Welcome to QETA Newsletter 1 2017.

QETA 2017 CALENDAR OF EVENTS Feb 20 RBA Seminar 1 11.00 am Cannon Hill Anglican College

Feb 20 RBA Seminar 2 4.00 pm Venue to be confirmed

Feb 21 RBA Seminar 3 9.00 am Toowoomba Grammar School

Feb 22 RBA Seminar 4 7.00 am Cavendish Road State High School

Feb 22 RBA Seminar 5 9.30 am Marist College Ashgrove

Feb 23 RBA Seminar 6 9.30 am Gold Coast – Somerset College

Feb 28 2017 Subscriptions due

Apr 1 Econopak Number 1 published

May 20 Professional Development Morning Brisbane

Jul 1 Econopak Number 2 published

Jul 13 UQ Student Day

Jul 21 QUT Student Day

Jul 24-28 QETA Student Economics Competition

Sep 11 QETA Student economics Competition Presentation of prizes

Oct 1 Econopak Number 3 published

Oct 11 QETA Annual General Meeting

QETA NEWS 1. BECOME A QCS TEST MARKER

The Queensland Curriculum and Assessment Authority (QCAA) is looking for new Writing Task and Short

Response markers for the Queensland Core Skills (QCS) Test.

You are invited to apply to join the QCS Test marking team. As a QCS Test marker you will:

gain CPD points for registration renewal

network with like-minded professionals

earn extra income

gain practical insight into QCS Test marking

.

The 2017 marking operation will be held in Brisbane from Saturday 16 September to Friday 22

September.

For more information and to apply online, visit www.qcaa.qld.edu.au or email

qcsmarkerinfo@qcaa.qld.edu.au or phone (07) 3864 0367.

Applications are open from Monday 6 February to Tuesday 14 March 2017.

2. MEMBERSHIP

All memberships are now due. QETA operates our membership on a calendar year basis. You will receive

an invoice automatically, and it is due to be paid by 28th February 2017. The discounted rate for early

membership will expire on 31st March 2017. Costs of memberships are $77.00 (discounted to $71.50 prior

to 31 March) and $154.00 for school membership (discounted to $143.00 prior to 31 March). Prompt

payment of membership fees reduces the amount of work that our small Committee has to do in chasing

membership fees up.

3. RBA SEMINARS

The 2017 RBA Seminars are on again! The new presenter is Cathie Close, the Senior Representative of the

RBA in Queensland, following the departure of Karen Hooper from the RBA.

We look forward to the presentations from Cathie, and feel sure they will match the excellent

presentations given by previous RBA Representatives.

Bookings for these events ARE NOW OPEN, so if you need to book your students in, you will be able to do

so before you leave for holidays this year. Just go to www.qeta.com.au and follow the steps

The cost remains the same at just $5.50 per student and teacher.

Seminars are on:

Feb 20 11am at Cannon Hill Anglican College and 4pm at Brisbane Girls Grammar School

Feb 21 9.00am Toowoomba Grammar School

Feb 22 7am Cavendish Road State High School and 9.30am at Marist College Ashgrove

Feb 23 9.30am at Somerset College Mudgeeraba Gold Coast

4. ECONOMICS SYLLABUS

The Economics Syllabus is one of many that have been reviewed by the Learning Area Reference Group

and sent back to the Syllabus Committee for further consideration, in particular in reference to how

composite classes in Economics can work. QETA has no further details on the likely date for the next

release of the syllabus.

TEACHING RESOURCE

PROFESSIONAL LEARNING Twenty-one Goals Every Educator Should Make in 2017

A hat tip to Russell Earnshaw for suggesting this blog from Kelly Crow, the Wired Educator. He suggests

21 ways to enhance and enrich your work as a teacher over the...

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

NCEE Annual Financial Literacy and Economic Education Conference

October 5-7

Marriott Hotel, Brooklyn, New York.

This is the 56th Conference – always a good one to attend if you have the time and money! Add it to your

holiday and offset with a tax deduction!

http://councilforeconed.org/events/cee-national-conference/

RESOURCES

1. FROM THE FEDERAL TREASURY

Tax integrity - increasing administrative penalties for significant global entities

In the 2016-17 Budget, the Government announced that it would increase administrative penalties

imposed on companies with global revenue of $1 billion or more who fail to adhere to tax disclosure

obligations. This measure forms part of the Government’s Tax Integrity Package, which will strengthen the

integrity of Australia’s tax system.

Closing date for submissions: Friday, 13 January 2017

Read more

Review of the Petroleum Resource Rent Tax

On 30 November 2016, the Treasurer the Hon Scott Morrison announced a review into the design and

operation of the Petroleum Resource Rent Tax, crude oil excise and associated Commonwealth royalties to

provide advice on the extent to which they are operating as intended.

The review is being led by independent expert Michael Callaghan, with the support of a Secretariat within

the Commonwealth Treasury.

Closing date for submissions: Friday, 3 February 2017

Read more

Government response to the Senate Community Affairs References Committee Report -

Bridging our growing divide: inequality in Australia, The extent of income inequality in

Australia

This response addresses the recommendations raised in the Bridging our growing divide: inequality in

Australia, The extent of income inequality in Australia report, and has been coordinated and prepared by

the Treasury.

Read more

2. FROM THE ABS

5302.0 Balance of Payments and International Investment Position, Australia, Jun 2016 (Additional

Information)

http://www.abs.gov.au/ausstats/abs@.nsf/mf/5302.0?OpenDocument

6227.0 Education and Work, Australia, May 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6227.0?OpenDocument

3101.0 Australian Demographic Statistics, Jun 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0?OpenDocument

5232.0 Australian National Accounts: Finance and Wealth, Sep 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/5232.0?OpenDocument

6202.0 Labour Force, Australia, Nov 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0?OpenDocument

6416.0 Residential Property Price Indexes: Eight Capital Cities, Sep 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0?OpenDocument

5671.0 Lending Finance, Australia, October 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/5671.0?OpenDocument

6291.0.55.001 Labour Force, Australia, Detailed - Electronic Delivery, Nov 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6291.0.55.001?OpenDocument

6291.0.55.003 Labour Force, Australia, Detailed, Quarterly, Nov 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6291.0.55.003?OpenDocument

6224.0.55.001 Labour Force, Australia: Labour Force Status and Other Characteristics of

Families, June 2015 (Replacement Content)

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001?OpenDocument

5368.0 International Trade in Goods and Services, Australia, Nov 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/5368.0?OpenDocument

6224.0.55.001 Labour Force, Australia: Labour Force Status and Other Characteristics of

Families, June 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001?OpenDocument

6354.0 Job Vacancies, Australia, Nov 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6354.0?OpenDocument

5609.0 Housing Finance, Australia, November 2016

http://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0?OpenDocument

3. FROM THE IMF

Why Productivity Growth is Faltering in Aging Europe and Japan

Many countries are experiencing a combination of declining birth rates and increasing longevity. In other

words, their populations are aging. And graying populations pose serious issues for people, policymakers,

and society.

