecutors…have not been deterred by rank or power, dealing a blow to the entrenched culture of immunity among government and business elites.”
Tags: Brazil, Bribery, Business, Corruption, Credit rating, Democratic institutions, Downgraded, Economy, Elites, Government, Immunity, Moody's, Petrobras, Power, Prosecutors, Rank, Recession, Scandal
Wall Street Journal (August 7)
In China, the Government is estimated to have spent more than 10% of GDP ($1.3 trillion) “since the market panic started in late June,” producing only questionable results. “The failed bailout reinforces the expectation that Beijing will attempt to manage the financial markets in the future. This moral hazard means the volatility will continue, along with the costs of future bailouts. The first lesson of investing, buyer beware, has yet to be learned in China.”
Tags: Bailouts, Beijing, China, Financial markets, GDP, Government, Moral hazard, Panic, Volatility
Bloomberg (August 6)
“Efficient and incorruptible as the government has been, though, it would benefit from a bit more dissent.” As Singapore turns 50, the biggest danger is groupthink. “After 50 years of ceaseless striving, Singapore can afford to relax just a little. If it wants to keep amazing the world, and to extend its miracle into a new era, it may have to do just that.”
Tags: Ceaseless striving, Dissent, Efficient, Government, Groupthink, Incorruptible, Relax, Singapore
New York Times (August 2)
Millenials are “the most educated generation in history,” but this same generation is “on track to becoming less prosperous, at least financially, than its predecessors.” Millenials “are faced with a slow economy, high unemployment, stagnant wages and student loans that constrict their ability both to maintain a reasonable lifestyle and to save for the future.” On top of that, previous generations are burying them under government debt and insufficiently funded obligations.
Tags: Debt, Economy, Generation, Government, Lifestyle, Millenials, Prosperous, Student loans, Unemployment, Wages