CPIX slows down a bit

The headline inflation rate at September 2008 (i.e. the Consumer Price Index for the historical metropolitan areas at September 2008 compared with that at September 2007) was 13,1%.

The official inflation rate (i.e. the percentage change in the CPI for the historical metropolitan areas at September 2008 compared with that at September 2007) was 13,1% at September 2008. This rate was 0,6 of a percentage point lower than the corresponding annual rate of 13,7% at August 2008 (i.e. the percentage change in the CPI for the historical metropolitan areas at August 2008 compared with that at August 2007).

From August 2008 to September 2008 the Consumer Price Index for the historical metropolitan areas increased by 0,2%.

The annual percentage change in the Consumer Price Index excluding interest rates on mortgage bonds (CPIX) for the historical metropolitan and other urban areas was 13,0% at September 2008 (i.e. the CPIX at September 2008 compared with that at September 2007)

The annual percentage change in the CPIX, which is the Consumer Price Index excluding interest rates on mortgage bonds, for the historical metropolitan and other urban areas was 13,0% at September 2008 (i.e. the CPIX at September 2008 compared with that at September 2007).
This rate was 0,6 of a percentage point lower than the corresponding annual rate of 13,6% at August 2008.

From August 2008 to September 2008 the CPIX for the historical metropolitan and other urban areas increased by 0,1%.

Headline CPI September 2008 = 13,1%
CPIX September 2008 = 13,0%

OECD papers released

The OECD's Economic department has released two papers:

• One on the adjustment of labour markets and tax reforms

This paper examines the nature and the length of economic adjustments to selected structural reforms, drawing on a variety of approaches: descriptive analysis and simulations using Dynamic General Equilibrium and macro-economic neo-Keynesian models.

• The second on the Short-term distributional effects of structural reforms: selected simulations in a DGSE framework

This paper examines the short-term distributional effects of a number of tax and labour market reforms in the euro area, drawing on simulations using a micro-founded dynamic general equilibrium model.

New IMF releases

Policy Papers

Nepal - Assessment Letter for the Asian Development Bank
Summary: Assessment Letters or Statements may be prepared for member countries with Fund-supported programs; receiving Fund emergency assistance; with staff-monitored programs; or surveillance-only cases. They are typically produced for use by the country with multilateral or bilateral donors or creditors, in particular the World Bank and other International Financial Institutions.

Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries
Summary: The objective of the joint Fund-Bank debt sustainability framework for low-income countries is to support LICs in their efforts to achieve their development goals without creating future debt problems. Countries that have received debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) need to be kept on a sustainable track. Under the framework, country DSAs are prepared jointly by Bank and Fund staff, with close collaboration between the two staffs on the design of the macroeconomic baseline, alternative scenarios, the debt distress rating, and the drafting of the write-up.

Surveys

Middle East, Central Asian Growth Set to Remain High
The Middle East and Central Asia (MCD) has continued to see strong growth in 2008, outpacing global growth for the ninth year in a row, the IMF says in its latest regional economic outlook.

Constructing a New European Financial Stability Framework
Europe must be better prepared to deal with bank failures and should use the current crisis as an opportunity to focus on the European Union's financial stability arrangements, a senior IMF official told a conference in Frankfurt.

Financial Crisis Takes Harsh Toll on Europe
A confluence of multiple adverse shocks has depressed economic activity in Europe. Gradual recovery is expected late next year, the IMF says in its latest regional outlook. Restoring financial stability is the main policy priority, requiring a comprehensive and coherent global approach.

High Food, Fuel Prices a Threat Where Protection Limited
Inflation has been rising in the Pacific Islands on the back of strong increases in commodity prices. Although commodity prices have declined from recent peaks, food and fuel prices remain a concern in the islands as most have only limited social protection systems.

Putting Georgia on a Path to Recovery
In an interview, Prime Minister Lado Gurgenidze of Georgia talks about the impact of the recent armed conflict, the need for financial support, and how his country must continue the reforms that transformed Georgia's economy.

Developing Countries Need Strategy to Face Global Crisis Impact
Low-income countries should position themselves to respond to ripple effects from the global financial crisis, developing country ministers said during the IMF-World Bank Annual Meetings. They urged donors to fulfill aid commitments and pledged steps to improve their economies on their own.

