Asia's Developing Future

Falling international energy prices, which are causing an economic crisis in the Russian Federation and some other countries in the region, are having major spillover effects on Central Asia. In the economy and financial sector of Tajikistan, remittances from workers have fallen sharply. Tajikistan covers some 141,000 square kilometers, with a population of about 9 million people. With a gross domestic product of about $7.0 billion—per capita about $800—it is one of the most remittance-dependent countries in the world. For several years it was number one in the world in remittances-to-GDP ratio in 2014, dropping to fourth place in 2016 because remittances from the crisis-affected Russian Federation declined. Read the transcript https://bit.ly/2SVDPLz Read the working paper https://www.adb.org/publications/financial-inclusion-regulation-literacy-education-tajikistan About the authors Roman Mogilevskii is associate director and senior research fellow at the Institute of Public Policy and Administration. S

The number of think tanks in Asia has grown over the last decade and many have become prominent. The 2017 Global Go To Think Tank Index Report records 1,676 think tanks in Asia as of December 2017, almost as many as the 1,872 in the United States, and gaining on the 2,045 that have set up in Europe. The report says there are about 8,000 think tanks globally. James McGann, the creator and editor of the report and director of the Think Tanks and Civil Societies Program at the University of Pennsylvania, credited the growth of think tanks to Asia’s economic progress, a better business environment, and policy makers’ need for advice on critical issues. Read the transcript https://bit.ly/2LWUAn9 Read more about the event https://www.adb.org/news/events/think-tanks-new-knowledge-policy-brokers-asia About the author James McGann is senior lecturer of international studies at the Lauder Institute and director of the Think Tanks and Civil Societies Program at the University of Pennsylvania. He is also the creato

Information is power, and that is true as India tries to solve its water crisis. In June 2018, the Government of India acknowledged that it is in the midst of the worst water crisis in the country’s history. By creating a tool that points out where exactly the government is lacking in managing water resources, India has armed itself with the power to fix the crisis. The move could not have come at a better time as poor water access and sanitation threaten people’s lives and livelihoods. Read the transcript https://bit.ly/2RzCVqV Read the blog https://www.asiapathways-adbi.org/2018/08/composite-water-management-index-a-pathway-to-solve-the-water-crisis-in-india/ About the author Nikhil Bugalia was an intern at the Asian Development Bank Institute and a PhD candidate at the University of Tokyo at the time the study was published. Know more about ADBI’s work https://bit.ly/2FkSxYQ https://bit.ly/2VDhdRR

With think tanks around the world now numbering 8,000 and counting, how do you pick the best among them? James McGann, senior lecturer of international studies at the Lauder Institute and director of the Think Tanks and Civil Societies Program at the University of Pennsylvania, identified four things a think tank must master. Read the transcript https://bit.ly/2QlU2Ym Read more about the event https://www.adb.org/news/events/think-tanks-new-knowledge-policy-brokers-asia About the author James McGann is senior lecturer of international studies at the Lauder Institute and director of the Think Tanks and Civil Societies Program at the University of Pennsylvania. He is also the creator and editor of the annual Global Go To Think Tank Index. Know more about ADBI’s work https://bit.ly/2R6qWl9 https://bit.ly/2s9bBS0

The Association of Southeast Asian Nations has a long-standing agreement to build and maintain rice reserves to deal with natural disasters and growing food insecurity among its 10 members. The rice reserves are effective, but more needs to be done to streamline funding of and access to the reserves to make sure relief arrives faster. An Asian Development Bank Institute study found that ASEAN member countries should speed up negotiation for, coordination of, and responses to requests for emergency food aid. Read the transcript https://bit.ly/2LOkf13 Read the policy brief https://www.adb.org/publications/building-food-security-asia-through-international-agreements-rice-reserves About the authors Kunmin Kim is a task manager at the Asian Development Bank Institute. Paula P. Plaza is a litigation lawyer at Angara Abello Concepcion Regala & Cruz Law Offices in the Philippines. Know more about ADBI’s work https://bit.ly/2Vsanyn https://bit.ly/2SzZIQy

