By Wolfgang Fengler of the World Bank
For a good part of my life I have been an expat, working and living with my family in developing countries. It’s easier than most people imagine. If you can afford it, you get good schooling and decent healthcare and Jakarta’s shopping malls, for example, are more stylish than those of Berlin or Vienna. My first posting was in Indonesia, where we stayed five years before moving to Kenya. Both are emerging economies, now considered “middle-income”; decade-long investments in education have borne fruit and created a sizeable and vibrant talent pool among the young, and the mobile revolution has progressed dramatically so that almost everyone now owns a cell phone. Not all is rosy though: poverty remains widespread and visible – especially if you venture outside of expat circles- and crime can also be a big concern.
The biggest difference, however, between the developed and developing worlds is the likelihood of being confronted with death. Read more
Given the problems of female infanticide and sex-selective abortions in India you might think that the country would one day be filled with single men unable to find a bride.
You might well, however, be wrong. A new academic paper predicts that by 2050 India will face the reverse problem: women will find it more difficult than men to find an eligible partner. Behind the findings are two main factors: the typical age gap between Indian men and women at marriage, and rising levels of education among Indian girls. Read more
The World Economic Forum’s 2014 Global Gender Gap Report, released last month, presented some interesting findings about countries in the Asia Pacific region. Its Gender Gap Index measures progress in countries across four benchmarks: economic participation, education, health and political empowerment.
Despite political and cultural diversity across the region, there are definite signs the overall gender gap is shrinking. According to the report, 7 out of the 24 countries of Asia and the Pacific have closed over 70 per cent of the gap. In terms of economic participation, the Asean countries are now all above the world average. The Philippines, in particular, has closed the gap between male and female access to health and education and features in the list of top 10 countries worldwide.
Source: World Economic Forum, beyondbrics
Teeth have long been gnashed over the dismal demographic trends of the developed world, with the babyboomer generation soon set to retire and fewer workers around to pay for their healthcare and pension costs. But the developing world also faces a demographic challenge, fast FT reports.
The young and rising labour forces of emerging markets have been a crucial factor behind their rise over the past decade, but in a report, Moody’s points out that the positive effect this has had on growth is fading. Read more
By Ben Simpfendorfer of Silk Road Associates
The Yuecheng in Beijing’s southern suburbs is a pleasant looking senior living home. Its main living room is full of books, potted plants, and mahjong tables. Its bedrooms are bright and well equipped and little different from the rooms that many might be used to seeing in Europe or the US.
Indeed, to the casual observer, the Yuecheng appears to be a pin-up for the commercial opportunities of selling to China’s growing ranks of elderly people. But that’s why it’s also misleading. Read more
There is nothing that the west – and we in the western media – love to hate more than when Chinese money threatens to take a chunk of the free media that we see as a cornerstone of our democracies. So when a Chinese recycling millionaire said he was buying the New York Times, we either squealed with outrage or denounced it as a publicity stunt (which it seems that it was). Read more
The publishing industry in India is worth some Rs100bn ($1.6bn) according to the Federation of Indian Chambers of Commerce and Industry. And it is growing at a compound annual growth rate of 30 per cent.
Of the 90,000 new books produced every year in 24 different languages, Hindi publications make up about 26 per cent and English language books 24 per cent. It’s all part of the ‘globalisation’ of literature. Read more
India’s biggest resource – a young population, a democratic system, or the large pool of wealthy citizens it sends abroad?
According to a new report from WealthInsight, the researchers, 180,000 Indian millionaires live abroad and they are together worth $634bn – a figure that is expected to grow to $1.1tn in three years. Read more
For much of their history, the economies of Latin America have been isolated not only from the rest of the world but also form each other. Over the past quarter century, this has changed and the region now has the opportunity to embark on a virtual circle of development. But to realise this potential, governments must still deal with daunting challenges, writes Juan Carlos Echeverry of the Inter-American Development Bank. Read more
Massive open online courses, also known as Moocs, are a relatively new phenomenon in education, allowing people to take free classes from some of the world’s most eminent professors on their laptops anywhere in the world.
