Posts tagged ‘africa’

20/08/2015

What Stands in the Way of Modi’s Digital India – The Numbers – WSJ

Indian Prime Minister Narendra Modi has grand plans to expand the reach of the Internet to his country’s most far-flung citizens.  But some big numbers stand in his way.

1.06 billion

The number of Indians who currently don’t have access to the Internet. India’s offline population is greater than that of China and Indonesia–home to the next two largest unconnected groups–combined.

1 million

The number of miles of fiber optic cable needed to connect 250,000 village clusters in India to the Internet, according to a committee set up to get the project into gear. The original plan estimated that 370,000 miles of cable would do the job.

1%

The proportion of clusters of villages that up to June 30 were fully connected to Internet services in community centers, hospitals and schools under the National Fiber Optic Network that was launched in 2011.

2013

The original deadline for completion of the network. The date has since been shunted back twice and now stands at 2019.

$11.2 billion

The revised budget for the fiber optic network. Almost four times what was originally planned.

via What Stands in the Way of Modi’s Digital India – The Numbers – WSJ.

12/08/2015

ChemChina, Camfin to launch tender offer for rest of Pirelli | Reuters

An investment vehicle controlled by China National Chemical Corp (ChemChina) said it will launch a mandatory tender offer for remaining shares in Pirelli (PECI.MI) after on Tuesday taking control of the Italian tyremaker through a deal struck in March.

A Pirelli's tyre is pictured at the headquater in Milan, March 26, 2015. REUTERS/Giorgio Perottino

ChemChina in March agreed to become the majority owner of the world’s fifth-largest tyre manufacturer as part of a 7.3 billion euro ($8 billion) deal.

On Tuesday, Marco Polo Industrial Holding, a company created to facilitate the Chinese takeover, concluded its acquisition of a stake in Pirelli from Italian holding company Camfin, triggering the mandatory takeover bid.

A Camfin spokeswoman said the tender offer was expected to be launched in September.

State-owned ChemChina holds a 65 percent stake in Marco Polo, with the remainder in the hands of Camfin investors, who include Pirelli boss Marco Tronchetti Provera, Italian banks UniCredit (CRDI.MI) and Intesa Sanpaolo (ISP.MI), and Russia’s Rosneft (ROSN.MM).

The tender offer will be launched at 15 euros per share with the goal to acquire all of Pirelli’s share capital and de-list the tyremaker from Milan’s stock exchange. Marco Polo also decided to launch a voluntary tender offer on Pirelli’s savings shares.

In a separate statement, Tronchetti Provera, who will remain Pirelli’s chief executive, said Camfin would invest more than 1 billion euros in the tender offer and will keep a central role in the tyremaker’s future shareholder structure, along with ChemChina.

He reiterated the Chinese investment would boost the company’s international growth, particularly in the industrial tyre sector.

“In this segment, the integration with ChemChina will allow immediate growth in volumes and market share that Pirelli alone would have taken years to achieve,” he said.

via ChemChina, Camfin to launch tender offer for rest of Pirelli | Reuters.

10/08/2015

‘Silicon Valley’ China

The following was in answer to a series of questions by a journalist from International Finance Magazine.

The specific questions and answers are:

> Do you think China can be the next Silicon Valley? Indubitably

> What are your reasons? See this paper

> What according to you are the differentiating factors between China and Silicon Valley? Longevity, experience and culture including education system.

> Which are the areas where China scores points over Silicon Valley and which are the areas wherein it needs to improve?Whereas the US has a Silicon Valley and the area around Boston, China has several dozen ‘silicon valleys’ though most are in embryonic stage. Whereas the US Silicon Valley has a long history of success, which breeds success, the Chinese ones are all very new, although the oldest Zhongquancun in a Beijing suburb dates from the 80s; and in 2014 launched nearly 50 tech start-ups. See III.

> What steps does China need to take to have more of AliBabas in the country? See this paper which suggests that steps are already being taken.

