Archive for giugno, 2014

Manufactoring powers

by Simon Baptist

 

One of the major forces reshaping global business is that of rising wages in China. Nominal wages have been rising at over 10% a year in every year since 1997: Chinese workers are still much cheaper than those in, say, the United States, but the gap is closing rapidly. China has managed to create such a dominant position in global manufacturing supply chains, despite rapidly increasing wages, partly because of its infrastructure, but also because productivity growth has been unusually rapid. »» Manufactoring powers

A predictable earthquake

by Simon Baptist
 
Voters in the European Union sent a strong message last week, with populist and eurosceptic parties topping the polls in a number of countries, most notably the Front National in France and the UK Independence Party in the UK. It is important to keep this in perspective, though. While the elections will bring domestic political instability to France and the UK, in many countries mainstream parties dominated, for example in Germany and – encouragingly – in Italy.

This largely reflects how citizens feel about how their countries are being managed at the national level: where they are happy, mainstream parties did well. It has been clear for a long time that mainstream parties in France and the UK are failing to connect with their electorates, leaving the way open for the insurgents to fill the political vacuum. »» A predictable earthquake