company:international monetary fund

  • #Globalisation is dead and we need to invent a new world order - Open Future
    https://www.economist.com/open-future/2019/06/28/globalisation-is-dead-and-we-need-to-invent-a-new-world-order

    The Economist : Describe what comes after globalisation—what does the world you foresee look like?

    Mr O’Sullivan : Globalisation is already behind us. We should say goodbye to it and set our minds on the emerging multipolar world. This will be dominated by at least three large regions: America, the European Union and a China-centric Asia. They will increasingly take very different approaches to economic policy, liberty, warfare, technology and society. Mid-sized countries like Russia, Britain, Australia and Japan will struggle to find their place in the world, while new coalitions will emerge, such as a “Hanseatic League 2.0” of small, advanced states like those of Scandinavia and the Baltics. Institutions of the 20th century—the World Bank, the International Monetary Fund and the World Trade Organisation—will appear increasingly defunct.

    The Economist : What killed globalisation?

    Michael O’Sullivan : At least two things have put paid to globalisation. First, global economic growth has slowed, and as a result, the growth has become more “financialised”: debt has increased and there has been more “monetary activism”—that is, central banks pumping money into the economy by buying assets, such as bonds and in some cases even equities—to sustain the international expansion. Second, the side effects, or rather the perceived side-effects, of globalisation are more apparent: wealth inequality, the dominance of multinationals and the dispersion of global supply chains, which have all become hot political issues.

    • global economic growth has slowed, and as a result, the growth has become more “financialised”: debt has increased and there has been more “monetary activism”—that is, central banks pumping money into the economy by buying assets, such as bonds and in some cases even equities—to sustain the international expansion.

      #capitalisme_inversé (cf. La Grande Dévalorisation de Trenkle et Lohoff)

  • The Making of Juan Guaidó: US Regime-Change Laboratory Created Venezuela’s Coup Leader – Consortiumnews
    https://consortiumnews.com/2019/01/29/the-making-of-juan-guaido-us-regime-change-laboratory-created-venezu

    [...] in 2007 [...] Guaidó moved to Washington, D.C., to enroll in the governance and political management program at George Washington University under the tutelage of Venezuelan economist Luis Enrique Berrizbeitia, one of the top Latin American neoliberal economists. Berrizbeitia is a former executive director of the International Monetary Fund who spent more than a decade working in the Venezuelan energy sector under the oligarchic old regime that was ousted by Chavez.

  • Egypt. 2 years after the loan agreement: What the IMF failed to anticipate | MadaMasr

    https://madamasr.com/en/2018/11/22/feature/economy/2-years-after-the-loan-agreement-what-the-imf-failed-to-anticipate

    On November 11, 2016, the International Monetary Fund (IMF) and the Egyptian government finalized a US$12 billion loan agreement tied to an economic reform plan that included a series of austerity measures and the liberalization of the Egyptian pound.

    At the time, Egypt was facing a shortage in foreign currency reserves, and both the IMF and the Egyptian authorities made optimistic forecasts about the future of the Egyptian economy under the new economic program.

    Two years later, the crisis in foreign currency reserves has largely been alleviated and the IMF’s growth targets appear to be on track. Yet those achievements have been offset by soaring rates of inflation and foreign debt, along with the plummeting purchasing power of the local currency. Meanwhile, fuel subsidies, which were meant to be reduced to alleviate the government budget — a specific goal of the economic program — have instead increased as a result of the devaluation of the pound.

    A number of these unanticipated challenges now facing the Egyptian economy are highlighted in a new report by the investment bank Shuaa Capital, which was issued to its clients several days ago and of which Mada Masr has obtained a copy.

  • Indonesia: The World Bank’s Failed East Asian Miracle | The Oakland Institute
    https://www.oaklandinstitute.org/indonesia-world-bank-failed-east-asian-miracle

    Indonesia, host of the 2018 annual meetings of the World Bank and International Monetary Fund (IMF), for years has been heralded as a major economic success by the Bank and rewarded for its pro-business policy changes through the World Bank’s Doing Business reports. Between 2016 and 2018 alone, Indonesia climbed an astounding 34 positions in the ranks. These reforms, however, have come at a massive cost for both people and the planet.

    Indonesia: The World Bank’s Failed East Asian Miracle details how Bank-backed policy reforms have led to the displacement, criminalization, and even murder of smallholder farmers and indigenous defenders to make way for mega-agricultural projects. While Indonesia’s rapidly expanding palm oil sector has been heralded as a boon for the economy, its price tag includes massive deforestation, widespread loss of indigenous land, rapidly increasing greenhouse gas emissions, and more.