> Some say that there is no dearth of money in China and hence there are many VCs and private equity firms. However, what is lacking is a disciplined approach. Your take on this. Agreed. However, the two magnets for investment in the past have been real estate and the so-called stock market, which is another name for legalized gambling.  Both have suffered reverses, property for a while and recently the stock market.  The Chinese investor is a quick learner.  Sooner rather than later they will turn to instruments and institutions that invest in innovation.

> How well are the young Chinese embracing entrepreneurship? The young in general are following the old path of secure jobs in government or established industry.  But with 1.3 billion people, there are enough youngsters interested in innovation and entrepreneurship for them to be a real force.

>Does the education system in China foster this? No it does not, See II – 3. last para.

 ==================

I believe that China is rapidly catching up with the US in innovation and entrepreneurship.  I say this for four reasons:

i. China has always been innovative and inventive.

ii. The Chinese government sees innovation and entrepreneurship as the solution to its rapidly dated ‘cheap’ mass manufacturing. It knows that China is experiencing its version of the industrial revolution in a fraction of the time it took the west and needs a new trick up its sleeve if China is not to be relegated to a third-world nation once again.

iii. China is already innovative and entrepreneurial in practice and speeding up the learning curve at the same speed it took up industrialization after Deng.

iv. Some respected ‘guru’s think so too.

I.   China has always been innovative and very inventive.

 We have all heard of gunpowder, movable press, paper making and the compass.  In 1948, Joseph Needham, Cambridge University set out to document Chinese innovation – https://en.wikipedia.org/wiki/Joseph_Needham Needham had heard a lot about this and was slightly skeptical, so he started professional research on it.  Today, his work – Science and Civilisation in China  – is still in progress although he passed away.  Seven volumes in 27 books have been published so far and the end is not in sight.  To help the lay reader, Prof Robert Temple has written a short book on it – The Genius of Chinahttp://www.curledup.com/geniusch.htm

II.  The Chinese government is focused on innovation and entrepreneurship.

It knows that its current USP, inexpensive and mass manufacturing will not last.  In fact, in some low tech areas it is discouraging any new factories.  It has also been steadily pushing up the minimum wage, thereby discoursing such manufacturing. In my view it has done four specific things to encourage innovation and entrepreneurship:

  1. Five-year plans, in particular:
  1. a. the 12th (2011 – 2015) – http://www.c2es.org/international/key-country-policies/china/energy-climate-goals-twelfth-five-year-plan – which included this section:

              Old pillar industries               The new strategic and emerging industries

1 National defense Energy saving and environmental protection
2 Telecom Next generation information technology
3 Electricity Biotechnology
4 Oil High-end manufacturing (e.g. aeronautics, high speed rail)
5 Coal New energy (nuclear, solar, wind, biomass)
6 Airlines New materials (special and high performance composites)
7 Marine shipping Clean energy vehicles (PHEVs and electric cars)

Sources: “Decision on speeding up the cultivation and development of emerging strategic industries,” http://www.gov.cn, September 8, 2010, http://www.gov.cn/ldhd/2010-09/08/content_1698604.htm; HSBCChina’s next 5-year plan: What it means for equity markets, October 2010.

1.b and the 13th (2016 – 2020) – http://www.chinabusinessreview.com/understanding-chinas-13th-five-year-plan/ – one of whose aims is likely to be “to support emerging industries”

  1. “Made in China 2025” policy – http://www.chinadaily.com.cn/bizchina/2015-05/19/content_20760528.htm -The 10 key sectors are new information technology, numerical control tools and robotics,aerospace equipment, ocean engineering equipment and high-tech ships, railway equipment,energy saving and new energy vehicles, power equipment, new materials, biological medicineand medical devices, and agricultural machinery.
  2. “Mass innovation and entrepreneurship” – http://www.chinadaily.com.cn/business/tech/2015-01/29/content_19436562.htm– “Chinawill foster a platform offering low-cost services in a variety of areasto micro businesses and individual start-ups that show

The government will also step up policy support, such as simplifying registration proceduresand giving subsidies, to innovative businesses. They will improve financing systems to givespecial support to start-up companies, according to the statement.

