Mauritius is a very small country far away from China – and yet greatly affected by the coronavirus. So far, there have not been any cases of infection reported, but the economy will take a severe hit. Katja Dombrowski, a member of our team, is currently staying there with her family and reports.
Once again, many developing countries and emerging markets are struggling with worsening debt problems. Global warming is increasingly contributing to these problems, according to erlassjahr.de, the German non-governmental advocacy group. In a recent publication, it proposes debt relief for countries hit by environmental crisis.
India is witnessing nation-wide protests. According to media reports, at least two dozen people have been killed, and even though rallies have been forbidden in many places, people are still taking to the streets to express their anger about a law reform that discriminates against Muslims. They want India's secular constitution to be upheld.
Britons will elect a new parliament on Thursday, and I find it strange that the public hardly seems to be aware of what is probably the greatest risk of Boris Johnson's Conservatives winning a majority in parliament: He seems to be the kind of prime minister you can only vote for once because he'll do whatever he can in his first term to change the rules in ways to entrench himself in power for decades to come.
As I argued in a blog post last week, the climate crisis is increasingly marking economies around the world. Least developed countries, such as Mozambique or Bangladesh, are probably most exposed, but California with its wildfires is increasingly becoming symbolic. Yes, I agree, people in poor countries deserve more attention for their suffering than they are getting, and global media have a tendency of paying too much attention to rich nations. What may be more important, however, is that central banks and other policymaking bodies must pay attention to growing environmental hazards.
Global environmental change is a cause of investors’ much bemoaned uncertainty – but economists don’t pay this trend adequate attention. Global heating and the loss of biodiversity do not lend themselves to standard modelling.