Threats to the global economy do not come much bigger than a trade war. Tariffs helped turn a stock market crisis and recession into the Great Depression back in the 1930s, scarring the world economy for decades to come.
The key lesson for the best part of the past century was that prosperity flows when borders are open to trade.
So far the trade spat between the US and China has not tipped the world into crisis. That is not guaranteed to continue: IMF chief Christine Lagarde this week warned it is “a threat for the global economy.”
The trade war started at a time of strong economic growth, and central banks around the world have responded with economic stimulus measures, dampening the conflict’s impact.
However, global growth has weakened since then and the current fragile stability could let much of the world avoid a recession, if there are no more shocks.
Yet that could change this week. After months of negotiations, the US looks set to raise more tariffs on Chinese imports. Continue reading China, United States Trade War: Threat to global economy
A quarter of a century ago, in Rwanda, you stood a higher chance of getting flowing blood instead of running water if you opened a tap. That is, of course, if you were in one of the few areas that had access to piped water infrastructure. Elsewhere, poverty, pain and disease festered and the horror of death lurked, awaiting to claim the next victim. And there were many of them! Many stories of the suffering endured during this period are yet to be told in full, and many more will never be told in full for they bring into question the entire concept of humanity itself.
Regardless, a quarter of a century ago, a people decided to defy death, took a stance against an ongoing genocide and fought for freedom, dignity and prosperity. The Rwanda that is familiar in popular imagination today – environmentally clean, economically growing and politically stable – is the result of the sum of all the people who have chosen to be makers of their own history, not bystanders singing redemption songs to a selfish and disinterested international audience. It is a country that has vowed to never again go through the pain and suffering it did, losing over one million lives to ethnic chauvinism. It is also a country that, in building the future it desires, has come under severe criticism at best, and under serious attacks, some of which are – in fact – a threat to national security. Continue reading Rwanda’s development model wouldn’t work elsewhere in Africa. True or false?
“54 countries with a population no less than one billion marks the creation of the world’s largest economic and free trade area,” International Trade Centre Director, Arancha Gonzalez reacts as the African Continental Free Trade Area is born Continue reading Africa’s historic Free Trade Agreement signed – Kigali, Rwanda
Both the market exuberance and trepidation can be traced back to the Federal Reserve’s flip-flop on whether to raise interest rates. Analysts say the Fed’s U-turn shows that the world’s top economic minds see danger.
Global growth is slowing to a halt in much of Europe and Japan; and Canada, Australia and New Zealand may be headed into a recession this year. Central banks and international aid institutions like the IMF are issuing warnings and writing down growth expectations around the globe.
Continue reading What are economists saying about unsettling global currency markets and the prospects for economic slow down?
London (CNN Business)The world’s biggest metal exchange is changing its rules to combat child labor, money laundering, bribery and corruption.
The London Metal Exchange will require producers that operate in high-risk and conflict zones to demonstrate that their products are responsibly sourced by 2022.
It’s a major policy shift for the 142-year-old exchange, which until now certified metals for trade only by evaluating qualities such as their shape, weight and chemical composition. Now it’s trying to ensure that the metal that ends up in cars or electronic devices is ethically sourced. Continue reading London Metal exchange is getting serious about child labour and conflict