Keeping you up to date on global affairs. Every Sunday. In under a few minutes.
- In a surprising twist, Argentina's Economy Minister, Sergio Massa, garnered over 36% in the recent presidential election, setting a run-off against far-right candidate, Javier Milei. Despite the country's financial crisis and soaring inflation nearing 140%, Massa's strong performance defied expectations. Milei, who advocates for radical economic reforms like scrapping the central bank and adopting the US dollar, secured 30% of votes. Patricia Bullrich, a conservative, followed with 23.8%. Milei's proposals resonate with those desiring a drastic economic shift. However, experts warn of the risks, especially to Argentina's social welfare. Massa, on the other hand, defended his tenure, attributing austerity measures to debts from the previous administration. As the run-off approaches, heightened political tensions are anticipated, with the victor facing the daunting task of mending a fractured economy and a populace disillusioned with politics. Once hailed as the "Paris of South America" due to its European architecture and cosmopolitan culture, today, roughly 40% of Argentinians live in poverty.
- The World Bank has approved a $1 billion loan to assist South Africa in addressing its debilitating energy crisis, which has seen power cuts since 2007, some lasting up to 16 hours a day. These persistent outages have notably hampered the nation's economic growth. Over 80% of the country's electricity is derived from coal, positioning South Africa as the world's 14th largest carbon dioxide emitter. The World Bank's initiative aims to support South Africa's transition to a more sustainable and low-carbon economy. A significant part of this loan will be directed towards the restructuring of the country's state-owned power entity. Notably, Eskom's coal-powered stations are frequently dysfunctional, with some even violating governmental emission norms. The World Bank's director for South Africa, Marie Francoise Marie-Nelly, highlighted the loan's role in environmental and economic benefit, underscoring its importance in the broader energy transition. In prior commitments, South Africa had decided to split Eskom into three components: transmission, generation, and distribution, while also taking responsibility for a considerable chunk of its outstanding debt (totalled at over $26 billion). Eskom provides more than 90% of SA's power and 40% of the total electricity in all of Africa.
- After a week of extensive deliberation, EU leaders concluded a five-hour meeting on Thursday, endorsing the call for “humanitarian pauses” in Gaza. This move aims to facilitate aid delivery. Spain, unsuccessfully, attempted to call for an international peace summit in six months. To underscore the sensitivity of these discussions, mobile phones were prohibited, and diplomats were kept uninformed until the very end. European Council President Charles Michel addressed a press conference early on Friday, emphasizing the prevailing "strong unity" among the EU leaders. The discussions leading up to this point had focused on defining the terms of the humanitarian "pause" or "pauses", a topic that seemed too sensitive for certain EU countries, such as Ireland, as it echoed sentiments of a ceasefire. Ultimately, the EU chose to emphasize the establishment of “humanitarian corridors and pauses for humanitarian needs,” aligning with the calls of U.N Secretary-General António Guterres and U.S. Secretary of State Antony Blinken. In a separate development, U.S. intelligence reports indicate that a recent explosion in a Gaza hospital resulted from a Palestinian rocket malfunction, countering accusations of an Israeli strike.
- This week, EU leaders approved plans to use profits from frozen Russian state assets for Ukraine's reconstruction. Over €200 billion of the approximately $300 billion in sanctioned Russian reserves is held within the EU (the rest being in the US). While the EU has considered taxing the profits from these assets to aid Ukraine, the proposal has faced skepticism from the European Central Bank and nations like France and Germany, fearing market disruptions and the weakening of the euro's global position. Commission President Ursula von der Leyen urged leaders to approve legal frameworks, garnering support from several EU nations but also calls for caution. Belgian clearinghouse Euroclear, holding €180 billion of Russian assets, reported €3 billion in profits over nine months. The initiative to leverage Russian assets for Ukraine's benefit has been discussed for over a year, with proposals expected within the coming year.
And finally, how big is the role of luck in life? From a business sense, the allure of understanding the elements of achievement is evident, given the popularity of publications like Success, Forbes, Inc., and Entrepreneur. Historically, we've rewarded those with a track record of success and overlooked those who haven't made their mark, operating on the presumption that success is synonymous with competence. This belief doesn't just permeate the media world but also impacts societal structures, influencing everything from job opportunities to celebrities to allocations of grants and public policy decisions.
But is this presumption accurate? Are the most successful people in society just the luckiest?
The Economist
has a thought-provoking article on this subject.
The Atlantic
: When people see themselves as self-made, they tend to be less generous and public-spirited. Researcher Adam Grant notes that in a shifting world, success isn't just about individual attributes like passion, hard work, or talent, but also about how we engage with others. His book 'Give and Take' explores the power of networking, collaboration, and interpersonal interaction in determining success. Grant categorizes people into three interaction styles: takers, matchers, and givers.
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