1 US v/s China: Who will own the future? (The Guardian) People often look at America and see a global super-power literally living on borrowed time - much of it borrowed, incidentally from China, which for all these years has been buying US bonds to soak up its massive cash reserves (now an astonishing $3 trillion). For the first time in the post-war era, there are fewer jobs in the private sector than 10 years ago. Real wages for the average US worker are no higher than in the 1970s. And the share of total income taken by the top 1% of taxpayers has risen from 10% to 21% between the 1970s and 2008. And yet there are signs that America's private sector is even now reinventing itself, yet again - just as it has so many times before.
The current account deficit is down, exports are up, and productivity has taken off. That could help sustain America's place in the global economy long-term, even if it produces a miserable jobs market right now. When macroeconomists get together to talk about China and America, there's always a risk it will end up in a brawl over who has the biggest structural imbalances. (Piece of advice: never go to the pub with a macroeconomist who's not interested in sport.)
There are also doubts whether any of China's official statistics bear any relation to reality. There's a line going around the City that "China's GDP is the next Libor" - a crucial number for the world economy that turns out to be, er, somewhat fictional. Economist Paul Ormerod is long-term optimistic about America, partly because the US does seem a lot better at innovating and creating powerful networks. But not without sizeable reservations. He even thinks countries such as Greece and Spain could be facing an era of almost unprecedented "de-development", with the crisis and its aftermath reversing decades of economic progress.
2 How Finland keeps its head above euro crisis (The Guardian) Finland – home of reindeer, pickled fish and Nokia – is now the only eurozone country with a stable triple-A credit rating, according to Moody's. What is it about Finland? It is a big country, almost as large as Germany, but with a population of just 5.3 million – or just 16 people for every square kilometre. The economy is not all mobile phones and forestry. Finland is also known for its metals, engineering and electronics industries, and exports account for a third of GDP. Income per capita is among the highest in western Europe and the country is celebrated for its generous welfare state.
Moody's said that while Finland would not be immune to the eurozone crisis, it had "strong buffers which differentiate it from the other AAAs". Among these were the fact it has no debt on a net basis. The IMF estimates Helsinki will collect taxes and other revenues of €105bn this year, compared with €101bn of government debt. Finland has a small banking system focused on domestic customers, as well as "limited exposure to, and therefore relative insulation from, the euro area in terms of trade", notes Moody's.
3 Sexting now a dating ritual for youth (San Francisco Chronicle) Sexting — texting naked or sexually suggestive photos of yourself – "is rapidly becoming part of the dating process" for young adults, according to a report by University of Michigan researchers. The rapid spread of smart phones has increased the overall number of photos being sent by text or e-mail. But that technological advance has also increased the number of sexts, researchers said. The Michigan study involving 3,447 men and women aged 18 to 24 found that 30% had sent a sext and 41% had received one.
4 The jobless won't forget your help (The New York Times) Unemployment is a time of stress, uncertainty and worry. When you’re in a position of such vulnerability, and someone extends a hand to you, it’s a moment you never forget. It stirs emotion, cements relationships and creates a debt of gratitude that would make any marketer or networker envious. And that debt of gratitude translates into real business value. For companies that hire the unemployed, it means bringing people aboard who are already motivated to give back. These workers truly appreciate the value of a job and are committed to performing for the business that throws them a lifeline.
For people who assist the unemployed, it means forging a business relationship that’s far stronger, more genuine and lasting than the superficial connections that comprise most people’s professional networks. These contacts can prove beneficial to you in the future — for gaining access to new business opportunities, for overcoming your own possible bout with unemployment or for other challenges that you may encounter.
5 Songs and shame to restore India's gender balance (Dawn) The no-frills maternity ward in Nawanshahr district public hospital offers a rare sight in India; parents cooing over newborn girls — lots of them. In 2004, Nawanshahr in the northern state of Punjab was notorious for its abysmal sex ratio, recording just 795 female births for every 1,000 male births annually. The last eight years have witnessed a radical turnaround with Nawanshahr recording 949 female births for every 1,000 male births in 2011, just shy of the naturally occurring rate of 952:1,000.
The striking success in restoring the gender balance has been built on a twin-pronged strategy of strict — and, some critics argue, intrusive — monitoring of pregnancies and a colourful, grassroots awareness-raising campaign. Jaspal Singh Gidda, who heads the Upkar Coordination Society, a local NGO which works with the district administration, says there is an attempt to publicly shame couples who opt for abortions on gender grounds. Nawanshahr’s success has brought it national attention, but some activists are unsure that the means justify the end.
6 Roadside barbers v/s Maruti workers (The Wall Street Journal) Munnilal Sharma, a roadside barber in Mumbai, earns about 6,000 rupees to 8,000 rupees a month. Compare this to workers’ wages at Maruti Suzuki India’s troubled auto plant in Manesar in the state of Haryana. A week ago, one manager died after violence broke out at the plant, which is now under lockdown. One of the main grievances of the workers’ union is reportedly the use of contract labor, which the union believes takes away well-paying jobs from its members. A unionized worker on the factory floor reportedly makes 17,000 rupees to 18,000 rupees, while a contract worker makes 7,000 rupees to 8,000 rupees,say reports.
