Dubai Keynes Society Term 2 Newsletter

DUBAI KEYNES

Designed and Edited By: Aryav Odhrani, Raghav Jasuja, Mustafa Alp Ata, Sanaaya Patel

“The difficulty lies, not in the new ideas, but in escaping from the old ones."

John Maynard Keynes (1883-1946)

Table of Contents

Heads’ Foreword …......................................................................................................................

Session Summary ............................................................................................................. ............

India's Gig Economy ............................................................................................ …Raghav Jasuja

Exchange Rate on Turkey's Inflation......................................................... …..........Mustafa Alp Ata

Taylor Swift: The Billion-Dollar Economics of a Mega-Star..........................................Aryav Odhrani

Foreign Aid ….......................................................................................................... Sanaaya Patel

Economics in the News........................................................................................................

Book Review: The Bottom Billion and Dead Aid ................................................ …..Mr. Christopher

Manipulating Globalisation ....................................................................................... ..Dhruv Arora

Economics of Luxury …............................................................................................ .Inaya Bhasin

Trump’s Tariffs …......................................................................................................Simar Bhasin

The Decoy Effect...................................................................................................... .Derin Conroy

Economics of Sneaker Culture.................................................................................... .Aarav Dave

The Number Behind Debt Relief..........................................................................Yorgen Engmann

The Rise of BRICS................ .........................................................................................RykaGehi Effects of a Maximum Wage ...................................................................................Anika Jethwani

The 2008 Financial Crash and Policy responses......................................................Rania Jethwani

Trump's Ukraine Policy .....................................................................................Ali Mansur-Valiyev

To What Extent Does Protectionism Strengthen an Economy in the Long Run?...............Aman Nair

The British Raj: Prosperity or Poverty?.......................................................................Angela Philip Trump's Congress Kickoff.................................................................................... .Harihar Rengan

Market Failure in the 2008 Financial Crisis......................................................................Aadit Sen

Quantitative Easing: A Necessary Policy or An Avoidable Risk?..........................................Adi Siraj

High Frequency Trading …........................................................................................Aditya Tomar

Can Productivity Always be Measured Accurately...........................................................Aarush Vij

The rise of DeepSeek AI…...........................................................................................Sara Whabi

The Rise of the Gig Economy........................................................................................Jiawen Zhu

Beach Clean Up …......................................................................................................Zara Ansari

Japan Trip…..................................................................................................................

Year 12 Patchi Trip….........................................................................................................

As we approach the Easter break, we can look back on DKS's most successful term, despite only having 6 uninterrupted weeks. We have had an assortment of sessions, ranging from a mock revision session for Year 10 and 11 students to Shaheeda Abdul Kader's session on investment and startup advisement. We also hosted our annual DKS Beach Clean Up with Goumbook, an exceptionally fun day out for all students taking part.

We are excited to announce that we received more articles this term than ever before, beating out last term's record number too! A massive thanks to everyone involved in this achievement. Moreover, we must thank Mr. Christopher, whose unwavering support for the cause of DKS cannot be undermined.

Wishing everyone a restful break. Be prepared to return for another jam-packed term and make sure to stay committed to sessionsyour dedication keeps our society running!

- Raghav, Alp, Aryav, and Sanaaya

08/01/25

15/01/25

Session Summary

GCSE Revision Session

Shaheeda Abdul Kader

22/01/25

Ali Mansur-Valiyev

29/01/25

Mo Tanwir Exclusive Video Content

05/02/25

Save the Butts Goumbook

19/05/25

Welcome back from the Winter Break! The DKS Team offered a GCSE Revision session, focused on the Economics GCSE, directed at year 11s and Year 10s We hope the session was helpful for those going into their exam season, as we provided revision strategies and advice drawn from our own experiences

This week, we were honoured to have Ms Shaheeda Abdul Kader deliver an engaging talk Ms Abdul Kader, is an experienced trader and a regular guest lecturer at universities She imparted some valuable advice on our students, on her experience in the industry.

We were excited to welcome Ali Mansur-Valiyev, from year 11 Ali gave a talk about crypto currency and digital money, explaining in great detail how crypto operates, and how it is revolutionising transactions, transparency and trust in the global economy This was an extremely insightful lecture on the benefits and drawbacks of crypto and where it is heading in the future Thank you Ali!

Following the return of Trump as President in January, there has been many developments and much turbulence DKS students were lucky to have access to Mo Tanwir's , a regular lecturer at the society, discussing Trump's first 100 hours in office, rather than the customary 100 days analysis This was followed by a student led discussion where thoughts about the word economy and Trump's impact were shared.

We welcomed Ms Omaima Ahmed from Goumbook, who discussed the importance of sustainability and provided the students with greater detail and key information about the Friday 7th February Beach Clean Up with DC Sustainability Club Her company, Goumbook leads climate initiatives in the UAE, including air quality improvement, plastic reduction, and mangrove planting.

Tucker Highfield Gensis Digital Assets

This week we were delighted to host Mr Tucker Highfield, the CFO and manager of the renowned Genesis Digital Assets, bitcoin mining company. Mr Highfield is highly experienced in the field of banking and cryptocurrency, especially in the Middle East. This session was extremely insightful in shedding light on the industry.

Ramadan Annual Ramadan Essay Announced!

We were excited to announce the return of the DKS Ramadan Essay Competition. Submissions are due on Sunday 30th of March. We are looking forward to reading all of your essays!

Attempting to Solve the Issues Behind India's Gig Economy

Raghav Jasuja

The gig economy is defined as a labour market characterized by short-term contracts and freelance work. In India, the platform economy accounts for 1 3% of the workforce, projected to rise to 4 1% by 2029-30 However, there are shortcomings in this labor market, making gig workers devoid of rights that standardemployment employees possess

Understanding the Issue

The very reasons why the gig economy boomed initially have led to concerns for both its workers and future. In India, gig workers are classified as ‘individual contractors’, severing their social security access The Code on Social Security, 2020 defines a gig worker as ‘a person who participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship[s]’ The lack of a clear definition opens the door for exploitation, and the informal economy situation causes gig workers to struggle to find wage regularity or job security

Moreover, the lack of clarity within firms’ operating systems has been a point of concern Firms are not required to publish information regarding worker task allocation, driver rating systems, or distance-based fees calculations, potentially leading to further exploitation. Similarly, a major concern arising from the lack of regulation is discriminatory social structures based on identities such as caste, gender and religion, which serve to alienate workers belonging to disadvantaged groups.

Wider Implications of the Issue

The gig economy is seen as an opportunity where work is distanced from labor market barriers However, the discrimination pervasive in the platform economy is a concern, as it has an associated market failure: rising social inequality. Discrimination exists against female gig workers, who are concentrated in jobs that are low paid and devoid of social security, which can lead to workers feeling despair as their efforts fail to yield reward, decreasing work productivity. This is impactful in the gig economy, where each task yields income.

Politically, the lack of social security also raises concerns for India: is it equitable for gig workers in the world’s largest democracy to be denied access to public aid that protect otherwise similar standardemployment workers?

Policy Proposal

The first part of my proposition is to legally redefine the gig worker-aggregator relationship Countries like the UK, Italy and Spain have a status where gig workers are defined as ‘economically dependent self-employed’ persons with social protection provisions I propose the Indian legislative definition be changed to ‘an individual who performs work through platforms, including for multiple entities simultaneously, regardless of contract agreements between gig worker and platform owner’ This definition is more formal, allowing for a clear paper trail from firm to government This would also make the gig economy subject to the Employees’ State Insurance (ESI) scheme, where platform owners contribute ‘4 75% of the wages payable to employees’

Secondly, gig workers need to be eligible for more social security schemes. Countries like the UK have employment protections for gig workers, including coverage under ‘the National Minimum Wage…employer pension enrolment’ However, these policies would not work in the social setting of India, as pensions are smaller and there is no National Minimum Wage, due to large regional inflationary fluctuations, ranging from 6 05% in Odisha to 2 56% in Jharkand

Still, social protection for gig workers is a requirement The scheme I have in mind is Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (ABPMJAY), India’s health insurance scheme. This scheme provides health assurance to the poorest households in India, a solution to the Telanganga Gig and Platform Worker’s Union’s concerns over safety hazards of delivery drivers. Ayushman cards are issued to beneficiaries of the scheme, which could be adjusted to include gig workers. Access to ABPMJAY would increase gig worker access to secondary and tertiary healthcare, including life-saving complex diagnoses and specialized medical care

To further the positive impact of healthcare for gig workers, a Conditional Cash Transfer (CCT) scheme could be implemented Workers would receive a monetary payment regularly if they invest a proportion of this cash into healthcare checks and vaccinations CCTs have already been implemented in India with the intention to improve healthcare access, however, these schemes have not been implemented optimally For instance, the Bhagyalakshmi scheme failed to provide health insurance for female children due to lump-sum payouts A PAIGAM report found that close to 95% of gig workers earn less than 1000 rupees a day (estimated from page 25 table), equating to around $11.50. In many of these instances, a CCT lumpsum provision may be insufficient to encourage participation in the scheme, whilst staggered bi-annual payments may be attractive.

The final part of my policy provision relates to the power that firms currently exercise over gig workers As mentioned earlier, firms do not have a legal obligation to publish information regarding grievances, leaving room for exploitation By implementing legal measures where firms are required to address worker challenging of unfair decisions such as contract termination like that mentioned in Rajasthan’s Platform Based Gig Workers (Registration and Welfare) Bill, 2023: ‘[firms must] ensure time bound redressal of grievances related to platform-based gig workers’ (pg 27), this issue could be mitigated

Concluding Remarks

My policy solutions are not without flaw Redefining the gig worker-aggregator relationship legally requires care to ensure gig workers do not lose autonomy Moreover, creating a CCT scheme requires compliance, which has a large cost to the government

However, these issues are trivial when compared to the benefit the policy would bring about for the government: reduced social inequality, causing less expenditure on welfare benefits.

It is also important to note that the gig economy employs 7.7 million workers as of 2024, which is expected to rise to 23.5 million by 2030. Admittedly, the expenditure required would be large, however, India has an opportunity to establish a comparative advantage in gig economy social protection, the impact of which should not be understated, given the forecasts of the platform economy’s expansion

How does the exchange rate of USD to TL affect the Turkish inflation rate?

Mustafa Alp Ata

10 years ago, one US dollar could get you 2.6 Turkish liras; now a dollar is worth 35.5 liras. The Turkish lira has depreciated significantly in the forex markets, while consumer prices have soared Türkiye's recent hyperinflation is tied to the unconventional use of expansionary monetary tools during a period of instability and high inflation Recently we have seen an interplay between the USD to TL exchange rate and the Turkish inflation rate, both rising drastically Through regression analysis, determine the strength of this correlation between these variables and observe if this is a new trend or a historic relationship

The US dollar is the most influential currency in the world and therefore is prominent in the foreign currency reserves of central banks. Countries rely on the dollar for international trade deals due to its function as a standard for pricing essential commodities like crude oil. As Türkiye is an emerging economy with an unstable currency, the exchange rate against the US dollar has a severe impact on society. Türkiye holds a lot of debt in USD; therefore, depreciations of the lira increase debt repayments Furthermore, as the USD is critical for international trade, the cost of imports like raw materials and energy will increase in Türkiye This can lead to increased cost-push inflationary pressures in Türkiye As a result of the association of the US dollar with stability and economic prosperity, the exchange rate of the lira and the dollar plays a key role in consumer confidence levels, financial stability, and price fluctuations in the economy

Null Hypothesis (H₀): Change in the exchange rate has no effect on the inflation rate

Alternative Hypothesis (H₁): A change in the exchange rate leads to a positive effect (increase) in the inflation rate.

These hypotheses will be used to perform regression analysis I have collected annualised inflation data and the annual change in the USD to TL exchange rate in Türkiye for every month since January 2001 This dataset consists of 289 data points, allowing for robust regression analysis that considers long-term trends rather than short-term fluctuations This can be used to plot a line of best fit and find the correlation coefficient between the two variables This can be used to assess the strength of the relationship between inflation and the USD to TL exchange rate Using a strict significance level of 1%, R=0 135 is determined to be the critical value for a hypothesis test with 289 data points For there to be a positive correlation, the test's R value must be higher than 0 135 to reject the null hypothesis that the USD to TL exchange rate and the inflation rate are not correlated.

This graph represents the relationship between the change in the USD to TL exchange rate and the annual inflation rate (change in the average price level in the economy) Therefore, this graph is comparing the rate of change in price level with the rate of change in the exchange rate with the US dollar The line of best fit has a gradient of 0 544, which indicates that every time the lira depreciates 1 percent against the dollar, the inflation rate increases by more than half a percent This displays that there is a significant exchange pass-through in the Turkish economy.

Regression analysis of the data provides a correlation coefficient of 0.79, which is close to 1, suggesting a strong positive correlation As 0 79 > 0 135, there is sufficient evidence to reject the null hypothesis The R² value is 0 6296, meaning that 62 96% of the variation in the inflation rate is due to the USD to TL exchange rate This suggests that the exchange rate has a major influence on inflation in Türkiye

Although this regression analysis provides some meaningful observations about the relationship between the USD to TL exchange rate and the inflation rate in Türkiye, there are many limitations of this model that need to be considered Other variables like interest rates, global inflation levels, and fiscal policy are not factored into the calculations. As R²=0.6296, 37.04 percent of variance in price levels is caused by other factors and is not explained by the model. Additionally, there have been many shocks and unorthodox policy implementations in Türkiye during the last 25 years, which are unaccounted for by the model. This limits how well the model can depict this relationship across time periods with radically different economic conditions

Overall, this data represents how there is a strong correlation between the USD to TL exchange rate and the inflation rate in Türkiye The regression analysis displays evidence of this relationship as the null hypothesis is rejected As R²>0 5, this proves that this exchange rate is the primary factor that accounts for variations in the Turkish inflation rate along with other minor factors Despite limitations with the data and the model, this proves that the Turkish government and central bank should work to stabilise and control the USD to TL exchange rate, as further depreciation of the lira can reaggravate currently cooling inflationary pressures in the economy.

Taylor Swift: The Billion-Dollar Economics of a Mega-Star Aryav Odhrani

Taylor Swift needs no introduction The American music artist’s recent Eras Tour (March 2023 to December 2024) was a global phenomenon spanning 5 continents and 21 countries, grossing over $2 billion in ticket sales Apart from being the highest-earning concert in history, the tour strengthened the pop sensation’s fanbase with traditions like exchanging friendship bracelets and dressing up in erathemed outfits.

In addition to the music and spectacle, Taylor Swift extends her influence far beyond the stage; indeed, many recognise that the Eras Tour left a ‘lasting impact on the global economy’ (CNN, 2024), boosting the economies of dozens of cities This raises the question: how has Swift grown to wield such cultural and socioeconomic power?

More than Music

Throughout 2023 and 2024, Taylor Swift travelled the world on her record-breaking Eras Tour The effect on cities hosting her tour is massive: Swift’s 3-day stop in Melbourne generated $766 million of economic value (Forbes, 2025) Each stop, whether 8 shows in London, 6 in Los Angeles, or 6 in Singapore, boosted the economies of host cities by $100s of millions. This effect is because of the mass influx of Swifties, Taylor Swift superfans, that flock to her concerts worldwide. Across the 21 countries Swift visited, the singer attracted an average of 72,500 fans per show.

Since these attendees often travelled long and far to watch the concerts, they would have been likely to stay at the destinations beyond the show Inflows of visitors lead to increased flight and hotel bookings in cities, and additional revenue for taxis like Uber, restaurants, sightseeing spots, and other small businesses

Chicago’s tourism bureau announced a record hotel room occupation (97%), Colorado’s GDP boosted $140 million with increased consumer spending, and Philadelphia and Los Angeles faced the highest post-pandemic hotel revenue and tourism spending due to Swift’s presence. With the average fan spending over $1,300 on travel, food, and merchandise, it is unsurprising that the Eras tour generated around $5 billion for the US economy.