How can private investors be persuaded to invest in public infrastructure – like new highways, railways, and dams? Many governments don’t want to incur further debt. And most politicians are reluctant to impose new or higher taxes on citizens who use the infrastructure. Institutional investors—such as pension funds—don’t generally see infrastructure as an attractive investment option. This is especially so in emerging economies with untried borrowers. Read the transcript https://bit.ly/2Rj8RPY Read the blog https://www.asiapathways-adbi.org/2017/05/kick-start-private-infrastructure-with-future-tax-sharing-bonds/ About the authors Naoyuki Yoshino is dean and chief executive officer of the Asian Development Bank Institute (ADBI) and professor emeritus at Keio University, Tokyo. Grant Stillman is legal advisor at ADBI. Know more about ADBI’s work https://bit.ly/2CyDzfH https://bit.ly/2SlQUxJ

Economic development can have significant health costs for growing numbers of overweight and obese people, as the example of Indonesia illustrates. This is what a new book by the Asian Development Bank Institute concludes. Overweight and Obesity in Asia and the Pacific: Trends, Costs, and Policies for Better Health gathers analyses by economists, doctors, and public health experts, including Matthias Helble, ADBI’s co-chair of research at the time the book was published and now an economist at the Asian Development Bank headquarters in Manila, and Toshiaki Aizawa, a PhD student at the University of York in the United Kingdom. They write that the growing numbers of overweight and obese people are one of the most pressing public health issues, particularly in developing countries, where almost two-thirds of the world’s obese people live. Read the transcript https://bit.ly/2rTEZLG Read the report https://www.adb.org/publications/wealthy-unhealthy-overweight-and-obesity-asia-and-pacific-trends-costs-and-policie

Digital technology is essential to better financial services for small businesses Better financial services are needed by micro, small, and medium-sized enterprises (MSMEs), such as secured transaction frameworks, credit information systems, and insolvency regimes. Among the 21 Asia-Pacific Economic Cooperation (APEC) forum economies, MSMEs represent more than 60% of total employment, 40% of gross domestic product, and 15% of total exports, but some 40% of their financial needs go unserved, mainly because they are too small to get banks’ attention. Shawn Hunter, David Dole, and Valdimir dela Cruz explain. Read the transcript https://bit.ly/2V1WGGz Read the policy brief https://www.adb.org/publications/financial-inclusion-digital-age About the authors Shawn Hunter is manager of Inclusive Finance at the Foundation for Development Cooperation. Valdimir dela Cruz was an associate at the Asian Development Bank Institute (ADBI) at the time the paper was written. David Dole is senior economist at ADBI. Know

Developing countries need to urgently deal with an obesity “time bomb” ticking away in their economies, and which is already dragging down growth and driving up health costs. The World Health Organization says that in 2016, more than 1.9 billion adults were overweight and 650 million were obese, with the worldwide prevalence of obesity nearly tripling since 1975. Mathias Helble and Azusa Sato investigate. Read the transcript https://bit.ly/2SaqUFd Read the report https://www.adb.org/publications/wealthy-unhealthy-overweight-and-obesity-asia-and-pacific-trends-costs-and-policies About the authors Mathias Helble is a former senior economist and co-chair of the Asian Development Bank Institute’s Research Department in Tokyo. Azusa Sato is a health specialist at the Asian Development Bank in Manila. Know more about ADBI’s work https://bit.ly/2LuBDaU https://bit.ly/2Re06XG

Asia may have made headway in channeling investments into green projects, but it needs $26.2 trillion between 2016 and 2030 or $1.7 trillion annually to finance sustainable and climate-resilient infrastructure. Southeast Asia alone needs an estimated $110 billion annually for investment in power, transport, information and communication technology, and water and sanitation through 2025. Asia has a lot more catching up to do than other regions. In 2016, green investments in Asia, excluding Japan, totaled $52 billion, accounting for only 0.8% of all funds under management in the region. This pales in comparison with 52.6% in Europe, 50.6% in Australia and New Zealand, 37.8% in Canada, and 21.6% in the United States. Ulrich Volz of SOAS explains. Read the transcript https://bit.ly/2RTi7r9 Read the working paper https://www.adb.org/publications/fostering-green-finance-sustainable-development-asia About the author Ulrich Volz is head of the Department of Economics at SOAS, University of London. Know more abo

