Millions of people around the world are heading to the polls this year, with plenty of pivotal presidential elections taking place. Along with potentially more than 100 million eligible voters in America electing a president in November, countries such as France, Venezuela and Kenya also hold presidential elections.
A few have already taken place this year. In January, incumbent president Ma Ying-jeou was reelected in Taiwan. According to a Financial Times article, he was the preferred candidate for many in China and the U.S., as Ying-jeou, over recent years, has created “stability across the Taiwan Strait by deepening economic ties with China while avoiding sensitive political and sovereignty issues.” His reelection means that the country will likely continue the constructive path of encouraging investment between Taiwanese and Chinese businesses.
Vladimir Putin’s return to power in Russia was certainly controversial and created some political upheaval. Prior to the election on March 4, protestors took to the streets after Putin acknowledged that he had planned all along to swap seats with Former President Dmitry Medvedev.
Both Mexico and South Korea determine their respective presidents by popular vote, but only for a single term. Whereas Mexico’s Felipe Calderon stays in office for six years, South Korea’s Lee Myung-bak remains president for five years. This inability to be reelected could inhibit the president’s effectiveness to carry through with policy changes.
For global investors, it’s important to keep track of the presidential elections happening all around the world, as leaders can significantly affect their countries’ policies. And as our investment process indicates, we believe government policies are precursors to change. The Economist, which provided inspiration for U.S. Global’s Election Interactive, discussed how the leaders who run the world could change this year, along with the ideas: “A battle of ideas is under way … From Shanghai to Mumbai and Sao Paulo, governments that removed economic restrictions have made their citizens richer.” At the same time, the magazine points to the possibility of “ideological conflicts” too, making for an interesting year in global politics.
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