Taylor Swift’s tours exemplify the multiplier effect The initial spending by fans is an injection into each city’s economy, stimulating further spending in other sectors This economic activity especially benefits the hospitality, dining, tourism, and retail sectors Increased demand for these goods and services leads to increased business activity and increased derived demand for labour, causing firms to hire more workers

Boston noted a 1000% increase in the demand for part-time workers near Swift’s show The massive spike in demand for hotels and restaurants, as concertgoers converged to the show’s locality, led to many businesses increasing employment. The California Center for Jobs and Economy estimated that the Los Angeles County’s employment increased by 3,300 due to Swift’s six shows there.

In the short-run, the tour catalysed consumption and GDP growth of cities Singapore reportedly paid Swift up to $18 million to be the singer’s sole stop in the region, leading an influx of 300,000 fans who injected up to $375 million into the country’s economy More than this, in the long run, the Eras Tour boosted the reputations of destinations as cultural and entertainment hubs Singapore would have gained increased visibility on the global stage, potentially receiving increased foreign direct investment from infrastructure and tourism investors

Mastering the Industry

Taylor Swift recently joined the ranks of billionaires, with Forbes estimating her net worth to be $1 6 billion as of 2025 At just the age of 34, Swift became the first musician to become a billionaire solely due to music

Most of Swift’s wealth has been generated from her music catalogue and the sales of her records and tours Her music catalogue is worth $600 million, and her tours and royalties have earned her another $600 million (Forbes). Real estate is her third largest asset, being worth an estimated $125 million.

This demonstrates her mastery of the industry. Her strategic decisions in ownership, distribution, and marketing have maximized her earnings, allowing her to generate immense wealth and success In particular, the genius of Taylor’s Version must be noted: Swift turned her legal battle over her master recordings into a massive business opportunity At 16, Swift signed a record deal with Big Machine Records, giving them copyright to all her albums recorded with them When she departed from Big Machine, Swift was denied the ability to buy the copyrights to her own recordings, which were then sold to another executive Scooter Braun Taylor retaliated by embarking on a massive project to re-record her own Taylor’s Version of the albums

Swift’s innovative storytelling – portraying herself as a victim exploited by the music industry – gained the support of millions. Today, as a result of Swift’s marketing efforts and appeal to consumers, fans exclusively stream her versions, giving her all the credit and revenue. Swift’s original song “All Too Well” (2012) has been streamed around 40 million times (as of June 2024), while her new version has been streamed over 440 million times in just 4 years This is despite it being a much longer, ten-minute version

Demand and Scarcity

When it comes to Taylor Swift-related sales, scarcity is a significant factor Demand for her tickets far exceeds the fixed supply of tickets, determined by the capacity of concert venues As Tim Harford said in the Undercover Economist: strength comes from scarcity, and the excessive demand for Swift (relative to the supply of her ticket) gives her immense earning power. In fact, Taylor Swift makes approximately $13.6 million per concert (Forbes) – a result of the high ticket prices created from a combination of perfectly price-inelastic supply and high demand.

Despite this, secondary market sales are even higher While the average original Eras tour ticket sold for $204, resale prices averaged $1600 (or even $4000 according to some sources)! Some tickets were listed for upwards of $20000, demonstrating the power of scarcity that surrounds Taylor Swift

Business Lessons

Several key business lessons can be learned from Taylor Swift’s rise to stardom

First, ownership matters Whether it’s music, patents, or proprietary technology, controlling your intellectual property ensures long-term profitability and leverage in negotiations Taylor Swift’s significant move to reclaim her master recordings created an entirely new revenue stream, leading to her success today

Second, build a direct-to-consumer model. Many artists rely on record labels and third-party distributors. Swift has a direct, close relationship with her fanbase via social media, surprise drops, and exclusive releases Her website minimises middlemen by being a hub for merchandise and event presales Cutting out intermediaries while maintaining effective marketing can lead to increased profit margins

Finally, engage your consumers Swift’s fanbase is not a regular audience but is arguably one of the world’s most closely-knit communities From friendship bracelet traditions to the gifting of her 22-song hat, Swift nurtures immense loyalty from her fans This cultivates a strong brand that markets for itself

“If she were her own economy, she would be bigger than 50 or so of the poorest nations in the world,” said Professor Gustafson at Penn State Harrisburg. Swift’s success is more than just talent: it’s masterclass branding, demand creation, and consumer engagement. Ultimately, it’s this business astuteness that has made her the billion-dollar industry she is.

Foreign Aid and What Happens Next?

Sanaaya Patel

A few weeks ago, the news was filled with announcements that one of the first things that Donald Trump did, upon taking office, was to suspend all of the US's foreign aid Shortly after, Elon Musk, his political sidekick and billionaire, said that the US Agency for International Development, set up in 1961 by J F Kennedy, needed to be fed “through the woodchipper” This rhetoric doesn’t only stem from the US; other countries have followed suit, notably the UK, as Sir Keir Starmer slashed the aid budget to 0 3% Meanwhile, rising global powers like Saudi Arabia, India and China have increased their financial overseas investments This raises the question of the future of the fragile industry in an uncertain geopolitical climate

In the early 2000s, an era for globalisation, international cooperation, optimism and diplomacy, global aid and its capacity were rising significantly. The US was spending 3% of its GDP on its development budget as the UN’s development goals were introduced. However, the world is a very different place now People no longer share the positive-sum view; as they have become more concerned about domestic issues, the appetite for aid has waned While a couple of decades ago, there was a strong drive to provide aid for the benefit of the recipient, the motive has now shifted to self-interest The world has become too political, which has meant that development agencies have been merged into other departments, such as the UK’s Department for International Development, and their capacity has fallen with that

Aid takes its form through ‘humanitarian relief, long-term development and power projection’ As a result, it is highly unlikely that we will ever return to a place where the desire for aid is as strong Minouche Shafik, speaking to the FT, argued that this stemmed from the financial crisis which highlighted the ‘winners and losers of globalisation’, as well as the building up of pressures for defence and public spending. Though while the traditional aid donors of the Western world have decreased their spending due to slow growth and domestic priorities, total aid continues to rise with the composition of the benefactors changing

In general, despite the cuts to aid, most people would say that the main reason behind giving aid ‘is to do good’ but want to know that the money has been effective In the US, Americans believe that most aid doesn’t achieve its goal The last 100 years have seen a level of progress far greater than it has ever achieved; there is wider access to education and healthcare, and as a result, less than 10% of the world lives in poverty. But we can never know whether this was directly due to aid. Though controlled trials and studies have shown that well-executed aid has generated positive outcomes, particularly in South Asia, Latin America and Africa. It has had an immediate impact on the world’s poorest in providing greater access to education, health and safety, which in turn has had huge consequences for higher productivity and life expectancy. Currently, US assistance constitutes almost 30% of global funding These cuts will disrupt essential services to the world’s poorest, from HIV to providing social care – many will die Abhijit Banerjee says while not all aid delivers success, “we will be left in a world with more misery” if the richest nations decide to turn their backs on aid

Another implication for the reduction in aid by Western nations is the reduced soft power influence in the developing world, especially with the growth of other countries that see this as an opportunity to increase theirs There has already been a shift in the way aid is spent In the past, reducing poverty was the main aim, which involved ensuring early school and vaccine care access Whereas now in a polycrisis world, in which developing nations are unfortunately affected disproportionately, aid is being spent on humanitarian aid in response to the rise in crises Moreover, the aid that has come out of countries like China, which has set up its Asian Infrastructure Investment Bank, tends to be heavily focused on commercial infrastructure rather than human development An example would be China’s Belt and Road Initiative While some may argue that the fact it is tangible may be more beneficial than receiving aid that only yields long-term results, it has not delivered the same impacts Many projects have been credited as white elephants and have led to huge debt overhangs for developing nations, who are now faced with servicing their often-unsustainable debts rather than spending on domestic health and education. In turn, the cuts will further pressurise the countries to find more resources to support the programmes like HIV that were in place before.

The opportunity costs of aid for Western nations are rising At the same time, it marks an opportunity to reform aid Nations are now forced to address their dependence on overseas money As Dambisa Moyo argues, Africa is “addicted to aid”, which should be scrapped altogether Malawi has greater foreign aid spending than domestic Abhijit Banerjee suggests that this is the moment for the rest of the world and for private philanthropists to take the lead The world’s 3,000 richest would cover the budget of the five largest donors with only 1% of their wealth The new donors that are filling in the vacuum are likely to have greater political interests in developing nations than driving living standards higher. Ultimately, the world is no longer the same as it was, and governments must improve their reforms and governance to achieve growth on their own terms.

Economics in the News

Book Review: The Bottom Billion by Paul Collier and Dead Aid by Dambisa Moyo

Mr. Christopher

You may have heard me referring to these two books in class and for good reason If you’re interested in global affairs and the study of international development, The Bottom Billion by Paul Collier and Dead Aid by Dambisa Moyo are two of the most thought-provoking books you could pick up Both are short, highly readable, and challenge conventional wisdom on how to tackle poverty perfect if you want to engage with big debates without wading through dense academic texts

At first glance, these books seem to be tackling the same problem: why do some countries stay poor while others grow? But their approaches couldn’t be more different. Collier, an economist with years of experience advising governments and institutions like the World Bank, argues that around a billion people worldwide are trapped by four key obstacles: conflict, bad governance, natural resource dependence, and geography His book is filled with eye-opening statistics and case studies that highlight just how difficult it is for some countries to break free from these traps

One of the most memorable examples he gives is that of Sierra Leone, a country that was rich in diamonds yet plunged into a brutal civil war in the 1990s Rather than fuelling development, its resources funded armed groups like the Revolutionary United Front, who used diamond profits to buy weapons and sustain conflict. Collier describes this as the “resource curse”, where natural wealth ironically makes a country more vulnerable to corruption and violence rather than economic progress. The problem, he argues, isn’t just poverty it’s that some countries are actively stuck in cycles that prevent them from escaping it

Moyo, however, takes a very different stance In Dead Aid, she argues that traditional foreign aid has done more harm than good, encouraging corruption and dependency rather than genuine economic progress She pulls no punches, writing: “No nation has ever attained economic development by relying on aid to the degree that many African countries do today ” Instead, she champions free-market solutions, foreign investment, and microfinance as the real paths to prosperity.

One particularly powerful example she highlights is how Zambia’s economy collapsed after it became heavily reliant on aid in the 1970s and 1980s With Western governments providing endless financial support, Zambian leaders had little incentive to implement economic reforms Meanwhile, neighbouring Botswana one of the few African nations to reject largescale aid pursued prudent economic policies, encouraged private sector growth, and is now one of Africa’s most successful economies Moyo argues that this isn’t a coincidence: Botswana thrived because it wasn’t trapped in an aid dependency cycle

Reading these books together is fascinating because they constantly challenge each other’s perspectives. Collier doesn’t reject aid entirely he argues it should be smarter, focused on specific areas like peacekeeping in war-torn regions or infrastructure investment. He cites Uganda as an example of where aid has worked when donors directly funded the building of primary schools, literacy rates rose significantly. However, he warns that too often aid is given to the wrong places countries with corrupt leaders who siphon it off for personal gain

Moyo, on the other hand, would rather shut off the tap completely, believing that only when governments stop relying on external funding will they take real responsibility for their economies She’s particularly critical of celebrity-led aid campaigns, such as Bob Geldof’s Live Aid or Bono’s advocacy for increased development funding, arguing that these well-intentioned efforts ignore the deeper structural issues at play

Neither book is without flaws. Collier sometimes appears overly optimistic about interventions like military action to stabilise failing states ideal in theory but far messier in practice. He suggests that in extreme cases, Western military forces should help restore order in failing states, but history has shown that outside intervention often backfires (think of the disastrous US-led interventions in Iraq and Afghanistan) Meanwhile, Moyo’s belief in market-led solutions can seem naive, given the risks of exploitation and the challenges of attracting investors to fragile economies

Despite these criticisms, both books are essential reading for anyone interested in how economics shapes the world’s poorest nations They bring abstract concepts like government failure, market failure, and globalisation to life with real-world examples, making development economics feel far more tangible than a textbook ever could. More importantly, they force you to question conventional wisdom whether it’s the assumption that aid is always helpful or the idea that free markets alone can solve deep-rooted problems.

So, if you’re looking for books that will challenge your assumptions, spark debate, and help you understand the global economy in a deeper way, The Bottom Billion and Dead Aid are well worth your time They might just change the way you see international development

Economic Assassination: A Blueprint to Manipulate Globalisation

Dhruv Arora

“Economic hitmen are highly paid professionals who cheat countries around the globe out of trillions of dollars. They play a game as old as Empire but one that has taken on terrifying dimensions during this time of globalization ” (Perkins, 2004) This statement refers to the actions of international consulting firms that convince developing countries to accept enormous loans and to funnel that money to U S corporations, this form of manipulation has been dubbed as “neo-colonialism” by many, and this is why.

In the 1970’s, professional consultants in different fields were tasked with the job of convincing leaders and organization at underdeveloped countries to accept significant loans that would serve the purpose of funding large construction projects in the country The countries were convinced that their GDP will grow, unemployment will improve and that the country will develop based on detailed reports prepared by consultants These substantial projects would be contracted out to U S companies, essentially putting money from the loan back into the hands of corporations, with the loan still there to repay which these economic hitmen knew would be impossible for poorer countries to cover This provided immense political influence for the US and access to a plethora of natural resources for American companies, making the rich richer and the poor poorer.

Additionally, the presidents of these countries that accepted such loans knew that they were putting their country into deep debt but as a result of their corruption, accepted the loans regardless. This is because these presidents were also going to boost their wealth through this as they own the businesses involved, but there was another incentive for them. There were often CIA “assets” or spies in the background that were used to overthrow governments or assassinate their leaders, essentially forcing some of these presidents into accepting the loans (Perkins, 2020)

The drivers of this, the bankers proposing and closing the deals with these countries know that if they can work a couple of large deals in a year, they will be promoted to president of the bank or another powerful position; that's how they succeed in the bank, by getting these loans done If these bankers don’t complete these deals because of their morals and honesty, they are essentially shooting themselves in the foot, destroying their own career. More often than not, these bankers, when asked, will say that they have no choice, hence this problem is a systemic problem

These acts committed by U.S corporations as a means of gaining power has transformed into a blueprint for others to follow in the footsteps, particularly China China have recently begun an initiative known as the “Belt and Road Initiative” or BRI for short (McBride, J., Berman, N. and Chatzky, A., 2023) The BRI is one of the largest infrastructure projects in history and the main idea is to act as a silk road, stemming from China, to make it easier for the world to trade with China by funding roads, railways, pipelines, ports and other facilities across Asia and Africa. China is loaning billions of dollars to countries willing to participate with the vision of China becoming the world's next superpower China’s goals are not strictly economic, but largely geopolitical. The blueprint painted by the U.S in the late 20th century is the formula China is using for the BRI to come to fruition

A prime example of this is Sri Lanka In Sri Lanka, China loaned about $307 million to the government for construction of a new port (Shackle, S 2018), which would be a key stop on China’s maritime silk road It soon became clear that Sri Lanka would be completely unable to pay back the loan, so instead they gave China control of the loan as part of a 99-year lease (Stacey, K 2017)

A similar thing happened in Pakistan, where China controls a strategic port as part of a 40-year lease (Theasset com 2017) China is pushing for a similar agreement in Myanmar, and they have also opened a Chinese naval base in Djibouti. Essentially, China is trying to establish a string of naval bases in the Indian Ocean, allowing China to station ships and guard important shipping routes in the region Furthermore, like the U.S had done, all the infrastructure projects are contracted out to Chinese firms. Chinese construction companies that had fewer opportunities within China saw a huge boost in their growth through the BRI contracts, developing the Chinese economy and furthering their status as a global superpower Additionally, China cleverly used prison inmates as labor to solve 2 problems: prisons in China became empty and their cost of maintaining prisoners went down, as well as the countries where they were deployed paid the wages to these laborers, significantly boosting the Chinese economy. China effectively uses the neo-colonialism strategy to kill two birds with one stone: forming their silk road to cement themselves permanently in global trade and to boost their own economy at the expense of other economies

This is a classic display of free market capitalism that produces excessive inequality, a handful of elites get richer at the cost of millions of poorer people The strategy employed by economic hitmen in the 1970’s has done immense damage to underdeveloped countries and likely will do so for many years to come through China, the world's next superpower.

