How much of a worry is the lack of structural reform in emerging markets? Jonathan Wheatley, deputy emerging markets editor, talks to the FT’s Daniel Garrahan about whether more aggressive changes should have been made when times were good.
By Roman Khodykin of Berwin Leighton Paisner
Last week, following the announcement of president Vladimir Putin’s decision to liquidate the Supreme Arbitration Court and subordinate all commercial courts to another branch of the judiciary, about one in eight Supreme Arbitration Court judges and a number from other commercial courts immediately tendered their resignations in protest. Are they right to be so concerned about the impact of the reforms? Continue reading »
Did Enrique Peña Nieto’s proposed fiscal reform, unveiled on Sunday, deliver what Mexico needs to boost its woefully low tax take? One way of assessing that is to gauge what the reform aims to provide against the bills that Mexico has to pay. On that basis, the answer is “Partly” – even though the economic slowdown prompted Peña Nieto to hold back from a widely expected sales tax increase on medicines and food. Continue reading »
China is often accused of only picking the low-hanging fruit when it comes to policy making. In its decision to liberalise lending rates over the weekend, it didn’t even manage that. This apple had already dropped off the branch.
But, in this case at least, the symbolism matters. Continue reading »
Vladimir Putin was in typically punchy form at the St Petersburg International Economic Forum on Friday promising to invest billions in infrastructure projects, massively expand Russia’s energy trade with China, and instruct every state official from the lowest police officer to the highest minister to devote themselves to improving Russia’s business climate. Continue reading »
China’s Securities Regulatory Commission has begun consultation on a new round of IPO reform, raising hopes that it is preparing to lift its most recent ban on initial public offerings, imposed last year to speed up reform and stabilise a weak domestic market. But many are urging Xiao Gang, the CSRC’s new chairman (pictured), to take the proposed reform further. Continue reading »
Enrique Peña Nieto, Mexico’s new president, is promising structural reforms and generating great excitement about his economic model. Mexico’s markets are rallying, but can the reforms stimulate real wages, which have stagnated for more than a decade? John Paul Rathbone, Latin America editor, and Long View columnist John Authers discuss.
The Arab spring seems a world away on the train from Casablana to Rabat. In one compartment a conversation springs up between a local Moroccan, running a machine parts manufacturing business, and a Saudi from a construction company, visiting Rabat to seek migrant labour to help with the booming development in Saudi’s northwest. Cards are exchanged, then brochures; business is done, right here on the rumbling train. Continue reading »
By Dominic Scriven of Dragon Capital
It has been a hard time for investors in Vietnam in recent years. Sky high inflation, lax lending to unproductive sectors – especially state-owned enterprises, a depreciating currency and high levels of non-performing loans have caused foreign investors to think twice about buying into the country.
However, on Sunday the Lunar New Year will be ushered in with spectacular fireworks, wonderful flower markets, family banquets and colourful celebrations. The coming Year of the Snake, the 6th animal in the Chinese zodiac, is commonly associated with focus and discipline. Both will be needed if the government intends to carry on its promise of economic reform. Continue reading »
By Marcos Troyjo of Columbia University
The timid expansion of Brazil’s GDP in the past 12 months at under 1 per cent deals a hard blow to the notion that its policy makers had devised an economic model uniting high growth with social inclusion. This sweet dream is over. It is wrong to assume that the set of policies Brazil has put in place in the past few years to boost its economy and upgrade its social data are pillars of a new development model. Continue reading »
Russia has talked a lot about economic diversification over the past two decades but it has made little progress in weaning itself off revenues from natural resources. A new report by the European Bank for Reconstruction and Development sets out recommendations that might stimulate industrial modernization and tries to make sense of Russia’s abiding addiction to oil. Continue reading »
Something does not feel right in Kiev, with a new-old prime minister back in place.
Brawls broke out in parliament ahead of Thursday’s vote by lawmakers to re-instate Mykola Azarov as Ukraine’s prime minister. Then on Friday, an influential oligarch resigned as deputy prime minister in protest at President Viktor Yanukovich’s decision to bring Azarov back. Continue reading »
Fresh indications that all is not well with India’s economy: exports fell and imports rose in November, delivering yet another big trade deficit. And it’s likely to get worse before it gets better – not a great outlook for the currency or for equities. Continue reading »
By Primož Cencelj of KD Funds, Ljubljana
News clips broadcast around the world in the past fortnight of police and protesters clashing violently on the streets of Slovenia do not fit well with either the image nor the usual reality of this small Alpine state, the only fragment of former Yugoslavia (so far) to become a member of the European Union. Continue reading »
Most Romanians will be pleased to see the back of 2012, a year that began with a bitter winter of street protests against austerity and government heavy-handedness, then saw the toppling of two prime ministers, the failed impeachment of an unpopular president, and a constitutional crisis that brought international opprobrium.
But the year may have one more drama in store: on Sunday, Romanians vote in a general election. The governing coalition seems certain to win but Romania’s constitutional set-up means a rather different administration could take shape. Whatever government emerges will be under pressure to negotiate a new deal with the International Monetary Fund and restart reforms to trim the public sector. Continue reading »