Focus Presentation

An age of non-conventional socio-economic interaction

The rise of Asia?  Global growth rate: 5.2%  Global per capita income: $10,000 Country

GDP growth (%)

China

11.4

Per capita income (USD) $5300

India

9.2

$2700

Singapore

7.7

$49700

Korea

5

$24800

Japan

2.1

$33600

Content

Asia before 1980s China:  the Cultural Revolution (1968-1978)  Socialist planned economy India:  Tight government control  No FDI allowed ASEAN:  Domestic unrest  Inter-country competition

Shanghai, China (1969)

What caused the boom?  Low productivity  High cost of production  Parallel market  Lack of international trade

Bombay, India (1971)

An era of change China

India

 Establishment of TVE  Household responsibility

 Concentrate on

    

system Pricing system created Less allocation of resources by the state Closing unprofitable enterprises Clearing insolvency of the banking system Denationalization of public utilities

capital- and technologicalintensive industries rather than lowskilled, manual cottage industries  Deregulation must be kept at a pace at which private sector = public sector  (PM: Jawaharlal Nehru

1984 Puxi, Shanghai

Barakhamba Road, Delhi

Establishment of SEZ (China)

Specialization of city

ASEAN  Association of Southeast Asian

Nations  Founded in 1967  10 member states: Malaysia, Indonesia, Thailand, Cambodia, Laos, Vietnam, Philippines, Singapore, Brunei  Free trade; Energy security; Climate change, etc

The impact China

India

 Poverty: 53%  8%  GDP: EUR80 

 Back-office research

EUR530  Industrialization  Improved infrastructure  Urbanization  Manageable society  Sanitation  More political influence

Microsoft Oracle  Business outsourcing HSBC British Airways

India

China

Regional economic interaction Whom are we doing business with? …and why?

Bangkok, Thailand

Who

Whom

What

China

Japan, Korea

Electronic appliances manufacturing

Philippines

Hong Kong, Singapore

Nursing; Domestic helper

Bangladesh

Pakistan

Garment; Textile

Thailand

Cambodia, Laos, Vietnam

Food

India

Bhutan, Nepal, Sri Lanka

Malaysia

Indonesia

Rubber; Coffee beans

What will halt the growth?

Kuala Lumpur, Malaysia

Furthermore…  Internal problems

Boarder disputes between China & India Persistent inflation  External challenges

An advancing Russia Global economic recession

Q & A

