Search

Begin New Search Topic Economic Growth Political Geography Asia

111. Renminbi Controversies

Author:
Morris Goldstein
Publication Date:
07-2006
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
No topic in international monetary economics has probably been more debated over the past three years than what should be done about China’s currency regime and about the exchange rate for the renminbi (RMB). In this article, I take up three questions that are at the center of the current debate, namely: (1) Is the RMB undervalued and, if so, by how much? (2) Would an RMB appreciation of 20–25 percent be particularly harmful for China’s economic growth and development, as well as for its domestic financial stability? (3) Was the July 21, 2005, currency reform a large or tiny step forward?1
Topic:
Economics, Economic Growth, Currency, and Financial Stability
Political Geography:
China and Asia

112. Five Persistent Myths About China's Banking System

Author:
Jonathan Anderson
Publication Date:
07-2006
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Of all the various topics and issues facing observers of the Chinese economy, it is safe to say that none arouses more spirited debate than the role of the financial system, and in particular the state of Chinese banks. Is the mainland on the verge of a financial crisis? Has the recent economic overheating created a new flood of bad loans? Do banks know how to allocate capital, or are they simply quasi-fiscal agencies acting at the mercy of the government? And does the rapidly opening financial system represent a gold mine or a “black hole” for foreign investors? The answers to these questions are not always straightforward, but in our experience the truth lies very much away from the extremes so often presented in the financial press. Chinese banks are by no means “out of the woods,” first and foremost because they remain stateowned institutions, but they are now well advanced from their situation only a decade ago. This means that the economy is protected from the risk of a financial crisis—but, on the other hand, the banking sector is more a sunset industry than an exciting growth sector. There are a number of myths about banks and the financial system in China but the following are the most important and most persistent: (1) China’s cost of capital is far too low; (2) Mainland banks are unreconstructed quasi-fiscal agencies; (3) Bank recapitalization is a sham; (4) Banks are already “out of the woods”; and (5) The Chinese banking system is an exciting growth industry. Let us now examine these five myths.
Topic:
Economics, Financial Crisis, Finance, Economic Growth, and Banking
Political Geography:
China and Asia

113. A Half-Century of Development

Author:
Richard N. Cooper
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Development as a global policy objective dates from the 1940s. Relative to expectations then, the world economy performed outstandingly well during the second half of the 20th century. Worldwide growth in average per capita income exceeded two percent a year (historically unprecedented), many poor countries became rich, infant mortality declined, diets improved, longevity increased, diseases were contained if not vanquished. Poverty on the World Bank definition of $1 a day (in 1985$) declined dramatically, and the number of persons in poverty was halved despite a more than doubling of the world population. Variations occurred over time and space, with rapid growth being concentrated in Europe and Japan early in the period, then moving to east Asia, southeast Asia, and south Asia. Growth in the 1950s and especially the 1960s exceeded that in later decades. Examples of high growth could be found in every continent, but on average sub-Saharan Africa fared much less well than other regions. Declines in national per capita income were rare, and concentrated in Africa. Civil disorder was a common but not the universal cause of low growth. Median world income gained relative to the well-off, but both spurted ahead of the poorest. World exports grew more rapidly than output, often leading the way. Many countries gradually shifted their exports from primary products to labor-intensive manufactured goods, and as development proceeded to more sophisticated manufactures and services. The fraction of the labor force devoted to agriculture declined significantly. One country after another achieved social stability, created the right incentives for effort and risk-taking, and engaged constructively with the world economy, which facilitated economic growth. Those that lagged failed to meet one or more of these conditions. Civil and political liberties also spread during this period, although less certainly and less securely. On the whole, it was a good half century for mankind. The substantial poverty and misery that still exists should not lead to neglect or even denial of these achievements.
Topic:
Development, Inequality, Economy, and Economic Growth
Political Geography:
Africa, Japan, Europe, and Asia

114. The Political Economy of Regional Development and Cooperation in the Pacific Basin, with Special Reference to APEC-A Rapporteurs' Report

Author:
Joseph Stevano and William Barnes
Publication Date:
04-1996
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
The papers and discussion summarized here were presented at the workshop “The Political Economy of Regional Development and Cooperation in the Pacific Basin, with Special Reference to APEC,” which was held at the Kellogg Institute, 12–14 October 1995. Some of the papers presented, including those by Yoji Akashi, Brian Job, and Clark Reynolds, will also be published in their entirety as part of the Kellogg Institute Working Paper Series. The United States, Canada, Japan, Korea, Indonesia, the Philippines, and many other East Asian countries all belong to the Asia-Pacific Economic Cooperation (APEC), and a distinctive feature of the workshop was that it consisted of experts from both sides of the Pacific. The result is a comprehensive look at the issues of trade and development in this region. Yorizumi Watanabe pointed out some tensions between regional and multilateral trade agreements. Satoshi Hanai’s paper analyzed the current Japanese recession; the papers by Akashi, Tsutomu Kikuchi, and Job focused on APEC, the former two from an Asian perspective, the latter from a North American—which provided a provocative contrast between different explanations and interpretations of the exact same events. Shozo Inouye analyzed Japan’s contribution to human resource development throughout the Asia-Pacific, while Michael Plummer and Reynolds analyzed the economic impact of economic integration in this region.
Topic:
Development, Political Economy, Regional Cooperation, and Economic Growth
Political Geography:
Asia

115. Asian Economic Success and Latin American Failure in the 1980s: New Analyses and Future Policy Implications

Author:
Ajit Singh
Publication Date:
03-1994
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
A striking feature of the world economy during the last decade has been the collapse of economic growth in Latin America whilst industrialization and development have proceeded apace in the Asian countries. This paper first assesses alternative explanations of the Asian economic success and the Latin American failure during the 1980s. Secondly, it examines the related question of the long-term development strategies followed by the outstandingly successful East Asian economies. The paper arrives at rather different analyses and policy conclusions on these issues from those of the international financial institutions and the mainstream economists.
Topic:
Economic Growth, Economic Development, and Financial Institutions
Political Geography:
Asia and Latin America

116. The State, Markets, and Development: A Rapporteurs' Report

Author:
Enrique Dussel Peters and Matthew A. Verghis
Publication Date:
06-1993
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This report summarizes the papers and discussions from a conference held at the Kellogg Institute on "The State, Markets and Development." The first section addresses theoretical issues while the second presents the case studies discussed at the conference.
Topic:
Development, Markets, Economic Growth, and State
Political Geography:
Asia, South America, Central America, and Caribbean