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71. Resurgent Asia: Diversity in Development

Author:
Deepak Nayyar
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
In 1820, Asia accounted for two-thirds of world population and over half of world income. The subsequent decline of Asia was attributable to its integration with a world economy shaped by colonialism and driven by imperialism. By 1970, Asia was the poorest continent in the world, marginal except for its large population. Its demographic and social indicators, among the worst anywhere, epitomized its underdevelopment. A deep pessimism about Asia’s economic prospects, voiced by Gunnar Myrdal in Asian Drama, was widespread at the time.
Topic:
Economics, History, Economic Growth, and Economic Transformation
Political Geography:
Asia

72. Redefining Liquidity for Monetary Policy

Author:
Kyunghun Kim, Il Houng Lee, and Won Shim
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This paper proposes a monetary aggregate “Liquidity” that could serve as a useful indicator for gauging the appropriateness of monetary policy. If liquidity rises above a certain threshold, it is signaling that monetary policy is losing traction due to structural and other impediments even when the inflation gap remains open. This indicator supplements the financial cycle approach but adds value by providing a benchmark that is derived from the national account, and not based on its own trend. Over the last two decades, each time this measure rose above the threshold range, it was followed by a decline in GDP growth. The latter was greater when accompanied by a high physical asset value to GDP, e.g., an elevated property market.
Topic:
Monetary Policy, GDP, Economic Growth, Property, and Liquidity
Political Geography:
Asia, Korea, and Global Focus

73. Economic Regionalism is Key to Openness and Growth: An ASEAN Perspective

Author:
Sanchita Basu Das
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The 10 members of the Association of Southeast Asian Nations (ASEAN) are involved in several regional economic arrangements, not only their own ASEAN Economic Community (AEC), but also those in a bigger geographic area, such as the ASEAN+1 Free Trade Agreements (FTAs) and the Regional Comprehensive Economic Partnership (RCEP). A subset of these countries are partaking of Asia-Pacific deals, namely the latest Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the Asia-Pacific Economic Cooperation (APEC). Some are pursuing bilateral deals in pursuit of deeper economic cooperation. Finally, all ASEAN countries are members of the Belt and Road Initiative (BRI), which although not labelled a trade agreement, is concerned with trade-related measures including transport infrastructure, policy coordination, economic connectivity through trade and investment, customs modernization, financial cooperation, and people-to-people linkages. A common feature of all these trade agreements is that they are not just focused on removing restrictions on trade, i.e. lowering import tariffs and quotas, but are much more comprehensive and include issues like trade in services, investment, labor, intellectual property rights, regulatory standards, and health and safety rules. All of these agreements deal with cooperation measures beyond national borders and can be called deep economic cooperation. They go beyond the WTO framework and are often labeled “new regionalism,” understood as state-led projects in the context of global developments. The extent of deepness varies, mainly depending on the participating countries’ development stage and the economic competitiveness of domestic sectors. What do the ASEAN countries aim to achieve? Theory has elucidated that governments have motives ranging from politics to economics when entering an economic cooperation arrangement. The political motives could be confidence building, i.e. if an international relationship was blemished by a history of conflict, economic cooperation can introduce a process of confidence building.3 For smaller countries, it could be seen as a means to increase bargaining power with the international community. Countries often see economic cooperation as a means to hasten their domestic economic reforms so as to increase attractiveness to foreign investors.4 Governments could follow a regionalism exercise also to defend domestic interests that are threatened by regionalism elsewhere. As for the economic motives, countries prefer cooperation among a limited number of players as it enables continued protection in a bigger geographical space and shuns producers from non-members. This enables them to exclude “politically sensitive,” noncompetitive domestic sectors completely from trade liberalization. Finally, regional economic arrangements are essential for creating economies of scale for producers and offering a larger market for consumers, which increases attractiveness to potential investors. This chapter elaborates on ASEAN’s perspective on economic regionalism in the Asia-Pacific. It examines key initiatives that ASEAN countries are currently negotiating or implementing in their national economies, discusses economic and strategic motives, and views the future of regionalism from an ASEAN perspective. It concludes that although the ASEAN countries are facing some uncertainties in their pursuit of economic regionalism, they will continue to support the endeavor as it serves their economic structure of openness. The countries have realized the benefits of economic integration in terms of confidence building of investors, thereby bolstering economic growth.
Topic:
Economics, Treaties and Agreements, Economic Growth, and Regional Integration
Political Geography:
Asia and Southeast Asia

