CCAP: 48% of workers over-educated for their jobs

The center on College Affordability and Productivity release a report in January 2013 detailing that the workforce may be over educated compared to actual job requirements. The paper, called "Why are recent college graduates underemployed." is here. 

There are several highlights in the report.

We maybe over investing in college education. While the pay premium due to a college education is large, not every will find a good paying job.

College education may not be the answer to rising unemployment or increasing earnings.

One is that 48% of recent college graduates are in jobs that require less than a college education.  Eleven percent require less than a college education and 37% require only high school level knowledge or less.

ILO: Global Unemployment is Rising

The International Labor Organization release a report called "Global Employment Trends 2013". The report notes a second dip in employment due to the global recession of 2007.

Here are some hightlights

Half of the new unemployed (28 million) in 2012 were in advanced countries.

There are an estimated 197 million people unemployed globally.

BBC: Grace Amey-Obeng's beauty company in Ghana

The BBC story of the Ghanaian Beauty Company FC Group is here.  The owner trained in "beauty therapy"  in the UK then returned to Ghana.  She started giving advice on skin cremes and then created a product for the lower priced market.

The stories comes from the BBC series African Dream which shows how one successful business person developed their business in Africa.

JEEP (Jamaica Emergency Employment Program

We are reading about JEEP (Jamaica Emergency Employment Program) which is a job creation program.  The program will provide employment to 5000 Jamaicans at a cost of US$45 million dollars. The program was pushed for by Portia Simpson-Miller's People's National Party.  The PNP is the party of the left and the Jamaica Labor Party is the right of center party.  Under the JLP, Jamaica sponsored a similar porgram called JDIP(Jamaica Development Infrastructure Program) which cost US$400 million.

Jamaica has one of the highest debt to GDP ratios in the world (125%) and faces problem with crime and unemployment. Jamaica has approximately US $13 billion in debt or about $8000 per person.  In 2009 debt service consumed 65% of revenues.

The IMF restructured Jamaica debt in 2004 but has been unwilling, despite record low rates, to renegotiate again.

In 2010, the IMF agreed to a the Jamaican Debt Exchange(JDX) which exchanged high interest short term borrowings for lower interest, long-term debt.

Jamaica economy is small, service based economy based on tourism, remittances and buaxite exports.

Many believe the banks and IMF are making an example of Jamaica by not forgiving or restructuring it's debt.

Jamaica is a middle income developing country which has seen either zero or miniscule GDP growth for the past 20 years.

The UK guardian has a story on Jamaican Debt Crisis here.

The 2012-2013 national budget of Jamaica is here from the Gleaner.

Jamaica Debt Exchange press release from UNDP.



Sources:

CIA worldfact book
IMF
World Bank

ShoreBank

This is an old story I just discovered.  ShoreBank, the nations largest community development bank(community development financial institution[CDFI]), was declared insolvent by the FDIC on August 20, 2010.  The bank was well known for making loans on south side of Chicago.

The bank had a dual mission to serve the community as well as make a profit.

To quote the FDIC press release: "Shorebank experienced asset quality problems that centered on residential rehabilitation loans (single and multi-family) and condominium conversion loans.  Loan and operational losses depleted capital to the point where the bank was no longer viable."

Here is the FDIC press release.

The FDIC Information is here.

Crain's Chicago Business is here. Crain's story is about $100 million loss in 2010 and 2011 after $100 million dollar loss in 2009. Crain's also had a link to and FDIC audit in 2007 warning the bank about deteriorating loans. Here.

ShoreBank was acquired by Urban Partnership Bank.

And if you are really losing sleep, here is the purchase and asset assumption document, "the deal", between the FDIC and Urban Partnership Bank.  Basically, the FDIC take 80% of the loss on the bad loans.  The agreement is here.

Cuddly or Cut-Thoroat Capitalism

In the US, you would never know it, but there are different kinds of capitalism. In the US we have more conservative, individualistic, winner-take-all type with limited government. Some call this "Cut-Throat" capitalism. Other countries operate by the same market principles but provide a stronger social safety net and more government activism in the marketplace. Their version of capitalism has come to be called "Cuddly Capitalism". Most of the "cuddly" countries are in Europe especially Scandanavia. Many promoniant economists are debating which type of capitalism is more innovative. And also which one provides more growth. The VOX website has two articles: Cuddly vs. Cut-Throat Capitalism featuring the work of prominant economist Daron Acemoglu. A second debate centers on growth and innovation. Are nordic countries less innovative ?

Economist: Kibera (Kenya) slum is economic hotspot

The economist has a nice and positive story about economic activities in the Kibera slum in Nirobi, Kenya. The story called "Boomtown Slum" is here. The story details much of the daily life and economic activities in Kibera. Is skips over the ethnic clash, gangs, and missing government services.