The A-List

Wanted: a Brazilian Mark Zuckerberg

Moisés Naím — Fri, 24 May 2013 07:00:59 +0000

Latin America’s giant economy urgently needs someone like Facebook’s founder and chairman. Not to disrupt business models but to disrupt its immigration policies – like Mark Zuckerberg is now doing in the US.

The Facebook chief executive has launched an organisation called FWD.US whose aim is to lobby in favour of comprehensive immigration reform. This lobbying effort is not completely disinterested: one of the group’s goals is to make it easier for the companies supporting it to employ foreigners in the US.

Many investors may not be living in the real world

Stephen King — Thu, 23 May 2013 19:39:35 +0000

No one can be strong when China is weak. That, at least, appeared to be the message from the economic data this week. New data suggest lacklustre growth in China – sparking nervous sell-offs in other countries. A one-day decline of over 7 per cent in the Nikkei stock market index might seem like an overreaction but, last year, China was Japan’s most important export destination, accounting for more than 18 per cent of its goods exports. China now accounts for one-quarter of South Korea’s exports. China is also the third-largest destination for US exports, after Mexico and Canada.

We should listen to what gold is really telling us

Mohamed El-Erian — Mon, 20 May 2013 11:19:55 +0000

There is no better topic than gold to polarise an investment discussion. So the recent sharp drop in the metal’s price has pushed to fever pitch the debate between two camps with deeply held convictions: those who view gold as overvalued and lacking both income and capital appreciation attributes; and those who feel it is only a matter of time before others appreciate again gold’s unique role as an antidote for virtually any economic ill that could hit a diversified investment portfolio.

As interesting as this debate is, it understates the potential significance of what has taken place. The recent volatility speaks to a dynamic that has played out elsewhere and, more importantly, underpins the gradually widening phenomenon of western market-based systems that have been operating with artificial pricing for an unusually prolonged period.

Washington really needs a better class of scandal

Jacob Weisberg — Thu, 16 May 2013 18:54:58 +0000

Washington’s need for periodic scandal is almost biological. For legislators, it is the opportunity to strut on the national stage. For the party out of power, it is politics by other means. For the press, it is an escape from the boredom of a second term. Scandal means a break in the routine, a thrilling emergency. How else to explain the excitement with which two events – an attack on a US consulate in Libya and tax audits of conservative institutions – have been elevated into scandals? At some level, the political class loves it.

Coming to terms with China’s growth prospects

Yukon Huang — Thu, 16 May 2013 07:00:32 +0000

Markets have not been enthused by the numbers coming out of China in recent months. Typical headlines are “China’s production indicators disappoint” or “analysts are worried that rapid expansion is faltering”. Estimates of China’s economic growth this year are slipping from more than 8 per cent to something closer to 7.5 per cent. Those concerned about the country’s longer-term growth challenges, however, tend to be more relaxed about near-term outcomes but preoccupied with the new leadership’s commitment to reforms.

Is there a trade-off between reviving the economy and establishing a sustainable basis for longer-term growth? Unfortunately there is. Beijing has run out of good options to further stimulate the economy as a strategy to buy time until western economies rebound.

A response to Martin Wolf

Roger Altman — Mon, 13 May 2013 11:59:43 +0000

I have enormous respect for Martin Wolf, as he knows, and never miss a single one of his brilliant and indispensable columns. Indeed, I appreciate his responding, as did Paul Krugman and Joe Wiesenthal, to my recent FT article on the origins of recent eurozone austerity programs.

In further responding, let me emphasize that my argument is not pro-austerity or anti-austerity. Not at all. Rather, the main point which I tried to make is that financial markets originally pushed austerity onto the weaker nations, not politicians. A careful review of the timeline in this eurozone financial crisis bears this out.

Pakistan’s politicians must unite to save the nation

Ahmed Rashid — Thu, 09 May 2013 06:00:38 +0000

Even by the country's dismal standards of rigged elections, military dictatorships and incompetent civilian governments, the polarisation, murder and mayhem on the streets is unprecedented. Coupled with the gross opportunism of all political leaders in ignoring issues on which the nation’s survival depends, this is causing immense international and public concern. The future after the elections will continue to look bleak unless the politicians can agree to work together on these crucial issues.

Blame bond markets, not politicians, for austerity

Roger Altman — Wed, 08 May 2013 20:09:21 +0000

Criticism of austerity has reached ferocious levels in Europe. Increasingly, it carries a moral tone, portraying the stronger north, especially Germany, as forcing harsh policies on to weaker nations. Opponents of austerity argue that the north is demanding fiscal tightening and labour market reforms from these stricken states in exchange for vital lending from entities such as the European Central Bank. They see it as kicking economies when they’re down.

Venezuela: scenes from a democracy

Moisés Naím — Tue, 07 May 2013 05:00:25 +0000

Carmen felt both exhausted and thrilled. Exhausted because her 78 years made the 15-hour bus ride too long. And thrilled because she had voted in the presidential election. To do so, she had to travel from Miami to New Orleans. The journey was caused by President Hugo Chávez’ decision to close his country’s consulate in Miami. So the 20,000 Venezuelans who live there (most of whom are not Chávez supporters) had to choose between not voting or going to New Orleans...

In modern Myanmar, the hard grind begins

Kurt Campbell — Mon, 06 May 2013 10:57:13 +0000

In the west, discussion of the country's prospects is focused on whether the change to date irreversible or whether the military could come roaring back to power. This preoccupation misses the point. The real question about is not whether it will go back but, rather, how it will go forward. There are already a few hints about what to expect.