Lessons learned during the Asian financial crisis leave central banks in developing Asia well-prepared for potentially volatile times as the world emerges from a period of ultra-low interest rates. That’s the view of central bank expert Hans Genberg, an advisor at the South East Asian Central Banks Research and Training Centre in Kuala Lumpur, Malaysia. Read the transcript https://bit.ly/2B9UzHx Read the report https://bit.ly/2B9D7mv Watch the presentation https://bit.ly/2UvwwM1 About the author Hans Genberg is advisor to the South East Asian Central Banks Research and Training Centre in Kuala Lumpur, Malaysia. Know more about ADBI’s work https://bit.ly/2SGaOmQ https://bit.ly/2EhoErR

Land trusts are the best way for governments in Asia to acquire private land for infrastructure projects. They also increase the likelihood that private companies will help build the roads, bridges, and railways that will keep economies growing. Recent research by the Asian Development Bank Institute notes that political upheaval has often accompanied attempts by governments to take over private land for infrastructure projects. India, Nepal, Indonesia, and the Philippines have all faced opposition to forcible land expropriation. Projects have been delayed by years or even canceled because of sometimes-violent opposition to land takeovers. Read the transcript https://bit.ly/2APPPGU Read the working paper https://www.adb.org/publications/land-acquisition-and-infrastructure-development-through-land-trust-laws About the authors Saumik Paul is a senior economist at the Asian Development Bank Institute (ADBI). Naoyuki Yoshino is dean of ADBI. Vengadeshvaran Sarma is an economist at the University of Nottingham

Girls now have more schooling on average than boys in the People’s Republic of China, reversing the age-old tradition of sons being better educated than daughters. One driver of change is China’s rapid economic growth over the past several decades, which has raised female literacy and living standards, leading to females receiving more schooling. Government policies limiting families to just one child and requiring them to send all children to school are also major factors. Kathleen McGarry and Xiaoting Sun of UCLA explain the factors contributing to the change in trend. Read the transcript https://bit.ly/2QcPhW4 Read the working paper https://www.adb.org/publications/three-generations-changing-gender-patterns-schooling-prc About the authors Kathleen McGarry is a professor and vice chair in the Department of Economics at UCLA and a research associate at National Bureau of Economic Research, Cambridge, Massachusetts. Xiaoting Sun is a PhD candidate in the Department of Economics at UCLA. Know more about

Innovative financial services and improved ways of doing business have emerged on the back of the rapidly growing digital economy, a field that has been growing exponentially over the past 10 years. The digital economy is extremely diverse, driving e-commerce, app stores, online advertising, online payment services, and cloud computing among a wide range of fields. Because the digital economy operates in an environment lacking regulations, achieving fair taxation is a challenge. Wawan Juswanto and Rebecca Simms explain. Read the transcript https://bit.ly/2rgYpdr Read the policy brief https://www.adb.org/publications/fair-taxation-digital-economy About the author Wawan Juswanto was a senior economist and Rebecca Simms was an associate at the Asian Development Bank Institute when the research was conducted. Know more about ADBI’s work https://bit.ly/2AoPv1v https://bit.ly/2PYTbBC

Small and medium-sized enterprises (SMEs) comprise 99% of nonfinancial businesses in the euro area and employ 67% of the total labor force. In Asia, they account for almost 98% of all businesses and employ about 66% of the workforce. These businesses are vital to a country’s economy. To survive, most SMEs need external funding. The most important direct sources are credit lines, bank loans, and leasing. Funds are essential—but where are they? What can be done to help SMEs? Danilo Mascia of Nottingham University Business School investigates. Read the transcript https://bit.ly/2QlSLEL Read the working paper https://www.adb.org/publications/young-enterprises-and-bank-credit-denials About the author Danilo Mascia is an assistant professor in banking at Nottingham University Business School, United Kingdom. Know more about ADBI’s work https://bit.ly/2P4vpiv https://bit.ly/2QiA5G9

