Political Geography: China / Topic: Financial Crisis

1. Xi Demands Fealty Despite Domestic And Foreign Woes

Author:: Willy Wo-Lap Lam
Publication Date:: 01-2024
Content Type:: Journal Article
Journal:: China Brief
Institution:: The Jamestown Foundation
Abstract:: The Politburo held a “democratic life meeting (民主生活会)” on December 21–22, 2023, in which President Xi Jinping gave an internal, unpublished speech. According to accounts provided to the author by three officials at the rank of department head or above, Xi admitted that he had repeatedly postponed the Third Plenum of the 20th Central Committee (which according to Party norms should have taken place in October) because he “could not offer any viable solution for the nation’s problems.” Xi, who is general secretary of the Chinese Communist Party (CCP) and commander-in-chief, went on to blame the other 23 Politburo members and other senior cadres, not only for failing to give him good advice but also for demonstrating signs of disobedience. Reports of Xi’s frank admission of the dire straits of the Party’s leadership were widely circulated on social media. The official Xinhua read-out of the Politburo meeting also cited Xi as demanding “unison of thought” among top-tier officials. This entails adhering closely to the instructions of the “core leadership”—in other words, to Xi himself (Xinhua, December 25, 2023). The supreme leader raised the “two safeguards (两个维护),” a slogan that refers to “safeguarding the authority of comrade Xi Jinping as core of the party” and “safeguarding Xi Jinping Thought on socialism with Chinese characteristics for a new era.” President Xi also admonished his close advisors to “take a firm grip on the internal laws of developments [of issues]; accurately distinguish between events and trends, crises and opportunities, and benefits and harms … and effectively combat risks and take action on the basis of stability” (People’s Daily, December 23, 2023). This instruction tallies with caveats given by Xi throughout the past year, in which he has warned that China faces unprecedented challenges and that the party-state apparatus must ready itself to tackle “black swans and gray rhinos.”
Topic:: Financial Crisis, Leadership, Xi Jinping, Chinese Communist Party (CCP), and Banking
Political Geography:: China and Asia

2. China as an International Lender of Last Resort

Author:: Sebastian Horn, Bradley C. Parks, Carmen M. Reinhart, and Christoph Trebesch
Publication Date:: 03-2023
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: This paper shows that China has launched a new global system for cross-border rescue lending to countries in debt distress. We build the first comprehensive dataset on China’s overseas bailouts between 2000 and 2021 and provide new insights into China’s growing role in the global financial system. A key finding is that the global swap line network put in place by the People’s Bank of China is increasingly used as a financial rescue mechanism, with more than USD 170 billion in liquidity support extended to crisis countries, including repeated rollovers of swaps coming due. The swaps bolster gross reserves and are mostly drawn by distressed countries with low liquidity ratios. In addition, we show that Chinese state-owned banks and enterprises have given out an additional USD 70 billion in rescue loans for balance of payments support. Taken together, China’s overseas bailouts correspond to more than 20 percent of total IMF lending over the past decade and bailout amounts are growing fast. However, China’s rescue loans differ from those of established international lenders of last resort in that they (i) are opaque, (ii) carry relatively high interest rates, and (iii) are almost exclusively targeted to debtors of China's Belt and Road Initiative. These findings have implications for the international financial and monetary architecture, which is becoming more multipolar, less institutionalized, and less transparent.
Topic:: Debt, Emerging Markets, International Trade and Finance, Financial Crisis, Belt and Road Initiative (BRI), and Sovereign Debt
Political Geography:: Africa, China, and Asia

3. Eight Contradictions of the Imperialist ‘Rules-Based Order’

Author:: Tricontinental: Institute for Social Research
Publication Date:: 03-2023
Content Type:: Case Study
Institution:: Tricontinental: Institute for Social Research
Abstract:: We are now entering a qualitatively new phase of world history. Significant global changes have emerged in the years since the Great Financial Crisis of 2008. This can be seen in a new phase of imperialism and changes in the particularities of eight contradictions.
Topic:: Economics, Human Rights, Imperialism, Financial Crisis, Capitalism, Global South, Socialism, and International Order
Political Geography:: China, Asia, Global Focus, and United States of America

4. The Long Search for Stability: Financial Cooperation to Address Global Risks in the East Asian Region

Author:: C. P. Chandrasekhar
Publication Date:: 03-2021
Content Type:: Working Paper
Institution:: Institute for New Economic Thinking (INET)
Abstract:: Forced by the 1997 Southeast Asian crisis to recognize the external vulnerabilities that openness to volatile capital flows result in and upset over the post-crisis policy responses imposed by the IMF, countries in the sub-region saw the need for a regional financial safety net that can pre-empt or mitigate future crises. At the outset, the aim of the initiative, then led by Japan, was to create a facility or design a mechanism that was independent of the United States and the IMF, since the former was less concerned with vulnerabilities in Asia than it was in Latin America and that the latter’s recommendations proved damaging for countries in the region. But US opposition and inherited geopolitical tensions in the region blocked Japan’s initial proposal to establish an Asian Monetary Fund, a kind of regional IMF. As an alternative, the ASEAN+3 grouping (ASEAN members plus China, Japan and South Korea) opted for more flexible arrangements, at the core of which was a network of multilateral and bilateral central bank swap agreements. While central bank swap agreements have played a role in crisis management, the effort to make them the central instruments of a cooperatively established regional safety net, the Chiang Mai Initiative, failed. During the crises of 2008 and 2020 countries covered by the Initiative chose not to rely on the facility, preferring to turn to multilateral institutions such as the ADB, World Bank and IMF or enter into bilateral agreements within and outside the region for assistance. The fundamental problem was that because of an effort to appease the US and the IMF and the use of the IMF as a foil against the dominance of a regional power like Japan, the regional arrangement was not a real alternative to traditional sources of balance of payments support. In particular, access to significant financial assistance under the arrangement required a country to be supported first by an IMF program and be subject to the IMF’s conditions and surveillance. The failure of the multilateral effort meant that a specifically Asian safety net independent of the US and the IMF had to be one constructed by a regional power involving support for a network of bilateral agreements. Japan was the first regional power to seek to build such a network through it post-1997 Miyazawa Initiative. But its own complex relationship with the US meant that its intervention could not be sustained, more so because of the crisis that engulfed Japan in 1990. But the prospect of regional independence in crisis resolution has revived with the rise of China as a regional and global power. This time both economics and China’s independence from the US seem to improve prospects of successful regional cooperation to address financial vulnerability. A history of tensions between China and its neighbours and the fear of Chinese dominance may yet lead to one more failure. But, as of now, the Belt and Road Initiative, China’s support for a large number of bilateral swap arrangements and its participation in the Regional Comprehensive Economic Partnership seem to suggest that Asian countries may finally come into their own.
Topic:: Regional Cooperation, Bilateral Relations, Financial Crisis, Central Bank, IMF, Liberalization, Financial Globalization, and Financial Integration
Political Geography:: China, Asia, and United States of America

5. China’s FDI in Europe and Europe’s Policy Response

Author:: Pyoung Seob Yang, Cheol-Won Lee, Suyeob Na, Taehyn Oh, Young Sun Kim, Hyung Jun Yoon, and Yoo-Duk Ga
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: China’s investment in the European Union (EU) increased significantly during the European financial crisis, but has been on the decline in recent years. The surge of Chinese investment has raised concerns and demands for analysis on the negative effects it could have on the EU companies and industries. In this context, the present study aims to analyze the main characteristics of Chinese investment and M&A in Europe, major policy issues between the two sides, the EU’s policy responses, and prospects of Chinese future investment in Eu-rope, going on to draw important lessons for Korea. To summarize the main characteristics of China's investment in Europe, the study found that the EU's share of China's overseas direct investment has continued to increase until recently. Second, investment in the Central and Eastern European Countries (CEECs) is gradually increasing, although it is still insignificant compared to the top five destinations in the EU: Netherlands, Sweden, Germany, Luxembourg and France. Third, China's investment in the EU is being made in pursuit of innovation in manufacturing and to acquire high-tech technologies. When it comes to China's M&A in Europe, the study found that the proportion of indirect China's M&As (via third countries (e.g. Hong Kong) or Chinese subsidiaries already established in Europe) was relatively higher than direct ones. Empirical factor analysis of investment also shows that China's investment in the EU is strongly motivated by the pursuit of strategic assets. Other factors such as institutional-level and regulatory variables are found to have no significant impact, or have an effect contrary to expectations. This suggests that China's investment in the EU is based on the Chinese government's growth strategy, and accompanies an element of national capitalism Today, It is highly expected that the COVID-19 pandemic will have a reorganizing effect on the global value chain (GVC) and Foreign investment regulation in the high-tech sector motivated by national security is emerging as a global issue as the US and the EU are tightening their control. As Korean companies are not free from the risk of falling under such regulations, a thorough and careful response is required. And for the Korean government, it is necessary to prepare legal and institutional measures regulating foreign investment in reference to the US and the EU.
Topic:: Foreign Direct Investment, Financial Crisis, European Union, Economy, Economic Growth, Global Value Chains, and COVID-19
Political Geography:: China, Europe, Asia, Korea, and United States of America

