International Economics: IB Economics
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International Economics: IB Economics
A collection of articles relating to the 'international' elements of Economics and relating to IB, Pre-U and A-Level Economics.
Curated by Graham Watson
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Why China's Economy is Finally Slowing Down - YouTube

This excellent Wendover clip looks at why the Chinese economy is slowing, as a result of its housing crisis and the state of its property market. 

Graham Watson's insight:

An excellent look at how demographic change has altered the Chinese housing market, and the switch from state-provided housing to private sector provision. 

 

It's a lengthy clip but gives a very good overview of the past 30 years of Chinese economic history and the centrality of the housing market to both its rise and, potentially, its ongoing fall. 

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France to pay nearly €10bn to fully nationalise EDF | EDF Energy | The Guardian

France to pay nearly €10bn to fully nationalise EDF | EDF Energy | The Guardian | International Economics: IB Economics | Scoop.it
Government seeks to shore up domestic energy supplies amid European crisis
Graham Watson's insight:

It's interesting to see how the French government are looking to resolve the issue of energy security. The government are buying the remaining 16% of EDF that the don't already own and are renationalising the sector. It's how they are keeping energy prices low, relative to the UK, but does this represent a good use of government money - to be effectively subsidising the sector. 

 

And are there other factors about private sector ownership that make keeping the electricity sector in private hands a more efficient decision? I suspect that the case for this is now harder to make than it was a few years ago. 

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Supporting Private Sector Development in Conflict-Affected and Fragile Countries

Supporting stability and growth in these environments is a top priority for IFC. As the largest global development institution focused exclusively on the private sector in developing countries, IFC has committed to delivering 15-20 percent of its program to Fragile and Conflict-Affected countries and very low-income countries by 2030. 

Graham Watson's insight:

This is a fascinating clip - Paul Collier highlights the challenges that civil war, and fragile democratic states, represent to economic development. It seems that the International Finance Corporation is concerned about this and wants to support private sector businesses in this sort of environment. 

 

It seems that social capital is the key: early, and strategic engagement with the private sector, and establishing strong relationships might allow for the private sector to overcome some of these challenges.

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UK aid should not fund private hospitals in developing countries, says Oxfam | Healthcare industry | The Guardian

UK aid should not fund private hospitals in developing countries, says Oxfam | Healthcare industry | The Guardian | International Economics: IB Economics | Scoop.it
Development charity says patients denied treatment or held hostage until fees paid in private facilities in India and Kenya
Graham Watson's insight:

The ethics of aid is in the spotlight with the news that development charities feel that it's unethical that some of the government's aid budget goes on private hospital fees, with it being alleged that some of the hospitals concerned. notably in Kenya and India, are private sector organisations where the state has taken a stake. 

 

As a result, it's felt that some of the money is supporting private sector profit rather than delivering equitable healthcare outcomes. 

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Can new lenders save Brazil’s struggling farmers? | FT Food Revolution

Brazil is an agricultural powerhouse, but up to 80 per cent of the farms are small, family-run businesses, and a significant number are struggling. High interest rates, an outdated, over-complicated credit system, and a lack of bank branches in rural areas have led to a loans crisis for those most in need. The private sector is filling some of the holes, but critics say much more needs to be done.

Graham Watson's insight:

This FT clip looks at the rise of Brazil as an agricultural powerhouse, as well as the fact that small-scale farms - which represent 80% of all farms, and produce 23% of output - might be missing out.

 

They only receive 14% of all investment in the sector, and this means that they are under-represented in this regard, imperilling them. The clip looks at how the private sector has stepped in to support them in the absence of the proper support from the financial sector. Even so, this lack of appropriate investment has increased inequality and increased poverty. 

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