Category: Economics

UN, IMF, World Bank, and OECD Join Forces in Wake of Panama Papers


Several of the world’s leading international economic organizations announced on Tuesday that they would join forces to confront the various tax issues illuminated by the recent Panama Papers scandal. These organizations include the United Nations (UN), the International Monetary Fund (IMF), and the World Bank, the Organization for Economic Cooperation and Development (OECD), among others.

They will develop new processes, tools, strategies, and standards designed to halt tax base erosion and prevent tax evasion by individuals and corporations.

Can Living in a ‘Good Society’ Have Economic Benefits?


Which is the best African country in which citizens should live? A recently developed barometer has measured just that.  The Good African Society Index, published in 2015, measures the quality of society in African states, exploring how African countries perform relative to each other in a number of domains.

EU and Canada Struggling to Reach Trade Deal


Although international economic treaty news has lately been peppered with more stories about better-known trade deals like the Trans-Pacific Partnership (TPP), there is another treaty that has been generating just as much discussion and, in some cases, animosity.

The treaty in question is the Comprehensive Economic and Trade Agreement (CETA), intended to be an agreement between the European Union (EU) and Canada. Unfortunately, while negotiators announced that they had reached an agreement on CETA back in October 2014, it has been stuck in the approval phase ever since.

The U.S.’s Role in Asia Could Be ‘Trumped’


In the capitals of America’s Asian allies, two phenomena are combining to intensify already uneasy relations with Washington. The first is China’s continued assertiveness in the South China Sea. Beijing’s militarisation of these contested territories — transforming rocks and reefs into artificial islands with runways and radars — has driven already close US allies more tightly into the American embrace.

Positive Market Action with Little Market-Moving News


Global capital markets staged an impressive recovery after the initial reaction to the failure to freeze oil output sent reverberations through the oil markets, commodities, and Asian equities. The sharp reversal begun in Europe and extended in North America has been sustained.

Oil prices remain firm. Perhaps the realization that the labor dispute in Kuwait has reduced output by as much as 60% (to 1.1mln barrels a day) helped underpin prices. The fall in output may be of greater immediate significance than a freeze.

Anxiety-building as a Strategy Against China


The Obama administration has never plainly acknowledged that it faces a major challenge from China to the US-led order in Asia, and it has therefore never clearly explained its strategy to deal with that challenge. Because it has never been clearly explained, the strategy has never been carefully scrutinised to see whether it has a credible chance of working. Instead, it has slowly become accepted as orthodoxy among the US foreign and strategic policy community without serious debate.

Trade Policy and Economic Opportunity


The goal of trade policy is not limited to increasing export opportunities. Nor is it just about improving trade balances. Rather trade policy is about taking opportunities to improve the economy’s productive base. When assessing a nation’s experience with bilateral trade agreements, this test should be applied.

In each bilateral agreement Australia has completed to date, projections of the potential gains for Australia, based on unimpeded access to all markets of the other country involved, were released prior to negotiations.

The Doha Fail was Not a Big Surprise


Oil producers failed to reach an agreement yesterday at the meeting in Doha.  That is the main spur to today’s activity.  It is not that the outcome was a surprise.  One newswire poll found around half of the respondents thought an agreement was elusive. 

Donations Stalling: World Bank Urges Follow Through on Gaza Aid


Gaza has struggled socially and economically almost from its inception, but this has been particularly true following Israel’s war against the region in 2014. Following the devastation, a number of Arab nations led the way in pledging aid to the region for reconstruction. Qatar, the United Arab Emirates (UAE), and many other Arab nations appeared poised to assist the region without the need for intervention by organizations like the World Bank or International Monetary Fund (IMF).

A Busy Week Means Market Participants Must Prioritize


It is never easy, but the week ahead may be particularly difficult for market participants. It will first have to respond to weekend developments. 

First, the front page of the NY Times on Saturday was a report that Saudi Arabia gave the U.S. a warning.  If a bill making its way through Congress that would allow it (Saudi Arabia) to be held responsible in American court for the terrorist strike on 9/11, the sheikdom would sell its Treasury holdings, and other US assets, which otherwise could be frozen.