State-Directed Capitalism Most governments around the world use policy to spur specific business winners in their economies. Canada will provide nearly $800 million to its oil and gas industry this year. The EU subsidizes Airbus but is also providing $2 billion in loans and grants to get its electronics industry more competitive. The U.S. issues loans to small businesses and has the Export Import Bank as well as the Commodity Credit Corporation. Simon Evenett at the University of St. Gallen calculates that 73 percent of global trade is distorted by government measures. China is not unique but is more aggressive about it. In fact, the West is suspicious of government involvement. Meanwhile, China distrusts the private sector; thus, i...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.