Health care costs rise, mainly because older people need more of it. Pension payments—whether from

public or private plans—also increase at the same time there are relatively fewer younger workers paying

into the pension systems. And there are also fewer people producing goods and services relative to the

total population. The old-age dependency ratio—the number of people over 65 divided by the number of

people between 15 and 64—rises. In other words, there are economic strains and many countries that

haven’t faced them yet will soon. One way to alleviate those strains would be to increase the amount of

goods and services each worker produces—that is to boost productivity. Productivity is a major driver of

economic growth. When it is rising, more goods and services are produced from the same amount of

input—giving society more output to divvy up. When productivity is falling, GDP growth is retarded. Read

more

Infrastructure Done Right

In the face of crumbling bridges and super-low interest rates, many countries are talking and planning to

increase spending on infrastructure. And it’s not just about more spending; it’s about smart spending. This

is something that the IMF has urged countries to consider for several years, starting with our Fall 2014

World Economic Outlook.

Bridges, roads, and highways, along with telecoms, ports and airports are all part of the backbone that

supports a country’s growth and the global economy. Investing in building schools, public housing and

hospitals, known as social infrastructure, can provide a powerful impetus for economic activity and jobs in

countries. Canada and the United Kingdom have announced and begun plans to invest billions in the

coming years to fix and modernize their infrastructure, sorely in need of an upgrade. The incoming U.S.

Administration has also indicated its intention to increase investment in infrastructure. Read more

A Shifting U.S. Policy Mix: Global Rewards and Risks

After a year marked by financial turbulence, political surprises, and unsteady growth in many parts of the

world, the Fed’s decision this month to raise interest rates for just the second time in a decade is a

healthy symptom that the recovery of the world’s largest economy is on track. The Fed’s action was hardly

a surprise: markets had for weeks placed a high probability on last week’s move. But market

developments preceding the Fed decision did surprise many market watchers.

Especially striking were the sharp upward moves in longer-term U.S. interest rates, the dollar, and

market-based measures of long-term inflation expectations soon after the U.S. presidential and

congressional elections of November 8. No comparably abrupt market reactions preceded the Fed’s

previous interest rate hike of December 2015. The dollar has risen further in the days following the Fed’s

recent move. Read more

Asia in 2017 and Beyond: Prepare for the Unexpected by Building Resilience

http://www.imf.org/en/News/Articles/2017/01/17/SP011717-Asia-in-2017-and-Beyond-Prepare-for-the-

Unexpected-by-Building-Resilience

Transcript of a Press Briefing On Update Of The World Economic Outlook

http://www.imf.org/en/News/Articles/2017/01/16/tr01162017-Press-Briefing-On-Update-Of-The-World-

Economic-Outlook

World Economic Outlook Update, January 2017: A Shifting Global Economic Landscape After a

lackluster outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in

emerging market and developing economies. However, there is a wide dispersion of possible outcomes

around the projections, given uncertainty surrounding the policy stance of the incoming U.S.

administration and its global ramifications. The assumptions underpinning the forecast should be more

specific by the time of the April 2017 World Economic Outlook, as more clarity emerges on U.S. policies

and their implications for the global economy. Read more...

http://www.imf.org/external/pubs/ft/weo/2017/update/01/index.htm

4. FROM WORLD BANK

Global Community Makes Record $75 Billion Commitment to End Extreme Poverty

More than 60 donor and borrower governments agreed today to commit $75 billion to the International

Development Association (IDA), the World Bank’s fund for the poorest countries. Read More »

Website | Blog | Podcast | Video | Slideshow

Risks and Returns

Financial trade-offs are often necessary to achieve sustainable, inclusive growth. A new report explores

the relationship between four key areas of financial development and provides a robust framework for

policy makers to set priorities and manage these trade-offs. Read More »

Year in Review: 2016 in 12 Charts (and a video)

A look at the data reveals some of the challenges we face but also the progress we’ve made toward a

more peaceful, prosperous, and sustainable future. Read More »

Climate-smart transport is key to development

Transport infrastructure is particularly vulnerable to the effects of climate change, but this is also one of

the sectors where emissions are rising the fastest. Read More »

Imagining infrastructure services in 2017

A few months ago, UNICEF created a project around John Lennon’s “Imagine" to highlight the plight of

millions of refugee children. Watch More »

Global Growth Edges Up to 2.7 Percent Despite Weak Investment

Global Economic Prospects 2017 says growth in emerging market and developing economies should pick

up to 4.2 percent this year. Read More »

Website | Report | Blog

A New Addition to Trade & Competitiveness Data

The World Bank Group’s newest open data portal aggregates 2,000 indicators on trade and

competitiveness data from more than 20 different sources. Read More »

5. FROM THE RBA

The Reserve Bank of Australia has released the following Research Discussion Paper today:

RDP 2016-10, ‘The Effect of Consumer Sentiment on Consumption’, by Christian Gillitzer and Nalini

Prasad

http://www.rba.gov.au/publications/rdp/2016/2016-10.html

The Reserve Bank of Australia has released the Minutes of the December 2016 Monetary Policy

Meeting of the Reserve Bank Board.

https://www.rba.gov.au/monetary-policy/rba-board-minutes/2016/2016-12-06.html

The Bulletin for the December Quarter 2016 has been released by the Reserve Bank of Australia.

http://www.rba.gov.au/publications/bulletin/2016/dec/

For your information the Reserve Bank of Australiaissued the Financial Aggregates for November 2016.

You can view this statistical release at:

https://www.rba.gov.au/statistics/frequency/fin-agg/2016/fin-agg-1116.html

The Reserve Bank of Australia has released the January 2017 issue of the Chart Pack.

You can view the Chart Pack at:

https://www.rba.gov.au/chart-pack/

The Reserve Bank of Australia ernoon issued the Index of Commodity Prices for December 2016. You

can view this statistical release at:

https://www.rba.gov.au/statistics/frequency/commodity-prices/2016/icp-1216.html

6. FROM TUTOR2U

An unusual take on Debt Forgiveness

Back in the Cold War era, both Cuba and what was Czechoslovakia were part of the Soviet communist

bloc. With no access to what were termed the 'western currencies' -...

http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B

Which countries have the fastest internet speed?

A small island nation hoping to build and retain competitive advantage in digital industries would hope to

be well up global league tables in terms of internet speed. Sadly the...

http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B

Hyperinflation in Venezuela - In Real Life

This is a superb short radio clip from Radio 4 on life in Venezuela, a country with three exchange rates and

suffering from hyperinflation. Gideon Long tries not to lose all...

http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B

Model agencies found guilty of price fixing

Here is a model exam example of collusion in markets!

http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B

Uber defies demand to stop using self-driving cars

Uber seems prepared to flout the law with its self-driving cars - being prepared to ignore the California

Attorney-General and continue to run its self-driving cars in San Francisco.

http://tutor2u.cmail20.com/t/ViewEmail/j/2CF9DA27BA4427F1/AECED1810B6D435DD8E2A916412CAE5B

Ten Economists I Follow on Twitter

There are lots of Economists who are active in the twitter sphere. Here is my selection of ten who inform,

enrich, amuse and engage in equal measure!

http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B

An age of hyper-uncertainty

Here is a pithy and thought-provoking piece from Professor Barry Eichengreen. 40 years on from JK

Galbraith's Age of Uncertainty, Eichengreen argues that 2017 is riven with many more significant

unknowns. It...

http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B

Secondary ticket markets - blessing or curse for consumers?

