The Economist (November 16, 2013)
“Xi Jinping has made himself the most powerful leader since Deng Xiaoping. That is probably a good thing.” His predecessor Hu Jintao proved unable to surmount the numerous obstacles to real reform. President Xi will need this increased muscle to overcome entrenched interests. “Too many people do too well out of today’s system to make change easy,” but change it should.
Tags: Deng Xiaoping, Entrenched interests, Hu Jintao, Leader, Obstacles, Power, Reform, Xi Jinping
Euromoney (October Issue)
“As investors lament the unsustainable credit boom and reform inertia that has blighted China, India and Indonesia, in particular, in recent years—raising the spectre this summer of a repeat of the 1997 Asia crisis—Singapore has consolidated its status as the region’s competitive dynamo, thanks to a flurry of supply-side reforms, backed by judicious fiscal and monetary policies.” Singapore’s economy is now “the most competitive in the world, according to the World Bank, with the highest income per capita in southeast Asia, outpacing the US in recent years.”“As investors lament the unsustainable credit boom and reform inertia that has blighted China, India and Indonesia, in particular, in recent years—raising the spectre this summer of a repeat of the 1997 Asia crisis—Singapore has consolidated its status as the region’s competitive dynamo, thanks to a flurry of supply-side reforms, backed by judicious fiscal and monetary policies.” Singapore’s economy is now “the most competitive in the world, according to the World Bank, with the highest income per capita in southeast Asia, outpacing the US in recent years.”
Tags: Asia crisis, China, Credit boom, Fiscal policy, India, Indonesia, Investors, Monetary policy, Reform, Singapore, Supply-side reforms
Wall Street Journal (October 2)
The rise in Japan’s consumption tax is an unwelcome return to the old “tax and spend” playbook. Of the estimated $88 billion in revenue, over $50 billion is marked for spending as stimulus. “More rapid and durable economic growth is the only escape from Japan’s self-constructed fiscal trap. Mr. Abe still has a chance to rescue his economic program with a new reform plan, the long-awaited ‘third arrow.’ But with his tax increase he is creating another headwind to overcome.”
Tags: Abe, Consumption tax, Economic growth, Fiscal trap, Headwind, Japan, Reform, Revenue, Stimulus, Tax and spend, Tax increase, Third arrow
USA Today (September 12)
“Five years ago this weekend, the world economy was in uncharted waters and sinking rapidly. The bankruptcy of Lehman Bros. on Sept. 15, 2008, touched off a horrifying financial crisis…. Far too much hasn’t been done, or hasn’t changed, since those scary days when it seemed the world financial system was unraveling.” Though the consensus in favor of urgent reform has long since faded, reform is nevertheless urgently needed. Today, “the shoring up of the financial system is no better than a work in progress, and another severe crisis in the not-too-distant future is hardly out of the question.”
Wall Street Journal (August 29)
“In 1950 France had five people of working age per retiree. Today it has 1.4, and the ratio is expected to fall to 1.2 by 2050.” France’s newly unveiled pension reform will not “defuse” the pension bomb. “Paying for a growing number of retirees with a pay-as-you-go system that invests little for the future is a losing game. It will ultimately require much smaller pensions or much higher taxes, a fact that French businesses understand well even if the political class won’t admit it.”
Washington Post (June 26)
Sheik Hamad Bin Khalifa al-Thani oversaw Qatar’s rapid economic growth. He came to power 18 years ago after staging a coup against his very own father. “Now the 61-year-old emir has completed another surprising initiative by handing power to his 33-year-old son.” This change “opens the way for adjustments in Qatar’s foreign policies and in the rigid autocracy that still reigns over the skyscrapers and luxury hotels of Doha.” Only time will tell if reform ensues.
Tags: Autocracy, Coup, Doha, Economic growth, Foreign policy, Luxury hotels, Qatar, Reform, Skyscrapers
The Economist (June 15)
“Now Mr Abe’s eagerly awaited “third arrow” of structural reforms has fallen well short of the rings, let alone the bull’s eye. Indeed, it is so wide of the mark that one is left wondering if Abenomics has failed before it even properly began.” The disappointing third arrow consisted mainly of “old-fashioned industrial policy which has been tried, and has failed, before… Meaningful deregulation, labour-market reform and steps to make agriculture competitive in order to prepare for the TPP were all shelved. Truly bold measures, such as boosting immigration or changing the electoral system to give proper weight to young and urban voters, are off the agenda entirely.”
Tags: Abe, Abenomics, Agriculture, Deregulation, Electoral system, Immigration, Industrial policy, Japan, Reform, Structural reforms, Third arrow, TPP
Chicago Tribune (January 29)
In the U.S., immigration reform has been a lethal subject for politicians. That is changing. Now that a bipartisan group of Senators have lent support, immigration reform legislation, which would affect 11 million illegal immigrants, may pass. “Americans support it. Latino voters expect it. Democrats want it. Republicans need it.”
Tags: Democrats, Illegal immigrants, Immigration, Politicians, Reform, Republicans, U.S.
Financial Times (January 1)
From the onset, Xi Jinping has set a new tone as general secretary of the Communist party. China needs far sweeping reforms as it works to boost domestic demand, strengthen the social safety net, improve governance, and empower consumers and free enterprise. He “should be bold in pushing change” and avoid hiding “reform behind tougher foreign policy.” Dialing down the intensity of territorial disputes would “be a boon for regional peace and security. It would also allow Mr Xi to concentrate on his very real problems at home.”
Euromoney (November 26)
The UK looked outside in appointing the Bank of England’s next governor. “The surprising appointment of Mark Carney, Bank of Canada governor, could have profound consequences for the UK’s monetary framework, financial services industry and global bank reform drive.” Carney had been named Euromoney’s Central Bank Governor of the Year for 2012, an award he accepted in Tokyo during the IMF/World Bank meetings.
Tags: Bank of Canada, Bank of England, Governor, Mark Carney, Reform