Although China’s broader economy is slowing, China’s young entrepreneurs are driving awave of startups that has become a bright spot for the economic landscape and an importantengine for future growth.

The number of newly founded companies in China surged almost 46 percent year on year to3.65 million in 2014, the latest data showed.”

China is very aware that the current education system does not foster innovation or entrepreneurship; so it is proposing major reform – http://www.chinadaily.com.cn/china/2015twosession/2015-03/11/content_19783458.htm – Current Chinese education has been criticized by many for being rigid and killing students’ imagination. In many exams, students are supposed to memorize the standard answer instead of putting forward their own ideas.

“Innovation requires the ability to seek different answers to the same question, through which they still reach the right destination,”

http://news.xinhuanet.com/english/china/2015-01/28/c_133954148.htm – “China’s State Council pledged to take various steps to create an amicable environment for innovation and entrepreneurship in order to power growth and generate jobs. … Although China’s broader economy is slowing, China’s young entrepreneurs are driving a wave of startups that has become a bright spot for the economic landscape and an important engine for future growth.

The number of newly founded companies in China surged almost 46 percent year on year to 3.65 million in 2014, the latest data showed.”

III. Innovation in practice

In practice, China now leads in world patent filing – https://chindia-alert.org/2015/05/21/patent-applications-lead-the-worldfocuschinadaily-com-cn/ – though in terms of patents filed in the US it is still behind Japan.

Chinese ‘silicon valleys’ – in addition to Zhongquancun, opened in the 80s – 80s –http://www.forbes.com/sites/ruima/2014/10/20/one-billion-chinese-entrepreneurs/andhttp://www.bloomberg.com/news/articles/2015-03-11/china-s-silicon-valley-sparking-49-technology-startups-a-daythere are dozens around the country.  It seems the ‘copycat’ syndrome applies to coy-catting innovation and entrepreneurship!- http://www.bloomberg.com/news/articles/2015-07-23/china-wants-silicon-valleys-everywhere

Chinese innovative products include, of course, AliBaba; but also, according to Forbes, in eight ‘industries –http://www.forbes.com/sites/anaswanson/2014/11/30/eight-innovative-industries-china-does-better-than-anywhere-else/:

  1. Micropayments
  2. E-commerce
  3. Delivery services
  4. Online investment products
  5. Cheap smart phones
  6. High speed rail
  7. Hydroelectricity
  8. DNA sequencing

IV.From ‘guru’s

You do not need to take my word for it, see comments by:

  1. Kai-Fu Lee, Google exec – http://blogs.wsj.com/chinarealtime/2015/07/30/behind-the-surge-in-chinese-tech-startups/?mod=chinablog&mod=chinablog
  2. McKinsey & Co – http://www.mckinsey.com/insights/asia-pacific/a_ceos_guide_to_innovation_in_china
09/07/2015

Angolans resentful as China tightens its grip | Reuters

When a halving of oil prices left a gaping hole in Angola’s finances this year, it became clear sub-Saharan Africa‘s third largest economy needed help fast – and President Jose Eduardo dos Santos knew exactly where to turn.

A Chinese worker walks past a construction site in Lubango, Angola March 5, 2014. REUTERS/Herculano Coroado

But the multi-billion dollar loans he signed with China last month have angered Angolans who say they have been left behind as politicians and China share the spoils and Africa’s second-largest oil producer becomes ever more reliant on Beijing.

China has lent Angola around $20 billion since a 27-year civil war ended in 2002, according to Reuters estimates.

Repayments are often paid with oil or funds go directly to Chinese construction firms that have built roads, hospitals, houses and railways across the southern African country.

This means, however, dollars don’t end up entering the real economy, increasing costs for ordinary Angolans.

“I think the president humiliates Angolans,” 35-year-old cook Marisa told Reuters as she bartered with a street trader over peanuts and bananas in the capital. “The agreements with China are a benefit for them and the president and not for us.”

