New Algerian polls will not address protest demands

2021 ◽  
Keyword(s):  
Economic Reforms ◽  
Political Prisoners ◽  
Old Regime ◽  
Foreign Investors ◽  
Content Type ◽  
Protest Movement ◽  
External Borrowing

Significance Demonstrations resumed on February 22, the second anniversary of the ‘Hirak’ movement that ousted President Abdelaziz Bouteflika from office. His successor, President Abdelmadjid Tebboune, has failed to appease the protest movement. On February 21, he announced the release of political prisoners, a partial cabinet reshuffle and the dissolution of parliament in anticipation of elections, but the measures appear to have been ineffective in staving off dissent. Impacts After the elections, Tebboune might have backing for economic reforms that would open the economy to foreign investors. As reserves have fallen to USD43bn, down from USD59bn in February 2020, Algiers may have to resort to external borrowing. Members of the old regime who survived the fall of Bouteflika might decide to fight back if Tebboune challenges their interests too much.

Algerian economic reforms face nationalist pushback

2019 ◽  
Keyword(s):  
Trade Unions ◽  
Economic Reforms ◽  
Net Energy ◽  
Foreign Reserves ◽  
Foreign Investors ◽  
Content Type ◽  
Oil Companies ◽  
State Bureaucracy ◽  
External Borrowing

Significance The budget includes provision for increased external borrowing and granting majority stakes to foreign investors in certain sectors; the hydrocarbons law aims to attract investment from international oil companies through more flexible terms. The administration’s efforts to open the economy to foreign investment and borrowing has provoked strong resistance, both from the popular protest movement and from traditional nationalist bastions, including trade unions and the state bureaucracy. Impacts The new budget envisages a sharp cut in spending and a range of new fees and taxes to limit the deficit. Further borrowing from the central bank and drawing down foreign reserves is unsustainable over the long term. Without a dramatic increase in investment in the sector, Algeria could be a net energy importer within a few years. Even if the current tensions delay proposed reforms, any new administration will confront similar challenges.

Myanmar regulation reform will spur investment

2015 ◽  
Keyword(s):  
Direct Investment ◽  
Economic Reforms ◽  
Business Environment ◽  
Regulatory Environment ◽  
Business Climate ◽  
Foreign Investors ◽  
Content Type ◽  
Effective Administration ◽  
Regulation Reform ◽  
The Government

Subject Myanmar's business environment. Significance The government is instituting measures to improve the business climate and attract foreign direct investment (FDI) into the economy. As part of this effort, on February 24, it instituted the Competition Act. However, while there has been an influx of new FDI, foreign investors remain wary -- largely because of the challenges of navigating Myanmar's old and complex regulatory environment. Impacts Economic reforms could slow in the event of an opposition electoral victory, as the new government gains experience. Improvements to the business environment could be constrained by a faltering or failed ethnic peace process. Regulatory reforms backed up by effective administration could contribute to equitable economic growth.

Algeria brain drain may grow no matter election result

2019 ◽  
Keyword(s):  
Working Conditions ◽  
Brain Drain ◽  
Oil And Gas ◽  
Private Business ◽  
Foreign Investors ◽  
Content Type ◽  
State Sector ◽  
Election Result ◽  
The Government ◽  
External Borrowing

Significance One of the symptoms of the policy drift that has characterised Algeria during the latter part of Bouteflika’s rule has been the steady exodus of qualified professionals towards Europe, the Gulf and North America. The government and major employers such as Sonatrach, the national oil and gas corporation, have recognised the gravity of this problem, but have so far failed to implement effective remedies. Impacts Improving working conditions for state-sector workers will require more investment, leading to external borrowing and increased taxation. Providing more incentives for private business and foreign investors may encourage companies to devote resources to harnessing local skills. The reforms being undertaken within Sonatrach could be a model for other sectors if they succeed in creating a more satisfied workforce.

Bulk and block holders herding behaviour

2018 ◽  
Vol 7 (2) ◽  
pp. 150-171
Author(s):  
Ganesh R. ◽  
Naresh Gopal ◽  
Thiyagarajan S.
Keyword(s):  
Economic Performance ◽  
Institutional Investors ◽  
Design Methodology ◽  
Indian Market ◽  
Foreign Investors ◽  
Content Type ◽  
Industrial Sectors ◽  
Block Data ◽  
Block Holders

Purpose The purpose of this paper is to examine industry herding among the institutional investors and to find whether their herding behaviour is intentional or unintentional. Design/methodology/approach The study uses Lakonishok et al. (1992) model to examine the presence of industry herding behaviour among institutional investors. To determine whether the herding observed is intentional or unintentional, herding measure is regressed with volatility, volume, beta and return. The period of the study is from 1 April 2005-31 March 2015. Findings The findings of the study showed that though institutional investors have herding tendency towards most of the industries, in the overall period industry herding was not significant. The herding found in some industrial sectors was linked to economic performance of those sectors in India during the period of study and hence the herding was unintentional in nature. Research limitations/implications This is the first attempt to study industry herding among institutional investors and their intent in Indian market ever since the country opened its market to foreign investors in a big way. Present study is limited to the use of only bulk/block data instead of the entire trading data for the period. Originality/value This study is the first attempt to investigate industry herding behaviour of institutional investors in the market using their bulk and block trading data. The herding observed in well performing industries has been shown to be unintentional and hence rational. The results indicate that the entry of big institutional investors, including foreign institutions into the Indian market has not destabilised the market by irrational herding.

