Tag Archives: Gideon Rachman

Global recession – challenge for developing world

In reading Gideon Rachman’s interview with Abhisit Vejjajiva (Prime Minister Thailand) was struck again by the size of the challenge this economic crisis is posing globally.  Vejjajiva speaks of his previous experience of the World Bank and its cautious approach.  Also as the Western World struggles to sort itself out there must be a risk to a number of the emerging democratic governments worlwide.  Some would argue there may be risks to the survival of some of the democratic governments in the West.  Interesting interview with the British born and educated leader of Thailand.

Can we stick with the Euro/ Can the Euro stick with us?

Last week it was Gideon Rachman (FT) writing about ‘when Europe begins to melt at the edges’ and today it’s David McWilliams (Sunday Business Post) writing on ‘Fighting for our economic reputation’.  Rachman writes about the bind that countries find themselves in when they cannot devalue their currency (because they are part of the euro) and they cannot raise money at competitive rates.  There are limits to what any society may be willing to bear.  Rachman focuses on Southern Europe but makes passing reference to our difficulties in Ireland.  McWilliams references unhelpful comments from Barosso in Davos during the week and his (McWilliams) perception that we may be being targeted for some treatment at present by the British press.  However his comments seem to me not to be at odds with Rachman’s comments.  McWilliams seems to believe one of out best options may be to be part of the pack of EU countries with real problems – we all need a fix.  He also recognises that any bailout will eventually lead to tighter integration.

When Europe starts to melt at the edges

Gideon Rachman’s article provides excellent food for thought looking at the predicament in whcih the Irish economy finds itself.  Rachman focuses on Southern Europe and makes passing reference to Ireland.  I am not sure that things are going to be much different here – interesting to see how things will play out – in particular if we begin to find raising money on international markets prohibitively expensive.  Certainly, as costs of funding rise, it becomes more difficult to justify the supposed RoI on many of the targeted captial projects.