Whitonomics 2020

WHITONOMICS Issue 8 | March 2020

TURBULENCE AHEAD

THE END OF AN ERA

DEAD OR ALIVE

The fall of Thomas Cook serves as a warning to unchecked ambition

Does China’s slowdown spell the end of its stateowned enterprises?

The state of cryptocurrency after a decade is uncertain

Table of contents Letter from the editor ................................................................................................... 3

G L O B A L Turbulence ahead .......................................................................................................... 4 A pot of gold ................................................................................................................... 6 The US strikes back ........................................................................................................ 8 The bogeyman of South Africa’s economy .................................................................. 10 A tale of two parties ..................................................................................................... 12 In hindsight................................................................................................................... 14 The emergence of an economic powerhouse ............................................................. 16

A S I A The end of an era......................................................................................................... 18 Another scramble for Africa? ....................................................................................... 20 No output without input .............................................................................................. 22 A game of tariffs ........................................................................................................... 24

F I N A N C E Dead or alive ................................................................................................................ 26 The myth of the perfectly competitive labour market ................................................ 28 Bibliographies .............................................................................................................. 30

2

Letter from the editor This issue of Whitonomics comes during a turbulent year. From Brexit to unexpected bankruptcies to the ongoing trade war, the world economy is experiencing changes and development at a rapid pace.

As this magazine went to print, the novel respiratory disease Covid-19 was dominating headlines the world over, and is projected to have a significant and long-term economic impact both domestically and internationally.

Even as political and socioeconomic events continue to unfold around the world, Whitonomics tracks their progression and analyses their impact from both short- and long-term lenses. We hope to do the same with this year’s edition, and further, to offer critical analysis on current issues and helpful insights into the world economy. Enjoy your read.

Ryan Ho Editor-in-Chief

Contributors

Ryan Ho Editor-in-Chief

Pedro Rosselli Editor/Writer

Josh Das Writer

Will Hughes Chief of Design

M. Al-Hasso Supervisory Teacher

David Lawrence Senior Editor/Writer

Sairan Uthaykumar Editor/Writer

Hasnain Mirza Writer

Hussain Zaidi Writer

Raul Malad Writer

Suraj Shah Writer

Talhah Iftakhar Writer

3

Hasan Zaidi Editor/Writer

James Vandrau Writer

Waseem Ruhomaun Writer

Global

WHITONOMICS ISSUE 8

According to Patrick Collinson of the Guardian, T‘he 178-year-old tour operator was always going to struggle given the change in the way people take (and book) holidays”. This is because many consumers now book their holidays online. Such examples include Ryanair, EasyJet and AerLingus, with all of their customers booking online. According to the Guardian, ‘only one in seven pop into a high street to buy a holiday’.

Turbulence ahead The fall of Thomas Cook serves as a warning to unchecked ambition Sairan Uthayakumar

Travel agent Thomas Cook, the world’s oldest travel group has recently declared bankruptcy which had triggered a ‘bitter blame game’ over who was to be held responsible (according to Alice Hancock and Daniel Thomas from the Financial Times). The main culprits for the company’s fall were the company’s banks, its managers and bondholders, and most importantly, Thomas Cook’s largest shareholder China’s Fosun. Thomas Cook opened in 1841 where it organised 500 people to be taken from Leicestershire to an important company meeting in Loughborough. Only 4 years later, they officially entered the tourist business, allowing customers to move from A to B quicker and cheaper than they ever had before to counties such as Nottingham, Derby and Liverpool. Business was going better than expected and the company was making a lot of profit. A century later, in 1948 the company was bought by the owners of Orient Express and

immediately the travel agency became nationalised – it was transferred from private to state ownership, however it was privatised again in 1972. In 1972, Thomas Cook was sold to a series of companies such as Germany’s national airline called Lufthansa. Quoting directly from The Telegraph, the writers claim the ‘seeds of the company’s downfall directly comes from the decision to merge with a rival agency called myTravel in 2007’. MyTravel Group was a package holiday company based in the United Kingdom. It was founded in 1972 and ceased operations in 2007 – coincidently at the same time as merging alliances with Thomas Cook.

Following the news that the travel agency had acclaimed £47 million in deficit since 2007, the current UK Prime minister, Boris Johnson complained whether the people in charge of finances and the company’s banks were ‘properly incentivised to sort these matters out’.

4

However according to The Economist, the number of Britons going abroad on holiday is increasing by the year – as in 2010, the number of Britons going on ‘inclusive holidays’ was 14.3 million, compared to in 2018, where the number had skyrocketed to 18.2 million, in just 4 years. There is a simple explanation for this huge increase – the cost of travelling abroad has decreased due to costs of flying for airlines (increased availability of oil for fuel). Furthermore, relating to this point, the Guardian adds, ‘it is still cheaper to buy a family holiday as a package than to book the components individually.’ Then why have sales fallen as the whole concept of Thomas Cook (and their main rivals TUI, who are also witnessing plummeting sales year by year) is selling holiday packages, whereas individual airline sites don’t offer family holiday packages. Additionally, the popularity of TV showbiz such as ‘Love Island’ has boosted the number of holiday makers to cheap locations such as the Canary Islands and Mallorca.

In fact, the sponsor airline of the most popular reality television

airlines, the airline wasn’t flying to as many destinations ; for example as of January 2019, easyJet declared its fleet flew to more than 35 countries.

Last year alone (2018), the airline flew over 90 million people which is approximately 5 times as more as Thomas Cook.

As the airline struggled to pitch itself to a new haul of tourists, the company was hit by the 2016 coup attempt in Turkey (the illegal seizure of government authority in 2016). To add more heat to an already tough situation for the airline, The popularity of TV shows has boosted visitor numbers to places like Mallorca.

‘Thomas Cook needed another 200 million pounds on top of a 900 milshow in the UK in 2018-2019, hundreds of millions of pounds from lion pound package it had already Jet2Holidays has seen a significant shareholders in 2013, until recent agreed, to see it through the winter increase in sales over the last year. statistics illustrating that just before months when it receives less cash The owner of the airline’s profits the summer had come to the UK this and must pay hotels for summer serrose 36% to £177 million on the reyear, debts had calculated to approxvices.’ Moments before its collapse, port of Travel Weekly. ‘Tim Jeans, a imately £1.25 billion, requiring the bosses and chief executives of the former managing director of Monfull payment to be paid back annual airline met lenders in London to colarch airlines who left long before its payments of £140 million each year late any last deal to save the compacollapse in 2007, told BBC 5 live in interest payments. Due to its inny from liquidation ; unfortunately Thomas Cook had "an analogue busi- creasing debts, the company was this did not go to plan. ness model in a digital world". This forced to put its airline up for sale in To conclude, there were many exemplifies the idea that Thomas an attempt to clear the debt quickly Cook was falling behind the pace of to avoid further interest, however no factors that contributed to the closure of Thomas Cook, ranging from time and technology in which many shares in the company were sold. convenience for holiday planners to holiday planners wouldn’t care about The collapse didn’t affect just book their flights/accommodation the extra ‘£100’ when booking a holithe airline, but also providers for (there were easier methods) to just day because it was a much easier which the company advertises (e.g. not enough destinations, therefore process. hotels). The firm ran hotels and redecreasing popularity. Nevertheless, On the other hand, Jim sorts for 19 million travels a year the most important reason to their Armitage in the Evening Standard ranging in 16 countries (which was fall was their unavailability to pay stated that, ‘the internet and this also another reason for its collapse back debt in time and the distrust of summer’s heatwave could have con- because compared to cheaper British their biggest shareholders in lending tributed to Thomas Cook’s demise’. money to clear their immense debts.

However, the main reason to the company’s fail was owing too much debt, which began (as discussed before) as a result of the company’s coalition with myTravel. Thomas Cook thought back in 2007, that this Thomas Cook was forced to put its would be a good idea and the partairline up for sale. nership of both companies seemed to be going really well whilst raising 5

Global

WHITONOMICS ISSUE 8

A pot of gold A country with rich resources, Gabon’s potential is yet to be realised Suraj Shah

Gabon lies of the west coast of Africa and shares borders with Cameroon, Equatorial Guinea and the Republic of the Congo. It has a population of 2.17 million people. Gabon’s GDP in 2017 was $14.62 billion, with it's real GDP growth rate being 1.1% in 2017. The GDP per capita was $7220.69 in 2017. Agriculture equates to just 5% of GDP, industry amounts to 44.7% and services amounts to 50.4%. However, 64% of the labour force work in agriculture, 12% in industry and 24% in services.

This makes it an industrialising country, which produces agricultural products such as cocoa, sugar, palm oil and coffee. It has industries such as extracting and refining petroleum, gold, food and beverages, textiles, manganese.

measure development in a country consists which consists of the GNI per capita, life expectancy, average years of schooling for adults aged 25 and expected years of schooling for children of school-entering age) showed that the country is 7th in the HDI rankings for African countries and has a global rank of 110.

Gabon had an inflation rate of 2.7% in 2017 which has demonstrated monetary discipline. Its balance of trade is $1384.80 which is promising as it shows sustainability within the economy as less public debt is accumulated. Their largest export partners are China. The main commodities of which they export are crude oil, timber, manganese and uranium.

The main commodities that it imports are foodstuffs, machinery and Gabon’s unemployment rate is equipment, chemicals and construc19.5%, which shows with more FDI tion materials. and government investment it still The president of Gabon is Ali has the potential to grow. The popuBongo Adimba since October 2009, lation below the poverty line is who became president after the 34.3%, which still shows that it has a death of his father (Omar Bongo) in lot to improve on. It has an extreme2009. Presidents are elected by a ly high-income inequality. The HDI universal vote for a seven-year term. measure (a composite measure to 6

The National Assembly of Gabon has 120 deputies elected for a five-year term. It is a former French colony, but it gained independence from France on the 15th July 1960. The main language is still French, and France predominates the country’s foreign, cultural and commercial influences.

Gabon is famous for having huge amounts of greenery (with around 85% of land being forest) and natural beauty. There is some ecotourism, which generates money for the economy. This paradise also has stunning beaches which results in high levels of tourism. A typical reason of why people know of Gabon is due to the Arsenal striker PierreEmerick Aubameyang. He’s one of the best African footballers and one of the best strikers in the world. He has a huge Instagram following of 8.9 million followers.

Gabon has a warm, moist climate with temperatures ranging from around 23 to 32 degrees which makes it very attractive for tourism and agriculture. Also, as it has a

nese investment because China tends to over-invest into many developing countries, not specifically for trade with that country, but to take over assets. They make a developing country get into a lot of debt with China, and eventually seize the assets they originally wanted to capture. For example, Sri Lanka got into debt with China after receiving a lot of FDI and the Chinese eventually seized a Sri Lankan port called Hambantota.

Gabon's relatively stable climate means that the tourism and agricultural sectors are able to operate all year.

relatively stable climate, there would be no seasonal unemployment as the tourism and agricultural sectors in particular can make money all year long, resulting in a higher GDP, which means the government has more money to spend on public services like health and education to increase development and the standard of living for Gabonese people.

The first oil discovery in Gabon was near the capital, Liberville, when it was still a French colony. The record year of oil production was in 1996, when it produced a staggering 365,000 barrels per day. In 2016, it produced 227,000 barrels per day. It has oil reserves of 2 billion barrels and gas reserves of 530mcm. The oil industry currently accounts for over 50% of Gabon’s GDP, and 80% of the country’s export earnings. Therefore, diminishing production and a fall in oil prices have hurt the economy.

With Gabon’s government realising that natural resources don’t last forever, they invested heavily in infrastructure such as roads, which creates better accessibility to different parts of the country which encourages more FDI which allows the

multiplier effect to occur as when TNCs set up factories/offices abroad, they create jobs, increasing the disposable incomes of workers, meaning that workers spend more money in the local economy, this results in the government being able to collect more tax revenue, this means that they can spend more money on public services such as health or education which increases development.

Gabon have heavily invested into the agricultural sector in an attempt again to make the most out of the brilliant weather for growing crops, particularly in the agrifoods sector. They have also heavily invested in the secondary sector by improving the quality of factories, which in turn increases the attraction for TNCs to get their products manufactured in Gabon.

China have invested a lot of money into Gabon, as a result they have created new markets, so the country is less reliant on the oil and gas industry. For example, the Chinese company TBEA, has invested 180 million euros into a hydropower project. However, Gabon shouldn’t get too carried away with the Chi7

Gabon can improve its economic and social wellbeing by reducing corruption. It is rated 124th by the corruptions perceptions index (out of 180 countries). The government can also create more jobs in rural areas, for example, build some factories, this means that more people will be employed, which contributes to higher economic growth, which results in higher development.

To reduce the very high inequality, the government could possibly introduce a concept like the national minimum wage, this would also reduce poverty. They could also do this by increasing income tax especially for those who earn high wages and redistribute it to the poor or invest in a project which creates jobs. The country has made good initial steps which are heading away from being totally reliant on the oil and gas industry, now they just need to encourage even more FDI in lesser industries, like agriculture and tourism which are sustainable.

