In a pattern replicated across the world, China's voracious appetite for raw materials is helping push sub-Saharan economies to their fastest growth in three decades, and inexpensive Chinese-made products are suddenly available across the continent. Yet many Africans say the influx, while offering consumers more affordable goods, has not improved their economic situation and has hurt local companies.
East Asia and Pacific
Deloitte and Touche have a new report out, India and China: The Reality Beyond the Hype. While everyone seems to group the two Asian giants together, this report voices caution. They compare doing business in both countries, the foreign firms operating in each, the political relationship between the two, and what the future might hold.
"We usually do day and night surveys to see how crowded the street is before deciding to start selling in one," said Tabroh, a 60-year old seasoned stall owner in Ampera, South Jakarta. "All you need to do after you decide to stay in one place is contact the local district officer, and, you know ... give them a contribution," he said…
A new Chinese program sends 2000 scientists for two-year stints to regional governments where they are tasked with applying their science to tackle poverty.
The McKinsey Quarterly looks at the potential value of China’s emerging middle class. Some of their estimates:
New from the OECD: The Rise of China and India - What's in it for Africa? By the end they lean towards the conclusion that the “Asian Drivers’ rise in the world economy are largely positive for Africa.” The real determinant will of course be the wisdom of future policy decisions - this is where we need to focus. See a short summary or this policy insight note.
The Boston Consulting Group has a new report out, The New Global Challengers: How 100 Top Companies from Rapidly Developing Economies Are Changing the World.
Until recently, only a dozen or so companies based in rapidly developing countries could be described as emerging global challengers. Today there are hundreds, which is in line with the expectation that by 2050 China and India will be two of the world’s three largest superpowers…
Some weekend reading as I clean out the backlog: