Finance & Economics
Finance & Economics
Fair Observer's analysis of important economic and financial issues, events and trends in global markets and the world economy.
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As the Middle East and North Africa attempts to industrialize and modernize its economies, there are significant energy challenges ahead. The Middle East and North Africa (MENA) region has some of the largest energy reserves in the world. Yet, while the region is attempting to industrialize and modernize its economies, there are key energy challenges ahead. The most significant regional challenge concerns natural gas, namely, how to produce and utilize it more efficiently. However, this focus must be broadened and considered against the background of a dynamic global environment, that of increasing economic competition from Asia, the US natural gas boom and the global economic crisis, all...
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360° Analysis / border / canon / China / Diayou islands / dispute / economy / honda / islands / Japan / nissan / panasonic / territory / toyota / Finance & Economics / AsiaAs disputes over the Diaoyu-Senkaku Islands persist both China and Japan face huge economic costs. The Chinese government is aware of the need to avoid violent backlash and further breakdown in economic ties with one of its biggest trading partners, but the situation lies in the hands of the general public. By Nicholas Clement During the recent outbreak of anti-Japanese sentiment throughout China, it has become increasingly clear that the costs for regional business and Sino-Japanese economic ties are rapidly rising. In the aftermath of Japan’s “purchase” of the Diaoyu-Senkaku Islands, protests and demonstrations have broken out across China, several of which have...
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360° Analysis / Apple / China / economy / Foxconn / Finance & Economics / AsiaThe new growth model for Chinese manufacturers. Leslie T. Chang, an Egypt-based journalist who brings the lives of ordinary Chinese factory girls to Westerners’ attention, impressed the world with her quote, “Just because a person spends her time making a piece of something does not mean that she becomes that — a piece of something.” Today, around 10mil young workers have left their home far behind to work in booming factories in Southern China. Under the surface of China’s spectacular industrial growth is concern for the harsh realities of life as a Chinese worker. Foxconn City, where 40 percent of the world’s consumer electronics are assembled, has...
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360° Analysis / BRIC / economy / Human Development Index / IMF / Indonesia / World Bank / Finance & Economics / AsiaBy Atul SinghWhile Indonesia's economy is on the verge of becoming the leading one in Southeast Asia, there's still work left to do for the country's leaders. In the middle of Jakarta, there is a statue of Krishna and Arjuna on a chariot pulled by eleven horses in full gallop. The statue is an appropriate image for the Indonesian economy. Just as in the great epic, the Mahabharata, in which Krishna and Arjuna are central characters, Indonesia faces huge challenges and how it deals with them will determine the long-term health of its economy. The Indonesian economy has been on a roller coaster ride ever since its independence from the Netherlands. Under its first President Sukarno,...
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360° Analysis / Africa / conference / energy / future / Silicon Valley / Finance & Economics / AfricaAs economic diversity on the "Hopeful Continent" is on the rise, the world might need a new framework for talking about Africa in the future. In his winning essay for the Fletcher School's “Africa's Turn?” conference (for more information see here), Charlie Warren paints a picture of Africa and its place in the world in the year 2022. Kennedy Odhiambo hunches over the keyboard of his Mac laptop, clacking away code for a new app that claims to end traffic congestion once and for all. Kennedy doesn’t work for a Silicon Valley start up, and his target market does not necessarily include commuters entering the Bay Area of California. Though given...
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360° Analysis / Africa / future / Ghana / green energy / Kenya / Finance & Economics / AfricaBy Amy CalfasTen years from now Africa might be the only remaining developing region in the global race for economic growth. Amy Calfas goes in-depth in her winning essay for Fletcher School's “Africa's Turn?” conference (for background information see here). Few scholars have envisioned a day in which African security and economic prosperity were no longer dependent on a constant flow of blue helmets and aid packages. While exceptionally belated, the day has finally arrived in which African private investment has finally surpassed aid exchanges. Today, it is impossible to ignore the continent’s newly radiant economic complexion, and more astoundingly so when one considers the...
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By Shaon AhsanMongolian leaders must wisely manage the wealth coming from the sale of natural resources to ensure they do not experience the resource curse as have many countries that are abundant in natural resources. Luckily, so far, they have made an effort to keep it at bay. Positioned in between the economic powers of Russia and China, Mongolia has the fastest growing economy and is one of the most resource-rich countries in the world, but its leaders must make a concentrated effort to avoid the resource curse. With the commitment of Mongolia’s president, Tsakhiagiin Elbegdorj, to manage the resource wealth responsibly and efficiently, they may succeed in preventing it from occurring. Rise of...
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By Michael YeoMalaysia’s economy is dependent upon non-renewable energy sources, but the fuel subsidies that allow industrial growth are costly and cannot be maintained by the government. In order for industries to remain internationally competitive an alternative must be found. An intimate link exists between Malaysia’s economy and its energy supplies. Like the majority of countries in the region, Malaysia’s industries rely heavily on non-renewable supplies of fuel such as oil, coal, and gas. However, sustainable long-term economic growth in Malaysia is dependent upon a steady supply of energy. While there are abundant non-renewable energy sources in Malaysia, such resources are not...
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The year 2009, often considered the worst year of the Global Financial Crisis, saw a sharp dip and then the continuation of steady growth for most Asian economies. Yet the future of this pattern of stable growth faces threats from both regional and global issues. Background The economies of East and South East Asia are often measured against the great economic power that is China. China, although not untouched by the global economic crisis, has fared much better than the West. Although its gross domestic product (GDP) growth slowed down markedly, from 14.2% in 2007 in to 9.2% in 2009, it has not been in recession. The economic trajectories of the countries closest in proximity to China in...
