94% plunge shows ‘Abenomics’ is losing global investors | The Japan Times

This is a top-trending article, published in the Japan Times. It’s well worth a read.Check it out!

via 94% plunge shows ‘Abenomics’ is losing global investors | The Japan Times.

It seems that ‘Abenomics’ has lost its magic. Abe has been shy of deploying his own third arrow, namely structural change. There are important parallels here for the Eurozone. In discussions with Southern Europe, including France and Italy, Germany can cite Japan‘s example – again there is no substitute for structural change. Structural change must include opening up Japan’s service sector and public sector to global competition. For the Eurozone, the priorities are labor market reform, creating greater competition for jobs.

For me, there is another aspect of  ‘Abenomics’ which is often missed. Abe has placated his right-wing cronies with his foreign policy decisions – especially, he’s often ignored the sensitivities of China. Abe has created ‘political risk’ which can make foreign investors wary of investing in Japan. ‘Political risk’ is also a factor in the Eurozone – for example, the imminent national election in Greece.

Thoughts?

Planning for the Better Care Fund – National Audit Office (NAO)

This is an excellent insight into the practical administration of David Cameron‘s UK government, how a good plan to save £1 Billion was watered down to £55 million. It’s a must-read. Check it out!

via Planning for the Better Care Fund – National Audit Office (NAO).

What started out as a good idea was derailed by the bureaucrats and political meddling. It’s the usual problems of poor planning, ineffective program management and absence of leadership. Trying to avoid too much centralization, funding was to be devolved.

I worry about the effectiveness of financial controls in both central and local government, and the damaging impact of political interference. I question the wisdom of excessive dependence upon the major consulting firms for expertise, rather than relying upon independent professionals.

Overall, I question the absence of vision and robust, properly costed and risk-assessed strategy. As John Gelmini effectively argues, unlike Japan and China, the UK is way down the curve on deployment of robotics. 

Ultimately, the questions are surely:

  1. Will the quality of care in the UK improve?
  2. Will the country get better value-for-money?’

Thoughts?