The Economics of Luxury: How Do Luxury Brands Shape Global Consumer Behaviour?

Inaya Bhasin

How In a world where the price of a luxury handbag can surpass the annual salary of an average worker, luxury brands are more than just providers of high-value goods; they are shaping global consumer behaviour. Luxury has always been synonymous with exclusivity, status and fine craftsmanship, but in recent years the concept of luxury has evolved with cultural advancements, influencing consumer behaviour far beyond their original markets. Brands such as LVMH and Hermès are leaders in this change in transformation, using price strategies and illusions of scarcity to create an environment of exclusivity that drives demand

Unlike typical consumer goods, which have fluctuating demand and supply in more standardised markets, luxury goods often follow more unique principles One principle is the Veblen good, a type of luxury good named after American economist Thorstein Veblen Usually, the law of demand states that when the price of a good increases, demand decreases However, the Veblen good is an exception whereby it will see an increase in demand when price rises The abnormal demand for Veblen goods is influenced by the “snob effect”, a situation where consumers prefer to own exclusive products that are different from commonly preferred ones, leading to higher demand for goods when price increases. The graph below shows this effect of the Veblen good. Luxury brands, particularly those under LVMH, maintain high prices and restrict supply to take advantage of this psychological effect, ensuring the products are still desirable

Apart from pricing, the illusion of scarcity is critical in reinforcing the exclusive nature of these goods On the contrary, for mass-market brands, that aim is to maximise profit by maximising revenue and production; companies like Hermès deliberately restrict the quantity of certain products to maintain the products' rarity Whilst the craftsmanship of a Birkin Bag takes up to a minimum of 18 hours as it is handcrafted, Hermès instils a quota system for its most popular bags: the Birkin, Kelly and Constance Clients can only purchase two quota bags per year However, customers cannot simply walk in and purchase a Birkin or Kelly on demand. Instead, they must establish a purchase history with the brand by purchasing belts, shoes, homeware and scarves before they are considered for the extremely popular handbags. This tactic is often referred to as “Birkin Bait”, where customers are incentivised to spend thousands on non-desired products in hope of being offered a quota bag. This system ensures that Hermès is highly profitable, generating a lot of revenue before offering a quota bag. Furthermore, this exclusive nature creates a sense of status and accomplishment, ensuring only the most brand-loyal customers can obtain these rare bags, reinforcing the desirability on a global scale

Similarly, this strategy is also seen in the luxury watch market, particularly those with Rolex and Patek Philippe Similar to Hermès with the “quota bag”, these brands also control supply by limiting the availability of their most iconic pieces, such as the Rolex Daytona and Submariner as well as Patek Philippe’s Nautilus and Aquanaut These watches are not offered to walk-in customers; instead, a relationship must be built with the retailer for those interested in purchasing, with prior purchasing of lower-demanded jewellery. This strategy forces customers to increase their overall spending, even if they had no initial intention of purchasing multiple watches. Moreover, by making these products seem inaccessible, luxury brands manipulate consumer perception, making customers and shoppers view these purchases as worthy investments rather than simple consumer goods It has been a key strategy, as in 2023, Rolex produced 1 24 million timepieces with sales of $11 5 billion, as reported by Morgan Stanley's annual watch report

Whilst historically associated with European elites, luxury brands have successfully tapped into emerging markets in Asia and the Middle East, where the rise of HNIs has increased the demand for high-value goods Through the global expansion of luxury goods, companies such as LVMH have adapted strategies to enter these new markets. China, which has a luxury market valued at $57 billion annually and is a significant player on the global stage. To capture markets like these, companies such as Chanel, LVMH and Hermès have heavily invested in flagship stores with exclusive marketing tailored to national and regional preferences. One of the most significant annual events in the luxury market is Chinese Lunar New Year, which is associated with prosperity, family and giving Brands such as Louis Vuitton, Dior and Rolex often launch limited-edition Lunar New Year collections to celebrate this festival and appeal to Chinese cultural traditions In India, which was reportedly the most dynamic luxury market, recording greater relative growth than other emerging countries and established markets worldwide, Diwali is a significant festival where brands such as Cartier and Bvlgari launch special collections catered to this audience This often includes gold and stone embellishments to align with the themes of prosperity and wealth By tailoring luxury to specific cultural events, brands influence consumers to make impulse purchases to avoid missing out on limited collections.

In summary, luxury brands shape consumer behaviour by using high prices, the illusion of scarcity and cultural exclusivity to drive demand. Strategies like the Hermès quota system and Rolex’s restricted supply force consumers to spend more, reinforcing luxury as a symbol of status and investment. Through tailoring products to regional markets and cultural festivals such as Lunar New Year and Diwali, luxury brands create urgency and reinforce exclusivity to ensure long-term desirability Ultimately, luxury brands do more than sell goods – they hold the power to dictate how and why consumers buy

Trump Triggers Tariff Trouble: Canada, China, and Consequences

Simar Bhasin

Recently, Trump imposed import duties that primarily impact goods from China, Mexico, and Canada. According to Trump, these tariffs will address the significant fentanyl drug trafficking and immigration problems on the US borders while also protecting domestic companies and workers These tariffs consist of a 10% tax on Chinese goods and 25% tariffs on imports from Canada and Mexico. In addition, Canadian energy exports like gas and oil are subject to a 10% tax

Reactions and Responses

In retaliation, Canada has responded with direct tariffs targeting US goods for example a 100% tariff on rapeseed oil and pea imports as well as 25% tariff on seafood and pork products. Moreover, Mexico has spoken on possible responses which targets agricultural exports like corn and wheat Likewise, China has escalated its response, drastically impacting farmers whose income heavily rely on exports, by increasing tariffs on products like soybeans and pork Many argue that Trump tariffs are hurting the US These reactions demonstrate the growing tensions between these countries which raise further concerns on the effect on global market and economies.

Impact on US consumers, Business and Farmers

The tariffs have created many negative effects and challenges to many sectors of the economy. One of the main stakeholders are farmers, as they heavily rely on exported goods however since China, a major consumer of soybean and porl, imposed tariffs has increases prices for farmers. According to the Financial Times, the US agricultural exports to China has dropped by 20% in 2025 Farmers have expressed concern on the impact of the retaliatory tariffs because it restricts access to the US’s important export markets inclusive soybeans, pork and corn and have urged Trump to quickly end this ongoing conflict

Another impacted stakeholder are Grocery stores such as Target and Walmart whose aim is to provide affordable goods for all however warned that the tariffs are drastically increasing the price of imported goods, fruits, vegetables and electronics. Furthermore, these effect the customers as the price increases there are financial strains and budgets that reduce purchasing goods

Despite this, domestic industries like steel and aluminium have seen significant growth due to the reduced competition of foreign imports As of the Financial Times, US steel production has increased by 5% in 2025, generating over 2000 new jobs As a result of this, it provided stability for workers in manufacturing has stayed stationary over the years.

Conclusion

The new tariffs which trump has introduces have creates both negative and positive impacts. Due to the retaliatory tariffs, domestic industries have seen expansion and growth with increased production rate and generating new jobs. However, majority of the consumers, farmers and businesses are struggling with this trade war duw to the reliance on both imported and exported goods and the struggle with the higher costs In the future, balancing the needs of domestic workers, consumers, businesses and international relations is critical to ensure economic growth and decreased tension between countries

The Decoy Effect

Derin Conroy

The decoy effect is a pricing technique that takes advantage of consumer’s cognitive bias in order to make targeted products seem more appealing to them

When deciding between two differently priced products (e g popcorn boxes at a cinema) consumers may often select the smaller size that comes with a cheaper deal – however, the consumers preferences often changed when they are presented with a 3rd inferior option.

What makes the Decoy Effect so Compelling

As consumers, we rarely evaluate choices individually; instead, we naturally compare them to other options The decoy effect exploits this tendency through the introduction of a tactically placed ‘bad’ option that anchors our perception of value By offering a choice with lower value businesses can guide consumers towards a preferred (more profitable) option that suddenly seems much more appealing by comparison.

Also, when faced with three options, many consumers – especially those unsure of what to choose – will gravitate toward the middle option as a compromise between cost-effectiveness and enjoyment, a wellplaced decoy makes the targeted option appear obviously more valuable, nudging uncertain consumers towards the selected choice.

Additionally, if consumers feel that they are being deceived or tricked into a choice, they may reject all options out of principle, the subtleness of the decoy effect allows the consumers choice to feel natural rather than forced and maintains the consumer’s perception of free choice

How to avoid falling for the Decoy effect

The main function of the decoy effect relies on our instincts as consumers to judge our options through comparison rather than assessing their true value individually. When making every day purchasing decisions avoid immediately comparing options to one another Instead, evaluate each option on its own Consider whether the price, quality and features justify the products cost without the influence of surrounding options Only after evaluating the options true value individually should you compare them to make a judgement This ensures that your decision is based on the options actual value rather than the artificial contrast manufactured by businesses.

How to use the Decoy Effect as a Business

The decoy effect is useful as it allows businesses to increase sales of a certain product This means they can specifically target products that are more profitable or aligned with their sales targets

To apply the technique the business needs to create a strategic product line up featuring low-end, middle and high-end (decoy) options The low-end option should be priced attractively but offer minimal features/benefits signalling that it is a clear budget choice. The middle option is where business should position their targeted product, it needs to appear the best value by comparison –offering more benefits than the budget option whilst being considerably cheaper than the decoy. The decoy option should be the most expensive choice, offering only slightly better features than the target product but being disproportionately more costly. This anchors the consumer’s sense of value and makes the target product seem far more appealing

Whilst the decoy effect is a powerful tool, if abused or made too obvious, consumers may feel forced to make a choice which harms the brand’s reputation and their customers loyalty It is important that each option provides fair value even if the decoy’s entire purpose is to make the target option more appealing.

The Economics of Sneaker Culture: Why Are Shoes So Expensive?

Aarav Dave

Sneaker culture has grown from a niche interest to a multi-billion-dollar, worldwide industry No longer seen as athletic footwear, sneakers – particularly high-end brands such as Air Jordan and Yeezy – have become status symbols, investment products and a highly profitable sector within the resale economy. For instance, a pair of Air Jordan 1 “Chicago” shoes that originally retailed for $160 in 2015 can resell for more than $2000.

The high cost of these sneakers is not only due to production expenses but also to the economic principles of scarcity, marketing and the secondary market where these sneakers are resold This article provides a thorough analysis of these factors and determines how sneaker pricing reflects broader notions of supply and demand, consumer behaviour in marketing and speculative investment

Scarcity: The Power of Limited Availability

One of the primary drivers of high sneaker prices is artificial scarcity Brands like Nike and Adidas release limited numbers of highly sought-after models with the intention of creating exclusivity and maintaining consumer demand. This is a classic example of supply and demand, as the perceived supply decreases, the perceived value increases. Nike and Adidas use ‘drop culture’, where there are limited releases, creating “hype”. Nike’s Travis Scott x Air Jordan 1 Low, launched in 2023, had just 150,000 pairs globally. With a retail price of $150, resale prices inflated to over $1500 within hours of the launch The brand-induced scarcity turns these sneakers into collector’s items, which inflates secondary market prices

Brand Hype and Psychological Demand

The high demand for premium sneakers exceeds their intrinsic value The cultural relevance and history of Air Jordans, along with Kanye West’s impact on fashion through Yeezy, have propelled these brands into the luxury space Similar to luxury handbags or watches, the possession of a limited-edition sneaker signals wealth, status and cultural cachet

Psychologically, consumers tend to equate limited-edition products with prestige and superior quality Business Insider found in a study that 67% of sneaker consumers acknowledged that the exclusivity factor influenced their purchasing decisions Moreover, Nike and Adidas employ celebrity endorsement, collaborations and storytelling strategies that create perceived value. Specifically, the Air Jordan brand brings $5 billion annually in revenue for Nike

The Resale Market: Sneakers as an Investment.

The sneaker resale market has evolved into its own industry The global market was worth $6 billion in 2019 and is projected to reach $30 billion in 2030 (1) The growth has created sneaker reselling sites such as StockX, GOAT, and eBay that operate in the same manner as stock markets, with the prices of the sneakers changing in accordance with demand from buyers

For example, Kanye West's Adidas Yeezy Boost 350 "Turtle Dove" retailed for $200 in 2015 but now retails for resale values of more than $2,500 Some sneakers have even been referred to as alternative investments, the same as pieces of fine art or cryptocurrencies. Sneakercollectors and resellers purchase limited-release models strategically, hold them, then resell when the market is at its peak.

The Economic Impacts of Sneaker Reselling

The sneaker resale market has transformed conventional retail business models. While Nike and Adidas, among other brands, profit from initial sales, resellers exploit the shortage, selling the shoes for massive profits This has resulted in an expanding sneaker economy in which young entrepreneurs have established companies focused on trading in the resales of the most sought-after models

According to research by StockX, over 50% of sneakers resold on their platform appreciate in value within six months Limited edition sneakers, in particular, have an average resale markup of 300% In some cases, "sneaker bots" automated software programs are used by resellers to buy large quantities of exclusive drops, exacerbating market shortages and further inflating prices

Economic Principles at Work

The inflated prices of sneakers are evidence of some fundamental economic principles:

1. Elasticity of Demand – Where others face declining demand when prices go up, luxury sneakers defy this principle. The effect of exclusivity presents the opposite response to prices: increasing prices can induce demand.

2. Market Speculation – Similar to stocks, sneaker consumers speculate on future value. Speculating on scarcity-driven appreciation, consumers keep sneakers as long-term investments

3 Consumer Psychology – Brand image, celebrity endorsements and marketing stories create an effective bond justifying premium pricing

Challenges in the Shoe Industry

While the sneaker business continues to thrive, it faces numerous challenges:

1 Counterfeits – The rise of sneakers’ counterfeits in the resale market constitutes a major threat Current estimations project the world market for counterfeit sneakers to have an approximate value of $450 billion a year

2. Manufacturer and Retailer Control – Brands are pushing back against the practices of resellers. In 2022, Nike implemented tighter buying regulations to restrict reselling, in the hope of getting sneakers to actual consumers instead of speculative purchases.

3. Sustainability Concerns – The faster sneaker business leads to environmental concerns due to high production volumes and non-sustainable materials Brands such as Adidas have introduced green initiatives, such as producing sneakers from recycled plastic, but the impact is still low

The astronomical prices of sneakers are the result of a brilliantly engineered economic ecosystem Artificial scarcity, prestige branding and resale speculation all contribute to their exorbitant prices While we still wear sneakers everywhere, these “limited edition” shoes have transcended their original purpose, morphing into status symbols, investment opportunities and cultural icons As the resale market expands, so will the battle over moral arguments, accessibility and the evolution of sneaker culture It remains uncertain if sneaks will remain a collector’s indulgence or once again become mass-accessible mainstays, but at present, they embody the tumultuous convergence of economic imperatives, cultural movements and buyer mindset.

