Latin America, a region endowed with vast resources and a large population has the makings to be a successful world economy. However, that is far from reality. In the early 1960s, Latin America’s per capita income was more than double that of East Asia. Nowadays, however, the region lags behind with none of its countriesContinue reading “Latin America: The Region Raging with Potential”
For years, economists and political scientists studied the relationship between government institutions and economic growth – mainly the association between democratic institutions and economic development within a state. The general consensus was that although democracy does not directly lead to economic development, higher human capital accumulation, lower inflation, lower political instability, and higher economic freedom usually were prerequisites for development. Furthermore, economic sources of growth, like education levels and lifespan, through improvement of academic institutions as well as healthcare were all present in democracies. Read for more on how in recent years, China has challenged these conventional political norms greatly.
At the time of writing, whispers grow that Evergrande, the Chinese real-estate developer, will default on $82.5 million in interest payments. Al-Jazeera notes how the failure to make the payments on a public bond would “trigger cross-defaults on all the company’s about $19 billion of bonds on the international capital markets” earning Evergrande a place in the history books as China’s largest ever defaulter to date, obviously sending ripple effects across the economy. This article unravels why the Chinese real-estate market poses a stern challenge to local, national and monetary officials.
Over the past decade, India’s stance in the global economy has become irrefutable; making it a powerhouse that fuels and guides multiple sectors. Moreover, the Indian economy was just beginning to gain traction amongst other prominent world powers. Nonetheless, with the onset of the COVID-19 pandemic, India was faced with unforeseen challenges that the economy wasn’t equipped to battle. Read for more on how the COVID-19 pandemic proved to be an opportunistic time period that helped further develop and evolve the Indian economy.
In this article we examine two factors: (1) Gender Equality and (2) Environmental, Social and Governance (ESG). We explore how gender equality may affect post pandemic recovery in developing markets, the impact of the pandemic on developing markets’ commitment to ESG and the risks ESG poses to developing markets in the future. Read for more on sovereign credit ratings and how these may be influenced by the aforementioned factors.
A Muslim-majority country, Hindus account for only 9% of Bangladesh’s population. Since gaining independence from Pakistan in the 1970s, the percentage of Hindus in Bangladesh has been constantly shrinking as more Hindus gradually migrate to India. Hindu community leaders have estimated the Hindu population in Bangladesh to have declined from 30% in 1947 to less than 9% now. Read for more on the deadly impact of the deepening religious divide in Bangladesh.
Managing director and head of emerging markets at CitiBank, David Lubin, published Dance of the Trillions: Developing Countries and Global Finance in 2018 that discussed topics regarding modern capital flows between high and low-income countries. Unlike the Dependency Theory, Mr. Lubin takes a more positive outlook by taking readers through a modern historical tour of economic development within emerging economies. Read for more on how Lubin traces how the traditional approach of Washington DC-led liberalization is slowly being replaced by a Beijing-led approach of state-imposed restrictions.
COVID-19 has hit India hard. In fact, official deaths attributable to the infectious disease is 452,485 – a figure universally recognised as vastly underestimating total number of deaths. For more, read the full article to find out how the deadly second wave, lasting much of April and June 2021 was further complicated by the hard to untangle problems of misinformation and vaccine hesitancy.
Afghanistan is one of the world’s poorest countries with a GDP per capita (PPP) of around only $2,100, with its dire economic situation only exacerbated by the pandemic. Fighting in recent years and uncertainty about the future have only made investors jittery. And this year, financial stress and a drought have added to Afghanistan’s woes. The country has endured fighting for over 40 years – so long that most Afghans can’t remember a time of peace. On August 15th, the Taliban swept victory in the nation following their rapid advance across the country, and capture of Kabul. Read the article to find out more on how group looks to govern the country, particularly how the ailing economy will fare under extremist rule.
North Korea: The Hermit Nation – A war in the mid-20th century, obsession with nuclear proliferation and a stubborn refusal to globalise. Read the article to find out about North Korea and its story of political repression and economic seclusion!