Experts say the United States is set to lose its global economic dominance and will be replaced by China that will establish itself as the world’s biggest economy before 2032.

A report released by the London-based Center for Economics and Business Research emphasized that China was already successfully moving ahead based on an economic growth that emerged in 2007.

The report added that four other Asian nations – India, Japan, South Korea, and Indonesia – would also join China it in the top 10 global economies.

The 10 largest economies in the world in the year 2032 would be China at the top, followed by the US, India, Japan, Germany, Brazil, the UK, South Korea, France and Indonesia, the report added as cited by was quoted as saying by Russia’s Sputnik news agency.

“China has maintained its growth resilience and gained reform momentum,” said John Litwack, World Bank lead economist for China, in reference to China’s 6.8 percent gross domestic product growth in 2017.

“The authorities have undertaken a host of policy and regulatory measures aimed at reducing macroeconomic imbalances and limiting financial risks without notable impact on growth,” Litwack was quoted as saying by Sputnik news agency.

Meanwhile, the Institute of Population and Labor Economics at the Chinese Academy of Social Sciences (CASS) also found that the “new” Chinese economy, companies and services based on the internet, grew at an astonishing average 16.1 percent between 2007 and 2017 — twice as fast as the overall Chinese economy.

Chinese economic growth has slowed to counter the excesses that come part and parcel with rapid economic growth: pollution, debt and income inequality, Sputnik added. However, China more than doubled the US’ 2017 GDP growth of 3.2 percent.

Already, China has a higher real GDP than the US, but the US retains a comfortable lead of $7.4 billion in nominal GDP. But the Chinese economy is growing at high speed, so it’s only a matter of time before it outpaces the US, the report added.

Source: Presstv

Cameroon has been a member of the African Growth and Opportunity Act (AGOA) initiative since it was launched in 2000. AGOA is a preferential trade program which allows a set of eligible products from designated African countries into the US market.

Its main objective is to promote economic development through increased trade and investment between the US and sub-Saharan Africa. Cameroon has benefited a great deal. In 2015, it made USD$133 million in overall export trade. Cameroon’s main exports to the US include petroleum, cocoa, rubber, timber, and coffee, while its main imports from the US include machinery, vehicles and chemicals.

But AGOA is not just a trade pact. It’s also a way of promoting democracy. It comes with strict eligibility criteria which require that countries maintain the rule of law. Countries must also commit to political pluralism, the right to due process, fair trial, and equal protection under the law. They must also cooperate in international efforts to eliminate human rights violations.

The AGOA legislation empowers the American president annually to determine which countries are still eligible for its benefits. If he determines that a country is not making progress towards meeting the criteria he can decide to suspend it from the agreement.

The history of AGOA is replete with cases of ejections and re-admissions. These have often been based on human rights and democracy related issues. For instance, in 2016 former US President Barack Obama ejected Burundi from the AGOA family.

He did this on grounds that the country had failed to establish the rule of law. His reasons included the continuing crackdown on opposition members, assassinations, extra-judicial killings, arbitrary arrests and torture.

South Sudan and The Gambia have also had their memberships terminated. The Democratic Republic of Congo and Swaziland too. Mali, Guinea Bissau and Cote d’Ivoire were ejected and re-admitted after making efforts to strengthen the rule of law.

So far Cameroon has had a stellar record. But given recent developments questions are being asked about whether or not it should still benefit from the scheme.

Troubles in Cameroon

Over the past year Cameroon has been engulfed in a crisis that has pitted the Anglophone part of the country against the central government whose policies are decried to favour its Francophone regions. The Anglophone regions to the west are former British mandated territories, while the Francophone regions in the east are former French mandated territories.

The unrest began in October 2016 with a protest against the overwhelming use of French in a country where French and English have equal status under the constitution.

What began as a disagreement over the use of language in courts and in the design of school curricula has slowly became a political battle for Anglophone secession. The calls for secession have been met with brutal repression by state security forces. Whenever the state and the secessionists have clashed state agents have used excessive force.

Multiple human rights abuses have been committed against unarmed civilian populations including killings, mass arrests and detention. Some pro-Anglophone Cameroonians have sought refuge in neighbouring Nigeria while others have been arrested and detained pending prosecution.

In January, the government shut down the internet in some Anglophone regions. The shutdown, which lasted for more than three months, was condemned as a violation of international human rights.

Because of this crisis one could rightly question whether Cameroon is still eligible for the AGOA trade benefits. Cameroon is not alone. Mauritania also faces ejection from the trade agreement for human rights abuses. The issue of modern-day slavery in Mauritania, which was once expelled before being re-admitted, has raised questions about its continued AGOA membership.

