Economy

Mohammad Anas Wahaj | 08 jan 2014

After coining the term 'BRIC' (Brazil, Russia, India, China) in 2001 for the emerging economies, economist Jim O'Neill is now focusing on another emerging economic grouping 'MINT' (Mexico, Indonesia, Nigeria, Turkey). For the next 20 years, countries in this group will have large and attractive demographics with substantial working population. Thus in a better position to evolve into thriving and attractive economies in future. Article provides analysis of 'MINT' countries based on various parameters and also compares it with 'BRIC' economies. GDP in $US trillions (2012, Estimated 2050) - Mexico (1.18, 6.95); Indonesia (0.88, 6.04); Nigeria (0.26, 4.91); Turkey (0.79, 4.45). Average income in $US thousands (2000, 2012, Projected 2050) - M (7.0, 10.6, 48.0); I (0.8, 3.6, 21.0); N (0.2, 1.4, 12.6); T (4.1, 10.6, 48.5). Some of these economies also face challenges and issues like corruption, infrastructure, energy policies, politics & leadership etc. The future prospects of these economies will depend on how they overcome these challenges and fix the systemic issues. Read on...

BBC News: The Mint countries: Next economic giants?
Author: Jim O'Neill

Mohammad Anas Wahaj | 08 dec 2013

There is growing consensus and concern across all the nations rich or poor, developed or developing, that inequality among populations is growing and it is a major threat to the global economy. The latest World Economic Forum report mentions widening income disparities as one of the top trends facing the world in 2014. According to Helene D. Gayle, CEO of CARE USA, the reasons for growing inequality in the world include - lack of access to quality primary and secondary education in some countries; public health problems, like chronic diseases, that exacerbate income gaps; social inequalities like gender discrimination. Recent Pew Research Center survey of general populations around the globe found that in 31 out of 39 nations, 50% or more of those surveyed said that inequality is a very big problem in their country. Read on...

Pew Research Center: The global consensus: Inequality is a major problem
Author: Richard Wike

Mohammad Anas Wahaj | 08 dec 2013

The latest report released by World Economic Forum, 'Outlook on the Global Agenda 2014', was based on the survey of 1592 leaders from 112 countries that included people from business (43%), academia (21%), civil society (12%), government (9%), other organizations (8%) and international organizations (7%). The study identifies the following top 10 trends facing the world in 2014 - (1) Rising societal tensions in the Middle East and North Africa; (2) Widening income disparities; (3) Persistent structural unemployment; (4) Intensifying cyber threats; (5) Inaction on climate change; (6) Diminishing confidence in economic policies; (7) A lack of values in leadership; (8) The expanding middle class in Asia; (9) The growing importance of megacities; (10) The rapid spread of information online. Read on...

World Economic Forum: Outlook on the Global Aganda for 2014 - Top 10 Trends of 2014
Author: NA

Mohammad Anas Wahaj | 02 dec 2013

New perspectives and dynamics are being created in the socio-economic environment of the countries due to the rising phenomenon of non-charitable social enterprises. According to a legal expert from UK, charities should consider partnerships and collaborations with social businesses and should view them working on similar agendas. This would create a potent competitive front to counterbalance the powerful business oligopolies that seem to dominate the markets. He mentions that a proper legal definition of a social business with appropriate 'asset locks' in the articles of association are needed for building this partnership with charities. Read on...

Third Sector: Charities 'should see non-charitable social enterprises as comrades-in-arms'
Author: Kate Youde

Mohammad Anas Wahaj | 28 nov 2013

Most countries in the developing world face similar challenges regarding socio-economic development strategies and plans. More so is the case with farming and rural development considering their large population being engaged in farm related activities and unskilled labor intensive livelihoods. The case of Rwanda is no different with 88.8% of homesteads employed in agriculture and 90% of labor force participating in agricultural activities. Efforts are underway to create more incentives for private sector to invest in agro-processing and farm related industries to ensure sustainability of the agriculture sector. Better infrastructure is required - adequate electricity, feeder roads network, food storage capabilities in rural areas etc - to prepare produce for export and also for efficient local delivery and consumption. Read on...

