The big stimulus spending has just begun. Here’s how to get it right, quickly



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Richard Denniss, Crawford School of Public Policy, Australian National University

Responding to COVID-19 required governments to make hard choices with enormous consequences. The biggest were whether to let the disease rip, lock it down, or strike out in search of a middle ground that delivered the best of both worlds.

Different leaders made different decisions and will ultimately be judged by their citizens and historians. But it’s not just in health that COVID-19 requires choices with enormous consequences – it’s also in spending.

Two months ago the government announced a A$17.6 billion coronavirus stimulus package. Remember when that was a lot of money?

Since then it has committed to spend an extra $200 billion.

$200 billion has become base camp

Should we just let the government rip through hundreds of billions more in an attempt to quickly stimulate the economy? Should we put all proposed spending through lengthy cost benefit analyses and parliamentary inquiries?

Or is there some sort of middle path?

In a new paper by The Australia Institute, Design Principles for Fiscal Policy in a Pandemic, Matt Grudnoff, David Richardson and I set out eight criteria on which to judge spending proposals in order to expedite public and parliamentary scrutiny.




Read more:
It’s just started: we’ll need war bonds, and stimulus on a scale not seen in our lifetimes


While not all voters will be able to agree on what the most pressing problems are, presumably all voters agree that when it comes to spending vast amounts of public money it is important to have some clear criteria against which voters can subsequently judge the necessarily rapid decisions that are made.

The first two are for stimulus spending to be large in size and speedy in implementation.

The other six use economic theory to help maximise benefit for bucks.

Target households with high marginal propensity to consume

Low income households have a higher “propensity to consume’” than wealthier families who can afford to save some of what they receive. Saved stimulus does nothing to increase demand and employment in the short term.

Direct government spending on goods and services is another way to ensure that money is spent quickly.

Target domestic production

Money spent on imported cars, imported electronics or imported capital equipment will diminish the local benefits of stimulus spending.

Target activities with high employment intensities

Some industries create more direct and indirect jobs per billion dollars of spending than others. Capital intensive mining and construction projects, for example, create far fewer jobs per billion dollars spent than spending on health and community services.

Target those most hurt by the crisis

When considering stimulus spending the government should focus on projects that provide employment opportunities to individuals in industries most affected. Two of these are tourism and hospitality. While such an approach is equitable, it is also efficient as it helps ensure that the skills of the newly-unemployed match those needed by needed by new projects.

Target regions that are most disadvantaged

Building new train lines in NSW might be a good long run investment for the country, but it will do little to create jobs for tourism workers who have lost their jobs in Queensland. Stimulus spending targeted at the regions most effected will be the most likely to socak up unemployment.

Target useful projects that deliver benefits

When considering stimulus spending the government should think about what we want more of after the crisis has ended. An example from an earlier stimulus program is the ocean baths that dot the NSW coastline.

Many were built in order to generate employment during the great depression, yet almost 90 years later we are still enjoying the additional secondary benefits.

Most good projects will meet most of the criteria

While not all good projects will meet all of the criteria spelt out above, most good stimulus projects will meet most of them.

The enormity of the discretionary spending that the Morrison government is about to undertake on our behalf is almost impossible to fathom.

In a normal year the Commonwealth spends $500 billion on all of its services.

In the past two months alone it has committed to spend an additional $200 billion, and it hasn’t even started on the extra spending that will be needed to restore economic health as restrictions unwind.




Read more:
Look beyond a silver bullet train for stimulus


The enormity of the spending that will be needed means that, more than ever before, the decisions it makes over the next few months will determine our economic success for decades to come.

For all our sakes it is important it gets these decisions right.

Using principles we have set out for assessing the myriad of potential projects it will consider will give it the best chance to make the biggest difference, and give us some confidence that even though decisions are being made quickly, they are being made well.


Matt Grudnoff, Senior Economist at The Australia Institute, contributed to this piece.The Conversation

Richard Denniss, Adjunct Professor, Crawford School of Public Policy, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Australian Politics: 24 July 2013


The latest asylum seeker ‘solution’ proposed in Australia continues to gather a lot of attention in Australian politics. The links below are to articles that look at the policy from varying prospectives. The first article is an in-depth look at the situation in Papua New Guinea.

For more visit:
http://www.theglobalmail.org/feature/for-those-whove-come-across-the-seas-a-short-trip-to-png/662/
http://www.theaustralian.com.au/national-affairs/immigration/asylum-seeker-boat-sinks-off-indonesia/story-fn9hm1gu-1226684079708

As the Kevin Rudd experiment continues to be a winner for Labor, the Liberals are beginning to face the leadership change question themselves, with a possible shift from Tony Abbott to Malcolm Turnbull becoming popular among voters.

