Monday, March 29, 2010
1. CANADA
Toronto Star, March 23: Barack Obama has done more than salvage his presidency by winning the vote for his hard-fought health care reform. He has also reminded Americans — and, by extension, Canadians — that leaders are “capable of doing big things” when they dare to advocate progressive change.
True, Obama’s political triumph is not yet complete, despite the historic 219-212 House vote. The Republicans, some of whom called the Obama’s health care reform package “socialist,” are threatening to contest it in court. The Democrats also have a sales job to do before November’s midterm elections. But the Republicans have discredited themselves with their obstructionism, wild talk of “freedom dying” and fear-mongering about “death panels.”
Obama has not only buoyed Democrats but also raised the bar by putting his presidency on the line for a principle. He prevailed by staking out a bold, activist agenda for the people, when others urged caution and retreat. “I will not accept the status quo,” he told Congress last summer when his reform was in trouble. He proved that the Big Idea still has traction, that there can be reward in reaching high.
Of course, Obama has delivered nothing like Canadian-style medicare with its universal coverage. Rather, he is reforming a $2.5 trillion, hodge-podge system that relies on private insurance. Still, his is a historic achievement, ranking with such popular programs as Social Security in 1935 and public health insurance for the elderly in 1965.
2. CHINA
China Daily, Beijing, March 24: China’s likely trade deficit in March may not be enough to dissuade some Western people from insisting stubbornly that trade surplus countries should be blamed for the global imbalance as well as the predicaments of highly indebted rich countries.
But the first monthly trade deficit since May 2004, according to an upcoming March 28 report from Minister of Commerce Chen Deming, will speak volumes about the steady growth of China’s contribution to global demand.
Thanks to the strong recovery of the Chinese economy, the country’s imports have been increasing more rapidly than exports, which have been affected by a drop in demand from industrialized countries.
Since a one-third drop in China’s trade surplus in 2009 had failed to prevent some Westerners from making a shaky excuse to pressurize the Chinese government to revalue the yuan, it is more than likely that they will just choose to ignore China’s first monthly trade deficit.
Yet, China’s transition from a net exporter to a net importer will have more implications than exposing the fallacy that the country is manipulating currency to subsidize exports.
In fact, the urgent question for the world economy should be whether it is ready for the accelerated growth of China’s appetite for imported goods and services.