6. China’s Hidden Obstacles to Socioeconomic Rebalancing

Author:: Boy Lüthje and Christopher A. McNally
Publication Date:: 10-2015
Content Type:: Policy Brief
Institution:: East-West Center
Abstract:: The global financial crisis of 2008-09 led to a policy consensus in China that its socioeconomic development model needed rebalancing. China's rapid development has been based on extensive growth reliant on exports, low wages, environmental exploitation, and the manufacturing of cheap products. China's current plans identify paths to economic rebalancing through intensive growth driven by rising investment in new technologies and manufacturing processes, improved wages and skills, and improved worker and environmental protections. Two industries, automotive and information technology, demonstrate the experience of and opportunities for rebalancing. Both offer improved employment conditions with better wages, but continue to incorporate large swaths of low-wage employment with little protection for workers' health and the environment. Economic rebalancing in China, therefore, has so far only appeared in pockets. Institutional safeguards for wages and labor standards remain constrained by powerful alliances among multinational corporations, Chinese state-owned/private enterprises, and the Chinese state.
Topic:: Economics, Political Economy, Labor Issues, and Financial Crisis
Political Geography:: China

7. China’s Hidden Obstacles to Socioeconomic Rebalancing

Author:: Christopher McNally and Boy Lüthje
Publication Date:: 09-2015
Content Type:: Working Paper
Institution:: East-West Center
Abstract:: The global financial crisis of 2008-09 led to a policy consensus in China that its socioeconomic development model needed rebalancing. China's rapid development has been based on extensive growth reliant on exports, low wages, environmental exploitation, and the manufacturing of cheap products. China's current plans identify paths to economic rebalancing through intensive growth driven by rising investment in new technologies and manufacturing processes, improved wages and skills, and improved worker and environmental protections. Two industries, automotive and information technology, demonstrate the experience of and opportunities for rebalancing. Both offer improved employment conditions with better wages, but continue to incorporate large swaths of low-wage employment with little protection for workers' health and the environment. Economic rebalancing in China, therefore, has so far only appeared in pockets. Institutional safeguards for wages and labor standards remain constrained by powerful alliances among multinational corporations, Chinese state-owned/private enterprises, and the Chinese state.
Topic:: Economics, Markets, Science and Technology, Labor Issues, and Financial Crisis
Political Geography:: China

8. The Shadow Banking System of China and International Regulatory Cooperation

Author:: Zheng Liansheng
Publication Date:: 03-2015
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: The shadow banking system was defined in 2007 by Paul McCulley, the managing director of Pacific Investment Management Company, but it began to receive significant attention in the immediate aftermath of the GFC. Since the beginning of the financial crisis in 2008, the regulatory agencies of different countries, international organizations and think tanks have all carried out in-depth research into shadow banking and have released a series of results. Regulatory reforms have also addressed shadow banking, the most important of which is the US Dodd-Frank Act of 2010, which aims to restrain the expansion and risk taking of shadow banking in the United States. The United Kingdom and the European Union have also adopted reforms and built up a supervisory system to track the risks of the shadow banking system.
Topic:: Financial Crisis
Political Geography:: United States, China, United Kingdom, and Europe

9. Service Sector Reform in China

Author:: Ryan Rutkowski
Publication Date:: 01-2015
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: Faced with slowing economic growth, Chinese policymakers now recognize that the service sector of the economy—transportation, communications, finance, and health care—could spur economic activity and employment. The catch is that China must reform these and other areas to accomplish this goal. Chinese leaders have outlined an ambitious agenda for reform, but myriad vested interests could slow or block their plans. This Policy Brief evaluates the steps taken so far and the difficulties that lie ahead in implementing them. If policymakers fail to reform and open up the service sector, they run the risk of seriously impairing China's growth prospects.
Topic:: Economics, International Trade and Finance, Labor Issues, Financial Crisis, and Reform
Political Geography:: China

10. Maintaining Financial Stability in the People's Republic of China during Financial Liberalization

Author:: Nicholas Borst and Nicolas R. Lardy
Publication Date:: 08-2015
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: China's banking system is now the largest in the world, and its capital markets are rapidly approaching the size of those in the advanced economies. Borst and Lardy trace the evolution of China's financial system away from a traditional bank-dominated and state-directed financial system toward a more complex, market-based system. They analyze and outline the optimal sequence of financial reforms needed to manage the new risks accompanying this evolution.
Topic:: Economics, Markets, Financial Crisis, and Reform
Political Geography:: China

11. China in the G20 Summitry: Review and Decision-making Process

Author:: Alex He
Publication Date:: 10-2014
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: As the largest emerging economy, China believes that the Group of Twenty (G20), instead of the Group of Eight (G8), is the ideal platform for its participation in global governance. This paper examines the reasons why China joined the G20 rather than the G8, and then focuses on a detailed review of China's participation in G20 summits since the enhanced forum began in 2008. China took a very active and cooperative attitude in dealing with the global financial crisis in 2008-2009. The paper observes that China also insisted on its own agenda for reforms to the international monetary system, through reforms to the international financial institutions that manage it — in particular, raising the number of voting shares and the representation of developing countries at the IMF and the World Bank. Based on the reviews of China's performance in the G20 summits since 2008, the paper explores China's policy making through its participation in the G20, determining that it is shaped by several major economic departments in addition to the Ministry of Foreign Affairs, and coordinated by a vice premier responsible for economic and financial affairs. The paper concludes that China has gained immensely from its participation in the G20. Most importantly, China entered the centre stage of global economic governance through the G20, which allowed the country to demonstrate that it is a responsible great power, and communicate and maintain relations with other major powers. The main challenges China has faced since joining the G20, from the perspective of some Chinese scholars, are a lack of capacity for agenda setting and shaping initiatives, as well as inadequate communication and coordination among different government departments and between the Sherpa and financial tracks of the G20.
Topic:: Economics, International Political Economy, International Trade and Finance, International Monetary Fund, Global Recession, Financial Crisis, and World Bank
Political Geography:: China