However, it has done a terrific job over the last 30 years to develop as much as they have, many countries blessed with vast amounts of natural resources, like Congo should follow in Gabon’s footsteps and use their resources as an advantage not a hinderance.

Global

WHITONOMICS ISSUE 8

The US strikes back The World Trade Organisation’s ruling that the US was allowed to impose tariffs on $9.7 billion dollars worth of goods has raised eyebrows Hussain Zaidi

The World Trade Organisation has ruled that the US is allowed to impose record tariffs on $9.7 billion of the goods it imports from the EU in retaliation to illegal subsidies given to Airbus by European governments.

This is near twice the previous record of $6 billion set in 2002. But why has it reached this decision?

The American Boeing and European Airbus are primarily aircraft manufactures; they have a duopoly on commercial aircraft, resulting in an intense rivalry between the two.

Both companies have also been involved in a dispute since 2005 when the US filed a case arguing that EU loans to Airbus were illegal state subsidies. In 2010, The World Trade OrThe World Trade Organisation ganisation ruled in favour of the US. is an intergovernmental organisation However, the US then complained that regulates trade between differthat the EU had not complied with ent countries. It was formed in 1995 the ruling, leading to the continuaunder the Marrakesh agreement and tion of the ‘tit-for-tat’ row. includes 123 nations.

Boeing’s disastrous 737-Max has put the company in financial trouble.

8

Boeing is also in financial trouble, following their disastrous 737Max, which was involved in two major crashes within a few months.

These horrific accidents were caused

by Boeing rushing to complete an updated version of the fifty-year-old 737 with new, poorly designed engines to compete with the Airbus A320neo. This scramble to the market was due to a 2011 order from American Airlines for a 737 with new engines before Boeing had even announced that they were going to produce such an aircraft. These accidents have resulted in regulatory authorities, such as the FAA, grounding the 737 until further notice, and cancellations of orders for the 737Max. Because of this, in July 2019 Boeing reported the worst financial losses in its history, losing $3.38 billion for the previous quarter. These sanctions will help Boeing remain competitive in the crowded aerospace market, where its reputation has been hit.

Later in October 2019, the U.S Government placed tariffs on EU goods due to this conflict. The main target of this sanction, Airbus, now

Airbus now has to pay a 10% tax on aircraft imported from Europe.

has to pay 10% on aircraft imported from Europe. The consequences of this also include a tax of 25% on German and British industrial and agricultural products and Spanish, Italian, and French food products.

French Finance Minister, Bruno Le Maire said: “We are offering the hand of friendship, and I hope the US listens to the voice of reason”, describing his wish for the situation to change.

President of the United States, Donald Trump, believes that a trade deal is expected. Trump has tweeted “China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60% of total deal, after APEC in Chile was canceled do to unrelated circumstances. The new location will be announced soon. President Xi and President Trump will do signing!”

The EU could exact revenge on These sanctions come at a the USA next year when the WTO has time when there are trade tensions to decide if the US was in violation of strain the global economy. In March subsidy rules when it gave tax breaks 2018, the Trump administration an- to Boeing. It is highly likely they will nounced 10% tariffs on aluminium rule in favour of the EU. The German and 25% tariffs on steel imported foreign minister, Heiko Maas, has into the US, prompting the EU to im- also threatened to retaliate stating pose $2.86 billion worth of duties on the EU “will now have to react and, American goods such as motorbikes once they have been approved by and whiskey. Trump has tweeted the WTO, impose its own punitive “Based on the Tariffs and Trade Bar- tariffs”. One way this spat could end riers long placed on the U.S. & its is with a trade deal, which Angela great companies and workers by the Merkel’s spokesman, Steffen Seibert European Union, if these Tariffs and also suggested stating, “Our aim is to Barriers are not soon broken down achieve an agreement with the US on and removed, we will be placing a both of our subsidies in the aero20% Tariff on all of their cars coming space industry”. Le Maire has said into the U.S. Build them here!”

France is “ready to respond firmly with our European partners". He beThe USA is already engaged in lieves that "A friendly resolution to a trade war with China, with Beijing the Boeing/Airbus dispute is the best planning to place $3.6 billion in levies solution, and all the more so given on American goods, following clearthat Europe could impose sanctions ance from the WTO. However, the on the US next year.” However, 9

Trump has tweeted “The WTO is BROKEN when the world’s RICHEST countries claim to be developing countries to avoid WTO rules and get special treatment. NO more!!! Today I directed the U.S. Trade Representative to take action so that countries stop CHEATING the system at the expense of the USA!” This spat has lasted 15 years and may take a long time to be resolved, with either side unlikely to concede. The USA has defended Boeing, whose representatives have reacted with the following statement: “we trust that our example will prompt Airbus and the European Union to immediately bring themselves into full compliance with the substantial rulings against these parties by the WTO”. In addition, the UK government has responded to this by replying that “The UK government is clear that resorting to tariffs is not in the interests of the UK, EU or US. We are working closely with the US, EU and European partners to support a negotiated settlement to the Airbus and Boeing disputes. We are also seeking confirmation from the WTO that the UK has complied fully with WTO rulings regarding support to Airbus, and should not be subject to tariffs.”

Both sides seem to desire a resolution to this dispute, which is harming the economies of both nations. One way this could be done is through a trade deal. The President has also labelled the World Trade Organisation broken, displaying severe disdain for the WTO and reportedly wants to pull the United States out of the World Trade Organisation.

In summary, although the WTO has sanctioned the EU, it is highly likely that it will treat the US no differently.

Therefore, there is no end in sight for the rift between the EU and the USA.

Global

WHITONOMICS ISSUE 8

The bogeyman of South Africa’s economy Political decisions in South Africa’s government have sent the economy into freefall James Vandrau

Jacob Zuma is a politician that served as South African president from 9th May, 2009 to 14th February, 2018 who many claim to be the most controversial South African president since the end of white-minority rule in the early 1990s. His controversy stems mainly from the extensive list of corruptive use of presidential power that in turn were the causes of why corruption and bribery under his presidency cost South Africa over R500 billion, stated the current South African president, Cyril Ramaphosa.

grades included a swimming pool, amphitheatre, cattle kraal and chicken run which were obviously not security-related. However, The City Press revealed Zuma would only pay 5% of the R203 million cost of the Nklanda Project. If taxpayer money was used for the extra renovations which they most likely were. Then this creates an opportunity cost as the funds could have been spent towards National debt (as in 2009, South Africa has a national debt of $89,530 million which would continue to increase), Health programmes During his first year of presi(such as HIV/AIDS treatment as dency, Mr Zuma’s Nklanda homearound 5.6 million citizens were instead was renovated supposedly for fected in 2009) or Education prosecurity upgrades. However, rumours grams (as in 2009, around 60.6% of and accusations emerged of nonstudents passed their matriculation security related advancements to exams).

Zuma’s house being paid with taxpayer funds. This lead to an investiJacob Zuma’s destruction of gation from Public Protector Thuli the economy continued when he Madonsela who’s “Secure in Comfired Finance Minister Nhlanhla Nene fort” report found that these upin December of 2015 for no apparent 10

reason and replaced him with David Van Rooyen, who at the time was immensely unknown in the world of finance. This out of the blue decision

by Zuma after Mr Nene had only been in his position for 18 months had some major side effects on the economy. For example, investor and business confidence began to decrease as Nene was well respected as a finance minister and people were afraid of losing their money if they invested with Van Rooyen. This led to a slower economic growth overall and the Standard & Poor’s Financial Services lowered South Africa’s credit rating to just above junk status.

What’s more, is that after Nene’s removal, the rand decreased lowest value in four years’ when compared to the dollar. A weaker currency would mean rising profit margins for exports which could result in cost push inflation. Altogether, the monetary affect of his dismissal was that of a debt servicing rising between R1.5 billion and R2 billion estimated Dr. Azar Jammine.

Two years after Jacob Zuma removed Nhlanhla Nene in 2015 from his position as finance minister of South Africa, he announced the 2017 South African Cabinet Reshuffle which led to the sudden dismissal of finance minister at the time Pravin Gordham. The reshuffle was catastrophic for the economy as for one it lowered South Africa’s credit rating from Standard & Poor’s Financial Services to junk level (which is worse than the rating it got during the aftermath of Nene’s removal) and the

laundered through Dubai and used to pay for the hefty price of the Sun City wedding. If this were true, then there would be a high possibility of the public money that should have been used by the government to provide goods and services for the general public were actually not used to increase economic growth whatsoever.

This relates to Jacob Zuma due to his extremely close connection with the Gupta Family and as shown by the extra upgrades for his Nklanda homestead, he is willing to use government spending money for corrupt purposes.

country’s GDP was estimated to lose around $7 million over the next two years following the removal due to the drop in economic growth.

including the Sun City wedding of Vega Gupta and Aakash Jahajgarhia and the white monopoly capital hashtag, the Vrede Dairy Project was most definitely the one that was Finally, probably the most conmost likely to affect the economy. In troversial moment of corruptive play 2013, many newspapers and social in Jacob Zuma’s presidential career, media outlets alleged that R30 milthe Gupta Family is an exceedingly lion of public money that was sup-

Many newspapers and social media outlets alleged that R30 million of public money was misused.

wealthy Indian family whose business posed to be spent for a farming and ventures are mainly located in South agricultural project found in Vrede, Africa. While the Gupta’s and South Free State, South Africa was actually Africa have had many controversies 11

Global

WHITONOMICS ISSUE 8

A tale of two parties A brief comparison of the differences between the labour and conservative economic policies Hasnain Mirza At the time this article was being written it was confirmed that a general election would be taking place. The Conservatives and Labour still remain the two major parties that look set to fight it out over becoming the next party to take the country forward. Previously Labour governments under Blair and Brown have been more centrist, yet now the British people have a genuine choice between left and right, being represented by Corbyn and Johnson respectively, this has evidently been displayed in the economic policies that both present.

Firstly, according to the BBC, Johnson has declared he will provide an initial boost of 1 billion pounds to the NHS, with another 850 million being shared over the next 5 years between 20 hospitals in England. According to the BBC, this is in contrast to promises of Labour in the build up to the 2017 general election where they pledged to provide the NHS with an extra 7.4 billion pounds a year which would have been an extra 37 billion pounds for the NHS for the next 5 years if they had got into power at the time. These figures are being quoted from the BBC which is arguably ‘unbiased’, yet the Telegraph states that the current number 10 is planning on carrying forward his predecessor Mrs May’s plans of giving the NHS an additional 20 billion pounds by 2023. During the EU referendum campaign Mr Johnson pledged an extra 350 million pounds a week for the NHS due to not having

Jeremy Corbyn, leader of the Labour Party.

to pay EU membership fees, which would equate to an extra 18.2 billion pounds a year for the NHS, yet the Telegraph reports that under existing government plans the NHS will receive an extra 7.3 billion pounds this year and 11 billion pounds the year after. Boris Johnson’s track record must be considered to view such figures with an orderly amount of scepticism. The recent front-page headlines of Johnson’s “biggest hospital building programme in a generation, “that would build 40 new hospitals across the UK has in fact proved to be just 6, with them all not being new as it includes refurbishments of existing hospitals. It was recently uncovered that Johnson’s 40 new hospitals plan would only come into effect if the Tories would win the next 2 elections. Now turning back to Labour’s plans for the NHS. This includes abolishing prescription charges as Corbyn states that prescription charges force people to decide be12

tween paying for a prescription or risking their lives. This policy, Mr Corbyn would say fits nicely under Labours tagline of for the many, not the few.

In the midst of a climate emergency that is a threat to our very existence, few would argue against both parties proposed green policies and how effective they may be as a serious factor in deciding who to vote for. The Independent has reported that Boris Johnson is planning on scrapping the environmental standards that were a part of Mrs May’s deal that were in line with the EU , in order to increase the chances of a trade deal with Trump. In late September, according to the Guardian in preparation for the annual meeting of world leaders at the UN in New York, Mr Johnson had, ‘unveiled a combined £1.2bn in funding for new efforts to tackle the climate emergency and protect endangered

Boris Johnson, leader of the Conservative party.

species.’ While at the UN general assembly, Johnson would use his speech to announce a £1 billion funding for high tech initiatives, in order to provide more renewable energy and lower pollutant levels. There will be £200 million expenditure going towards the protection of endangered species, including the black Rhino and Sumatran tiger.

Boris Johnson was present in 5 votes and voted positively in 0 of them, so he got a score of 0% while Jeremy Corbyn got a score of 92%. The cabinet has a combined score of 17%, but the shadow cabinet have a combined score of 90%. To put it bluntly, to trust this Conservative government to sufficiently act on climate change based on the data is questionable.