74. Making Korea Grow Again: Rebalancing the Moon Jae-in Economic Agenda

Author:
Choong Yong Ahn
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Moon Jae-in administration in South Korea has taken a two-pronged approach to ensure urgently needed job creation and inclusive growth. Although measures towards each set of economic policies have been implemented since Moon took office in May 2017, what’s often referred to as “incomeled growth” has been prioritized over innovative growth. The income-led growth model is largely driven by domestic consumption through pro-labor distributional policies including a wage hike to raise the disposable income of low- and middleincome individuals, thereby triggering equity with growth. Focused more on the supply side, the innovative growth model encourages startups to create jobs and innovate. It is a great challenge for Korea to pursue growth and equity through both sets of policies. After a year in office, the Moon administration’s economic agenda, often referred to as J-nomics, has not fully produced the intended policy objectives in terms of job creation and growth. To mitigate a declining potential growth rate and pursue robust and inclusive growth, the twin policies need to be rebalanced, reprioritized, and interconnected in a mutually reinforcing manner to empower the private sector to play a bigger role. As a mid-sized open economy, Korea requires global market competitiveness on the supply side to create decent jobs by buoying entrepreneurship and innovation. Structural reforms in the labor market combined with deregulations necessary for the advent of disruptive 4th-industrial-revolution technologies must be expedited. Furthermore, a new business ecosystem in which win-win collaborations between globally-oriented conglomerates and small businesses must be encouraged to replace a zero-sum business culture.
Topic:
Economics, Science and Technology, Global Markets, and Economic Growth
Political Geography:
Asia, South Korea, and Korea

75. BALANCING AGAINST CHINA WITH THE ASIA-AFRICA GROWTH CORRIDOR: AN INDIAN-JAPANESE INITIATIVE TOWARDS THE INDO-PACIFIC

Author:
Carlos Eduardo Carvalho and João Paulo Nicolini Gabriel
Publication Date:
10-2018
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
The launch of a vision document for Asia-Africa Growth Corridor (AAGC) at the African Development Bank meeting in Gujarat in 2017 reveals an important aspect to grasp the awkening of a strategy to face China’s rise. This conference of the African Development Bank (AfDB) is a landmark for this initiative. This bank is a mechanism for economic and social development with the participation of non-African members (e.g. China, India, Brazil, the United States, and Japan). The main contributors to the African Development Fund -linked to this bank -are the United Kingdom, the USA and Japan. Beijing does not figure among the most influent members of this organization. Thus, it was an opportunity for think tanks, supported by India and Japan, to introduce the idea of a corridor aimed to link Asia to Africa in order to increase co-operation in agriculture, social development and technology sharing.
Topic:
Development, International Political Economy, International Trade and Finance, Economic Growth, Banks, Trade, Economic Development, Trade Policy, and Economic Cooperation
Political Geography:
Africa, Japan, China, and Asia

76. China should address downward pressure in 2018

Author:
Qiyuan Xu
Publication Date:
01-2018
Content Type:
Policy Brief
Abstract:
In 2017, the Chinese economy rebounded more significantly than expected. There is now general anticipation that growth in 2018 will fall slightly compared with that of 2017, but that it will remain stable at 6.5 percent or above. However, there are some factors that could lead to downward pressure on investment and consumption in 2018. First, investment growth has shown negative growth recently. Judging from the notional fixed-asset investment, the year-on-year growth in the first 11 months of 2017 was 7.2 percent, 1.1 percentage points lower than in the same period of 2016. Due to the significant increase in producer price index (PPI) growth in 2017, the drop in real investment growth in 2017 is quite worrying. The real investment growth rate in the first three quarters of 2017 dropped to 2.2 percent year-on-year, while in the same period of 2016, this figure was 9.5 percent year-on-year. On a quarterly basis, the real investment rate in the third quarter of 2017 fell by 1.1 percent year-on-year, the first time that negative growth has been recorded in more than a decade.
Topic:
Economy, Economic Growth, and Investment
Political Geography:
China and Asia

77. The Reality of Updating China’s Nationally-determined Contributions:Effects of Long-term Economic Growth and Global Carbon Emissions Budget

Author:
Ang Zhao
Publication Date:
09-2018
Content Type:
Journal Article
Journal:
The Journal of Diplomacy and International Relations
Institution:
School of Diplomacy and International Relations, Seton Hall University
Abstract:
In June 2015, prior to the COP21 talks in Paris, China committed to peak its carbon emissions around 2030. For many, China’s commitment was an aggressive move to combat climate change, demonstrating its leadership in the global climate engagement. Yet, more critical voices questioned whether China’s commitment adequately considered global average temperature increase target of 2 degrees Celsius within this century. As the upcoming COP24 talks in Katowice, Poland draw closer, participating countries delegations may focus on the main negotiation objective, an implementation plan of the Paris Agreement. However, in this conference there will be plenty of discussion on how big economies, like China, set Nationally Determined Contributions (NDCs) targets, not only according to their own economic and technological capacities but also based on the precondition of meeting the global carbon emission goal suggested by the Paris Agreement. The following piece will investigate economic factors behind China’s predicted carbon emissions (including GDP, urbanization, and energy consumption), as well as global predicated carbon emissions in 2030 and 2050 to discuss whether China can promise to peak much earlier and begin decreasing its total carbon emissions around 2025.
Topic:
Climate Change, Treaties and Agreements, Economy, Economic Growth, and Carbon Emissions
Political Geography:
China and Asia

