India is teeming with shops like this one, in Bhuj, Gujarat. Photo: orange tuesday (flickr)

India is expecting 8.5 percent growth this year. Several experts say that soon India's growth will surpass that of China. The Economist explores what this means for the India verses China debate in last week's issue.

Mexian fans celebrate a goal. In soccer-centric countries such as Mexico, winning a soccer match can represent more than just a victory on the field. Photo: ++Frank++ (flickr)

Mexico's finance secretary recently warned that falling oil prices and production may lead to the nation's worst recession in 30 years.

But on Wednesday, economic worries took a backseat to Mexico's World Cup qualifying match against the United States, which many Mexicans viewed as more than just a soccer match.

“This was life or death for the whole country,” Kurt Vogt, a Mexican supporter, told The New York Times, which headlined their article about Mexico's 2-1 victory, "Mexico Restores Order to Its Universe."

Not only did Mexico's World Cup 2010 hopes rest on the outcome of the match, as well as an impressive home unbeaten streak — they're 23-0-1 against the U.S. at Azteca Stadium — but the country's hard-hit ego and slumping economy stood to gain substantially as well.

“It's incredible how it effects our emotions and our economy — one game,” said Eliseo “Papo” Santos, a former professional player and coach told Mark Zeigler of The San Diego Union-Tribune. “Not qualifying for the World Cup, it would be devastating for us. It'll bring your country down big time.”

This isn't just a gut feeling — it's "soccernomics." The Union-Tribune's Zeigler points out that after Italy won the World Cup in 2006 its gross domestic product grew by 2 percent, after two years of zero growth.

No wonder both Mexico and the U.S. played their recent World Cup qualifier as if it was the championship match.

Can the mining industry brighten Congo’s economy? Possibly, says NPR’s Gwen Thompkins. The corrupt dictatorship of Mobutu Sese Seko and years of civil war have all but destroyed the economy of the Democratic Republic of the Congo. While political stability has increased since the DRC held its first free elections in 2006, weak infrastructure and continued regional violence still hinder any kind of substantial economic growth.

In the past, the profits gained from the country’s vast mineral resources have largely gone into the pockets of middlemen and corrupt government officials, with little benefit to the average Congolese. Yet the DRC sits atop what remain the world’s largest reserves of copper, tantalum, and coltan – minerals that are used in everything from cell phones to jet engines. Investors are showing increased interest in gaining access to these minerals: state-owned China Railway Group is set to fund $2.9 billion joint investment project in partnership with Gecamines, the DRC's state mining company. If carried out correctly, the excavation and sale of mineral resources could jumpstart the DRC’s economy and help get it back on its feet.

Could mining boost DRC's economy? Photo: FredR (flickr)

Can migrant workers help to improve an economy? An article in the Economist says they can. According to the National Research Council with a high school education a migrant worker can contribute as much as 105,000 dollars in taxes, along with the contribution of their children once they are employed.

Migrants need health, skills, determination, a willingness to take risks and some entrepreneurial nous to take the plunge, which marks them out as special people. Moreover, migrants increasingly alleviate specific labour shortages in rich economies. Some economies could not function without foreign workers.

Finally, there is an upbeat news piece about Africa. The BBC released a brief story on Jan. 31st about the opening of a stock market in Rwanda. For a country that has known its share of sorrow, this is one more element that can direct Rwanda toward a more hopeful future.

Upon opening the Rwanda Capital Market, President Paul Kagame described it as a milestone for the nation. The hope is that the exchange will aid the economy, which has yet to bounce back after the 1994 genocide.

Photo: Thatcher Cook for Mercy Corps

Can poor countries afford to be green?

A new report, the annually released Environmental Performance Index suggests that poor countries have been justified to disagree with blocs who demand environmental and other green protections even to the opposition of economic growth, according to the Economist. The connection between economic growth and the environment is not entirely clear, the study finds.

“Economic growth, coupled with good governance, may yet prove to be a source of solutions rather than problems. At the moment, perhaps 2 billion people have no formal access to modern energy—they make do with cow dung, agricultural residue and other solid fuels which are far from healthy. Unless foresight and intelligence are applied to the satisfaction of these people's needs, they may embrace the filthiest and most carbon-emitting forms of fossil-fuel energy as soon as they get the chance.”

The report concludes that a combination of growth and transparent government may be the only solution to avoiding this potential disaster. In fact, if developing countries were able to bypass the most polluting stages of their economic development, all parties would be better off.