    #Indonésie #Banque_mondiale #industrie_palmiste #terres #assassinats

  • The Rise and Fall of the Latin American Left | The Nation
    https://www.thenation.com/article/the-ebb-and-flow-of-latin-americas-pink-tide

    Conservatives now control Latin America’s leading economies, but the region’s leftists can still look to Uruguay for direction.
    By Omar G. Encarnación, May 9, 2018

    Last December’s election of Sebastián Piñera, of the National Renewal party, to the Chilean presidency was doubly significant for Latin American politics. Coming on the heels of the rise of right-wing governments in Argentina in 2015 and Brazil in 2016, Piñera’s victory signaled an unmistakable right-wing turn for the region. For the first time since the 1980s, when much of South America was governed by military dictatorship, the continent’s three leading economies are in the hands of right-wing leaders.

    Piñera’s election also dealt a blow to the resurrection of the Latin American left in the post–Cold War era. In the mid-2000s, at the peak of the so-called Pink Tide (a phrase meant to suggest the surge of leftist, noncommunist governments), Venezuela, Argentina, Brazil, Chile, Uruguay, Paraguay, Ecuador, and Bolivia, or three-quarters of South America’s population (some 350 million people), were under left-wing rule. By the time the Pink Tide reached the mini-state of Mexico City, in 2006, and Nicaragua, a year later (culminating in the election of Daniel Ortega as president there), it was a region-wide phenomenon.

    It’s no mystery why the Pink Tide ran out of steam; even before the Chilean election, Mexican political scientist Jorge Castañeda had already declared it dead in The New York Times. Left-wing fatigue is an obvious factor. It has been two decades since the late Hugo Chávez launched the Pink Tide by toppling the political establishment in the 1998 Venezuelan presidential election. His Bolivarian revolution lives on in the hands of his handpicked successor, Nicolás Maduro, but few Latin American governments regard Venezuela’s ravaged economy and diminished democratic institutions as an inspiring model. In Brazil, the Workers’ Party, or PT, was in power for 14 years, from 2002 through 2016, first under its founder, Luiz Inácio Lula da Silva, between 2003 and 2011, and then under his successor and protégée, Dilma Rousseff, from 2011 to 2016. The husband-and-wife team of Néstor Kirchner and Cristina Fernández de Kirchner of the Peronist Party governed Argentina from 2003 to 2015. Socialist Michelle Bachelet had two nonconsecutive terms in office in Chile, from 2006 to 2010 and from 2014 to 2018.

    Economic turmoil and discontent is another culprit. As fate would have it, the Pink Tide coincided with one of the biggest economic expansions in Latin American history. Its engine was one of the largest commodities booms in modern times. Once the boom ended, in 2012—largely a consequence of a slowdown in China’s economy—economic growth in Latin America screeched to a halt. According to the International Monetary Fund, since 2012 every major Latin American economy has underperformed relative to the previous 10 years, with some economies, including that of Brazil, the region’s powerhouse, experiencing their worst recession in decades. The downturn reined in public spending and sent the masses into the streets, making it very difficult for governments to hang on to power.

    Meanwhile, as the commodity boom filled states’ coffers, leftist politicians became enmeshed in the same sorts of corrupt practices as their conservative predecessors. In April, Lula began serving a 12-year prison sentence for having accepted bribes in exchange for government contracts while in office. His prosecution, which in principle guarantees that he will not be a candidate in this year’s presidential race, was the high point of Operation Car Wash, the biggest anti-corruption dragnet in Brazilian history. Just after leaving office, in 2015, Cristina Fernández de Kirchner was indicted for fraud for conspiring with her former public-works secretary, José López, to steal millions of federal dollars intended for roadwork in Argentina. The “nuns and guns” scandal riveted the country, with the arrest of a gun-toting López as he hurled bags stuffed with millions of dollars over the walls of a Catholic convent in a suburb of Buenos Aires. In Chile, Bachelet left office under a cloud of suspicion. Her family, and by extension Bachelet herself, is accused of illegal real-estate transactions that netted millions of dollars.