However, critics have highlighted that Johnson’s plans are simply not substantial enough to seriously tackle the climate problem. Greenpeace has labelled these plans as ‘a flop’ which shows a lack of world leadership on the issue and fell well short of the vision required. The World Wildlife Fund charity praised the plan, but warned that only focusing on technological solutions for the climate emergency would be insufficient. According to a study conducted by the pollster Ipsos-Mori, only 17% of the population actually trust our politicians. Therefore, to make informed judgements we have to look at statistics, such as the voting records of politicians on bills and motions from the climate change act in October 2008 to the Heathrow Expansion in June 2018. The Guardian gave a climate change percentage score to all currently serving politicians. For example, quite alarmingly,

Finally, we need to examine both parties’ broader economic policies. Johnson wants to add an extra 20,000 police officers, making our streets safer, yet in real terms this does not make up for the tens of thousands that had been cut from our forces since the Tories came into power in 2010, which Labour argue has subsequently been a factor in leading to the sharp increases in crime we have been seeing all across the country. According to the ONS, crime rates in England and Wales have been increasing year on year, from a 3% increase from March 2014 to March 2015, to 8% and then 10% increases for the following years. In terms of corporation tax, Johnson is looking to continue the trend of decreased corporation tax under a Conservative government. The rate had been cut from 28% in 2010 to 19% today and due to fall again to 17% next year. Johnson has not specified 13

exactly how much he would want to cut corporation tax, but is in favour of the general idea, stating that it would lead to increased revenue for firms, subsequently leading to increased consumption and investment, plus higher wages to counteract a government estimate that an extra one-point percentage cut in corporation tax would cost £ 3.1 billion in 2022-2023. Labour, however plan to increase the rate of corporation tax from 19% to 26 %, improve workers rights and re-nationalise Royal Mail, rail, water and energy.

Corbyn has also pledged to take on the tax dodgers for which he accuses the conservative government has failed on. An analysis by Global Witness discovered that 87,000 properties in the UK, with 40% of them in London are anonymously owned by firms registered in tax havens, has a value of over £100 billion, these are the kind of acts Corbyn states are depriving our stuttering public services that he has pledged to rebuild by chasing down the tax dodgers, including big corporations such as Amazon. However, with respect to the ‘super rich’ tax dodgers, they are planning on leaving the country ‘within minutes’ if Corbyn gets elected, which does beg the question as to how Corbyn would then hold these people accountable.

Overall once again as in the 2017 General Election, the British people face a stark choice. Yet there is one key difference, Corbyn’s opponent is Johnson and not May. Only time will tell how great an impact this will make as although Johnson is a populist leader that is not timid with his choice of words, this approach also comes with its consequences and in comparison, to May, Johnson has faced a lot more scrutiny.

Global

WHITONOMICS ISSUE 8

In hindsight...

Why Britain was never truly European Raul Malad One can understand why Brexit news has become so tedious to so many; hearing 2 years of analysis over complex issues from trade negotiation to environmental protection laws leaves one feeling discombobulated and disengaged, inciting even the most avid news reader to turn off. But if one issue is still criminally underexplored in most Brexit reporting, it is why people voted for Brexit in the first place.

To understand why people started to feel leaving the European Union is a good decision, one must first look at why the UK joined it in the first place. Before the EU was ever setup, an agreement was formed between West Germany, France, Belgium, Italy, Luxembourg and the Netherlands known as the treaty of Rome that established the European Economic Community, the forerunner of the EU. This is widely accepted by many to be the foundations on which the EU was built on.

When the UK first applied to be in the EEC, they were turned down by France using their veto. Their reason being that they felt the UK was detached from the rest of Europe as the French President claimed that they had a closer relationship with America than any of the European countries. So, as you can see, history clearly shows that even in the past there were underlying tensions and between Britain and many of the other European Countries that has affected their relations even to this day.

Britain did end up joining the

Margaret Thatcher reduced British payment contributions to the EEC.

EEC 10 years later in 1973 but tensions began to rise again just 2 years later, with a democratic vote occurring in the UK in which the people were to vote over whether to stay with the EEC or not. While 67% of the population voted to stay, people were still split over the matter. This is best seen in the Labour Party- half of its members felt they should stay while the others felt they should leave, and in the end the proEuropean side of Labour split from the rest of the party to form the Social Democratic Party. More problems occurred in the 80’s under Margaret Thatcher who felt that the British payment contribution to the EEC had to reduce as despite the fact that the UK were the third poorest country in the community, they were still made to pay a lot more due to the lack of farms in the country. As a result, Thatcher negotiated a new deal for Britain to agree that the contribution would reduce from 20% of the total in the 1980’s to around 12%.

14

However relations began to settle a little afterwards as in 1997, Labour leader Tony Blair ran for PM and won in a landslide victory due to a strong campaign based around improving relations with the rest of Europe. This came after a late 90’s scare, in which Brussels had imposed a ban on British beef. This meant that harsh restrictions were placed on beef exports. While the general EU ban was eventually lifted in 1999, France kept their own policy in place for a long time after that. A similar policy was also put on Britain’s chocolate exports that lasted for almost 27 years as they believed vegetable oil should not be used as an alternative to cocoa butter in chocolate, something British chocolates such as Mars, KitKat and Cadbury are notorious for.

Bad relations continued with the EU after plans for an official EU Constitution had withered away and the EU Nations had to sign the Lisbon Treaty, giving Brussels more power.

After the referendum, David Cameron ended up resigning from his posts and was replaced by Theresa May who announced her intentions to initiate Article 50 of the Treaty on the EU. From there she announced that there would be a two-year countdown to Brexit that, as we now know, was further delayed to October 31st 2019.

The UK referendum on whether to leave the EU saw 30 million people voting. Of that, 51.9% voted to leave.

Labour PM, Gordon Brown, famously ended up missing a televised ceremony in which the other 26 nation leaders signed the treaty.

While he did sign it at a later date off camera, this even affected the public’s perception and attitude towards the EU as there was criticism surrounding the fact that Brown failed to sign a document he helped to negotiate. In 2011, David Cameron became the first prime minister to veto a new EU wide treaty, this included changes to budgets and Eurozone currencies, everyone apart from the UK signed up to this. Many considered the veto to be out of the blue and unexpected, with French president, Nicolas Sarkozy, stating that the UK were acting in their own interests in one of the EU’s most crucial periods.

In 2013, Cameron gave a speech in which he summed up many of the issues facing Europe and even went as far as to promise a renegotiation of the UK’s membership in the EU if the Conservatives were to win the next election. While this was happening, support was growing for UKIP, a party that took an uncompromising stance against the EU. With all

of these factors combined, along with a growing frustration by many cities in the UK towards the ongoing migrant crisis and economic unrest in the eurozone, the possibility of a British exit from the EU seemed like much more of a possibility.

After winning the 2015 election, Cameron started to work on the renegotiations of an EU deal. This included policies such as changes in migrant welfare payments, financial safeguards, and easier ways for Britain to block EU regulations. In 2017, Cameron announced that a referendum would take place on June 23rd to decide whether to stay or not. He would lead the campaign for Britain to stay in the EU while UKIP Leader, Nigel Farage, led the campaign for Britain to leave the EU, commonly known as ‘Brexit’. Over 30 million people ended up voting and the referendum passed with a 51.9% to 48.1% margin, leading to Britain deciding to leave the EU. The UK was very split on the matter with Scotland Northern Ireland voting to remain but England and Wales voting to leave, leading to renewed calls for Scottish independence.

15

Theresa May announced her intentions to initiate Article 50.

So the UK has never had a particularly rosy relationship with the EU - but there have been times of genuine commitment by Britain to the European project. All in all, it appears the problem was just as the French anticipated; Brits have just never felt truly European, and pro-EU attitude have always been the result of economic necessity, not romantic longing for a closer relationship with its neighbors and certainly not panEuropean ambitions. Hence in hindsight it seems inevitable that this marriage of convenience would end in a messy divorce.

Global

WHITONOMICS ISSUE 8

The emergence of an economic powerhouse The increasing economic power of BRICS has the potential of overshadowing Western economies Waseem Ruhomaun O’Neill forecasted in 2003 that the original BRIC countries would overtake the US by 2050 to become major economic powers in the world, with higher GDPs than the US. Despite the tariff war, which was initiated by the US against China, India’s struggle against poverty, Brazil’s internal turmoil, and sanctions against Russia, the BRICS economies are still likely to eclipse the major advanced economies in the early 2030s. By 2030, the six major economies will be about 5 per cent behind the original estimate, and those of the BRICS a bit more, about 7 per cent .

The British economist, Jim O'Neill is credited for coining the term BRIC in 2001 in “Building Better Global Economic BRICs," a paper written for Goldman Sachs. O’Neill’s aim was to identify the major economic players of the next generation.

According to him, Brazil, Russia, India and China had the potential to overshadow some of the current major Western nations in economic strength over the coming decades.

The BRICS were born in 2011 when South Africa was added to the group.

However, according to O’Neill the inclusion of South Africa has somewhat weakened the group’s power since its economy is too small. The purpose of this essay is to portray the emergence of the BRICS economies and their significance on the global stage.

The term BRICS was coined by Jim O’Neill as a notion to epitomise the changes that were happening in

the global order, where emerging countries were playing an increasingly significant role in global economic growth. The BRICS represent these fast-growing countries with three billion people and a combined GDP of sixteen trillion dollars . These countries have many things in common besides being in the top 15 of countries with the largest nominal GDP, they are moreover amongst the largest countries in the world and holds more than 40% of the world population. BRICS as a group have seen their share of world GDP increased even faster than Jim O'Neill forecast in 2001, with a significant increase from 8% to 23% of the global economy . The IMF had projected that between the year 2016 and 2021, about half of world growth will be attributed to the BRICS nations.

However, BRICS need recognising that growth between its five nations has not been evenly spread.

16

Since the 2008-2017 Global Financial Crisis, the per capita annual growth rate of GNP at the global level has dropped to an average of only 1.7%. In contrast, the BRICS have been the main drivers of global per capita growth during this crisis period, with an average of 5.4%.

According to the New York Times, BRICS do not have enough in common nor do they enough shared goals to function effectively as a counterweight to the west. It further added that they are deeply divided on some basic issues and they are seen as rivals rather than allies in the global economy and have achieved little . This echoes what many experts have been claiming in the last decade that the BRICS member nations are too different, and have too few synergies, to represent a solid economic and political power. Due to China’s increasing economic success and significant influence on the global stage, BRICS does not

represent a union of equal members but more like a company with China as its majority shareholder.

Marc Chandler, noted that much of the heavy lifting has been done by China and India but notably China where the pace of development has been particularly breathtaking. Growth rates in Brazil, Russia and South Africa have been far less impressive.

According to Bharadwaj (2006, 52), the BRICS nations need to face internal weaknesses and various other implications for them to be able to seize their full potential. From Brazil’s political corruption, Russia’s issues with the oligarchs, India’s conflict with Pakistan over Kashmir and China’s suppression of political objectors, these internal issues need to be tackled by the BRICS nations if they were to become the global player as Jim O’Neill predicted. The threat to international trade due to rising US protectionism and the impact of these trade actions on conse-

Although Brazil and Russia have slipped significantly from the original projections, BRICS as a group is still playing a crucial and growing role in the world economy. However, for these nations to be able to sustain a long-term growth and continThe BRICS act more like rivals than allies in the global economy. ue to be major players on the global stage, they should address their inquent global trade prospects can hin- ternal issues and avoid any trade der BRICS growth. wars with the West. BRICS should adopt a strong reform agenda so that According to professor Karin a broader and more sustainable Costa Vazquez, “The BRICS not only growth can be achieved, this aplook set to continue increasing their proach will help them to remain part economic heft, but also have the poof the global geopolitical landscape tential to become a lasting fixture on for the next generation. the global economic stage as a powerful advocate for the interests of developing nations. The combined GDP of the original BRIC is actually far bigger in dollar terms than Jim O'Neill of Goldman Sachs envisaged when he first projected BRIC growth in 2003 . The BRICS countries are projected to remain the main drivers of growth in the world economy by 2030.

BRICS as a group is still playing a crucial and growing role in the world economy.

17

Asia

WHITONOMICS ISSUE 8

of the state-owned Assets Supervision and Administration Commission, this was achieved partly due to “supporting measures by the government”. One such supporting measure used by the government in order to ensure that Chinese SOEs thrive both overseas and domestically is the use of subsidies. A prominent example can be seen from China’s state-owned Baowu Steel Group. A subsidiary of the Group, Baoshan Iron and Steel Co Ltd, reported in their 2018 annual report, that it received a total of 85 million USD in the form of grants from the central government.

The end of an era Does China’s slowdown spell the end of its state-owned enterprises?

