Economics: Asian Development - Essay Example

Economics: Asian Development Introduction Seventeen years after the fall of Berlin wall there is only one major area in the world where central planning is still seen as a way to achieve prosperity to the countries that receive foreign aid. Behind the aid wall that divides poor country from rich, the aid community is awash in plans, strategies and framework to meet the very real needs to the world poor. These exercises only make sense in a central planning mentality in which the answers to the tragedies of poverty are a large beaureucratic apparatus to dictate quantities of different development goods and services by administrative fiat. The planning mind set is in turn linked to previously discredited theories. Such as that poverty is due to a poverty trap which can only be alleviated by a large inflow of aid from rich country to poor countries. The aid inflow is of course administered by this same planning apparatus. This is a bad news for worlds poor as historically poverty has been ended by central planners. It is only ended by searches both economical and political who explore solution by trial and error. Have a way to get feedback on the ones that work and then expand all of these in an unplanned spontaneous way. Examples of searches are firms in private market and democratically accountable politician. There is a robust correlation between economic and political freedom nomic development on the other hand. Of course there are hard questions about directions of casualty and exactly which attributes of political and economic freedom are most crucial for development. However to deal with the 1st problem. Since researchers know a little bit about the determinants of bad govt studies can explore whether bad govt causes poverty. The research is less successful at identifying which aspect of bad govt matters such as democracy versus corruption vs. economic freedom. Different dimensions of good govt tend to come together in packages, so it is hard to tell which is causing economic development. This last issue is much harder to resolve but the correlation are at least supportive of strong theoretical priors that democratic and market accountability go with economic success not to mention the vast historical and case study literature that supports this conclusion. The variance of outcome is much higher at low levels of political and economic freedom than at high levels. For countries with nearly complete freedom all of them are rich within a narrow range. For countries with intermediate level of freedom there is a vast range of development outcomes. INDIA: THE PAST AND THE FUTURE A few years ago what most people had in mind when they thought of India was land of tigers, the land of taj mahal and a land of extreme poverty. What is the picture of India today? One outsourcing two computers three services. But there is also an Indian story of manufacturing, seen for example in the sleek sports car by the Indian firm TATA India has the beginning of first class manufacturing and Infrascture.So the India of today is no longer the land of tigers and Taj mahal.But exactly was India then and what are India’s strength today? Can we gauge where it might be needed. 1950-1970: Strong policy intervention specialization and constrained growth. What India was, economically speaking, is something well known to most people, At start, India followed a set of policies, At start, India followed a set of policies that resembled those in other countries i.e., a policy primarily of Import substitution with much emphasis on the public sector. The dramatic development of the then soviet Union had so impressed the people who come to power like Jawaharlal Nehru. That they emphasized import substitution and the public sector. The attitude in India then towards the private sector was totally discouraged, not that India ever went completely down the socialist line but the private sector was something encouraged sometimes discouraged. Indeed there was a notion that capital was scarce and had to be conserved. But the private sector could not be left to decide where to invest this scarce capital. Economic development of China The peoples republic of China has achieved spectacular economic growth during the past decades, however whether or not this growth has been inclusive has been an issue of concern and increasingly so in recent years. It is widely noted that inequality especially between urban and rural population and between coastal and interior provinces has increased. Significantly after the PRC embarked on economic reforms in the late 1970’s. Most studies of inequality in the PRC have tended to focus on income inequality. Most studies of inequality in the PRC have tended to focus on income inequality. More recently in other dimensions especially in health and education has begun to attract attention. This paper focus on the issue of inclusiveness of growth from the perspective of population health. Health is a key aspect of human welfare and an intrinsic goal of development as reflected in the prominence of health among the millennium development goals. The distribution of population health outcomes namely average levels of health attainment of a country’s entire population (e.g. life expectancy or its subgroups e.g. infant mortality rate and child mortality rates), is a key indicator of the inclusiveness of economic growth (sen 1998).Arguably, levels and distribution are now also an important focus of the PRC govt strategy towards a harmonious society as reflected in its 11th five year plan. This paper attempts to contribute to the discussion and debate on the inclusiveness of the PRC’s growth by asking two specific questions regarding health. First has spectacular economic growth over the past three decades been accompanied by similar achievements in terms of improvements in health outcomes has actually slowed in the postre form period, that is after the country moved away from is, after the country moved away from an exemplar public health system to an increasingly commercialized one. Secondly there has been convergence in health indicators across the provinces, but divergence between rural and urban areas (i.e. increased rural urban inequalities in health during the reform period furthermore there is evidence that the relationship between health and income at provincial level has strengthened overtime. Thirdly as suggested by evidence from house hold health survey data that are glaring disparities in health outcomes a major constraints to achieving better health for household. One key policy implication pf these findings is that redressing health related inequalities must how be a priority for the govt. If not the PRC’s growth process risks leaving a large sections of its population behind in terms of key development indicators such as health. There is full access for US banks in 5years.In two years local currency business with Chinese enterprises and customer restrictions removed in 5years.National treatment of foreign banks in designated arrears opening of Chinese intercity market. Opening of domestic leased Circuit services. More competition in international corporate communications. There is authorization to provide services in Chinese law. Chinese tariffs equal EU”s on Chinese exports. China hikes textile tariffs China on May 20, announced a voluntary but drastic hike on export tariffs on 74 categories of textile products to douse a raging dispute with the US and the European Union which had taken retaliatory measures against surging Chinese textile shipment to their markets. According to the Customs Tariff Commission of the state council, China’s Cabinet, it would raise export tariffs on 74 items of textile products with a 400% hike for most items, from June 1, 2005. That with a 400% hike for most items, from June1, 2005 that means the tariffs on each piece of said export textile or clothing product would increase from 0.2 Yuan (2.4 US cents) to one Yuan (12 US cents). But the new export tariff for women’s cotton overcoat and mantle would be four Yuan (48 US cents), compared with the current 0.3 Yuan (3.6 US cents). The tariff hile was announced in the wake of a US decision to reimpose restrictions on seven kinds of China textile and clothing imports. EU is also preserving China to take more strict measures to curb surging textile exports to the European market. Earlier on may 18, China launched a new foreign exchange dealing system that allows domestic trading in currencies other than the Yuan, a milestone in the country’s effort to reform its tightly controlled currency regime. The system allows trade in eight more currency pairs. The new trading platform-which does not involve Yuan trading- is itself a step forwards a more flexible system. China –Taiwan Ties General-Secretary of the governing Communist Party of China (CPC), Hu Jintao and chairman of Taiwan’s Opposition Kumointang (KMT), lien Chan on may 6 agreed that “two parties will make joint efforts to promote the formal end of the state of hostility across the Taiwan Straits and will take steps towards reaching a peace accord.” This political understanding between China’s top leader and key player in the non sovereign territory of Taiwan forms the centre- piece of the five point commique issued by them following their historic talks in Beijing.The agreement is understood to have prompted the ‘pro-independence’. Taiwanese President, Chen Shul-bian, to consider a political initiative of his own in regard to cross straits relations. The CPC-KMT understanding outlines their willingness to work jointly to achieve five objectives. They were: 1,, the promotion of an early restoration of cross Straits talks on the principle of “equal consultation” in the light of the 1992 consensus” which inter alia upholds the one-China principle: 2, a peace accord as also a framework of cross- straits relations, inclusive of “a mechanism of military mutual trust” to avoid conflict; 3, the promotion of all- round economic cooperation; 4, the discussion of the possibility of ensuring Taiwan’s participation in some international entities notably the world health organization, after the resumption of cross- straits dialogue; and 5, the formation of a CPC- KMT “platform” for exchange of ideas, people and visits. China- Japan standoff After weeks of escalating tensions China and Japan have finally decided to bury that hatched, at least now. The Chinese president, HU jintao and the Japanese Prime Minister Junichiro koizumi met