Category: Asia

Asia, Building resilience, Development in Transition

Regional Comprehensive Economic Partnership: why should it involve the excluded LDCs?

By Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD)

The world’s largest trading bloc, the Regional Comprehensive Economic Partnership (RCEP), was signed in November 2020, counting 15 Asian member countries. Should the excluded countries, more specifically the low income and least developed countries (LDCs) of Asia, be worried about this development?

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Development Matters
Asia, Covid-19, Migration, New social contract

Public health and migration: from the Postcolonial era to COVID-19

By Ranabir Samaddar, Distinguished Chair in Migration and Forced Migration Studies, Calcutta Research Group

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.
Photo: Juan Alberto Casado, Shutterstock

I wrote The Postcolonial Age of Migration in 2016-2019. It came out just two months ago as the pandemic continued (and continues) to rage in India and around the world. Global mobility came to a screeching halt and I have not yet seen the book in print. Locked down in my house and aware that the book had come out, I was driven to reflect on what I had written: did I do justice to our age, which I had described as the postcolonial age of migration? The book time and again goes back to colonial histories of war, plunder, changes in land use pattern, peasant dispossession, primitive accumulation, and their continuities in our time. Against this backdrop, the book discusses how the colonial practices of violence and border building are being reproduced today on a global scale. Wars, famines, and ecological changes are major driving factors behind migration and forced migration flows today. They also influence patterns of labour mobility. Yet as I reflected, the overwhelming reality of the COVID-19 pandemic brought home the realisation that the book does not account for epidemiological disasters as an integral part of the colonial history of migration and the postcolonial age of migration. The absence of any concern for migrant workers and refugees in public health structures should have been discussed. The book speaks of refugees’ health concerns in camps, yet the broader perspective of migrants and public health is absent.

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Development Matters
Asia, Covid-19, Latin America and the Caribbean

Prospects for Chinese and Mexican South-South co-operation post-COVID-19

By Denghua Zhang, former diplomat and Research Fellow at the Australian National University and Carlos Cortés Zea, Coordinator of the AMEXCID-UNDP Co-operation Programme

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

The COVID-19 crisis is having profound impacts on the international political and economic order. It also provides an opportunity for stakeholders to reflect on past practices in each sector and learn from lessons to improve policies in the future. In this case, we examine the purposes, approaches and capacities of emerging providers (or Southern providers as some may call them) through the lens of China and Mexico—two major players in south-south co-operation (SSC).

Emerging providers, similar to traditional donors, provide aid to serve their own national interest. Motivations underpinning emerging providers’ efforts can vary significantly. The Chinese foreign aid programme is driven by a combination of factors including diplomatic competition with Taiwan, access to natural resources in recipient countries, image building as a responsible global power, and generating geopolitical support when its relationship with developed countries is strained. For example, China is currently taking a whole-of-government approach to conduct its COVID-19 diplomacy; an effort to improve its global image and garner support from developing countries in the face of growing pressure from developed countries over China’s handling of the crisis.  

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Development Matters
Asia, Migration

The potential of migration for development in Afghanistan

By Nassim Majidi, Founder and Director, Samuel Hall

A family in Sheberghan, Afghanistan. Photo: Mustafa Olgun / Shutterstock.com

Countries in Asia are at different stages of harnessing the potential of migration for development. At one end, there is the case of the Philippines, where international migration is central to domestic social and economic development. At the other end of the spectrum is Afghanistan, where much of the conversation has narrowly focused on forced migration, return and reintegration, missing out on the potential of migration for development. Yet the migration and development dialogue in Afghanistan should be a priority, at a time when COVID-19 is leading the country into an economic recession. Experts have so far provided informal estimates that up to 80% of the Afghan population may end up under the poverty line due to COVID-19, with dire consequences for food security and overall wellbeing.

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Development Matters
Asia

Which path for the Development Assistance Committee down the Belt and Road?

By Philippos Pierros, EU Delegation Minister-Counsellor, & Elliott Memmi, Freelance Research Analyst

belt-road
The Chinese Xiaomi Highway bridge, between Lao’s border town Boten, and Mengla, Yunnan, China. Photo: Shutterstock

At the April 2019 Belt and Road Initiative (BRI) conference in Beijing, a new life seemed to have been given to the Belt and Road project. After 2018, marked by increased foreign criticism, suspicion, and a subsequent reigning in of ambition by China, 2019 saw a renewed confidence — with President Xi Jinping himself stepping in to address the risks of unsustainable debt and corruption and promising a more “open, green, and clean” development co-operation model. In July, China endorsed the G20 Principles for Quality Infrastructure Investment. And the China International Development Co-operation Agency (CIDCA) was promoted as the new government organ that would unify the tangled web of Chinese development actors. 2019 saw a sudden surge in new BRI agreements. Continue reading “Which path for the Development Assistance Committee down the Belt and Road?”

Development Matters
Asia, Building resilience, Covid-19, Undefined

Building a Resilient Future for Asia after COVID-19: How can ADB help?