The secondary ticket market is one that arose strong emotions. For some it is a chance to snap up tickets

for a must-see event or off-load tickets when personal circumstances...

http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B

Evaluating air pollution as a public hazard

Always nice to hear "The Prodigy" on the BBC and that's the backing track throughout this clip - however,

the economics in this video clip are fascinating.

http://tutor2u.cmail19.com/t/ViewEmail/j/32C7E7736F5A9A4B/AECED1810B6D435DD8E2A916412CAE5B

The Best Year in Our History?

"Extreme poverty, child mortality, illiteracy, and global inequality are at historic lows; vaccinations, basic

education, including girls, and democracy are at all-time highs."

http://tutor2u.cmail2.com/t/ViewEmail/j/538B476F04F4D05F/AECED1810B6D435DD8E2A916412CAE5B

Natural Capital - The Battle for Biodiversity

Annually, the world spends nearly $40 billion on pesticides but only $50 billion a year on protecting bio-

diversity. To sustain We are destroying the natural resources, wildlife and habitats that we depend...

http://tutor2u.cmail20.com/t/ViewEmail/j/697F409F0781BE64/AECED1810B6D435DD8E2A916412CAE5B

Martin Wolf on Global Economy in 2017

In this ten minute interview, Martin Wolf and Lionel Barber from the FT discuss prospects for the world

economy.

http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B

Informal labour market

Study notes

Also known as the “grey” market, shadow economy, or black economy. This is the part of the economy

that is not taxed or regulated by government, and therefore does not...

http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B

What is a behavioural nudge?

Study notes

A nudge is a technique used by choice architects in order to change someone’s behaviour in a very easy

and low-cost way, without reducing the number of choices available....

http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B

Mandated Choice

Study notes

Mandated choice is a situation or scenario in which people must make a decision in advance with respect

to whether they wish to participate in a particular action – they are...

http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B

Intertemporal choice

Study notes

Inter-temporal choice is the study of how people make choices about what and how much to do at various

points in time, when choices at one time influence the possibilities...

http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B

Gig Economy - Poor Working Conditions and Wages

How is the labour market being affected by the rise to prominence of the Gig Economy?

http://tutor2u.cmail19.com/t/ViewEmail/j/E7BB4D052AC988E9/AECED1810B6D435DD8E2A916412CAE5B

India overtakes the UK and becomes 5th largest economy

Accelerated by the post-Brexit depreciation of sterling against the US dollar but part of a much bigger shift

in the centre of gravity in the world economy, the value of...

http://tutor2u.cmail20.com/t/ViewEmail/j/02AF1690A978B56B/AECED1810B6D435DD8E2A916412CAE5B

Special Economic Zones and Growth in Bangladesh

Few countries in recent times have given more attention to setting up special economic zones than

Bangladesh.

http://tutor2u.cmail19.com/t/ViewEmail/j/6B10A3B0F40441DE/AECED1810B6D435DD8E2A916412CAE5B

China in Transition: Call for end to the iron rice bowl

The Chinese economy has been talking about reform, and reform of the working practices of China's state-

owned enterprises SOEs is an important part of this.

http://tutor2u.cmail20.com/t/ViewEmail/j/7CD70BF58438A24A/AECED1810B6D435DD8E2A916412CAE5B

Are trade unions needed more than ever?

According to the Guardian, the answer is a resounding yes. This editorialeditorial highlights the continued

need for trade unions in the modern economy, a counterweight to lots of the anti-union...

http://tutor2u.cmail20.com/t/ViewEmail/j/7CD70BF58438A24A/AECED1810B6D435DD8E2A916412CAE5B

Externalities - Gold mining in Ghana hurts farm productivity

The expansion of large-scale gold mining in Ghana has led to a big reduction in agricultural productivity

and output – and a significant increase in rural poverty. Environmental pollution from the...

http://tutor2u.cmail20.com/t/ViewEmail/j/7CD70BF58438A24A/AECED1810B6D435DD8E2A916412CAE5B

Best Films of 2016 for Behavioural Economics!

Behavioural Economics meets Hollywood - a great post from Cass Sunstein (co-author of Nudge) on the

behavioural economics embedded into some of the year's top films. Some interesting behavioural biases...

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

Behavioural Economics - Default Bias

Revision videos

The default choice or default option is the option that a consumer “selects” if he or she does nothing.

Studies have shown that consumers rarely change the default settings. So,...

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

Behavioural Economics - Bounded Rationality

Revision videos

Bounded rationality is the idea that the cognitive, decision-making capacity of humans cannot be fully

rational because of a number of limits that we face.

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

Behavioural Economics - Introduction

Revision videos

Behavioural Economics tries to mix insights from Psychology with Economics, and looks at problems

through the eye of a “Human”, rather than an “Econ”.

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

Behavioural Economics - Herd Behaviour

Revision videos

Herd behaviour is a phenomenon in which individuals act collectively as part of a group, often making

decisions as a group that they would not make as an individual.

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

Behavioural Economics - Social Norms

Revision videos

Traditional economics assumes that people make choices independently of one another. Behavioural

economists believe that most decisions are taken in a social context within social networks. Individuals are

influenced by...

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

Chains of Reasoning - Public Goods and Market Failure

Revision videos

Analysis should occur through a clear chain of reasoning. This short revision video build a chain of

reasoning explaining why pure public goods can lead to market failure because the...

http://tutor2u.cmail19.com/t/ViewEmail/j/7679DBC1997C73AF/AECED1810B6D435DD8E2A916412CAE5B

Chains of Reasoning - Allocative Efficiency

Exam technique advice

This short video explains how to build a chain of reasoning to help explain how a firm operating in perfect

competition will arrive at an equilibrium price and output that...

http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B

Exam Technique - Building Chains of Analysis

Exam technique advice

Analysis needs to include more than just ‘one thing leads to another thing.’ This answer may be marked

as ‘knowledge’ and not ‘analysis’. This short video looks at an example...

http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B

Average and Marginal Cost of Labour

Revision videos

This short revision video looks at a numerical example of the difference between the average and marginal

cost of employing extra workers when a business has to raise the average...

http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B

The Labour Force

Revision videos

The labour force is all people who are of working age, and able and willing to work. A key revision point is

that the labour force includes both the employed,...

http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B

Monopsony in the Labour Market

Revision videos

Monopsony is a labour market structure in which there is a single powerful buyer of a particular type of

labour. For example, the main buyer of the labour of doctors...

http://tutor2u.cmail20.com/t/ViewEmail/j/8C96AFF52D20CA57/AECED1810B6D435DD8E2A916412CAE5B

Geographical Immobility

Revision videos

Geographical mobility is the ability of labour to move around an area, region or country in order to work.

