ALEXANDER MIRTCHEV DISCUSSES THE EVOLVEMENT OF THE ECONOMIC AND FINANCIAL CRISIS IN EMERGING MARKETS AND THE STRATEGIC OPTIONS FOR THE MULTI-NATIONALS WITH VOICE OF AMERICA

In an interview with Voice of America television, Dr. Alexander Mirtchev (Александр Мирчев), an economic policy expert and president of Krull Corporation, shed light on the strategic options that multi-national companies have in some rapidly emerging markets during the economic crisis and beyond.

Despite improvement Chinese currency still undervalued: Lew

WASHINGTON: Despite improvement in the valuation of Chinese currency, the Treasury Secretary-nominee, Jack Lew, has said that it remains undervalued, asserting that the Obama Administration would continue to push China in this regard.

Will G-20 Counter Power of Uncertainty?

By Alexander Mirtchev

In 2009, G-20 leaders met in Pittsburgh and emerged with a mandate ‘to be the premier forum for international economic cooperation,' endowing the G-20 with a leading economic role on the global stage. It appeared at the time that the leaders of the G-20 had successfully defeated pessimism. However, the rising tide of global economic turmoil and problems ranging from sovereign indebtedness to consumption and saving imbalances have created a ‘perfect storm' that is far from abating.

Fact Sheet: U.S.-German Global Economic and Development Cooperation

The United States and Germany share global economic goals, from addressing financial reforms to development and food needs worldwide. Reinforced through strong bilateral economic and political ties, we also cooperate in fora such as the U.S.-EU Transatlantic Economic Council, the G-8 and G-20. We work together to advance energy security and efficiency and to address environmental concerns while promoting policy measures to benefit emerging economies and sustainable practices worldwide. The United States and Germany look to increase bilateral cooperation through:

Skyrocketing Food Prices Threaten Global Security

As G-20 finance ministers met in Paris today, warnings that food riots could erupt in the face of steeply rising prices are resounding around the world. Members of the European Parliament called on the G-20 to take action. Many leaders are identifying extreme weather patterns and climate change as primary factors in poor crop yields.

"Global agricultural production is coming up against the increasingly apparent effects of climate change, increasingly severe climate disruptions which require more efficient production and which lead to instability in agricultural production," France's Agriculture Minister Bruno LeMaire told the United Nations General Assembly in a closed-door session Thursday.

Difference of opinion at G-20 summit over what ails the global economy

Seoul: As a further indication of the fact that the pre-Summit negotiations of the G-20 are not going very smoothly, India has said that “there are no universally agreed upon diagnoses of what ails the global economy.”

Prime Minister Manmohan Singh conveyed this to British Prime Minister David Cameron, and President Philip Calderon of Mexico on Thursday during his bilateral meetings with them. This indicates that it disagrees with the United States' perception that only China's current account and capital account surpluses are to blame for the global economic predicament.

Dr. Singh also met the Prime Minister of Ethiopia in a bilateral meeting.

According to informed sources, the final G-20 communiqué could run to about 70 pages, reflecting the divergent views.

It has been evident that far too many differences of opinion on key issues of who has to do what have emerged and delegates have even been heard to “raise their voices,” according to an informed source.

The main issue is an old one, namely, that the U.S. and its allies do whatever they want to and then expect others to adjust their policies accordingly. The American decision to pump in $600 billion over the next few months has left everyone jumpy as to the consequences for their economies.

Brazil has already spoken out sharply against this. A Chinese official said on television that if America catches a cold it can't look for Chinese medicines.

China has already taken pre-emptive action against capital surges by asking Chinese banks to deposit more money with the Central bank. Many G-20 members have already put sand in the machine so that destabilising dollar inflows do not cause problems for them.

As a result of the U.S. decision, there are not many takers for the latest American proposal which seeks, as it were, to walk on four legs. In a letter to the G-20, U.S. Treasury Secretary Timothy Geithner, along with Tharman Shanmugaratnam, Singapore Finance Ministerand Wayne Swan, Finance Minister of Australia, have spelt out the four things that the world needs to do.

First, they say, global economic growth must be strengthened; second, in a manner of reminiscent of national policies, they say, global growth must also be balanced across countries so that some countries do not grow at a breakneck speed, while others languish; third, the first two objectives require the world to create “a new framework for cooperation to allow exchange rates to reflect economic fundamentals and support needed structural reforms;” and fourth, no protectionism, please.

The first and the last items are the only ones on which there is no disagreement. But the second and third suggestions are causing problems.

Informed sources told Business Line that India is sitting pretty during all these negotiations as it does what economic theory prescribes, namely, run a deficit on the current account which is financed by a surplus on the capital account. This is in contrast to “some countries” which run a surplus on both accounts.

India is, therefore, focusing on development by asking the developed world to invest in infrastructure in the developing countries. This is a relatively non-controversial issue.

However, India is being asked to endorse the currency adjustment suggestions and is looking for alternative and more ambiguous wording.


Source: www.indiaeveryday.com