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East Asia & Pacific is facing some great development challenges today: urbanization, protection of the environment, the need to find renewable energy sources and many others. This site wants to create a conversation around those important issues. More »

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Growth in China continues to influence East Asia’s economic recovery, two new World Bank reports say

Regionally speaking, developing countries in East Asia and Pacific have rebounded surprisingly quickly from the financial crisis and global recession. But according to a report just released by the World Bank, the regional economic picture isn’t as rosy when China is taken out of the equation. The latest East Asia and Pacific Update report, an assessment of the economic health of the region released every six months, is titled “Transforming the Rebound into Recovery.” The rebound, the report says, was driven in part by large and timely fiscal stimulus spending led by China and Korea. Still, despite the well-performing economies of Indonesia and Vietnam, developing East Asia excluding China is projected to grow at just around 1 percent in 2009. And for Cambodia, Malaysia and Thailand, GDP is contracting.

The China Quarterly Update – a separate report released at the same time as the latest regional assessment and focusing specifically on the Chinese economy – gives a more complete picture of why the country has seen such robust economic growth and what the future may hold. The Bank now projects China to see GDP growth of 8.4 percent for 2009, says the report. The report’s lead author (and blogger) Louis Kuijs wrote an accompanying blog post, which can be read here.

I really recommend taking some time to explore the findings of both reports by visiting the East Asia Update and China Quarterly pages, where you can also download high resolution graphs and watch video interviews with the economists. Also, you'll be able to ask two World Bank economists questions about the regional report in an online chat taking place Thursday, November 12, at 10 a.m. DC time (15:00 GMT or 11:00 p.m. in Beijing). Send your questions now for a better chance of getting them answered.

More Vietnam in pictures: fighting and mitigating natural disasters

As advanced by my colleague James a few days ago, here's a second slideshow on natural disasters in Vietnam, this time showing prevention and mitigation measures put in place across the country. Again, the photos are striking. And the actions, varied and ingenious.

 

Vietnam in pictures: The human toll of natural disasters

Some of my colleagues in the Vietnam office of the World Bank, working with Sai Gon Tiep Thi newspapers, recently organized a photo contest and exhibition on the topic of natural disasters. I thought I’d share some of the finalist entries, which are remarkable in their composition and relevance. It’s important to note that these pictures are not related to the disasters that have hit several East Asian and Pacific countries in recent weeks. Nevertheless, I highly recommend taking a few minutes to click through the pictures below, which focus on the human toll of natural disasters in Vietnam. Check back in a couple days for more photos from the same contest.

Philippines flooding: Responding to a disaster in real time


Flood affected areas in Metro Manila Region and Rizal Province, Philippines. Hi-res version. Canadian Space Agency Image processing, map created 29/09/2009 by UNITAR/UNOSAT.

Saturday morning, September 26, in Washington, DC: I am driving my daughter to class. I check my Blackberry and see an urgent email from Mukami, our Disaster Management team member in Manila, asking me to call her. (I need to stop reading emails at red lights. It’s probably against the law and it’s certainly obsessive).

I call Mukami on her cell-phone. She says that Manila has seen some of the worst flooding in its history after Typhoon Kestana dumped 16.7 inches of rain in just 12 hours on Saturday. The Government is immediately looking for satellite images to help in the search and rescue efforts. Some World Bank staff were still unaccounted for. She also asks about what other assistance the Bank can offer the Government in the aftermath of this disaster.

Regional Finance Roundup: Is East Asia leading the world out of the crisis?

Given that Asia is now widely seen as leading the world out of the crisis, it is fitting that the role of Asia was more prominently recognized in the global economic system in the recent G20 meeting held in Pittsburgh.  Since we last looked in July, the outlook for the emerging markets of East Asia has continued to brighten.  The latest regional forecasts come from the Asian Development Bank in its Asian Development Outlook (pdf) published last week.  It points to “the rapid turnaround in [Asia’s] largest, less export-dependent economies” and predicts that “the regional economy is now poised to achieve a V-shaped rebound.”  These are very positive words indeed!  As the graph below shows, the ADB has in fact upgraded its growth forecasts for a number of economies for 2009.

Although the signs are pointing upwards, performance is still mixed in a number of key areas.

Remittances to East Asian countries now expected to fall 6 to 8.8 percent in 2009

A few weeks ago, the World Bank’s migration and remittances team released its latest forecast of global remittance flows, indicating that even fewer migrants from developing East Asian and Pacific countries may be sending home money this year than they predicted in an earlier report. Remittances flowing to countries in the region are now forecast to fall by 5.7-8.8 percent in 2009, according to the report (pdf). Revised 2008 data show China, the Philippines and Vietnam are in the top 10 recipients of remittances among developing countries.