Linking the People's Republic of China with Asia, Africa, and Europe by land and sea can be a win-win for China and its partner countries, if the trillions of dollars China plans to invest in infrastructure will benefit its partners, too. Jean François Gautrin of the Malaysian Institute of Economic Research explains. Read the transcript https://bit.ly/2zk7ZjR Read the report https://www.asiapathways-adbi.org/2018/03/one-belt-one-road-and-the-risks-behind-the-win-win-situation/ About the author Jean François Gautrin is an associate research fellow at the Malaysian Institute of Economic Research. Know more about ADBI’s work https://bit.ly/2Bn3w1r https://bit.ly/2A4Juqo

More than 60% of adults in the Kyrgyz Republic do not have access to financial products and services, and many still prefer to keep their money under a mattress. While a quarter of the adult population have savings, only 3% have money saved in financial institutions. Nor do people have much use for credit. Only 10.2% of adults have borrowed from a financial institution or used a credit card, a number that’s below global averages. Lack of access to banks and credit keep the poor from escaping poverty because they don’t have the means to invest in a business, education, or even their own health. Savia Hasanova describes recent developments in financial inclusion and financial literacy in the Kyrgyz Republic. Read the transcript https://bit.ly/2A8BRiN Read the working paper https://www.adb.org/publications/financial-inclusion-regulation-literacy-education-kyrgyz-republic About the author Savia Hasanova is an economic expert at the Investment Round Table in the Kyrgyz Republic. Know more about ADBI’s wor

Laws in developing countries generally reflect their unique cultures, which may restrict innovation and risk-taking, throwing obstacles in the path to development. Strong legal mechanisms, including intellectual property rights and patent protection, allow innovation to thrive. More than elsewhere in Asia, Southeast Asian countries emphasize the economic value of intellectual property rights on patents, but enforcement varies and so does their attraction for investors. Douglas Cumming of the Schulich School of Business in York University and Sofia Johan of the Tilburg Law and Economics Centre of the University of Tilburg discuss the relationship between law and culture on innovation. Read the transcript https://bit.ly/2RQL4DS Read the working paper https://www.adb.org/publications/law-culture-and-innovation About the authors Douglas Cumming is a professor and Ontario research chair of the Schulich School of Business, York University, Canada. Sofia Johan is an extramural research fellow of the Tilburg

In Chinese culture, as in most other cultures, whom you know is often more important than what you know, and social networks of relatives, friends, or local links are recognized as important to cultivate for help in job hunting, career promotion, or gathering and disseminating information. In developed economies, it’s called “networking,” or informal exchanges of business cards and ideas with like-minded people in social settings. In the Peoples Republic of China, and among the Chinese diaspora, it’s called “guanxi”—whom to call when something needs to be done, in an exchange of favors or potential influence—and it has long played a crucial role in facilitating informal credit activities. Read the transcript https://bit.ly/2FkxZB7 Read the working paper https://www.adb.org/publications/social-networks-and-informal-inclusion-prc About the authors Shijun Chai is a lecturer at Xinyang Normal University. Yang Chen is a lecturer at Xi’an Jiaotong-Liverpool University in Suzhou. Dezhu Ye is a professor at Jin

Scores of countries have fallen and are falling into the middle-income trap as they strive to develop. And, because of income inequality, aging populations, and a lack of growth impetus, some may never escape. Of the world’s 199 countries and semi-sovereign economies, 88 are stuck in the middle-income trap: 20 are in Europe, 18 in North America, 16 in Asia, 15 in Africa, 11 in South America, and 8 in Oceania. Chen Wang of Shanghai University of Finance and Economics and Jiajun Lan of the Wang Yanan Institute for Studies in Economics at Xiamen University describe the challenges middle-income countries face. Read the transcript https://bit.ly/2AR7S0C Read the working paper https://www.adb.org/publications/inequality-aging-and-middle-income-trap About the authors Chen Wang is an assistant professor at the School of Urban and Regional Science, Shanghai University of Finance and Economics. Jiajun Lan is a PhD candidate at the Wang Yanan Institute for Studies in Economics, Xiamen University, People’s Republic