By Yasuyuki Sawada, Chief Economist and Director General, Economic Research and Regional Cooperation Department, Asian Development Bank, Cyn-Young Park, Director for Regional Cooperation and Integration, Economic Research and Regional Cooperation Department, Asian Development Bank, Rolando Avendano, Economist, Economic Research and Regional Cooperation Department, Asian Development Bank

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

The latest estimates of the COVID-19 impact paint a grim picture of severe economic and job losses for developing Asia. ADB’s latest study estimates that the pandemic could cost the region from 6.2% to 9.3% in lost regional GDP, depending on whether it entails a 3-month or a 6-month containment scenario. This effect accounts for 30% of the expected overall decline in global output. The region is also expected to take the brunt of employment losses: the study projects losses from 6.0% (109 million) to 9.2% (167 million) of total employment, representing 70% of global employment losses. The shock is estimated to be seven times higher than during the global financial crisis.

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Development Matters
Asia, Policy

Unbundling Corruption: Why it matters and how to do it

By Yuen Yuen Ang, Political Scientist at the University of Michigan, and the author of How China Escaped the Poverty Trap and China’s Gilded Age: The Paradox of Economic Growth and Vast Corruption

Even amid a global pandemic, corruption persists and manifests itself in multiple forms, ranging from corrupt police extorting truck drivers delivering essential goods, rigged procurement contracts, to politically connected corporations receiving huge bailouts from the government while small businesses are starved of loans they desperately need to stay afloat. Although all of these actions are corrupt, they involve very different actors and stakes; some are transactional while others are extractive; and each brings about vastly different consequences.

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Development Matters12 Comments
Digitalisation and growth
Asia, Covid-19

From crisis to opportunity in China: stepping up digitalisation amid COVID-19

By Margit Molnar, Head of China Desk, OECD Economics Department and Kensuke Tanaka, Head of Asia Desk, OECD Development Centre

Digitalisation as a way to lift growth potential

COVID-19, or the new Great Depression, is likely to have a lasting impact on economies and societies worldwide. Pandemics are shown to be followed by sustained periods with depressed investment opportunities, and/or heightened desires to save (Jorda et al., 2020), thereby reducing potential growth. To mitigate the impact of COVID-19, many governments, in addition to emergency measures to save lives and keep firms afloat, have also adopted investment stimuli. China is among those countries where the composition of stimulus is tilted towards public investment. While continuing to strike a delicate balance between keeping the pandemic under control and resuming activities, it is crucial to accelerate processes that will counter the fall in growth potential. China’s growth potential is set to decrease as the country catches up with more advanced economies and its rapid ageing also weighs on it. However, China can still reap the “reform dividend” with measures that also boost growth in the long term.

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Development Matters1 Comment
Asia, Covid-19

The economic implications of lockdown in Emerging Asia

By Kensuke Tanaka, Head of Asia Desk, OECD Development Centre and Mario Pezzini, former Director, OECD Development Centre and Special Advisor to the OECD Secretary General on Development  

This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

First detected in China, COVID-19 has spread rapidly to other countries, infecting more than 2 million people worldwide and killing more than 127,000 to date (14 April).  From mid-March, Southeast Asian countries started to see their number of cases climb (Figures 1 and 2). As of 14 April, India confirmed over 11,000 cases, though the sharp increase can partly be attributed to more testing. Malaysia and Indonesia each surpassed the bar of 4,800 confirmed cases, while the Philippines has counted over 5,200 as of the same date. The rapid evolution of the disease has prompted authorities to announce various measures including putting entire cities and countries into lockdown to stop the virus. As early as January in China and March elsewhere, many Emerging Asian countries have imposed local or even nationwide lockdown and curfew measures (Table 1), with varying durations, geographical coverage, and scope. Lockdown measures contribute to containing the spread of the virus, but they also prevent economic activities that would otherwise take place. As the debate in countries turns to when and how to end a lockdown and restart the economy, the health and economic implications of lockdown measures need to be considered carefully.

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Development Matters1 Comment
Africa, Asia, Covid-19, Development in Transition, Latin America and the Caribbean, Policy

Covid-19: time to unleash the power of international co-operation

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By Mario Pezzini, former Director, OECD Development Centre and Special Advisor to the OECD Secretary General on Development

This blog* is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.

Development co-operationThe rapid spread of the dire human, social and economic impacts of the coronavirus crisis shows just how interconnected we are. International co-operation has become –literally– vital.

A health crisis has set off a global economic crisis, where shocks on the demand and supply sides are combining in an unprecedented scenario. Many developing countries are bracing themselves. While Europe is struggling to contain and cope with a spiralling number of cases and fatalities, the effects in countries where health systems are already weak, economies are highly dependent on global demand, and strict containment policies are more difficult to implement, could be even more disastrous.

Major outbreaks in developing countries could cause the collapse of weak health systems and expose gaps in social protection programmes, especially in Africa, where so many schemes rely on official development assistance. A humanitarian crisis may be in the making: travel restrictions affect the delivery of humanitarian assistance, and infections in refugee camps – largely hosted in developing countries – will be difficult to fight. The ILO estimates that 25 million jobs could be lost worldwide, possibly more, as the majority of workers in developing countries are in the informal economy. Continue reading “Covid-19: time to unleash the power of international co-operation”

Development Matters5 Comments