12. Examining China’s Assertiveness through the Eyes of Chinese IR Scholars

Author:: Huiyun Feng and Kai He
Publication Date:: 09-2014
Content Type:: Working Paper
Institution:: Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:: Since the 2008 global financial crisis, China‟s diplomacy has moved towards a more confident or even assertive direction in international politics. Economically, the Chinese Premier refused to re-value the Chinese currency as the United States requested and instead started to lecture about U.S. economic mismanagement during the 2008 financial meltdown (Pomfret, 2010). Diplomatically, China responded furiously to Obama‟s decision of arms sales to Taiwan and meeting the Dalai Lama in early 2010, threatening to place sanctions on American companies. Politically, China reluctantly cooperated with Western countries, especially the United States, to punish either North Korean or Iranian provocations to the international order. Many other examples, from the Copenhagen Conference to the diplomatic standoffs between China and its neighbours, have also been listed as indications of China‟s assertive behaviour since 2008 (Swaine, 2010, 2011; Swaine and Fravel 2011; Perlez 2012; Ross 2012; He and Feng 2012). In particular, the 2012 Scarborough Shoal crisis with the Philippines, the still on-going flare-ups with Japan on the Senkaku/Diaoyu disputes, and the recently intensified tension with Vietnam in the South China Sea seemingly have further intensified regional concerns over China‟s rise. It is worth noting that some scholars have started to question the validity of the discourse regarding China‟s assertiveness in diplomacy. For example, through critically examining the “assertiveness” meme in the U.S. pundit and academic circles, Johnston questions: “How new and assertive is China‟s new assertiveness?” (Johnston, 2013). Although the extent and the nature of the assertiveness are still debatable, it is clear that China‟s foreign policy has shifted to a new direction, albeit temporarily. The goal of this paper is not to debate the temporal origins or intensity of China‟s assertiveness. Instead, it focuses on examining the perceptual roots of China‟s policy changes. As David Shambaugh (1991) points out, behaviour is principally a function of perception. In order to make sense of Chinese behaviour, we need to dig into the mindset of Chinese leaders. However, it is difficult to gauge what political leaders really perceive due to the political hierarchy and the complex nature of the decision-making process in any state system, especially China. In this research we examine Chinese leaders‟ perceptions and attitudes regarding Chinese foreign policy through the eyes of China‟s International Relations (IR) scholars. We use Chinese IR scholars as a “proxy measure” to make sense of Chinese leaders‟ perceptions because Chinese IR scholars serve as the mediator between the Chinese leadership and the general public (Shambaugh, 1991; Saunders, 2000). Based on an original opinion survey of Chinese IR scholars at the annual conference of the Chinese Community of Political Science and International Studies (CCPSIS) in Beijing in July 2013, we empirically test the perceptual roots of Chinese scholars‟ preference for an assertive diplomacy. In particular, we examine two competing arguments about China‟s assertiveness. Some scholars suggest a “power perception” argument in which China‟s assertiveness is rooted in Chinese leaders‟ changing perceptions regarding its power status versus the United States. In other words, as the 1 United States and other Western countries were troubled by their economic downturn, Chinese leaders became overly confident with China‟s rise and thereby started to say “no” to the United States as well as show its “teeth” to its neighbours (Nye, 2010; Green, 2010). Others advocate a “policy reaction” argument, which attributes China‟s assertiveness to a nationalist reaction to unfriendly international forces, especially from the West, which threatened to block China‟s rise. Continuous economic growth also instigated the rise of nationalism in Chinese society, which in turn pushed the Chinese government to react to Western criticisms and “plots” with more fury and toughness (Carr, 2010; Small, 2010; Swaine, 2011; Ross, 2012). In other words, China‟s assertiveness in diplomacy grew from an intentional reaction to the strategic pressure from the United States and the outside world. There are three parts in the paper. First, we briefly introduce our original survey conducted in the summer of 2013. Second, we develop two hypotheses based on the current debate about China‟s assertive diplomacy and test them by using the structural equation modeling (SEM) technique. We suggest that both the “power perception” and “policy reaction” arguments make sense in explaining China‟s assertiveness in diplomacy. However, our findings suggest that a more pessimistic perception regarding Chinese power is more likely to be associated with a preference for an assertive foreign policy. In other words, it is not a confident or an overly confident China but a lack of confidence instead, which is more likely to trigger an assertive foreign policy in China. In the conclusion section we discuss the implications of our findings for China‟s future international relations
Topic:: Diplomacy, Imperialism, International Cooperation, and Financial Crisis
Political Geography:: United States, China, Iran, Middle East, Asia, and North Korea

13. Is China's Property Market Heading toward Collapse?

Author:: Li-gang Liu
Publication Date:: 08-2014
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: China's property market has slowed significantly since the first half of 2014, with sharp declines in sales and a buildup in the inventory of new homes. This sharper than expected downturn—which has affected not only second- and third tier smaller cities but also first-tier megacities such as Beijing, Shanghai, Shenzhen, and Guangzhou—contrasts with last year's buoyant sales and double-digit price surge. Compounded by fears of a default in the shadow banking system and the perception of a highly leveraged Chinese economy, the sudden declines in the property sector are being watched closely. Many commentators believe this could be a turning point for the sector, triggering a hard landing of the Chinese economy and even a financial crisis. Over the last decade, China's property sector has become an important pillar for the country's growth as well as the key source for elevated commodity prices. A property market slump would hurt other sectors, as well as drag down resource-rich economies that rely heavily on China to buy their exports.
Topic:: Economics, Financial Crisis, and Urbanization
Political Geography:: Japan, China, and United Nations

14. Danish Foreign Policy Yearbook 2013

Author:: Hans Mouritzen (ed) and Nanna Hvidt (ed)
Publication Date:: 06-2013
Content Type:: Book
Institution:: Danish Institute for International Studies (DIIS)
Abstract:: This year's volume presents the official outline of Denmark's foreign policy in 2012 by Claus Grube, Permanent Secretary of State for Foreign Affairs. Besides that Ravinder Kaur contributes with the first academic inquiry into the causes of the Danish-Indian diplomatic deadlock in the extradition case concerning Niels Holck (the prime accused in the Purulia arms drop case). Mette Skak addresses the role of the emerging BRICS powers (Brazil, Russia, India, China, and South Africa) in Danish foreign policy and offers her policy recommendations. Hans Branner shifts to a diachronic perspective. In his article about Denmark 'between Venus and Mars' he stresses elements of continuity in Danish foreign policy history; activism is not solely a post-Cold War phenomenon. Derek Beach turns to the scene of the current European economic crisis, analysing and interpreting the Fiscal Compact agreed during the Danish EU Presidency.
Topic:: Foreign Policy, Diplomacy, Economics, International Affairs, and Financial Crisis
Political Geography:: Russia, China, Europe, India, South Africa, Brazil, and Denmark

15. China's Credit Boom: New Risks Require New Reforms

Author:: Nicholas Borst
Publication Date:: 10-2013
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The Chinese financial system has undergone almost continuous reform since the dismantling in the 1980s of the Soviet- style system where only one state-controlled bank existed. Government efforts to create a financial system that adheres to international best practices of commercial lending accelerated in the 1990s (box 1). Reforms progressed quickly during this period, but they were accompanied by excessive credit growth and a massive increase in nonperforming loans, threatening the solvency of some banks and the financial stability of the entire economy. The risk of these weaknesses was dramatized by the 1997 Asian financial crisis, in which several nearby countries were crippled by plunging currency values, rising interest rates and difficulties servicing their foreign-held debts.
Topic:: Debt, Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:: China

16. ARBITERS AMISS: THE FAILINGS AND SHORTCOMINGS OF INSTITUTIONS GOVERNING THE GLOBAL FINANCIAL SYSTEM

Author:: Paul Blustein
Publication Date:: 10-2013
Content Type:: Policy Brief
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: Myriad dangers beset the global economy. The US Federal Reserve is trying to curb its ultra-easy money policy, a delicate operation that could plunge the world into recession if done too abruptly. The euro zone might fall back into turmoil. Japan's experiment with “Abenomics”1 could go sour. China's banking system looks shaky. Emerging economies are suffering large scale withdrawals of foreign funds.
Topic:: Debt, Development, Economics, International Monetary Fund, Foreign Aid, Fragile/Failed State, and Financial Crisis
Political Geography:: China

17. From Multilateral Champion to Handicapped Donor–And Back Again?

Author:: Nancy Birdsall
Publication Date:: 09-2013
Content Type:: Journal Article
Journal:: PRISM
Institution:: Institute for National Strategic Studies (INSS), National Defense University
Abstract:: The global financial crisis triggered by the fall of Lehman Brothers in 2008 and its aftermath in the subsequent five years has made visible and telling two new realities of the 21st century. First, the United States and its western allies no longer represent the single canonical example of the economic and political model of a free market democracy that other countries ought to strive to imitate. The crisis was triggered in the United States in part by a failure of monetary and financial regulatory policy; many emerging market economies, including China, India and Brazil, recovered relatively quickly from the global crisis in part due to so-called heterodox policies inconsistent with the U.S. model. Second, the global economy is no longer dependent on growth in the traditional western democracies; it is growth in China and other emerging market economies that has fueled the global recovery. For the first time in over 100 years, there is convergence between the per capita incomes of the richest and at least some large developing countries.
Topic:: War and Financial Crisis
Political Geography:: United States, China, and India

18. Stabilizing Properties of Flexible Exchange Rates: Evidence from the Global Financial Crisis

Author:: Joseph E. Gagnon
Publication Date:: 11-2013
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: There is a long-standing debate among economists and policymakers on the benefits of flexible versus fixed exchange rates (Klein and Shambaugh 2010). In principle, flexible exchange rates allow a country's central bank to focus on stabilizing economic growth and inflation, which are the ultimate goals of monetary policy. However, some argue that in practice central banks often do not use their powers wisely and it may be better to restrict their freedom by requiring them to peg their currency to that of an important trading partner. Others note that flexible exchange rates are far more volatile than fundamental factors can explain (Flood and Rose 1995), raising the possibility that they may introduce wasteful cross-sectoral fluctuations in economic activity. One common viewpoint is that flexible exchange rates may be fine for large countries but that the smallest countries are better off with fixed exchange rates (Åslund 2010).
Topic:: Economics, Foreign Exchange, International Trade and Finance, Markets, and Financial Crisis
Political Geography:: United States, Japan, China, and United Kingdom

