As financial crises go, the Johannesburg Stock Exchange (JSE), Africa’s biggest bourse and one of the world’s top ten exchanges, had a pretty good one. Michael Dynes reports
After the great fall of 2008, which saw share values plummet to record lows in March 2009, recovery took hold and began to gain momentum. Within six months, and despite the toughest market conditions in living memory, the JSE All Share Index had bounced b...
World Finance speaks to Dr Ibraímo Ibraímo about the case for investing in the country’s business environment
The Governor of the Central Bank of Mozambique, Ernesto Gove, has given quite a positive view of the macroeconomic state of the country over the last five years: “Mozambique has a healthy and stable financial system as well as economy.” Can you commen...
Qatar’s real estate market offers attractive opportunities as interest in property investment in the Arab world begins to rise again
With the Qatari government committed to increasing services and improving infrastructure in the country – it has allocated $130bn to real estate and infrastructure development over the next six years – and as the country’s construction industry cont...
A novel public private partnership is stimulating privately financed infrastructure in Africa, writes Keith Palmer
There is a huge infrastructure deficit in Africa – more than $45bn per annum, according to the World Bank – and the current rapid economic growth is unsustainable without very large increases in infrastructure investment. But there is no way t...
As the island nation realigns its economy in the aftermath of the prolonged civil war, the banking and finance sector must innovate quickly to catch up for lost growth
Leading the way is Nations Trust Bank, Sri Lanka – the recipient of the World Finance award for Most Innovative Bank in Sri Lanka. In an age when banks and financial institutions are constantly placed under the microscope in terms of transparency, e...
CDG is a public financial institution created by the Moroccan State in 1959 with the mission of collecting and managing specific funds and savings that require legal protection
CDG manages saving funds mainly composed of social security funds and postal savings. The company also manages two public retirement and provident funds: CNRA and RCAR. Territorial development has been a key feature of CDG’s strategy in recent years...
As oil contracts grow, emerging markets are expected to contribute 75 percent of total global economic growth in 2011. But the economies of Kuwait, and the GCC, need to diversify to survive, writes Shoyeb Ali
If 2009 was the ‘Year of Hope,’ then 2010 will be remembered as the rather less pithy, ‘Year of Continued Recovery.’ Investors across the globe were seen eagerly reading and reacting to the various economic swings in various financ...
Buyout funds will target natural resources and industrial
goods in 2011, writes Joyce Ollunga
The most important fact for any investment in any country within the African space is that they have someone on the ground 352 days a year monitoring and mentoring investment companies. At Wentworth International we have made two recent investments, the f...
Caisse de Dépôt et de Gestion is now the largest Moroccan institutional investor, playing a key role in public development policies
The Caisse de Dépôt et de Gestion (CDG) is a public financial institution founded in 1959. The activities of the Caisse de Dépôt et de Gestion flow from its original mandate as legal custodian and manager of funds of private orig...
Dr Al-Horr, chairman and MD of the Barwa and Qatari Diar Research Institute, on his commitment to green building principles
The UN Environmental Programme is directing all developed countries to help emerging nations reduce carbon emissions from buildings and establish worldwide sustainable development assessment systems.Supporters of the UN drive for sustainable development a...
Raising capital and partnering with an international finance house are among strategies to turn PVI into a finance-insurance institution, says Chairman Nguyen Anhh Tuan
PetroVietnam Insurance Corporation (PVI) was established in 1996 as a captive insurance company for the Vietnam Oil & Gas Corporation currently known as the Vietnam National Oil & Gas Group (PetroVietnam). PVI has positioned itself as a leader in ...
Libya has in place a plan for the privatisation of its economic units, 50 percent of which are to be completed within 10 years
Up to date, 111 economic units have been privatised in the industrial sector ; within the next two years, it is expected that another 85 units will undergo privatisation and by the end of the next three years, it is envisaged that the total number of econ...
Michael Dynes on Africa’s economic recovery and medium to long-term prospects
Eighteen months after the onset of the US-led financial crisis and economic downturn – events which had appeared to shatter more than a decade of uninterrupted growth on the world’s poorest continent – Africa is bouncing back. Not only h...
Just over a year ago, Zimbabwe had the world’s worst modern-day hyperinflation and the national currency was worthless
Streets in central Harare were lined with black-market traders exchanging huge wads of Zimbabwean dollars for US dollars or South Africa rand.One trader, who did so well illegally dealing in foreign exchange he could afford to take a second wife, has take...
Saudi Arabia plans aid to Syria as ties improve
Saudi Arabia is discussing extending development loans to Syria as ties between the two countries improve but there will not be direct cash assistance, the Saudi central bank governor said.Diplomatic activity between Damascus and Riyadh has picked up in t...
European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...
Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.
In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.
A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.
A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.
While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.
Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.
Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes.
Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.
There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.
Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.
8 February 2007
HSBC warns of subprime mortgage losses
2 April 2007
New Century goes bus
14 September 2007
Wholesale markets have dried up
17 March 2008
Rescue of Bear Stearns
7 September 2008
Rescue of Fannie Mae
15 September 2008
Lehman Brothers file for bankruptcy
3 October 2008
US congress approves $700bn bailout
14 February 2009
$787bn stimulus approved by congress
The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve
The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks. The embargo lasted five months, and the effects are still seen today.
1923 – 1924
The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.
The Great Crash
Recovery and Recession
After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.
The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.