Police visibility has increased in the streets of Luanda in response to public suspicion and dissent over how much the government would concede to Chinese interests in its bid to revive an economy hit by low crude prices.

More than a dozen people were arrested on June 20 for allegedly planning protests threatening “order and public security” in response to dos Santos’ China trip.

FLEC, a militant group that wants independence of the northern oil-rich exclave of Cabinda, demanded China repatriate all its citizens from the region within two months or risk being “severely punished”.

Angola has the best-funded military in sub-Saharan Africa and dissent is usually quelled quickly and ruthlessly, making any significant public backlash against the government unlikely, security experts say.

“IN A PICKLE”

Apparently aware of unease at home, dos Santos, a Soviet-educated petroleum engineer who has been in charge for 36 years, kept the details of the latest deals secret and stressed the “cooperation” and “mutual benefits” from his Beijing visit.

Chinese Premier Xi Jinping hinted at a much more lopsided relationship, saying he had agreed to “assist” Angola, China’s largest supplier of crude after Saudi Arabia.

It is almost impossible to miss Beijing’s influence in Angola, from construction site signs in Chinese script to expensive Chinese restaurants and seedy “Asian-only” massage parlors in the capital’s alleyways.

Despite reservations from jobless Angolans, economists see China’s dominant role in Angola as necessary.

Angola, which relies on oil sales for 95 percent of foreign exchange revenues, slashed a third off its budget and said it would need to borrow $25 billion this year – $15 billion domestically and the rest abroad.

“Lower oil prices have put Angola in a bit of a pickle and the most obvious place to turn is China,” said Cobus de Hart, an analyst at NKC African Economics. “If China can help Angola get out of the fiscal hole then it could be a positive step.”

Despite this, many Angolans are distrustful of the relationship, pointing to the millions who still live on less than $2 a day and World Bank studies that rank the country 169 out of 175 countries in terms of income equality.

Beijing’s role in Africa has often been criticized by Western governments and some African leaders who call it neo-colonial – taking resources in return for infrastructure that supports China’s construction industry.

“CHINA THE MASTER”

There are around 50 Chinese state companies and 400 private companies operating in Angola. They are supposed to use 30 percent Angolan labor but industry sources say this is rarely observed and Angolans tend to get the lowliest positions.

“Always the Chinese will be the master and the Angolan the helper,” said Paulo Nascimento, a 29-year-old Luanda taxi driver. “This is our country. We should be in charge.”

Chinese firms strongly deny accusations of exploitation, arguing that they have done more to rebuild Angola since the war than Western critics sitting on the sidelines.

“I think Angola does not have too much money so China is a very good choice for them,” Pascal Wang, 36, marketing manager at Chinese telecom company ZTE, told Reuters. “We don´t come here just to do business. We want to help Angolans.”

With the exception of investment from former colonial power Portugal and offshore oil drilling by U.S. and European oil majors, Western governments, donors and investors have focused their attention elsewhere in Africa.

There are signs this may be changing.

France’s AccorHotels, the world’s fourth-largest hotelier, sealed a deal last week with Angolan insurance and investment company AAA Activos to open 50 hotels by 2017. The deal coincided with a visit to Luanda by French President Francois Hollande.

The World Bank, meanwhile, agreed to $650 million in financial support this month, the first funding from the Washington-based lender since 2010.

Until the benefits of investment reach the masses rather than the elite, resentment against foreign investors and the government is likely to fester.

“We have always been slaves,” Nascimento said. “We are lost in the world. We are the leftovers.”

via Angolans resentful as China tightens its grip | Reuters.

03/04/2015

Is_China_the_new_idol_for_emerging_economies?

Another interesting and challenging talk from TED.com about China by Dambisa Moyo  author of “How the West was Lost” – http://www.dambisamoyo.com/biography/

03/04/2015

Hindus to be world’s 3rd largest population by 2050, says Pew Research Centre’s religious report – The Hindu

The world population of Hindus will grow rapidly between now and 2050, based on a relatively high expansion rate and the youth profile of this community. The largest global growth, however, will be among Muslims, outpacing the growth of every other religion’s population.

