1 ‘Half of global wealth held b 1%’ (Larry Elliott
& Ed Pilkington in The Guardian) A study has found that – on current trends
– by next year, 1% of the world’s population will own more wealth than the
other 99%. Ahead of this week’s annual meeting of the World Economic Forum in
the ski resort of Davos, the anti-poverty charity Oxfam said it would use its
high-profile role at the gathering to demand urgent action to narrow the gap
between rich and poor.
The charity’s research shows that the share of the
world’s wealth owned by the best-off 1% has increased from 44% in 2009 to 48%
in 2014, while the least well-off 80% currently own just 5.5%. Oxfam added that
on current trends the richest 1% would own more than 50% of the world’s wealth
by 2016.
Winnie Byanyima, executive director of Oxfam
International said the increased concentration of wealth seen since the deep
recession of 2008-09 was dangerous and needed to be reversed. Oxfam made
headlines at Davos last year with a study showing that the 85 richest people on
the planet have the same wealth as the poorest 50% (3.5 billion people). The
charity said this year that the comparison was now even starker, with just 80
people owning the same amount of wealth as more than 3.5 billion people, down
from 388 in 2010.
2 Uber promises 50,000 jobs in Europe (BBC) The
chief executive of the online taxi-sharing firm Uber has said he wants to make
2015 a year of rapid expansion in Europe. Travis Kalanick said in Munich that
Uber could create 50,000 jobs as part of a "new partnership" with
European cities.
Fast-expanding Uber has drawn criticism across the
world from regulators and established taxi operators. Uber, which helps users
summon taxi-like services on their smartphones, started four years ago and now
operates in 250 cities worldwide. The San Francisco start-up is valued at $40bn
(£25.5bn), based on the latest fundraising from investors.
But critics have accused Uber of flouting
competition rules and of not carrying out sufficient safety checks on drivers
and their vehicles. Some of the criticisms of Uber have provoked a combative
response from the company, with Mr Kalanick a frequent critic of the red-tape
and regulation that he says cities use to protect the interests of entrenched
taxi firms.
Uber is working with governments on new rules to
ensure public safety is protected, choice and competition thrive and economic
growth and tax revenue rise, the chief executive said. And he said that city
authorities that free up Uber's service would see the creation of thousands of
jobs and higher tax revenues. "At the end of 2015, if we can make these
partnerships happen, we create 50,000 new EU jobs," Mr Kalanick said.
3 Africa must adapt or die (Martn Davies in
Johannesburg Times) The rapid ascent of Asia's Tiger economies in the past
three decades, particularly China, and the creation of wealth in their
societies reinforce the belief that "developing economy" is only a
temporary tag on the pathway to a First World future. But can Africa assume an
influential position in global affairs, in the same way that Asia did last
century? The narrative for Africa has shifted remarkably in the past decade to
one that is decidedly positive - "Africa Rising" is what The
Economist magazine labels it.
The question is, can Africa's GDP growth translate
into qualitative development across the continent? To answer this, we need to
look at Africa's prospects through three lenses: its extractive industries;
rising consumerism on the continent; and its ability to industrialise.
On the first point, many people are aware of the
"resource curse". Unable to diversify, their governments are
restricted to collecting limited rents from multinational companies. This is a
risk because investment in a resource is largely an exercise of investing in an
asset with continuing diminishing rates of return.
The second lens is that of the African consumer
market. It isn't an exaggeration to say Africa is emerging as the "next
India" - with a similar population and growth rate, though 20 years behind
the Indian reform and economic high growth story.
The third factor that will determine where African
countries stand a decade from now is how far they are able to climb up the
industrialisation ladder. Arguably, African governments have not taken
advantage of the past decade's growth spurt to move towards diversification.
But if Africa is to deliver on The Economist's
"Africa Rising" narrative, it is imperative that the economies
diversify. There is only one way to do this: through a sustained and sizeable
investment in people. Until now, Africa's growth model has been notoriously
noninclusive. But over the next decade, we will begin to see which countries
win in Africa. The winners will be those that adapt, and fast, for real
economic transformation. Africa in 2025 is just a short period away.
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