IMF in Talks on Loans to Countries Hit by Financial Crisis
The IMF, which has announced its readiness to lend billions of dollars to support nations hit by fallout from the global financial turmoil, is holding talks with several countries about possible new lending programs, as well as advising governments how to react to the economic downturn.

Some Climate Policies Worsen Food Problems, Panelists Say
Commitments by advanced industrial countries to reduce carbon emissions through alternative fuels development, while well meaning, have exacerbated the food crisis and contributed to worldwide water shortages, seminars held during the IMF-World Bank Annual Meetings are told.

IMF and Iceland Outline $2.1 billion Loan Plan
The IMF announces an initial agreement with Iceland on a $2.1 billion two-year loan to support an economic recovery program to help the island restore confidence in its banking system and stabilize its currency.

IMF Set to Lend $16.5 Billion to Ukraine
The International Monetary Fund announces outline plans to lend $16.5 billion to Ukraine to support a policy package the country has assembled to maintain economic and financial stability. Ukraine's economy has been affected by the global financial turmoil and falling steel prices.

Country Reports

Lao People's Democratic Republic

South Africa: Selected Issues
South Africa: 2008 Article IV Consultation - Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussions; and Statement by the Executive Director for South Africa
South Africa: Financial System Stability Assessment, Including Report on the Observance of Standards and Codes on the following topic: Securities Regulation
Ghana: 2008 Article IV Consultation - Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Ghana
Tunisia: 2008 Article IV Consultation - Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Tunisia
Togo: First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Request for Modification of Performance Criteria and Augmentation of Access - Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Togo

Working Papers

Interest Rate Elasticity of Residential Housing Prices
Author/Editor: Iossifov, Plamen; Cihák, Martin; Shanghavi, Amar
Summary: We examine the interest rate elasticity of housing prices, advancingthe empirical literature in two directions. First, we take a commonly used cross-country panel dataset and evaluate the housing price equation using a consistent estimator in the presence of endogenous explanatory variables and a lagged dependent variable. Second, we carry-out a novel analysis of determinants of residential housing prices in a cross-section of countries. Our results show that the short-term interest rate, and hence monetary policy, has a sizable impact on residential housing prices.

Regional Economics Outlook

Western Hemisphere -- October, 2008: The ongoing global turmoil represents a confluence of negative shocks for Latin America and the Caribbean: a freeze in global credit markets, weaker external demand, and lower commodity prices. But the region is expected to deal with these global shocks better than in previous crises, reflecting progress made in improving macroeconomic fundamentals over the past decade. Still, there are a number of downside risks going forward. Against this uncertain background, the report discusses the implications of the global financial crisis for the regional outlook and the corresponding challenges facing policymakers.

Europe -- October, 2008: The financial crisis has reached extraordinary proportions in recent months. At the same time commodity prices increases have boosted headline inflation, depressing consumption. Growth is expected to stagnate in the near term in most advanced European economies as asset price booms deflate and banks curb credit to reduce leverage. Growth will slow down significantly in the emerging economies in Europe as well. Mutually reinforcing deterioration in financial and economic conditions is the main downside risk to the outlook. Stabilizing financial conditions and nurturing growth are the key policy priorities. In addition to the outlook, the report presents analytical work on the impact of high commodity prices, the turnaround in the credit and asset price cycles, and the macroeconomic effects of cross-border labor flows.

Middle East and Central Asia region -- October, 2008: Regional Economic Outlook: Middle East and Central Asia underlines that the region has continued to experience strong growth in 2008, and the short-term outlook is generally favorable. However, inflation has emerged as a key issue, and while the global credit crunch has thus far had a limited impact on regional financial markets, the financial turmoil and slowdown in developed economies could lower growth in the period ahead. Policies will need to focus on tightening the fiscal and monetary stance where appropriate, with greater exchange rate flexibility, and continuing efforts to strengthen the resilience of financial sectors.

How Competitive is SA?

The World Economic Forum (WEF) released their Global Competitiveness Report 2008-2009 last week and SA is ranked fourth in terms of our financing through local equity markets and fifth in terms of our regulation of securities exchanges.

Here is what Klaus Schwab, the Executive Chairman, says in the preface:

"This year’s Global Competitiveness Report is being released at a time of multiple shocks to the global economy. The subprime mortgage crisis and the ensuing credit crunch, combined with rising inflation worldwide and the consequent slowdown in demand in many advanced economies, has engendered significant uncertainty about the short-term outlook for the world economy. Global growth is slowing, and it is not yet clear when the effects of the present crisis will subside."