Geographical mobility is affected by things such as family ties, transport...

http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B

Occupational Immobility

Revision videos

Occupational mobility is the ability of labour to switch between different occupations. Occupational

mobility is affected by the level of transferable skills and educational requirements of jobs. This short

revision...

http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B

Age Dependency Ratio

Revision videos

The (age) dependency ratio is the ratio of dependents (i.e. people younger than 16 or older than 65) to

the working-age population.

http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B

2016 Global Economy in Ten Charts

Lots to get your teeth into here - ten charts that look at the forces that have shaped the global economy

in 2016, including the effect of the Tangerine Dream -...

http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B

An Animated Guide to Abenomics

This is so good! Reuters has produced an animated guide to recent Japanese travails, highlighting the

dangers of inflation, the nature of Abenomics, and looking at whether the policies have...

http://tutor2u.cmail19.com/t/ViewEmail/j/1AAB600016A5DFBD/AECED1810B6D435DD8E2A916412CAE5B

The Journey of an iPhone from Factory to Retail Store

You could make a case for using this one article to revise almost the entire A level economics course! The

New York Times follows the journey of an iPhone from...

http://tutor2u.cmail20.com/t/ViewEmail/j/FB52B965D95C37C4/AECED1810B6D435DD8E2A916412CAE5B

Sustaining rapid growth in Ethiopia

Ethiopia has continued to experience rapid growth despite he challenges of drought, social unrest and a

chronic trade deficit and volatile currency. The latest report from the World Bank on...

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Key Diagrams - Long Run Average Cost

Revision videos

This short revision video looks at the long run average cost curve.

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50 Things That Made the Modern Economy

Don't worry if you have missed any of Tim Harford's new series on 50 Things That Made the Modern

Economy. We are curating a list of the supporting articles so that...

http://tutor2u.cmail20.com/t/ViewEmail/j/45BE3860A1C1D52E/AECED1810B6D435DD8E2A916412CAE5B

Evaluating Executive Pay Caps

Revision videos

In this short revision video we look at the evidence for the huge gap in pay between CEOs and average

workers and consider some of the arguments for and against...

http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B

Labour Markets - Key Measurements

Study notes

The labour market is studied in detail by economists. Here are some of the key measures used in

assessing changes in the labour market.

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Transfer Earnings and Economic Rent

Revision videos

Earnings to the factor of production labour are made up of wages plus overtime pay, bonuses and

commission. This short revision video looks at the difference between transfer earnings and...

http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B

Not Quite the Vinyl Countdown

Really interesting article here about changes in consumer tastes - with sales of vinyl at their highest since

1991 and vinyl sales outstripping digital downloads too. However, there's even more depth...

http://tutor2u.cmail19.com/t/ViewEmail/j/C1AE4A78702D8D95/AECED1810B6D435DD8E2A916412CAE5B

Labour Markets - Evaluating Marginal Revenue Product of Labour

Revision videos

This short revision video looks at the problems in accurately measuring the marginal revenue product

from employing an extra worker.

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Labour Markets: Marginal Revenue Product of Labour

Revision videos

Marginal revenue product of labour (MRPL) is the extra revenue generated when an additional worker is

employed.

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Key Diagrams - Minimum Efficient Scale

Revision videos

This short revision video considers the concept of the minimum efficient scale.

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China's Future Economy

The FT's Beijing Correspondent Yuan Yang journeys into the manufacturing heartlands of the Chinese

interior and finds that rapid industrial growth is giving way to less secure and less well...

http://tutor2u.cmail19.com/t/ViewEmail/j/392C34C6D5251ECE/AECED1810B6D435DD8E2A916412CAE5B

India's Dynamic Progress in Clean Energy

Tamil Nadu in India is home to the world's largest solar energy farm and a newly opened industrial plant is

capturing the CO2 emissions from a coal boiler and using...

http://tutor2u.cmail19.com/t/ViewEmail/j/392C34C6D5251ECE/AECED1810B6D435DD8E2A916412CAE5B

Revision Webinar - Business Costs

Revision videos

This revision webinar focuses on the short run costs of businesses. It includes with examples a distinction

between fixed and variable costs, average, marginal and total costs and short and...

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Who wants to be a Trillionaire?

This Marginal Revolution clip is excellent, and tongue-in-cheek in looking at the Zimbabwean economy.

http://tutor2u.cmail19.com/t/ViewEmail/j/392C34C6D5251ECE/AECED1810B6D435DD8E2A916412CAE5B

Be an Economist (and be less stressed!)

A favourite question I am often asked by prospective Economics students (and their families) is 'what

career can I have with an Economics qualification?' My stock answer generally revolves...

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Shut Down Point in Action: Jamie Oliver Closes 6 Restaurants

Here is a good contextual example of the shut-down point in action. Six of the 42 Jamie's Italian

restaurants are to close down with the business citing rising variable costs caused...

http://tutor2u.cmail2.com/t/ViewEmail/j/8BA948C45183AA5D/AECED1810B6D435DD8E2A916412CAE5B

Crash and the Michael Fish Moment for Economists

Here's a summary from the BBC regarding the similarities between Michael Fish's hurricane-forecasting

disaster from 1987 and the failure of central banks to correctly forecast the financial crisis and the

immediate...

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Indifference Curves - Falling Market Prices

Revision videos

This short revision presentation uses indifference curves to show the effects of a fall in market price on

equilibrium consumer choice.

http://tutor2u.cmail20.com/t/ViewEmail/j/0E7D1538F07FAE07/AECED1810B6D435DD8E2A916412CAE5B

Indifference Curves and Consumer Equilibrium

Revision videos

This short revision video looks at consumer equilibrium with indifference curves and budget lines.

http://tutor2u.cmail20.com/t/ViewEmail/j/0E7D1538F07FAE07/AECED1810B6D435DD8E2A916412CAE5B

Indifference Curves

Revision videos

An indifference curve shows combinations of goods and services between which a consumer is indifferent

http://tutor2u.cmail20.com/t/ViewEmail/j/0E7D1538F07FAE07/AECED1810B6D435DD8E2A916412CAE5B

Trade Creation

Revision videos

Trade creation takes place when domestic consumers in countries import more goods and services as

import prices fall due to a removal of import tariffs and import quotas; production will...

http://tutor2u.cmail2.com/t/ViewEmail/j/1D0A987D6C0A11AA/AECED1810B6D435DD8E2A916412CAE5B

Revealed Advantage - Global Clothing Exports 1980-2015

Revision videos

This short revision video looks at the changing pattern of global exports of clothing since 1980. China

dominates world export sales with a 38% share in 2015 but countries such as Vietnam, Bangladesh,...

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Absolute Advantage

Revision videos

If a country using the same factors of production can produce more of a product, then it has an absolute

advantage.

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Global Output in 2016 - Emerging Countries Dominate

Revision videos

This is a short revision video looking at two key charts from the IMF World Economic Outlook. One shows

the percentage share of the main industrialized and emerging countries in...

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Fixing Globalisation – Jim O’Neill in conversation with George Osborne

This is a 17 minute interview that might be used an enrichment for students evaluating the challenges to

globalisation.

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The End of China Inc?

This is a follow-up to the blog about Robert Peston's analysis of prospects for the Chinese economy. I

think this report from Al Jazeerah is significantly better - not least...