78. Engines without Drivers: Cities in India’s Growth Story

Author:
Partha Mukhopadhyay
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
It is now almost axiomatic that cities are the engines of growth. Historically, federal support programmes have focused on rural areas, but over the past fifteen years, the need to devise such programmes for urban local bodies has come to be recognised, with JNNURM in its various forms, being the most visible early manifestation. This trend has continued, even strengthened, in this government and among the menu of urban support programmes on offer from the Government of India, the vision of the city as the engine of growth is most clearly evident in the Smart City Mission, with its focus on area based development – like an engine within the city. Yet, even in the mainstream economics literature, while there is evidence for cities as places of higher productivity, there is less evidence for cities as drivers of growth – with learning being the primary driver and urban primacy being an important obstacle. The primary questions are whether cities are places of learning, whether there are identifiable mechanisms of such learning and the kind of city institutions – economic, social and political – that facilitate such learning. This paper will interrogate the empirical characteristics of such urban institutions in India in the context of the theoretical literature and learning mechanisms that emerge from international evidence. In particular, it will argue that the nature of the labour market, which is largely contractual, the transfer of rural fragmentation in social relations to cities and the absence of city-level political agency, all reduce the potential of the city as a location of learning economies. For cities to even have the possibility of being engines of growth, we need to ensure that drivers of these engines are in place and we have a mechanism to think about paths to follow.
Topic:
Development, Government, Urbanization, and Economic Growth
Political Geography:
South Asia, India, and Asia

79. Integrating Urban Development and Climate Objectives: Insights from Coimbatore

Author:
Ankit Bhardwaj and Radhika Khosla
Publication Date:
07-2018
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
Indian cities routinely make decisions on land use, housing, water, transport, economic growth and waste management that have implications for climate change mitigation and adaptation. Aligning these sectoral actions with climate goals involves understanding how infrastructural systems interact and how these choices address both development and climate objectives. City governments, as managers of these various infrastructure systems, can co-ordinate such decision-making. However, so far, this is largely ad hoc. We show how cities can use a ‘multiple objective’ approach to systematically examine, and make explicit, the linkages between local objectives, climate change mitigation and adaptation across their planning portfolio.
Topic:
Climate Change, Development, Water, Economic Growth, Urban, and Sanitation
Political Geography:
South Asia, India, and Asia

80. Midcourse Manoeuvres:Community strategies and remedies for natural resource conflicts in Myanmar

Author:
Meenakshi Kapoor, Nwe Ni Soe, and Vidya Viswanathan
Publication Date:
06-2018
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
Land transformation has been at the centre of economic growth of post-colonial, Asian nation-states. While their political reforms and economic policies have focused on land governance, the outcomes have resulted in promoting privatisation and speculative business interest in ecologically sensitive landscapes that are also under diverse forms of common use by resource-dependent communities. A three-year study undertaken to understand community-level responses to land use transformation in India, Indonesia and Myanmar shows that the current scale and approach of land–intensive development in these large democracies is facilitated by fast-paced, top down policy changes. These policies are ‘stacked’ (when multiple layers of current and revoked laws are simultaneously in use) rather than integrated and their implementation is the responsibility of various authorities and agencies that overlap. Growing private investments in land that has remained within varying degrees of state control have changed the way land is managed. Land has become increasingly securitised and ‘out of bounds’ for small farmers and other land-users with or without recognised forms of ownership and use rights. Land conflicts are caused due to coercive acquisition processes or land grabs, unlawful operations of projects and long pending remedies to social and environmental impacts. In many instances, these conflicts begin even before the final decisions on projects are taken and persist for years. Highly capitalised land use change brings powerful investors and corporations, governments and local communities in unequal and precarious arrangements of negotiation and confrontation. Citizens and communities affected by land use change, use varied strategies such as administrative complaints, protests, litigation, media campaigns and political advocacy, and engage in improving project design and implementation, increase compensations, restore community access to resources and get a review on the operations of harmful projects. These are done under conditions of political intransigence and criminalisation of those who speak up. While all three countries have recognised land conflicts and their impact on development plans and proposals, they are yet to give affected people a formal and effective role in land and natural resource governance. This is the study report on Myanmar.
Topic:
Privatization, Natural Resources, Governance, Economic Growth, Land Law, and Land Rights
Political Geography:
South Asia, India, Asia, and Myanmar