Ryan Ho On the 2019 Fortune Global 500 list, Chinese companies accounted for 129 of the world’s largest corporations in terms of revenue. This number was the first time in the many years since the debut of the Global 500 list that a nation other than the US had the highest number of the world’s largest corporations by revenue. (The number of American companies was 121). Out of the top 5 companies in the world, 3 of them were from China (Sinopec Group, China National Petroleum and State Grid). According to Fortune, the most prominent nationality among the bottom fifty of the Global 500 were Chinese. With the trend indicating that Chinese companies are on the rise, it can be seen that this increase in Chinese prominence in the Global 500 is going to continue to grow. These companies look set to continue to rise to the top as they aim for the “fully developed, rich, and powerful” goal that Xi Jinping, the President of the Peo-

ple’s Republic of China, set for the country. However, while the growth of Chinese firms has been indeed remarkable, what is more remarkable is that of the 129 Chinese firms that were in the Global 500, 82 of them were state-owned enterprises (SOEs). These SOEs receive large subsidies from the Chinese government which gives them an advantage over private firms in the West.

According to the State-owned Assets Supervision and Administration Commission of the State Council, from January to April of 2018, the total operating income of SOEs in China was 2.73 trillion USD. This figure represented an increase of 9.7% from the previous year. After costs were subtracted, the total profit for SOEs reached 142 billion USD, a figure that was a year-onyear increase of 18.4%. This figure was touted as a “historic high”.

According to the spokesman 18

Grants are a form of subsidies which are payments by the government to firms in order for the firms to enjoy lower costs of production.

In short, a subsidy is the government helping in paying for some of the costs that occur when producing an item (e.g. for steel, costs of production include transportation and the prices of the raw materials used in its production). This lowering of the costs of production mean that the SOEs are then able to lower the prices of their goods as even if they gain less revenue, they will see the same profit margins as before due to the lower costs.

While it is not credited by the group itself, it can be seen that it is through this system of subsidies that Baowu Group has become the world’s second largest manufacturer of steel in the world. These subsidies also enable those SOEs to sell their goods abroad at very low prices that are below market value in a practice known as dumping (the offloading of goods at below the costprice level leading to predatory

Subsidies have enabled SOEs to sell their goods at below the cost-price level.

pricing.) As most companies in the west are not given the same level of grants as the SOEs in China, this means that they are only able to lower prices to a certain level before they start making losses. Typically, these firms are unable to match the pricing strategies of the SOEs of China meaning that when those SOEs export, they can dominate the market in many places as they are able to offer much better prices to the consumer for the same product.

duties have hurt the Chinese manufacturers, the truth is that Chinese goods are essential to the world economy, at least in the short term.

With the world’s largest industrial output, Chinese goods are typically cheaper than that of their Western competitors meaning that firms that use Chinese goods in their production process typically have lower costs of production than the firms that use domestic products. Therefore, firms may try to get around these duties in order to keep their This is not to say that Chinese costs and profits the same, meaning firms dominate foreign markets. Forthat these tariffs may not be of any eign governments and trade blocs use at all. retaliate by imposing duties on Chinese duties. An example is the US Of more pressing concerns for government which through its Com- Chinese domestic manufacturers is merce Department imposed duties of the slowdown of the Chinese econoup to 79.9% on Chinese-made kegs my. In 2018, official statistics from and duties up to 1,731% on mattress- the National Bureau of Statistics of es on the 29th May in 2019 in retalia- China placed the growth of real GDP tion to Chinese dumping. As of the (GDP adjusted for inflation) at 6.6%, th 10 October 2019, the European Un- a rate that is the lowest since 1990. ion (a trade bloc) imposed tariffs as This slowing of growth is also conhigh as 66.4% on steel road wheels firmed by the McKinsey Global Instifrom China. This is because the EU tute’s Economic Activity Index which stated that the imports caused echoes the trend line of the official “material injury” to European Union GDP numbers released by China. As based manufacturers of steel road China’s economy starts to cool down, wheels. However, even though these private firms in China may see less 19

investment as investors become wary of the way that the economy is trending towards. This decrease in investment means that those firms have less capital to increase their production and means that they are unable to lower costs of production to compete with competitors in other countries which are not faced with slowing economic growth. This could mean that Chinese private firms would see decreased profits as consumers switch from them to firms in other countries that are able to offer better prices. This decreased profit for firms would result in decreased tax-revenue for the Chinese government meaning that the government would have to scale back the extent of its grants to SOEs thereby resulting in the costs of production of those SOEs going up, causing a decrease in their ability to dominate markets domestically and abroad as they would have to push prices up to avoid making losses.

While this may be the case, in reality, China is still a country that as Nick Leung, a senior partner of McKinsey, puts it “continues to rack up one of the most enviable growth rates in the world”. While there is a slowing of the economy, the sheer size of the Chinese economy means that even a slowdown still provides large economic growth in absolute terms. Though China’s economy is slowing, in reality there will be little impact on the SOEs and it can be seen that they will be on track to continue to dominate the Global 500.

Asia

WHITONOMICS ISSUE 8

Another scramble for Africa?

The waves of Chinese investments into Africa are enough to make anyone wary Hasan Zaidi Despite Africa’s magnificent size and population, it has been poorest of all inhabited continents.

However, this is beginning to change due to a mutually beneficial relationship with China. I will detail how China’s search to widen its geopolitical sphere and import resources are the reasons behind the increase in Chinese interest in African economies, and how they will benefit both regions immensely.

left African countries underdeveloped, but this is changing – in part due to Chinese expenditure upon infrastructure, and an increase in foreign direct investments.

Naivasha in Kenya, attached to a previous $3.2 billion project linking the ports of Mombasa and Nairobi in 2017. Unveiled in 2013, China’s Belt and Road initiative aims to improve trade routes to Africa before the China’s motives for investing 100th anniversary of the People’s in Africa vary. For instance, China Republic of China in 2049. Other simseeks geopolitical and economic inilar investments include an extension fluence over African nations. China’s of the port of Djibouti, the Doraleh modern trade links with Africa date Multi-purpose port, Nigeria’s first back to a deal with Algeria, Morocco, standard-gauge railway, and a then-Sudan, Somalia, and Egypt in pledge to provide satellite television Before I expound China’s mo- the 1950s, offering economic and to 10,000 African villages at the 2015 tives, it must be understood that Af- military support to encourage revoJohannesburg Summit of the Chinarica requires such investments to lutions, resulting in sovereign states Africa Cooperation Forum. Whilst escape the privation many countries under Chinese influence. More resome help China establish ties, many have experienced. The primary rea- cently, Another enterprise, the China of these projects extend China’s insons behind the evident and exten- -Africa Cooperation Forum, includes fluence by allowing countries to sive poverty are regretful consealmost all African states (due to its trade goods with the BRIC economy quences of slavery and colonialism, recognition of Taiwan, China lacks more easily. both having left Africa in ruins by diplomatic ties with Eswatini) and violating communities through the meets triennially, with the most reThe emerging superpower also theft of the workforce. Moreover, cent taking place in Beijing, 2018, seeks to gain natural resources, inthe prevalence of corruption in gov- resulting in investments. In October cluding oil and gas, through such reernments inhibits economic and so- 2019 a Chinese-built $1.5 billion rail- lationships. Although China has goals cial development. These factors have way route between Nairobi and of producing 3 million barrels of oil a day by 2023, it will need to find new oil source to help achieve this; its domestic oil production has fallen due to natural depletion. As a result, Chinese companies are pursuing oil, and the abundant natural resources to be mined in African countries – the US government predicts 80% of China’s crude oil to be imported by 2030. A quarter of Africa’s oil is already exported into China, with 10.4% ($24.9 billion) of China’s oil coming from Angola alone in 2019.

The oil companies behind such operations are attempting to place themselves as global players in the Many Chinese investments involve the improvement of infrastructure.

20

China’s CNPC has signed a contract with Benin to operate a 1,980-kilometre crude oil pipeline.

international oil market through funding the production of oil supplies. Three companies stand out: China’s National Petroleum Corporation (CNPC), the China National Offshore Oil Corporation (CNOOC), and the China Petroleum and Chemical Corporation (SINOPEC) have taken an almost equal share in the predicted $15 billion development in the Upstream sector. This figure exceeds the $10 billion sum that China has put towards similar activities in South America, confirming the Chinese view Africa to be a promising region to support their increasing energy demands, alongside other projects, like the $37 billion Three Gorges Dam. The China National Offshore Oil Corporation (CNPC), now the largest Chinese entity investor in Nigeria, has a majority stake 2/2 in an Australian drilling project of the coast of West Africa’s Guinea-Bissau, by resource explorer FAR Ltd. The Nigerian National Petroleum Corporation has voiced support for Chinese investment, coinciding with the continent’s richest man, Aliko Dangote, building a $9 billion oil refinery in Lagos (Africa’s largest).

Furthermore, the CNPC has signed a contract with the govern-

ment of Benin to operate a 1980kilometre crude oil pipeline, the biggest the CNPC has made in Africa to date. This deal indicates that Africa is increasingly viewed as China’s solution, allowing them to achieve their aim of increasing oil production on time. Sino-African bilateral mining deals regarding mineral resources have also heightened in number, with organisations comparable to China-Union Investment competing for a stake in copious quantities of ores. In 2008, China-Union Investment invested $2.6 billion to acquire Bong Mines, Liberia, to mine iron ore. Part of their deal with the Liberian government being paving the road to a town, Kataka, helping expand Liberian infrastructure, as well as profiting from the export of resources. Therefore, it could be stated that China’s increasing interest in Africa could be down to natural assets.

In summary, the increase in Sino-African relations over the past 20 years has been a result of China’s effort to become a global superpower through gaining influence over African economies and by investing in African resources, benefitting China through increasing the GDP of 21

both China’s and African countries’ economies, meaning increased goods and services for all firms in an economy, due to increased wages as a result of such investments, allowing Africa to finally prosper, as governments have money to inject back into the economy through the circular flow of income. Although some economists may argue that China is taking advantage of LEDCs, I have explained how African countries advantage themselves and their people, leading me to conclude that recent SinoAfrican interests do not denote a repeat of the selfish ‘Scramble for Africa’ of 100 years ago.

Asia

WHITONOMICS ISSUE 8

No output without input Curfews in Kashmir are adversely affecting its economy Talhah Iftakhar Kashmir, an ethnically diverse Himalayan region, spreading across 86,000 square miles, known for its beauty of the landscape, has caused many tensions over who has control over the area. This in return meant that Kashmir was split into two between India and Pakistan, with Indian –administered Kashmir being given a semi-autonomous state which was illegally revoked by India on the 5th August 2019 after a seven-decade long status being unruly overturned.

This therefore has meant that many residents of Kashmir are protesting and demanding freedom whilst India has responded with a curfew.

tic visited Kashmir, in comparison to 2017 where 1,200,000 had visited showing a net decrease of around 41%.

India does really want to develop Kashmir and make it stable then they must give Kashmiris their voice on making decisions about their future.

Narendra Modi, the Prime As a consequence of the heavy Minister of India has stated that his security, Jammu and Kashmir transmove to revoke article 370 is to ports of apples, plums and pears are boost the economy, however the being affected, as due to the shortstate's economy is derived from its age in trucks, the freight charges agriculture and tourism which could have been increased by 30% due to take a potentially large sums of time the rare supply of cargo trucks. As a to rebuild due to Modis action. As his result, the increase in freight charges actions have led to protests within will be carried over on to the conthe area, and due to this large insta- sumers as the prices increase as well, bility foreign companies and counties to cover the businesses costs. This is are less likely to invest in the area one of the greatest impacts on their due to Kashmir not having a clear industry as agriculture especially that Due to the lockdown placed by future, and there being a major con- of apples are key to the local econoIndia it has led to Kashmiris having cern over the law and order. my of Jammu and Kashmir. As its aptheir phones, cable television and ple industry employs around 3.5 milYet, India’s Prime Minister the Internet being stripped off them lion people in the several phases of Narendra Modi’s vision of transitionleaving them with a low standard of the production and sale of apples. ing Kashmir's economy is by opening living as they are stripped of their Furthermore, hardly any batches and land to outside consumers, which luxury and necessary requirements supplies have left the area which will result in an influx of new settlers which are crucial for a regions develcould the cause the value of the apcausing the displacement of the loopment. With India then placing an ples to depreciate by 30 - 50% as the cals. This could hence cause a great extra, tens of thousands of troops to crop is seen to be highly perishable. change in the demographics of the maintain order is leading to this area area making Kashmiris second class To add on due to the cut in the to be the most militarised in the citizens on their own soil. However, if phone activity many firms can no world with their being over 800,000 thousand troops active. Union Minister for Finance had allocated $54billion of India's union budget of 2017 on their military which has seen a rise in 7% from their previous fiscal year. This has caused many tourists in their thousands to flee the area in fear of what they may face in these tragic times, with Pakistan and India nearly reaching a point of Brinkmanship. This can be seen as in 2018 only 850,000 tourists foreign and domes- Agricultural transport charges have increased by 30%.

