Wednesday 30 November 2011

Let's be very clear...

It is Europe that drives the environmental agenda, pushing for global climate deals and overall environmental sustainability. The current Euro debt crisis, weakens the European position and is really not positive for the ones who dream of a sustainable and environmentally friendly development and economy. And I think Durban conference will show it very, very clearly...

Monday 28 November 2011

Inflation?

Should the Eurozone consider the possibility of printing out more money, devaluing the currency, as a mean to pay part of its mounting debt and as a way to improve its competitiveness - especially of the small countries? This solution (that was a strong tool in the recent US plan to minimize recessionary effects) would harm Germany's living standard and create inflation. But... with about one third of the Eurozone in severe troubles (and the rest closing on the abyss) and the prospects of a slump in economic growth (prospects? Well, it is more like reality) it should be on the table.

Saturday 26 November 2011

Christmas lights

One of the things i was never able to understand were the christmas lights that are switched on across Portugal this time of the year. They usually draw small crowds every night, to the very centre of the towns. Still, the stores remain close, losing the chance of extra sales...


- enviado de dispositivo móvel.

Thursday 24 November 2011

What have I been saying?

Portugal's problem is an economic one that is then related to a budgetary one. We need to control public spending (no doubts about that), focusing on return of investment in all public investments. But we also need to understand how we will grow sustainably and start doing it. Without this growth dimension, rooted in privat investment and a free competitive market, we don't stand a chance of being successful!

Wednesday 23 November 2011

Power Balance faces bankruptcy


Power Balance is a company that based itself on a claim that it couldn't prove - the claim an electrically charged hologram would provide extra-strength and balance to those who wear it. The company was already condemned to pay minor fines in some countries and to remove some of its claims - something it didn't do. Now, it faces a major law suit and risks bankruptcy. My opinion on that: a company based on a (probable) lie (unless it is able to produce the evidence it didn't so far) should not exist - we shouldn't allow businesses to compete on cheating consumers, but on good and value added products that correctly address consumers needs.


Tuesday 22 November 2011

There are opportunities everywhere

For centuries, Nazare waters were considered blessed for their fish but also doomed for its storminess and deadliness. Now, someone saw an opportunity there...

Nazare was made famous for the impressive images of its fishermen defying death on small fishing boats, rowing to overpower the waves. Now, those same waves might be a blessing, after they have been surfed - and probably considered the biggest waves in the world to have been surfed. Nazare's municipality seems to be (rightly) seeing this as an opportunity:
- to attract the big waves surfing best athletes in a world tour competition, and their entourages and on-lookers;
- attract surfing tourists;
- develop a safety business on search and rescue operations in stormy waters.

Opportunities are everywhere. We just need to understand and how to explore them.

Monday 21 November 2011

Friday 18 November 2011

Sovereign debt

Someone once wrote that "sovereign debt is the only kind of debt that is not paid by the taker, but by its sons". Which I think highlight the importance of Return on Investment, as a decisive tool in State budgeting. Sovereign debt should be taken mainly as a financing tool for long term projects, that have a positive ROI that sets them as priority for development and over pays for the financing it gets (and opportunity costs of the investment). That should be the motto and the rule of action we owe our kids.

Thursday 17 November 2011

At least, we are talking about productivity


Should labor wages go down or should working hours go up at the same cost? How does Justice inefficiencies and tax predictability affect Portuguese productivity? There might not be much of a dialog, but, at least, we are starting to talk about productivity in Portugal...

Tuesday 15 November 2011

Devaluation


I have written it more than a year ago - when we looked at productivity in Portugal and we compared it with Germany, Portugal had lost 20% productivity vs a common comparison point a few years back. This means the Portuguese worker was producing significantly less than a German one - http://my2centsontheworld.blogspot.com/2010/06/on-labour-laws-change.html . As so, it shouldn't come as a surprise the study that says that Portugal needs to devalue its currency on 22%. And if that is not possible, that we should decrease our wages accordingly.

For those that still didn't understand, one of the root issues of Portugal's economical crisis is low productivity. Our workers don't produce enough for what they are paid when we compare vs the other countries in the globe. It is tough to say it - but it is the reality...

Saturday 12 November 2011

Now what?

I must say, I keep looking at what is happening in the Eurozone with lots of anxiety. Especially after Italy finally (unfortunatelly) broke the 7% sovereign interest rate. I think we will have developments this week, and I am not very sure how nice they will be...

Wednesday 9 November 2011

Italy is just another sign...

... that we the euro situation solutions that are being implemented do not address the real problems. Eurozone needs to do 2 things urgently:
- implement an integration plan immediately, consolidating economical governance in Europe towards a single economic policy;
- start growing. Understand and implement a growth strategy focused on productivity (like Germany did) and competitive advantages, instead of inefficient public spending.

Europe is an amazing small region, with the best living standards in the World, and, probably, the most developed social, political and environmental conscious in the world. But, for that, we need to understand how sustainable our economy is to support it. We need to get our economy going!

Monday 7 November 2011

Stepping down

Many times, when a top politician resigns, stability shouldn't be a concern. Actually, that politician needs to stand down to break the stiff situation, to prompt changes, reforms that are much needed. It is not only a punishment - it is a recognition that to move things forward, some key actors need to be replaced.

So, Mr Berlusconi, please, move out...

Friday 4 November 2011

Think positive III


- Guimarães was considered a top 10 destination for 2012, by Lonely Planet

- the shoe manufactury industry in Portugal is a great example of turnaround of an old an uncompetitive industry, thanks a new competitive, global and branded marketing strategy

- Cascais and Estoril area establish themselves further and further as top destinations for sailing, golfing and corporate events.

Thursday 3 November 2011

Why did McDonald's fail?


Yes, it is true. In Bolivia McDonald's didn't succeed and had to leave the country by the back door. The trailer in the link below (all in Spanish) is about that extraordinary event (it is something that is not very usual...), explaining like price and products taste lead to a McDonald's failure.

P.S- Obrigado mais uma vez, Tiago, por me chamares a atenção para este artigo.

On Draghi note


The new BCE supremo, Mario Draghi, stated in a note that the Eurozone countries in difficulties should actually concern more about doing the necessary and adequate economic reforms. Mr Draghi, let me tell you that's exactly what we are doing now in Portugal!

Wednesday 2 November 2011

It is true...


I once read that everytime you take a 30 minutes detour of your way to go to a bargain gas station offering a 0.05 euros discount per litre on gas, you are valuing your time at €5 a hour. Please, check if you actually couldn't be doing something more valuable...

Tuesday 1 November 2011

On Greece's referendum

I fully understand why Papandreou stated it will run a referendum and why Greece wants it on the Eurozone debt pardon and solutions that were negotiated last week. He needs to put the power back on his voters hands. Or, at least make them feel it.

Because, actually, there aren't many solutions. Greece debt level and deficit, its chronical low level of tax revenues vs Governmental spend ruin any smooth solution. Greece is put between 2 choices: if it accepts the Eurozone solution, part of its debt will be pardoned, the country will move out of sovereign debt markets for the next 20 years and it has to live off European assistance; if it rejects it, it will default on its debt, don't get European support and not have money to pay its social policies and current public salaries - in a word, bankrupt.

Still, it is a sovereign decision. And I believe Greeks should do it directly. But it really is a high risk gamble without a positive outcome either way. And trully jeopardizing the Euro...