Hindus will become the world’s third largest population by 2050 while India will overtake Indonesia as the country with the largest Muslim population, according to a new study.

This was a key result of an in-depth study on “The Future of World Religions: Population Growth Projections, 2010-2050,” by the Pew Research Center, which sought to explain “Why Muslims Are Rising Fastest” in terms of the community’s higher fertility – 3.1 children per woman – and the fact that 34 per cent of Muslims are below the age of 15 years.

The Pew growth projections report says that India would retain a Hindu majority but would also have the largest Muslim population of any country in the world, surpassing Indonesia.

Worldwide, the Hindu population is projected to rise by 34 per cent over the period, from a little over 1 billion to nearly 1.4 billion, roughly keeping pace with overall population growth, the report noted.

By 2050, Hindus will be third, making up 14.9 per cent of the world’s total population, followed by people who do not affiliate with any religion, accounting for 13.2 per cent, the report said.

People with no religious affiliation currently have the third largest share of the world’s total population.

The Hindu population’s fertility rate, at 2.4 children per woman, is second to the Muslim figure, but ranks above Jewish and Buddhist fertility, respectively at 2.3 and 1.6 children per woman.

Further, 30 per cent of Hindus are below the age of 15, which is lower than the corresponding number for Muslims, while at the other end of the age spectrum seven per cent of Muslims were above 60 years old in 2010 and the figure for Hindus was eight per cent.

The Pew study found that Muslims would nearly double their numbers in Europe to more than ten per cent by 2050 and would outnumber Christians worldwide by 2070, according to the forecast of the growth of religions around the world.

In North America, the Hindu share of the population was expected to nearly double in the decades ahead, the report’s authors said, up from 0.7 per cent in 2010 to 1.3 per cent in 2050, when migration is included in the projection models.

However, without including migration effects the Hindu share of the region’s population would remain “about the same.”

via Hindus to be world’s 3rd largest population by 2050, says Pew Research Centre’s religious report – The Hindu.

27/02/2015

China bans ivory imports ahead of royal visit: Xinhua | Reuters

China has announced a one-year ban on the import of African ivory carvings ahead of next week’s visit by Britain’s Prince William, a strong critic of the ivory trade.

China will halt approval for imports until late February next year, newsagency Xinhua reported on Thursday, citing the State Forestry Administration, which regulates the trade. The ban will affect carvings acquired after 1975, it added.

Prince William has previously been critical of China over its consumption of ivory, while animal rights groups say the country’s growing appetite for the contraband material has fueled a surge in poaching in Africa.

“The move is to protect African elephants, and the one-year timeframe is designed to assess the effects,” Xinhua said.

China crushed 6.2 metric tonnes (6.83 tons) of confiscated ivory early last year in its first such public destruction of any part of its stockpile. However, the country still ranks as the world’s biggest end-market for poached ivory according to conservation body the World Wildlife Fund.

China signed a pact banning global trade in ivory in 1981, but it got an exemption in 2008 to buy 62 tonnes of ivory from several African nations. It releases a portion of that stockpile each year to government-licensed ivory carving factories.

via China bans ivory imports ahead of royal visit: Xinhua | Reuters.

28/01/2015

BBC News – The village that just got its first fridge

Three-quarters of the world’s homes have a fridge – an appliance that can revolutionise a family’s life. A tailor in one Indian village has just become the first person in his community to own one – something he has dreamed of for 10 years.

Santosh choosing a fridge

Santosh Chowdhury is pacing up and down speaking into his mobile phone.

“How much longer? It’s left past the auto-rickshaw stand, yes that’s right,” he shouts, and then continues his nervous pacing.

It’s a big day for him and indeed for the village of Rameshwarpur, just outside Calcutta in north-east India.

Santosh has bought a new fridge – not just his first but also the first in the entire community of 200 people. “Owning a fridge is quite rare in a village like ours,” he says.

