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View all search resultsChina is trying to export its way out of a domestic slump, unleashing what many Western governments call a second "China shock." While this strategy is triggering trade fights abroad, it's also producing a new set of potential beneficiaries at home.
President Prabowo Subianto has invoked the economic philosophy of Marhaenism, associated with the quasi-opposition Indonesian Democratic Party of Struggle (PDI-P), as he seeks broad political support for his new plan to establish a mineral exchange.
When major economies are running at near full capacity, it is not clear that trade deficits should be a cause for concern, since they represent a transfer of purchasing power from surplus countries. Under the current circumstances, then, China’s widely criticized surpluses might as well be called enrich-thy-neighbor.
Iran remains under sweeping US and international sanctions, and it has yet to reach a peace deal to end the current conflict with the US and Israel, giving Tehran added incentive to seek alternative financial channels outside the dollar system.
It is true that a hefty share of public spending went into FGDs, seminars and workshops that produced little. But his own government now suffers the opposite failure of executing before it plans, then improvising the plan as the execution collapses. Yet the damage is already done, heavily.
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