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!
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.
The 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?
On 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 
China’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.
2015 has been a challenging year for Africa. Average growth of African economies weakened in 2015 to 3.6%, down from an average annual 5% enjoyed since 2000. Total financial flows have decreased 12.8% to USD 188.8 billion, including UNCTAD estimates for foreign direct investment. Africa´s tax-GDP ratio tumbled to 17.9%, down from 18.7% in 2014.