22

the area facing an economic depression which will cause a disaster within South-Asia. The only way this problem can be solved is if both countries have a dialogue with each other and communicate which could decrease tensions, yet India doesn’t see this as an option as they believe this is a domestic issue.

India is one of the largest growers of apples in the world.

longer communicate with the growers which has subsequently led to 50 – 60% drop in the arrivals, as the logistics have only been made worse.

India in 2016 would give out 2.9 million tonnes of apples making it one of the largest producers in the world.

Yet traders believe peace will raise yields and output as India’s output is now seen that of a halve of China’s and a quarter of the US’s. Placing these restrictions in Jammu and Kashmir have led to lower yields because many farmers may now feel demotivated as the freedom has been snatched away, causing their productivity to dramatically decrease and subsequently a cut in the output produced.

Pakistan has a result of India’s actions downgraded diplomatic ties with India and has stopped bilateral trade with one another. This can be seen evident as Pakistan have reacted by halting their main train service to India, whilst having also banned Indian movies as pressure grew for Pakistan to take immediate action.

Foreign Minister Shah Mehmood Qureshi has stated that “We’re not looking at the military option. We’re not.” Any rise in tensions would be-

tween India and Pakistan will cause the US to become hostile and threaten to dismantle any enhanced relationship with the US and Pakistan.

And this would be a major blow as Pakistan needs the US to help bring back Pakistan's economy, as they struggle to overcome a severe balance of payments and require the aid of Trump to do so as it is estimated to grow 2.4% this financial year. Islamabad have also been seen to have registered a $6 billion IMF programme, leading to Imran Khan bringing unpopular reforms such as increasing electricity and petrol prices and developing their tax base. Pakistan will be looking to consolidate a deal with the US in Afghanistan, if goes well could open a part of the $2 billion worth of aid and security assistance which was overlooked last year.

In conclusion we can clearly see that having Kashmir under curfew leads into the dark, in which there may be no return especially if it reaches a point in which nuclear war may become an option. This sees good for no economy on either side (Pakistan and India) similarly with Kashmir which could hence lead to 23

Asia

WHITONOMICS ISSUE 8

A game of tariffs Simmering resentments reveal themselves in the trade war Pedro Rosselli A trade war consists of two countries increasing their protectionist measures against the other country which would lead to retaliatory protectionist measures such as extra taxes on goods produced in that country. This trade war consists of Japan and South-Korea - two industrial powerhouses with Japan having the 3rd biggest economy in the world and South Korea the 11th largest in the world. These could have consequences for the global economy which is already suffering from the trade war between China and the USA. All of this havoc could therefore potentially lead to the whole world suffering and cause a recession in the modern world.

These trade wars signal what is going to happen in the future as more and more countries increase protectionism to protect domestically made products competing which foreign goods and services.

There is history between these two countries as in the past from 1910 to 1945 Japan ruled over

South Korea. These war wounds were reopened in early October where the Korean Supreme Court made the decision in which it allowed people to sue Japanese companies for wartime damages with Japan already paying $500 million in aid to help boost their relationship via the 1965 agreement. Many Japanese countries refused to comply with the order and this increased tensions even further. After the decision was made Japan retaliated with an increase in control of the exports of three chemicals which include hydrogen fluoride, fluorinated polyamides and photoresists. These chemicals are essential to create semiconductors which are a key material and are in most electric devices. With the tightened control of the exports of those chemicals it meant Japanese companies would need a license to export any of the three chemicals to South Korea, this process could take as long as 90 days which could cause a serious delay in the production of semiconductors in 24

Korea which would have a serious effect on the economy as semiconductors are the main exports of South Korea. Japan said that the restrictions of its exports were due to them believing they were leaking sensitive information to NorthKorea without providing details. As expected South Korea denied these accusations and after this Japan imposed another policy adding to the trade war which was removing Korea from the “white list” which contains Japan’s trusted trading partners whilst Korea have taken Japan off their preferred trading partners and downgraded them to a new category of downgraded countries. This would delay all types of exports to South Korea such as household electrics and auto parts and would slow down the production of multiple products causing the economic growth to slow down in both countries. This has hit South Korea where it hurts most as both Samsung and SK Hynix are situated in South Korea in which they combined produce two thirds of the world’s memory chip production as three companies in Japan which are called Showa Denko, Shin-Etsu Chemical and JSR corporation in which they produce 90% of the world’s Photoresist and Fluorinated polyimide which are both used for OLED and LCD displays which are both used to produce mobile phones. However this would also affect Japan as they too were dependent on exporting to Korea these chemicals. A decrease in quantity of these chemicals supplied would cause a decrease in the total of these chemicals sold and therefore decrease revenue

which leads to a decrease in tax revenue for Japan.

Both countries will be highly affected by the trade war that has quickly affected it however both countries will be affected differently in the short run and the long run.

This is because in the short run South Korea’s economy would be worse off than Japan’s however as time goes on experts have predicted that Japan will be worse off in the long run. This is because South KoA decrease in chemical sales would rea’s exports consist of 25% of eximpact tax revenues in Japan. ports are chip making sector accounts. In the short run there will be However, in the long run for some shortages of the three prodSouth Korea as they have both ucts causing the delay in production dropped each other from their preof the electronic chips and other ferred trading list of partners would products. These would short term look to resource these chemicals raise the prices up for these products from somewhere else more reliable as there would be a decrease in supand trustworthy then Japan. Thereply of these chemicals causing a shift fore, Japan will lose some of its busito the left in aggregate supply. This ness to South Korea as they look to would cause a decrease in the quanfind new sources and trading parttity of smartphones demanded leadners who have access to those cheming to big companies decreasing in icals therefore they will have to look for new potential buyers to sell these products. The results of the decrease in exports can be clearly seen by the value of hydrogen fluoride being transported as exports from Japan to South Korea have decreased by 99.4% to roughly about $34175.

These results have shown the hostiliThe trade war is impacting the ty towards each other as sales dwinproduction of smartphones. dle down and the South Korean government have since pledged to invalue and total sales per year. This is vest in developing raw materials of important as Samsung is expected to the three chemicals. However both pay 16.8 trillion won or roughly $15 of these countries will not back billion dollars’ worth in tax with down as nearly 7/10 people in Japan about 70% going towards South Kosupported its decision to place the rea. This would equate to 11.76 biltrade restrictions on tech and with lion dollars in tax towards the South more than 5/10 people in Korea supKorean government. This would porting its decisions to retaliate. So, therefore harm South Korea’s collecwith these figures neither country tion in tax and affect its plans espewill back down and reduce the procially as South Korea have drafted its tectionism of their own country, most aggressive budget spending therefore the trade war will continue plan since 2008. Also, in the short for a long time.

25

run Japan will be affected heavily as boycotts of Japanese beer and cars have taken place and as a result sale have decreased heavily in South Korea. This is seen by a severe drop of Japanese beer to South Korea as exports have dropped by 99.9% since last September just $5400 worth of beer was shipped this September compared to $7.2 million last September.

This trade war will strengthen China’s position in the world’s economy as two of the United States main allies in Japan have fallen out for each other. China will also benefit as they began to increase production of its microchip industry as it planned to rely less on foreign goods after the trade war. So, China could be able to fill the gap and supply new countries who look to produce computer and mobile phone chips as there is disruption to the supply chain because of Japan’s new policies.

Overall, I think that both countries are losing out in both the short run and long run leading to the question of why does the trade war exist.

The most likely reason is because of the historical tensions these countries have had in the past as both countries do not want to back down and be publicly humiliated/lose pride. This has led to a very bitter and harmful trade war.

Finance

WHITONOMICS ISSUE 8

is cryptocurrency now?

Dead or alive The state of cryptocurrency after a decade is uncertain Josh Das It has been almost a decade since the release of the first cryptocurrency – Bitcoin, securing its status as the leading digital currency with market capitalization that is 7 ½ times greater than its ‘competitor’ Ethereum. Cryptocurrencies are digital/virtual systems of money that are decentralized and encrypts its security; thus, its infamous emergence which was first viewed as a peculiar hobby rather than a reliable return of investment, was not that surprising in hindsight. Undermined at the start of its development, later it was found to have impacted the international economy massively as it enables more global transactions, suited to carry out illegal activities (like money laundering or tax evasion), forges new markets and even posed a threat to close banks. Approximately 1.7 billion people do not have bank accounts, so it is easier to use cryptocurrency as a medium of carrying out transactions in their daily lives due to the simple

peer-to-peer settlement system – leading to faster transaction speeds.

It can be argued that these cryptocurrencies had made its dent in the economy at the end of 2017 and start of 2018 because the biggest oligopolies of the industry had reached their peak value. Most notably, Bitcoin had reached an exchange rate of £12861.60 which was equivalent to 1 BTC (Bitcoin) (Figure 1) and Ethereum had an exchange rate of £975.32 which was equivalent to 1 ETH (Ether) during this period. Currently, the number of conversations about Bitcoin and altcoins seem to pale in comparison compared to previous years – so where

Firstly, Bitcoin has taken a major toll in its exchange rate as its peak value in December 2017 was £12861.60 whereas in October 2019 1 BTC (Bitcoin) was valued at £4893.24 – this is approximately a 62% depreciation. In October of 2019 (when this article was written), it was forecasted that in the coming months of November and December the value of BTC would keep depreciating – as low as £2525.77 which is 80% in depreciation from its peak value. The “Great Crypto Crash” (also called the “Bitcoin Crash”) in the early months of 2018 was caused by several factors. Factors included mass amounts of BTC being sold at once and a market scare. The latter occurred as holders of Bitcoin sold them for low prices to avoid high depreciated values of BTC, hence increasing selling pressure and decreasing the value of the BTC as lower prices meant that the Bitcoins would sell quicker. During this month at the time of writing this article, in October 2019, Bitcoin’s prices has devalued by £1641.34 as on September 16th its price was £8236.61 whereas on October 16th its price was £6595.27 – a 20% depreciation.

Prospects of Bitcoin increasing in value do not seem likely now,

From September to October of 2019, Bitcoin depreciated by 20%.

26

mainly due to the lack of conversation as its tweet volume is currently at 15.737k compared to having 155.6k tweets per day in early December in 2017. The unprecedented boom of Bitcoin had a domino effect on altcoins. Subsequently, Ethereum also experienced a downturn in its price and market capitalization. The apex of Ethereum’s price had reached £975.32 for 1 ETH (Ether) during its boom period in late December. Its downturn had shown a 38% depreciation from its peak price – dipping as low to £603.18 in late

not plummeted as much as Bitcoin’s prices have but it does have a range of £24.08 which is 15% in depreciation compared to Bitcoin which was 20%.

February which was a decrease of 57%. This can be explained (like with the other cryptocurrencies) by the Great Crypto Crash and partly to do with the increase in altcoins as the market is very saturated. Litecoin Litecoin is a rising altcoin that can be indistinguishable from altcoin has recently been climbing up the but it does fit to a certain niche of ranks due to its appealing transacpeople who typically value Litecoin’s tion confirmation time (which is 2 ½ high circulating supply than all other minutes compared to Bitcoin’s which criteria. Litecoin has followed a simiis 10 minutes), cheaper transaction lar trend to other cryptocurrencies period and the ‘scrypt’ algorithm as its value had dipped on the 23rd of that enables mining to be possible September to the 25th, followed by on less powerful PCs – these are a fluctuations with an overall negative couple of examples of advantages trend – measured from the 16th September to the 16th October.

Ethereum’s downturn was a 38% depreciation from its peak price.

February.

Miko Matsumura, a cofounder of Evercoin, pointed out that “the market was clearly overheated” and “the only fear in the market was the fear of missing out … many rushed into the market, resulting in price inflation” (in its boom period) so the plunge occurred to stabilize the mar-

that Litecoin has compared to other cryptocurrencies. This altcoin was relatively unknown during its initial years as its price was £1.97 in late October 2015, equalling 1 LTC (Litecoin). The boom of Bitcoin in October 2017 to February 2018 affected Litecoin’s price heavily as it had risen to a value of £244.55 –an

Litecoin is a rising altcoin due to its appealing transaction confirmation time.

ket. Ethereum’s price had fluctuated in October 2019 increasingly compared to previous months – it’s clear that the overall trend had a strong negative correlation. Its prices have

increase of 99% from its price value in 2015. Like other altcoins, its staggering increase had terminated in the following month February, dipping to a price of £104.97 in late 27

The future of cryptocurrencies over the years seems to be very unpredictable as forecasts from sources like walletinvestor.com or poundf.co.uk suggests that there will be a minor boom period during the middle of 2020, then the prices will stagnate until early 2021 arrives.

This could occur, however, investing in cryptocurrencies can involve luck and great predicting skills as they are generally very volatile – hence, it has lots of unforeseeable crashes and boom periods can be caused by many factors. For example, an increased acceptance for cryptocurrencies in countries (like Venezuela’s Petromoneda) can decrease the value of the national currency, also causing a boom period to occur. Another example is when major speculators invest into a small cryptocurrency with low market capitalization because an immense trade deal can highly influence the currency’s price value – this would lead to a crash as high market capitalisation leads to less significant influence from major traders.