19. Reshaping the Security Order in Asia-Pacific

Author:: Alain Guidetti
Publication Date:: 11-2012
Content Type:: Policy Brief
Institution:: The Geneva Centre for Security Policy
Abstract:: The international strategic landscape is evolving at an unprecedented pace. The widespread assumption is that the global balance of power is shifting from the West to the East (and the South), as a consequence of the convergence of two variables: the sustained economic growth of China and Asia over recent decades, and the Western economic downturn since the 2008 global financial crisis. Though interpretations differ on the meaning and magnitude of this power shift, the prevailing assumption is that it reflects the weakness, and for some the relative decline, of the US and the West against Asia's and primarily China's strong rise. The implications of these developments across the Asia-Pacific are deep and have already led to growing strategic competition between Beijing and Washington for preeminence over the Asia-Pacific and new uncertainties over global and regional governance.
Topic:: Economics, Human Rights, and Financial Crisis
Political Geography:: United States, China, Washington, Beijing, Asia, Australia, and Asia-Pacific

20. Rising States, Rising Institutions: Challenges for Global Governance

Author:: Isao Miyaoka
Publication Date:: 01-2012
Content Type:: Journal Article
Journal:: International Relations of the Asia-Pacific
Institution:: Japan Association of International Relations
Abstract:: The global financial crisis of 2008 has strengthened the general impression that the decline of the United States and the rise of new powers such as China and India are simultaneously in progress. A shift in the balance of power must significantly affect the way of global governance. This is a subject of great importance in world politics. In the words of Robert Gilpin, 'the fundamental problem of international relations in the contemporary world is the problem of peaceful adjustment to the consequences of the uneven growth of power among states'. Since around 2010, scholarly attention has been paid to the impact of emerging new powers on global governance. One of the very first books is the volume under this review, Rising States, Rising Institutions: Challenges for Global Governance. This edited volume is the second book that was produced by the collaborative work between the Center for International Governance Innovation (CIGI) – a Canadian think tank based in Waterloo, Ontario – and the Woodrow Wilson School of Public and International Affairs, Princeton University. (The first book from this partnership is Can the World Be Governed? Possibilities for Effective Multilateralism.)
Topic:: Financial Crisis
Political Geography:: United States, China, and India

21. Country Forecast: Global outlook

Publication Date:: 04-2012
Content Type:: Working Paper
Abstract:: Three years after the global economy reached its lowest point in three-quarters of a century, the recovery remains incomplete and the outlook uncertain. On March 9th 2009, the capitalisation of Morgan Stanley\'s global stockmarket index fell to US$26trn, nearly 60% below its 2007 peak. Today, the value of the world\'s stockmarkets has yet to return to the pre-crisis level—nor has the confidence of most consumers and businesses. The excesses of the last ten years—the personal debt accumulated early in the last decade and the public debt added during the recession—have saddled many countries with weak economic foundations and little or no resilience to shocks. This has left the US economy, in particular, struggling for a third straight year to lock in faster growth. It has left debt-ravaged Europe in recession and China manoeuvring unsteadily to deflate a bubble. On the brighter side, the global economy will grow again this year and the imbalances that built up over the past decade will continue to unwind. But global growth will be slower this year than last, and a host of risks—from elevated oil prices to war in the Middle East, to the collapse of Europe\'s single currency—will weigh on confidence and reduce spending and investment.
Topic:: Economics, Globalization, Markets, Global Recession, and Financial Crisis
Political Geography:: United States, China, Europe, and Middle East

22. Have Measures Adopted by States to Cope With the Global Financial Crisis Been in Accordance With Their Obligations Under International Investment Law?

Author:: Maximilian Hocke
Publication Date:: 06-2012
Content Type:: Journal Article
Journal:: The Goettingen Journal of International Law
Institution:: The Goettingen Journal of International Law
Abstract:: International investment law guarantees broad protection. The following article examines how measures against the Global Financial Crisis, e.g. the acquisition of shares or the refusal to help particular financial institutions, affected those standards. However, the article argues that due to public policy reasons the measures have been in accordance with all protection standards.
Topic:: Financial Crisis
Political Geography:: China, Germany, and Switzerland

23. EIU: Global outlook summary

Publication Date:: 06-2012
Content Type:: Policy Brief
Abstract:: The global economy remains in precarious shape. Europe's debt crisis rages on, and although the euro appears to have survived its most recent test in the form of the Greek election on June 17th, austerity and financial-market uncertainty are depressing economic activity in Europe and, by extension, in much of the rest of the world. The Economist Intelligence Unit continues to expect global GDP growth to slow in 2012, and while our forecasts for the G3 economies—the US, euro zone and China—are essentially unchanged this month, we have cut our projections for Brazil and India.
Topic:: Debt, Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:: United States, China, Europe, India, and Brazil

24. Perspectives on the G20: The Los Cabos Summit and Beyond

Author:: James A. Haley
Publication Date:: 06-2012
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: The G20 leaders meeting in Los Cabos confront a number of challenges. Most prominent among these is the state of the global economy, which remains dangerously unbalanced, and in which the balance of risks is clearly weighted on the downside. These risks emanate from several sources.
Topic:: Economics, International Cooperation, International Organization, International Trade and Finance, Markets, and Financial Crisis
Political Geography:: China

25. China's Global Rise

Author:: Lowell Dittmer
Publication Date:: 10-2012
Content Type:: Journal Article
Journal:: Americas Quarterly
Institution:: Council of the Americas
Abstract:: In the "new" developing world, China looks for trade partners-not revolutionary allies.
Topic:: Cold War, Development, United Nations, and Financial Crisis
Political Geography:: China, Beijing, and Asia

26. Toxic Legacy: Hunger, Oppression, Migration, and Health in the Democratic People's Republic of Korea

Author:: Leonard S. Rubenstein
Publication Date:: 01-2011
Content Type:: Policy Brief
Institution:: United States Institute of Peace
Abstract:: During the 1990s, economic mismanagement, political oppression, natural disaster, and loss of external subsidies after the end of communism led to a calamitous decrease in food production in the Democratic People's Republic of Korea (DPRK). The public health infrastructure, including water and sanitation systems, drug distribution and supply chains, and local clinics and hospitals, also deteriorated. At least half a million people died of starvation and millions more suffered acute or chronic malnutrition. Malnutrition increased vulnerability to disease at a time when the health system was incapable of effective response. Fifeen years later, neither health nor the food systems have recovered as the economy persistently stagnates. Health continues to be a low priority for the government. The availability of food is insufficient to meet population needs, hospitals and clinics are significantly ill-equipped, the medical workforce lacks appropriate training, and corruption in drug distribution is pervasive. Malnutrition and anemia, as well as diseases associated with poor sanitation, remain widespread. Over the last few years, DPRK has begun to accept international assistance to address health system needs, most notably to vaccinate children. Although these initiatives address some infrastructure needs, the continued centralized control of health and the lack of open discussion about key issues renders the possibility of reforms sufficient to meet the health needs of the people of North Korea dim. During the economic crisis, tens of thousands of North Koreans migrated to China despite harsh measures imposed by both governments to restrict border crossing and a refusal by China to give legal status to the migrants. To a limited extent, migration ameliorated the health impact of the crisis by stimulating illicit cross-border trade and informal markets that increased some North Koreans' access to food. Even after a disastrous effort by the DPRK government to shut the markets down in 2009, they are re-emerging. China's encouragement of these markets, along with regularizing the status of migrants in China, could advance its own economic interests as well as contributing to improving the health of North Koreans.
Topic:: Communism, Economics, Health, Markets, and Financial Crisis
Political Geography:: China, Israel, and North Korea

27. Growth and Recovery in a Time of Default: Lessons from the Role of the Urban Sector in Argentina

Author:: Michael Cohen
Publication Date:: 03-2011
Content Type:: Working Paper
Institution:: United Nations University
Abstract:: International narratives on Argentina's recovery from the crisis of 2001-02 tend to emphasize the role of rising commodity prices and growing demand from China. Argentina is said to have been 'lucky', saved by global demand for its agricultural exports. The international narrative has also been used by local agricultural exporters to justify their objections against higher export taxes during periods of high commodity prices. These narratives are not correct. Data on the country's recovery show that it was not led by agricultural exports but was fuelled by urban demand and production. When the Convertibility period ended and the peso was devalued in 2002, price increases for imports stimulated the production of domestic goods and services for consumers. This production in turn generated multiplier effects which supported small and medium-sized firms and helped to create many new jobs. This later produced a revival of the construction and then the manufacturing sectors as well.
Topic:: Agriculture, Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:: China, Argentina, and Latin America

