Showing posts with label Joseph Stiglitz. Show all posts
Showing posts with label Joseph Stiglitz. Show all posts

Wednesday, May 16, 2012

Volume 4 Issue 18: Intelligent Investing

Burma's Turn. When Is It Malaysia's Turn?

I kept this article from quite a while back but didn't manage to write anything meaningful about it. Nonetheless, it is a Stiglitz piece, and it would be a shame if I did not share it. Stiglitz talks about Burma (or now known as Myanmar) and its prospects after the leadership change which brought forth a string of rapid reform measures that makes Najib's reform measures look bad. Here is some extract:
Under the leadership of the new president, Thein Sein, the authorities have responded to calls for a political and economic opening. Progress has been made on peace agreements with ethnic-minority insurgents – conflicts rooted in the divide-and-rule strategy of colonialism, which the country’s post-independence rulers maintained for more than six decades. The Nobel laureate Daw Aung San Suu Kyi was not only released from house arrest, but is now campaigning hard for a parliamentary seat in April’s by-elections. 
On the economic front, unprecedented transparency has been introduced into the budgetary process. Expenditures on health care and education have been doubled, albeit from a low base. Licensing restrictions in a number of key areas have been loosened. The government has even committed itself to moving towards unifying its complicated exchange-rate system. 
The spirit of hope in the country is palpable, though some older people, who saw earlier moments of apparent relaxation of authoritarian rule come and go, remain cautious. Perhaps that is why some in the international community are similarly hesitant about easing Myanmar’s isolation. But most Burmese sense that if changes are managed well, the country will have embarked on an irreversible course.
I think the question that is so mind-boggling is, if countries like Myanmar and Senegal can do it, what is stopping Malaysia from implementing meaningful reforms? Are we so short of ideas? You know it is worrying when your Prime Minister has to set up a website to seek ideas on how to improve the country.

Friday, January 13, 2012

Stiglitz on 2012

I always like Stiglitz's analysis. Here is what he thinks about 2012:
Even before the crisis, there was a rebalancing of economic power – in fact, a correction of a 200-year historical anomaly, in which Asia’s share of global GDP fell from nearly 50% to, at one point, below 10%. The pragmatic commitment to growth that one sees in Asia and other emerging markets today stands in contrast to the West’s misguided policies, which, driven by a combination of ideology and vested interests, almost seem to reflect a commitment not to grow. 
As a result, global economic rebalancing is likely to accelerate, almost inevitably giving rise to political tensions. With all of the problems confronting the global economy, we will be lucky if these strains do not begin to manifest themselves within the next twelve months.
Source: Project Syndicate

Tuesday, December 06, 2011

Another Eurozone Post??!

I just posted this morning about how the former ECB President was dreaming if he expected austerity to be expansionary:
I guess he (Michael Boskin) can't be too blunt about the former ECB President. How can fiscal consolidation be expansionary? The private sector is not spending, the government is not spending, the consumers have no jobs, so they have no money to spend. So who is spending? If no one is spending, how can the economy expand? What is this confidence fairy thing?
Now, if you think I am talking junk, here is Joseph Stiglitz on the issue:
Public-sector cutbacks today do not solve the problem of yesterday’s profligacy; they simply push economies into deeper recessions. Europe’s leaders know this. They know that growth is needed. But, rather than deal with today’s problems and find a formula for growth, they prefer to deliver homilies about what some previous government should have done. This may be satisfying for the sermonizer, but it won’t solve Europe’s problems – and it won’t save the euro.
I am not in the habit of name-dropping but it would be foolish not to leverage on the comments of a Nobel Laureate.

 Source: Project Syndicate