An age of non-conventional

socio-economic interaction
The rise of Asia?

 Global growth rate: 5.2%

 Global per capita income: $10,000

Country GDP growth (%) Per capita income

(USD)
China 11.4 $5300

India 9.2 $2700

Singapore 7.7 $49700

Korea 5 $24800

Japan 2.1 $33600

Content
Asia before 1980s
China:
 the Cultural Revolution (1968-1978)
 Socialist planned economy

India: Shanghai, China

 Tight government control (1969)
 No FDI allowed

ASEAN:
 Domestic unrest
 Inter-country competition
What caused the boom?

 Low productivity
 High cost of production
 Parallel market
 Lack of international trade

Bombay, India
(1971)
An era of change
China India

 Establishment of TVE  Concentrate on

 Household responsibility capital- and
system technological-
 Pricing system created intensive industries
 Less allocation of rather than low-
resources by the state skilled, manual
 Closing unprofitable cottage industries
enterprises  Deregulation must be
 Clearing insolvency of
the banking system
kept at a pace at
which private sector
 Denationalization of
public utilities = public sector
 (PM: Jawaharlal Nehru
1984

Puxi, Shanghai

Barakhamba Road,
Delhi
Establishment of SEZ
(China)
Specialization of city
ASEAN

 Association of Southeast Asian

Nations
 Founded in 1967
 10 member states: Malaysia,
Indonesia, Thailand, Cambodia, Laos,
Vietnam, Philippines, Singapore,
Brunei
 Free trade; Energy security; Climate
change, etc
The impact

China India
 Poverty: 53%  8%  Back-office research
 GDP: EUR80  Microsoft
EUR530 Oracle
 Industrialization   Business outsourcing
Improved
HSBC
infrastructure 
Urbanization  British Airways
Manageable society
 Sanitation
 More political
influence
India
China
Regional economic
interaction
Whom are we doing business with?
…and why?

Bangkok,
Thailand
Who Whom What
China Japan, Electronic
Korea appliances
manufacturing

Philippines Hong Kong, Nursing;

Singapore Domestic helper

Bangladesh Pakistan Garment; Textile

Thailand Cambodia, Food
Laos, Vietnam

India Bhutan, Nepal,

Sri Lanka

Malaysia Indonesia Rubber;

Coffee beans
What will halt the
growth?

Kuala Lumpur, Malaysia

Furthermore…

 Internal problems
Boarder disputes between China &
India
Persistent inflation

 External challenges
An advancing Russia
Global economic recession
Q & A