The Numbers Behind Debt Relief: How Maths Can Help Lift Developing Economies Out Of Poverty

Yorgen Engmann

Zambia became the first country in Africa to default on debt during the COVID-19 pandemic in 2020 The country owed more than $12 billion to overseas creditors and was left with the difficult choice between continuing to pay creditors or diverting resources towards poverty alleviations and healthcare But how do we actually calculate the actual impact of debt relief on economies like Zambia?

The answer lies within the power of mathematics Poor countries are typically in debt The 12% government expenditure by poor countries on debt servicing last year was higher than the 7% the same countries spent a decade ago on servicing debt. The opportunity cost of this is that it leaves no room for the investment required in infrastructure, education, and medicine. For instance, debt repayment eats up more than expenditure on healthcare alone in more than 15 countries in Sub-Saharan Africa. Additionally, debt also chases away foreign investment and thereby stifling economic growth. Mathematics supplies the means for assessing the poverty-reducing effect and economic growth induced by debt relief Dynamic modeling is one of the major methods employed here, replicating the development of economies over time by simulating the relationship between key variables such as debt, investment, and GDP growth A model, for example, may trace how the GDP level changes with time as a function of the level of investment and the debt service burden

How it Operates in Practise

Debt Servicing and Investment - A country which spends the majority of its expenditure on debt servicing does not have much left with which to invest in productive sectors like the constructing roads, schools, or hospitals Dynamic models capture this trade-off by establishing a direct relationship between debt servicing and the amount of investment a country can make

GDP Growth Through Investment - When nations do not owe debts, they are able to spend and thus produce a higher GDP over time. Dynamic models illustrate this relationship through the process by which higher investment is translated into higher output.

Feedback Loops - Dynamic models also consider feedback loops. For example, faster GDP growth may imply the collection of higher tax receipts, which can be reinvested back into the economy, leading to a cycle of expansion Conversely, excessive debt can create a vicious cycle where poor investment triggers poor economic expansion, further reducing the ability to service the debt

By simulating such behavior, dynamic models allow economists to predict the long-term impact of debt relief For instance, studies with such models have found that debt servicing can be reduced by 10% and increase GDP growth by 1 5% per annum for poor economies This is because the money saved through the debt servicing can be channeled back into the economy, leading to the creation of new jobs, infrastructural developments, and enhanced productivity. Cost-benefit analyses are also a useful tool, weighing the expense of debt relief (e.g., costs for creditors) against its advantages (e.g., increased GDP and poverty alleviation). The Heavily Indebted Poor Countries (HIPC) Program, launched in 1996, used such analyses for debt relief eligibility and impact assessment. Through 2019, HIPC had provided debt relief totaling $76 billion to 36 countries and enabled them to increase expenditure for education and health by 3% GDP

Case Study: Debt Relief in Action Uganda offers a striking illustration of the potential for liberation through debt relief With the release of $2 billion of debt relief under the HIPC program, the country increased expenditure on education by 50% and saw a revolutionary increase in the school enrollment rate Similarly, Mozambique used debt relief for a national immunization program reducing child mortality by 20% within a decade Examples such as these prove how rational policy decisions can be made with the aid of mathematical modeling Despite all the potential, debt relief is not a surefire solution

Math modeling depends upon assumptions e g , the assumption that resources made available through debt relief will be invested productively Those assumptions may prove to be wrong in some instances For example, if corruption diverts resources from productive investment, the payback from debt relief will be zero. Additionally, external factors such as world economic trends and political unrest can also complicate the process. Economist Joseph Stiglitz has captured the point well: "Debt relief must be accompanied by governance reforms to ensure sustainable development".

In the future, mathematics involving machine intelligence and big data analytics opens the door to new opportunities for refining debt relief models. Machine algorithms can sort through historical debt outcomes and economic indicators to better predict the impacts of relief schemes As well as that, debtfor-nature swaps whereby debt relief is exchanged for conservation can also be made economically and environmentally efficient with the aid of mathematical frameworks Debt relief isn't loan forgiveness it's unlocking the potential of nations With the predictability of mathematics, we may be able to translate every dollar of debt relief into tangible, measurable benefits for the world's most vulnerable economies With the global threats of climate change and pandemics now facing us than ever before, the need for results-based, equitable solutions could not be stronger

The Rise of BRICS: A Challenge to Western Economic Dominance?

Ryka Gehi

BRICS is an intergovernmental organisation of ten countries (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates), which aims to promote economic growth, development and cooperation among its member countries while aiming to reform the international financial and political system to better reflect the interests of emerging economies (East Asia Forum, 2021) The creation of BRICS was a response to the growing influence of these nations in global economics and politics, providing them with a stronger collective voice and influence in international affairs. Due to the increasing influence that BRICS continues to possess, many wonder if their power will have the ability to challenge traditional Western economic dominance.

The BRICS nations have emerged as key players in the global economy due to their rapid economic expansion and economic cooperation among its members. It is important to note that these countries are extremely diverse in their economic strengths, however they share a desire to reduce their dependency on Western financial institutions and currencies The BRICS economies also account for an estimated 37 3% of global GDP, and China alone represents 19 05% while India accounts for 8 23%, in comparison to the G7’s 30% (the world economic forum, 2024) Of February 2025, BRICS is a potentially high volume of global GDP, about 35% and continues to get bigger every year Russian deputy prime minister Alexander Novak expects that in the next 10-15 years the share of BRICS countries’ GDP will be more than half of the entire global economy This clearly depicts the increasing economic influence of these emerging economies, showing how they are a challenge to the west. Furthermore, China, the largest economy within BRICS has experienced consistent economic growth due to its continued industrialization and technological growth, positioning itself as the world’s second largest economy. Along with India, which has surpassed the UK as the fifth largest economy. Moreover, Russia and Brazil excel in agriculture whilst south Africa serves as a gateway to African markets Due to the diversity and the collective economic momentum, BRICS clearly challenges western dominance however internal challenges raise questions about its long-term influence

It is without a doubt that BRICS has not only established itself as a growing economic power but has also altered and influenced global trade and finance For example, by promoting alternative mechanisms like the New Development Bank as well as bilateral trade agreements, the provide options for member countries and contribute to the diversification of the global economic system The New development bank was established in 2015 to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economics and developing countries (World economic forum) Removing the dollar as a global reserve status will be detrimental to the US economy and would likely impact the US dollar, potentially leading to a decline in demand (de – dollarization) Therefore, it is evident that the BRICS are slowly trying to move away from western dominance, weaking the power of the US especially, by proving alternatives to the World bank and the IMF.

Despite the significant growth and influence of BRICS in global politics and economics, the organization does face a myriad of challenges internally and because of external factors This is because of divergent interests among member countries, differences in political systems and ideologies, as well as the need to maintain sustained economic growth The bloc has sought to coordinate its members’ economic and diplomatic policies but has struggled with internal division on a range of issues, including relations with the United States and Russia’s invasion of Ukraine Furthermore, achieving consensus among its diverse members is the largest problem it faces, as each country has different viewpoints Overall, to maintain their influence on a global platform, the countries in BRICS need to have consistent economic growth, which might not always be possible due to the everchanging global economy

In conclusion, there is a lot of evidence that supports the increase in global influence that BRICS has through the establishment of the new development bank as well as increasing the number of members as of 2024. This allows BRICS to reduce its dependence on the Western countries, such as the US, as well as challenge the traditional dominance of Western powers However, it is also vital to take into consideration the challenges that are posed to BRICS that prevent the organisation from becoming more dominant than western powers For example, internal disagreements and the impact of geopolitical events which result in discrepancies, limiting their influence Therefore, one could argue that even though the dominance of BRICS is increasing on a global level, there are a variety of factors that prevent them from overtaking traditional Western dominance

Does a Maximum Wage Reduce Income Inequality or Harm the Economy?

Anika Jethwani

A maximum wage is a price ceiling and legal limit on how much an individual can earn. In order for this to be effective, it should be placed below the equilibrium wage rate, as shown in the graph below This would mean that salaries are capped at a certain level, preventing a higher level of disparity between workers who earn a vast amount of money in comparison to others, aiming to lead to reduced income inequality in the world of work Income inequality is the difference of how income is distributed across a population and is measured through the GINI index, where the closer the value is to 0, the more equal the society is

A maximum wage can be beneficial to the economy by reducing income inequality While there has not necessarily ever been a proper maximum wage, America has been close, having implemented similar policies. In 1942, the president Franklin D. Roosevelt proposed a marginal tax rate of 100% on incomes over $25,000 per year – equivalent to about $375,000 today. During the time that this tax evolved and was in place, Does a maximum wage reduce income inequality or harm the economy?America became a much more equal society, as in 1913, 18% of incomes were going towards the top 1% of people, whereas in 1970, the top 1% was only a tenth of America’s income Their GINI index was at the lowest ever between 1970 and 1980, reaching a low of 34 7 Now, income inequality in the US has since increased, with the Gini index in 2022 being at 41 3 On average, CEOs in America earn over 300 times the amount an average worker does Therefore, there is no doubt that a maximum wage has the capability and potential to reduce income inequality

Furthermore, there are also other benefits of introducing a maximum wage on some of an economy’s key objectives, such as reducing inflation and unemployment. By capping salaries, workers are less able to negotiate for higher wages past the limit, therefore preventing a wageprice spiral where workers ask for higher wages, receive a greater income, spend more and lead to higher prices, then need higher wages again to compensate. Furthermore, because wages are capped, it costs less to employ workers This incentivises firms to hire, potentially increasing the rate of employment The quality of labour employed will also improve as wages play less of a role in determining whether someone is hired Firms can choose the most qualified and skilled worker for a job without spending more than the capped amount, thus improving their productivity

However, implementing a maximum wage also has several limitations Firstly, as the maximum wage is set below equilibrium, this will result in a shortage of workers and excess demand for labour – an example of government failure This is because at lower wages, skilled workers are less incentivised to work because they are not compensated based on their value This can lead to a lack of motivation, absenteeism and brain drain This is when qualified, highly skilled workers leave the country to work somewhere else. Furthermore, George Akerlof’s lemon theory can also be applied here. A maximum wage for a highly skilled job signals that the job does not require highly skilled applicants, caused by misinformation. This can result in firms hiring lower-skilled workers who are less productive. Therefore, while this may reduce inequality, it may slow down economic growth and lead to a less productive economy

There are several other methods which may be more effective in reducing income inequality with fewer trade-offs, such as progressive taxation or universal basic incomes Progressive taxation is a system where the more you earn, the more you pay in income tax The money the government earns can then be used to redistribute wealth to the lower-income individuals in the form of benefits, programmes or other schemes A universal basic income would mean that everyone has a fixed income, meaning that it could prevent extreme poverty but also does not cap how much an individual can earn, reducing the likelihood of things like brain drain occurring.

Overall, a maximum wage has the potential to significantly reduce income inequality by limiting higher earnings and has proved to be effective through improving the US GINI index However, no economies have ever properly implemented this policy, as the potential costs, like reducing economic growth, innovation and potential brain drain, are big risks for economies to take Its effectiveness as a policy may depend on whether it is combined with other policies

The 2008 Financial Crash and Policy Responses

Rania Jethwani

The financial crash of 2008 was the most severe financial crisis since the Great Depression of the 1930s It triggered a global contraction in liquidity and credit, leading to the failure of major investment and commercial banks, mortgage lenders, insurance companies, and savings and loan associations as a result of the crash of the US housing market.

In 2001, in the US, the Federal Reserve anticipated a mild recession and therefore significantly lowered interest rates from 6 5% to 1 75% This led to an increase in consumer credit and consequently led to higher borrowing levels Due to lower interest rates, banks were able to lend subprime loans, loans which carried higher interest rates than prime loans, to 'high-risk consumers' These subprime mortgages were often structured as balloon payments, where large payments are only due at the end of a loan period Therefore, consumers were able to take advantage of the cheap credit to purchase larger assets, such as houses As long as house prices continued to rise, borrowers were able to protect themselves from high mortgage payments by selling their homes at a profit and paying off their mortgages

Many banks marketed subprime loans to borrowers with poor credit, assuming that house prices would rise. Therefore, to increase securitisation, banks bundled prime and subprime mortgages into mortgage-backed securities (MBS) to sell to investors. Credit rating agencies misclassified many of these as low-risk AAA bonds despite their exposure to risky subprime loans The purchases that investors made entitled them to a share of interest payments on the loans Selling MBSs was considered a good way for banks to increase liquidity and reduce riskier loans This is because if homeowners are unable to pay their loan, the burden of unpaid loans would fall on the investor

Furthermore, the housing boom led to more people taking out mortgages they could not afford, often under the assumption that rising home values would allow them to refinance or sell at a profit. Lenders, incentivised by high profits from MBS sales, continued issuing risky loans with minimal oversight. However, when the housing market reached unsustainable levels, prices of houses began to fall, and homeowners with subprime loans found that they owed more on their mortgage than their home was worth. This led to homeowners selling their homes with unpaid mortgage balances With these falling home prices, the value of MBSs dropped as well, so investment banks which held a large amount of securities suffered significant losses as their assets became devalued This situation led to a credit crunch as banks stopped lending to each other Since banks were unable to loan to each other or consumers, there was less spending and investment in the economy, which led to companies making workers redundant, leading to unemployment and less spending in the economy, deepening the recession

Policies:

Monetary policy: To combat the recession, the US Federal Reserve ran a quantitative easing program from 2009-2014, a form of monetary policy where the central bank tried to encourage economic growth by purchasing long-term government bonds to increase money supply Over $4 trillion in treasury bonds and mortgage-backed securities were bought to expand their balance sheet significantly to inject liquidity into final markets, lower interest rates and stimulate economic growth By 2017, the US bank reserves grew over $4 trillion, increasing the supply available for lending However, banks held on to $2 8 trillion in excess reserves due to uncertainty about economic conditions

Fiscal policy: A troubled asset relief programme was created to stabilise the country’s financial system and restore economic growth by increasing liquidity in money markets and mortgage markets by purchasing MBSs to reduce potential losses institutions owned them. It also allowed the government to buy equity in banks and other financial institutions and gave them purchasing power of $700 billion, but only $426 4 billion was spent The government later recovered $441 7 billion, resulting in an $11 billion profit This not only stabilised banks but saved jobs

Financial reform: Dodd-Frank Act: This consumer protection act was a piece of legislation passed in US Congress to establish new government agencies tasked with overseeing various components of the law aspects of the financial system It aimed to reduce risky banking practices and ensure greater transparency in the financial market.

Trump's Ukraine Policy and Its Impact on the Geopolitical Sphere

Ali-Mansur Valiyev

In late February 2025, recently elected President Donald Trump signaled a major shift in U S policy on the Ukraine-Russia war During a cabinet meeting on February 26th, President Trump announced that the President of Ukraine – Volodymyr Zelenskyy – would be visiting the White House for the purpose of signing a new agreement on rare earth minerals In Trump’s words, this agreement would help the U S ‘get [their] money back’ for pervious aid for Ukraine against Russia From his perspective, the support given to Ukraine by the U S was completely disproportionate to the support given by European nations – claiming that the U.S has given over $350 billion worth of aid, compared to Europe’s $100 billion. During that same meeting, Trump announced that direct peace talks with Russia would take place, to stop what he called a ‘senseless war’.

In early March, the Trump administration made another daring move – pausing all U S military aid to Ukraine Although white house officials insisted that this action was simply a “pause”, this still signals a direct change in U S – Ukraine policy This followed an Oval Office meeting between Trump, J D Vance and Zelenskyy, where the president and vice-president berated Zelenskyy for lacking gratitude and resisting Trump’s peace overturns These various policies and actions taken by the Trump Administration in the past few weeks regarding the Ukraine-Russia war highlight the every-changing U S stance on this matter. This has significant implications on trade, energy, military aid and financial markets all around the world.