For more visit:
http://www.dailytelegraph.com.au/newslocal/city-east/voters-turning-to-turnbull-over-abbott-but-liberals-say-theres-no-chance-of-leadership-challenge/story-fngr8h22-1226683907946

Russia: Latest Persecution News


The link below is to an article reporting on the latest persecution news out of Russia, where things are beginning to deteriorate. 

For more visit:
http://www.bpnews.net/bpnews.asp?ID=38792

Myanmar/Burma: Has Real Change Arrived?


The world is watching with interest as the beginning of change appears to have arrived in Myanmar/Burma – but is it real and will it last?

For more visit:
http://www.mnnonline.org/article/16748

USA: New Evangelical Presbyterian Group


The article below reports on the beginning of a new reformed evangelical group in the USA, formed from Presbyterians who are unhappy with the abandonment of Scripture in the US Presbyterian Church.

http://global.christianpost.com/news/disaffected-presbyterians-announce-new-evangelical-body-67638/

 

Pastor, Church Official Shot Dead in Nigeria


Muslim militants of Boko Haram blamed for killings in Borno state.

JOS, Nigeria, June 10 (CDN) — Muslim extremists from the Boko Haram sect on Tuesday (June 7) shot and killed a Church of Christ in Nigeria (COCIN) pastor and his church secretary in Maiduguri, in northeastern Nigeria’s Borno state.

The Rev. David Usman, 45, and church secretary Hamman Andrew were the latest casualties in an upsurge of Islamic militancy that has engulfed northern Nigeria this year, resulting in the destruction of church buildings and the killing and maiming of Christians.

The Rev. Titus Dama Pona, pastor with the Evangelical Church Winning All (ECWA) in Maiduguri, told Compass that Pastor Usman was shot and killed by the members of the Boko Haram near an area of Maiduguri called the Railway Quarters, where the slain pastor’s church is located.

Pona said Christians in Maiduguri have become full of dread over the violence of Boko Haram, which seeks to impose sharia (Islamic law) on northern Nigeria.

“Christians have become the targets of these Muslim militants – we no longer feel free moving around the city, and most churches no longer carry out worship service for fear of becoming targets of these unprovoked attacks,” Pona said.

Officials at COCIN’s national headquarters in Jos, Plateau state, confirmed the killing of Pastor Usman. The Rev. Logan Gongchi of a COCIN congregation in Kerang, Jos, told Compass that area Christians were shocked at the news.

Gongchi said he attended Gindiri Theological College with Pastor Usman beginning in August 2003, and that both of them were ordained into pastoral ministry on Nov. 27, 2009.

“We knew him to be very gentle, an introvert, who was always silent in the class and only spoke while answering questions from our teachers,” Gongchi said. “He had a simple lifestyle and was easygoing with other students. He was very accommodating and ready at all times to withstand life’s pressures – this is in addition to being very jovial.”

Gongchi described Usman as “a pastor to the core because of his humility. I remember he once told me that he was not used to working with peasant farmers’ working tools, like the hoe. But with time he adapted to the reality of working with these tools on the farm in the school.”

Pastor Usman was excellent at counseling Christians and others while they were at the COCIN theological college, Gongchi said, adding that the pastor greatly encouraged him when he was suffering a long illness from 2005 to 2007.

“His encouraging words kept my faith alive, and the Lord saw me overcoming my ill health,” he said. “So when I heard the news about his murder, I cried.”

 

Motives

The late pastor had once complained about the activities of Boko Haram, saying that unless the Nigerian government faced up to the challenge of its attacks, the extremist group would consume the lives of innocent persons, according to Gongchi.

“Pastor Usman once commented on the activities of the Boko Haram, which he said has undermined the church not only in Maiduguri, but in Borno state,” Gongchi said. “At the time, he urged us to pray for them, as they did not know how the problem will end.”

Gongchi advised the Nigerian government to find a lasting solution to Boko Haram’s violence, which has also claimed the lives of moderate Muslim leaders and police.

The Railway Quarters area in Maiduguri housed the seat of Boko Haram until 2009, when Nigerian security agencies and the military demolished its headquarters and captured and killed the sect’s leader, Mohammed Yusuf, and some of his followers.

The killing of Pastor Usman marked the second attack on his church premises by the Muslim militants. The first attack came on July 29, 2009, when Boko Haram militants burned the church building and killed some members of his congregation.

