Category: Political Economy

UK Conservative Victory Portends Deregulation


A decisive victory by the Conservative Party in Great Britain may portend greater cost cutting to social services and lower corporate taxes for the UK.

While the Conservatives gained a majority with over 327 seats, the Liberal Democrats suffered a fall from grace as they lost about 30 seats in the House of Parliament. The Labour Party, with over 230 seats, will be the second largest party and the opposition to the Conservatives, but they will also have to contend with the Scottish National Party, whose representation in the Parliament surged to at least 56 seats.

U.K. Data Shows Pre-election Jitters While Europe Heads in Two Directions


There are four developments today that impact global investors.

The first is that the Reserve Bank of Australia delivered a 25 bp rate cut but signaled in its statement that is has returned to a wait and see mode.  The Australian dollar initially sold to just below $0.7790 and quickly rebounded to nearly$0.7920 before the buying faded.  It settled in a $0.7860-$0.7885 range. 

Grading Japanese PM Abe’s U.S. Visit


Prime Minister Shinzo Abe’s US visit was, overall, a success. His meeting with President Obama and his Congressional speech created the impression of a leader who is capable of delivering. During his visit to the US two years ago, Abe somewhat surprised Japan–US watchers with his sudden statement that ‘Japan is back’. This time, whether you like him or not, few would doubt that Japan — and Abe — is back.

Vietnam’s Slow, Uneven, March Toward Democracy


Since the mid-1990s, public criticism of the Communist Party of Vietnam (CPV) government has expanded to involve thousands of citizens across the country. From this ferment of criticism numerous individuals, networks and organisations have emerged that oppose the present regime — which many call authoritarian or dictatorial — and advocate democracy.

China’s Ethnic Frontier Protests are Still High Risk


For centuries, the Chinese state has governed its distant ethnic frontiers with both carrot and stick. In the past, emperors proffered ‘imperial grace’ (Ä“n) for those ‘barbarians’ willing to submit (at least nominally) to Chinese dominion, while reserving the right of ‘imperial might’ (wÄ“i) for those who resisted.

Is Greece’s Euroscepticsm Really Working, and Can it Work for Others?


The last few years have been remarkable for Greece’s relationship with the EU. The bail-out agreements between the country and the EU-IMF, the interference of the latter two in domestic affairs and the imposition of austerity have caused a sharp rise in euroscepticism.

EU Accuses Gazprom of Abuse


The European Union has accused Russian gas giant Gazprom of anticompetitive practices as the EU issues formal charges against the firm.

In a further sign of intensifying tension between the EU and Russia, the EU said it would pursue charges that Gazprom has acted illegally according to EU rules.

In a press release, the EU said that the European Commission sees Gazprom breaking competition rules in order to fragment gas markets in Central and Eastern Europe, enabling Gazprom “to charge unfair prices in certain Member States.”

UK Election: Without Productivity Gains, Growth is Doomed to be Below Potential


The economy is taking centre stage in the UK election, with the main parties spending most of their time arguing over the speed and extent of cuts – and which party would be more “fiscally responsible”.

But the fundamental (and of course related) issue that has received less airtime is that of growth. Given poor growth since the financial crisis, this should be an area of focus for any party claiming that management of the economy is a priority.

The Battle Drawn Along Myanmar’s Ethnic Lines


In the official count, the country tallies up 135 different ‘national races’. The majority Bamar people, who drive national expectations of language, culture and politics, make up around 60 percent of the population. The minority groups, most with their own distinct tongues, customs and clothes, make up the rest.

China’s Underlying Strategy in Tibet Appears to be Working


The Chinese authorities last met with representatives of the Tibetan exile leadership five years ago. Since then, there has been no progress towards a resolution of the China–Tibetan dispute. Meanwhile, protests against Chinese rule have continued, with over a hundred self-immolations by Tibetans. The Chinese government has responded with tighter controls on movement, worship, speech and information in Tibetan areas, together with increased mechanisms for surveillance. However, the reason for the failure to resolve the issue is not tensions on the ground.