Investor-State dispute settlement (ISDS) cases and India: affronting regulatory autonomy or indicting capricious state behaviour?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prabhash Ranjan
Keyword(s):  
Public Interest ◽  
Dispute Settlement ◽  
Due Process ◽  
International Investment ◽  
Public Power ◽  
Foreign Investors ◽  
Content Type ◽  
International Investment Law ◽  
Global Context ◽  
State Behaviour

Purpose The dominant narrative in the investor-State dispute settlement (ISDS) system is that it enables powerful corporations to encroach upon the regulatory power of developing countries aimed at pursuing compelling public interest objectives. The example of Phillip Morris, the tobacco giant, suing Uruguay’s public health measures is cited as the most significant example to prove this thesis. The other side of the story that States abuse their public power to undermine the protected rights of foreign investors does not get much attention. Design/methodology/approach This paper reviews all the ISDS cases that India has lost to ascertain the reason why these claims were brought against India in the first place. The approach of the paper is to study these ISDS cases to find out whether these cases arose due to abuse of the State’s public power or affronted India’s regulatory autonomy. Findings Against this global context, this paper studies the ISDS claims brought against India, one of the highest respondent-State in ISDS, to show that they arose due to India’s capricious behaviour. Analysis of these cases reveals that India acted in bad faith and abused its public power by either amending laws retroactively or by scrapping licences without following due process or going back on specific and written assurances that induced investors to invest. In none of these cases, the foreign investors challenged India’s regulatory measures aimed at advancing the genuine public interest. The absence of a “Phillip Morris moment” in India’s ISDS story is a stark reminder that one should give due weight to the equally compelling narrative that ISDS claims are also a result of abuse of public power by States. Originality/value The originality value of this paper arises from the fact that this is the first comprehensive study of ISDS cases brought against India and provides full documentation within the larger global context of rising ISDS cases. The paper contributes to the debate on international investment law by showing that in the case of India most of the ISDS cases brought were due to India abusing its public power and was not an affront on India’s regulatory autonomy.

Even if politicians deal, Lebanon faces a bleak future

2021 ◽  
Keyword(s):  
Foreign Aid ◽  
Rural Areas ◽  
Large Scale ◽  
Economic Reforms ◽  
Financial Strain ◽  
Economic Conditions ◽  
Medium Term ◽  
Content Type ◽  
Global Pandemic ◽  
Food Shortages

Significance The audit and wider structural economic reforms are preconditions for urgently needed foreign aid. Economic conditions in Lebanon are still worsening, with power cuts, food shortages and rising poverty. Impacts A new government would allow reform planning to resume and temporarily stall the decline of the currency. The easing of the global pandemic will somewhat reduce the financial strain, as Lebanon reopens its economy. Soaring poverty rates could provoke large-scale ‘bread riots’ in the coming months. Further devaluation of the currency will make poor Lebanese more dependent on sectarian protection and strengthen patronage. If the situation worsens, sectarian rural areas could revert to warlordism in the medium term.

Domestic matters will determine Mexican foreign policy

2021 ◽  
Keyword(s):  
Foreign Policy ◽  
Energy Policy ◽  
Latin American ◽  
Public Support ◽  
Critical Rhetoric ◽  
Short Term ◽  
Foreign Investors ◽  
Content Type ◽  
International Profile ◽  
Latin American And Caribbean

Significance The move follows Mexico’s hosting of a Community of Latin American and Caribbean States (CELAC) summit last month, and provides an opportunity to expand the country’s international profile. However, AMLO generally disregards foreign policy, except as a tool for advancing domestic interests and building public support. Impacts US relations will continue to dominate foreign policy, despite AMLO’s critical rhetoric about rich nations. In the short term, Mexico will frame its foreign policy around calls for increased access to COVID-19 vaccines. Mexico’s energy policy could become a source of international tension, given its potential implications for foreign investors.

Hong Kong protest movement is not completely dead

2021 ◽  
Keyword(s):  
Hong Kong ◽  
Content Type ◽  
Protest Movement

Headline HONG KONG: Protest movement is not completely dead

African economies face rising risks from reshoring

2021 ◽  
Keyword(s):  
Supply Chains ◽  
Multinational Firms ◽  
Wage Differentials ◽  
Job Creation ◽  
Youth Unemployment ◽  
Foreign Investors ◽  
Content Type ◽  
Skilled Labour ◽  
Near Shore ◽  
The Cost

Significance As the need for cheap and low-skilled labour falls, wage differentials between Africa and other regions will cease to be a major draw for multinational firms and foreign investors, who may seek to re-shore or near-shore operations, triggering job losses and dampening new job creation. Impacts Job losses threaten to exacerbate youth unemployment and discontent in a continent where 70% of the population is under 30. The pandemic has increased the cost and risks of international supply chains. Africa’s tech sector will expand but its spread is regionally uneven and its impact on job creation will be limited for now.

France’s Macron seeks to relaunch economic reforms

2021 ◽  
Keyword(s):  
Government Spending ◽  
Social Care ◽  
Youth Unemployment ◽  
Economic Reforms ◽  
Fiscal Rules ◽  
Left Wing ◽  
Social Unrest ◽  
Content Type ◽  
The Government ◽  
Mandatory Vaccination

Significance Among those policies are measures targeted at youth unemployment and social care for older people, aimed at attracting left-wing support. Most importantly, Macron has committed to relaunching his controversial pension reforms, which triggered widespread social unrest in late 2019 and early 2020. Impacts Mandatory vaccination could trigger protests and legal action against the government. The centre-right Republicans could take support from Macron if they unite around a strong presidential candidate over the coming months. Macron will likely push for looser EU fiscal rules to facilitate more government spending beyond 2022.

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