    All this said, largely overlooked in obituaries of the Pink Tide is the right-wing backlash that it provoked. This backlash aimed to reverse the shift in power brought on by the Pink Tide—a shift away from the power brokers that have historically controlled Latin America, such as the military, the Catholic Church, and the oligarchy, and toward those sectors of society that have been marginalized: women, the poor, sexual minorities, and indigenous peoples. Rousseff’s impeachment in 2016 perfectly exemplifies the retaliation organized by the country’s traditional elites. Engineered by members of the Brazilian Congress, a body that is only 11 percent female and has deep ties to industrial barons, rural oligarchs, and powerful evangelical pastors, the impeachment process was nothing short of a patriarchal coup.

    In a 2017 interview, Rousseff made note of the “very misogynist element in the coup against me.… They accused me of being overly tough and harsh, while a man would have been considered firm, strong. Or they would say I was too emotional and fragile, when a man would have been considered sensitive.” In support of her case, Rousseff pointed out that previous Brazilian presidents committed the same “crime” she was accused of (fudging the national budget to hide deficits at reelection time), without any political consequence. As if to underscore the misogyny, Rousseff’s successor, Michel Temer, came into office with an all-male cabinet.

    In assessing the impact of the Pink Tide, there is a tendency to bemoan its failure to generate an alternative to neoliberalism. After all, the Pink Tide rose out of the discontent generated by the economic policies championed by the United States and international financial institutions during the 1990s, such as privatizations of state enterprises, austerity measures, and ending economic protectionism. Yet capitalism never retreated in most of Latin America, and US economic influence remains for the most part unabated. The only significant dent on the neoliberal international order made by the Pink Tide came in 2005, when a massive wave of political protests derailed the George W. Bush administration’s plan for a Free Trade Area of the Americas, or FTAA. If enacted, this new trade pact would have extended the North American Free Trade Agreement (NAFTA) to all countries in the Americas save for Cuba, or 34 nations in total.

    But one shouldn’t look at the legacy of the Pink Tide only through the lens of what might have been with respect to replacing neoliberalism and defeating US imperialism. For one thing, a good share of the Pink Tide was never anti-neoliberal or anti-imperialist. Left-wing rule in Argentina, Brazil, Uruguay, and Chile (what Castañeda called the “good left”) had more in common with the social-democratic governments of Western Europe, with its blend of free-market economics and commitment to the welfare state, than with Cuba’s Communist regime.

    Indeed, only in the radical fringe of the Pink Tide, especially the triumvirate of Chávez of Venezuela, Evo Morales of Bolivia, and Rafael Correa of Ecuador (the “bad left,” according to Castañeda), was the main thrust of governance anti-neoliberal and anti-imperialist. Taking Cuba as a model, these self-termed revolutionaries nationalized large sectors of the economy, reinvigorated the role of the state in redistributing wealth, promoted social services to the poor, and created interstate institutions, such as the Bolivarian Alliance for the Peoples of Our America, or ALBA, to promote inter-American collaboration and to challenge US hegemony.

    Second, the focus on neoliberalism and US imperialism obscures the Pink Tide’s biggest accomplishments. To be sure, the picture is far from being uniformly pretty, especially when it comes to democracy. The strong strand of populism that runs through the Pink Tide accounts for why some of its leaders have been so willing to break democratic norms. Claiming to be looking after the little guy, the likes of Chávez and Maduro have circumvented term limits and curtailed the independence of the courts and the press. But there is little doubt that the Pink Tide made Latin America more inclusive, equitable, and democratic, by, among other things, ushering in an unprecedented era of social progressivism.

    Because of the Pink Tide, women in power are no longer a novelty in Latin American politics; in 2014, female presidents ruled in Argentina, Brazil, and Chile. Their policies leave little doubt about the transformative nature of their leadership. In 2010, Fernández boldly took on the Argentine Catholic Church (then headed by present-day Pope Francis) to enact Latin America’s first ever same-sex marriage law; this was five years before same-sex marriage became the law of the land in the United States. A gender-identity law, one of the world’s most liberal, followed. It allows individuals to change their sex assigned at birth without permission from either a doctor or a judge. Yet another law banned the use of “conversion therapy” to cure same-sex attraction. Argentina’s gay-rights advances were quickly emulated by neighboring Uruguay and Brazil, kick-starting a “gay-rights revolution” in Latin America.

    Rousseff, who famously referred to herself with the gender-specific title of a presidenta, instead of the gender-neutral “president,” did much to advance the status of women in Brazilian society. She appointed women to the three most powerful cabinet positions, including chief of staff, and named the first female head of Petrobras, Brazil’s largest business corporation; during her tenure in office, a woman became chief justice of the Federal Supreme Court. Brutally tortured by the military during the 1970s, as a university student, Rousseff put human rights at the center of Brazilian politics by enacting a law that created Brazil’s first ever truth commission to investigate the abuses by the military between 1964 and 1985. She also signed laws that opened the Brazilian Army to women and that set into motion the corruption campaign that is currently roiling the Brazilian political class. These laws earned Rousseff the enmity of the military and conservatives.

