Daily Archives: July 16, 2013

Chief justice Adly Mansour is sworn in as interim president the day after Mohamed Morsi is ousted (Getty)

Among Egyptians of all political stripes, there is a pervading conviction that talented and top-notch specialists who know their jobs well can help fix the nation’s myriad problems. The interim government installed by the military after the overthrow of Mohamed Morsi’s Islamist-dominated government has begun a flurry of appointments of so-called technocrats to key government posts.

It has appointed economist Hazem Beblawi as prime minister and named another noted economist, Ahmed Galal, as finance minister. It has begun assembling a constituent assembly that will be filled with experienced judges and legal experts. Mohamed ElBaradei, the former UN nuclear chief and Nobel laureate, has been sworn in as a vice-president for foreign affairs.

But the belief that a government of competent, cleverly-placed and politically neutral technocrats can solve problems as deeply entrenched as those Egypt faces is at best questionable and at worst fantasy. Read more

♦ A recent ECB study asked what effect policy makers’ comments had on euro area sovereign bond yields: the FT’s Michael Steen thinks “it is hard to resist the temptation of wondering whether senior central bankers have heeded the warning.”
♦ The assertiveness of the Gulf petrostate monarchies over Egypt is a sign of their restored political confidence, but such a position is not without its problems, says Michael Peel.
♦ Morocco is cited as a model for Arab monarchies facing demands for democratic change, but critics argue that it illustrates how elites can maintain power behind the scenes.
♦ Foreigners earned less than 1 percent a year investing in Chinese stocks, a sixth of what they would have made owning US Treasury bills. Quartz, however, broke down the components of the stocks: “Companies that cater toward the Chinese consumer, which represent just under 11% of the MSCI and 6% of the HSCE index, tend to be a much more profitable, and they’re better performers than SOEs.” The upshot? China’s population has benefited, even if foreign investers haven’t.
♦ Latvia’s new tax laws mean it could be a “Luxembourg for the poor.”
♦ The custom of forcibly marrying girls off to resolve family and tribal disputes is continuing on an alarming scale across all provinces of Pakistan.

 Read more

By Gideon Rachman

Edward Snowden seems like a bright chap. So he will probably have noticed the irony of voicing his complaints about persecution by the US legal system from the confines of Moscow airport. There are few governments in the world that abuse the law, for political purposes, with the ruthlessness and cynicism of Vladimir Putin’s Russia.