Thursday, July 9, 2009
From Creamer Media in Johannesburg, I'm Bianca de Beer.
Making headlines:
Nobel Memorial Prize winning economist Professor Joseph Stiglitz has reiterated his stance that the "rigid" application of inflation targeting by central bankers contributed to the onset of the current economic crisis. Containing inflation needs to be balanced with other concerns, he says, such as sustaining growth and maintaining financial stability.
Stiglitz argues that many central banks have made the "mistake" of "acting as if low consumer price inflation was necessary and almost sufficient for economic stability". This is a product of the poor application of economic theory, and highlights the distortions caused by relative price changes associated with moderate inflation.
Inflation can become a serious problem if left uncontrolled. But, authorities have to be certain that the application of interest rates can actually affect prices, particularly in developing economies where much inflation is caused either by external or imported factors, or administered price increases. Stiglitz adds that it is, therefore, "absurd" to place the full burden of containing such prices on interest rates.

Leaders of the world's richest and main developing nations meet today to try to find common ground on global warming and international trade, with poorer countries seeking concessions.
Today's talks come on the second day of a Group of Eight summit, with discussions broadened to include the heads of new economic powerhouses, known as the Group of Five, in recognition that the world's problems can no longer be dealt with by an elite few.
Hopes of agreeing on ambitious climate change mitigation goals have faded, after China and India rejected demands to halve emissions of greenhouse gases by 2050.
Broader economic concerns will also be high on the agenda, with emerging nations complaining that they are suffering heavily from a crisis that was not of their making. China, India and Brazil have all questioned whether the world should start seeking a new global reserve currency as an alternative to the dollar.
Diplomats say that the G8 and G5 should agree to conclude the stalled Doha round of trade talks in 2010. G5 nations have called on the world's richest States to tear down trade barriers and restore credit to the poorest countries.

Judges have resolved to tackle court delays and lengthy case backlogs, Chief Justice Pius Langa said at the Second Judges Conference of South Africa. This entails developing and putting into effect proper case management rules and reviewing current rules of practice and procedures to ensure that these promote, rather than obstruct, access to court.
Langa added that judges support the idea of a single judiciary, as envisaged by the Constitution. This would include magistrates' courts, with the Constitutional Court as the apex of the hierarchy.
He said that the judiciary should also be empowered to administer courts and its own budgets. The shelved Superior Courts Bill proposed that the Justice Department administer courts, but this was strongly opposed by many judges.
Langa emphasised that judges welcome the commitment of the executive to independence of the judiciary.

Also making headlines:
Mosiuoa Lekota remains upbeat about the Congress of the People as rumours of a breakdown abound.
South African President Jacob Zuma calls for partnerships to tackle the global economic crisis at a meeting of Group of Five leaders.
The Global Climate Network says that more low-carbon technology inventions are needed to combat climate change.
And, the International Monetary Fund says that the world is starting to pull out of recession.

That's a roundup of news making headlines today.