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Import Tariffs and Economic Welfare

Revision videos

This short revision video looks at the impact of an import tariff on consumer and producer welfare.

http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B

Import Tariffs - Basic Analysis Diagram

Revision videos

This short revision video takes students through the basic analysis diagram showing the effects of a tariff

introduced into a domestic market.

http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B

Fixing Globalisation

An excellent series on BBC Radio 4 by Jim O'Neill this month, entitled The New World, interviewing a wide

range of commentators including Dani Rodrik, Yanis Varoufakis, Paul Mason, Jim Yong...

http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B

Countries that Export Printing Presses

This has to be a go-to example of first mover advantage and retaining competitive advantage!

http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B

Customs Unions

Revision videos

A short revision video on customs unions and how they differ from single markets.

http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B

Import Dumping

Revision videos

Dumping happens when firms sell their products abroad in export markets at below costs or significantly

below prices in the home market.

http://tutor2u.cmail19.com/t/ViewEmail/j/261B98F46F1C524A/AECED1810B6D435DD8E2A916412CAE5B

Chain of Reasoning - The Terms of Trade

Exam technique advice

This short exam technique video looks at building chains of reasoning to answer a question: Explain two

economic effects of an improvement in the terms of trade.

http://tutor2u.cmail19.com/t/ViewEmail/j/657E9453B4C4676C/AECED1810B6D435DD8E2A916412CAE5B

Australian Beef Farming and Economies of Scale

This clip looks at how Australian beef farmers have responded to rising demand from Asian consumers, led

by Australian Agricultural who have made the most of their economies of scale...

http://tutor2u.cmail19.com/t/ViewEmail/j/657E9453B4C4676C/AECED1810B6D435DD8E2A916412CAE5B

Could a national maximum wage work?

On Tuesday's Today programme, Jeremy Corbyn suggested that introducing "maximum pay" would be an

effective way of reducing inequality and tackling the issue of overly-high pay in the boardroom (see...

http://tutor2u.cmail19.com/t/ViewEmail/j/657E9453B4C4676C/AECED1810B6D435DD8E2A916412CAE5B

Export Dependency on the United States Economy

Revision videos

This short video looks at evidence of the depth of trade dependency on the US economy

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Alternative Measures of Income Inequality

Revision videos

This short revision video looks at two alternative measures of the scale of income inequality - namely the

S80-S20 ratio and the Palma Ratio. The video draws on the...

http://tutor2u.cmail20.com/t/ViewEmail/j/8E0A7C98833CB477/AECED1810B6D435DD8E2A916412CAE5B

The Gini Coefficient

Revision videos

The Gini coefficient measures the inequality among values of a frequency distribution (for example levels

of income).

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The Lorenz Curve

Revision videos

The Lorenz curve is the graphical / visual representation of income or wealth distribution developed by

American economist Max Lorenz in 1905.

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Indifference Curves - Income and Substitution Effects for Inferior Goods

Revision videos

In this revision video we look at the income and substitution effects for an inferior good

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Indifference Curves - Income and Substitution Effects for Normal Goods

Revision videos

In this revision video we work through how to show the substitution and income effects arising from a fall

in the market price of a product, in our example we...

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Indifference Curves - Rising Income and Normal Goods

Revision videos

This short revision video consider how demand for two normal goods (with a positive income elasticity of

demand) is affected when real income increases. The video uses indifference curve analysis...

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Indifference Curves - Rising Income and Inferior Goods

Revision videos

This short revision video takes you through the key analysis diagram when using indifference curves to

show the effect of a rise in real income when one of the products...

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Multiple Choice Technique: Information as a Public Good

Revision videos

In this revision clip we look at an exam question on whether information services are public or private

goods?

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Multiple Choice Technique: Changing Market Prices

Revision videos

This revision clip on economics exam technique focuses on shifts in market demand and market supply

and the impact on equilibrium price and quantity supplied. It is good technique to...

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Development: the problem of 'failing states'

According to The Economist, few things matter more than fixing failed states. Broadly defined, state

failure provides “a general explanation for why poor countries are poor”.

http://tutor2u.cmail19.com/t/ViewEmail/j/BA7B63C9EC773EEC/DBB4D903609C5F7D2438807772DD75D1

8 billionaires own the same wealth as the poorest half of the world's population - does it

matter?

Oxfam have updated their list and comparison of the world's super-rich showing that the top 8 wealthiest

people own the same wealth as the poorest half of the world's population. You...

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Zombie firms and weak productivity growth

Are zombie firms crowding out investment and holding back productivity growth? This article from the

Economist draws on a new research report from the OECD

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The Debt Deficit Distinction

KAL from the Economist provides the artistic genius behind this short video from the Economist

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Government debt and the interest burden

There has been a significant increase in the size of public sector debt in many advanced countries since

the Global Financial Crisis (GFC) engulfed nations in the autumn of 2007. But...

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Relative size of major world economies

Revision videos

Prompted by new data published by the World Bank, this short video explores the relative size of the

world's largest economies. Will 2017 be a year when the centre of gravity...

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Global Economy 2016 in 12 Charts (and a video)

A terrific source of information curated here by the World Bank. Here are 12 charts that help tell the

stories of the year.

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Indifference Curves - Cross Price Elasticity and Substitutes

Revision videos

In this short revision video we use indifference curves to illustrate the concept of cross price elasticity of

demand for two substitute products.

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7. FROM WORLD ECONOMIC FORUM

The theme of the meeting calls on global leaders to renew the systems that have supported international

cooperation in the past by adapting them to today’s complex, multipolar world in ways that foster

genuinely inclusive and equitable growth.

To build on this theme, the programme focuses on five “gravity centres”, each constructed to help

leaders address distinct yet related critical challenges in 2017:

Strengthening Systems for Global Collaboration: Updating and re-designing our systems for

international cooperation to better manage the effects of globalization

Addressing Identity through Positive Narratives: Inspiring optimism and trust in the future, even as

our world gets smaller and more complicated

Revitalizing the Global Economy: Developing the skills and deploying the capital to address slow

growth, unemployment and financing the Sustainable Development Goals

Reforming Market Capitalism: Addressing short-term thinking, self-interested behaviour and

corruption to build a new compact between business and society

Preparing for the Fourth Industrial Revolution: Preparing workers and economies for the coming

convergence of technology and humanity

“Our world continues to become increasingly interdependent, even as political events signal a desire for

isolation and a retreat from globalization. To address both of these daunting forces, we must strive for

better global governance and leadership systems that are responsive to the need for social inclusion and

responsible in finding constructive answers to our multiple global challenges,” said Klaus Schwab, Founder

and Executive Chairman, World Economic Forum.

8. FROM BUSINESS COUNCIL OF AUSTRALIA

Release of Competitive Project Approvals Report

The Business Council has released a new report calling for COAG to commit to reform major project

planning approvals systems in the States and Territories.

The Competitive Project Approvals report sets out a best practice model for project approvals that we

would like to see included in planning and zoning reforms being considered by Australian governments in

their response to the Harper review of competition policy arrangements.

Our model streamlines approvals, reducing timelines and costs, while maintaining Australia’s strong

environmental and community protections. It will support faster delivery of government and private

infrastructure projects and make Australia a more attractive destination for capital investment that grows

national income.

9. FROM GAP MINDER

Dollar Street is live!

Imagine that everyone in the world lives in one street, and your house number is your income. That’s the

Dollar Street idea. And now you can see what it looks like.

The poorest live to the left and the richest to the right. Everybody else live somewhere in-

between. Where do you live? How is your home different from other homes on your income level, in other

continents?

In the news, people from other countries seem stranger than they really are. Visit dollarstreet.org to find

out how people really live!

We have collected photos from homes across the World. Today we’ve got more than 200 homes from 50

countries. And all images are free to use, share and edit as you wish under Creative Commons 4.0

License.

