Economics - Germany: Chancellor Merkel challenges Nobel economists

Angela Merkel

For the fifth time, winners of the Nobel Prize in Economics have come together to discuss current issues in their field. The conference is held every three years in Lindau, a small, scenic town on the shores of Lake Constance near the Austrian and Swiss borders. This year, the meeting included more than 400 young economists and a special guest - German Chancellor Angela Merkel.

"Austerity blasts Europe", "Economic growth versus sustainability", "Is ethical thinking foreign to economics?" - provocative placards in garish colors were hung along the streets leading to the convention center. Representatives of NGOs like Attac, which is critical of economic globalization, have been holding demonstrations in Lindau. Many are dissatisfied with the policy prescriptions of leading mainstream economists. They see them as responsible for out-of-control financial markets and high unemployment.

Angela Merkel noted that she was herself trained as an academic scientist - she has a doctorate in physical chemistry. She knows, she said, that there are no perfect answers. Especially not in politics, which has to focus on the interests of the citizenry, rather than on economic theories. She said that "Homo economicus" could not consist simply of economic expertise, and made a pitch for her political approach.

"For us, it's about understanding the expectations and ideas of the citizens about what a good life is," she said. That's what her priority is, and she wants economists to address this as well. She wants new economic welfare indicators developed that are different from traditional measures like gross domestic product (GDP) or unemployment rates.

Asked about his views on Europe's economy, Stiglitz admitted that income distributions are less unequal there than in the US. In Germany or Scandinavia, there is a strong middle-income class. But in Europe, too, the incomes of the wealthy have risen disproportionately to those of the rest of the population.

Read more: Chancellor Merkel challenges Nobel economists | Business | DW.DE | 20.08.2014

Norway: Chinese dissident Liu Xiaobo wins Nobel Peace Prize - Obama and other world leaders call for his release from prison

Imprisoned Chinese dissident Liu Xiaobo is this year's winner of the Nobel Peace Prize. Liu is a 54-year-old literary critic and democracy activist who was awarded the prize for "his long and non-violent struggle for fundamental human rights in China," the Norwegian Nobel Committee said Friday.

The Chinese government reacted angrily to Liu's win. Chinese Foreign Ministry spokesman Ma Zhao Shu said the decision to grant the award to "a criminal" is a violation of the spirit of the Nobel Peace Prize. China called in Norway's envoy to the country to protest the award, while in Oslo, the Chinese ambassador met with a Norwegian Foreign Ministry official.

Mr Liu, 54, was a key leader in the Tiananmen Square protests in 1989.
Last year he received an 11-year sentence for "inciting subversion" after drafting Charter 08 - which called for multi-party democracy and respect for human rights in China.

US President Barack Obama called for Mr Liu's immediate release.

"We call on the Chinese government to release Mr Liu as soon as possible," Mr Obama, last year's Nobel Peace Prize winner, said in a statement.

In New York, UN Secretary General Ban Ki-moon said the award to Mr Liu was "a recognition of the growing international consensus for improving human rights practices and culture around the world".
German government spokesman Steffen Seibert said China should free him so he could attend the ceremony.
France's Foreign Minister Bernard Kouchner also welcomed the award and also called on China to release Mr Liu.

News of the Noble prize for Mr Liu was blacked out by Chinese state-owned media, and government censors blocked prize reports from the internet.

For more: CBC News - World - Chinese dissident wins Nobel Peace Prize