Brazil elections cast doubt on Correios privatisation

2021 ◽  
Keyword(s):  
Content Type ◽  
Finance Minister ◽  
Cast Doubt ◽  
Lower Chamber ◽  
The Government ◽  
Broad Consensus

Significance Since taking office, President Jair Bolsonaro has pledged a series of privatisations but with few advances to date. Finance Minister Paulo Guedes has recently stressed that the government wants to deliver the privatisation of Correios in 2022. In August, the Lower Chamber approved privatisation, but the Senate has postponed a vote on the issue. Impacts There will be no broad consensus among Brazilians in favour of privatising Correios. The benefits of the Correios privatisation remain unclear, undermining arguments in its favour. The government will try to accelerate privatisations as one of the pillars of its liberal economic agenda ahead of elections.

The South African public service wage bill deadlock in 2021: living on the edge

2021 ◽  
Vol 11 (4) ◽  
pp. 1-15
Author(s):  
Marianne Matthee ◽  
Albert Wöcke
Keyword(s):  
Fiscal Policy ◽  
Learning Outcomes ◽  
South African ◽  
Public Service ◽  
Subject Area ◽  
The South ◽  
Content Type ◽  
Academic Level ◽  
Finance Minister ◽  
The Government

Subject area Macro-Economics. Study level/applicability Undergraduate and MBA. Case overview The COVID 19 pandemic-related restrictions devastated South Africa’s economy in 2020 and although the restrictions were generally less damaging than in 2020, the government had to budget for vaccinations and rebuild the economy. Public service unions had just announced that they were demanding an increase of 4% above inflation for their members and that they were preparing for a strike. They were bitter about the fact that the South African Government had withdrawn from the last year of a three-year wage agreement in February 2020 and their members had not received an increase for the two years. These demands and Finance Minister Mboweni’s response to them had to consider the structural and cyclical impact on the fiscus and economy. Expected learning outcomes The learning outcomes are as follows: understand the general objectives of fiscal policy and stakeholders’ interests; understand the tradeoffs in fiscal policy and the implications of taking a position; and make recommendations based on reasoned judgements about those recommendations. Complexity academic level Undergraduate and MBA level courses on Macro Economics. Supplementary materials Teaching notes are available for educators only. Subject code CSS 10: Public Sector Management.

Mozambique party politics may trump national interest

2021 ◽  
Keyword(s):  
Economic Crisis ◽  
Debt Crisis ◽  
Party Politics ◽  
Security Sector Reform ◽  
Security Sector ◽  
Sector Reform ◽  
Content Type ◽  
The Government ◽  
Fiscal Pressure ◽  
Broad Consensus

Significance There is broad consensus that security sector reform is necessary, but lingering concern that the government lacks a coherent plan, and will end up being distracted by other issues. Impacts The economic crisis resulting from the debt crisis will continue to put the government under severe fiscal pressure. Small amounts of gas should begin to be exported in 2022, but uncertainty over the timelines for larger projects will persist. Mozambique’s relations with neighbours should continue to improve over the immediate term.

Power crisis to hamper Zambia development prospects

2015 ◽  
Keyword(s):  
Tax Avoidance ◽  
Hydroelectric Power ◽  
Fuel Price ◽  
Content Type ◽  
The Sustainable Development ◽  
Growth Environment ◽  
Finance Minister ◽  
Price Hike ◽  
Development Goals ◽  
The Government

Subject Outlook for Zambia's economy. Significance Finance Minister Alexander Chikwanda last month presented revisions to the 2015 budget. They reflected the cooling growth environment, lower-than-expected tax revenues and rising borrowing costs. Droughts have exacerbated these vulnerabilities by pressuring Zambia's hydroelectric power supplies. Economic prospects are weakened ahead of elections scheduled for September 2016. Impacts Riots that took place in the main tourist hub Livingstone over the fuel price hike could hit visitor numbers if repeated. Revenue woes will harden the government's stance on tax avoidance, raising tensions with miners. The government may use the Sustainable Development Goals summit to press for greater donor aid, citing its revenue crunch.

Zimbabwe faces uphill task normalising donor relations

2015 ◽  
Keyword(s):  
External Debt ◽  
Job Creation ◽  
Development Plan ◽  
Content Type ◽  
Finance Minister ◽  
Donor Relations ◽  
Labour Costs ◽  
The Government ◽  
Economic Outlook

Subject Zimbabwe economic outlook. Significance On November 26 Finance Minister Patrick Chinamasa presented the 2016 budget articulating the government's IMF-backed plan to clear the backlog of external debt arrears to international creditors. The aim is to normalise relations with Western donors after 15 years of isolation. The government faces a deepening employment crisis, an unfunded development plan and deflationary risks. Impacts The Labour Amendment Bill adopted in August will raise labour costs and discourage job creation. Some deals signed during Xi's visit such as funding for fibre optic broadband may improve long-term competitiveness. However, others such as an agreement for a new Chinese-built parliament will add to the debt load.

