Almost 20 years ago, the World Bank released a groundbreaking report – The East Asian Miracle – that called worldwide attention to the economic success of eight economies in the region, leading to a discussion on the extent to which policies followed by them could be replicated.
Financial Markets…US treasuries gained and the benchmark 10-year bond yield edged down 1 basis point to 1.66%, after rising as high as 1.7% earlier, while the 30-year bond yield slid by 2 bps to 2.83% in early Friday session after a government report on wholesale price in September showed domestic inflation remained muted.
Gross Domestic Product, better known as GDP, is the market value of all final goods and services produced within a country in a given period. That's why GDP per capita is widely used as a summary indicator of living standards in a country. No wonder we keep our eyes closely on its evolution and compare its levels among countries.
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In this digital age, it’s easy to forget that there is a staggering amount of physical goods moving across the globe. Most trade—80 percent by volume—moves through seaports. Trade in developing countries makes up a good chunk of the total, and is growing fast. Handshake, IFC’s quarterly journal on public-private partnerships (PPPs), reports trade in developing countries is growing at nearly 14 percent.
And a lot of this trade is happening in Asia. In its June 21, 2012 issue, the Economist reports that the center of gravity of cargo trade is shifting from Europe to Asia. So it should come as no surprise that Asia is leading investment in seaports. Handshake reports that from 2000-2011, the East Asia Pacific region accounted for nearly $14 billion—32 percent—of private investment in seaports, mainly from China. The Philippines and Singapore are also major Asian investors in seaport projects.
Much of this investment comes through PPPs. Does this really make a difference? I’d say it does. Private sector financing and expertise make seaports and shipping more efficient. This in turn benefits emerging markets, which are becoming more and more engaged in global trade.
Could seaport investments be a predictor of future trends in trade? If so, Asia will become even more of a trade hotspot than it is today.
For further information, read Issue #6 of Handshake: Air & Sea PPPs.
This weekend I drove by a Popularise sign and wondered what it meant. I learned later that a local commercial real-estate investor, Dan Miller of WestMill Capital, has been using Popularise to encourage communities to share their ideas about possible development ideas. This is a great way for “grassroots” brainstorming on commercial development.
In an article in The Washington Post about this phenomenon, Dan Miller states, “Most people…don’t get a say in how their neighborhoods take shape. Popularise is one solution to … a "broken community engagement" process…In [Advisory Neighborhood Commission] meetings, you have a vocal minority that dominates…You can have a much broader discussion with thousands of people and have it be dynamic. Popularise is the 21st-century version of a community meeting.”
A daunting development challenge will confront us for the next decade: More than 1 million jobs per month – every month, for a decade or more – will need to be created to raise the living standards of the 2.6 billion who live on less than $2 per day, and the billions who will soon try to enter the paid workforce amid one of the greatest demographic surges in human history. Job creation in the public sector is expected to be flat, at best, so most of the needed jobs will have to be created by the private sector. But how?
Focusing on the macroeconomic agenda is necessary but insufficient. Most countries have rolled out macro-level reforms, but policymakers increasingly argue that the macro policy agenda must be complemented by targeted growth programs focusing on specific industries and value chains. Policymakers urgently seek practical solutions to meet the job-creation challenge.
Today in Singapore, MIGA and IE Singapore co-hosted a seminar:"Managing Global Political Risks: Old Risks, New Moment."
After the welcome speech by IE's Assistant CEO Terence Seow, Michel Wormser, MIGA's Vice President and COO, delivered the keynote speech, which touched upon the current global economic turbulence, potential investment opportunities for Asian investors, the perception of risks, and what role the World Bank Group can play in facilitating private capital into productive projects. Michel noted that—while he understands that many Asian companies tend to invest in nearby countries—there are also plentiful of opportunities in Africa and Latin America.
I pay through the nose for health insurance for my family, and I’m not happy about it. As a U.S. citizen, I don’t have the luxury of government-backed healthcare. Since I’m technically self-employed, I have to pay the full premium myself. Want some figures? It costs me $830 a month for a family of four, with a high deductible. Besides being expensive, it takes a huge effort to deal with insurance issues, and I find that my provider is expert at finding reasons not to reimburse me for medical expenses. This is chewing a gaping hole in my budget. The only way I’ll ever get value for my money is if I’m hit by a bus.
Last week, I traveled to New York City to attend the first International Summit on the Teaching Profession hosted by the US Department of Education, the OECD, and Education International, a global teachers union. Of the 16 countries represented, all were top-performers in the international PISA tests, or rapid improvers, such as Poland and Brazil. U.S. Secretary of Education Arne Duncan called the meeting to learn from what other countries are doing to improve teaching and learning, a sign that not only is this task complex and challenging, but that it is critical to countries at all levels of development.
So how do these top-performers and rapid-improvers manage their teaching forces to achieve high learning outcomes? The goal of the Summit was to have frank and open discussions about what works. Each country’s delegation included both government and teacher representatives, thus recognizing from the start the need for collaboration in the design and implementation of teacher policy reforms.
That is how Mr. John Suffolk, former UK CIO, began his keynote address. So why, you might ask, do we keep on trying to re-invent the wheel?