Eleven of the less prosperous members of the European Union – Bulgaria, Croatia1, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic, and Slovenia (EU11)—have remained attractive destinations for Foreign Direct Investment (FDI). The Czech Republic, Estonia, and Slovakia witnessed FDI levels in 2012 similar to pre-crisis levels. Poland and Bulgaria also experienced large gains in FDI in 2012.
Financial Markets…US treasuries gained and the benchmark 10-year bond yield edged down 1 basis point to 1.66%, after rising as high as 1.7% earlier, while the 30-year bond yield slid by 2 bps to 2.83% in early Friday session after a government report on wholesale price in September showed domestic inflation remained muted.
Imagine you need a car to commute long distances to your workplace or the closest supermarket, to visit your parents and to bring your child to school. Therefore, you want to spend the money you have been able to put aside on a large purchase: a new and reliable car. However, you do not know how to drive, nor how do you have even a basic understanding of any technical aspects of a car, not to mention any knowledge about how to maintain a car.
Also, imagine that everything you have heard so far about car dealers from your family, friends and neighbors is that they have a very bad attitude, do not act in your best interest and try to sell you overpriced vehicles with hidden fees and features you do not need. Given your lack of knowledge of how to choose and use a car and your lack of trust, would you still feel confident about approaching a car dealer? Most probably not.
This analogy also applies to one’s participation in financial markets. Especially in developing economies, where most globally unbanked people live. If you do not have knowledge of features and risks associated with financial products, do not know how to choose and use these products, lack any basic understanding of inflation, interest rates and compound interest, it is unlikely that you will participate in financial markets, or that you will benefit from them if you do. A lack of trust in financial service providers will do the same.
Success doesn’t just happen automatically – not in the economy, and not in any competitive arena of life. But by focusing your resources realistically in the areas of your greatest strength, you can maximize your chances of coming out on top. Perhaps in some long-vanished world of effortless monopolies and protected markets, passivity might once have been enough – but in a world of relentless global competition, a lazy laissez-faire abdication cannot deliver optimal results.
That lesson has come through clearly amid these elegiac end-of-summer days, as the world continues to bask in the Olympic afterglow of the Summer Games in London. The games lifted the spirits of sports-watchers worldwide – and the postgame analysis of just how the host country, Great Britain, ran up its highest medal count in 104 years has provoked some intriguing ideas about creating an “Olympic effect” for economic development.
Important developments today:
1. Crude oil prices fall from 9-week high
2. German producer price inflation falls to lowest in two years
Important developments today:
1. Moody’s downgrades 12 U.K. banks and 9 Portuguese institutions
2. U.S. employment growth in September bests economists’ estimates
3. German output falls less-than-expected after July’s surge; but orders slow
Alternatives to the traditional public school system are actively being sought and radical approaches for expanding school accountability are being widely touted. For example, in the award-winning documentary, Waiting for Superman.
While radical approaches are needed – given the desperate state of most public education systems; just see the poor results of most middle income countries in international assessments such as PISA and TIMSS – there are more mundane approaches, already in practice, that could be made to offer so much more. Giving public schools adequate resources, the right to make appropriate decisions, and holding them accountable through the publication of school results – in short, school autonomy – has been used in countries around the world since the mid-1960s. The school autonomy approach – be it known as school-based management, whole school development, comprehensive school reform, or parental and community participation – has been tried, evaluated, and proven successful at achieving a range of education goals in many different contexts.
Andrew Puddephatt’s Exploring the Role of Civil Society in the Formulation and Adoption of Access to Information Laws defines the main contours of Access to Information (ATI) movements in 5 countries (Bulgaria, India, Mexico, South Africa and the United Kingdom). In Bulgaria, ATI was established by an environmental eco-glasnost movement that emerged in a post-Communist society (glastnost meaning transparency). In India, the ATI movement was embedded in a larger, anti-corruption movement led by the rural poor communities. In Mexico, a group of social activists and experts from academia and media conducted a targeted campaign for ATI just as Mexico was joining the OECD, NAFTA, and the WTO. The campaign for ATI in South Africa grew out of a post-apartheid civil society which recognized that information (or the systemic denial of it) was a key factor in perpetuating racial, social and economic inequality. The movement for ATI in the United Kingdom was spearheaded by a specialist NGO that capitalized on a government in the process of implementing broader constitutional reforms.