| Seoul marks recovery from 1997 crisis
South Korea has fully recovered from the devastating 1997 economic crisis, the government said yesterday on the eve of its anniversary, but commentators said crucial reforms were still not in place. On Nov. 21, 1997, Seoul asked the IMF for a bailout of US$57 billion -- the largest in the fund's history -- to avoid a state bankruptcy. In return it effectively gave up sovereignty over the economy, accepting tough austerity measures -- including high interest rates -- prescribed by the IMF. The turmoil swallowed up 16 of the 30 largest business conglomerates, including the second-largest Daewoo Group, and forced some 900 financial institutions out of business. Millions lost their jobs due to corporate restructuring and insolvencies, even though the government injected some US$180 billion to bail out failing businesses and financial institutions.
Restructure global financial architecture: Mbeki
Durban, Nov 19 (PTI) South African President Thabo Mbeki today stressed on the need for restructuring the world's financial architecture in order to remove global imbalances.
Addressing a two-day meeting of G20 finance ministers and central bank governors at Kleinmond near Cape Town, Mbeki said few nations would disagree with the need for a restructuring of the world's financial make-up.
"I have no doubt that many of us are united around the vision of a new model of multilateralism which harvests individual and collective knowledge and best practices, to promote economic and social advances for the benefit of the entirety of the global community of nations".
The G20 represents nearly 90 per cent of the world economy and two thirds of its population and trade.
Drug Manufacturing Firm To Add Site in Prince William
Covance, a drug manufacturing services firm in Princeton, N.J., yesterday announced plans to build a testing facility in Prince William County that would bring in 550 jobs and an investment of $175 million, boosting the county's efforts to create a high-tech hub. The new facility will use a partially completed manufacturing plant that the Indianapolis pharmaceutical firm Eli Lilly abandoned in January. Covance bought the plant from Lilly and said it plans to expand incrementally on the 47-acre site in the Innovation at Prince William business park on the county's western edge. .
PPCS to close two plants
Meat exporter PPCS is to close two plants, with the loss of 35 jobs, as part of a restructuring which will see the company quit non-core businesses. PPCS confirmed yesterday that it would be closing its Te Kauwhata venison processing facility and its Balclutha-based Windward finished lambskin manufacturing operation. .
Rwanda: Government to Reform Micro Lending Sector
The Minister of Finance James Musoni has said restructuring of micro finance sector where many people have lost large sums of money is under way. Musoni disclosed on Monday that the government intends to reform operations on small unsecured loans made to people at high interest rates yet most have no assets to guarantee repayment. .
Commentary: U.S. must confront essential economic problems
Federal Reserve policymakers and critics labor under false assumptions. Hawks believe tighter credit can stave off inflation. Doves hew to lower rates to mitigate risks of recession. Rocketing oil prices may accelerate inflation, while the credit and housing crises and the huge trade deficit threaten recession. However, these cannot be countered adequately by modulating interest rates. China and India are growing 10 percent a year, causing global oil demand to outrun supply and pushing prices to near $100 a barrel. The United States consumes only one-quarter of the world's oil, and accounts for a smaller share of growth in demand. Trimming U.S. gross domestic product with tight credit would slice an inconsequential fraction off global oil consumption and little affect broader U.S.
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