The lack of fridges in Rameshwarpur reflects the situation across the whole of India. Only one in four of the country’s homes has one. That compares to an average of 99% of households in developed countries.

But change can be rapid when linked to an emerging middle class. In 2004, 24% of households in China owned a fridge. Ten years later this had shot up to 88%.

“Ours is the first generation to own a fridge in my family,” says Santosh. “No one in my father’s and grandfather’s time had ever seen one.”

Rameshwarpur has a distinctly rural feel. People bathe in a pond in the middle of the village, children fly kites in the dusty lanes. The homes are little more than simple huts, made of mud and brick. But the village has electricity and many houses have televisions.

Santosh works as a tailor. He lives in a modest, two-room hut which doubles as his home and workplace. “I don’t have a regular job as such,” he says. “Sometimes I also work part-time in a factory. I make about three to four dollars a day.”

Life is quite hard, especially for his wife Sushoma.

She cooks lunch, stirring a pot of rice on a wood fire outside their hut. It’s something she does every day because they have no way of storing leftovers. So Santosh has to go the market early each morning to shop for groceries.

He’s always wanted to make life easier for his wife and has been dreaming of buying a fridge for 10 years. “Owning one will be so convenient,” he says. “You don’t have to buy vegetables every day, you can store food – especially in the summer.”

So he’s been saving hard, putting away a bit of money every month for a purchase that costs more than a month’s salary. “I don’t make that much money, that’s why it’s taken me so long. But now I have enough,” he says, smiling.

At one of Calcutta’s high street stores, about 15km from his home, Santosh had several models to choose from. Peering inside, he ran his fingers along the side of a bright red model.

“It was quite confusing. It was my first time you know. I couldn’t figure out which one to get,” he says shyly. “My wife wanted a red one. I wanted one that will consume the least power. We need to keep our bills down.”

Finally, the deal was struck. Santosh got a discount because it was the final week of the winter sales. The price was 11,000 rupees (£120) – but more importantly, he was able to pay in instalments, having paid just under half the money up front.

“No one pays cash any more like they used to,” says store manager Pintoo Mazumdar. “Everyone can get a loan from the bank or the store – all you need is a bank statement and ID. That’s why so many lower income people can afford to buy a fridge these days.”

 

FRIDGEONOMICS

Fridge ownership around the world

76% Global average

65% Asia Pacific

99% Europe and North America

87% Latin America

63% Middle East and Africa

Source: Euromonitor

 

Santosh’s fridge finally arrives on the back of a cycle rickshaw. He walks along next to it with a broad smile. Many of the villagers come out on to the lane as well, craning their necks to get a better look.

“Careful, careful,” he cries out as a couple of them help carry the fridge into his house.

Then it’s time for a religious ceremony.

His wife applies a dab of vermillion to the fridge, to keep away evil spirits, and then blows on a conch shell to seek divine blessings and welcome the fridge into their home. The fridge has pride of place – next to Santosh’s sewing machine and their tiny television set.

They simply cannot stop smiling.

“We’ve dreamt of this moment for so long,” says his wife Sushoma. “Some of our neighbours have already asked us if they, too, can store some food in our fridge. “And I can’t wait to drink cold water in the summer.”

As Santosh shows off his fridge everyone crowds around, excited. “Imagine, they won’t have to shop for fresh vegetables every day,” says one woman. “I’m thinking of getting one too,” another man says.

It’s a special moment for the Chowdhurys. This acquisition could potentially transform their lives. “I can focus on finding more work and not worry about buying food for the family,” Santosh says. “My wife will get more free time and perhaps she can give me a hand as well.”

With those words, he opens his fridge and places the first contents inside – tomatoes, an aubergine, eggs and some milk.

via BBC News – The village that just got its first fridge.

21/01/2015

China’s “new normal” of investment brings new opportunity for win-win – Xinhua | English.news.cn

For the first time in its history, China has become a net capital exporter with outbound direct investment outnumbering foreign direct investment in 2014, presenting new opportunities for win-win cooperation with the rest of the world.

