G7

• OTTAWA, ON, Sept. 21, 2023 /CNW/ - The Prime Minister, Justin Trudeau, today announced that the President of Ukraine, Volodymyr Zelenskyy, will visit Canada, from September 21 to 22, 2023.
• Canada will always stand with Ukraine and Ukrainians as they continue to defend their freedoms, independence, and democracy.
• I look forward to welcoming President Zelenskyy to Canada to continue building on our support for Ukraine and the Ukrainian people as they contend with the effects of Russia's brutal war of aggression."
• President Zelenskyy will be accompanied by the First Lady of Ukraine, Olena Zelenska.

• GATINEAU, QC, Sept. 14, 2023 /CNW/ - Today, the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, issued the following statement on the Employment Insurance (EI) premium rate for 2024:
  "Canadians have worked hard to help rebuild and grow our economy after the significant challenges brought on by the global pandemic.
• The Canada Employment Insurance Commission plays a critical role in Canada's employment insurance system and is responsible for setting the annual EI premium rate based on the seven-year break-even rate forecasted by the EI Senior Actuary.
• Today, the Commission has announced that the EI premium rate for 2024 will be $1.66 per $100 of insurable earnings—an increase of 3 cents from the current rate.
• This EI premium rate will be 22 cents lower than it was between 2013 and 2016 ($1.88).

• During an address in Maryland, the president contrasted Bidenomics with Trumpian “MAGAnomics” that would involve tax-cutting and spending reductions.
• He decried trickle-down policies that had, “shipped jobs overseas, hollowed out communities and produced soaring deficits”.
• Changing voters’ minds about the economy is one of Biden’s biggest challenges ahead of the 2024 election.
• Even 60% of Democratic and Democratic-leaning respondents were “seriously” concerned he would lose in 2024.

What is Bidenomics?

• His answer, repeated in his Maryland speech, is to grow the economy “from the middle out and the bottom up”.
• To this end, Bidenomics is centred on three key pillars: smarter public investment, growing the middle class and promoting competition.
• On investment, Biden’s approach fundamentally challenges the argument by the right that increasing public investment “crowds out” more efficient private investment.
• Bidenomics argues that targeted public investment will unlock private investment, delivering well paid jobs and growth.

The results so far

• Over 13 million new jobs have been created, though much of this can be perhaps attributed to workers resuming employment after COVID.
• Total US jobs The IMF predicts the US economy will grow 1.8% in 2023, the strongest among the G7.
• The US also has the group’s lowest inflation rate, although it rose in August.
• On the closely watched core-inflation metric, which excludes food and energy, the US is mid-table, though improving.
• One consolation to the Democrats is that voters’ gloom is partly related to interest rates, which are probably close to peaking.

• Just before the summit, the BRICS group announced Argentina, Ethiopia, Egypt, Iran, Saudi Arabia, and the United Arab Emirates, would become members as of January 1 next year.
• There were 67 countries invited to attend the summit and Reuters reported more than 40 countries, including Indonesia, had expressed interest in joining BRICS.
• As Southeast Asia’s largest economy, some experts argue Indonesia should join the BRICs grouping.

Avoiding an anti-Western interests ‘trap’

• In the Russia-Ukraine war, for example, the blocs have shown obvious opposing stances.
• For example, during the BRICS summit, BRICS leaders issued a joint statement expressing their concern about the current war, calling for an immediate ceasefire.
• Brazil has refused to join Western countries in sending arms to Ukraine or imposing sanctions on Moscow.
• This is in contrast to the G7 summit in March, which imposed heavier sanctions on Russia.

Personal interests of old members

• It appears some of the existing BRICS members stand to gain the most from increasing membership of the group.
• China, as the largest economy in BRICS, seems to be in favour of adding members to bolster its own global influence.

But BRICS remains important for Indonesia

• Although the Indonesian government has not joined BRICS, it is fully aware of the importance of BRICS as a strategic partner, especially economically.
• For developing economies such as ASEAN countries, BRICS can help bring exchanges of technology, knowledge and trade, which is mutually beneficial.
• Although BRICS is starting to focus more on a development and trade agenda, the possibility of it becoming a proxy battleground between China/Russia and the West remains.