On Monday (June 6), the militants had bombed the St. Patrick’s Catholic Church, along with other areas in Maiduguri, killing three people. In all, 14 people were killed in three explosions at the church and police stations, and authorities have arrested 14 people.

The Boko Haram name is interpreted figuratively as “against Western education,” but some say it can also refer to the forbidding of the Judeo-Christian faith. They say the word “Boko” is a corruption in Hausa language for the English word “Book,” referring to the Islamic scripture’s description of Jews and Christians as “people of the Book,” while “Haram” is a Hausa word derived from Arabic meaning, “forbidding.”

Boko Haram leaders have openly declared that they want to establish an Islamic theocratic state in Nigeria, and they reject democratic institutions, which they associate with Christianity. Their bombings and suspected involvement in April’s post-election violence in Nigeria were aimed at stifling democracy, which they see as a system of government built on the foundation of Christian scripture.

Christians as well as Muslims suffered many casualties after supporters of Muslim presidential candidate Muhammudu Buhari lost the April 16 federal election to Goodluck Jonathan, a Christian. Primarily Muslim rioters claimed vote fraud, although international observers praised the polls as the fairest since 1999.

Nigeria’s population of more than 158.2 million is almost evenly divided between Christians, who make up 51.3 percent of the population and live mainly in the south, and Muslims, who account for 45 percent of the population and live mainly in the north. The percentages may be less, however, as those practicing indigenous religions may be as high as 10 percent of the total population, according to Operation World.

Report From Compass Direct News
http://www.compassdirect.org/

 

Suspected Islamists Burn Down Two Homes in Ethiopia


Two thatched-grass structures belonged to evangelist who received threats.

NAIROBI, Kenya, April 21 (CDN) — A Christian near Ethiopia’s southern town of Moyale said suspected Islamic extremists on March 29 burned down his two thatched-grass homes.

Evangelist Wako Hanake of the Mekane Yesus Church told Compass he had been receiving anonymous messages warning him to stop converting Muslims to Christ. The Muslims who became Christians included several children.

“Inside the house were iron sheets and timber stored in preparation for putting up a permanent house,” said Hanake, who is in his late 30s. “I have lost everything.”

The incident in Tuka, five kilometers (nearly three miles) from Moyale in southern Ethiopia’s Oromia Region, happened while Hanake was away on an evangelistic trip. A neighbor said he and others rescued Hanake’s wife and children ages 8, 6 and 2.

“We had to rescue the wife with her three children who were inside one of the houses that the fire was already beginning to burn,” said the neighbor, who requested anonymity.

Church leaders said neighbors are still housing Hanake and his family.

“The family has lost everything, and they feel fearful for their lives,” said a local church leader. “We are doing all we can to provide clothing and food to them. We are appealing to all well wishers to support Hanake’s family.”

Hanake said he has reported the case to Moyale police.

“I hope the culprits will be found,” he said.

An area church leader who requested anonymity told Compass that Christians in Moyale are concerned that those in Tuka are especially vulnerable to a harsh environment in which religious rights are routinely violated.

“The Ethiopian constitution allows for religious tolerance,” said another area church leader, also under condition of anonymity, “but we are concerned that such ugly incidents like this might go unpunished. To date no action has been taken.”

Tuka village, on Ethiopia’s border with Kenya, is populated mainly by ethnic Oromo who are predominantly Muslim. The area Muslims restrict the preaching of non-Muslim faiths, in spite of provisions for religious freedom in Ethiopia’s constitution.

Hostility toward those spreading faiths different from Islam is a common occurrence in predominantly Muslim areas of Ethiopia and neighboring countries, area Christians said, adding that they are often subject to harassment and intimidation.

Ethiopia’s constitution, laws and policies generally respect freedom of religion, but occasionally some local authorities infringe on this right, according to the U.S. Department of State’s 2010 International Religious Freedom Report.

According to Operation World, nearly 40 percent of Ethiopia’s population affiliates with the Ethiopian Orthodox Church, 19 percent are evangelical and Pentecostal and 34 percent are Sunni Muslim. The remainder are Catholic (3 percent) and ethno-religious (3.7 percent).

 

Jimma Violence

In Jimma Zone in the country’s southwest, where thousands of Christians in and around Asendabo have been displaced as a result of attacks that began on March 2 after Muslims accused a Christian of desecrating the Quran, the number of churches burned has reached 71, and two people have reportedly been killed. Their identities, however, were still unconfirmed.