Updated Gapminder World Poster 2015!

Because of contributions from Gapminders on Facebook, we have added the latest Life Expectancy data

from IHME in our Socio-Economic World Map!

It shows the Life Expectancy and Income of 182 nations in the year 2015. It's clear in this chart that there

are not two groups of countries. There is no developing vs. developed, rich vs. poor. Instead of labeling

countries in two groups, we suggest using the 4 income levels marked on the chart.

Almost no country on the richest level has really short life expectancy, and no country on the poorest level

has long life expectancy. Most people live in the middle. There are huge differences in life expectancy in

the middle, depending on how income is used.

Download it, hang it next to the world map in your wall, and spread the word! You can also play with the

interactive bubble chart here: gapminder.org/tools

10. FROM TED TALKS

"The actual path of a raindrop as it goes down the valley is unpredictable, but the general direction is

inevitable," says digital visionary Kevin Kelly -- and technology is much the same. Kelly explores three

trends in tech we need to understand right now. Watch »

As a black woman from a tough part of the Bronx who grew up to attain all the markers of academic

prestige, Dena Simmons knows that for students of colour, success in school sometimes comes at the cost

of living authentically. Now an educator herself, Simmons discusses how we might create a classroom

that makes all students feel proud of who they are. Watch »

David Autor: Why are there still so many jobs?

Here's a paradox you don't hear about: Though machines and computers are constantly being created to

do human jobs, the proportion of adults in the US with a job has consistently gone up for the past 125

years. Which begs the question: Why hasn't human labor become redundant and our skills obsolete? In

this talk about the future of work, economist David Autor takes on the question of why there are still so

many jobs -- and comes up with a surprising, hopeful answer.

Watch now »

Maps: These 7 new maps offer a fresh perspective on our world »

And a new way of seeing ourselves ...

The world is changing much more rapidly than most people realize, says business educator Eddie Obeng --

and creative output cannot keep up. In this spirited talk, he highlights three important changes we

should understand for better productivity, and calls for a stronger culture of “smart failure." Watch

»

Money: Would universal income save the world? Maybe. But why not try these three (slightly easier)

options first >>

The idea of universal basic income (UBI) is so hot right now! But it might not be the only, or the best, way

to create more opportunity for all

11. FROM DFAT

Second anniversary of KAFTA

The Korea-Australia Free Trade Agreement is a vital element in trade between Australia and Korea that is

delivering strong results across export sectors and creating new Australian jobs. A fourth round of KAFTA

tariff cuts will come into effect on January 1 next year. Minister for Trade, Tourism and Investment Steven

Ciobo said the further cuts would deliver yet another boost for exporters looking to meet Korean demand

for premium Australian products.

DFAT: Media Release

DFAT: KAFTA Guide

Discovering Australia's next generation of resources

The Australian Government is supporting the development of the next wave of mineral, energy and

groundwater resources with work now underway on the $100 million Exploring for the Future program.

“Around 80 per cent of Australia remains under-explored. Tapping into Australia’s undiscovered potential

is the key to not only securing a healthy ongoing supply of mineral, energy and groundwater resources

but also our long-term prosperity,” Minister for Resources and Northern Australia Matt Canavan said.

Industry: Media Release

WTO reflects on year that was

The WTO’s latest report highlights persistent global economic challenges this year that continue to weigh

on international trade. The number of new trade-restrictive measures introduced over the year was

worryingly high given continuing global economic uncertainty and the WTO's downward revision of its

trade forecasts. The WTO also urges members to ensure the benefits of trade are more widely spread and

better understood.

WTO: 2016 Trade Overview

ABS Data Release: international trade in goods and services

The ABS’ October trade figures show that in seasonally adjusted terms, goods and services exports rose

$389m or one per cent to $27,631m over the month. Non-rural goods rose $223m, or by one per cent,

and non-monetary gold rose $198m, or by 13 per cent. Services exports rose $121m or by two per cent.

ABS: October Trade

DFAT: Trade and Investment Statistics

12. FROM IAG

8 December 2016

Energy price hikes: Why is it happening?

Read the Blog >

13 December 2016

Energy reform is urgent to avoid systemic crises

Find out more >

7 December 2016

GDP disappointing but not unexpected

Find out more >

12. FROM POPULATION MATTERS

read the recent article, ‘The seven deadly things we’re doing to trash the planet (and human life with it)’

by John Vidal. Ok, he puts ‘hyper-consumerism’ at the top of the list, but in what would have been

regarded as environmental heresy only a few years ago (especially from a Guardian journalist), Vidal

includes the issue of human population - headlining it as, ‘The one nobody wants to talk about’.

13. FROM ASIC MONEYSMART

Create a budget for 2017

Successful investing starts with a plan

Credit card balance transfers that work

14. FROM FEDERAL BANK OF ST. LOUIS

Education, Income, and Wealth

No surprise—people with more education often earn higher incomes and are unemployed less than those

with less education. Those with higher incomes also tend to accumulate more wealth. Why? Research

shows that well-educated people tend to make financial decisions that help build wealth. Their strategies,

though, can be used by anyone. Learn valuable tips in this issue of Page One Economics

15. FROM MANNKAL FOUNDATION

Superannuation – for better or worse?

So we have come to the end of the annual round of changes to our Super Fund, which in Australia, started

off as a world model for the superannuation system…..

http://www.mannkal.org/mannerisms/?p=796

Drain the Billabong

Public Choice Theory describes how a tiny minority of insiders can get favourable laws that enrich them

but spread the costs lightly over the rest of the population – so lightly that, if we even realise it’s

happening, it’s not worth us standing up to react….

http://www.mannkal.org/PaulsPerspective/index.php/uncategorized/117

16. FROM THE ECONOMIST

Stockmarket Review 2016

Stockmarkets had a good 2016. The S&P 500 rose by 10% over the 12 months and the Dow Jones by

13%. The FTSE 100 recovered from its Brexit wobbles to end 14% up; Russia’s RTS index soared after the

election of Mr Trump to finish 52% higher; and Brazil’s Bovespa rose by 39%. But Italy’s main index fell

by 10%, and China’s Shanghai Composite ended the year 12% lower

http://www.economist.com/news/economic-and-financial-indicators/21713826-

markets?cid1=cust/ednew/n/bl/n/2017015n/owned/n/n/nwl/n/n/AP/8532313/n

Inflation returns

After two years of unusually modest price rises in the rich world, inflation is picking up. Good\

READ MORE >

17. FROM OXFAM

An economy for the 99%

It’s time to build a human economy that benefits everyone not just the privileged few

The World Economic Forum is once again among us and today Oxfam releases a shocking new statistic on

inequality.

Just 8 men own the same amount of wealth as the poorest 3.6 billion people.

Below the report's author, Deborah Hardoon, shares with us how this data was compiled, why we study

wealth and suggests what can be done to tackle inequality.

