|This is my last week in the World Bank, after working at the institution for 20 years, the last five as country director for China and Mongolia.|
|Better materials and student participation characterize the READ schools project. (photo by Prateek Tandon)|
Imagine how the new Indonesia would prosper if everyone had affordable health insurance, every child completed secondary education and highways were in place connecting Indonesia’s three biggest cities: Jakarta, Surabaya and Medan.
This somewhat provocative question was the title of a conference hosted by Oxford and Standard Charter this week in London. My answer was: "No, not tomorrow; but yes, eventually – especially if China continues to vigorously pursue economic reform."
The reason that China cannot be the engine of global growth tomorrow is straight-forward. For the last decade an awful lot of the final demand in the world has come from the U.S. That era is over for the time being as U.S. households now concentrate on rebuilding their savings. No one country can fill the gap left by the slowdown in U.S. consumption: Japan, Germany, and China together have less consumption than the U.S., so no one of them can replace the U.S. as the major source of demand in the world. It's not realistic to expect China to play that role. But we are probably moving into a more multi-polar period in which there is more balanced growth in all of the major economies.
I came across a small, but interesting online effort to raise donations for an organization that works to improve child literacy in Laos. Called Library for Laos, the effort aims to raise $5,000 by May 1– just five days after it started. The money raised is intended to go to Big Brother Mouse, a neat, Laos-based project that publishes, teaches and distributes books to children in a country they say desperately needs it.
It's a nice concept for a good cause, but what sticks out to me are the coordinators' clear attempts to use social media to spread the word about their effort. On their website, they bank on the ease of PayPal for donating money and the viral nature of social media: "How many people follow you on Twitter? How many friends do you have on Facebook? Let's see how valuable they are!" It's early to tell if they're succeeding. After the first day, they had apparently raised $500 dollars.
Either way, the endeavor highlights how social sites like Facebook, which permeates everyday life for many of us, can serve the world's poor. For example, you have the option to join various "causes" on Facebook. And on Twitter, information can spread like wildfire through retweets (rebroadcasting content to your own set of followers). What do you think? Would you ask your online friends and/or followers to donate money to a good cause?
(Found via: Escape the Cube). Image credit: rustystewart at Flickr under a Creative Commons license.
A few days ago, our country director David Dollar blogged about the two-sided picture we see when we look at China's economic growth. The economy saw very weak export demand, which partly carried over into weak investment in manufacturing and other "market-based" sectors. Continued growth in other parts of the domestic economy was supported by policy stimulus.
China has weathered the crisis better than many other countries because it does not rely on external financing, its banks have been largely unscathed by the international financial turmoil, and it has the fiscal and macroeconomic space to implement forceful stimulus measures. China’s government has made use of this policy space by pursuing pretty forceful fiscal and monetary stimulus. From early November last year onwards, the government's 10-point plan ("RMB 4 trillion package") is being implemented. This plan emphasizes infrastructure and other investment, financed in part by government budget spending, and in part by bank lending. And the government has taken some additional, more consumption-oriented measures.
|The Hebei province produces one-quarter of China's steel, and has felt sharply the country's slowdown in investment during the financial crisis.|