When the anti-Christian violence of thousands of Muslims subsided by the end of March, 30 homes had reportedly been destroyed and as many as 10,000 Christians may have been displaced from Asendabo, Chiltie, Gilgel Gibe, Gibe, Nada, Dimtu, Uragay, Busa and Koticha.

Report from Compass Direct News
http://www.compassdirect.org

Unprecedented Appearance of Foreign Evangelist in Vietnam


Luis Palau preaches at Protestant centennial in spite of government putting up obstacles to event.

HO CHI MINH CITY, Vietnam, April 11 (CDN) — The first appearance by a U.S.-based evangelist preaching at a major event since the 1975 communist victory in Vietnam helped the country’s Protestants to celebrate their centennial last weekend after government officials gave last-minute approval.

In what seems to have become standard government procedure in Vietnam, permission requested months in advance was granted – at a venue several kilometers from the one organizers sought – just three hours before the first major celebration of the Centennial of Protestantism in Vietnam (1911-2011) at Thanh Long Stadium in Ho Chi Minh City on Saturday (April 9) was scheduled to begin. Argentine-born Luis Palau, who has preached in person to 28 million people in 72 countries, delivered the gospel
message.

A second night of celebration began at 7 p.m. on Sunday.

The venue change meant equipment staged in one part of the city had to be moved to the new location before it could be assembled, church leaders said. It also meant notifying many thousands of people invited to one venue about the change to the other, they said.

Given the lack of government cooperation, the leader of Vietnam’s Evangelical Fellowship (of house churches) said the fact that the event went ahead at all was “an absolute miracle.”

By word-of-mouth, Internet, Twitter, Facebook, and especially phone texting, thousands of people got word of the change as technicians and hundreds of volunteers made heroic efforts to ready the stadium. Vietnamese police proved surprisingly helpful in redirecting people from the original site to the new location.

At 9 p.m. – two hours after the schedule start – huge banners reading “PRAY FOR VIETNAM” and “GOD LOVES VIETNAM” were unfurled to welcome the Luis Palau Team and thousands of people to the festival, which joyfully combined the centennial celebration with Easter.

After opening prayers and welcome by Vietnamese leaders, Palau’s son Andrew Palau gave testimony to how God delivered him from alcoholism and drug addiction and called him to Christian service. An Intel Corp. vice-president also gave testimony to how God blessed his life and his business. Pastor-musician Don Moen, known for songs such as “Give Thanks,” “God is so Good,” and “God will Make a Way,” provided inspirational music followed by exuberant congregational singing.

Palau began his message at 11 p.m., delivering a concise and clear evangelistic sermon, and about 800 came forward as he invited people to receive Christ. It was after midnight before people began to depart for their homes.

The second celebration proceeded Sunday evening (April 10) in a more orderly and timely fashion. More than 12,000 people filled the seats and most of the chairs set up on the stadium field. In response to Palau’s second message, more than 1,000 people, according to one organizer, came forward in response to the call to follow Christ.

Photos and Vietnamese text on the events are readily available at http://www.hoithanh.com, and clips of the arrival of Palau and Moen in Vietnam may be found on YouTube. They were welcomed at Ho Chi Minh City’s Tan Son Nhut airport by hundreds of enthusiastic young people carrying banners and flowers.

Dr. Nguyen Xuan Duc, president of the Vietnam World Christian Fellowship, said he was very encouraged about the future of the church in Vietnam.

“These are watershed days for Protestantism in Vietnam,” he said. “There is no fear, but rather wonderful spontaneity and irrepressible joy. Events like this happen in spite of the government and without the blessing of some overly conservative church leaders. What we see is young, vibrant, lay-led, internationally connected and very media-savvy.”

While Moen, Palau and others spoke on Sunday night, also appearing in Ho Chi Minh City was iconic singer/songwriter Bob Dylan – whose performance sold only about half of the 8,000 seats at RMIT university.

A week before in Beijing, censors who reviewed Dylan’s song list allowed an unabashedly Christian song beginning, “Jesus said be ready for you know not the hour in which I come,” but did not allow “Blowin’ in the Wind” and “The Times They Are A-Changin’,” according to The Associated Press. Brad Adams of Human Rights Watch complained that, in an earlier day, Dylan – whose music contributed to opposition to the Vietnam War – would never have let a government tell him what to sing, according to the AP.  

Vietnamese organizers and the Palau team now travel north to Hanoi for similar events on Friday and Saturday (April 15-16). As yet there is no indication whether authorities there will be more accommodating than they were in Ho Chi Minh City.

Report from Compass Direct News
http://www.compassdirect.org