My commendations to Asian Affairs and David Watts for his perspicacious piece in September's issue about the power of the international credit rating agencies. The arbitrary nature of their economic judgements makes these agencies suspect as 'honest brokers'. The influence they exert on financial markets carries over into the stock markets and, because they are profiteers themselves, they could be acting in their own interests through hedge fund or share dealing arrangements, unofficially. The fact that they have recently annoyed the US Government with an arbitrary and possibly, unmerited, downgrading of America's creditworthiness may cause the US and other governments to review financial policies regarding the regulation of this so-called market-mechanism. Like the big banks, they have become too big and it was encouraging to learn in the article that their advice (demands) are being resisted by European governments. Dun & Bradstreet was formed in the 19th century as an assessment agency for commercial businesses but they have been overtaken by other ratings firms whose growth and influence over the past few decades is now more deeply concerning for governments rather than for struggling commercial enterprises. If an agency decides a country is a bit less creditworthy and gives it a downgrade its economy suffers. This depresses its ability to trade and the downgrade acts as the trigger for the consequent economic downturn. In effect, the agency becomes the instrument of a self-fulfilling prophesy. One wonders how do they make the billions of dollars   of profits quoted by David Watts   and, more importantly, what proportion of these super profits are made entirely from speculative dealing themselves?

Paddy Flanagan
Dublin

The Power of the Common Man

Congratulations to AA for the honest assessment of Anna Hazare's campaign in September's editorial. This common man has frightened the 'powers that be' and it is a credit to India's democracy that he was able to act as a popular catalyst for the silent majority who want an end to public and state corruption. In other countries in the region, he would have been killed or incarcerated for promoting such an ideal. Happily, in India, people are free to speak and to agitate and India's poor have lined up behind Hazare and his campaign. The authorities were wise not to create a national catasthrope out of a constitutional dilemma. It is not surprising that Marxists and Fascists have jumped on the Hazare bandwagon, because populism appeals across the political spectrum, but it is the less politically enlightened masses of India's poor who gave him his strength. It is not surprising that he is being likened to Ghandi.

Martin Hunter
Brighton
England

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