President Macron visits Mayotte, confronting local anger over perceived government neglect after a devastating cyclone. El Salvador strikes a multibillion-dollar deal with the IMF, adjusting its Bitcoin adoption. The challenges faced since Mayotte's transition to French status are laid bare, revealing economic struggles and unmet promises. Meanwhile, a play about immigrant brothers humorously explores their American experience against a backdrop of financial issues. The dramatic collapse of Lehman Brothers is revisited, shedding light on its widespread impact.
Macron's visit to Mayotte highlighted residents' frustrations over perceived neglect by the French government amidst urgent recovery needs after the cyclone.
The economic struggles of Mayotte stem from its dependency on subsidized sectors, contrasting sharply with the government's promised support for overseas territories.
Deep dives
Macron's Visit to Mayotte Post-Cyclone
French President Emmanuel Macron visited Mayotte to assess the damage caused by a recent cyclone, declaring a day of national mourning for the island. While he promised aid and reconstruction, many residents expressed anger over what they perceive as neglect and insufficient support from the French government, highlighting the delays in receiving immediate help. An islander confronted Macron with frustrations regarding the lack of water and rescue services, reflecting the dire situation on the ground. Macron acknowledged the need for a shift in approach, stressing that improvements in land use, housing, and education are essential for the island's recovery.
The Economic Challenges in Mayotte
Before the cyclone, Mayotte faced significant economic struggles, with a high unemployment rate and a largely subsidized economy. The local economy is primarily dependent on non-market tertiary sectors, with limited agricultural and industrial activity contributing to a dismal overall situation. Although Mayotte is classified as a French department, it does not receive the same level of support as mainland territories, creating a gap in resources and living standards. The French government has promised increased funding for overseas territories, but critics argue that the actual budget allocation for Mayotte remains insufficient to meet its urgent needs.
El Salvador’s Bitcoin Experiment and IMF Deal
El Salvador's adoption of Bitcoin as legal tender under President Nayib Bukele has faced scrutiny after the country reached a $1.4 billion loan agreement with the International Monetary Fund that imposes restrictions on Bitcoin's use. The IMF's recent stance discourages extensive public sector participation in Bitcoin activities, suggesting a significant shift in the government's cryptocurrency policy. Despite initial hopes that Bitcoin would facilitate remittances, evidence shows minimal adoption, with traditional methods still dominating the market. The overarching conclusion is that the experiment has not achieved its intended goals, raising questions about the viability of Bitcoin in El Salvador’s economy.
France's President Macron is in Mayotte seeing the damage from the devastating cyclone. He declares a day of national mourning, but many residents are angry at what they see as neglect of what is legally part of France.
El Salvador gets a multibillion-dollar deal with the IMF, but in return for dialling down its use of Bitcoin
Plus, a successful play with a ten-year run on the London stage - and it's about financial services!
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