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Issue
No. 10-36 | September 6, 2010

| For
the Chinese economy to achieve 8% GDP growth over the
next decade, China would need to double its share of global trade.
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IMF
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| From
2000 to 2008, African economies grew at twice the pace
of the 1980s and 1990s. |
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MCKINSEY
GLOBAL INSTITUTE
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| Just
59% of China's imports came from rich countries in 2008, but
this share rose sharply to 66% in 2009. Likewise, India
obtained 42% of its imports from rich countries in 2008, but last
year this figure increased to 47%. |
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THE
ECONOMIST
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| In
2009, China produced about 36% of all solar panels made
worldwide, taking the lead from Europe, which had an 18% share.
Japan was third at 16% and North America, primarily
the United States, was fourth at 8%. |
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PHOTON
CONSULTING LLC
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| Over
the past decade, 227 million people around the world moved
out of poverty. However, the number of slum dwellers in
developing countries' urban centers actually increased by more
than 50 million. |
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UNITED
NATIONS
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| Of
every dollar of U.S. real income growth that was generated
between 1976 and 2007, 58 cents went to the top 1% of households. |
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UNIVERSITY
OF CHICAGO
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| Interest
and dividends make up less than 1% of a U.S. median family's
income. |
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FINANCIAL
TIMES
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| Layoffs
in construction have accounted for 27% of U.S. private-sector
job losses since 2007. If one adds loan officers, real-estate
agents, architects and landscapers, then housing-related layoffs
account for at least one-third of the total. |
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WALL
STREET JOURNAL
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| At
$1.2 trillion annually, U.S. corporate profits are now higher
than they were at the height of the bubble. |
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WASHINGTON
POST
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| Under
the Obama Administration, U.S. Special Operations forces have
grown both in number and budget — and are deployed in 75
countries, compared with about 60 at the beginning of 2009. |
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WASHINGTON
POST
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| German
exports came to $1.1 trillion in 2009 — roughly $125 billion
more than the United States exported, though there are just 82
million Germans to 310 million Americans. |
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WASHINGTON
POST
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| Since
1981, France has been unable to balance its budget —
even in good times with healthy economic growth. |
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FRENCH
COUNCIL OF ECONOMIC ANALYSIS
|
| The
UK government's unfunded civil service pension liabilities
— the contractual claims on government accumulated to date by civil
servants — amount to £770 billion. That is 58% of the UK's
GDP. |
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UK
GOVERNMENT ACTUARY DEPARTMENT
|
| Because
there is no extradition treaty between Afghanistan and Britain,
Afghan officials who are suspected of corruption and managed to get
to the United Kingdom are essentially in a safe haven. |
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WASHINGTON
POST
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| China
has 27 million students in technical colleges and universities
— the most in the world. |
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NEW
YORK TIMES
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| In
mid-2010, the Bank of Japan appointed its first female branch
manager in its 128-year history, Japan Airlines Corporation announced
its first female pilot captain — and East Japan Railway now
has female station masters in Tokyo for the first time. |
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WALL
STREET JOURNAL
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| Since
the beginning of this century, Vietnam has held third place
in average annual GDP growth, just behind China and India, and
has been most successful in poverty reduction. Vietnam has
also become a major exporter, ranking 40th in the world. |
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YALE
GLOBAL
|
| Out
of more than 170 million Pakistanis, fewer than 2% pay income tax,
making Pakistan's revenue from taxes among the lowest in the
world — a little below Sierra Leone's as a ratio of tax to
GDP. |
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INTERNATIONAL
HERALD TRIBUNE
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GM’S
PENSION WOES |

|
Even
after the U.S. government's rescue of General Motors,
the company's pension fund is the largest private-sector
pension plan in the world, with roughly $100 billion of
liabilities.
The assets in GM's U.S. pension fund are still officially expected
to return 8.5% a year — even though returns in markets
are much lower.
The company's annual payments to its U.S. pensioners
amount to $9.3 billion. On U.S. fund assets of $85 billion,
that requires a return of 10.9%.
General Motors had 531,500 pensioners in the United States
to 87,500 active employees. In other words, each worker
has to support six pensioners, not counting the 83,500 who
have left the company and have yet to retire.
GM, like British Airways or BT in the United Kingdom, is in
economic terms a hedge fund, with its operations a mere sideline. |
SOURCE:
FINANCIAL TIMES
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| "The
relentless promotion of homeownership as the embodiment of
the American Dream has outlived its usefulness." |
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ROBERT
J. SAMUELSON, NEWSWEEK COLUMNIST
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| Afghanistan
has a virtual lock on world opium production. Extensive inventories,
estimated at two years' worldwide consumption, preclude shortages.
Retail demand for the heroin produced from Afghan opium is only slightly
sensitive to export prices, because most of its retail price consists
of distributors' mark-ups — rather than the raw material price. |
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FINANCIAL
TIMES
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