Broadening financing options for infrastructure in Emerging Asia

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By Kensuke Tanaka, Head of Asia Desk, and Prasiwi Ibrahim, Economist at Asia Desk, OECD Development Centre 


Learn more about this timely topic at the upcoming
1st International Economic Forum on Asia
Register today to attend on 14 April 2017!


Kensuke-Prasiwi-AsiaForumAgreeing on the need for new infrastructure is one thing; finding a sustainable way to finance it is another. According to the ADB, an estimated USD 26 trillion (or USD 1.7 trillion per year) will need to be invested in infrastructure in its developing member countries1  between 2016 and 2030 if these economies are to maintain their growth momentum, eradicate poverty and respond to climate change2  .Given the scale of investment needed, countries in the region will not have sufficient funds to meet demand. Indeed, financing infrastructure investment has been a considerable challenge for the region. Political factors can further complicate financing when they lead to the inefficient allocation of public funds. How best to finance infrastructure is, therefore, a key concern for policy makers in the region.
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Opportunities and Challenges in Southeast Asia, China and India

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


Learn more about this timely topic at the upcoming
1st International Economic Forum on Asia
Register today to attend on 14 April 2017!


Mario-KantsukeStrong growth – averaging 6.2% per year – is expected in Emerging Asia (Southeast Asia, China and India) over 2017-21, though trends vary across the region. While growth in China is projected to continue slowing, it will still average 6.0% over the medium term, below the 6.7% forecast for 2016. India, on the other hand, will average 7.3% annual growth in the years to 2021. The ten ASEAN member countries together are forecast to average growth of 5.1%, led by the CLM countries (Cambodia, Lao PDR and Myanmar), which will all see annual growth rates above 7%. Amongst the large ASEAN-5 economies, the highest growth rates are projected for Viet Nam (6.2%) and the Philippines (6.1%) over 2017-21. Singapore and Brunei Darussalam are both expected to see growth of 1.8% in the medium term. Private consumption is expected to continue to be an important driver of growth across much of the region, particularly with slow export growth (Figure 1):  Continue reading

The value of sharing experiences in urban redevelopment

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By Dr. Koki Hirota, Chief Economist, Japan International Cooperation Agency (JICA)


Learn more about this timely topic at the upcoming
1st International Economic Forum on Asia
Register today to attend on 14 April 2017!


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A future image of the Cebu metropolitan area

Catastrophic floods and earthquakes have hit Asian cities such as Manila, Bangkok or Kathmandu in recent years more than ever before. Air pollution in Delhi, Dhaka or Beijing has turned more and more dangerous, threatening the lives of residents. All this as the international community agreed on Sustainable Development Goal (SDG) 11 to “make cities and human settlements inclusive, safe, resilient and sustainable.” Responding to this call, the Japan International Cooperation Agency (JICA) decided to allocate 35% of its financial co-operation programme last year to urban development.

Why? Urbanisation in developing countries is happening fast. Ten mega cities of over 10 million people existed in 1990; that number increased to 28 in 2014 and is projected to reach 41 in 2025 (UN [2014]). Urban areas in Shanghai expanded by 8.1% annually between 2000 and 2010 and by 4.0% in Jakarta. Tokyo, in comparison, expanded by 0.2% (World Bank [2015]). Dhaka became a mega city in just 40 years from a population of 1 million. Many other Asian mega cities took only 50 to 70 years to reach that level, which is a much shorter time than what advanced economies experienced.

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Changing social norms through entertainment education: the case of a soap opera in India

By Poonam Muttreja, Executive Director, Population Foundation of India

 

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A promotional activity is held for Main Kuch Bhi Kar Sakti Hoon, in Bhourikala Village, India’s state of Madhya Pradesh

“You forced me into marriage. I wanted to study.”
“What difference is that gonna make! Are you going to be the Prime Minister?”
“Yes. I will become the Prime Minister.”

This powerful exchange between key characters in a soap opera demonstrates reel life emulating real life.
In 2011, the Population Foundation of India (PFI) set out to use the soap opera Main Kuch Bhi Kar Sakti Hoon (MKBKSH) or I, A Woman, Can Achieve Anything as the centre of a transmedia initiative that leverages the power of entertainment education to change social norms. At the heart of the soap opera are the struggles and triumphs of Sneha, a doctor working in Mumbai, as she journeys from the city to her village, emotionally torn between family and society, between professional aspirations and personal commitment.

But why pursue entertainment education and what has been the experience?

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A view into China’s Development: Opportunities, Challenges, Actions

By Li Wei, President (Minister), Development Research Center of the State Council of China

shutterstock_chinaThe increasing economic integration and interdependence of countries around the world constitute the driving force behind common prosperity. In this pursuit, China, as the world’s second largest economy with an economic aggregate exceeding 15% of global GDP, plays a pivotal role. In fact, China’s development will, more or less, impact the development of other countries. So, what is China doing to realise its own domestic development goals that, in turn, can help spur a new round of prosperity for the global economy?

The way forward begins with understanding current realities. China indeed faces some unprecedented challenges. The working age population is in absolute decline as society is aging. Traditional industries, especially low value-added sectors, face serious over-capacity. Ecological and environmental problems challenge the country’s continuous development. Continue reading

Myanmar can flourish by sowing seeds of agricultural prosperity

By Deirdre May Culley and Martha Baxter, policy analysts at the OECD Development Centre

MyanmarDEVmattersOn 30 March, Htin Kyaw, a long-time adviser and ally of Aung San Suu Kyi – whose National League for Democracy party achieved a historic victory in recent electionsbecame the first elected civilian to hold office in Myanmar since the army took over in 1962.

The NLD won the democratic battle and enjoys unparalleled political capital and legitimacy. It must now deliver on exceedingly high expectations, build a cohesive multi-ethnic state and improve citizens’ lives. Economic progress will be indispensable if the country is to overcome years of ethnic armed conflict and move towards a common future. So what can the new government do?

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China’s economic slowdown: Good or bad news for Europe and Central Asia?

By Maurizio Bussolo, Europe and Central Asia Chief Economist Office, The World Bank Group

 

China-Dev-MattersChina’s economy looms large in global markets. After decades of sustained economic growth, the country became the world’s largest exporter in 2007 and today sells abroad 60% more goods and services than the United States and 75% more than Germany – the second and third largest exporters, respectively. In addition, China is the second largest importer of goods and services in the world, after the United States.

Because of China’s importance in the global economy, news of its economic slowdown and financial sector turmoil have caused many observers to worry. In fact, at the beginning of 2016, some were explaining the plummeting of stock markets as anticipating a growth collapse in China (also reflected in very low oil prices). Continue reading