South African mining could ride out lockdown period

2020 ◽  
Keyword(s):  
South African ◽  
Power Supply ◽  
Economic Impacts ◽  
Policy Uncertainty ◽  
Short Term ◽  
Community Based ◽  
Content Type ◽  
Financial Position ◽  
Cast Doubt ◽  
The Government

Subject South African post-lockdown mining. Significance Three weeks into its COVID-19-related lockdown, the government allowed certain mines to ramp up to 100% capacity (coal and opencast operations) and others to 50% (underground operations), making it the first non-essential industry allowed to resume full or partial operations. This particularly benefits smaller, more marginal mines, as larger ones were already in a relatively resilient financial position. However, more fundamental issues continue to weigh on the industry, such as costly and erratic power supply and ongoing policy uncertainty. Impacts An extended lockdown and the economic impacts of the COVID-19 crisis could see a rise in community-based protests interrupting operations. A surge in COVID-19 infections at mines and subsequent closures will cast doubt over the feasibility of the industry's short-term strategy. The growing financial stress on workers may prompt more militant demands during scheduled coal wage negotiations later this year.

Economic crisis will sustain unrest in Zimbabwe

2016 ◽  
Keyword(s):  
South African ◽  
Economic Crisis ◽  
Credit Rating ◽  
Civil Servants ◽  
Content Type ◽  
High Unemployment ◽  
Finance Minister ◽  
Fund Development ◽  
The Government ◽  
Sovereign Credit Rating

Significance Discontent over President Robert Mugabe's mismanagement of the economy is deepening, particularly over high unemployment and severe cash shortages, which have caused the government to delay paying civil servants' salaries. Impacts Pretoria's demands that Harare drop its restrictions on South African imports will likely increase bilateral tensions. Smugglers will take advantage of the region's porous borders to circumvent these rules, eg by routing goods via Mozambique. The mines and minerals amendment bill, which requires mining firms to list on the local bourse, will likely deter investment. Tensions between Finance Minister Patrick Chinamasa and leftist ministers could result in further policy reversals. Plans to gain a sovereign credit rating and issue Eurobonds to fund development will remain unrealised, at least for several years.

India backs blockchain but adoption will be cautious

2018 ◽  
Keyword(s):  
Asset Management ◽  
Trade Finance ◽  
Content Type ◽  
Customer Data ◽  
Finance Minister ◽  
Blockchain Technology ◽  
Reserve Bank ◽  
Asset Class ◽  
The Government ◽  
Foreign Exchanges

Subject Blockchain adoption in India. Significance On April 22 the Reserve Bank of India (RBI) issued a directive ordering all cryptocurrency accounts on Indian exchanges to close by July. Despite this, on May 16 Indian information technology giant Infosys, in collaboration with seven major banks, launched a blockchain-driven trade finance initiative. In his budget speech, Finance Minister Arun Jaitley said that the government will “explore …blockchain technology …for ushering in digital economy”. Impacts The ban on trading cryptocurrencies on Indian exchanges will drive investors to foreign exchanges rather than away from the asset class. The RBI ban on entities under its influence engaging in services relating to cryptocurrencies will slow blockchain adoption. Tests of blockchain in trade finance, 'know your customer' data and non-performing asset management will extend to other applications. Indian cities including Vizag in Andhra Pradesh are leading in adopting blockchain, supporting regional development.

Moldovan government will prioritise Western assistance

2021 ◽  
Keyword(s):  
Public Sector ◽  
Budget Deficit ◽  
Prime Minister ◽  
Governance System ◽  
Content Type ◽  
The Public ◽  
Finance Minister ◽  
The Creation ◽  
The Government ◽  
The Imf

Significance The government is headed by Prime Minister Natalia Gavrilita, a leading PAS figure and former finance minister. This completes the creation of a strong functioning governance system under President Maia Sandu and her PAS allies. Impacts The budget deficit will encourage the government to accept conditions set by the IMF and EU. Unprecedented political synergies should foster swift, more cohesive reforms. A comprehensive campaign against corruption will be disruptive for the public sector. Finding competent, uncorrupt people to take senior positions and staff institutions will be a challenge.

Mining deals should boost Sierra Leonean government

2021 ◽  
Keyword(s):  
Public Funds ◽  
Revenue Generation ◽  
Content Type ◽  
Sierra Leonean ◽  
Finance Minister ◽  
The Government

Significance However, with arbitrators ruling in favour of SL Mining, the government was left with little choice but to negotiate a deal that will see mining restart at the Marampa mine. Nevertheless, Marampa's revenues will be welcomed by newly appointed finance minister, Denis Vandi, who was a surprise choice in President Julius Maada Bio’s April cabinet reshuffle given that he was initially named as a person of interest in a public funds corruption inquiry. Impacts The National Revenue Authority is set to exceed annual revenue generation targets for 2021. Investigations by the Anti-Corruption Commission into former President Ernest Bai Koroma remain open. The president’s ability to influence key ministries have been strengthened by the latest cabinet reshuffle.

Polish government will seek to close pro-opposition TV

2021 ◽  
Keyword(s):  
Rule Of Law ◽  
European Economic Area ◽  
Foreign Investors ◽  
Content Type ◽  
European Economic ◽  
Economic Area ◽  
Lower Chamber ◽  
Law And Justice ◽  
The Government ◽  
Polish Government

Significance Law and Justice (PiS) has passed legislation through the Sejm, parliament’s lower chamber, which restricts the stakes companies outside the European Economic Area (EEA) may hold in Polish broadcasters. It is widely understood as aimed at private news channel TVN24, which is traditionally pro-Civic Platform (PO) and takes a stance largely critical of the current government. Impacts The bill’s passage will weaken further Poland’s rule of law and discourage foreign investors from operating there. The bill will sour Polish-US relations, but the government does not consider this to be crucial. If PiS manages to close the most important private media, its next step will be to attack news and analysis published by independent NGOs.

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