Eligibility in question

In October US Trade Representative’s Joseph Lighthizer announced new efforts to ensure that all countries receiving US trade benefits met the eligibility criteria. By creating a more proactive process to assess eligibility the US will ensure that nonperforming countries are excluded from trade preferences. Although Lighthizer was referring to America’s Generalised System of Preferences – which is a different US preferential trade arrangement – it is likely that the review will also be applied to AGOA countries.

When it comes to Cameroon, the international community has called for dialogue before any action is taken. Opposition leaders are demanding the inclusion of all political and civil society stakeholders regardless of their religious beliefs or political opinions, including those who aspire for a return to federalism. Federalism was abolished in 1972 and replaced by a unitary state.

The Cameroonian government has shown its readiness to engage in talks with every stakeholder except the separatists who have been implicated in the November killings of four soldiers in the North-West region, and another four in the South-West region.

Current events have given the Cameroon government an opportunity to address issues of decentralisation which have remained dormant since the promulgation of the 1996 constitution. The constitution was supposed to grant a certain level of autonomy to local governments. Twenty years down the road decentralisation has remained a dead letter. This is why the latest separatist calls have taken root.

The Conversation

Dialogue is needed not only to end the brutal repression of the secessionist movement, but also to address the latent causes of the crisis. If the dialogue doesn’t take place Cameroon’s AGOA membership may be just another casualty of the ongoing Anglophone crisis.

Source: News 24

The International Monetary Fund (IMF) has claimed that China risks facing a growing debt-dependency in its banking system, urging Beijing to increase its capital buffers to protect against a possible “financial crisis.”

The Washington-based organization said in a report on Thursday that reforms by Beijing over the past five years had not gone far enough as financial credit in the world’s second-biggest economy had risen high by international standards, and personal debt had also increased in the same period.

“The system’s increasing complexity has sown financial stability risks,” the IMF’s assessment report said. “Credit growth has outpaced GDP growth, leading to a large credit overhang. The credit-to-GDP ratio is now about 25% above the long-term trend, very high by international standards and consistent with a high probability of financial distress.”

The IMF recommended that China prioritize financial stability above development goals as the pursuit of regional growth targets and the protection of failing companies had led to a surge in debt, particularly at local government levels.

“The apparent primary goals of preventing large falls in local jobs and reaching regional growth targets have conflicted with other policy objectives such as financial stability,” the report said. “Regulators should reinforce the primacy of financial stability over development objectives.”

“As a result, corporate debt has reached 165% of GDP, and household debt, while still low, has risen by 15 percentage points of GDP over the past five years and is increasingly linked to asset-price speculation. The buildup of credit in traditional sectors has gone hand-in-hand with a slowdown of productivity growth and pressures on asset quality,” the IMF said.

The report also said that while China has been taking steps to address its debt risks, authorities in Beijing are required to “de-emphasize the GDP” projections to be able to rein in excessive credit growth in national plans that have incentivized local governments to set high growth targets.

Ratna Sahay, the deputy director of the IMF’s Monetary and Capital Markets Department, said during a news conference that China should “incite local governments to strengthen supervision on risks.”

“Risks are large,” Sahay told reporters. “Having said that, the authorities are really aware of risks and they are working proactively to contain these risks.”

The IMF report also highlighted the need for Chinese banks to hold more liquid assets and gradually increase their capital to create buffers to absorb potential losses that could be expected during China’s economic downturn following a credit boom.

Source: Presstv

Cameroon has slapped a $6.6 million (FCFA3.6 billion) sanction on South Africa’s telecom giant MTN for failing to respect mobile phone identification procedures and the use of radio frequencies Johannesburg-based MTN Group, in its market update, confirmed the fine imposed by Cameroon’s Telecommunications Regulatory Board (ART) on its central Africa state branch.

Besides the financial penalty, ART has also reduced to 14 MTN Cameroon’s 15 years operating licence granted in March 2015, according to local media reports. In a statement on Saturday, MTN Cameroon said it had been notified of the ART sanction and “is in discussions with the regulator regarding the subject”.

The telecom enterprise said it would continue to educate its subscribers on the need to have their phone numbers identified to protect themselves and ensure full compliance with regulations governing the identification of subscribers.

As part of a counter-terrorism drive, the Cameroon government in September 2015, through a prime ministerial decree, obliged mobile telephony operators to identify or disconnect unidentified subscribers not later than June 30, 2016.

The order also stipulated that no individual would be allowed to own more than three SIM cards from same mobile network operator. Those who needed an exception were to provide concrete justifications for the request. MTN Cameroon CEO Philisiwe Sibiya said then that the firm was “leaving no stone unturned” to fully comply with the subscriber identification regulations.