on the sidelines of the Afro- Asian Summit held in Jakarta Indonesia in May 2005 to commemorate the 50th anniversary of the Bandung Conference of 1955 and decided to look beyond their disagreements and focus on the future. This was preceded by a public apology, the most public in a decade, from the Japanese prime minister over japans wartime aggression. Though the tensions have somewhat eased, critical problems in Sino- Japanese relations remain. Colonial rule and aggression caused tremendous damage and suffering for the people of many countries particularly those of Asian Nations”, and that “Japan squarely faces these facts of history of a spirit of humility.” Ten years ago, then Japanese Prime minister Tomiichi Murayama issued a similar apologetic statement during the 50th anniversary of the end of the Second World War. At that time, many victimized countries felt that Murayamas statement was too “mild”. Although Koizumi’s apology could be construed as a kind gesture, he did not indicate clearly that Japan had softened its stance on its wartime atrocities. It is obvious that Koizumi’s apology has been timed in such a way to ameliorate the tense relationship between Japan and China, as his country tries to wrestle support from Asian and African states for its bid for a permanent seat on the UN Security Council- a trick widely seen as more of a diplomatic discourse. After issuing the apologetic statement, Koizumi eventually managed to hold a talk with Chinese president Hu-Jintao. However the talks was principally aimed at amending ties, and emphasis was still placed on the need for Beijing to take appropriate measures to alleviate the tension owing anti-Japanese demonstrations across China, with no intension of any sort seen from Koizumi to express his repentance over the Nanjing Massacre. A five pronged proposal has been outlined during the meeting, including the insistence that Japan should face the history and put its “war reflections” into practice, and not to engage itself again in actions which may hurt the feelings of the Chinese and other Asians. They were: 1, Japanese Government should strictly abide by the Sino-Japanese joint statement peace and friendship treaty, Sino Japanese joint declaration, take specific actions to forge a friendly and cooperative relationship with China facing the 21st century; 2, Japanese govt should regard history as a mirror to reflecting on its wartime past, It should take a serious and conscientious attitude towards the history, and deal with historic problems in a serous and sincere manner, 3, The Taiwan question should be correctly handled. The issue lies in the core of Chinas interest, involves the national statement of 1.3 billion Chinese people: 4, Differences between the two countries need to be resolved through dialogues and peaceful negotiations.The two governments should actively work together to protect the relations from being hurt again: and 5, The two countries should further strengthen communication and cooporation in various areas, encourage friendly contacts and activities between the two peoples, So as to increase understanding and broaden mutual benefits,pushing the Sino-Japanese relations forward in healthy and stable pace. The immediate reason for the public apology of the Chinese was the approval of history text-books by Japan’s Education Ministry that are said to white wash Japans militarism in Asia during the first half of the last century. It is agreed that about 200000 to 300000 Chinese were killed during the Japanese occupation of Nanjing that began in 1937 and the new Japanese textbooks refer to this as the “Nanjing incident. China has asked Japan to take responsibility for the unrest in Chinese cities because it has continued tore write the history of his Second World War era occupation of China. Unrest erupted in Chinese cities including Beijing, shanghai, Chengdu and Guangzhou even as the police had been rather reluctant to maintain order Japan, meanwhile, asked for an apology from China for violent attacks against Japanese government offices and businesses in China. Japan has also dis- missed Chinese complaints about the Japanese Prime Ministers repeated visits to the yasukunishrine which includes 14 major war Criminals among the 2.5 million Japanese wars dead honored there. It also did not help when Tokyo’s High court rejected an appeal for compensation by Chinese survivors of biological- warfare experiments conducted by Japan during the Second World War . But it would be a mistake to view this Sino Japanese tensions merely through the Prism of History. It is also about the future Asian balance of power. Both Japan and China are competing for pre-eminence in the Asian political and strategic land scape and this is producing some inevitable tensions. The recent spat over Japan’s historical behaviors is just one of the manifestations of this dynamic. The two economic giants are also competing for vital energy reserves. A dispute has emerged over explanatory oil drilling in the East China Sea. Japan has announced its intention of permitting private companies to start drilling in contested area between Japan and China, just east of a halfway line between the Japanese island of Okinawa and the eastern shore of China Read More