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June 29, 2018
With Mexico's general elections ending as expected with an AMLO victory on 1 July, Economist Christopher Thomas takes a look at Enrique Peña Nieto's legacy, the biggest challenges that face the new incoming president, and of course, NAFTA, among other issues.
June 18, 2018
On June 1st a new populist coalition government entered office in Italy. The coalition of the 5 Star Movement (M5S) and the League represents a strong rejection of previous fiscal austerity programmes, and a more sceptical attitude to the EU and its institutions, with the League’s leader Matteo Salvini having previously stated that entering the Euro was a mistake for Italy. While the new government has omitted any mentions of a Eurozone exit (Italexit) from its economic programme, its policy plans have significantly raised uncertainty in Italian financial markets. Under certain circumstances, they could lead to a debt crisis, which could cause an Italexit. While non-Italian banks have reduced their exposure to Italian debt since the Eurozone Crisis of 2011-2014, some spill-over risks to the rest of the Eurozone remain.
June 18, 2018
Latin America and the Caribbean is one of the two regions of the world with the least intraregional trade along with Africa. This is due to the fact that historically countless processes have been developed with different objectives and results, which have not only failed to integrate the region economically but have also led to fragmentation. The risk that the escalation of the Trump administration's protectionist agenda implies for Latin America opens a new window via which the two great regional blocs, MERCOSUR and the Pacific Alliance, could grow closer.
June 8, 2018
The economic expansion that took place in the first decade of the 21st Century brought about considerable improvements in Latin American and Caribbean labor markets, including a reduction in unemployment and a significant increase in wages. The formality of employment, however, did not change significantly, reaching only 27% for women and 40% for men. Once the expansion cycle ended, the positive trend in employment stagnated, revealing the fragility of a system that had expanded mainly thanks to an increase in employment, without a considerable increase in productivity.
June 8, 2018
24 June marked a momentous occasion for women in Saudi Arabia; they are now legally allowed to drive for the first time. The move is a key part of Crown Prince Mohammed bin Salman’s Vision 2030 initiative, which aims to modernize and diversify the Gulf state’s petro-dependent economy, and make the country more attractive to would-be foreign investors. It also comes amid a wider reformist push, which saw many top officials purged late last year and the Crown Prince recently touring the West in an attempt to boost Saudi Arabia’s standing abroad.
June 7, 2018
In an upmarket hotel in Seoul on 9 March 2016, a Korean man gently tapped two black stones against a bowl, and became immortalized as a symbol of a new industrial revolution. The man in question was Lee Sedol, one of the strongest players in the history of the ancient Chinese board game Go. He had just resigned against AlphaGo, Google’s artificial intelligence system, in a match that made waves around the world—particularly in the Artificial Intelligence (AI) community.
June 5, 2018
India has not escaped the scrutiny of the Trump administration when it comes to the two countries’ trade balance. India’s trade surplus in goods and services with the U.S. fell from USD 31 billion in 2016 to USD 28 billion in 2017. Although this was welcome news for the U.S., which wants to improve its overall trade balance with India, the reduction was not seen as large enough.
May 28, 2018
“Responsible business has always been at the heart of what we mean by ‘Making Tomorrow a Better Place’”, pledged Carillion in its last Sustainability Report. In a glossy statement issued in May 2017, the company reported that it had “made an encouraging start to the year in terms of winning new business in our chosen markets, with new orders” and had “increased revenue visibility”.
Less than a year on, the multinational construction conglomerate and notably the UK’s second-largest construction firm crumbled under the weight of mammoth debt and pension liabilities, sliding into compulsory liquidation on 15 January. It had been one of the top public service contractors to the British government under the Private Finance Initiative (PFI), winning a slew of contracts to deliver essential services across government departments including transport, defense, education and health
May 22, 2018
By Guest Author:
Professor Arthur S. Guarino, MBA, MSSc, JD, Rutgers University, Dept. of Finance & Economics
With the increased use of automation, robotics, and artificial intelligence the demand for human workers may actually see a decline in the coming years. An old idea of a universal guaranteed income for every individual is once again gaining traction given its benefits and drawbacks.
May 7, 2018
As we know, Latin America is the most unequal region in the world. This lack of equality that characterizes the region is undoubtedly a major barrier to its economic development. Why is it so difficult for Latin America to reduce inequality in a sustained way?
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