“In addition to Service Centres, special identification mega-centres, hotspots, mobile caravans and contact points at the level of partners, MTN Cameroon employees, equipped with specific mobile equipment, shall ply the streets of towns and villages to identify subscribers,” she said.

But it is believed the telco company, which prides itself as market leader in the country with roughly 10 million subscribers, failed to or delayed disconnection of thousands of subscribers who operated unregistered sim-cards within that period. MTN was slapped with $1.7 billion fine by Nigeria last year for failing to disconnect unidentified sim-cards in that country.

Source: Today ng

The latest market figures show Russia has increased its purchases of gold to record highs in what appears to be part of the country’s policy to cushion itself against the sanctions of the United States. 

Figures released by the World Gold Council (WGC) show that the Central Bank of Russia bought 63 tonnes of the precious metal in the third quarter of 2017. The WGC added in a statement that the Russian stockpile of the bullion had already reached 1,778.9 tonnes as of the end of September.

In September only, the regulator added 34.6 tonnes of bullion to its reserves, in the highest monthly increase since October 2016, reported the Russian news website Sputnik News citing the country’s business newspaper Kommersant.

Currently, the Russian Central Bank has been ranked sixth in the world in terms of bullion reserves. The top five are the United States (8,133.5 tonnes), Germany (3,373.7), Italy (2,451.8 tons), France (2,435.9) and China (1,842.6).

At the same time, according to the WGC, the Russian Central Bank is leading in terms of the pace at which it is stockpiling gold.

Russia’s campaign to collect gold is meant to enable the country to have guarantees amid the tightening of the US Federal Reserve’s policy and amid the growing tensions between Moscow and Washington. Russia also wants to protect its reserves against possible geopolitical risks.

Market analysts also suggest that the Russian Central Bank will continue to expand its gold reserves.

If the Russian Central Bank continues to buy gold at the same pace Russia is likely to topple China as the world’s fifth-biggest holder of bullion in early 2018, according to Kommersant.

Culled from Presstv

Vodafone has announced the termination of its activities in La Republique du Cameroun. The company made public its decision today Friday, November 10, 2017 indicating that its truly over. After the withdrawal of its license by the Ministry of Posts and Telecommunications and the Telecommunications Regulatory Authority including the long suspension of its services, the multinational specialized in telecommunications reluctantly concluded that it was no longer commercially viable to resume its services in Cameroon.

As a result, Afrimax Cameroon ceased operations with immediate effect, “says a company official. Vodafone in a statement presented their sincere apologies to their customers, partners and suppliers “for the inconvenience caused”. They also thanked the loyal staff of Afrimax Cameroon for their hard work, enthusiasm and support.

The press release from Vodafone Cameroon also stated that the structure operated by Afrimax using the Vodafone trademark in accordance with the license agreement signed with the Vodafone Group has no equity interest in Afrimax or Vodafone Cameroon.

In mid-September 2017, the inexperienced  Francophone Minister of Post and Telecommunications suspended Vodafone Cameroon on the grounds that the company had sold all of its capital to Afrimax. The partnership signed in July 2017 between Vodafone and Cameroon Telecommunications (CAMTEL), the state-owned telecoms operator, stipulated that Vodafone Cameroon will use CAMTEL’s existing infrastructure that covers 100% the cities of Douala and Yaounde and will allow Vodafone to expand its geographical coverage throughout the country.

By Sonne Peter with files from CIN

New documents have revealed that British Prince Charles’s private estate invested hugely in an offshore firm that lobbied to alter deals on climate change.

Leaks from the newly-released Paradise Papers indicated that the Prince of Wales’s private estate, the Duchy of Cornwall, invested millions of pounds in offshore funds and companies to change climate agreements and allow “carbon credits” from rain forests to be traded.

Reports said the investment was regarded as highly sensitive and members of the estate had been sworn to secrecy about the Prince’s involvement.

This comes as the Prince of Wales has long been a vocal speaker on the issue of climate change, making speeches and writing books on the environment since the 1980s.

The main purpose of the Duchy of Cornwall is funding the “public, charitable and private activities of the Prince of Wales and his family.”

Some 53,000 hectares of land in 23 counties belong to the Prince of Wales’s private estate, with latest accounts showing it had assets of 913 million pounds in April.

Many of the leaked documents reveal how politicians, multinationals, celebrities and high-net-worth individuals use complex structures of trusts, foundations and shell companies to protect their cash from tax officials or hide their dealings behind a veil of secrecy.

The Paradise Papers also revealed that about 10 million pounds of the private funds of Britain’s Queen Elizabeth were placed in the Cayman Islands and Bermuda.

The tax evasion controversy adds to the debate on the Queen’s income that is estimated at around 100 million dollars for 2017.

Source: Presstv