Emerging Markets

  • Africa Rising rhetoric is drifting further away from reality.

    Africa (not exactly) Rising

    Self-congratulatory rhetoric keeps springing from the lips of World Economic Forum elites – at the expense of reality.  Software executive Brett Parker claims “Africa will probably remain natural resources-driven for the next two decades at least.” African Leadership University’s Fred Swaniker  view 0

  • Brazil's Rousseff is gone so now the hard work begins.

    Does it Matter Why Rousseff was Impeached?

    “Brazil’s young democracy is being subjected to a coup,” said Dilma Rousseff after the Senate on May 12 voted 55 to 22 to remove her as president and move forward with impeachment.

    Is this really a coup, as Rousseff and her supporters believe? Coups usually entail the violent overthrow of a government or a trampling of constitutional rules and procedures. In Brazil, there has been no involvement by the military other than to keep the peace.

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  • Country-specific risks like Brazil's impeachment process are plaguing EM.

    Positive Dollar Sentiment, Idiosyncratic Risks Weigh on Emerging Markets

    EM ended last week on a soft note, and that weakness seems likely to carry over into this week.  Dollar sentiment turned more positive after firm retail sales data on Friday, though US rates markets have yet to reflect any increase in Fed tightening expectations.

    Over the weekend, China reported weaker than expected April IP, retail sales, and fixed asset investment.  This continues a string of weak data for the month, and will undercut notions that the world’s second largest economy is stabilizing. 

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  • Mozambique is in the spotlight for the wrong reasons.

    Mozambique needs to make Better Choices

    Mozambique’s return to the international limelight reads like a John le Carré novel. The elements of a bestseller are all present: growing internal instability, unexplored natural gas deposits, international loans to purchase weapons disguised as lending to fund tuna boats, and hidden public loan guarantees to private companies owned by the secret services.

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  • The United States does not need its own Greece in the form of Puerto Rico.

    There were Warnings about Puerto Rico

    To almost no one’s surprise, Puerto Rico missed a US$422 million debt payment earlier this month, triggering fears among investors that additional defaults are on the way and increasing pressure on Congress to act.

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  • Moving to a learning economy should be on Africa's to do list.

    Africa's Economic Future without Commodity Dependence

    The current slump in world commodity prices is forcing Africa to rethink its traditional dependence on raw material exports. This is why the time for African nations to lay the foundations for transitioning from extractive to learning economies is now.

    The jolts are real. The International Monetary Fund has projected that the continent will grow by 3% in 2016. This is well below the 6% average growth over the past decade and the lowest rate in the past 15 years.

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  • South African companies can do more in sustainability reporting.

    In South Africa, Sustainability Reporting Equals Integrity

    Sustainability reporting combines economic performance with social responsibility and environmental care. It aims to help businesses set goals. It also measures performance and manages change towards sustainability.

    Many governments and stock exchanges require businesses to provide some level of sustainability reporting. This has become important because of growing social and environmental injustices, high-profile corporate scandals and the global financial crisis.

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