The world is going to experience a debt crisis that will last for the next 10 years and it is not going to end well, as global debt has reached a record 307.4 trillion. dollars last September. Both high-income countries and emerging markets have seen a significant increase in their debt, which has increased by …
Category: Developing Economies
analysis for Developing economies
The IMF will demand a “blood and tears” plan from Argentina
A mini-Summit on January 5, 2023 was attended by the new president of Argentina, Javier Millay. The reason for the meeting he had with the technical staff of the International Monetary Fund (IMF), which took place on the very day that the price of gasoline rose by 27% and meat, a staple food in Argentina, …
Argentina: Issuing Perpetual Bonds for ‘Haircuts’ Without ‘Haircuts’
The tool of perpetual bonds to service the debt of the perpetually sick and asthmatic Argentina is intended to be used by the President of Argentina, Javier Millay. More specifically, the Argentine president by issuing perpetual debt seeks to repay a $16 billion bond – money that had been used to renationalize the country’s public …
Good Luck Argentina: A Promising Liberal Experiment Begins
Argentina is perhaps the only example of a country that, while it was among the 10 richest at the beginning of the 20th century, was driven into poverty by the populist state diet economic model of the Peronists. A country rich in natural resources followed a failed development model based on industrialization behind a wall …
Pressure on Emerging Economies from the Overvalued Dollar
The rise of the US currency depletes their limited foreign exchange reserves and stunts growth by making their exports more expensive. The strengthening of the dollar over the past year due to continued interest rate hikes by the US Federal Reserve has put severe pressure on many emerging economies, which have seen their national currencies …
Debt and Stagnation threaten Developing Economies
The news brought by the World Bank’s Global Economic Prospects report was not good. First we have the forecast for global growth (https://www.worldbank.org/en/publication/global-economic-prospects). This is now down to 1.7%, well below the 3% previously forecast in June. For developed economies, the forecast is for growth of just 0.5% in 2023, just above the typical recession …
Industry and Tax sector
A developing country that wants to continue to provide its citizens and businesses, respectively, with opportunities to expand their digital services and platforms, must continually create easy-to-use tools and platforms and push more citizens and businesses to adopt intact digital way of fulfilling their tax obligations. A typical example of such a service is the …
Development Tips for Developing Economies
A grid of six central policies to improve both the productive activity of enterprises and the institutional framework that defines the underlying economic functions could be as follows: 1. Reduction of frictions from taxes and labor contributions, e.g. reduction of insurance contributions, solidarity contributions, income integration in a single tax scale, etc. 2. Implementation of …
Why China Has a Difficulty Getting Rid of Coal
2020 was a milestone in increasing energy production in China. China has commissioned new lignite plants that produce a total of about 38.4GW of electricity. China is the country that builds factories to increase the use of lignite for electricity generation while at the same time as a country invests most of the capital in …
Innovation as a Leader in Economic Development and What Is Needed to be Successful
Innovation is commonly defined as the “carrying out of new combinations” that include “the introduction of new goods, … new methods of production, … the opening of new markets, … the conquest of new sources of supply … and the carrying out of a new organization of any industry”. (Wikipedia). So, when innovative ideas are …