Friday, March 12th, 2010

Daily Verdict: November 24th, 2008

Britain to borrow record sums
Britain’s Finance minister Alistair Darling has told parliament that Britain will need to borrow record sums of money in order to revive is economy. His plan includes a cut in the sales tax, help for small businesses, low earners and households in a package worth around 20 billion pounds. Britain would borrow 118 billion pounds next financial year and the cuts in sales tax will result in an increase in income tax for high earners as well as an increase in payroll tax on employers and workers. This bold move by the Labour party is seen as a key move in establishing economic stability ahead of predict elections in mid 2010.

Obama introduces economic team
Timothy Geithner, 47 and current president of the New York Federal Reserve Bank, will become Treasury secretary under the new Obama administration. Lawrence Summers, 53 and a former Treasure secretary under Bill Clinton, will be the director of the National Economic Council. Also, Christina Romer, current professor at Berkeley University in California, will be the head of his Council of Economic Advisors. Melody Barnes, a former chief counsel on the Senate Judiciary Committee, will head his Domestic Policy Council. This is the team named by President-Elect Barack Obama today that will tackle the current global economic crisis. Lawrence Summers is also seen as a possible replacement for Ben Bernanke, the Federal Reserve Chairman whose term ends in 2010.

Annan and Carter call for Zimbabwe intervention
Kofi Annan has called for more involvement from African nations to help Zimbabwe end its current political and economic turmoil. Speaking with former US President Jimmy Carter and human rights campaigner Graca Machel, wife of Nelson Mandela, Annan said that the “SADC should have done more”. After being barred entry into the country only last week, the three who are part of a group called the Elders, met in South Africa to discuss available options. They will also meet with the leader of Zimbabwe opposition party Morgan Tsvangirai.

SADC sends mission in Congo
In other African news, the SADC has reported that it has sent a fact-finding mission in Congo after a recent lull in fighting between the rebels and government soldiers. A recent break in the fighting which has resulted in rebel forces withdrawing across territories it took only last month has given the UN a chance to provide much needed humanitarian aid. The UN has added 3 000 additional troops to its already 17 000 strong peace-keeping mission and the SADC has also dispatched a Millitary Monitoring Commission to monitor the border with Burundi, Rwanda, and Uganda.

Venezuela election results
In local elections in Venezuela, President’s Hugo Chavez’s left wing party suffered a small defeat as the multi-party opposition took over some positions of key importance. Chavez’s socialist allies won a clear majority of state races, 17 out of 22 in fact, but the fact some of the party’s support has diminished does not bode well for Chavez who is up for re-election in 2012.