Econintersect: An IMF report draws an astounding conclusion: Increased competition correlates with slower growth This seems to fly in the face of one of the fundamental tenets of the economic theory of capitalism. Competition in a free market is supposed to optimize the general welfare of the society by achieving maximum utility and economic growth.
From the report:
.... We found that some measures of financial globalization, financial buffers, and nontraditional bank intermediation had no consistent pattern of correlation with economic outcomes over the 13 years studied ...... Competition was slightly negatively correlated with growth throughout the entire period 1998–2010 meaning higher competition (at least with this measure) was associated with lower growth (Figure 4.3).
Econintersect: French oil giant Total SA (NYSE:TOT) has taken the position that off-shore oil drilling in the Arctic should not be ubdertaken because the environmental risks are too high. In a statement to the Financial Times, Christophe de Margerie, Total's chief executive, said that natural gas drilling was much more feasible and exploration should continue. Natural gas spills pose less risk than do oil spills, according to de Margerie.
...... Although the intentions of policymakers are clear and positive, the reforms have yet to effect a safer set of financial structures, in part because, in some economies and regions, the intervention measures needed to deal with the prolonged crisis are delaying a “reboot” of the system onto a safer path.
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