Finance

WHITONOMICS ISSUE 8

The myth of the perfectly competitive labour market As new evidence has arisen, the case for a high minimum wage has become stronger and stronger, casting doubt on traditional models of the labour market David Lawrence Once upon a time, if you asked academic economists their opinion on the minimum wage the consensus would be pretty clear; they lead to higher unemployment, higher prices and -perhaps worst of all- lower economic growth. Indeed, this opinion still holds sway, with 74% of economists opposing a $15 per hour minimum wage in the US. The above depicts a typical However, new evidence seems to supply and demand diagram to repcontradict claims minimum wages resent the market for low skilled decrease employment. labour. W1 and E1 are the equilibrium values for wage rate and emThe foremost two economists ployment levels, respectively, meanwho began to find evidence reing the quantity demanded and butting traditional claims about quantity supplied of labour are wage floors were Alan Kreuger and equal at W1 and there is no excess David Card. In 1992, New Jersey unemployment. Superficially, the raised its minimum wage to $5.05 implementation of a minimum wage per hour, whereas neighbouring raises wages from W1. However, the Pennsylvania raised it marginally to graph shows that at the new wage $4.25. Card and Kreuger decided to rate, more people are willing and exploit the opportunity for a natural able to work, raising the quantity of experiment and measured changes labour supplied to ES; and at the in employment levels along the bornew rate, it costs more for firms to der. What they found surprised employ workers so they lay off marthem- employment actually fell in ginally productive workers, decreasPennsylvania compared to New Jering the quantity of labour demanded sey, casting doubt on traditional to ED. The difference between ED models of the labour market. and ES represents unemployment Since then, there has been an caused by the minimum wage. abundance of academic debate on Yet the findings of Card and the issue. However, one thing seems Kreuger, as well as many economists clear- it cannot be guaranteed that since, seem to dispute this concluminimum wages will always cause sion. And when economic models unemployment. And this points toare wrong, its usually because one wards the fact that the neoclassical of the assumptions they are predimodel of the labour market may not cated on do not hold true. In this be wholly accurate. case, economists are especially interested in one critical assumption 28

the neoclassical model makes- that of perfect competition.

To explain why a high level of competition is an important assumption in the labour market, one first has to explain why firms pay for labour. The answer is simple- firms are willing to pay wages to workers so they give up leisure time to produce goods. In general, a firm will never pay a worker a cent more than the worker is worth to them on the long run, and a worker’s worth to a firm is called the marginal physical product of labour (the increase in output occurred from hiring another unit of labour). However, if a firm pays a worker less than their marginal physical product of labour then, assuming some competition, another firm can come and offer this worker slightly more, confident the arrangement is profitable as long as the higher wage is lower than the marginal physical product of labour.

In conditions of perfect competition, eventually the worker’s wage is bid up until it is equal to the marginal physical product of labour.

And this explains why minimum wages are bad under a neoclassical framework. The invisible hand of the market has found an optimum wage. If well-meaning politicians try to increase the wage directly instead of worker productivity, then firms have to fire marginally productive workers. Because there are diminishing returns to labour, the firm does not fire every worker, but many have to be made

Labour is unlike the other factors of production as it is sentient.

redundant.

Yet here we see why competition is such an important part of the model. If there were no other competing firms, then the firm would not have to pay the marginal physical product of labour- they would just have to pay enough that a potential employee would rather work than be unemployed. Such a scenario is called monopsony- when there is only one buyer of a good (in this case labour).

It is obvious that the claim there is no competition for lowskilled labour is absurd. The geographic monopsonies of the 19th century- small towns where the only employer was the local mine, for instance- where killed by the advent of the car, and the ability to travel longer distances for work it gave people. But certain realities of what it means to be an employee perhaps rebut claims that there is enough competition that workers are paid wages reasonably close to their marginal product.

like machines or buildings, workers have preferences about where they work. This means that, even if another firm offers a higher wage, they may not opt for the new job as they prefer their current workplace. In more technical terms, workplaces are “imperfectly substitutable” and hence the effects of competition in raising wages are diluted. Also, if workers feel they are underpaid, in many cases they cannot just leave. It takes time to search for a job, and in the interim the effects of unemployment can be stressful and depressing. Also, even though labour mobility has been improved, there are still notable “travel costs” when workplaces are far away, both explicitly monetary (the cost of fuel or train tickets) or in terms of the opportunity cost of time spent travelling, meaning that workers may not accept higher wages from firms farther away. These factors- called “search frictions”- inhibit competition and create a scenario that resembles monopsony in the form of an imperfectly competitive labour market.

In general, labour is not like It is important to recognise the other factors of production for that this hypothesis is not close to one simple reason; it is sentient. Un- being universally accepted. Howev29

er, if true, it brings up more corollaries than just a higher minimum wage not decreasing employment. If competition cannot ensure that workers are paid the value of their labour, then it might be that trade unions and collective bargaining are an effective response rather than a general nuisance. Indeed, the proportion of GDP going to labour in the UK fell by 6% of the total from 1970 to 2014, with the decline of unionisation cited as a leading cause. Nonetheless, whether monopsony is an extensive factor or not, it is important that policy makers ensure that they do not take a perfectly competitive labour market as an axiom when analysing ways to ensure workers are paid their fair share.

Bibliographies

30

Information sources 2018 Annual Report. (2018). [ebook] Shanghai: Baoshan Iron & Steel Co., Ltd., pp.148, 154, 158. Available at: http://res.baowugroup.com/files/2019/07/02/5fdee415e3994b128ee0c48834d91464.pdf [Accessed 10 Nov. 2019].

(2019). easyJet :: Routesonline. [online] Routesonline.com. Available at: https://www.routesonline.com/ airlines/3452/easyjet/.

(2019). Thomas Cook: What went wrong at the holiday firm? BBC News. [online] 23 Sep. Available at: https:// www.bbc.co.uk/news/business-46452374.

Africa-oilweek.com. (2019). Africa Oil Week - Understanding Chinese investment in African oil & gas | Africa Oil Week. [online] Available at: https://www.africa-oilweek.com/Articles/understanding-chinese-investment-inafrican-o [Accessed 21 Nov. 2019].

Anon, (2019). [online] Available at: https://www.liverpoolmuseums.org.uk/ism/slavery/africa/effect.aspx, [Accessed 21 Nov. 2019].

Au, K. (Mar 5 2018) Explaining the dip: what caused the recent cryptocurrency downturn, Available at: https:// www.forbes.com/sites/outofasia/2018/03/05/explaining-the-dip-what-caused-the-recent-cryptocurrencydownturn/#1913af405ccd [Accessed 16 Oct. 2019].

BBC News. (2019). Do Boris Johnson's tax and spending plans add up?. [online] Available at: https:// www.bbc.co.uk/news/uk-politics-49097133 [Accessed 5 Dec. 2019].

BBC News. (2018). Jacob Zuma - the survivor whose nine lives ran out. [online] Available at: https://www.bbc.co.uk/ news/world-africa-17450447 [Accessed 14 Dec. 2019].

BBC News. (2019). Who are the Guptas?. [online] Available at: https://www.bbc.co.uk/news/world-africa-22513410 [Accessed 14 Dec. 2019].

BBC News. (2016). Zuma 'sorry' over home upgrade scandal. [online] Available at: https://www.bbc.co.uk/news/ world-africa-35943941 [Accessed 14 Dec. 2019].

Bharadwaj, P (2006). BRIC Countries – A Competitive Analysis. Journal of Global Competitiveness, [online] Volume 14(2), p. 52. Available at: http://connection.ebscohost.com/c/editorials/24488562/bric-countries-competitiveanalysis [Accessed 16 October. 2019].

Bhaskar, V., Manning, A. and To, T. (2002). Oligopsony and Monopsonistic Competition in Labor Markets. Journal of Economic Perspectives, 16(2), pp.155-174.

BitInfoCharts. (2014). Bitcoin Tweets chart. [online] Available at: https://bitinfocharts.com/comparison/bitcointweets.html [Accessed 16 Oct. 2019].

Brignall, M. (2019). Thomas Cook: what can we learn about booking holidays? [online] the Guardian. Available at: https://www.theguardian.com/business/2019/sep/28/thomas-cook-booking-holidays- travel-hotels-flights Business Insider. (2019). South Korea kicked up its trade war with Japan by making it 3 times as hard for companies to export goods there. [online] Available at: https://www.businessinsider.com/south-korea-japan-trade-warescalates-japan-downgraded-as-partner-2019-9?r=US&IR=T?utm_source=copylink&utm_medium=referral&utm_content=topbar [Accessed 18 Sep. 2019].

Business Insider. (2019). South Koreans are canceling vacations to Japan and boycotting its beer in a trade war more bitter than Trump's feud with China. [online] Available at: https://www.businessinsider.com/south- koreans-boycott-japan-products-cancel-vacations-over-trade-war-2019-9?r=US&IR=T?utm_source=copylink&utm_medium=referral&utm_content=topbar [Accessed 27 Sep. 2019].

Cai, J. (2019). Why China’s subsidised SOEs anger US, Europe – and its own private firms. [online] South China Morning Post. Available at: https://www.scmp.com/news/china/diplomacy/article/2184707/why-chinas-subsidisedstate-owned-enterprises-anger-us-europe [Accessed 10 Nov. 2019].

Card, David; Krueger, Alan B. (1994). "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania". American Economic Review. 84 (4): 772–793. JSTOR 2118030

31

Information sources (Contd.)

ChinaPower Project. (2018). How is China's energy footprint changing? | ChinaPower Project. [online] Available at: https://chinapower.csis.org/energy-footprint/ [Accessed 21 Nov. 2019].

CNBC. (2019). US imposes new anti-dumping duties on Chinese mattresses, beer kegs. [online] Available at: https:// www.cnbc.com/2019/05/30/us-imposes-new-anti-dumping-duties-on-chinese-mattresses-beer-kegs.html [Accessed 10 Nov. 2019].

CoinMarketCap. (n.d.). Top 100 Cryptocurrencies by Market Capitalization. [online] Available at: https:// coinmarketcap.com/ [Accessed 16 Oct. 2019].

Colvin, G. (2019). It’s China’s World. [online] Fortune. Available at: https://fortune.com/longform/fortune-global500-china-companies/ [Accessed 10 Nov. 2019].

Competitive Enterprise Institute. (2019). What Do Economists Think about the Minimum Wage?. [online] Available at: https://cei.org/blog/what-do-economists-think-about-minimum-wage [Accessed 14 Nov. 2019].

Duncan, P., Voce, A., Smears, L., Watts, J. and Hulley-Jones, F. (2019). Guardian climate score: how did your MP do?. [online] the Guardian. Available at: https://www.theguardian.com/environment/ng-interactive/2019/ oct/11/guardian-climate-score-how-did-your-mp-do [Accessed 5 Dec. 2019].

Eh.net. (2019). Monopsony in American Labor Markets. [online] Available at: http://eh.net/encyclopedia/ monopsony-in-american-labor-markets/ [Accessed 14 Nov. 2019].

Elgot, J. (2016). Jacob Zuma breached constitution over home upgrades, South African court rules. [online] the Guardian. Available at: https://www.theguardian.com/world/2016/mar/31/jacob-zuma-ordered-repay- upgrades-nkandla-home-south-african-state-funds [Accessed 14 Dec. 2019].

Employment Policies Institute. (2019). Employment Policies Institute | Survey of US Economists on a $15 Federal Minimum Wage. [online] Available at: https://www.epionline.org/studies/survey-of-us-economists-on-a-15federal-minimum-wage-2/ [Accessed 14 Nov. 2019].

Encyclopedia Britannica. (2019). Treaty of Rome | Europe [1957]. [online] Available at: https:// www.britannica.com/event/Treaty-of-Rome [Accessed 3 Oct. 2019].

En.m.wikipedia.org. (n.d.). Nkandla homestead. [online] Available at: https://en.m.wikipedia.org/wiki/ Nkandla_homestead [Accessed 14 Dec. 2019].

European Studies. (2019). The Great European Union Chocolate Battle. [online] Available at: https:// europe.wisc.edu/outreach-opportunities/european-union-chocolate-simulation/great-european-union- chocolatebattle/ [Accessed 5 Dec. 2019]. e.V., T. (2019). Citizens speak out about corruption in Africa. [online] www.transparency.org. Available at: https:// www.transparency.org/news/feature/citizens_speak_out_about_corruption_in_africa [Accessed 21 Nov. 2019].

Export.gov. (2019). China - Oil and Gas | export.gov. [online] Available at: https://www.export.gov/article?id=China -Oil-and-Gas [Accessed 21 Nov. 2019].

Ft.com. (2019). Graft under Jacob Zuma cost South Africa $34bn, says Ramaphosa | Financial Times. [online] Available at: https://www.ft.com/content/e0991464-ee79-11e9-bfa4-b25f11f42901 [Accessed 14 Dec. 2019].

Ft.com. (2019). India scraps Kashmir’s special status and imposes lockdown | Financial Times. [online] Available at: https://www.ft.com/content/cdb6128c-b744-11e9-8a88-aa6628ac896c [Accessed 5 Dec. 2019].

Ft.com. (2019). Pakistan halts train service to India as Kashmir crisis grows | Financial Times. [online] Available at: https://www.ft.com/content/d739380c-b9c4-11e9-8a88-aa6628ac896c [Accessed 5 Dec. 2019].

Ft.com. (2019). Zuma told to repay R7.8m spent on estate in ‘Nkandlagate’ scandal | Financial Times. [online] Available at: https://www.ft.com/content/df7cd1b6-3c83-11e6-8716-a4a71e8140b0 [Accessed 14 Dec. 2019].

Google.co.uk. (2019). Brexit: A brief history of Britain and the EU - CBBC Newsround. [online] Available at: https:// www.google.co.uk/amp/s/www.bbc.co.uk/newsround/amp/50166269 [Accessed 5 Dec. 2019].

32

Information sources (Contd.)

Gray, A. and Edgecliffe-Johnson, A. (2019). US companies hunt for loopholes to beat China tariffs | Financial Times. [online] Ft.com. Available at: https://www.ft.com/content/5cd049c0-9467-11e9-b7ea-60e35ef678d2 [Accessed 10 Nov. 2019].

Green, B., environment', &., Policy, M. and news, M. (2019). 'Pretty grim': Greener UK slam Boris Johnson's Brexit deal as 'bad for the environment'. [online] http://www.businessgreen.com. Available at: https:// www.businessgreen.com/bg/analysis/3082246/pretty-grim-greener-uk-slam-boris-johnsons-brexit-deal-as-badfor-the-environment [Accessed 5 Dec. 2019].

Henri-Louis VEDIE, I. (2017). Chinese mining investments in Africa. [online] Policy Center for the New South. Available at: https://www.policycenter.ma/publications/chinese-mining-investments-africa [Accessed 21 Nov. 2019].

Holton, K. (2019). Thomas Cook collapses: Why and what happens now? [online] U.S. Available at: https:// www.reuters.com/article/us-thomas-cook-grp-investment-explainer/thomas-cook-collapses-why-and- whathappens-now-idUSKBN1W804O.

India Today. (2019). Kashmir clampdown: Apple crops rot as farmers struggle to sell produce. [online] Available at: https://www.indiatoday.in/india/story/kashmir-apple-crop-farmers-article-370-1597670-2019-09-10 [Accessed 5 Dec. 2019].

Investopedia. (2019). Upstream. [online] Available at: https://www.investopedia.com/terms/u/upstream.asp [Accessed 21 Nov. 2019].

ITV News. (2019). Brexit timeline: From 2013 referendum promise to Boris Johnson's deal. [online] Available at: https://www.itv.com/news/2019-10-17/brexit-timeline-from-2013-referendum-promise-to-a-2019-great-deal/ [Accessed 5 Dec. 2019].

Krar, P. and Sally, M. (2019). How the current security arrangement in Kashmir is affecting its fruit trade. [online] The Economic Times. Available at: https://economictimes.indiatimes.com/news/economy/agriculture/how-thecurrent-securityarrangement-in-kashmir-is-affecting-its-fruit-trade/articleshow/70597597.cms [Accessed 5 Dec. 2019].

Leung, N. (2019). China Brief: The state of the economy. [online] McKinsey & Company. Available at: https:// www.mckinsey.com/featured-insights/china/china-brief-the-state-of-the-economy [Accessed 10 Nov. 2019].

McKinley, T. (2018). ‘BRICS to Play a Leading Role in Driving Future Global Economic Growth’. [online] Institute for New Economic Thinking. Available at: https://www.ineteconomics.org/perspectives/blog/brics-to-play-a-leading -role-in-driving-future-global-economic-growth [Accessed 16 October. 2019].

Mkentane, L. (2018). Jacob Zuma: The economic timeline | IOL Business Report. [online] Iol.co.za. Available at: https://www.iol.co.za/business-report/economy/jacob-zuma-the-economic-timeline-13302453 [Accessed 14 Dec. 2019].

Movchan, A. (2015). ‘5 factors limiting the impact of the BRICS nations’. [online] World Economic Forum. Available at: https://www.weforum.org/agenda/2015/07/5-factors-limiting-the-impact-of-the-brics-nations/ [Accessed 16 October. 2019].

MP, M. (2019). The appalling handling of the Lisbon Treaty sowed the seeds of Brexit | BrexitCentral. [online] BrexitCentral. Available at: https://brexitcentral.com/mark-francois-mp-appalling-handling-lisbon-treaty-sowedseeds-brexit/ [Accessed 5 Dec. 2019].

News24. (2018). Flashback: 5 of Zuma's biggest scandals. [online] Available at: https://m.news24.com/SouthAfrica/ News/flashback-5-of-zumas-biggest-scandals-20180213 [Accessed 14 Dec. 2019].

Oecd.org. (2019). [online] Available at: https://www.oecd.org/g20/topics/employment-and-social-policy/The- Labour-Share-in-G20-Economies.pdf [Accessed 14 Nov. 2019].

Oec.world. (2019). OEC: The Observatory of Economic Complexity. [online] Available at: https://oec.world/en/ [Accessed 21 Nov. 2019].

Polgreen, L. (2013). Group of Emerging Nations Plans to Form Development Bank. The New York Times, [online] Available at: https://www.nytimes.com/2013/03/27/world/africa/brics-to-form-development-bank.html [Accessed 16 October. 2019].

33

Information sources (Contd.)

Pruitt, S. (2019). The History Behind Brexit. [online] HISTORY. Available at: https://www.google.co.uk/amp/s/ www.history.com/.amp/news/the-history-behind-brexit [Accessed 5 Dec. 2019].

Reporter, S. (2018). To what end have Jacob Zuma's blunders affected the economy? | IOL Business Report. [online] Iol.co.za. Available at: https://www.iol.co.za/business-report/economy/to-what-end-have-jacob-zumas- blunders-affected-the-economy-13238650 [Accessed 14 Dec. 2019].

Santandertrade.com. (2019). Gobonese economic outline - Santandertrade.com. [online] Available at: https:// santandertrade.com/en/portal/analyse-markets/gabon/economic-outline? actualiser_id_banque=oui&id_banque=41 [Accessed 5 Dec. 2019].

States, O. (2019). Apple farmers of Kashmir a worried lot. [online] The Hindu. Available at: https:// www.thehindu.com/news/national/other-states/apple-farmers-of-kashmir-a-worriedlot/article29225048.ece [Accessed 5 Dec. 2019].

Stearns, J. (2019). China Hit by EU Tariffs as High as 66%. [online] Bloomberg. Available at: https:// www.bloomberg.com/news/articles/2019-10-10/china-hit-by-european-union-tariffs-on-steel-road-wheels [Accessed 10 Nov. 2019].

Steinbock, D. (2018). Brics on right track to the future. The Telegraph, [online] Available at: https:// www.telegraph.co.uk/china-watch/business/brics-summit-2018/ [Accessed 16 October. 2019].

Suljovic, D. (2018). ‘The phenomenal growth of the BRICS nations’ AB article. [online] ACCA Global. Available at: https://www.accaglobal.com/lk/en/member/member/accounting-business/2018/11/insights/brics-nations.html [Accessed 16 October. 2019].

The Economist, (2018). ‘Has BRICS lived up to expectations?’ [online] Available at: https://www.economist.com/ free-exchange/2018/07/27/has-brics-lived-up-to-expectations [Accessed 16 October. 2019].

The Independent. (2019). Boris Johnson moves to scrap Brexit environment safeguards to get deal with Trump. [online] Available at: https://www.independent.co.uk/news/uk/politics/boris-johnson-brexit-environment-rulestrump-trade-deal-a9143221.html [Accessed 5 Dec. 2019].

The Labour Party. (2019). It's time for real change. [online] Available at: https://labour.org.uk/manifesto/healthcare -for-all/ [Accessed 5 Dec. 2019].

Theoilandgasyear.com. (2019). Gabon. [online] Available at: https://www.theoilandgasyear.com/market/ gabon/ [Accessed 5 Dec. 2019].

Time. (2019). https://time.com. [online] Available at: https://time.com/5691631/japan-south-korea-trade-war/ [Accessed 3 Oct. 2019].

Tradingeconomics.com. (n.d.). South Africa GDP Growth Rate | 2019 | Data | Chart | Calendar | Forecast. [online] Available at: https://tradingeconomics.com/south-africa/gdp-growth [Accessed 14 Dec. 2019].

Tradingeconomics.com. (2019). South Africa Inflation Rate | 2019 | Data | Chart | Calendar | Forecast. [online] Available at: https://tradingeconomics.com/south-africa/inflation-cpi [Accessed 14 Dec. 2019].

Tradingeconomics.com. (2019). South Africa Unemployment Rate | 2019 | Data | Chart | Calendar | Forecast. [online] Available at: https://tradingeconomics.com/south-africa/unemployment-rate [Accessed 14 Dec. 2019].

Travis, A. (2019). Crime rise is biggest in a decade, ONS figures show. [online] the Guardian. Available at: https:// www.theguardian.com/uk-news/2017/jul/20/official-figures-show-biggest-rise-crime-in-a-decade [Accessed 5 Dec. 2019].

Treasury.gov.za. (n.d.). [online] Available at: http://www.treasury.gov.za/documents/national%20budget/2019/ review/Chapter%202.pdf [Accessed 14 Dec. 2019].

Twitter.com. (2019). Donald J. Trump (@realDonaldTrump) on Twitter. [online] Available at: https://twitter.com/ realDonaldTrump [Accessed 12 Dec. 2019].

U.S. (2019). Kenya opens $1.5 billion Chinese-built railway linking Rift Valley town and Nairobi. [online] Available at: https://www.reuters.com/article/us-kenya-railway/kenya-opens-1-5-billion-chinese-built-railway-linking-riftvalley-town-and-nairobi-idUSKBN1WV0Z0 [Accessed 21 Nov. 2019].

34

Information sources (Contd.)

Voice of America. (2019). China Invests $16 Billion in Nigeria's Oil Sector. [online] Available at: https:// www.voanews.com/africa/china-invests-16-billion-nigerias-oil-sector [Accessed 21 Nov. 2019].

Walker, P. (2019). Boris Johnson unveils ÂŁ1.2bn for climate and endangered species. [online] the Guardian. Available at: https://www.theguardian.com/politics/2019/sep/22/boris-johnson-unveils-12bn-for-climate-and- endangered-species [Accessed 5 Dec. 2019].

Wen, H. (2018). Economic performance of State-owned and State-holding enterprises from Jan to Apr in 2018. [online] State-owned Assets Supervision and Administration Commission of the State Council. Available at: http://en.sasac.gov.cn/2018/05/25/c_4.htm [Accessed 10 Nov. 2019].

Workman, D. (2019). Top 15 Crude Oil Suppliers to China. [online] World's Top Exports. Available at: http:// www.worldstopexports.com/top-15-crude-oil-suppliers-to-china/ [Accessed 21 Nov. 2019].

World Bank. (2019). Overview. [online] Available at: https://www.worldbank.org/en/country/gabon/ overview [Accessed 5 Dec. 2019].

World Factbook, C. (2019). Africa :: Gabon — The World Factbook - Central Intelligence Agency. [online] Cia.gov.

Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/gb.html [Accessed 5 Dec. 2019].

Wto.org. (2019). Arbitrator issues decision in Airbus subsidy dispute. [online] Available at: https:// www.wto.org/ english/news_e/news19_e/316arb_e.htm [Accessed 12 Dec. 2019].

Wto.org. (2019). World Trade Organization - Global trade. [online] Available at: https:// www.wto.org/ [Accessed 12 Dec. 2019]. (www.dw.com), D. (n.d.). South Africa's Jacob Zuma to stand trial for corruption | DW | 11.10.2019. [online] DW.COM. Available at: https://www.dw.com/en/south-africas-jacob-zuma-to-stand-trial-for-corruption/a50791510 [Accessed 14 Dec. 2019].

35

Illustration sources Alexandros Michailidis, (2019), Britain's Prime Minister Boris Johnson addresses a press conference during an European Union Summit at European Union Headquarters in Brussels, Belgium on Oct. 17, 2019. [ONLINE]. Available at: https://www.shutterstock.com/image-photo/britains-prime-minister-boris-johnson-addresses-1553561147 [Accessed 1 March 2020]. ambquinn, (2017), Oil Rig Platform [ONLINE]. Available at: https://pixabay.com/photos/oil-rig-oil-platform-oil-rig2205542/ [Accessed 11 February 2020].

