Titbits: Et tu Brute!!! ; Yellow Fever; Joint Management of Tromelin ; Stimulus Package Demystified; Purchasing power –Rs 420.

Et tu Brute!!!

There may be some sense in the theatricals of the Directors of our prestigious Central Bank (CB) -- making their show on the pavements of our Wall Street. But with a Deputy Governor leading it, it was much more than third-grade street drama. Et tu Brute, you seem to be leading the wrong flock of monetary policy neophytes who have morphed into potential sources of conflicts and giving rise to substantial governance issues -- the very ones who supported by their high-command are convinced that they have enough of angst to display it publicly. The former governor of the Reserve Bank of South Africa Tito Mboweni disagrees and he reminds us that “central banks are special institutions, almost as special as the judiciary, and their independence must almost be elevated to the same level as that of the judiciary.”

Unlocking the Budget Figures

This last budget of this government needs to be put in its proper context; it is its fourth budget that had as precursor the 2006/07 Budget which promised to usher in a new socio-economic model centred on global competitiveness to return the economy to higher growth paths and full employment.  This involves a transition from the obsolete and counterproductive preference-based development model to an environment of fully liberalized trade where no activities, be it for export or for import, are shielded from international competition.

The Budget’s tricky tricks

After the lukewarm reception that the Budget obtained from the majority in the National Assembly compared to last year’s hurrahs and thumping that accompanied the more juicier bits, it needed something quite original to cheer up spirits. To some extent, this was provided by the PM’s intervention. He tried to put on a brave face given the rough road ahead; but he did distance himself somewhat from the dole outs of the Additional Stimulus Package to big business without meaningful conditionalities, aware that despite all his efforts this budget cannot win support among Labour’s rank and file and the public that is increasingly disenchanted with  the TINA ( There Is No Alternative) policies.