The Report measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity.

So how did South Africa fare? We slipped one place from 44 last year to 45 this year, while we were ranked 35 two years ago.

The most problematic factor for doing business in SA not crime and theft as many would have assumed, but rather an inadequately educated workforce.

University news from the West

GLOBAL: Tide turning for STEM subjects Diane Spencer

Countries around the world are trying to prevent a continuing decline in interest among students in science, technology, engineering and mathematics or STEM - the so-called key vulnerable subjects. Professor John Holman, director of STEM subjects at the UK National Science Learning Centre, said Britain was not alone among advanced economies that had experienced shortages of graduates in these areas. While other EU countries, Japan, the US and Scandinavia were also suffering, the picture was different in developing nations.

GERMANY: Education summit a disappointment Mike Gardner

Seemingly undaunted by the international financial crisis which has also rocked some German banks, the Federal Government went ahead with its Education Summit last Wednesday. But the meeting ended in a row over the 16 state governments' insistence on getting a greater share of VAT revenue for investment in education.

RUSSIA: Super league of 'federal' universities Nick Holdsworth

A shake-up of Russia's university system will see the establishment of a network of new, high-status 'federal' institutions under Education Ministry plans being considered by lawmakers. The scheme - part of a wide-ranging set of proposals under a Kremlin plan to improve Russia's socio-economic infrastructure - has passed its first reading and will target resources on specialised research universities and encourage wider lifelong vocational learning.

BANGLADESH: Responding to global challenges Mahdin Mahboob*

The Asia Regional Higher Education Summit was held in Dhaka earlier this month with a view to expanding innovative approaches to teaching, research, technology transfer and business development in higher education. Attended by senior educationists from across the world, the four-day summit proposed a range of ideas for the development of key sectors and how higher education could play a role in this.

AUSTRALIA: Boost for university infrastructure Geoff Maslen

The nation's universities have welcomed a decision by the federal government to allocate almost A$700 million (US$469 million) for spending on infrastructure and research facilities. The money has been fast-tracked to next year's funding round and will be drawn from the $1 billion Higher Education Endowment Fund.

HUNGARY: Boost R&D to improve economy

Hungary should invest more in research and development to make its economy more competitive and boost growth, according to a new OECD report. The report, Hungary - OECD Review of Innovation Policy, considers the strengths and weaknesses of Hungary's innovation system and recommends steps the government could take to increase the impact of innovation on the country's future prosperity.

US-INDIA: Collaboration in agricultural education Subbiah Arunachalam

The US Cooperative State Research, Education and Extension Service (CSREES) has awarded four grants totalling about $400,000 to US universities for advancing the US-India Agricultural Knowledge Initiative.

Don't Panic College fund raisers are making some tactical adjustments amid economic turmoil, but few are publicly expressing outright doom and gloom about their prospects.

The Econ Major's Marginal Utility A new working paper examines economics majors' views about their chosen field of study, including its level of difficulty and how happy they are with it.

Life and sport: A world apart

Those who say life is like a game are confusing fantasy with reality, says Robert A. Segal

Keep it stupid, simple

Is dumbing down a reality on UK campuses? Most respondents to our online poll highlighted dangers to academic standards, but they were split about whether degrees are worth less than they were before. John Gill weighs up the facts

Hefce moots linking cash to employability

Higher education expert says funding idea is ‘extremely dangerous’

Forum lays down proposals in bid to improve student life

Better information and flexible finance are among report recommendations

Watch out: FoI research shines light on the sector

Should universities be exempt from Freedom of Information Act probes?

‘You would barely know adult stem cells exist’

Newcastle specialist quits UK for France, citing undue focus on embryo research

Too Many Students Come to College Unprepared steven bell

In many parts of the country, community colleges are bursting at the seams as demand for their product soars. A shocking 70 percent of new students at Normandale Community College in Bloomington need to enroll in one or more remedial math courses before proceeding to college-credit work. More than half need remedial work in writing.