Download the report

17. FROM WORLD ECONOMIC FORUM

Under-Employed, Under-Inclusive and Under Threat: the World in 2017

Trends such as rising income inequality and societal polarization triggered political change in 2016

and could exacerbate global risks in 2017 if urgent action is not taken, according to the Global

Risks Report 2017

Key drivers of risks can be arrested or reversed through building more inclusive societies, for which

international cooperation and long-term thinking will be vital

Climate change ranks alongside income inequality and societal polarization as a top trend for 2017,

with all five environmental risks featuring for the first time among the most likely and most

impactful risks before the world

Read the full report here

London, United Kingdom, 11 January 2017 – Economic inequality, societal polarization and

intensifying environmental dangers are the top three trends that will shape global developments over the

next 10 years, the World Economic Forum’s Global Risks Report 2017 found. Collaborative action by world

leaders will be urgently needed to avert further hardship and volatility in the coming decade.

In this year’s annual survey, some 750 experts assessed 30 global risks, as well as 13 underlying trends

that could amplify them or alter the interconnections between them. Against a backdrop of mounting

political disaffection and disruption across the world, three key findings emerged from the survey:

Patterns persist. Rising income and wealth disparity and increasing polarization of societies were

ranked first and third, respectively, among the underlying trends that will determine global

developments in the next ten years. Similarly, the most interconnected pairing of risks in this

year’s survey is between high structural unemployment or underemployment and profound social

instability.

The environment dominates the global risks landscape. Climate change was the number two

underlying trend this year. And for the first time, all five environmental risks in the survey were

ranked both high-risk and high-likelihood, with extreme weather events emerging as the single

most prominent global risk.

Society is not keeping pace with technological change. Of the 12 emerging technologies

examined in the report, experts found artificial intelligence and robotics to have the greatest

potential benefits, but also the greatest potential negative effects and the greatest need for better

governance.

While the world can point to significant progress in the area of climate change in 2016, with a number of

countries, including the US and China, ratifying the Paris Agreement, political change in Europe and North

America puts this progress at risk. It also highlights the difficulty that leaders will face to agree on a

course of action at the international level to tackle the most pressing economic and societal risks.

“Urgent action is needed among leaders to identify ways to overcome political or ideological differences

and work together to solve critical challenges. The momentum of 2016 towards addressing climate change

shows this is possible, and offers hope that collective action at the international level aimed at resetting

other risks could also be achieved,” said Margareta Drzeniek-Hanouz, Head of Global Competitiveness and

Risks, World Economic Forum.

How to address the world’s most pressing risks will be the subject of discussions at the World Economic

Forum Annual Meeting 2017, which convenes 17-20 January under the theme Responsive and Responsible

Leadership.

Although 2016 will be remembered for dramatic political results that broke with consensus expectations,

warning signs that a persistent cluster of societal and economic risks could spill over into real-world

disruption have been reported in the Global Risks Report regularly during the past decade.

In 2006, Global Risks warned that the elimination of privacy reduces social cohesion – at the time,

this was classified as a worst-case scenario, with a likelihood of below 1%.

In 2013, long before “post-truth” became the 2016 word of the year, Global Risks highlighted the

rapid spread of misinformation, observing that trust was being eroded and that better incentives

were needed to protect quality-control systems.

The complex transitions that the world is currently going through, from preparing for a low-carbon future

and unprecedented technological change to adjusting to new global economic and geopolitical realities,

places even greater emphasis on leaders to practice long-term thinking, investment and international

cooperation.

“We live in disruptive times where technological progress also creates challenges. Without proper

governance and re-skilling of workers, technology will eliminate jobs faster than it creates them.

Governments can no longer provide historical levels of social protection and an anti-establishment

narrative has gained traction, with new political leaders blaming globalisation for society’s challenges,

creating a vicious cycle in which lower economic growth will only amplify inequality. Cooperation is

essential to avoid the further deterioration of government finances and the exacerbation of social unrest,”

said Cecilia Reyes, Chief Risk Officer of Zurich Insurance Group.

The propensity of the Fourth Industrial Revolution to exacerbate global risks also came under scrutiny in

the Report’s Global Risks Perception Survey. Basing their analysis on 12 distinct emerging technologies,

experts clearly identified artificial intelligence (AI) and robotics as having both the highest potential for

negative consequences and also the greatest need for better governance. Notwithstanding its potential to

drive economic growth and solve complex challenges, experts also named it as the top driver of economic,

geopolitical and technological risks among the 12 technologies.

John Drzik, President of Global Risk & Specialties, Marsh said: “Artificial intelligence has the potential to

deliver dramatic benefits in sectors from manufacturing and transportation through to financial services

and health care. However, increased reliance on AI will create new threats and amplify existing ones, such

as cyber and social instability, making the parallel development of risk governance just as crucial.”

For the third year, the Global Risks Report also provides country-level data on how businesses perceive

global risks in their countries.

The Global Risks Report 2017 has been developed with the support of Strategic Partners Marsh &

McLennan Companies and Zurich Insurance Group. The report also benefited from the collaboration of its

academic advisers: the Oxford Martin School (University of Oxford), the National University of Singapore,

the Wharton Risk Management and Decision Processes Center (University of Pennsylvania), and the

Advisory Board of the Global Risks Report 2017.

Buoyant South Asian Economies Can Revive Global Demand and Spur Growth

Trade, common physical and social infrastructure important to harness growth in South Asia

Countries must focus on eradicating poverty, the common enemy

For more information on the meeting, see http://wef.ch/davos17

17 January 2017, Davos-Klosters, Switzerland – With its vast workforce, strong growth and

expanding purchasing power, South Asia will be the key to reviving global demand, Nirmala Sitharaman,

Minister of State for Commerce and Industry of India, said at a session on Harnessing Regional

Cooperation in South Asia at the World Economic Forum Annual Meeting. “The world cannot afford to

ignore the region that will be key to reviving demand,” the minister said.

Despite the South Asian Association for Regional Cooperation (SAARC) annual summit being cancelled in

2016 because of a terrorist incident in India, Sitharaman said, it is important to remember that the South

Asian Free Trade Agreement is still going strong and has achieved major gains in intra-regional trade in

the past few decades. She cited border haats, or markets, on the India-Bangladesh border and the India-

Myanmar-Thailand trilateral highway as other examples of increasing regional integration.

Prime Minister Sheikh Hasina of Bangladesh added that the India, Bangladesh, Bhutan and Nepal motor

vehicles agreement signed two years ago is another sign of closer ties within South Asia. She said better

connectivity of this kind will be an indispensable part of any strategy aimed at bringing nations and people

together.

With 1.8 billion people, 7% GDP growth rate and 25% of the world’s middle class, South Asia offers trade

and commerce that can improve people’s quality of life while also keeping the peace in a volatile region,

the panellists agreed. Manvinder S. Banga, Operating Partner, Clayton, Dubilier & Rice, United Kingdom,

said that as the world begins to de-globalize, there will be more opportunity for intra-regional trade within

South Asia.

He added that countries must set aside political irritants and improve connectivity – a huge advantage for

trade – as well as build common physical and social infrastructure, which can be a source of catalytic

growth and enable countries to meet the common challenge of fighting hunger and poverty and providing

education and healthcare to their people.

Business can help catalyse social infrastructure, particularly through digital technology, Banga said, citing

the example of education where information technology offers the opportunity to transform educational

reach while reducing the need for brick-and-mortar schools and teachers. Through digital technology, an

entrepreneur needs much lower investment and even education to set up a business, Banga said. “There

is an opportunity for digitally supported businesses at an unprecedented scale,” he added.