    Bachelet, the last woman standing, made news when she entered office, in 2006, by naming the same number of men and women to her cabinet. After being term-limited, she became the first head of the newly established UN Women (formally known as the United Nations Entity for Gender Equality and the Empowerment of Women), before returning to Chile to win a second term at the presidency in 2014. During her second term, she created the Ministry of Gender Equality to address gender disparities and discrimination, and passed a law that legalized abortion in cases of rape, when there is a threat to the life of the mother, or when the fetus has a terminal condition. Less known is Bachelet’s advocacy for the environment. She weaned Chile off its dependence on hydrocarbons by building a vast network of solar- and wind-powered grids that made electricity cheaper and cleaner. She also created a vast system of national parks to protect much of the country’s forestland and coastline from development.

    Latin America’s socioeconomic transformation under the Pink Tide is no less impressive. Just before the economic downturn of 2012, Latin America came tantalizingly close to becoming a middle-class region. According to the World Bank, from 2002 to 2012, the middle class in Latin America grew every year by at least 1 percent to reach 35 percent of the population by 2013. This means that during that time frame, some 10 million Latin Americans joined the middle class every year. A consequence of this dramatic expansion of the middle class is a significant shrinking of the poor. Between 2000 and 2014, the percentage of Latin Americans living in poverty (under $4 per day) shrank from 45 to 25 percent.

    Economic growth alone does not explain this extraordinary expansion of the Latin American middle class and the massive reduction in poverty: Deliberate efforts by the government to redistribute wealth were also a key factor. Among these, none has garnered more praise than those implemented by the Lula administration, especially Bolsa Família, or Family Purse. The program channeled direct cash payments to poor families, as long as they agreed to keep their children in school and to attend regular health checkups. By 2013, the program had reached some 12 million households (50 million people), helping cut extreme poverty in Brazil from 9.7 to 4.3 percent of the population.

    Last but not least are the political achievements of the Pink Tide. It made Latin America the epicenter of left-wing politics in the Global South; it also did much to normalize democratic politics in the region. With its revolutionary movements crushed by military dictatorship, it is not surprising that the Latin American left was left for dead after the end of the Cold War. But since embracing democracy, the left in Latin America has moderated its tactics and beliefs while remaining committed to the idea that deliberate state action powered by the popular will is critical to correcting injustice and alleviating human suffering. Its achievements are a welcome antidote to the cynicism about democratic politics afflicting the American left.

    How the epoch-making legacy of the Pink Tide will fare in the hands of incoming right-wing governments is an open question. Some of the early signs are not encouraging. The Temer administration in Brazil has shown a decidedly retro-macho attitude, as suggested by its abolishment of the Ministry of Women, Racial Equality, and Human Rights (its functions were collapsed into the Ministry of Justice) and its close ties to a politically powerful evangelical movement with a penchant for homophobia. In Argentina, President Mauricio Macri has launched a “Trumpian” assault on undocumented immigrants from Bolivia, Paraguay, and Peru, blaming them for bringing crime and drugs into the country. Some political observers expect that Piñera will abridge or overturn Chile’s new abortion law.

    But there is reason for optimism. Temer and Macri have been slow to dismantle anti-poverty programs, realizing that doing so would be political suicide. This is hardly surprising, given the success of those programs. Right-wing governments have even seen fit to create anti-poverty programs of their own, such as Mexico’s Prospera. Moreover, unlike with prior ascents by the right in Latin America, the left is not being vanished to the political wilderness. Left-wing parties remain a formidable force in the legislatures of most major Latin American countries. This year alone, voters in Brazil, Mexico, and Colombia will have presidential elections, raising the prospect that a new Pink Tide might be rising. Should this new tide come in, the Latin American left would do well to reform its act and show what it has learned from its mistakes.

    Latin American leftists need not look far to find a model to emulate: Uruguay. It exemplifies the best of the Pink Tide without its excesses. Frente Amplio, or Broad Front, a coalition of left-wing parties in power since 2005, has put the country at the vanguard of social change by legalizing abortion, same-sex marriage, and, most famously, recreational marijuana. For these reasons alone, in 2013 The Economist chose “liberal and fun-loving” Uruguay for its first ever “country of the year” award.