Interestingly, despite indicating falling remittance flows to the East Asia and Pacific region, the outlook states that South and East Asian countries have been relatively strong. There is, of course, a risk of a further slowing down. For example, remittance money flowing to the Philippines appears to still be growing this year. But such positive flows went from 14 percent year-on-year growth in 2007-08 to just 3 percent growth so far in 2009, according to the report.

The report’s authors write that there may be key risks that further threatening global remittance flows to developing countries – including a longer-than-projected financial crisis threatening jobs and income for immigrants in developed countries. However, they write, recovery may come by next year: “We expect that remittance flows to developing countries could decline by 7-10 percent in 2009, with a possible recovery in 2010 and 2011.”

What’s the significance of remittances? One notable example came from blogger Eric Le Borgne last April. Eric pointed out that remittances are a key factor to the economic health of the Philippines, as well as the country’s resilience so far during the global financial crisis.

Carbon Expo: A marketplace to finance environmental change

Carbon finance sounds boring and technical and not much fun. However, it actually does a lot of good and can help fund critical environmental preservation projects as well as introduce clean and renewable technologies in both developed and developing countries. I am not a carbon specialist but at present involved in organizing the World Bank's East Asia and Pacific Region's participation in next week's Carbon Expo, a global trade fair for CO₂ market participants. Doesn't really sound like a lot fun? Indeed, it's a lot of work.

Shifting wildlife baselines: For the sake of the future, listen to your grandparents

"I was swimming in the river near Godmanchester and I got the fright of my life when a large triangular dorsal fin broke the surface of the water just in front of me. It was so close I could have touched it."

The old fishermen proclaiming, "When I was young the fish used to be THIS big," need to be heeded – not ridiculed.

So said an old lady at my church in Cambridge, England, some 20 years ago when she found out I worked in biodiversity. She was recalling an event some sixty years before when she was a young girl. It turned out she was describing the dorsal fin of a massive European sturgeon, a prized source of caviar, and now virtually extinct in the UK. The wonderful old lady and I had different perspectives on the matter. To her the existence of the sturgeon at her local swimming hole was part of her personal experience, whereas to me it was a disconnected event in the foggy past. To her the long absence of seeing a sturgeon represented a loss, whereas to me it was a species I would never expect to see so close to my home because I knew they no longer exist. We had different baselines.

East Asian and Pacific countries look to China for possible recovery, says World Bank report

Despite a surge in joblessness and a regional drop of the forecasted GDP growth to 5.3 percent expected in 2009, developing East Asian and Pacific countries may be able to look to China for hope during the current global economic slowdown. That's according to the World Bank's April 2009 edition of the East Asia & Pacific Update, which was released today.

The latest half-yearly assessment of the region's economic health, aptly titled "Battling the Forces of Global Recession", says there have already been signs of China's economy bottoming out by mid-2009. China's possible subsequent recovery in 2010, concludes the report, could contribute to the entire region's stabilization, and perhaps recovery.

There are a number of ways to review the findings of the report on the World Bank's website. Head over to worldbank.org/eapupdate to view specific chapters or download the full report. For an intimate view of people who are being affected by the ongoing financial crisis in East Asian and Pacific countries – including Cambodia, Thailand, Mongolia and the Philippines – check out "Faces of the Crisis". You can also view hi-res graphs from the report here.

Also, check back here in the next day or so for blog posts written by World Bank economists based in Cambodia and Lao PDR.

UPDATE: For country-specific expert perspectives on the new World Bank repot, check out blog posts from World Bank economists based in Cambodia and Laos. Stéphane Guimbert considers what contraction might look like in Cambodia. And Katia Vostroknutova takes a look at Laos' economy, which is less affected by crisis, but faces the increasing challenge of sustaining growth during the crisis.

Regional roundup: Finance in East Asia – April 3

I'm sorry it has been a while since the last East Asia & Pacific regional roundup. A lot has happened, so let's get right to it. As usual, the downward trends continue across the region. The Asian Development Bank just came out with their Development Outlook report and their growth forecasts for this year for emerging markets are bleak – only 2.3% growth in Southeast Asia and 4.7% for the region. The average is pulled up by China, where ADB's estimate for growth is 7%, which is slightly above the World Bank's forecast of 6.5% for China.

The rate of change is dramatic since 2007 when the regional average growth rate was and average of 8%. The countries most dependent on exports were hit the hardest, such as Cambodia, Thailand, Malaysia, Korea, and China. Speaking of which to give the latest examples include Korea, where exports declined by 21% in March, but the good news was that this drop was less than the 26% decline in the first two months of the year. Korea also experienced a 10.3% decline in industrial output in February.