Andreas Zeitler, (2018), Farnborough, UK - 07 18 2018: Flying display of a Boeing B737-8 MAX at the Farnborough International Airshow, UK [ONLINE]. Available at: https://www.shutterstock.com/image-photo/farnborough-uk07-18-2018-flying-1342357091 [Accessed 1 March 2020]. dbchandler, (2017), Sunset Refinery Industrial [ONLINE]. Available at: https://pixabay.com/photos/sunset-refineryindustrial-gas-oil-2165885/ [Accessed 11 February 2020].

Eisenmenger, (2015), Aircraft Airbus A380 [ONLINE]. Available at: https://pixabay.com/photos/aircraft-airbus-a380plane-flying-703908/ [Accessed 11 February 2020].

Emphyrio, (2019), Jeremy Corbyn Labour Politics [ONLINE]. Available at: https://pixabay.com/photos/jeremy-corbyn -labour-politics-4349940/ [Accessed 1 March 2020].

FelixMittermeier, (2017), Sumer Sunset Meadow [ONLINE]. Available at: https://pixabay.com/photos/summersunset-meadow-nature-2391348/ [Accessed 11 February 2020].

GDJ, (2016), Brics Brazil Russia [ONLINE]. Available at: https://pixabay.com/vectors/brics-brazil-russia-india-china1301745/ [Accessed 11 February 2020]. geralt, (2017), Trump President Usa [ONLINE]. Available at: https://pixabay.com/photos/trump-president-usaamerica-flag-2546104/ [Accessed 11 February 2020].

JAHuddleston, (2017), Steel Materials Raw [ONLINE]. Available at: https://pixabay.com/photos/steel-materials-rawchannel-metal-2839316/ [Accessed 11 February 2020]. julientromeur, (2019), Piggy Bank Money [ONLINE]. Available at: https://pixabay.com/illustrations/piggy-bankmoney-finance-save-4341888/ [Accessed 11 February 2020].

KarelienKriel, (2017), Money South Africa [ONLINE]. Available at: https://pixabay.com/photos/money-south-africanelson-mandela-2951142/ [Accessed 11 February 2020].

MarkoLovric, (2015), Work Chinese Industrial [ONLINE]. Available at: https://pixabay.com/photos/work-chineseindustrial-1000618/ [Accessed 11 February 2020]. matthiasboeckel, (2018), Plum Food Berries [ONLINE]. Available at: https://pixabay.com/photos/plum-food-berriesmany-nutrition-3214274/ [Accessed 11 February 2020].

PublicDomainPictures, (2013), Lab Research Chemistry [ONLINE]. Available at: https://pixabay.com/photos/labresearch-chemistry-test-217041/ [Accessed 11 February 2020].

Sun_Shine, (2017), SRINAGAR, INDIA - October 2017: Indian market. Fruit stall and biker passing by on motorcycle at Srinagar old town, Jammu and Kashmir, India [ONLINE]. Available at: https://www.shutterstock.com/imagephoto/srinagar-india-october-2017-indian-market-762929098[Accessed 2 March 2020].

TeroVesalainen, (2017), Brexit Britain Eu [ONLINE]. Available at: https://pixabay.com/illustrations/brexit-britain-euexit-british-2185266/ [Accessed 11 February 2020].

TeroVesalainen, (2017), Smarphone Screen Android [ONLINE]. Available at: https://pixabay.com/photos/ smartphone-screen-android-1957740/ [Accessed 11 February 2020 TheDigitalArtist, (2016), Article 50 Referendum Europe [ONLINE]. Available at: https://pixabay.com/illustrations/ article-50-referendum-europe-uk-1482533/ [Accessed 11 February 2020].

World Bank, (2018), External debt stocks, total (DOD, current US$) - South Africa [ONLINE]. Available at: https:// data.worldbank.org/indicator/DT.DOD.DECT.CD?locations=ZA [Accessed 7 March 2020].

36

Illustration sources (Contd.)

World Bank, (2019), Inflation, consumer prices (annual%) [ONLINE]. Available at: https://data.worldbank.org/ indicator/FP.CPI.TOTL.ZG [Accessed 15 November 2019].

World Bank, (2018), GDP growth (annual %) - South Africa, China, India, Russian Federation, Brazil[ONLINE]. Available at: https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2018&locations=ZA-CN-IN-RUBR&name_desc=false&start=2018&view=bar [Accessed 7 March 2020]. www_slon_pics, (2017), Flag China Brazil [ONLINE]. Available at: https://pixabay.com/photos/flag-china-brazilrussia-3036169/ [Accessed 11 February 2020].

Yahoo! Finance, (2019), BTC-GBP Interactive Stock Chart [ONLINE]. Available at: https://finance.yahoo.com/chart/ BTCGBP#eyJpbnRlcnZhbCI6ImRheSIsInBlcmlvZGljaXR5IjoxLCJjYW5kbGVXaWR0aCI6MTcuMjE1MTUxNTE1MTUxNTE1 LCJ2b2x1bWVVbmRlcmxheSI6dHJ1ZSwiYWRqIjp0cnVlLCJjcm9zc2hhaXIiOnRydWUsImNoYXJ0VHlwZSI6ImxpbmUi LCJleHRlbmRlZCI6ZmFsc2UsIm1hcmtldFNlc3Npb25zIjp7fSwiYWdncmVnYXRpb25UeXBlIjoib2hsYyIsImNoYXJ0U2N hbGUiOiJsaW5lYXIiLCJzdHVkaWVzIjp7InZvbCB1bmRyIjp7InR5cGUiOiJ2b2wgdW5kciIsImlucHV0cyI6eyJpZCI6InZvb CB1bmRyIiwiZGlzcGxheSI6InZvbCB1bmRyIn0sIm91dHB1dHMiOnsiVXAgVm9sdW1lIjoiIzAwYjA2MSIsIkRvd24gVm 9sdW1lIjoiI0ZGMzMzQSJ9LCJwYW5lbCI6ImNoYXJ0IiwicGFyYW1ldGVycyI6eyJ3aWR0aEZhY3RvciI6MC40NSwiY2h hcnROYW1lIjoiY2hhcnQifX19LCJwYW5lbHMiOnsiY2hhcnQiOnsicGVyY2VudCI6MSwiZGlzcGxheSI6IkJUQy1HQlAiLC JjaGFydE5hbWUiOiJjaGFydCIsInRvcCI6MH19LCJzZXRTcGFuIjp7fSwibGluZVdpZHRoIjoyLCJzdHJpcGVkQmFja2dyb3 VkIjp0cnVlLCJldmVudHMiOnRydWUsImNvbG9yIjoiIzAwODFmMiIsImV2ZW50TWFwIjp7ImNvcnBvcmF0ZSI6eyJka XZzIjp0cnVlLCJzcGxpdHMiOnRydWV9LCJzaWdEZXYiOnt9fSwiY3VzdG9tUmFuZ2UiOm51bGwsInJhbmdlIjp7fSwic3l tYm9scyI6W3sic3ltYm9sIjoiQlRDLUdCUCIsInN5bWJvbE9iamVjdCI6eyJzeW1ib2wiOiJCVEMtR0JQIn0sInBlcmlvZGlja XR5IjoxLCJpbnRlcnZhbCI6ImRheSIsInNldFNwYW4iOnt9fV19[Accessed 8 March 2020].

Yahoo! Finance, (2019), ETH-GBP interactive stock chart [ONLINE]. Available at: https://uk.finance.yahoo.com/ chart/ETH-GBP?p=ETHGBP#eyJpbnRlcnZhbCI6Im1vbnRoIiwicGVyaW9kaWNpdHkiOjEsImNhbmRsZVdpZHRoIjoxNi41MjcyNzI3MjcyNzI3 MjcsInZvbHVtZVVuZGVybGF5Ijp0cnVlLCJhZGoiOnRydWUsImNyb3NzaGFpciI6dHJ1ZSwiY2hhcnRUeXBlIjoibGluZSI sImV4dGVuZGVkIjpmYWxzZSwibWFya2V0U2Vzc2lvbnMiOnt9LCJhZ2dyZWdhdGlvblR5cGUiOiJvaGxjIiwiY2hhcnRT Y2FsZSI6ImxpbmVhciIsInBhbmVscyI6eyJjaGFydCI6eyJwZXJjZW50IjoxLCJkaXNwbGF5IjoiRVRILUdCUCIsImNoYXJ0T mFtZSI6ImNoYXJ0IiwidG9wIjowfX0sInNldFNwYW4iOnt9LCJsaW5lV2lkdGgiOjIsInN0cmlwZWRCYWNrZ3JvdWQiO nRydWUsImV2ZW50cyI6dHJ1ZSwiY29sb3IiOiIjMDA4MWYyIiwiZXZlbnRNYXAiOnsiY29ycG9yYXRlIjp7ImRpdnMiOn RydWUsInNwbGl0cyI6dHJ1ZX0sInNpZ0RldiI6e319LCJzeW1ib2xzIjpbeyJzeW1ib2wiOiJFVEgtR0JQIiwic3ltYm9sT2Jq ZWN0Ijp7InN5bWJvbCI6IkVUSC1HQlAifSwicGVyaW9kaWNpdHkiOjEsImludGVydmFsIjoibW9udGgiLCJzZXRTcGFuI jp7fX1dLCJjdXN0b21SYW5nZSI6bnVsbCwic3R1ZGllcyI6eyJ2b2wgdW5kciI6eyJ0eXBlIjoidm9sIHVuZHIiLCJpbnB1dH MiOnsiaWQiOiJ2b2wgdW5kciIsImRpc3BsYXkiOiJ2b2wgdW5kciJ9LCJvdXRwdXRzIjp7IlVwIFZvbHVtZSI6IiMwMGIw NjEiLCJEb3duIFZvbHVtZSI6IiNGRjMzM0EifSwicGFuZWwiOiJjaGFydCIsInBhcmFtZXRlcnMiOnsid2lkdGhGYWN0b3Ii OjAuNDUsImNoYXJ0TmFtZSI6ImNoYXJ0In19fX0%3D[Accessed 7 March 2020].

Yahoo! Finance, (2019), LTC-GBP interactive stock chart [ONLINE]. Available at: https://uk.finance.yahoo.com/ chart/LTCGBP#eyJpbnRlcnZhbCI6Im1vbnRoIiwicGVyaW9kaWNpdHkiOjEsImNhbmRsZVdpZHRoIjoxNy40MjQyNDI0MjQyND I0MjYsInZvbHVtZVVuZGVybGF5Ijp0cnVlLCJhZGoiOnRydWUsImNyb3NzaGFpciI6dHJ1ZSwiY2hhcnRUeXBlIjoibGluZ SIsImV4dGVuZGVkIjpmYWxzZSwibWFya2V0U2Vzc2lvbnMiOnt9LCJhZ2dyZWdhdGlvblR5cGUiOiJvaGxjIiwiY2hhcn RTY2FsZSI6ImxpbmVhciIsInBhbmVscyI6eyJjaGFydCI6eyJwZXJjZW50IjoxLCJkaXNwbGF5IjoiTFRDLUdCUCIsImNoYX J0TmFtZSI6ImNoYXJ0IiwidG9wIjowfX0sInNldFNwYW4iOnt9LCJsaW5lV2lkdGgiOjIsInN0cmlwZWRCYWNrZ3JvdWQ iOnRydWUsImV2ZW50cyI6dHJ1ZSwiY29sb3IiOiIjMDA4MWYyIiwiZXZlbnRNYXAiOnsiY29ycG9yYXRlIjp7ImRpdnMi OnRydWUsInNwbGl0cyI6dHJ1ZX0sInNpZ0RldiI6e319LCJzeW1ib2xzIjpbeyJzeW1ib2wiOiJMVEMtR0JQIiwic3ltYm9 sT2JqZWN0Ijp7InN5bWJvbCI6IkxUQy1HQlAifSwicGVyaW9kaWNpdHkiOjEsImludGVydmFsIjoibW9udGgiLCJzZXRT cGFuIjp7fX1dLCJjdXN0b21SYW5nZSI6bnVsbCwic3R1ZGllcyI6eyJ2b2wgdW5kciI6eyJ0eXBlIjoidm9sIHVuZHIiLCJpbn B1dHMiOnsiaWQiOiJ2b2wgdW5kciIsImRpc3BsYXkiOiJ2b2wgdW5kciJ9LCJvdXRwdXRzIjp7IlVwIFZvbHVtZSI6IiMw MGIwNjEiLCJEb3duIFZvbHVtZSI6IiNGRjMzM0EifSwicGFuZWwiOiJjaGFydCIsInBhcmFtZXRlcnMiOnsid2lkdGhGYW N0b3IiOjAuNDUsImNoYXJ0TmFtZSI6ImNoYXJ0In19fX0%3D[Accessed 7 March 2020].

37

Whitgift School

WHITONOMICS

www.whitgift.co.uk

Issue 8 | March 2020