Various countries have implemented minimum wage legislation with a sufficient degree of success to justify it becoming established policy. But South Africa with its very high unemployment rate (especially when judged on the broader definition, which includes those who have abandoned looking for work) and lack of skills is not an obvious candidate. The concern… Continue reading A Minimum Wage in South Africa
The size of executive pay packages upsets many. Typically it is set by outside experts, by a directors’ remuneration committee or by reference to market data. Nevertheless the ratio of CEOs’ pay to average earnings has been increasing rapidly and I have noted previously how the earnings of the top 1 percent or so (which… Continue reading Executive Pay.
Index funds have been rapidly increasing in popularity in recent years. It is difficult to argue with their results which tend towards an average of the active funds but favourably skewed by the lower charges applicable. This is all well and good but what happens if they come to dominate the investment landscape. In essence… Continue reading Index Funds – Passive or Parasitic?
In the last financial crisis the ratings agencies fell far short of what was expected of them and led to scepticism over their output. My own scepticism was increased when South Africa was not downgraded at the mid 2016 reviews after their dire warnings about what would happen if growth did not improve or political… Continue reading Ratings Agencies – Useful?
This is a rather unusual tale of a friend, newly arrived in town, looking for a new dentist. He knew of a few business acquaintances, who tiring of the corporate world, had gone into dentistry as a mid-life career change and decided to try them out. He first went to a chap who had been… Continue reading The Dentists’ Tale
The world has seen novel approaches to stimulating economies since the crash of almost a decade ago and yet there seems little to show for it. The initial approach was to reduce interest rates as being the traditional way to stimulate growth. In some countries this monetary easing was accompanied, and to a degree offset,… Continue reading The World Economy
We in the less developed world sometimes view the machinations of the IMF somewhat cynically, especially as being developed world centric in its approach and recommendations . The recent report of The Independent Evaluation Office which was established in 2001 to conduct independent and objective evaluations of IMF policies and activities accordingly came as a… Continue reading IMF EU Policy Formally Reviewed