By Chris Dalby: From changing the nature of global politics to being a force for human rights, the announcement of the new BRICS development bank has been met with feverish anticipation by the global economic community. Its supporters have written that it will free the world from the grip of the U.S. dollar as reserve currency, while […]
The launch of the new BRICS development bank “reflects the disparity and democratic deficiency in the global governance and is trying to restart, to rethink that,” according to Nobel economist Joseph Stiglitz. But is the BRICS bank really more “democratic” than the World Bank, whose governance legitimacy its founders are challenging? As the Geo-Graphic above shows, […]
Brazil, Russia, India, China, and South Africa (the “BRICS”) made a splash last week with the official launch of their new development bank. The backers made no secret of their intention to challenge the way things are done in the established international financial and monetary architecture. The irony is that India and China are the […]
Leaders of the BRICS–Brazil, Russia, India, China, and South Africa–meet in Rio today to swap World Cup stories and launch a long-discussed “BRICS Bank.” The bank creates two funds–a development lending facility (New Development Bank or NDB) backed by $50 billion in capital ($10 billion from each of the BRICs), and a $100 billion rescue […]
The US dollar is little changed against the major currencies, while the emerging market currencies are more mixed, ahead of the FOMC statement later today. Global equities are higher. Core bond markets are lower, while Spain and Italian bonds continue to outperform. The most important development has been the dramatic rate hike by the central […]
There have been key figures throughout history that have been extremely influential in a country’s destiny. Nelson Mandela is one such figure. This article suggests that South Africa must learn to look forward or otherwise it risks falling in a trap where certain nations have fallen, a trap of difficult exit. A handful of visionary […]
(from my colleagues, Dr. Win Thin and Ilan Solot) Today, Brazil will hold an auction for the Libra oil field, which is a test of the new model for oil exploration. The results should be announced at 2pm, Brasilia time. Not surprisingly, the new system is being highly criticized. Most major oil companies (BP, Exxon, […]
(from my colleagues Dr. Win Thin and Ilan Solot) China data dump continues on Tuesday as it reports August IP and retail sales. On Monday, China reported August CPI, which came in as expected at 2.6% y/y. Over the next week, China will report new yuan loans and aggregate financing, with whisper numbers suggesting an […]
“One of the most remarkable features of the global economy over the past fifteen years has been the striking surge of economic growth over much of sub-Saharan Africa,” Charles Collyns, assistant secretary for international finance at the US Treasury, advised earlier this month. We’ve heard this story before, of course, only to discover that the investment results […]
Among the havoc wrought by the global financial crisis, unemployment ranks at the top. This discussion often focuses on the situation in advanced countries. Unemployment in the United States, for example, continues to hover around 9 percent.
Take that and double it. Then you can begin—yes, just begin—to get a sense of the magnitude of the problem in South Africa. Unemployment in South Africa now stands at some 24 percent. Youth unemployment is phenomenally higher still at some 50 percent.