Comparison to Previous Policies

Firstly, if we compare Trump’s stance on the war to that of the previous U S President - Joe Biden - we can see stark differences between the two administrations Under Biden’s Administration, the United States’ official stance on the war was that it was a fight for democracy During his time as president, Biden had repeatedly stated that he would support Ukraine ‘for as long as it takes’ This led the U S to build and take control of an international coalition, providing billions in military aid for Ukraine. Along with the monetary support, this coalition allowed for intelligence to be shared in real-time with Ukraine, along with sanctions being levied on Russian exports to further weaken Russia’s economy. Aside from policy making, Biden also showed public solidarity with Ukraine For instance, his visit to Kyiv in February 2023 showed signs of the United States’ unwavering commitment to supporting Ukraine under Biden

Trump’s views are very different While Biden viewed defending Ukraine as protecting international order and preventing broader war in Europe, Trump views the war as more of a business deal Trump’s policies take a more transactional approach, putting emphasis on deal-making and putting pressure on Ukraine to act the way Trump wants them to Trump’s desire to improve relations with Putin are also different from that of Biden, during this time in office, Biden consistently characterized Putin as the aggressor, while Trump’s rhetoric has been softer on Russia, often signaling indirectly that Putin gave ‘strong signals’ towards peace. Trump has also been more willing to echo Russian talking points – such as the elections in Ukraine, compared to during Biden’s time in office.

In general, the stance of Donald Trump can be summed up into one question: “What does America gain from this and when will this war end?”

Expert Analysis

In general, think tanks and experts have differing views on these policies. For instance, foreign policy experts at Atlantic Council have mixed views towards Trump strategy towards Ukraine. On one hand, some experts such as Leslie Shedd (Former Congressional Advisor) argue that Trump’s emphasis on signing the minerals pact is vital to ensure that Ukraine has the support of the U S By providing the U S with an economic incentive, Zelenskyy can ensure peace for the citizens of Ukraine while providing the U S with a reason for protection On the other hand, experts like John E Herbst (Former Ambassador) highlight that if a pause of U S military aid drags on, Trump’s proclaimed intent to have peace in Ukraine starts to come into question Peace may no longer be an option as Russia could be able to capitalize on the lack of U S protection of Ukraine

Other experts – such as those at the Quincy Institute – place a significant emphasis on compromise Anatol Lieven highlights how the U S must make it clear that they will not serve as a ‘backstop’ for any European peacekeeping force in Ukraine. From his perspective, if the U.S. continued guaranteed support in Ukraine through peacekeeping missions, it would effectively lead to a NATO commitment to continue fighting Russia. This may have significant repercussions, such as a renewed war against Russia. This is something that Trump has continuously expressed disagreement towards and is part of the reason why he has implemented such changes to his policies

Additionally, many experts agree that this policy aligns with Trump’s “America First” ideology By placing more responsibility on EU allies to protect and provide Ukraine with security and finances, Trump can ensure that the budget in the U S can be spend on the country itself, something that Trump has put continuous emphasis on throughout his presidential campaign Additonally, a long-term increase in European defense spending is ‘necessary’ in Trump’s eyes, as it would not only provide the EU with the defenses required to help Ukraine but would also relieve the U S and help European nations being able to establish a stable peace with Russia on their own

Reactions from Allies

Many countries around the world, including key U.S allies, Russia, and Ukraine itself have had differing responses towards Trump Prime Minister Kier Starmer conduced a summit of European leaders in London on March 2, 2025, as the news of Trump halting aid to Ukraine had been broken This became somewhat of a ‘crisis summit’ as both Starmer and Macron (the president of France) coordinated both a European response, creating a draft peace proposal to present to Washington They proposed the idea as a truce that would last one month, which would help halt attacks against infrastructure critical to Ukraine This would help test Russia’s sincerity in any ceasefire Additionally, both France and Britain offered to send peacekeeping troops to Ukraine if a ceasefire were to take place However, this was a conditional offer requiring U S backing as a security ‘backstop’ The U S swiftly rejected this offer, and for now the future is still unknown.

Within Russia, the response has been overwhelmingly positive. Kremlin spokesperson – Dmitry Peskov –saw what he described as a “fragmentation” in Western unity. Russian officials praised what they saw as the U S’s new “realism” They highlighted the public scolding of Zelenskyy by Trump, as this was validation for Russia of the narrative portrayed my Moscow – that the Ukrainian leaders are ungrateful and obstinate Putin himself had a more patient reaction On one hand he welcomed Trump’s overtures to talk However, Putin still held firm on meeting Russia’s core demand – for instance the recognition of territorial gains A notable gesture made by Putin towards his support of Trump was the release of a U S captive – Marc Fogel This was likely to encourage Trump to deal gently with Russia, leading to Trump responding positively, speaking warmly of Putin’s signals for peace Although Russian officials still have caution, the response to Trump policies in both Russian media and government has been much more positive than before. Even though Russia is not entirely convinced that Trump will abandon Ukraine, the media is celebrating division in the West.

The response of Ukraine, on the other hand, was a mix of anxiety and tactical adjustment After the meeting in the Oval Office, President Zelenskyy was caught off guard He began to quickly shift from defiance to instead damage control Although Zelenskyy had first stated that “we cannot just sign an agreement without substantial guarantees it would reward the aggressor”, he eventually publicly “expressed regret” over what he said was a “miscommunication”. He thanked Trump and the American people for all their past support and sent a letter which Trump read to Congress which affirmed Ukraine’s readiness to negotiate the minerals deal. In Ukraine, the views of Ukrainians were mixed. Although some accused Zelenskyy of overplaying his hand in the negotiation with Trump, many other were in support of the leader, viewing the demands of Trump has a ‘betrayal’

Economic Impact

In general, Trump’s policy on Ukraine can be considered an extension of his broader economic agenda for the U S – his “America First” ideology European leaders – while dealing with Ukraine – had to also brace for other policies implemented by Trump – such as his possible tariffs on European cars and goods This increase in tension poses significant implications for trade The weakening of the ties between the U S and European allies due to both the disagreements regarding Ukraine support and tariffs creates global trade frictions. As Trump threatens reciprocal tariffs on every country in the world by April 2025, a global trade war seems not so unlikely. Reports have emerged showing the U.S and UK trade talks were tense, as London had sought to be exempt from any new tariffs, while at the same time negotiating the Ukraine strategy.

Additionally, Trump’s policies have injected new uncertainty into the global energy market Under the Biden administration, energy sanctions were placed on Russia This reduced dependence on Russian oil and gas and made sure that markets could be stabilized through strategic petroleum releases, as well as increasing U S gas exports to Europe Trump’s policy shift has led to speculation regarding sanctions on Russia By putting on emphasis on direct negotiations with Russia and halting military aid, Trump has opened the doors for perhaps a lift of some Russian sanctions as part of a broader deal with Russia This speculations regarding lifted sanctions have already led to increase volatility in the prices of oil in the global market, as various investors are now considering a scenario of an increase in Russian exports The financial markets have also reacted to Trump’s policies The initial confrontation between Trump and Zelenskyy had shaken investors. They feared a breakdown of U.S-Ukraine relations which would lead to greater geological instability. Due to this, stock markets dipped when the news broke, with major indexes such as the S&P falling as Zelenskyy had been rebuked, and no deal was signed. Markets eventually rebounded by the end of the day – being up 1 5% However, this signaled instability, and slightly worrisome investor sentiment regarding Trump’s policies Sure enough, when Trump officially implemented the aid freeze, as well as doubling down of tariffs, markets began to fall once more The S&P dropped over 2%, as investors were worried about how far Trump was willing to go in his pursuit of his trade goals Multiple uncertainties faced investors in the U S – the Ukraine war outcome, the threat of trade war, and questions regarding the general effectiveness of Trump’s policies on U S growth European markets had mixed effects, with defense stocks surging due to the expected higher EU military spending, while many investors also grew concerns over tariffs against the EU.

In general, Trump’s policies on Ukraine are likely to have a multitude of impacts in the coming months These policies represent a fundamental shift – which has already had profound impacts on international politics, with far-reaching implications for trade, energy, security and global power in the future.

To What Extent Does Protectionism Strengthen an Economy in the Long Run? Aman Nair

Protectionist policies (such as tariffs and import quotas) aim to shield domestic industries from foreign competition by artificially increasing the prices of foreign goods and services. Advocates argue that these measures can foster macroeconomic stability by protecting local firms, preserving jobs and increasing economic security. However, proponents may argue that protectionism result in increasing local prices and stifled economic growth over time. This topic is has become extremely pertinent currently, especially with the rising usage of protectionism and ongoing trade disputes in global trade, notably under leaders like Trump

Why Protectionism results in Long-Term Growth

Protectionism often shields local firms by artificially raising the prices of foreign goods and services, giving them the time grow without pressure from established foreign competitors. By imposing protectionism regulations, a country creates an environment where local firms can grow and develop, by increasing local demand for their goods and services as their products would be more price competitive This would be since local products would be cheaper compared to the increased prices of foreign competitor products This process allows local industries to benefit from economies of scale, where larger production volumes lower average costs, since domestic firms have been able to grow and thus spread their cost over a larger output This reduces the average costs of domestic firms allowing them to sell their goods/services at a lower price, resulting in increased international competitiveness Foreign companies (like in China) with lower labour costs or more advanced technology, would normally have a lower cost of production However, protectionism helps level the playing field by artificially raising the prices of foreign goods, making them less price-competitive compared to domestic products. As a result, consumers are more likely to choose locally produced goods, increasing demand for those products. This increase in demand leads to increased domestic employment, as firms would try to increase output, since labour is derived demand For example, following U S tariffs on Chinese goods in 2018, domestic manufacturing employment in industries like steel and aluminium saw a 4 3% increase in employment, with the steel industry gaining over 5,000 jobs As employment rises, it would cause the multiplier effect to occur, which is when workers spend their wages, boosting the local economy

Protectionism's other security is that it ensures the stability of the national economy Some legislators view free trade as a threat to sustainable development since it can cause imbalances like significant trade deficits or an excessive reliance on foreign suppliers Protectionist policies including local content rules or tariffs that support domestic manufacturing help to strengthen supply chains and preserve home economic activity. Particularly in sectors including food, energy, defence technologies, and medical supplies especially, this economic independence is especially vital since it maintains long-term development safe from external cutbacks and geopolitical tensions The COVID-19 epidemic highlighted how important this is since calls for domestic manufacturing of basic goods arose from countries experiencing extreme shortages of vaccines and medical supplies Development of the national manufacturing sector helps protectionism to strengthen the home manufacturing base, so improving industry competitiveness and reducing dependency on foreign suppliers

Why Protectionism damages Long-Term Growth

Protectionism frequently comes at a great cost to the larger economy, even if it might offer temporary relief to some sectors or workers. Tariffs and import restrictions cause foreign goods to cost more, which drives up consumer and business prices as a higher proportion is spent on goods/services that would have otherwise been cheaper Consumers' purchasing power would be lowered by the inflationary impact since they have to spend a larger proportion of their income on daily items, leaving less income for other goods and services, thus impacting the standard of living One analysis (CBO) claims, for instance, that the tariffs the United States imposed in 2018 caused manufacturing prices to rise by 1% These price increases tax consumers, which has an impact on the whole economy The higher costs eventually lower aggregate demand, since consumers buy less and companies having higher costs of production have to cut back on manufacturing (supply shifting inwards) This also could result in cost push inflation occurring, since foreign goods and services that are used by domestic companies would be more expensive, consequently increasing the cost of production for local firms. Furthermore, protectionism results in resource misallocation, that are domestic businesses sheltered from competition having fewer incentives to innovate, which causes inefficiencies and lower productivity

Protectionism on occasion also starts a cycle of retaliation whereby one nation's tariffs provoke others to impose their own tariffs, triggering trade conflicts that damage all those engaged When one nation increases tariffs, its trading partners often respond, setting off reciprocal actions that destroy export businesses U S exporters therefore saw sales collapse With soybean exports to China declining by 50% American farmers for example lost much of the Chinese market and the U S government responded with $28 billion in federal aid in 2018–2019 to help offset the damage from China's reprisal Such retaliatory actions distort world supply chains and generate substantial uncertainty, which forces companies to postpone investment decisions, thus undermining general economic stability This is because such concerns regarding the economic stability of a nation would discourage investors and FDI from entering a nation since they would not be sure about future market conditions. For instance, U.S. manufacturing employment suffered as businesses dependent on cheap imports faced higher costs that resulted in layoffs. The trade war cost 175,000 American manufacturing jobs by mid-2019 and any most benefits from tariffs, which local protected industries were outweighed by the loss of jobs in industries affected retaliatory actions So, whilst protecting an industry may boost employment, retaliatory measure would decrease international competitiveness in certain markets, China being a prime example with it having a large market

Furthermore, protectionism may encourage complacency by shielding home businesses from overseas competition Technological stagnation may occur because of businesses not being under pressure from international competitors to innovate or increase productivity Businesses might refrain from making investments in R&D or implementing new technologies that could increase productivity if they are not under external pressure to innovate Industries may continue to use outdated practices and technologies as a result of this lack of competitive stimulus, which would slow economic growth. On the other hand, open trade encourages businesses to constantly innovate and come up with new strategies to compete, prompting better quality products to be produced at a lower cost to compete with international companies. A great example was how protectionist policies, India's automotive sector was slow to adopt new technologies (due to protectionist policies), which resulted in inefficiencies and lower competitiveness, with sector's productivity growth at just 1 5% annually compared to 6-8% in more competitive markets according to the ICRIER

In conclusion, even though protectionist policies may provide short-term benefits like job protection or promoting the expansion of specific industries, they usually obstruct long-term economic growth by raising consumer prices, reducing competitive efficiency, and raising the risk of trade wars On the other hand, market liberalisation and open trade encourage innovation, reduce costs, and boost productivity, all of which contribute to the economic growth. However, I believe the key for countries is finding the right balance to support domestic priorities, such as local employment and security, without resorting to b protectionist tools that impede competition and trade.

The British Raj: Prosperity or Poverty?

Angela Philip

British colonialism in India lasted almost 200 years and left a complicated effect on the country’s economy British rule developed the country’s infrastructure and established governing techniques, some of which are used to this day However, colonialism drained India’s wealth and led to widespread poverty Despite the benefits, British rule was harmful and greatly stagnated India’s economy

The most harmful effect that the British Raj had on India’s economy was its economic exploitation. India had a thriving economy and a large amount of wealth before British rule arrived, and this wealth was transferred from India to Britain. While India became one of the leading global exporters during the British Raj, they weren’t able to reap their rewards A minute proportion of the money earned was reinvested into improving the country and its economy; instead, this money was used to fund Britain’s interests Many expensive taxes were created, which further increased poverty in India, alongside trade policies that favoured British goods and disregarded Indian wishes India relied on British interests since they had no other way of functioning effectively to support themselves

Despite the heavy damage that the British caused to India’s economy, there were some long-lasting benefits for India For instance, the railway system, which was initially built for the transportation of resources, created a network across India that is currently used for trade and economic changes such as supporting industries, creating employment opportunities, and connecting rural and urban areas. Furthermore, the British implemented methods for transporting materials, such as ports, roads, and a postal system. This was initially implemented for British gains regarding transporting British goods, but after India gained independence, it was used to modernise the country To help organise the country’s financial resources, the British established several banks, such as the Bank of Madras, which was created in 1943; these banks later merged to create the State Bank of India, which stabilised the economy and kept these resources and funds organised The British Raj also implemented the English education system, which further modernised the education system and developed the future Indian workforce This education system helped Indian students to modernise the economy in India’s postindependence era, as well as develop key industries such as textiles and energy production

Many Indian industries collapsed due to the British prioritising their goods and demands Local industries that India was a global leader of, such as textiles, were disregarded by imposing high tariffs on textiles compared to the no import fees on British goods The aim of this was to reduce competition and promote British goods India no longer worked from its own culture and for their individual industrial goals; instead, it started working in agriculture or manual labour This deindustrialisation led to widespread unemployment for textile workers, who now had to find new career opportunities, further pushing them into poverty. Since agriculture was an industry that the British heavily focused on, allocating many resources to it and generating significant income from it. They introduced high taxes on farmers even if their crop yields were low and they couldn’t afford it, which caused widespread debt and poverty Additionally, a vital source of food for these farmers and their families came from the food crops they grew, but since the British enforced the growing of cash crops such as cotton, there was no longer space for these crops This food crop shortage caused severe famines The British focused on their profits to improve the British economy while damaging the Indian economy

In conclusion, I believe that the British Raj damaged the Indian economy despite some of its benefits, which aided the post-independence development era. Some of the institutions developed by the British have helped India move toward its economic self-dependence and become one of the fastest-growing economies in the world today. Yet, India’s economy was exploited for decades, which led to extreme poverty and deindustrialisation. Had this system not been established, India would not have had to recover its economy as much and would have been significantly wealthier. The impact of British rule on India was purely in the interests of the British, aimed at bettering its economy while harming the Indian economy and stealing its wealth This is why I believe that the British Raj damaged the Indian economy

Round 2, Address 1 – Trump’s Congress Kickoff

Harihar Rengan

On the 5th of March 2025, American President Donald J Trump addressed the Congress for the first time in his second term. President Trump won the 2024 US Presidential Elections by 86 electoral votes, and won the popular vote by 1.5% of voters, on November 5th (Wikipedia, 2024). After his inauguration on the 20th of January, Trump signed 26 executive orders that same day; by the 5th of March, Trump has issued more than 80 such orders (The Washington Post, 2025).