28. Inward FDI in Israel and its policy context

Author:: Yair Aharoni
Publication Date:: 01-2011
Content Type:: Working Paper
Institution:: Columbia Center on Sustainable Investment
Abstract:: In the first four decades of its existence, Israel was not successful in attracting inward foreign direct investment (IFDI) despite attempts to do so. In the past two decades, Israel have become a haven for multinational enterprises (MNEs) that have taken advantage of its unique assets – among them a skilled, educated workforce and cutting-edge research-and-development (R) capabilities – by establishing production lines or R centers and acquiring dozens of successful start ups. Israel's IFDI stock sharply increased from US$ 4.5 billion in 1990 to US$ 71.3 billion in 2009. It is expected that IFDI will further accelerate following Israel's accession to the OECD in May 2010 and as more firms from emerging market economies, including China and India, will come to appreciate its characteristics as an ideal locational choice. Israel also weathered the global economic crisis well, even though IFDI declined sharply. Israel actively encourages IFDI, mainly in high technology areas. In 2010, the Government also created special incentives to attract research centers of financial institutions.
Topic:: Economics, Markets, Foreign Direct Investment, and Financial Crisis
Political Geography:: China, Middle East, India, and Israel

29. International order after the financial crisis

Author:: Harold James
Publication Date:: 05-2011
Content Type:: Journal Article
Institution:: Chatham House
Abstract:: The geography of power is at present being dramatically transformed, notably by the rapid economic rise of China. What makes international order legitimate in a world in which political and economic foundations are rapidly shifting? This article examines analogies and lessons from a previous transition, from a world order centered on Britain, to a US dominated global order. The article looks at two interpretations of the transition, one by E. H. Carr, the other by Charles Kindleberger. China is beginning to behave in the way expected of a Kindleberger hegemon, but also sees the possibilities of asserting power in a world that in the aftermath of 2008 looks much more like the chaotic and crisis-ridden interwar period as interpreted by E. H. Carr. The challenge for the management of the new international order will lie in the ability of China to embrace the universalistic vision that underpinned previous eras of stability, in the nineteenth century and in the late twentieth century.
Topic:: Economics and Financial Crisis
Political Geography:: Britain, United States, and China

30. The Inevitable Superpower

Author:: Arvind Subramanian
Publication Date:: 09-2011
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: Is China poised to take over from the United States as the world's leading economy? Yes, judging by its GDP, trade flows, and ability to act as a creditor to the rest of the world. In fact, China's economic dominance will be far greater and come about far sooner than most observers realize.
Topic:: Financial Crisis
Political Geography:: United States and China

31. The Middling Kingdom

Author:: Salvatore Babones
Publication Date:: 09-2011
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: By any measure, China's economic growth has been unprecedented, even miraculous. According to the International Monetary Fund, the Chinese economy grew by an average of 9.6 percent per year between 1990 and 2010. At the beginning of the recent global financial crisis, many feared that the Chinese growth engine would grind to a halt. In late 2008, Chinese exports collapsed, triggering fears of political instability and popular revolt in the country. In the end, however, the global economic crisis turned out to be little more than a pothole on the road of China's economic growth. Inflationary pressures may now be building up in China, and China's property bubble may be threatening to burst, but most economists continue to predict rapid growth for the country well into the future. Although their forecasts vary widely, they seem to share the view that China's growth will be fast -- if not as fast as it has been -- and that this rate of growth will continue for decades. These predictions are at once cautious about the near future (China's performance will not be as extraordinary as it has been) and optimistic about the distant future (they see no end to China's upward trajectory). By coincidence or design, they are moderated extrapolations of current trends. For example, the Nobel Prize-winning economist Robert Fogel believes that China will grow at an average annual rate of eight percent until 2040, by which time it will be twice as rich as Europe (in per capita terms) and its share of global GDP will be 40 percent (compared with 14 percent for the United States and five percent for the European Union). Other economists are slightly more cautious: Uri Dadush and Bennett Stancil of the Carnegie Endowment for International Peace predict that China will grow by 5.6 percent per year through 2050.
Topic:: Financial Crisis
Political Geography:: China

32. The Future of Convergence

Author:: Dani Rodrik
Publication Date:: 10-2011
Content Type:: Working Paper
Institution:: Weatherhead Center for International Affairs, Harvard University
Abstract:: Novelists have a better track record than economists at foretelling the future. Consider then Gary Shteyngart's timely comic novel “Super Sad True Love Story” (Random House, 2010), which provides a rather graphic vision of what lies in store for the world economy. The novel takes place in the near future and is set against the backdrop of a United States that lies in economic and political ruin. The country's bankrupt economy is ruled with a firm hand by the IMF from its new Parthenon-shaped headquarters in Singapore. China and sovereign wealth funds have parceled America's most desirable real estate among themselves. Poor people are designated as LNWI (“low net worth individual s”) and are being pushed into ghettoes. Even skilled Americans are desperate to acquire residency status in foreign lands. (A degree in econometrics helps a lot, as it turns out). Ivy League colleges have adopted the names of their Asian partners and yuan-backed dollars are the only safe currency.
Topic:: Debt, Economics, Emerging Markets, Sovereign Wealth Funds, and Financial Crisis
Political Geography:: United States, China, America, and Singapore

33. Is Indonesia Bound for the BRICs?

Author:: Karen Brooks
Publication Date:: 11-2011
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: Indonesia is in the midst of a yearlong debut on the world stage. This past spring and summer, it hosted a series of high-profile summits, including for the Overseas Private Investment Corporation in May, the World Economic Forum on East Asia the same month, and the Association of Southeast Asian Nations (ASEAN) in July. With each event, Indonesia received broad praise for its leadership and achievements. This coming-out party will culminate in November, when the country hosts the East Asia Summit, which U.S. President Barack Obama and world leaders from 17 other countries will attend. As attention turns to Indonesia, the time is ripe to assess whether Jakarta can live up to all the hype. A little over ten years ago, during the height of the Asian financial crisis, Indonesia looked like a state on the brink of collapse. The rupiah was in a death spiral, protests against President Suharto's regime had turned into riots, and violence had erupted against Indonesia's ethnic Chinese community. The chaos left the country -- the fourth largest in the world, a sprawling archipelago including more than 17,000 islands, 200 million people, and the world's largest Muslim population -- without a clear leader. Today, Indonesia is hailed as a model democracy and is a darling of the international financial community. The Jakarta Stock Exchange has been among the world's top performers in recent years, and some analysts have even called for adding Indonesia to the ranks of the BRIC countries (Brazil, Russia, India, and China). More recent efforts to identify the economic superstars of the future -- Goldman Sachs' "Next 11," PricewaterhouseCoopers' "E-7" (emerging 7), The Economist's "CIVETS" (Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa), and Citigroup's "3G" -- all include Indonesia.
Topic:: Economics and Financial Crisis
Political Geography:: Russia, United States, China, Indonesia, India, East Asia, Brazil, and Island

34. Chinese Perspectives on International Power Shifts and Sino-EU Relations (2008–2011)

Author:: Nele Noesselt
Publication Date:: 04-2011
Content Type:: Working Paper
Institution:: German Institute of Global and Area Studies
Abstract:: With the beginning of the post-Maoist era, the focus of Chinese foreign policy shifted from ideology and revolution to pragmatism and reform. Chinese scholars in the field of International Relations (IR) are now encouraged to develop abstract scientific analyses of China's international environment. This requires not only the handling of IR theories and methods of foreign policy analysis (FPA), but also a sound knowledge of the organizational structures and policy principles of other states.
Topic:: International Relations, Foreign Policy, and Financial Crisis
Political Geography:: China and Europe

35. Interdependency Theory: China, India and the West

Author:: Simon Tay
Publication Date:: 09-2010
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: No abstract is available.
Topic:: Development, Economics, Government, and Financial Crisis
Political Geography:: China and India

36. The G-20 and International Financial Institution Governance

Author:: Edwin M. Truman
Publication Date:: 09-2010
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: This paper addresses the agenda for the Group of Twenty (G-20) leaders' meeting in Seoul, Korea in November 2010. This is an opportunity and challenge for Asian leaders in particular. Their test will be, first, to demonstrate that they can responsibly advance economic recovery. They must also deliver on institutional reform, in particular of the International Monetary Fund (IMF). I advocate a substantial expansion of the IMF's role as lender of last resort that is integrated with the surveillance role of the IMF in the form of comprehensive prequalification for IMF assistance and policy advice and a substantial increase in the IMF's financial resources. I also propose an approach to meaningful reform of the distribution of IMF quotas along with limiting European seats on the IMF executive board.
Topic:: Economics, Emerging Markets, Global Recession, Financial Crisis, and Governance
Political Geography:: China, Israel, Asia, and Korea

37. Five Surprises of the Great Recession

Author:: Uri Dadush and Vera Eidelman
Publication Date:: 11-2010
Content Type:: Policy Brief
Institution:: Carnegie Endowment for International Peace
Abstract:: The Great Recession included five major surprises: (1) the severity of the global trade and output collapse, (2) the United States suffered a milder than expected recession, (3) Europe saw the onset of a severe sovereign debt crisis, (4) China grew at an extraordinary rate even though it's greatly dependent on exports, and (5) Latin America showed remarkable resilience.
Topic:: Economics, Globalization, Global Recession, and Financial Crisis
Political Geography:: United States, China, Europe, and Latin America