But what do the problems in Manesar have to do with a local barber? They are two sides of the same coin, which is the dysfunctional Indian labor market. The underlying reason for the friction between union and management at the Maruti plant stems from the need to hire contract workers. And the reason for that is rigid labor laws, a hangover from the period of central planning and the License Permit Raj. These laws make it essentially illegal to fire a worker once hired, which makes it virtually impossible for manufacturing units such as an auto plant to adjust its workforce seasonally in response to changing market conditions.
The current account deficit is down, exports are up, and productivity has taken off. That could help sustain America's place in the global economy long-term, even if it produces a miserable jobs market right now. When macroeconomists get together to talk about China and America, there's always a risk it will end up in a brawl over who has the biggest structural imbalances. (Piece of advice: never go to the pub with a macroeconomist who's not interested in sport.)
There are also doubts whether any of China's official statistics bear any relation to reality. There's a line going around the City that "China's GDP is the next Libor" - a crucial number for the world economy that turns out to be, er, somewhat fictional. Economist Paul Ormerod is long-term optimistic about America, partly because the US does seem a lot better at innovating and creating powerful networks. But not without sizeable reservations. He even thinks countries such as Greece and Spain could be facing an era of almost unprecedented "de-development", with the crisis and its aftermath reversing decades of economic progress.
2 How Finland keeps its head above euro crisis (The Guardian) Finland – home of reindeer, pickled fish and Nokia – is now the only eurozone country with a stable triple-A credit rating, according to Moody's. What is it about Finland? It is a big country, almost as large as Germany, but with a population of just 5.3 million – or just 16 people for every square kilometre. The economy is not all mobile phones and forestry. Finland is also known for its metals, engineering and electronics industries, and exports account for a third of GDP. Income per capita is among the highest in western Europe and the country is celebrated for its generous welfare state.
Moody's said that while Finland would not be immune to the eurozone crisis, it had "strong buffers which differentiate it from the other AAAs". Among these were the fact it has no debt on a net basis. The IMF estimates Helsinki will collect taxes and other revenues of €105bn this year, compared with €101bn of government debt. Finland has a small banking system focused on domestic customers, as well as "limited exposure to, and therefore relative insulation from, the euro area in terms of trade", notes Moody's.
3 Sexting now a dating ritual for youth (San Francisco Chronicle) Sexting — texting naked or sexually suggestive photos of yourself – "is rapidly becoming part of the dating process" for young adults, according to a report by University of Michigan researchers. The rapid spread of smart phones has increased the overall number of photos being sent by text or e-mail. But that technological advance has also increased the number of sexts, researchers said. The Michigan study involving 3,447 men and women aged 18 to 24 found that 30% had sent a sext and 41% had received one.
4 The jobless won't forget your help (The New York Times) Unemployment is a time of stress, uncertainty and worry. When you’re in a position of such vulnerability, and someone extends a hand to you, it’s a moment you never forget. It stirs emotion, cements relationships and creates a debt of gratitude that would make any marketer or networker envious. And that debt of gratitude translates into real business value. For companies that hire the unemployed, it means bringing people aboard who are already motivated to give back. These workers truly appreciate the value of a job and are committed to performing for the business that throws them a lifeline.
For people who assist the unemployed, it means forging a business relationship that’s far stronger, more genuine and lasting than the superficial connections that comprise most people’s professional networks. These contacts can prove beneficial to you in the future — for gaining access to new business opportunities, for overcoming your own possible bout with unemployment or for other challenges that you may encounter.
5 Songs and shame to restore India's gender balance (Dawn) The no-frills maternity ward in Nawanshahr district public hospital offers a rare sight in India; parents cooing over newborn girls — lots of them. In 2004, Nawanshahr in the northern state of Punjab was notorious for its abysmal sex ratio, recording just 795 female births for every 1,000 male births annually. The last eight years have witnessed a radical turnaround with Nawanshahr recording 949 female births for every 1,000 male births in 2011, just shy of the naturally occurring rate of 952:1,000.
The striking success in restoring the gender balance has been built on a twin-pronged strategy of strict — and, some critics argue, intrusive — monitoring of pregnancies and a colourful, grassroots awareness-raising campaign. Jaspal Singh Gidda, who heads the Upkar Coordination Society, a local NGO which works with the district administration, says there is an attempt to publicly shame couples who opt for abortions on gender grounds. Nawanshahr’s success has brought it national attention, but some activists are unsure that the means justify the end.
6 Roadside barbers v/s Maruti workers (The Wall Street Journal) Munnilal Sharma, a roadside barber in Mumbai, earns about 6,000 rupees to 8,000 rupees a month. Compare this to workers’ wages at Maruti Suzuki India’s troubled auto plant in Manesar in the state of Haryana. A week ago, one manager died after violence broke out at the plant, which is now under lockdown. One of the main grievances of the workers’ union is reportedly the use of contract labor, which the union believes takes away well-paying jobs from its members. A unionized worker on the factory floor reportedly makes 17,000 rupees to 18,000 rupees, while a contract worker makes 7,000 rupees to 8,000 rupees,say reports.
But what do the problems in Manesar have to do with a local barber? They are two sides of the same coin, which is the dysfunctional Indian labor market. The underlying reason for the friction between union and management at the Maruti plant stems from the need to hire contract workers. And the reason for that is rigid labor laws, a hangover from the period of central planning and the License Permit Raj. These laws make it essentially illegal to fire a worker once hired, which makes it virtually impossible for manufacturing units such as an auto plant to adjust its workforce seasonally in response to changing market conditions.
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