    Less known accomplishments include being one of only two countries in Latin America that enjoy the status of “high income” (alongside Chile), reducing poverty from around 40 percent to less than 12 percent from 2005 to 2014, and steering clear of corruption scandals. According to Transparency International, Uruguay is the least corrupt country in Latin America, and ranks among the world’s 25 least corrupt nations. The country also scored a near perfect 100 in Freedom House’s 2018 ranking of civil and political freedoms, virtually tied with Canada, and far ahead of the United States and neighboring Argentina and Brazil. The payoff for this much virtue is hard to ignore. Among Latin American nations, no other country shows more satisfaction with its democracy.

    Omar G. EncarnaciónOmar G. Encarnación is a professor of political studies at Bard College and author of Out in the Periphery: Latin America’s Gay Rights Revolution.

    #politique #amérique_latine #impérialisme

  • Egypt : Government hikes fuel prices by up to 66.7% | MadaMasr
    https://www.madamasr.com/en/2018/06/16/news/economy/government-hikes-fuel-prices-by-up-to-66-7

    The government raised fuel prices at 9 am on Saturday morning by as much as 66.67 percent, according to Saturday’s edition of the Official Gazette. The move comes as part of the 2016 structural readjustment program agreed on with the International Monetary Fund (IMF) and amid rising international oil prices.

    Among the hikes introduced on Saturday morning, the second largest increases were levied on diesel and 80 octane fuel prices, which are used in microbuses and trucks. This will have a pronounced impact on low-income groups and overall inflation levels.

    The greatest increase comes with the rise in prices of LPG cylinders used in households and some commercial outlets as an alternative to gas. The price of 95 octane and 92 octane fuel — used by private car owners — saw the lowest increase.

  • IMF boss says world trade system in danger of being torn apart | World news | The Guardian
    https://www.theguardian.com/world/2018/apr/11/imf-boss-warns-world-trade-system-in-danger-of-being-torn-apart

    The head of the International Monetary Fund has warned of “darker clouds looming” for the global economy amid simmering trade tensions between the US and China, urging governments around the world to steer clear of protectionism or face negative consequences.

    Christine Lagarde said the current system for world trade was “in danger of being torn apart”, with the potential to upset the present global economic upswing and make consumers poorer.

    #brrr ça fait peur.

  • Exxon Sparks IMF Concern With Weighty Returns in Tiny #Guyana - Bloomberg
    https://www.bloomberg.com/news/articles/2018-04-09/exxon-sparks-imf-concern-with-weighty-returns-in-tiny-guyana

    Exxon Mobil Corp. got such a “favorable” deal from Guyana, home to the biggest new deepwater oil play, that the tiny South American country should rewrite its tax laws, the International Monetary Fund said.

    While Guyana should honor the existing deal, future contracts should ensure the state gets a higher portion of crude proceeds, the fund said in a report seen by Bloomberg News. The country, South America’s third poorest with an average per capita income of around $4,000, has little experience of dealing with multinational behemoths such as Exxon.

    Terms of the 2016 contract “are relatively favorable to investors by international standards,” the IMF said in a report prepared for Guyanese officials. “Existing production sharing agreements appear to enjoy royalty rates well below of what is observed internationally.
    […]
    Open Oil, a Berlin-based company that advocates contract transparency, also found Guyana’s share of the #Stabroek was low compared with both established and early-stage producing countries. Guyana will receive 52 percent of positive cash flow over the life of Exxon’s initial project, compared with between 63 percent and 72 percent for developments in Liberia, Mauritania, Ghana, Senegal and Papua New Guinea, it said in a March report.

    The Exxon contract, which was published on a government website last year, provides Guyana with a 2 percent royalty on sales and 50 percent of profitable oil, once costs are repaid. Exxon and its partners can only deduct three-quarters of their costs each year, giving the government some cash in the first years of the project.

  • More migrant workers needed to offset ageing population, says IMF | Business | The Guardian

    https://www.theguardian.com/business/2018/apr/09/get-more-migrant-workers-to-offset-strain-of-ageing-population-warns-im

    The International Monetary Fund has said advanced economies such as Britain, the US and Japan risk being overwhelmed by their ageing populations, and calls on them to throw open their borders to more migrant workers in response.

    Within the next few decades, working-age adults will need to support double the number of elderly people than they do now, putting immense pressure on welfare systems and wiping out as much as 3% of potential economic output by 2050, the IMF said in its latest World Economic Outlook report.