38. Uluslararası Güç Dengeleri Bağlamında Uluslararası Finans Sisteminin Yeniden Yapılandırılması: Disiplinlerarası Bir Değerlendirme

Author:: Gökhan Özkan
Publication Date:: 10-2010
Content Type:: Journal Article
Journal:: Uluslararasi Iliskiler
Institution:: Uluslararasi Iliskiler
Abstract:: The global financial crisis triggered debate on restructuring international financial system. In this study, restructuring process of the international financial system is evaluated within the context of international balance of power. It is argued that it is insufficient to focus only on the economic dimension, but restructuring should be evaluated by taking into account international political dynamics. This work looks at how differences of opinion between the developed countries, particularly the G-7 countries and the developing (emerging?) countries, particularly Brazil, Russia, India and China shape the process. It is anticipated that the restructuring process will proceed at a modest pace because of the asymmetry of interests and the gap between the understandings of the developing and developed countries about reforming the decision-making mechanisms of the IMF and the World Bank and the diversification of the international monetary system. It is concluded that the new shape of the international financial architecture will depend on the international politics and balance of power as well as the evolution of the global crisis and the economic dynamics.
Topic:: International Trade and Finance, International Monetary Fund, Financial Crisis, and World Bank
Political Geography:: Russia, China, India, and Brazil

39. U.S. BITs and financial stability

Author:: Kevin P. Gallagher
Publication Date:: 02-2010
Content Type:: Policy Brief
Institution:: Columbia Center on Sustainable Investment
Abstract:: Almost immediately after taking office, the Obama administration charged the U.S. Department of State's Advisory Committee on International Economic Policy with reviewing the U.S. Model bilateral investment treaty (BIT). The group established a sub-committee of business groups, labor and environmental organizations, and a handful of academic experts and tasked it to make official recommendations for reforming U.S. investment treaties. When completed, the Obama Administration hopes to proceed with official negotiations with China, India, Vietnam, and possibly Brazil.
Topic:: Economics, Globalization, and Financial Crisis
Political Geography:: United States, China, India, Brazil, and Vietnam

40. Confronting the Long Crisis of Globalization

Author:: Alex Evans, Bruce Jones, and David Steven
Publication Date:: 01-2010
Content Type:: Working Paper
Institution:: Center on International Cooperation
Abstract:: Globalization has entered a turbulent period. Over the past twenty years, the most significant threats to international security, stability, and prosperity have evolved rapidly. Global systems are now tightly interconnected, with risk proliferating freely across borders.
Topic:: Debt, Globalization, and Financial Crisis
Political Geography:: Russia, China, and India

41. The Sustainability of China's Recovery from the Global Recession

Author:: Nicholas R. Lardy
Publication Date:: 03-2010
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: China's policy response to the global financial and economic crisis was early, large, and well-designed. Although Chinese financial institutions had little exposure to the toxic financial assets that brought down many large Western investment banks and other financial firms, China's leadership recognized that its dependence on exports meant that it was acutely vulnerable to a global recession. Thus they did not subscribe to the view sometimes described as “decoupling,” the idea that Asian countries could passively weather the financial storm that originated in the United States and other advanced industrial economies. They understood that absent a vigorous policy response China inevitably would suffer from the backwash of a sharp economic slowdown in its largest export markets—the United States and Europe.
Topic:: Economics and Financial Crisis
Political Geography:: United States, China, Europe, and Asia

42. Developing Countries – even China – Cannot Rescue the World Economy

Author:: Manmohan Agarwal
Publication Date:: 01-2010
Content Type:: Policy Brief
Institution:: Centre for International Governance Innovation (CIGI)
Abstract:: Many analysts believe that developed countries will recover very slowly from the global economic crisis. Consequently, they have looked to the emerging economies of the developing world to help stabilize the world economy and generate a stronger recovery. Indeed, when the financial crisis first engulfed the rich countries in 2008 and early 2009, growth in developing economies was not affected as their banks and financial systems faced neither credit problems nor a more serious meltdown. It is true that some foreign investors, particularly institutional investors, withdrew their money from developing countries with large stock exchanges, setting off stock price declines and some currency devaluations. But this did not affect the “real” economy of production and employment. There was a wide belief that many developing economies were “decoupled” from the rich economies and could continue to grow and this growth would buoy the world economy. Even when output declined dramatically in the developed economies, reducing the demand for developing countries' exports, it was expected that growth in the larger emerging economies would not be significantly affected. This has been borne out by subsequent events. Growth in China has been 8-9 percent and in India about 6 percent in the first three quarters of 2009.
Topic:: Development, Economics, Emerging Markets, International Trade and Finance, and Financial Crisis
Political Geography:: China and India

43. The Global Financial Crisis and Africa's "Immiserizing Wealth"

Author:: Luc Soete and Alexis Habiyaremye
Publication Date:: 01-2010
Content Type:: Policy Brief
Institution:: United Nations University
Abstract:: Before the current global recession, many resource-rich African countries were recording unprecedented levels of growth due to a raw material price boom. However, the collapse in raw material prices and the ensuing severe economic difficulties have again exposed the vulnerability of these countries' natural resource export-focussed economic structures. In this research brief, we describe how Africa's abundance of natural resources attracted disruptive and predatory foreign forces that have hindered innovation-based growth and economic diversification by delaying the accumulation of sufficient stocks of human capital. We suggest that for their long-term prosperity, resource-rich African countries shift their strategic emphasis from natural to human resources and technological capabilities needed to transform those natural resources into valuable goods and services to compete in the global market.
Topic:: Economics, Emerging Markets, Industrial Policy, Global Recession, Natural Resources, and Financial Crisis
Political Geography:: Africa, China, and India

44. The evolving post-crisis world

Author:: Stephen Grenville
Publication Date:: 04-2010
Content Type:: Working Paper
Institution:: Lowy Institute for International Policy
Abstract:: The worst of the global financial crisis (GFC) is over, but it has left scars, principally in the form of fiscallydriven debt increases, balance sheets that still need repair and high unemployment in the principal crisis countries. There is also unfinished business from the precrisis period, in the form of external imbalances. More positively, the crisis offers lessons about economic policymaking that may improve the way things are done. Of course the main lessons are for the developed countries that were at the centre of the crisis. But the countries of the region had to cope with the backwash, and in doing so lessons were learned. In addition, the lessons in the crisis countries, learned in an environment of extreme stress, may have relevance for the emerging market economies of this region.
Topic:: Development, Emerging Markets, and Financial Crisis
Political Geography:: China, India, and Asia

45. Indian FDI falls in global economic crisis: Indian multinationals tread cautiously

Author:: Jaya Prakash Pradhan
Publication Date:: 08-2009
Content Type:: Working Paper
Institution:: Columbia Center on Sustainable Investment
Abstract:: Just over a year ago, outward foreign direct investment (OFDI) from India seemed to be on a path of rapid and sustained growth. Its annual average growth of 98% during 2004–07 had been unprecedented , much ahead of OFDI growth from other emerging markets like China (74%), Malaysia (70%), Russia (53%), and the Republic of Korea (51%), although from a much lower base. Much of this recent growth had been fuelled by large-scale overseas acquisitions, however, and it faltered when the global financial crisis that started in late 2007 made financing acquisitions harder.
Topic:: Economics, International Political Economy, International Trade and Finance, Markets, Foreign Direct Investment, and Financial Crisis
Political Geography:: Russia, China, South Asia, Malaysia, and Korea

46. The United States and the Asia-Pacific Region: National Interests and Strategic Imperatives

Author:: James J. Przystup
Publication Date:: 04-2009
Content Type:: Working Paper
Abstract:: From its earliest days, the United States has been engaged in trade with East Asia. In February 1784, the Empress of China left New York harbor, sailing east to China, arriving at Macau on the China coast in August of that year. The ship returned to the United States the following May with a consignment of Chinese goods, which generated a profit of $30,000. In 1844, China granted the United States trading rights in the Treaty of Wanghia.
Topic:: Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:: United States, China, Asia, and Australia/Pacific

47. Soft budget constraints in China: Evidence from the Guangdong hospital industry

Author:: Karen Eggleston, Mingshan Lu, Congdong Li, Jian Wang, Zhe Yang, Jing Zhang, and Yu-Chu Shen
Publication Date:: 03-2009
Content Type:: Working Paper
Institution:: Walter H. Shorenstein Asia-Pacific Research Center
Abstract:: Using data from 276 general acute hospitals in the Pearl River Delta region of Guangdong Province from 2002 and 2004, we construct a preliminary metric of budget constraint softness. We find that, controlling for hospital size, ownership, and other factors, a Chinese hospital's probability of receiving government financial support is inversely associated with the hospital's previous net revenue, an association consistent with soft budget constraints.
Topic:: Government, Health, and Financial Crisis
Political Geography:: China and Asia