Higher Ed Looks Like The Next Bubble To Pop steven bell

Home builders and banks aren't the only ones facing economic headwinds these days. America's undercapitalized independent colleges are staring at a spiral of major threats to solvency as penny-pinching students and parents consider cheaper options, and funding sources dry up. As a result, they could be the next bubble industry to pop. But while head counts slide, needs rise. Demand for student aid is up, but charitable donations from foundations and individuals will fall during a downturn. Ditto for investment returns. And thanks to tanking tax revenue, federal aid may take a hit, too. Taken together, many independent institutions start to look vulnerable.

Students Work To Create A Digital Game With Social Purpose steven bell

Creating a fun game may seem an unlikely way to tackle the serious problem of domestic violence. But that’s the task facing a team of college students in quaint Vermont. An added challenge: The digital game has to be appealing and accessible to young people half a world away, in the townships of Cape Town, South Africa. As part of a broader campaign against gender violence, the United Nations wants to reach children, particularly boys, before stereotypes sink in.

University news from Africa

AFRICA: Tertiary education key to growth: World Bank
Karen MacGregor
Tertiary enrolments in Sub-Saharan Africa more than tripled between 1991 and 2005, expanding at an annual rate of 8.7% - one of the highest regional growth rates in the world - says a new report by the World Bank. But public funding did not keep up and spending per student plummeted over 25 years from an average of US$6,800 a year to just US$981 in 2005 for 33 countries. "Educational quality and relevance both suffered as a result," according to Accelerating Catch-up - Tertiary education for growth in Sub-Saharan Africa.




ZAMBIA: Brain drain stemming plan in tatters
Clemence Manyukwe
A plan tabled in Zambia's parliament in 2007, aimed at curbing the brain drain among science lecturers and researchers, lies in ruins amid ongoing academic disgruntlement. The plan included adjusting salaries regularly, introducing a home-ownership scheme, retention allowances and increased research grants for state institutions. But strikes have dominated Zambia's academic year and they have included science lecturers.



NIGERIA: Students protest against exorbitant exam fees
Tunde FatundeCandidates seeking admission into the current 2008-09 academic session in Nigeria are unhappy with high entrance examination fees charged separately by universities and the Joint Admission and Matriculation Board, or JAMB. One newspaper analysis calculated that the amount spent by students sitting both sets of examinations was a whopping US$119 million.


ZIMBABWE: Universities still closed as students arrested
Clemence Manyukwe
Four student leaders were arrested last week for leading a protest of nearly 500 students against the collapse of higher education in Zimbabwe. No state universities are operating in the new academic year because of serious problems including a lecturer strike, lack of finance and unavailability of learning materials.

EGYPT: Anger at revamping of Muslim seminary
Khaled Fouad
Academics at Al Azhar University, the Muslim world's oldest seat of higher learning, have reacted angrily to a decision by the Egyptian government to recategorise the institution's colleges. Earlier this month, Prime Minister Ahmed Nazif, who doubles as Minister of Al Azhar Affairs, ordered separation of the university's religious colleges from ones teaching non-religious subjects to create two institutions.

SENEGAL: UCAD to expand biotechnology courses
The University of Cheikh Anta Diop (UCAD) in Dakar is planning to offer a masters degree in plant and microbic biotechnologies which will be accessible to students in other countries, thanks to distance learning. Academics and researchers from Senegal and other countries in the region including Benin, Burkina Faso, Côte d'Ivoire, Mauritania, Mali and Niger, as well as France, met at UCAD for a sub-regional workshop organised by the university's Department of Biology.

EU: New site to attract foreign students

The European Commission has launched a new web portal called Study in Europe to promote universities across the EU to students from other parts of the world. The portal is part of a campaign to boost the number of students from outside Europe who study in the EU.

EU: More funding for Erasmus

The European Parliament last week gave the green light to a second funding round for the EU's Erasmus Mundus Programme which aims to promote Europe as a centre of academic excellence. In backing the estimated budget of EUR950 million (US$1,227 million) for the 2009-2013 period, the parliament adopted changes to some of the criteria to simplify visa applications for participants from non-EU countries and to ensure a balance in terms of students' gender and country of origin.

EU: Call for editorial board applications

The European Training Foundation plans to establish a new international board for the next three years and has called for applications from appropriately qualified people. The ETF is a specialised agency of the European Union based in Turin, Italy, and works with transition and developing countries to apply human capital development strategies to socio-economic development.