Excitement over these programmes reached a peak last year with the western media delirious at the idea of accessible, quality education for all. Bu where should Mooc platforms head for their next phase of growth? EMs, of course. Read more
A fascinating infographic from Euromonitor International (reproduced below) shows us not only that half of the world’s population is aged under 30 but also that 90 per cent of those youngsters are to be found in emerging markets.
So, EMs have youth on their side and the future is rosy! Not so fast… Read more
Emerging Markets across the world should be in a hurry to grow richer, according to Jonas Prising, president of recruitment company ManpowerGroup. “Otherwise they’ll lose the a race to get rich before they get old,” he told beyondbrics at Davos.
Whereas countries like Sweden, the UK or the US had several generations to adjust to new levels of economic growth, and could adjust their institutions so everyone could benefit from the countries’ increasing wealth, EMs won’t have that luxury, according to Prising. Read more
China’s “little Emperors” have got a lot of bad press in the 30-odd years since Mao Zedong created a generation of pampered and pilloried only children with the “one child policy”. It did not help that KFC, the Western fast food behemoth, opened its first restaurant in China soon afterwards, helping plump up the little darlings to the point where obesity is a problem for children whose parents and grandparents lived through famine.
But now an Australian study has even less nice to say about the generation that dominates China’s labour force. It says the one-child policy has created a generation of risk avoiders. Hardly good news for Beijing’s plan to create an innovation nation by producing millions of Chinese replicas of Steve Jobs. Read more
Robust domestic demand, the rise of the middle class and healthy corporate balance sheets are reasons why southeast Asia is being talked up as the last man standing in an otherwise anaemic global economy.
But Thiam Hee Ng, a senior economist at the Asian Development Bank, has sounded a rare note of caution on the region. He points out four factors that should give the boosters pause. Read more
In future, we will all have to work longer and retire later, right? Wrong, according to Jeremy Siegel, the Wharton professor. He says people in developed nations will still be able to stop work early and finance their retirement by selling their wealth to emerging market investors. “By the middle of this century, I expect all multinational companies to be owned by EM,” he says, pointing to a “new deal” between DMs and EMs.
Siegel is best known for the investment strategy laid out in his book, ‘Stocks for the Long Run‘. How did he arrive at his prediction? Read more
Would discounted cab rides for pregnant women and a bonus of N$20,000 ($673) be enough to convince you to have more kids?
Taipei is hoping its citizens will think so. In Taiwan, a birthrate among the world’s lowest means there will eventually be too few workers to support an aged population, prompting the government to try whatever it can to convince its citizens to have more kids. Read more
Anyone familiar with the name of Humayun Shahryar will know he is not a big believer in emerging markets. Take his views on China: “The whole soft-landing/hard-landing thing is a non-argument. China is crash-landing as we speak.”
But the founder and chief executive of Auvest, a Cyprus-based hedge fund, does have faith in his native India, which he reckons is next in line for China-style growth – but only after it’s been through a lot of pain. Read more
Beijing hopes that China will one day take its place among the world’s developed nations – but Shanghai has already got there.
Judged by everything from the city’s high prices to its low birth rate and remarkably long life expectancy – a daunting 82.5 years – Shanghai is no third-world country. Read more
How many modern Indian consumers will there be? A management consultancy report this week forecasts that the country’s consumer spending is set to soar in the next decade, rising from $991m to the tune of $3.6 trillion by 2020.
But economists told beyondbrics that the Boston Consulting Group’s forecast – contained in a report that is bullishly entitled “The Tiger Roars” – could only be achieved if the government actually implements its ambitious reform agenda. And that is far from certain. Read more
Saudi Arabia has been in the news this week as King Abdullah announced that women will finally be allowed to vote – a move celebrated by activists and campaigners. But how does the Kingdom compare on gender equality to other countries?
The chart below plots gender inequality against GDP per capita. Read more