48. Effects of the Financial Crisis on The U.S.-China Economic Relationship

Author:: Eswar S. Prasad
Publication Date:: 08-2009
Content Type:: Journal Article
Journal:: The Cato Journal
Institution:: The Cato Institute
Abstract:: The U.S. and China are two of the dominant economies in the world today and the nature of their relationship has far-reaching implications for the smooth functioning of the global trade and financial systems. These two economies are becoming increasingly integrated with each other through the flows of goods, financial capital, and people. These rising linkages of course now stretch far beyond just trade and finance, to a variety of geopolitical and global security issues. Getting this relationship right is therefore of considerable importance.
Topic:: Financial Crisis
Political Geography:: United States and China

49. China's Employment Crisis – A Stimulus for Policy Change?

Author:: Günter Schucher
Publication Date:: 09-2009
Content Type:: Journal Article
Institution:: German Institute of Global and Area Studies
Abstract:: In the face of severe job problems, China's government has adopted a huge stimulus package in a bid to achieve eight per cent economic growth, which is said to guarantee at least enough jobs for the new entrants to the labour market. The real situation, however, will be much grimmer than statistics indicate. Unregistered groups like unemployed rural migrants, job-searching college graduates, laid-off workers and others together with the officially registered unemployed and the new market entrants could add up to 42 million altogether, while even the most optimistic estimates say only around 15 million new jobs could be created in 2009. Nevertheless, the stimulus package demonstrates an at least temporary shift in economic policy from capital-intensive to labour-intensive growth. Additionally, the new initiatives to boost social-security spending could help to address the grievances of the most vulnerable groups in the labour market. The Chinese government's reaction to the emerging employment crisis once again demonstrates the often underestimated adaptability of China's leadership.
Topic:: Financial Crisis
Political Geography:: China

50. External imbalances and the G20

Author:: Stephen Grenville
Publication Date:: 09-2009
Content Type:: Policy Brief
Institution:: Lowy Institute for International Policy
Abstract:: International external imbalances have been blamed for playing a central role in the Global Financial Crisis. China's large external surplus usually figures prominently in these explanations. While a more balanced account of the causes of the crisis would give only a modest role to external imbalances there seems little doubt that some adjustment of these imbalances over the next few years is both inevitable and desirable, not because external imbalances in themselves are inherently undesirable, but because some of the specific components of today's current balances are unsustainable. Markets could bring about these necessary adjustments over time. History, however, tells us that market-driven adjustments are often accompanied by exchange-rate overshooting and trade- threatening protectionist responses.
Topic:: Economics, International Trade and Finance, and Financial Crisis
Political Geography:: China

51. Beyond Market Forces: Regulating the Global Security Industry

Author:: James Cockayne, Emily Speers Mears, Alison Gurin, Iveta Cherneva, Sheila Oviedo, and Dylan Yaeger
Publication Date:: 07-2009
Content Type:: Working Paper
Institution:: International Peace Institute (IPI)
Abstract:: In late 2008, seventeen states, including the US, UK, China, Iraq, Afghanistan, and others, endorsed the Montreux Document on Pertinent International Legal Obligations and Good Practices for States related to Operations of Private Military and Security Companies during Armed Conflict (2008). This provides important guidance to states in regulating private military and security companies (PMSCs). However, there is a need to do more, to provide increased guidance to the industry and ensure standards are enforced.
Topic:: Security, Globalization, Markets, International Security, and Financial Crisis
Political Geography:: Afghanistan, United States, China, Iraq, and United Kingdom

52. Assessing the slowdown in China

Publication Date:: 04-2009
Content Type:: Working Paper
Institution:: Oxford Economics
Abstract:: Growth in China has slowed dramatically over the past year from a blistering pace of over 13% in 2007 to just 6.1% in 2009 Q1. A turning in the domestic investment cycle has been coupled with a dramatic slowdown in external demand. Despite an unprecedented fiscal package, in the near term we expect growth to dip below 6% but it should begin to recover strongly towards the end of this year as the fiscal stimulus comes on stream, rising to 10% by end-2010. Indeed, some green shoots of recovery are already emerging with a pickup in manufacturing new orders and strong growth in credit. Domestic demand may be recovering but the impact of the external crisis on China’s growth prospects is uncertain. Nevertheless, more fundamental downside risks remain if rising unemployment leads to social instability or if an increase in loss-making investments uncovers weakness in the banking sector. By looking at what has driven the recent slowdown and how this compares with previous downturns, we can shed light on China’s prospects going forward and the major risks.
Topic:: Economics and Financial Crisis
Political Geography:: China and Asia

53. China's Economic Policy in the Time of the Global Financial Crisis: Which Way Out?

Author:: Margot Schüller and Yun Schüllerr-Zhou
Publication Date:: 12-2009
Content Type:: Journal Article
Institution:: German Institute of Global and Area Studies
Abstract:: This contribution analyses the impact of the global financial crisis on the Chinese economy and the policies implemented by the Chinese government to cope with it. We argue, first, that China has not been able to decouple its economic performance from that of the U.S. and other developed countries. Second, although economic growth in the second quarter of 2009 showed that the stimulus package is working, the current development does not seem to be sustainable. In order to avoid another round of overheating, the government needs to adjust its stimulus policy. Third, the current crisis offers opportunities to conduct necessary structural adjustments in favour of more market-based and innovative industries, more investment by private companies and a stronger role of private consumption in economic growth. Fourth, with the external demand from the OECD countries declining, Chinese export companies need to further diversify their international markets and re-orient their production and sales strategies to some extent towards the domestic market.
Topic:: Economics, Government, and Financial Crisis
Political Geography:: United States and China

54. Sharing the Pain: The Global Struggle Over Savings

Author:: Michael Pettis
Publication Date:: 11-2009
Content Type:: Policy Brief
Institution:: Carnegie Endowment for International Peace
Abstract:: In September, the Obama administration imposed tariffs on Chinese tires. In October, the U.S. Department of Commerce announced it would launch an investigation into imports of seamless steel pipes from China. That same month, the U.S. Chamber of Commerce and the U.S.–China Business Council, two groups that in the past have defended Chinese policies, testified to the Office of the U.S. Trade Representative that Chinese contracting rules, technical standards, and licensing requirements were protectionist.
Topic:: Economics, Globalization, Foreign Direct Investment, and Financial Crisis
Political Geography:: China, Middle East, and Asia

55. The Great Regression? Financial Crisis in an Age of Global Interdependence

Author:: Vadim Kononenko, Raimo Väyrynen, Toby Archer, Kristian Kurki (ed.), and Matti Nojonen
Publication Date:: 12-2009
Content Type:: Working Paper
Institution:: Finnish Institute of International Affairs
Abstract:: The financial crisis and the ensuing global economic downturn have been the focal point of news coverage and policy analysis for over a year now, and speculation has been rife about how things will pan out. At one extreme are those who shrug the situation off as a significant yet transient dent in economic development, with marginal repercussions on the global system. At the other end are those touting the crisis as the first step in an epoch-making transition in the global power balance, where rapidly expanding economies like China, Brazil and India will make gains on the hitherto dominant developed nations, shifting the distribution of power in the world. Whatever the eventual outcome, there is no denying that the crisis's impact on international relations will be significant.
Topic:: Economics, Globalization, Power Politics, and Financial Crisis
Political Geography:: China, India, and Brazil

56. "Can't Buy Me Love": Will the global economic downturn help Russia consolidate its influence in post-Soviet Eurasia?

