Tag Archives: domino

After Greece & China, the next domino to fall: Latin America

The next domino to fall: Latin America

Greece needs a bailout and China’s stock market is in meltdown mode. But the global economy has another rising red flag: Latin America.

  @CNNMoney

Every major Latin American economy is slowing down or shrinking. The World Bank predicts this will be Latin America’s worst year of growth since the financial crisis. As if that’s not dire enough, the world’s two worst performing stock markets are in the region as well.

And things could get even uglier later this year for Latin America, a region which is double the economic size of India.

“The weakness in Latin America is reflecting the weaker global outlook,” says Win Thin, senior economist at Brown Brothers Harriman.

The ‘most vulnerable’: After years of checkered progress, Latin America is the “most vulnerable” region to China’s sputtering economy and market meltdown, experts say. It’s become a trade battleground area between the United States and China.

China is the biggest trade partner to many Latin countries, but the U.S. has tried to reassert its presence in recent months. Still, China’s sluggish growth is pulling Latin America down with it.

“We’re expecting very, very weak growth,” says Eugenio Aleman, senior economist at Wells Fargo Securities. “Brazil is in bad shape. Argentina isn’t much better. Chile has slowed down to a trickle…Peru is slowing down considerably.”

That’s just the beginning. Venezuela is arguably the world’s worst economy with sky-high inflation. Next door, Colombia has the world’s worst stock market this year. Its index is down 13% so far this year. The second worst is Peru, down 12.5%. By comparison, America’s S&P 500 is flat this year. (Argentina has the world’s best stock market, but that’s more a reflection of politics than economics).

While many are focused on Greece right now, “a deeper downturn in China remains the key external risk for Latin America,” says Neil Shearing, chief emerging market economist at Capital Economics.

The big problem: The three “C’s” are weighing down Latin America: China, commodities, and currency.

Read more » CNN
Learn more » http://money.cnn.com/2015/07/09/news/economy/warning-sign-latin-america-economy/index.html

Balochistan: endless despair —Mohammad Akhtar Mengal

Inattention of the international community will further aggravate the current instability and a rapidly developing Darfur and Somalia-like situation in Balochistan will have serious implications for long-term peace and stability in the region.

The appalling poverty, desolation, unemployment, worsening health conditions, malnourishment, tribal in-fighting, mounting corruption, support for drug barons and religious fundamentalism in historically peaceful and secular-oriented Baloch society are the domino effects of systematic policies imposed by the Islamabad super-establishment
Although the British Raj ended in 1947, under Pakistan’s ethnically structured and politically over-centralised state, the concept and practice of second-class citizenry remains a common practice by the dominant group against the underprivileged people.
Initially, the East Pakistani population was the prime victim of this policy of systematic second-class citizenry; they were discriminated against because of their ethnicity, origin, and political aspirations. They were denied legal rights, civil rights, political rights and overall economic opportunities in a country that came into being through the extraordinary contribution of the Bengali political and intellectual elite.
Rebuffing West Pakistan’s neo-colonial policies, the Bengalis took a non-violent path to change their destiny. They voted in favour of the Awami League and sent a clear signal to the power base in Lahore, GHQ and Islamabad that the days of institutionalised slavery are over. The dominant civil-military establishment’s hawkish response to Bengal’s political verdict was ruthless, which resulted in millions of deaths, destruction and separation of East Pakistan.
After the fall of Dhaka, the same hawkish elite apprehended another opportunity to continue its policy of second-class citizenry, and this time the Baloch people became a soft target. Balochistan was wealth-looted, people-killed, land-grabbed for strategic use and its people were systematically kept underdeveloped.
Furthermore, the hawkish elite and ethnically dominant policy-making institutions imposed new methods to further suppress the ‘Baloch second-class citizenry’. Thousands of people were recruited in Frontier Corps (FC) from FATA, Punjab and other provinces, denying the right of employment to the locals. The same FC established hundreds of check posts during the 1980s to date, just to restrict people’s social, economic and development movements.
The appalling poverty, desolation, unemployment, worsening health conditions, malnourishment, tribal in-fighting, mounting corruption, support for drug barons and religious fundamentalism in historically peaceful and secular-oriented Baloch society are the domino effects of systematic policies imposed by the Islamabad super-establishment.

Continue reading Balochistan: endless despair —Mohammad Akhtar Mengal