This Blog reviews, and generally extols the virtue of, trade and economic liberalization. The positive effects of trade and economic reform are well documented here and elsewhere. Having said that, there has seldom in recent years, been such compelling evidence of the ill effects of dictatorial, heavy handed and ham-fisted government intervention, as there exists in Zimbabwe today. The Zimbabwean covers the detail of a recent UN report, claiming that foreign investment inflow has dropped 25% in one year (i.e. 2008).
The Zimbabwean – Investment inflows drop 25 percent
Companies operating in the U.K. are set to face multiple Company Act amendments that include greater powers for the registrar and stricter legislation in reporting of any changes to company Articles but also allow more privacy to company directors, greater ability of a company to protect itself from fraudulent filings, and simpler and more efficient restoration of a company previously struck off the register.
Reuters – Changes to U.K.`s Company Law Come Into Effect October 1, 2009
Although this articles could have appeared in one of dozens of national newspapers across the developed world, this recent article in The Age (Australia), makes a cogent case for reducing the complexity of the income tax system, and its corresponding burden on business. The universal nature of the hue and cry on this issue, may one day lead to a reduction in the administrative burden and technical complexity of income taxation regimes. One wonders what net gains in business efficiencies may be obtained, if this objective were to be realized?
The Age – Tax needs new and fewer pages
An inefficient economy, semi-Soviet social sphere, fragile democracy, negative demographic trends, and unstable Caucasus represent very big problems, even for a country such as Russia. But all is not lost, nor is it all negative. This article is a comprehensive survey of where Russia may be headed, and how it may emerge as a more productive, efficient and equitable country.
Georgian Daily – Go Russia!
The impact of the Companies Act (South Africa) and “King III Report” on corporate governance reform, will serve to strengthen and clarify the roles and responsibilities of directors in South Africa. This will have the effect of attracting capital and reassuring investors. Some of the proposed measures for the reform to directors and officers duties are dealt with in the following article.
Financier Worldwide – Corporate Governance Reform In South Africa
Legislation introduced four years ago, obligated South African mining companies to sell 15% of their assets to black investors by 2009 and 26 percent by 2014. The law aims to compensate for discrimination suffered during apartheid, which ended in 1994. Sasol announced today, that a deal to sell a stake in its coal business to Exxaro Resources Ltd. to comply with black ownership laws collapsed.
Bloomberg – Sasol Profit to Fall; Exxaro Withdraws From Mine Unit
In a positive move towards economic liberalization, the UAE has declared its intention to scraps the minimum capital requirement of Dh150,000 to start a business (i.e. approximately USD$41,000.00 or CDN$44,000.00). The UAE is further committed to revising and enacting company and industry laws to encourage enterprise and foreign investment.
The National – UAE Law planned to boost investment
This Detroit News editorial focus on the generally unacknowledged, and perhaps unintended, consequence of government intervention, extending as far as putting domestic production at a competitive disadvantage. Current government economic rescue initiatives may not constitute “central planning” with all of the economic inefficiency that entails, but that is not to say that the blunt hand of government does not extract a toll on business.
The Detriot News – Editorial: New manufacturing czar should head off unwise policies
The much lauded and at times controversial Black Economic Empowerment (“BEE”) program in South Africa is moving from the embryonic legislative phase to the more matured and evolving stage of observance and enforcement. Here is a fascinating article on why the transition from enactment to observance has been a smooth one, at least in a relative sense.
Moneyweb – Procurement the BEE tool we have to keep clean and sharp
The good news is that the rate of job losses in the US is slowing; however, the overall rate continues to increase.
Bloomberg – U.S. Economy: Payroll Losses Slow, Unemployment Rate Climbs
Contrast this with: Statistics Canada said on Friday that 27,100 jobs were created in August, compared with market forecasts for 10,000 job losses.
Reuters – Canada jobs, purchasing data boost recovery talk