It is vital to understand Trump’s political position Donald Trump is from the Republican party, (also known as the Grand Old Party or GOP) which supports Conservatism (the preservation of traditional values) (Wikipedia, 2025) Trump’s influence also brings Nationalism (promoting the interests of the state, seen in America first), Protectionism (the opposition of free trade, such as with tariffs), and Right-wing Populism (furthering the interests of the ‘common people’), which has merged into what is known as Trumpism, the current political ideology of Trump, the Republicans, and the supporters of the Make America Great Again (MAGA) movement (Wikipedia, 2025).

President Trump began his address by reaffirming his proclamation of the “dawn of the golden age” in the United States and applauding his administration’s “swift and unrelenting action” to reform the nation. He said that his victory in “all seven swing states” was a clear indication of American people demanding “a mandate like has not been seen in many decades”, which he aims to deliver with strong “America first” policies

The address was full of cheering and heckling, with some Democrats holding signs in protest Trump spoke for an hour and thirty-nine minutes, the longest first address of congress in US History, on a variety of topics, primarily domestic concerns, and his plans to overcome these issues in his final four years in office

Trade and Tariffs

“On average, the European Union, China, Brazil, India, Mexico and Canada have you heard of them? and countless other nations charge us tremendously higher tariffs than we charge them It's very unfair ” Trump has remarked that ‘tariff’ is the most beautiful word in the dictionary, and he has a history of utilizing this tool He used tariffs in his first term against countries who he believed were ‘ripping off’ the US, most notably China In his second term, he has already used these as a negotiating tool, such as with Columbian Prime Minister Gustavo Petro when deporting illegal immigrants on US Military planes Tariffs are also popular with Trump as they fall under international relations, which the president and the executive branch have sole control over.

Trump has promised reciprocal tariffs on the 2nd of April. Protectionist policies such as tariffs aim to reduce the dependency on imports A tariff is a tax on imports, and it comes with two primary benefits The first being the additional government revenue because of the taxation, which is paid by American firms Trump says they “will take in trillions and trillions of dollars and create jobs like we have never seen before” Tariffs also make it more expensive to import, which means that consumers and firms will begin demanding domestically produced goods instead This leads to a decrease in unemployment (as demand for labor is derived from demand for locally produced goods), which in turn stimulates consumption, economic growth, and greater tax revenue for the government This also encourages Foreign Direct Investment (FDI), which allows firms to circumvent tariffs whilst acting to benefit the US economy. This may include a foreign firm setting up a factory in the US, which would provide job opportunities that increase the average disposable income, consumption, tax revenue, and demand on aggregate. As a result, the US would experience economics growth, and its people would see increased standards of living

Trump says that his policies have already attracted trillions of dollars of investment, form companies like Oracle, OpenAI, and Apple, as well as FDI from Taiwan Semiconductors

“Thanks to our America-first policies we're putting into place, we have had $1 7 trillion of new investment in America in just the past few weeks ”

These are, however, more long-term benefits of tariffs, and in the short term, tariffs shift supply inwards and raise prices. They also increase the cost of production for American firms who are paying the tariffs, and these firms have been seen to pass the cost on to consumers. This has led to concern amongst Americans, as Trump has made subduing inflation a key aim of his administration (CNN, 2025). Trump claims that “There'll be a little disturbance” and that “It won't be much”, but economists predict that it could cost Americans $1200 per year before the impacts of the reciprocal tariffs (CNN, 2025) Trump also recognizes the prospect of trade wars, emphasizing “Whatever they tax us, we will tax them ”, which could accentuate such issues

In the case of a trade war, not only do US tariffs keep increasing, which worsens inflation, but US exports could become far less competitive, especially if they discard their allies as a result of isolationist policies A decreased demand for US exports increases unemployment, decreases standards of living, and may even lead to a recession. Following his address, the S&P 500 fell by 1.2% and the Dow Jones Industrial Average fell by 1.5%, showing the immediate impacts of the uncertainty regarding tariffs on US markets (BBC, 2025). The Wall Street Journal predicts a ‘Trump Recession’ and increased market volatility as a result of these tariffs This is significant, as Trump sees the stock market as a key indicator of his economic impact

During his previous term, Trump did manage to keep an average inflation of 2 46% year-on-year, despite starting a trade war with China and combatting the COVID-19 pandemic (which brought a severe recession with it) (Investopedia, 2025) He also has made some statements on how he will be combatting inflation this time He seeks to reduce the cost of energy by following through on “drill, baby, drill” But there is also a second option:

“To further combat inflation, we will not only be reducing the cost of energy, but will be ending the flagrant waste of taxpayer dollars.”

DOGE – The Fiscal Budget

“And in the near future, I want to do what has not been done in 24 years: balance the federal budget we're going to balance it ”

“Americans have given us a mandate for bold and profound change For nearly 100 years, the federal bureaucracy has grown until it has crushed our freedoms, ballooned our deficits and held back America's potential in every possible way ”

Donald Trump addressed the issue of the US National Debt. The US has been in a fiscal deficit for the last 24 years and has a national debt of around $36.56 trillion (Wikipedia, 2025). In comparison, the US GDP is around $30.4 trillion (Wikipedia, 2025). Trump seeks to pay off this national debt, and he has a few ways in which he plans to do this.

Firstly, he created the Department of Government Efficiency, or DOGE, in Executive Order 14158, and has the world’s richest individual, businessman Elon Musk, as its head Musk, as Senior Advisor to Trump, reported a series of wasteful expenditures by the government, including erroneous records in the Social Security database, which they have labelled as “fraud” Trump has also prompted deregulation, such as in Electric Vehicles, and cut all Diversity, Equity, and Inclusion (DEI) quotas in federal jobs There have been concerns, however, on the reliability of DOGE, given its unclear legal status and the potential for conflicts of interest involving Musk; this includes the deregulation of EVs, which would directly affect Musk, a major shareholder and CEO of EV producer Telsa (Wikipedia, 2025).

When it comes to DOGE itself, it has a few barriers to its success. Elon Musk and entrepreneur Vivek Ramaswamy planned to cut the US’s government spending by 2 trillion dollars by July 4th, 2026 (the 250th anniversary of the United States’ founding) Ramaswamy later dropped out of DOGE to run for Ohio governor in the 2026 Ohio gubernatorial election (The Guardian, 2025) However, some believe that it is not feasible to cut 2 trillion dollars of government spending, with Musk himself backtracking on his claim (NBC, 2025)

Furthermore, unlike tariffs, government spending comes with checks and balances that prevent excessive influence from the executive branch The fiscal budget, however, is controlled by the legislative branch Musk’s moves have been obstructed by the states, 13 of which sued Musk and his team at DOGE over their access to government databases (AP News, 2025). Trump’s plan to freeze foreign aid was also ruled as unconstitutional by the Supreme Court in a 5-4 ruling.

Secondly, Trump promised to try for “no tax on tips, no tax on overtime, and no tax on Social Security benefits for our great seniors” This may seem counterintuitive as a fix for government debt, as it decreases government revenue on face value However, expansionary fiscal policy like this can incentivise individuals to supply their labour (decreasing unemployment) and stimulate economic activity that leads to more tax revenue in the long run Some have voiced concerns, however, that his DOGE cuts are simply there to fund these tax cuts (CNN, 2025) and that the cuts themselves are a populist policy that may bring more downsides than benefits, such as potential tax avoidance loopholes (Forbes, 2025), accusing Trump of acting like a demagogue (Wikipedia, 2025)

Immigration

A key issue that Trump spoke on during his campaign trail was the southern border, as he believed that the Biden administration completely mishandled the situation: “Since taking office, my administration has launched the most sweeping border and immigration crackdown in American history, and we quickly achieved the lowest numbers of illegal border crossers ever recorded ”

Trump has announced that he has started and will continue a border crackdown to stop the influx of illegal immigrants, some of whom are carrying deadly substances such as fentanyl. Some reports suggest, however, that border crossings under Trump are not so different from those under Biden, calling the integrity of his promises into question (CNN, 2025)

Another change to immigration, however, is ‘the gold card : For $5 million we will allow the most successful, job-creating people from all over the world to buy a path to US citizenship It's like the green card, but better and more sophisticated ” As Trump stated, this is a method in which wealthy individuals can purchase a US citizenship One obvious impact of this is the government revenue that can be made by the sale of the gold card Trump also says that gold card holders are likely to be ‘job-creating people’, who will stimulate economic activity on top of themselves paying taxes This is in an effort to further overturn the national debt.

Trump’s speech not only outlined his vision and reinforced his strong belief in major reform and “America first” but also highlighted the current divide in American politics. After his announcements, half of the chamber would stand, clap, and cheer, whilst the Democrats on his right would sit still, holding signs reading ‘LIES’ or ‘MUSK STEALS’ high in the air The future of America and the rest of the world seems uncertain, and in the words of President administration is “just getting started”

Market Failure in the 2008 Financial Crisis Aadit Sen

The 2008 financial crisis was one of the most devastating economic events of the 21st century, leading to unemployment, significant losses of wealth and a global recession Various structural factors such as asymmetric information, adverse selection and moral hazards as well as behavioural factors including herding and loss aversion compounded to cause large-scale market failure, resulting in the infamous US housing market bubble.

Market failure is the inefficient allocation of resources within an economy, leading net welfare not being maximised During the financial crisis, market failures within the housing and financial markets snowballed into a breakdown of the financial system

One of the key causes of market failure during the financial crisis was information asymmetry, where one party knows more or better information than the other party in a transaction. Within the housing market, mortgage lenders were offering subprime loans to risky borrowers without conducting proper risk assessment Borrowers had more accurate knowledge of their own financial situation than the banks, allowing them to take advantage of this and maximise their benefit, known as adverse selection. This encouraged borrowers to take on loans that they usually wouldn’t be able to pay back, as many believed that house prices would continue to rise, and they could sell their houses to pay off loans Many borrowers were offered NINJA loans (no income, no job, no asset loans) with very little to no required documentation These loans were bundled up into mortgage-backed securities and sold to investors More complex financial products such as collateralized debt obligations were also developed Since all the risk was passed onto investors, banks were loose with lending requirements, causing more high-risk borrowers to enter the market, increasing adverse selection Over time, the number of subprime borrowers increased, creating hidden risk within the market for mortgages Furthermore, reputable credit rating agencies such as Moody’s and Standard & Poor’s gave ratings as high as AAA to risky MBS and CDOs Due to how complex the products were, there was no way for investors to value the products based on the underlying assets, causing an information loss due to the difficulty of getting through to the assets themselves This information gap would lead to the overproduction and mispricing of MBS and CDOs, leading to market failure

Other important behavioural causes of market failure during the financial crisis include herding behaviour and loss aversion Herding behaviour is when individuals seek to mimic the actions of others instead of making their own decisions, leading to irrational decisions Loss aversion is when individuals perceive losses to be more harmful than gains of the same value Herding behaviour occurred in the housing market, among lenders, and within financial markets Due to excessive optimism about growth in house prices, consumers and bankers exhibited herding behaviour through taking on subprime loans Additionally, investors were rushing to purchase mortgage-backed securities and collateralized debt obligations, because of other investors doing so Loss aversion reinforced herding behaviour Banks and investors feared missing out on profits while competitors gave out subprime loans/ invested in these assets, resulting in them ignoring potential warning signs and making irrational decisions regardless One potential factor to support this could be moral hazard; these organisations believed that they would be bailed out by the government as they were too big to fail, encouraging them to take on excessive risks. Overall, the herding and loss aversion behaviour would prompt irrational decision-making, creating asset bubbles and resulting in market failure

Asymmetric information between investors and the sellers of these products, caused adverse selection by borrowers, resulting in rising defaults on mortgages Because of herding behaviour and loss aversion by financial institutions, this led to a period of mass bank foreclosures, increasing the supply of homes dramatically, and reducing prices For some people, this meant that the value of their homes was far less than the value of their mortgage, so they started defaulting too, causing prices to spiral downwards further Some banks, for example Lehman Brothers went bankrupt, while others faced significant losses, prompting them to tighten lending standards and inducing a credit crunch Consequently, even trustworthy firms and individuals couldn’t access loans, slowing down growth as companies couldn’t finance new projects to overcome losses Secondly, due to diminishing house prices, the negative wealth effect occurred, where individuals felt worse off, reducing consumer confidence and consumption. This in turn led to a lack of demand throughout the economy, causing widespread job losses. The collapse of the housing market, combined with banks failing and the lack of liquidity caused the financial system to fail, eventually leading to a global recession

Quantitative Easing: A Necessary Policy or An Avoidable Risk?

Adi Siraj

Quantitative easing (QE) is a monetary policy used by central banks around the world Originally used as a response to financial crises, QE is now being used more and more to stimulate economic growth However, there are criticisms arguing that it has become a standard policy used to worsen the inflation of asset bubbles and to magnify wealth inequality

What is Quantitative Easing:

Quantitative easing is an unconventional monetary policy employed by central banks to inject economic stimulation when interest rates have fallen to zero and are unable to move any lower It is the large-scale buying of financial assets like government bonds by the central banks from commercial banks as well as other financial institutions This increases the liquidity supplied to commercial banks to lend to customers, causing a decrease in interest rates, which makes borrowing cheaper and encourages consumer spending Therefore, the policy directly impacts the level of aggregate demand in an economy

Quantitative Easing's Role during Economic Crises:

The 2008 financial crisis was a result of excessive risk-taking in the financial sector, particularly the issuance of high-risk home loans given to borrowers with poor credit When people started defaulting on their loans, the value of these investments crashed, causing huge losses for banks and making it hard for businesses and people to borrow money To fix this, the United States Federal Reserve (Fed), the Bank of England (BoE), and the European Central Bank (ECB) initiated the use of quantitative easing. This policy helped lower mortgage rates, stabilise financial markets, and support economic recovery. This improved consumer confidence, and unemployment rates gradually declined

Moreover, during the COVID-19 pandemic, economies around the world faced a sudden crash as lockdowns shut down businesses, people lost jobs, and spending dropped To prevent a financial collapse, central banks used Quantitative Easing (QE) again, creating new money to buy government bonds and other financial assets For example, the Fed’s response in 2020 included purchasing trillions of dollars in government bonds, and the ECB and BoE also expanded their asset purchase programmes to support businesses and households This kept interest rates low, made borrowing cheaper for businesses and individuals, and ensured banks had enough money to keep lending. QE helped stabilise financial markets, support government spending on emergency programmes, and boost economic recovery after the crisis.