AllAfrica: Mass Poverty and Social Inequality in India - The Devastating Impacts of the Neoliberal Economic Development Model
Author: NA

Mohammad Anas Wahaj | 31 oct 2013

According to Professor Douglas McWilliams of Gresham College in UK, India will become the world's largest economy by 2048 by surpassing China which will displace US from the top slot in 2023. He points out that the pace of change in the Eastern economies is so fast that the population of these economies have not become used to prosperity and their employees still work more then their Western counterparts (Singapore - 2307 hours/year; Hong Kong - 2287 hrs/yr, UK - 1625 hrs/yr). Moreover Singapore's GDP is 30% higher then UK and Hong Kong's 50% higher. These figures indicates resurgence of the East and the West has to be prepared to compete with these economies and adapt to the new realities or there is a probability of stagnation and later on economic collapse. Read on...

The Telegraph: India 'will become world's biggest economy in less than 40 years'
Author: Emma Rowley

Mohammad Anas Wahaj | 31 jul 2013

While speaking at the UNGA (UN General Assembly) Thematic Debate on Entrepreneurship for Development, UN Secretary-General Ban Ki-moon emphasized the importance of entrepreneurship and urged governments to build entrepreneurial ecosystem and encourage, educate and empower young entrepreneurs. He mentions that there will be 73 million unemployed in the global economy this year and an estimated 425 million youths will join the workforce between 2016 and 2030, thus creating a challenging situation of providing jobs to about half a billion people. According to him entrepreneurship can help to overcome this crisis as it will transform these young women and men to become innovators, employers and job creators. Other officials also suggested participation of private sector and civil society in addition to governments to collaboratively overcome this global human resource challenge. Read on...

Global Times: Governments urged to support young entrepreneurs to help tackle global job crisis
Author: NA

Mohammad Anas Wahaj | 15 jul 2013

National Institute of Economic and Social Research (NIESR, UK) in their latest report on the health of global economy mentions that the world is still struggling to come out of recession it got into five years back and there is high unemployment in many countries. The situation is unsatisfactory for Eurozone with 1% growth predicted for next year while US is a little better with 2% growth particularly boosted by improving demand from private sector. Japan is going through fiscal policy initiatives to stimulate growth, about 2% this year. Report suggests emerging and developing economies of Asia to perform better. Read on...

iExpats: Global Economy Still Bust Five Years After Credit Crunch
Author: Lisa Smith

Mohammad Anas Wahaj | 12 jul 2013

China, the world's second largest economy, is showing signs of stagnation with decreasing growth, double-digit some years back, to less then 8% estimated for this year. Moreover the manufacturing sector is undergoing problems with declining investments and Chinese companies are looking elsewhere, like Hong Kong, for funds leading to rise of interest rates there and increased borrowing costs for Chinese companies. These transformations in the Chinese economy affects US, Europe and other developing nations. Fed's expected tapering of quantitative easing this year in US will strengthen the dollar and would make American market again attractive for investments and this will lead to speeding up of fund outflows from China. Materials and industrials companies of Europe will be the most affected with the Chinese slowdown as European Union is the largest exporter of machinery and transportation equipment to China. Experts advise caution for equipment manufacturers for making investments into China at this time, particularly in the mining sector. They also suggest long-term investors to stick to fundamentals and buy stocks of reliable companies. Read on...

Motley Fool: What China's Stagnating Economy Means for the World
Author: Dan Carroll

Mohammad Anas Wahaj | 08 jul 2013

South Africa's labor market is undergoing a crisis with only 40% of its adult population gainfully employed. It has to make important policy changes to overcome this challenge and increase the workforce to global standard of 60%. Authors suggest that Brazil, India and Malaysia can provide valuable insights and lessons to South Africa for tackling these issues. Brazil has easier employee dismissal policy providing employers less risks while hiring. It provides efficiency to labor market and encourages employment. Although India has shown rapid growth in recent past but it has excessive and complex regulation in its formal sector labor market resulting in higher employment (90%) in informal sector and it has overregulated contract labor policy that discourages this type of employment. Malaysia with its low-cost, export oriented industrialization policy, puts limits on wages resulting in large employment in formal sector. Its unemployment rate is only 4%. Considering these examples of developing countries South Africa can develop a labor policy that creates an enabling environment for labor intensive small and medium-sized businesses. Read on...

BD Live: Experience shows if firing is easier, hiring is more likely
Author: Antony Altbeker, Ann Bernstein

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