    #migrations #asile #vieillesse #population #Vieillissement_population #robotisation #immigration

  • If you’re Chinese, then being a ‘shameless’ savvy saver is likely to be in your DNA | South China Morning Post
    http://www.scmp.com/news/hong-kong/community/article/2138956/if-youre-chinese-then-being-shameless-savvy-saver-likely-be

    Chinese people, like most others, love money. But to be more precise, we take great joy in scrupulously balancing between saving money and spending within our means.

    This attitude has been extolled as a virtue. In fact, it’s become so ingrained in our psyche that no matter where or how we are brought up or how we are educated, when it comes to handling money, being sensible and frugal is second nature to us.

    We often do it without thinking and feel no shame in doing so, even if we might appear penny-pinching to others.

    So there was little surprise when a recent Citibank study revealed Hong Kong is packed with a million millionaires, 68,000 of whom have at least HK$10 million (US$1.27 million) squirrelled away.

    Another report by Wealth-X, a firm that conducts research and valuations on ultra-high net worth individuals, also found that Hong Kong is a magnet for the ultra-wealthy. It was the city with the second-highest number of such residents, after New York.

    Any Chinese would tell you that accumulating wealth may be hard work, but keeping it is even harder.

    As a popular Chinese saying goes, “The first generation makes the money, the second one holds onto the inheritance, but the third one spends it.” This Chinese proverb serves as a warning and a reminder that sensible budgeting and frugality is not only a virtue but a survival mantra that needs to be etched on the mind.

    Therefore, our attitudes towards money are shaped early in life by our elders as an integral part of Chinese culture and upbringing. We are told at a very young age that to be a responsible person, we must work hard and save up a nest egg to secure our future and consequently, our family’s future.

    All Chinese are also familiar with the saying, “To store up grains in case of a famine”. This obviously is the basic principle that illustrates we may be money-oriented but it’s all for good reason.

    We are driven by a sense of responsibility to provide for our families and the fear that something might go wrong also prompts us to work hard to save up for rainy days.

    There’s no shame in being a savvy saver – even in times of prosperity
    Many of my old relatives have said that their life savings are hidden away in tin boxes stashed under their beds, cupboards or even their floorboards. I once came across a biscuit tin that contained a big wad of HK$1,000 bills, a bank book, some old photographs and some identification documents; I later found out the items belonged to one of my aunts.

    When I asked her why she stored all these valuables in a tin box, she said the items were like her life – the photographs were her past and the money was to support her now and in the future. She thought keeping “her life” in a tin box was the best way to keep it safe, as in the event of a misfortune like a fire, she would be able to quickly grab all of her valuables.

    Last week, I was having dinner with my girlfriend and when she ordered hot lemon water, I immediately asked the waiter to give her a mug of hot water instead, but with two pieces of lemon for me. The waiter took the order but gave me a funny look. I didn’t even have to explain to my girlfriend, Patty, who is an overseas Chinese, the reasoning behind my order – I wanted to save money.

    By ordering the hot water and lemon separately, the restaurant wouldn’t know how to charge us – so it would be free. We burst out laughing and both agreed that being thrifty is in our DNA. We may come from very different backgrounds but we are undeniably Chinese when it comes to our views of money.

    Famed Canadian comedian Russell Peters was spot on in one of his shows when he described a shopping experience he had when trying to get a discount from a Chinese shop owner who only gave him a reduction of 50 cents.

    He said “Chinese won’t give you a bargain … instead they will try to get every penny from you.”

    Many years ago, I heard that for every $10 a Chinese makes, they would save $9. It might sound far-fetched but it’s true that an average Chinese person saves a lot more than many of his overseas counterparts.

    According to the International Monetary Fund, from 1995 to 2005, the average urban household savings rate in China stood at 25 per cent of disposable income, with some other analysts even putting it as high as 30 per cent.

    When we have our minds set on earning that first barrel of gold, every penny counts, and we always look for a bargain. Others may laugh at our frugality or supposed stinginess, but at the end of the day, there’s no shame in being a savvy saver – even in times of prosperity.

    With that in mind, let’s finish off today with another Chinese adage and some food for thought: “When rich, think of poverty, but do not think of riches when you are poor”. In other words, there is never a bad time to save. Even when you have deep pockets, you must always be prepared for leaner times.

    Luisa Tam is a senior editor at the Post

    This article appeared in the South China Morning Post print edition as: Savvy saving is a way of life for Chinese

    #économie #affaires #Chine