dimanche 24 avril 2011

Review: Frederic Mishkin, The Next Great Globalization: How Disadvantaged Nations Can Harness Their Financial Systems to Get Rich

While Globalization has been hardly reproached on deepening the disruptions in the financial system such as the case of financial contagion of several crises, Frederic Mishkin explains conversely how it can help to lift poor countries out of poverty if it goes along the lines of his next great globalization vision. He argues that Globalization and economic growth are associated as a result of causality. In fact, countries who have taken advantages of globalization by increasing their financial openness either by developing their trade sector or by motivating the foreign capital flows have witnessed spectacular economic growth. He put forward some historical examples of nations were considered in the past half century as the poorest in the world with low incomes, minimal engagements in international trade of good and services and with subordinate movement of capitals yet become one of the prosperous and richest nations though they increased their economic involvement in the world market. In India and China Globalization has led more than 1bn people out of extreme poverty.
Nevertheless, Mishkin thinks that the right implementation of globalization requires a sound financial system. According to him, the financial system is the key driving force for the Globalization and therefore for the development. He deems that financial system can and should be shaped to the benefit of all, especially the disadvantaged nations most in need of growth and prosperity. In this vein, he draws arguments to caution that wrong institutional policies and governmental mismanagement have impeded the financial globalization of most developing countries. He investigates therefore the financial crises in Mexico, South Korea and Argentina and he elucidates in detail their circumstances, how the authorities reacted to it and how well they have been able to work it out. He believes in fact that these financial crises are relatively "homegrown" and the external links are just "accelerators".
He uses cautiously these arguments to demonstrate how better policies can help them to open up their economies properly to catch up with developed countries. He explains indeed the conditions required for the better functioning of the financial system: effective property rights, efficient legal system, strong financial supervision and regulation which include indeed transparency, banking regulation, accounting practices, corporate governance and so on.
Mishkin if ever think to update this edition, he would discuss the latest global financial crisis, although it stems from a developed state, it might be a concrete example to judge the next great globalization: How well regulated has been the financial system during the late crisis? How well implemented the financial globalization? Whom to blame, the financial system and/or the Globalization?
What Mishkin tells in this book is not exactly new, but he touched an important yet confusing topic. To conclude, this book could be summarized in the few final words: "the next great globalization is financial". But as long as there are countries who believe that wealth can be created without any of the necessary requirements listed in Mishkin's book, it should remain compulsory reading for everyone.

Deceiving what happened today

My beloved horse is called” batteur”, the most quit horse in the stable, a little a bit aged, but so so sensitive. I discovered that great sensitivity since my first meeting with him, his immediate strange escape when I fell down akin to other few novice trainees, the poor, it was like he felt guilty.
So Excited and in my highest spirits, I was carrying around the square slowly, I was trying as much as I can to avoid his gallops, I am not yet used to otherwise I turn into an out of control body.
The trainer was cautiously watching me out, alerted, shouting blames triple in a while, but supporting once in a while. Unexpectedly as usual, the director of the club came to check out the course. He saw me from afar, but his looks were wicked, I swear I felt it. Then he called my trainer.
My trainer left me alone, hell, I felt unconfident. I was anxious...No body watching me..
A quarter-hour, this rude colonel took with my trainer and left. The latter finally appeared, I saw him coming I breathed a sigh of relief...He came back but vexed?! What happened I asked. He said disgracefully that his boss doesn’t like my scarf! And I should uproot it to attend the riding course.
I was shocked, I started telling him off with four heads and four voices, how come he hell dares it! In such current circumstances? How come he has no fear but proud to say it? Certainly I can’t find only two explanations:
Either he is a stupid extremist, unconsciously and without vision , he gives irrational orders... Or, he needs to leave his work but he is unable yet enforced to stay, so he is so intelligent using this way, to topple him out? And then to leave him in peace??

lundi 11 avril 2011

What I have seen to date

What I have seen to date, ambivalent stories and ambivalent people, I am becoming ambivalent too…face the gray propagandas…fog around and dust on eyes.
What I have seen to date, heroic people of me, incredibly were unified, strappingly were unanimous to topple the so hated benalist regime. I won’t say Benali, because if he has succeed to seed his grimy power alongside his oppressed policies which has reached the epidemic level, that he didn’t it alone, a big clan and big heads of lobbies have lend the bighearted hand. I didn’t expect that so fast he will be collapsed. It warms the hearts but this event devastates me from time to time because I knew if something good or bad goes so fast, that means something out of the blue is waiting.
More impressed, the revolutions started to be contagious, all over the Arab world. Riots started to rise one after another, enthusiastic words you hear: who’s next? Any dictator there? Any corruption exists there? Let’s dismiss it.
I will not take much talking about our revolution, everybody knows, what we don’t know, its fruits…
Results are still blurred…
Yet, The gloomy face of revolution, what I have seen to date, and please do not reveal what I am coming to say to anyone, my people are no longer unanimous, my people have been split into small pieces, shutttt..it seems that again we started a new puzzle, New issues…I can see bodies playing the batman, others looking for abusing from liberty as much as they can, it seems the last chance that will not last…so we hell do as much as we hell can…we do abuse. Yes, it is easy and funny and the best time ever.
The journalists, stars sparkling with juicy readings…
The employees, poor victims with unsatisfactory payroll, more impatient than jobless…
Democrats, VIP with pitiful islamiphoby... indirect insights of exclusions…wasn’t opted by their dictator formers?
Businessman, flourishing benali days, oops!
In brief, all are vigilant, vigilant sometimes to take advantage wherever there is a piece of bread.