Author:: Igor Torbakov and Vadim Kononenko
Publication Date:: 09-2009
Content Type:: Policy Brief
Institution:: Finnish Institute of International Affairs
Abstract:: As the Kremlin believes that the global economic downturn is increasing the trend towards greater regionalism, the strategic conclusion is to strengthen Russia's position as the centre of its "own region" - post-Soviet Eurasia. In order to enhance its geopolitical posture in the ex-Soviet area, Russia has been pursuing a two- track policy: it is buying up assets from, and giving out loans to, its distressed neighbours on a massive scale. Several forces appear to be working at cross-purposes with the Kremlin's ambitions: 1) the state of Russia's own economic system; 2) the wiliness and cunning maneuvering of Moscow's "allies"; and 3) the growing competition on the part of the other centres of power - the European Union and China. Ultimately, the Kremlin's desperate efforts to turn Russia into a geopolitical leader of the Commonwealth of Independent States (CIS) are likely to be frustrated by Russia's lack of a coherent long-term strategy and by its socio-political system's dearth of appeal.
Topic:: Globalization and Financial Crisis
Political Geography:: Russia, China, Europe, Asia, and Soviet Union

57. China-Southeast Asia Relations

Author:: Robert Sutter
Publication Date:: 01-2009
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: Asian commentators who asserted that China and its neighbors could ride out the economic crisis in U.S. and Western financial markets appeared in retreat during the quarter as the impact of the financial turmoil and recession in America and Europe began to have a major effect on China and the region's trade, manufacturing, currency values, and broader economic stability. The hope that China could sustain stable growth independent of the U.S. and Europe and thereby provide an engine of growth for export-oriented Southeast Asian countries was dented by Chinese trade figures that nosedived in November, especially Chinese imports, which fell by 18 percent. The financial crisis also dominated the discussion at the ASEM summit in October. Meanwhile, China continued to pursue infrastructure development projects with its neighbors to the south, resolved the land boundary dispute with Vietnam, and signed a free trade agreement with Singapore. Talk of a planned Chinese aircraft carrier caused some controversy, but on the whole assessments of China's rise were notably more balanced than in the past.
Topic:: Economics, Financial Crisis, and Reform
Political Geography:: United States, China, America, Europe, Asia, and Southeast Asia

58. China-Russia Relations

Author:: Yu Bin
Publication Date:: 07-2009
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: Between June 14-18 Russian and Chinese heads of state interacted on a daily basis at three summits: the Ninth annual SCO summit and the first ever Brazil, Russia, India, and China (BRIC) summit (both in Yekaterinburg), and their own annual bilateral meeting in Moscow. The locus of Russian-China relations was, therefore, “relocated” to Russia. Economic issues dominated these meetings as the global financial crisis deepened. Mounting danger on the Korean Peninsula and instability in Iran were also recurring themes. President Hu Jintao's five-day stay in Russia ended when he joined President Dmitry Medvedev to watch a spectacular performance by Chinese and Russian artists in Moscow's Bolshoi Theatre for the 60th anniversary of Russian-China diplomatic relations.
Topic:: NATO and Financial Crisis
Political Geography:: Russia, China, Iran, India, and Brazil

59. The G-2 Mirage

Author:: Elizabeth C. Economy and Adam Segal
Publication Date:: 05-2009
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: A heightened bilateral relationship may not be possible for China and the United States, as the two countries have mismatched interests and values. Washington should embrace a more flexible and multilateral approach.
Topic:: Foreign Policy and Financial Crisis
Political Geography:: United States, China, Washington, Israel, and Palestine

60. The Internationalization of Chinese and Indian Firms: Trends, Motivations and Policy Implications

Author:: Sandeep Kapur and Suma Athreye
Publication Date:: 01-2009
Content Type:: Policy Brief
Institution:: United Nations University
Abstract:: The last two decades have seen a significant rise in the internationalization of firms from developing economies. In addition to their growing participation in international trade, a number of leading emerging economies are contributing to growing outflows of foreign direct investment (FDI) and cross-border mergers and acquisitions. According to the 2008 World Investment Report, outward flows of FDI from developing countries rose from about US$6 billion between 1989 and 1991 to US$225 billion in 2007. As a percentage of total global outflows, the share of developing countries grew from 2.7% to nearly 13.0% during this period.
Topic:: International Relations, Economics, Globalization, International Political Economy, Markets, Foreign Direct Investment, and Financial Crisis
Political Geography:: United States, China, and India

61. Indian FDI falls in global economic crisis: Indian multinationals tread cautiously

Author:: Jaya Prakash Pradhan
Publication Date:: 08-2009
Content Type:: Policy Brief
Institution:: Columbia Center on Sustainable Investment
Abstract:: Just over a year ago, outward foreign direct investment (OFDI) from India seemed to be on a path of rapid and sustained growth. Its annual average growth of 98% during 2004–07 had been unprecedented , much ahead of OFDI growth from other emerging markets like China (74%), Malaysia (70%), Russia (53%), and the Republic of Korea (51%), although from a much lower base. Much of this recent growth had been fuelled by large-scale overseas acquisitions, however, and it faltered when the global financial crisis that started in late 2007 made financing acquisitions harder.
Topic:: Development, Economics, Foreign Direct Investment, and Financial Crisis
Political Geography:: Russia, China, Malaysia, India, and Korea

62. While global FDI falls, China's outward FDI doubles

Author:: Ken Davies
Publication Date:: 05-2009
Content Type:: Policy Brief
Institution:: Columbia Center on Sustainable Investment
Abstract:: In 2008 global FDI fell by around 20%, while outward FDI from China nearly doubled. This disparity is likely to continue in 2009 and 2010 as China invests even more overseas. What is driving this continuing surge in China's outward FDI?
Topic:: International Trade and Finance, Foreign Direct Investment, and Financial Crisis
Political Geography:: China and Asia

63. Country Economic Forecasts: China

Publication Date:: 12-2008
Content Type:: Policy Brief
Institution:: Oxford Economics
Abstract:: A turn in the domestic investment cycle has been coupled with a dramatic slowdown in external demand, leaving China weathering storms on both fronts. But with the government announcing an unprecedented fiscal package and with fewer structural problems to contend with than in earlier downturns, China is likely to fare better than in previous domestically-driven slowdowns such as in the early-1980s and 1990s.
Topic:: Development, Economics, Markets, and Financial Crisis
Political Geography:: China

64. Global Imbalances and Financial Reform with Examples from China

Author:: Raghuram G. Rajan
Publication Date:: 07-2006
Content Type:: Journal Article
Journal:: The Cato Journal
Institution:: The Cato Institute
Abstract:: I will focus on a familiar issue, the problem of global current account imbalances, and will describe how financial sector reform can help narrow them, using examples from China. The United States is running a current account deficit approaching 6.25 percent of its GDP and over 1.5 percent of world GDP. To help finance it, the United States pulls in 70 percent of all global capital flows. Clearly, such a large deficit is unsustainable in the long run. The current situation has its roots in a series of crises over the last decade that were caused by excessive investment, such as the Japanese asset bubble, the crises in emerging markets in Asia and Latin America, and most recently, the IT bubble. Investment has fallen off sharply since, with only very cautious recovery. This is particularly true of emerging Asia and Japan. The policy response to the slowdown in investment has differed across countries. In the industrial countries, accommodative policies such as expansionary budgets and low interest rates have led to consumption- or credit-fueled growth, particularly in Anglo-Saxon countries. Government savings have fallen, especially in the United States and Japan, and household savings have virtually disappeared in some countries with housing booms. By contrast, the crises were a wake-up call in a number of emerging market countries. Historically lax policies have been tightened, with some countries running primary fiscal surpluses for the first time, and most bringing down inflation through tight monetary policy. With corporations cautious, and governments abandoning the grandiose projects of the past, investment has fallen off. Instead, exports have led growth. Many emerging markets have run current account surpluses for the first time. In emerging Asia, a corollary has been a buildup of international reserves.
Topic:: Financial Crisis, Reform, Finance, Economy, and Deficit
Political Geography:: China, Asia, North America, and United States of America

65. Five Persistent Myths About China's Banking System

Author:: Jonathan Anderson
Publication Date:: 07-2006
Content Type:: Journal Article
Journal:: The Cato Journal
Institution:: The Cato Institute
Abstract:: Of all the various topics and issues facing observers of the Chinese economy, it is safe to say that none arouses more spirited debate than the role of the financial system, and in particular the state of Chinese banks. Is the mainland on the verge of a financial crisis? Has the recent economic overheating created a new flood of bad loans? Do banks know how to allocate capital, or are they simply quasi-fiscal agencies acting at the mercy of the government? And does the rapidly opening financial system represent a gold mine or a “black hole” for foreign investors? The answers to these questions are not always straightforward, but in our experience the truth lies very much away from the extremes so often presented in the financial press. Chinese banks are by no means “out of the woods,” first and foremost because they remain stateowned institutions, but they are now well advanced from their situation only a decade ago. This means that the economy is protected from the risk of a financial crisis—but, on the other hand, the banking sector is more a sunset industry than an exciting growth sector. There are a number of myths about banks and the financial system in China but the following are the most important and most persistent: (1) China’s cost of capital is far too low; (2) Mainland banks are unreconstructed quasi-fiscal agencies; (3) Bank recapitalization is a sham; (4) Banks are already “out of the woods”; and (5) The Chinese banking system is an exciting growth industry. Let us now examine these five myths.
Topic:: Economics, Financial Crisis, Finance, Economic Growth, and Banking
Political Geography:: China and Asia

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COLUMBIA UNIVERSITY PRESS