Mosharraf Zaidi, Founder and Campaign Director of Alif Ailaan – Time to End Pakistan’s Education

Emergency, Pakistan, highlighted the need for better education for the under-25 population that gives

South Asia its unparalleled demographic advantage over other regions. However, he warned that

countries’ oversized emphasis on defence spending is leaving little to invest in building the region’s social

capital.

Also underlying the discussion was the subtle acknowledgement that political issues such as state-

supported terrorism and the legacy of mistrust between nations cannot be wished away.

Ranil Wickremesinghe, Prime Minister of Sri Lanka, admitted that Sri Lanka prefers to deal bilaterally with

its larger trading partners outside South Asia as well as those within the region. Nevertheless, he said,

intra-regional relations of various kinds continue to thrive between his country and other South Asian

countries – such as the “camel trade” between southern India and Sri Lanka in which traders commute

daily between the two places. “There is a crisis only when you stop playing cricket with each other,” he

said on a lighter note.

President Xi Jinping: Don’t Blame Economic Globalization for the World’s Problems

China will meet its global responsibilities, including implementation of the Paris Agreement on

climate change

China will continue its economic reforms and opening up, and maintain its high level of economic

growth, while pursuing sustainable development

For more information on the Annual Meeting, see http://wef.ch/davos17

17 January 2017, Davos-Klosters, Switzerland – Chinese President Xi Jinping delivered a robust

defence of globalization to business, government and civil society leaders in the opening plenary session

of the 47th World Economic Forum Annual Meeting. China, Xi said, is committed to fulfilling its

international responsibilities and contributing to addressing pressing global challenges, including climate

change, the need for new drivers of economic growth and creating jobs in the face of the emerging

technologies of the Fourth Industrial Revolution.

“Many of the problems troubling the world are not caused by economic globalization,” Xi pointed out,

citing the global refugee crisis as an example. “There is no point in blaming economic globalization for the

world’s problems, as that is not the case and will not help with solving the problems,” he said.

But, Xi warned, “We should recognize that economic globalization is a double-edged sword. The pitfalls of

economic globalization have been laid bare and we need to take these seriously.” He added: “Nothing is

perfect in the world. It is true that economic globalization has created new problems. But this is no

justification to write off economic globalization altogether.” Xi recalled that China had at first doubted the

wisdom of joining the World Trade Organization, but had bravely gone ahead with membership and

determined that it was the right strategic choice. “If one is always afraid of the bracing storm, one will get

drowned in the ocean sooner or later,” he said.

Xi called for efforts to rebalance economic globalization so that all people share in its benefits. This will

require more effective international cooperation and new models of global governance, bold action and a

commitment to avoid protectionism. “We should not develop the habit of retreating to the harbour

whenever encountering a storm.” Referring to the threat of protectionism, he predicted that “nobody will

emerge as a winner in a trade war.”

President Xi also stressed that China will continue its economic reforms and opening up, and will maintain

its high level of economic growth while pursuing sustainable development. “We know only too well that

there is no such thing as a free lunch in the world and that no pie will fall from the sky.”

Reacting to Xi’s speech, Klaus Schwab, the World Economic Forum’s Founder and Executive Chairman,

told participants that it is crucial that globalization leads to a fair, innovative, open and inclusive world.

“We cannot go back to old policies,” he said. “We cannot take recipes which may have worked in the old

world but are not working anymore in the new world.”

Earlier, in welcoming remarks, Doris Leuthard, President of the Swiss Confederation 2017 and Federal

Councillor of the Environment, Transport, Energy and Communications of Switzerland, warned that

nationalism and protectionism, as well as the rise of extremism and conflict, are gaining and challenging

the cohesion of the international community. “Each of these problems leads us to perceive the world as

more fragile – and the insecurity is spreading.”

With the turbulence created by the Fourth Industrial Revolution, Leuthard advised: “Digitization must be

democratized, just as knowledge was democratized when the printing press was invented.” She

underscored the importance of investing in education. “We need to have responsive and responsible

leadership to draw the right conclusions and make the right decisions,” She concluded. “To achieve this,

we have to rid ourselves of the idea that there is a global solution to these problems. There is never going

to be a one-size-fits-all solution.”

Big Business Is Here to Stay, but in Need of a New Narrative

Consumers are increasingly uneasy with the immense size and power of big business

The giants of world business are challenged to manage their enormous scale, create new products

and contribute to society

Innovation requires a focus on the long term, especially in terms of investment

17 January 2017, Davos-Klosters, Switzerland – Gigantic corporations lead in business today: fewer

than 10% of public companies worldwide account for 80% of all corporate profits. But the giants of world

business are challenged to manage their enormous scale, create new products and contribute to society,

agreed leaders of global manufacturers, technology companies and banks in a session on the opening day

of the World Economic Forum Annual Meeting.

Consumers are increasingly uneasy with the immense size and power of big business. “That we are

discussing this topic today is a clear message that something has gone wrong in the last 10 years.

Suddenly, we have started question: Is big good or not?,” said Sunil Bharti Mittal, Chairman, Bharti

Enterprises, India. Recent populist votes in the US election and Brexit reflect a criticism of big business:

“The biggest risk we run is to lose our mandate. We had a licence for a time, society wanted companies to

grow; that mandate is getting weaker and weaker,” said Tidjane Thiam, Chief Executive Officer, Credit

Suisse, Switzerland.

Big business needs a new narrative that articulates its contribution to society, the panel concurred. “What

percentage of the world’s companies have 80% of the jobs? That’s the narrative. SMEs are thriving around

us, every job I create makes another five,” said Andrew N. Liveris, Chairman and Chief Executive Officer,

The Dow Chemical Company, USA.

Creating environments where innovation will prosper in gigantic companies tends to spawn new

structures.

“Our number-one priority is leveraging the benefits of scale and size – that goes against trying to maintain

entrepreneurialism and innovation in large companies,” said Sir Martin Sorrell, Chief Executive Officer of

WPP, United Kingdom. The solution, he said, is that the business has to be big and small – the company

can be split into units and then “the challenge is to figure out how to get them to work together.”

Innovation requires a focus on the long term, especially in terms of investment. “We are continuing to

invest for the long run. Unless you stay focused on innovation, you can be disintermediated,” said Ruth

Porat, Senior Vice-President; Chief Financial Officer, Alphabet, USA. Powerful market forces can swerve

the focus away from that type of investment, however. Since the financial crisis of 2008, “there has been

more emphasis on short-term performance because the system is focused on the short term,” said Sorrell.

As a result, investments made are incremental and not the fundamental ones in innovation and branding,

he added. “Incrementalism leads to irrelevance; the short-term view is the problem,” underlined Porat.

The phenomenon of gigantic corporations is here to stay, agreed industry leaders on the panel, although

some expressed the view that shifts are in sight. We are heading to a world where companies will be like

nation states, noted Liveris. Several panellists predicted that, 10 years from now, fewer companies will

generate a higher proportion of profits than today. New forces, however, could alter this landscape.

Subsidies for small business will become a force for change, said Mittal, and the concentration of profit-

making in a few companies will be lower because technology will allow for improvements in small

business, said Porat.

Doug Cave

QETA Secretary/Treasurer

info@qeta.com.au

http://www.qeta.com.au

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