African leaders discuss the state of the African economy at the 2010 IMF/World Bank Spring Meetings. Photo: International Monetary Fund (flickr)

The Economist

The Economist

Since 2001, the budding economies of the BRICS (Brazil, Russia, India, China and South Africa) have dominated global financial headlines. But looking back, it turns out some of the so-called “African lion” economies (Angola, Nigeria, Ethiopia, Chad, Mozambique and Rwanda) were just as fierce.

Six of the 10 fastest-growing economies in the world hail from the “forgotten continent” of Africa — putting up annual average GDP growth rates of around 8 percent or more from 2001-2010. The monumental rates have even earned these sprinters a spot next to “Asia's tigers” of the 1980 and 1990s — Making Africa one of the fastest growing regions in the world, according to The Economist.

Over the past decade, sub-Saharan Africa’s real GDP growth rate jumped to an annual average of 5.7%, up from only 2.4% over the previous two decades. That beat Latin America’s 3.3%, but not emerging Asia’s 7.9%. Asia’s stunning performance largely reflects the vast weight of China and India; most economies saw much slower growth, such as 4% in South Korea and Taiwan. The simple unweighted average of countries’ growth rates was virtually identical in Africa and Asia.

That said, in the next five years Africa is set to take the top spot from Asia as the fastest-growing region in the world, writes The Economist. "Standard Chartered forecasts that Africa’s economy will grow at an average annual rate of 7 percent over the next 20 years, slightly faster than China’s."

Ironically, much of Africa's growth can be attributed to China's investment and demand for raw materials in the region. And more recently, another of the BRICS, Brazil, has been competing for assets in Africa, writes Fast Company.

The Economist also notes growing success in Africa's manufacturing sector, which Standard Chartered predicts will become "significant."

Even with challenges such as political instability, corruption and weak rule of law, the African lions have been able to compete with the economic prowess of the Asian tigers.

But before Africa's growling economies can dream of surpassing Asia's roaring ones, those structural problems will have to be fixed.

"Without reforms," The Economist says, "Africa will not be able to sustain faster growth."

In Japan, her overnight hospital stay would only cost her $10. Photo: Hamed Saber (flickr)

“Every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem,” according to the National Coalition on Health Care.

The United States spends the most in the world on health care – about $2 trillion annually. Yet, the U.S. ranks 37th in world in terms of the quality and fairness of its health care, according to the World Health Organization (WHO).

The U.S. has no comprehensive national health insurance system. Those who have insurance get it through their employers, government programs, or private suppliers. However,there are 47 million people that are not insured. Furthermore, millions more are underinsured, which has led to a growing epidemic of medical debt and bankruptcy in the United States. A Harvard University report found that about 50 percent of all bankruptcy fillings were partially due medical debt.

In light of this growing problem, correspondent T.R. Reid traveled with Frontline to investigate if other free-market countries were having the same problems with medical-related bankruptcy. What he found was shocking.

Traveling to the United Kingdom, Japan, Germany, Taiwan, and Switzerland, Reid found that health-related bankruptcy is almost unheard of in these countries. Unlike the United States, all five of the visited countries have universal health care and pay a lot less.

Switzerland spends the second-highest amount on health care, but the government still spends 44-percent less per capita than the United States.

The full program, "Sick Around the World," is available online, along with a list of resources and a Q&A with Reid.

All the countries have varying degrees of private, market-based health care, like the United States. They, however, also limit the level of freedom the health care market can have. According to Frontline:

First, insurance companies must accept everyone and can't make a profit on basic care. Second, everybody's mandated to buy insurance, and the government pays the premium for the poor. Third, doctors and hospitals have to accept one standard set of fixed prices.

It's unnecessary for health care costs to send hundreds of thousands of Americans into debt each year. As Reid has learned, it is possible to make health care universal and affordable in a free-market economy.

Fuel prices have risen 40 percent since the start of the year.

Skyrocketing fuel prices make people angry. How angry you ask?

• Truck drivers in Spain started an indefinite strike on Monday, threatening to bring the entire country to a standstill. A growing number of gas stations have reported to have run out of fuel as a result, and supplies of fresh food are running low.
• From Portugal to Italy, commercial fishermen have protested rising fuel prices by blockading ports and refineries
• Last Thursday, more than 500 motorcyclists staged a “go-slow” demonstration outside Manchester, UK.
• Over in Asia, angry Indian consumers burned tires and blocked traffic after the government raised fuel prices. The protests shut down schools and businesses in West Bengal State.
• In Hong Kong, 500 buses and trucks colluded to bring traffic to a standstill in the central city.
• Enraged by the government’s recent 41-percent fuel price hike, Malaysians have planned a nationwide strike and a major demonstration in Kuala Lumpur on July 12.
• Truck drivers in Thailand are threatening to wreak traffic-havoc next week by clogging the roads with 400,000 trucks.
• In South Korea, truck drivers threatened to strike on Monday, ignoring the $10.2 billion government aid package designed to cushion the impact of soaring fuel prices.

What other angry reactions have you heard about?

Photo: Thatcher Cook for Mercy Corps

Taiwan’s mid-March elections show that residents there may be willing to have a closer relationship with China if it benefits them economically.

Taiwanese voters favored Hong Kong-born Ma Ying-jeou's promise of economic prosperity over his rivals' campaigns to ensure further confrontation with China. Ma Ying-jeou won the presidential election in a landslide victory with his message for closer economic ties with China. He proposed reviving the economy by inviting more Chinese investment and tourism for Taiwan.

This is a new tack for a country that has long struggled to become separate from China and find its own identity in the international arena.

Tibet could learn from Taiwan’s strategy. The BBC’s Humphrey Hawksley, writing in YaleGlobal, contends that Tibet’s embrace of a national identity prevents them from enjoying China’s economic benefits. With India and China as neighbors, Tibet is in a prime position to benefit from the global market. Hawksley suggests that if both countries focused on their economic relationship, Tibet could enjoy a Taiwan-like success story. But it might mean giving up some of its traditions and its fight for independence.

Taiwan’s decision highlights how the lure of closer of economic ties is affecting the way countries formulate their foreign policy. It seems as if Tibet could better its struggling economy by putting aside its hostility to China — but at what expense?