China's "new normal" of investment brings new opportunity for win-win

At the Annual Meeting of the World Economic Forum (WEF) scheduled for Jan. 21-24 in Davos, Switzerland, Chinese Premier Li Keqiang will expound on the Chinese economy‘s “new normal.”

Chinese investors channeled capital into 6,128 overseas firms in 156 countries and regions in 2014, with outbound investment reaching 102.89 billion U.S. dollars, up 14.1 percent from a year earlier, according to a press conference by the Ministry of Commerce (MOC) on Wednesday.

Growth was much faster than the 1.7 percent gain recorded in foreign direct investment, which was 119.6 billion dollars. This is the first time the two-way nominal capital flows have been near a balance.

“If the Chinese firms’ investment through third parties were included, the total ODI volume would reach about 140 billion dollars, which means China is already a net outbound investor,” said Shen Danyang, spokesman with MOC.

Chinese investors are investing in real estate, businesses and other assets overseas while growth at home is slowing. The country registered the slowest expansion pace in 2014 in 24 years, according to the GDP data released Tuesday.

The slowdown comes at a vulnerable time for the world economy — the eurozone is still at risk of another recession, the Abenomics has failed to drag Japan out of the mire, and investors are pulling out of emerging market funds.

Policymakers and investors were not prepared for a reality that after more than three decades on steroids, the world’s second-largest economy has been transitioned to a “new normal” of slower growth.

The market, crazy about speed and figures, seems to have missed the reality that the Chinese economy is healthier under the “new normal” featuring positive trends of stable growth, an optimized structure, enhanced quality and improved social welfare.

China’s sound economic fundamentals have not changed and the government will maintain macro-policies appropriate, Premier Li said during a meeting with Klaus Schwab, founder and executive chairman of the WEF on Tuesday.

The improvement of the quality and efficiency of the Chinese economy and its upgrading will make important contributions to maintaining the stability and healthy development of the world economy and finance, Li said.

The Chinese economy, shifting focus to consumption and investment from polluting heavy industry and manufacturing via complex reforms, will continue to function as a vital ballast for the world economy.

Besides, Beijing aims to create an open capital market by pushing ahead with a broad range of financial reforms to allow more foreign investment and encourage Chinese players to invest abroad. The more transparent and efficient allocation of the Chinese capital will have a positive effect on the global market.

In the process, China has proposed or promoted a host of initiatives and plans, such as the initiatives on the Silk Road Economic Zone, the 21st Century Maritime Silk Road, the BRICS Development Bank and the Asian Infrastructure Investment Bank.

It is fair to say that China’s capital export is creating life blood for the global economy to avoid the risk of declining.

In light of financial difficulty faced by Asia in realizing inter-connectivity and mutual access, China has pledged to contribute 40 billion U.S. dollars to setting up a Silk Road Fund to provide financial support for infrastructure construction, resources exploration and industrial cooperation for countries along the “One Belt and One Road.”

It is estimated that in the next decade, China’s outbound investment will total 1,250 billion dollars, giving more impetus to the worlds’ economic growth.

via Spotlight: China’s “new normal” of investment brings new opportunity for win-win – Xinhua | English.news.cn.

21/01/2015

India’s Poor Are More Upwardly Mobile Than You Think – India Real Time – WSJ

Despite India’s reputation as a country where millions of families are stuck in grinding poverty, a new World Bank report shows that a surpassingly large portion of the South Asian nation’s poor population has been finding its way out of poverty.

The report titled “Addressing Inequality in South Asia,”– which looked at the gaps between the haves and have-nots in India and its neighbors– looked at different income groups and how they changed over the five year period up to March 31, 2010.

Over that period close to 40% of the people that had been classified as poor had clawed their way above the poverty line. Of course, the income mobility went both ways, but was not as bad on the down side. Around 15% of the people that had been previously classified as middle class or just above the poverty line fell into poverty over the five years.

via India’s Poor Are More Upwardly Mobile Than You Think – India Real Time – WSJ.

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