|A challenge for Chinese businesses is to re-capture the vast domestic market owing to the recent food scares that have seriously undermined the domestic brands.|
After several high-profile food safety incidents, according to one recent survey, around 64% of Chinese consider food safety as the number one priority that affects their daily lives and requires immediate action by the government.
The Chinese government is taking these concerns very seriously and has launched important reforms in its system of food control. It promulgated a new Food Safety Law in 2009, and created a new food safety authority in 2013 to deal with these issues. These reforms are now rolling out to provincial and local levels. These reforms will eventually affect more than one million state officials, restructure more than a dozen government ministries, and revise more than 5,000 regulations. The reforms will result in a complete overhaul of the food control system and introduction of new global best practice policies for food safety.
In 2030, more than 300 million Chinese are expected to have moved into cities. By then, 70 percent will live in urban settings. Given China’s size, it will mean that one in six urban dwellers worldwide will be Chinese. The challenges coming with that demographic shift are already visible and well known, in China and beyond.
Urbanization is a global trend. So when we think about new approaches to urbanization here in China, we believe that they are of value for other countries facing similar issues. In other words, China’s success in urbanization could pave the way for global rethinking on how cities can be built to be healthy, efficient, and successful.
East Asia economies are projected to grow by 7.8 percent this year, outpacing last year’s growth and potentially boosting the world economy, according to a new report by the World Bank Group. But World Bank Vice President for East Asia and Pacific, Axel van Trotsenburg, said in order to maintain sustained long term growth, East Asia governments must create jobs and improve infrastructure.
|Noel Aspras in the Philippines says that "even the lowliest of farmers owns a cellphone now" because it has become a necessity. Watch the video below.|
When I lost my mobile phone two years ago, I felt dismembered. After all, my cellphone was constantly by my side, serving as alarm clock, calendar, and default camera for those ‘Kodak’ moments you couldn’t let pass. It was also a nifty calculator that I turned to when splitting restaurant bills with friends.
After grieving the loss of my “finger” for two days, I pulled myself together and got a new, smarter phone that allowed for faster surfing on the web, audio recording and a host of other functions that, well, made me quickly forget the lost unit. A blessing in disguise, I told myself.
So when no less than a farmer from Pagsanjan in the Philippines’ Laguna province told me that mobile phones were “no longer a luxury, but a necessity,” and added that “even the lowliest of farmers riding on a carabao (water buffalo) owns one,” I couldn’t agree more.
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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.