The Consequences of Quantitative Easing:

QE appears to work effectively, but it comes with serious issues that concern people about its future implications One of the main concerns with QE is that it pushes asset prices too high When central banks inject lots of money into the economy, QE inflates the prices of stocks, property, and other financial assets to unsustainable heights Although this benefits banks and investors, it creates economic imbalances and improves the likelihood of financial bubbles When central banks tighten money by raising interest rates, asset prices can abruptly fall, causing economic instability.

Widening Economic Inequality:

QE has also been criticised for increasing wealth inequality QE primarily lifts the value of assets, benefiting primarily the owners of stocks, bonds, and real estate Poor people who rely more on employment and savings gain hardly anything This disparity has widened the gap between the wealthy and the rest of society and can increase social tensions and cause unrest in the economy.

Is Quantitative Easing an Effective Tool?

Some argue that QE is a necessary response in times of extreme economic need when standard monetary policy cannot be used It increases liquidity, prevents financial collapses and helps restore economic stability Moreover, central banks can adjust their strategies to mitigate some of the negative effects

Others, however, warn that the overuse of QE is creating long-term financial instability By distorting markets, fuelling debt accumulation, and increasing inequality, QE may be doing more harm than good over the longer term Furthermore, reversing QE is very difficult, as seen in the previous attempts by central banks to shrink their balance sheets without disturbing markets.

Quantitative easing can now be seen as an economic dependence that, while necessary, can be detrimental. Though it has helped bring back stability to economies during times of crises, its unintended consequences should not be ignored It is important for the central banks to closely manage the use of QE to ensure it remains a temporary fix and not a permanent feature of monetary policy Ultimately, a more sustainable approach to economic stability will likely require both monetary and fiscal measures aimed at addressing structural weaknesses, instead of relying solely on QE

High Frequency Trading and Its Impact on Financial Markets

Aditya Tomar

High Frequency Trading is a form of trading that leverages powerful computers and high-speed communication to execute trades in milliseconds. It has transformed financial markets as it allows firms to seize opportunities in the market that may only last for fractions of a second. Algorithms used in HFT rely on powerful computers, complex mathematical models and low latency connections to analyze and respond to market movements quicker, meaning thousands of orders can be transmitted per second giving institutional traders an edge over competition Its main objective is to analyze small price discrepancies in the market to make decisions It does this through computerized quantitative models that identify a financial instrument (for example, stocks, options, currencies, futures) to buy or sell, with the quantity, price, timing and location of each trade

History of High-Frequency Trading

HFT started in the late 1980s and early 1990s due to advancements in electronic trading and automation in markets Before this, stock exchanges mainly used by human traders executing orders took a long time, and algorithmic trading strategies were unheard of in this period However, electronic platforms such as NASDAQ allowed firms to use automated trading strategies which improved efficiency and profits In the 2000s, HFT gained traction due to the development of low-latency networks and algorithms, and changes in government regulation further made HFT more prevalent By the late 2000s, companies that used HFT became dominant players in financial markets by accounting for a significant share of the total trading volume Statistics show that it is estimated that HFT was responsible for 40-70% of all trading volume in the U.S. equities market in 2009, double what it was just 4 years earlier. It became even more popular when stock exchanges began to offer incentives to firms to add liquidity in the market, such as the New York Stock Exchange, which has a group of liquidity providers called SLPs that attempts to add competition and liquidity for existing quotes on the exchange (Chen, 2024).

HFT’s Impact on Financial Markets

HFT can scan many exchanges and identify arbitrage opportunities that exploit price discrepancies for the same asset across multiple platforms. By executing these trades, HFT equalises prices across different exchanges, which ensures market prices stay constant and prevents huge swings. Market liquidity can also be increased because HFT will narrow bid-ask spreads for assets. This means that there will be cheaper transaction costs for investors, meaning more trades will be executed faster The constant flow of orders reflects real-time information in the market, allowing firms to act as market makers, ensuring that there will always be buyers and sellers This increased competition leads to more efficient markets which benefit both institutional and retail investors by making it cheaper to enter and exit positions

However, many professionals criticise HFT as it creates an unfair advantage for firms that have access to more advanced technology, allowing them to exploit millisecond price differences that smaller traders cannot. This leads to larger institutions profiting at the expense of smaller market players like individuals or smaller companies. It can also harm long-term investors who buy or sell in bulk.

HFT is linked to increased market volatility, making markets more unstable Excessive market volatility from HFTs led to the Flash Crash in 2010 This caused the Dow Jones Industrial Average to drop by 1000 points in just minutes A further investigation found that HFT algorithms reacting to each other’s trades triggered a spiral effect which worsened the downturn

High-frequency trading is also used in crypto markets similarly to traditional financial markets Many crypto markets have low liquidity, meaning HFT can cause large price movements which could lead to price manipulation. Furthermore, there is a lack of regulation in some crypto markets, making exchanges in the market more vulnerable to volatility and price spoofing (a type of manipulation used by traders to place large buy or sell orders without the intention of executing them to create false supply or demand in the market)

Future of High-Frequency Trading

HFT will be further shaped by more advancements in technology, such as artificial intelligence (AI). As AI becomes more integrated into trading strategies, HFTs will become even more sophisticated and will be more capable of predicting market trends with greater accuracy. Quantum computing also may further enhance the speed and processing power of HFT systems, pushing the boundaries of what’s possible in trading But these advancements will lead to more regulations to ensure fair competition and prevent price manipulation, meaning there will be stricter rules like taxes on transactions or better monitoring systems

HFT is a product of modern technology, continuing to evolve and will no doubt have a greater impact on financial markets due to more automation in the industry It will not disappear, and the value it brings to companies will only further increase through improvements in technology This growth raises concerns over fairness, with regulators needing to adapt to ensure that this innovation doesn’t come at the cost of fairness and integrity. In the future, the role of HFT in financial markets will become more prominent, and more people will have greater access to this technology.

Can Productivity Always be Measured Accurately?

Aarush Vij

In Economics, productivity is defined as output per unit of input per period of time This means productivity increases when more output is produced with the same set of inputs or when the same amount of output is produced with less inputs In essence, high productivity just means workers are completing their roles with high levels of efficiency Increasing productivity is in the best interest of a firm, as higher output generally translates to a higher profit margin However whether productivity can be measured accurately depends on the scenario and field

Measuring Productivity in Traditional Sectors

Productivity can be easily measured in traditional sectors such as manufacturing or architecture If put to an example, we can use the example of a worker at an iPhone supply line This worker needs to complete the exact same task numerous times daily, such as installing the battery into an iPhone In this scenario, productivity can be measured easily Take output as the amount of phones that passed this worker and had batteries successfully installed in them, unit of input as the single worker tasked with this role, and the period of time their shift. These are all numerical values, so the productivity is easily quantifiable in this situation.

The example of machinery could also be used to highlight a case where productivity is easily measured. Imagine a specific machine in a Lays packaging factory, where packets of chips will enter the machine and be sealed, ready for shipment All three values, output, input, and time are easily quantifiable here, with the output being the amount of chip packets sealed, input being the value of the single machine, and time being the duration the machine was operating for

Measuring Productivity in Service/Knowledge Sectors

Productivity is harder to measure in sectors to do with service, or knowledge, as the three quantities needed to calculate it, output, input, and time, are harder to quantify For example, how do we quantify the effectiveness of a doctor? Imagine 2 doctors working in the same field in the same hospital One doctor attend to three patients by lunch, while another has only attended to one patient by lunch In theory, it seems easy enough, with output being the patients attended to, input being the single doctor, and time being shift duration up till lunch However in practice this isn’t the case For example, imagine the first doctor was approached with three cases of the common cold, which is easily diagnosable and prescriptible in a relatively short amount of time However, the second doctor met a patient in critical condition who had to be operated on. In this scenario, the method of measuring productivity (patients attended to) will not necessarily quantify the effort put in by the doctors.

Another example of this is the education sector. We can again use the example of two teachers in the same school, teaching the same subject When thinking about how to tangibly measure the output of teachers, the first thing that comes to mind is student performance, which is measured through grades So for a certain year group, the teachers’ productivity could be measured by averaging the grades of all the students they teach in that year group, and using input as the teacher and time as the duration of the course However this is still inaccurate, as student grades don’t directly reflect teaching abilities, or the effort put in by the teacher For example, if one teacher came out with an average student result of 75%, while the other teacher came out with an average student result of 60%, it seems obvious that the first teacher is more productive But in reality, it is very likely the first teacher was fortunate to have a naturally more capable class, who performed well regardless of the teacher’s effort, meaning productivity isn’t accurately measured by this method.

Alternative Measures of Productivity

During research, two viable methods of measuring productivity more effectively were discovered, however there will be countless others.

Total Factor Productivity: TFP is a measure of the efficiency with which all inputs (labour, capital, etc.) are used in the production process to generate output. As this may be complicated to grasp, an example will put it into perspective better

If a factory produces 100 units of output with 50 workers and $500,000 worth of capital in one year, then TFP reflects how well those inputs contributed to the output If the factory adopts better machinery or processes and produces 120 units with the same inputs, the improvement in output per unit of input is captured by an increase in TFP

Quality Adjusted Productivity: QAP not only considers the quantity of output produced but also adjusts for the quality of that output Here I will provide you with another example

Imagine a company that manufactures smartphones In one year, the company produces 1,000 units of a basic smartphone The next year, it produces 1,000 units of a high-end model with more advanced features (better camera, longer battery life, etc.). Traditional productivity measurements would treat both years as producing the same number of units, but QAP would adjust the output figure to reflect the enhanced quality of the newer phones, possibly showing a higher productivity growth due to the improvements in product quality.

The Rise of DeepSeek AI: How China’s AI revolution backfired on the U.S

Sara Whabi

From autonomous weapons to the voice assistants on our phones, AI has become a huge part of everyday life and risen to be one of the most transformative technologies created

To understand the importance of DeepSeek, it helps to understand the capabilities of AI. In simple terms, it is a technology that has the ability to perform tasks mirroring the intellectual process or characteristics of a human. The United States and China have been in an ongoing battle for technological dominance, and with the advancement of AI becoming increasingly dominant and popular, this conflict is not only about building the best AI model; it’s about global power and competing economic influence globally

To curb China’s progress in dominating the market for technology, the U S blocked access to advanced chips and AI hardware in hopes of stalling innovation and reducing advancement Tensions between the U S and China escalated in 2018 when the Trump administration launched a trade war, imposing tariffs on Chinese goods Tech became a key battleground when the US blacklisted Huawei over concerns that its 5G technology could be used for spying Since then, the US has tightened restrictions on China’s access to semiconductors, AI chips, and other critical technology. This was done. In October 2022, when the Biden administration implemented export controls to restrict China's access to advanced US semiconductors and technologies, with the goal of preserving US technological dominance and addressing security risks

These restrictions on Chinese technology were designed to hinder China's growth and reinforce the U S 's dominance in the global tech market These exports were initially an obstacle faced by China but spurred alternative and more innovative paths, forcing companies like DeepSeek to maximise the potential of their artificial chip, becoming more efficient than U S companies such as Nvidia’s A100

Nvidia has invested billions in developing advanced semiconductors, making them powerful but expensive In contrast, DeepSeek, facing U S export restrictions, turned to open-source technology to cut costs. By distilling existing AI models instead of building new ones, they created competitive chips with fewer resources. China's heavy government investment and adaptation to restrictions have helped its semiconductor industry grow, making it a strong competitor despite having less advanced technology. The open-source nature of China's chips also raises concerns for the U S , as cheaper alternatives may gain traction globally, reducing their market domination

How did China manage to create an artificial chip that has become more widely used and efficient, once facing the challenges set by America? Distillation, in simple terms, is a process where a smaller AI model, the ‘student’, learns from a larger, more advanced ‘teacher’ model, allowing the smaller model to replicate key capabilities while being cheaper, faster, and more efficient to run

DeepSeek AI, using distillation, became more efficient and accessible, enabling smaller players to compete with the US. Distillation reduces resource needs, while outsourcing cuts costs and expands talent access. The use of outsourcing allowed Deepfake to bypass the US's control over resources, and Beijing’s public embrace of DeepSeek fuelled rapid adoption globally due to its efficient distillation techniques, which enable faster and more accessible deepfake creation

While the U S has been the leader in AI, China’s fast progress, backed by government support and innovations like distillation, is closing the gap As China becomes a major player in AI, the U S will need to find ways to stay competitive, whether through things like new policies or further innovation The U S tried to contain China’s AI ambitions but, in doing so, fuelled the rise of a new, more popular semiconductor model

The Rise of the Gig Economy: Opportunities and Challenges

Jiawen Zhu

If you have ever booked a cab with apps such as Deliveroo and Uber or paid someone else to make a product on Fiverr and Upwork, you have participated in the gig economy While there is no set definition, the UK government describes the gig economy as "the exchange of labour for money between individuals or companies via digital platforms that actively facilitate matching between providers and customers, on a short-term and payment-by-task basis "

The gig economy has emerged as a transformative force in the modern labour market, characterized by short-term, flexible work arrangements enabled through digital platforms; this contrasts with traditional employment, which typically offers long-term contracts, fixed salaries, and associated benefits However, the increase in popularity of gig work has created both opportunities and challenges for workers, businesses, and policymakers alike

The rise of the gig economy has been astronomical in recent years, seen in the UAE with Careem becoming UAE’s first tech start-up with a valuation of over $1 billion

It has seen a similar rise globally, as measured with the Online Labour Index that monitors the utilisation of online labour services, which peaked during the pandemic where many worked from home digitally The gig economy is solely operated through the internet, making it popular for the younger demographic

As the gig economy grows, a 2022 McKinsey survey found that more than a third (36%) of the US workforce identified as independent workers Workers cite independence and flexibility as the primary reasons for their satisfaction with gig work They have the option of choosing when, where, and how to work, allowing them to have a healthy work-life balance. This is especially beneficial to caregivers, or students who must work around a rigid schedule Various studies have also shown that workers feel more motivated, and work harder, with some even regularly travelling while still working.

For employers, the gig economy provides a way to cut costs, with no need for physical office spaces and supplies Healthcare and other benefits are also usually not paid for by the employer in the gig economy, so businesses save and invest elsewhere. Businesses can also achieve greater flexibility, only hiring specialist workers when they are needed for a short time Firms can then increase or decrease the number of workers they employ in a relatively short time based on demand, offering greater scalability

However, the gig economy has been in focus not just because of its growing popularity, but also because it raises questions about levels of consumer and worker protection given to the employees Gig workers are typically classified as independent contractors, which means they often lack access to benefits such as health insurance, paid leave, and retirement plans; this can lead to financial insecurity, particularly during periods of low demand or personal emergencies Workers must rely on their own self-discipline to save money for the future or risk financial hardship

Additionally, income from gig work is often variable, and may even fall below the minimum wage (after accounting for expenses such as equipment and transporting costs) This issue is evident in Bristol, where Deliveroo drivers were found to be living in “caravan shantytowns” as they worked long hours for little pay (£6.27 per hour), as living costs rose faster than wages.

One study also found that piece-rate gig workers also suffered from worse mental health and life satisfaction compared to traditional employees. Gig work can lead to a sense powerlessness and increased loneliness While financial insecurity plays a role (the short-term, temporary employment often leads to greater stress) a more contributing factor was loneliness Gig workers face more social isolation as they don’t need to come in to work, and lack regular coworker interactions, and don’t have access to traditional workplace support systems, leading to a decrease in mental wellbeing

Still, the gig economy is growing, with the global gig economy market is projected to reach approximately $2,146 87 billion by 2033, with a compound annual growth rate (CAGR) of 16 18% from 2025 to 2033 Therefore, governments and policy makers will have to place a growing emphasis on regulating the sector to prevent worker exploitation

In February 2021, a UK Supreme Court ruling found that Uber drivers are entitled to benefits such as paid holidays, minimum wage and pensions The decision reclassified the drivers as workers, who have fewer rights than employees but more benefits and protections than independent contractors This case could set a precedent for the gig economy, improving worker conditions for the gig economy.

As the gig economy continues to grow, workers, businesses, and policymakers must collaborate to ensure a fair and sustainable work environment. Regulatory frameworks must strike a balance between economic efficiency and worker security, ensuring gig workers receive fair compensation and essential benefits Ultimately, the future of the gig economy depends on how well it adapts to these challenges If properly regulated and supported, it can provide meaningful work opportunities while maintaining fairness and security for workers As the world of work continues to evolve, striking this balance will be key to ensuring a sustainable and equitable labour market for all.

Turning the Tide: A Memorable Beach Cleanup Experience

Zara Ansari

On February 7, 2025, a dedicated group of 48 volunteers from Dubai College took part in a beach clean-up at Jumeirah Public Beach, aiming to combat the growing issue of cigarette waste and plastic pollution Over the span of just 90 minutes, we meticulously collected an outstanding 5,600 cigarette butts, highlighting the scale of improper disposal Alongside this, we removed 2 17 kg of plastic waste, 0 21 kg of glass shards, and 1 12 kg of cigarette-related waste, including packaging and filters

This initiative was part of Save The Butts, a targeted sustainability campaign led by Ms Omaima Ahmed and the Goumbook team as well as the Dubai Keynes Society and Environmental Club. The project focuses on raising awareness about the environmental impact of cigarette litter, a form of pollution often overlooked despite its severe consequences on marine life and coastal ecosystems.

Our cleanup journey began at Jumeirah Public Beach, where we gathered as a team and were welcomed with an introductory speech The organisers explained the environmental impact of cigarette litter and outlined what we would achieve that day It was inspiring to hear how previous cleanups had removed millions of cigarette butts and plastic waste from Dubai’s beaches, helping to protect marine life and keep our city’s coastlines pristine

To ensure a smooth and efficient cleanup, we were given essential equipment, including cups for collecting cigarette butts, gloves for safety, and large bags to gather the waste Equipped and motivated, we set off along the sandy shores, ready to make a difference

Walking along the beach, it was eye-opening to see just how much cigarette litter was embedded in the sand Beach cleanups are often perceived as simple waste-collection activities, but this experience was much more than that As volunteers, we bonded over a shared commitment to protecting our environment, realising how even small actions collectively make a massive impact.

This cleanup was just a small part of a much bigger movement. Since the start of the campaign, Save The Butts has collected 4,964,521 cigarette butts, amounting to 1,622.25 kg of waste with the help of 4,068 volunteers. This project is proof that collective action leads to real change. Dubai College students, through initiatives like these, are embracing their role as environmental stewards. It was a privilege to participate in such a meaningful event, and we look forward to contributing more to sustainability projects in the future.

Beyond the numbers and environmental impact, the cleanup resonated with volunteers on a personal level Soumya Gollakota, a Year 7 student, shared her own experience of the event:

"Did you know that cigarette butts take 10-15 years to decompose? These are the statistics that made me aware of the reality of the plastic crisis, and my experience at the Beach Clean-Up was the perfect opportunity to demonstrate actions for a more sustainable world! From picking a variety of plastics ranging in different sizes to learning about the staggering circumstances which beheld marine life, the event inspired my philanthropic side to help our environment, most importantly the aquatic animals at stake due to this ever-rising consumption of plastics. The key to spreading awareness about this dilemma is inspiring future minds to act – and that is certainly something that struck me that day!"

Soumya’s reflection highlights the power of collective action and how even small efforts contribute to a much larger movement Her words serve as a reminder that youth engagement is essential in the fight for sustainability What we do today defines the world of tomorrow This cleanup showed us that small actions matter, that teamwork strengthens our efforts, and that awareness is the first step toward change As we walked away from the beach, leaving it cleaner than before, we carried with us a renewed sense of responsibility not just to keep our surroundings clean but to advocate for sustainability in all aspects of life Because every small action, every piece of litter removed, and every voice raised for change makes a difference

From Osaka to Tokyo: An Economic Adventure

On Thursday 12th December 3am, 22 students and 2 members of staff set off for the rich cultural uplands of Nippon. This amazing trip combines cultural immersion with an in depth look into what makes the Japanese economy the world’s third largest GDP country. Economics does run legendary trips, but these Japan experiences rank high up in our departmental offering. Japanese efficiency is world renowned, and everyone commented on how everything just works, and works very well indeed; almost as though the Japanese are born engineers who if they see something that isn’t quite right, they fix it! We remember how the Japanese fans in the Qatar World Cup stayed in the stadia after matches had finished to clean up the mess – well, these same incredibly high standards are on full display in every city, country town and mountain path; not one piece of rubbish to be see. In fact, it is a rare sight to see an actual rubbish bin! Citizens are encouraged to take their litter home with them and dispose of / recycle appropriately. Anyway, there were so many highlights in 9 days’ worth of intense experiences that it is difficult to choose one, though I have a personal favourite – 2 days of skiing near Nagano, the site of the ’98 winter Olympics and unforgettable atmosphere of Hiroshima- Mr Christopher

The Japan trip was truly spectacular; from the scenic bike ride through the nature and traditional architecture of Kyoto, to learning the thrilling art of kendo (which was a personal favourite), we had an unforgettable time Walking through the streets, we were immersed in Japanese culture, picking up words and phrases, and soaking in the fascinating, unfamiliar sights and sounds. The Shibuya Sky Tower in Tokyo was also a highlight, where we were encompassed by breathtaking, panoramic views of the city. Another important place was the Hiroshima Peace Memorial Museum, where we were deeply moved as we learnt about the tragic effects of the atomic bomb dropped on the city of Hiroshima. This fostered a greater understanding and appreciation of Japan's resilience and abundant history, contributing to the overall culturally stimulating experience we had - Maryam Khan

The Japan trip was a very fun experience with a lot of different activities that made it a well rounded trip My personal highlights of the trip would be the 2 days of skiing and the Shibuya crossing which showed the liveliness of Tokyo. The cold was a nice change compared to Dubai’s weather. Every city we visited had its own unique style which meant that there wasn’t a point on the trip where I felt bored. Overall, I’m really glad that I went on this trip and got to experience such a beautiful country - Demir Erkovan

One of the main highlights of our school trip to Japan for me was the skiing Even though it was my first time skiing in real snow, the instructors were very patient and helped everyone have a good time on the ski slopes. Also, the ski resort, public bath and food there were all incredible, and I had an amazing time. Another highlight was the lunch we had while watching the sumo wrestlers fight, it was a one of a kind experience and it was also very fun watching my friends fight the sumo wrestlers. Quintin Wiegerinck

I’ve been lucky enough to visit many different countries in my life, but my trip to Japan was truly unforgettable. There were countless highlights, including an intense sumo wrestling lunch, with the option to participate in your own match too, and a picturesque bike ride through Kyoto. But the real standout was skiing, which quickly became a personal favorite though not without some graceful faceplants along the way Despite my overconfidence causing a few dramatic tumbles, the patient instructors helped me find my footing By the end of day one, I was zooming down the slopes on my own (or at least aiming in the right direction) and had stopped behaving like a snowball on legs. Day two took it up a notch: waking up to breathtaking mountain views, tackling a bigger slope, and enjoying the freedom to ski at my own speed. I realised, I’m not half-bad at this sport… as long as I’m not aiming for a gold medal. Emily Jones

Japan was one of the most unforgettable experiences I’ve ever had, exceeding my expectations in so many ways. One of the trip’s highlights was a bike ride through the bustling streets of the city. Cycling past vibrant neighbourhoods felt surreal, and we made a muchneeded stop for a hot, delicious matcha to warm up in the crisp weather. Along the way, we visited a Buddhist temple, where we learned more about Japanese culture and history. Another standout moment was skiing on Japan’s snowy slopes, with breathtaking mountain views adding to the thrill. And, of course, the food was incredible from steaming bowls of ramen to fresh sushi, topped off with plenty of matcha ice cream. Simran Dosanjh

One of the highlights of our school trip to Japan was the bike tour through Kyoto. We cycled along narrow streets, passed waterways and traditional homes, and visited a beautiful Buddhist temple before continuing to an Inari shrine. It was such a unique way to experience the city it felt peaceful yet vibrant, so much more engaging than a walking or bus tour. A close second was the Shibuya Sky Tower in Tokyo. Standing on the observation deck, surrounded by endless city lights, was absolutely unforgettable. Darya Mostovaya

Patchi: A Taste of Economics

On Thursday 13th February, 65 Year 12 students and 3 staff set off on the magical mystery chocolate factory adventure and no golden ticket was required!

Our Patchi trip was an amazing trip that combined the fun of exploring a chocolate factory while also learning about the intricate details involved in the production process and the elements of economics that we have learnt that apply to it. It was very immersive, allowing us to get a first-hand experience of the work that is required to make different types of chocolate It was a very fun added bonus that they gave us many gifts to keep Overall, the Patchi trip was a perfect experience that clearly took a lot of planning and effort on their side which I am truly thankful for (Demir Erkovan)

From the moment we stepped into the Patchi factory, we were transported into a world of chocolatey wonder where nuts were roasted to perfection, velvety chocolate cascaded in mesmerising fountains, and the sweet scent of cocoa filled the air If Willy Wonka himself had walked through the doors, he would have nodded approvingly at the sheer magic of it all. But unlike the fictional factory where mischievous children met their fate in rather unfortunate ways, Patchi’s doors were wide open, welcoming us with warmth, generosity, and most importantly an endless supply of chocolate! We witnessed firsthand the intricate process behind luxury chocolate production, gaining valuable insights into economics concepts like division of labour and efficiency, all while indulging in the art (and joy) of chocolate-making From moulding and designing our own chocolates to competing in creative challenges and sampling more chocolate than we thought humanly possible, the trip was a delicious blend of learning and fun. A heartfelt thank you to the incredible Patchi team for their hospitality, kindness, and patience especially considering the sheer volume of chocolate consumed that day! What follows are reflections from our students, each one echoing the same sweet truth: the Patchi trip was nothing short of scrumdiddlyumptious!

A huge thank you to Patchi for organising such an insightful and enjoyable trip for our A-Level Economics class! Visiting the factory gave us a firsthand look at the real-world application of the division of labour, helping us connect theoretical concepts to practical operations. It was fascinating to observe how specialization and efficiency contribute to production, reinforcing what we’ve been learning in class. Seeing the different stages of chocolatemaking, from raw ingredients to packaged products, deepened our understanding of how businesses optimize productivity On top of that, we were treated to plenty of delicious chocolate, which made the experience even sweeter! The trip was both educational and incredibly fun, and we are truly grateful for the opportunity to learn in such an engaging way Thank you, Patchi, for this memorable experience! (Kashish Sajnani)

Patchi: A Taste of Economics

The employees at Patchi made our school trip an unforgettable experience with their warmth and hospitality Their effort in organising a special cake and birthday appreciation for those of us celebrating, including me, was truly heartwarming and made the day even more special One part I found particularly fascinating was the meticulous way they sorted nuts to ensure standardization I loved the chocolate-covered strawberries and rich hot chocolate that made the visit even sweeter Thank you Patchi! (Aadishree Choudry)

A trip to the UAE's luxury chocolate factory sounded like something out of a childhood Willy Wonka dream and it was From the minute we walked in, we were a part of the Patchi community. We were guided through the entire chocolate-making process, from roasting nuts to handpackaging chocolates. Not only was it fun, allowing us to design our own chocolates, sample, and interact with each stage of production, but it was also incredibly informative, with much to learn about the art of chocolate making Of course, we can't forget the goodies we received along the way photos, stickers, a chocolatemaking toolkit, and so many chocolates to share or keep for ourselves In the spirit of Valentine's Day, we were able to gift our creations to others and even had the special opportunity to enter a competition for a chance to have our creation featured in their stores. Patchi, we loved the opportunity, and we are so grateful! (Sanaaya Patel)

Dear Patchi team, thank you so much for the amazing opportunity to visit the factory and take part in several fun activities. I really enjoyed learning about the entire production process, and appreciated you giving us the opportunity to make our own chocolate in a hands-on activitty Thank you so much for organising this for us and for all of your time! (Anika Jethwani)

Hey Team Patchi, just wanted to send a huge thank you for the amazing experience at your chocolate factory. We had a great time learning about the production process of chocolate, and of course, making our own chocolates was a highlight! The best part was definitely getting creative with the posters at the end it was such a fun way to wrap up the trip I really appreciate the effort you put into making it such an enjoyable and insightful visit I don't think I've ever eaten that much chocolate at once! Thanks again! (Yorgen Engmann)

Dear Patchi team - I wanted to extend my heartfelt thanks for the incredible trip It was such a wonderful experience, and I truly appreciate the immense generosity shown by everyone, I don’t think I have eaten this much chocolate in my life! My highlight, without a doubt, was the chocolate-making experience it was so much fun to learn the process firsthand and create something so delicious. It also taught me a lot about the division of labour and how each role plays a vital part in creating something as amazing as your chocolates It made the entire trip unforgettable! Thank you again for such a memorable and sweet adventure I’ll definitely cherish the memories for a long time to come (Eman Ansari)

Patchi: A Taste of Economics

The Patchi trip was easily one of the best school trips I’ve been on. I learned about everything from what goes into chocolate and how the machines work to the different types of sugar used. It was a great chance to see how Patchi makes its chocolate, and the whole experience was fun (Shaurya Rishi)

Dear Team Patchi, the visit to the factory was an eye-opening experience. The chocolate produced there is top class and this was an experience I'll remember forever Seeing the raw materials, specialisation, division of labour and supply chain management were some of the key takeaways from an academic perspective Thank you so much for your time and chocolate (Aarav Dave)

The Patchi trip was one of the best school trips I learnt about everything from the components of chocolate to the machinery used for chocolate-making to even different types of sugars! I’m very grateful for the opportunity to understand the chocolate-making process used at Patchi (Hassan Khursheed)

The Patchi trip was very enjoyable with one of my main highlights being when me and a group of my friends created/moulded some of the chocolate that would later be distributed randomly to some of the students, this was a very fun hands-on, one-of-a-kind experience and the chocolate tasted very nice afterwards. In terms of economics, it was also very interesting to see how certain jobs like the chocolate melting to the distribution of the chocolate to be moulded or the nut crushing and other jobs were spread throughout the factory to ensure maximum efficiency and productivity while maintaining their high quality Overall, the trip was very entertaining and insightful and lots of fun (Qunitin Wiegerinck)

The economics trip to the Patchi chocolate factory was a great mix of learning and tasting The employees were incredible welcoming, giving us a behind the scenes look at how their chocolate is made while keeping us well supplied with A LOT of samples We got to mould and decorate our own chocolate with our friends, with plenty being eaten on the way It was also interesting to see the economics behind luxury chocolate, from sourcing ingredients to managing productions A big thank you to the Patchi team for their time, generosity, and all the delicious chocolate! (Simran Dosanjh)

We sincerely appreciate the opportunity to visit your facility and observe the chocolatemaking process It was an insightful experience that allowed us to understand the production The visit provided valuable learning opportunities, and we truly appreciate the time and effort taken to accommodate us Thank you for your hospitality and for making this educational visit possible (Alexander Gunson)