Tuesday, July 27, 2010

Not in my Backyard - Zomereditie - Toerisme

Toeristische oorden maken zich op voor de komst van miljoenen recreërende Nederlanders. Wat betekent onze komst voor de ontvangende gebieden en hun bevolking? Wordt Afrika er rijker van? Redden toeristen berggorilla’s in Oeganda? Hoe verandert toerisme steden zoals Barcelona? En blijft trekpleister Thailand het ‘land van de glimlach’? Plus: verzamel do’s & don’ts voor je eigen reis.

Not in my Backyard(voorheen Mind the Gap) is de maandelijkse internationale actualiteitenrubriek van De Balie. Deze maand de zomereditie over toerisme en de gevolgen ervan.

Te gast zijn René van der Duim (hoogleraar duurzaam toerisme, Wageningen Universiteit), John Hummel (Toerismeadviseur Azië, SNV), Matthijs van den Broek (Further East Consult) en Greg Richards (hoogleraar vrijetijdsstudies, Universiteit van Tilburg). En ook Lars van Troost (Amnesty International), onafhankelijk onderzoeker Djörn Eversteijn, satire van Peter Pannekoek (Comedytrain) en onze huisband Jomato Foe. Het programma staat onder leiding van Isolde Hallensleben

Friday, July 23, 2010

Asia's role in the post-crisis environment

SPEECH BY DR TONY TAN KENG YAM, DEPUTY CHAIRMAN AND EXECUTIVE DIRECTOR, GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION AT THE SWISS RE FORUM SINGAPORE AT 10.30 AM ON 23RD JULY 2010

Asia’s Role In The Post-Crisis Environment

1. I would first like to thank the organisers for inviting me to speak at this year’s Swiss Re Forum.

2. The topic of my speech is ―Asia’s role in the Post-Crisis Environment‖. I will first take stock of how the Great Financial Crisis of 2008/09 is likely to change the global economic, political, and investment environment. I will then focus on the challenges and opportunities these changes pose for Asia.

The Global Outlook

3. First, let me share a few thoughts on the global economic outlook.

4. The global economy has clearly rebounded from the Great Crisis of 2008/9. After hitting a trough in the first half of 2009, the global economy has seen consistent growth. Massive policy support provided by governments and central banks is working. Global growth could hit 4% in 2010, up from a contraction of close to 2% last year.

5. Growth, however, will be uneven with the strongest performance coming from the emerging market economies, especially Asia. Asia has benefited from the pick-up in global trade and manufacturing; additionally, strong balance sheet fundamentals remain supportive of domestic demand. Growth in Asia ex-Japan could reach 8% this year, with China and India among the larger countries leading at 8-10%.

6. The US and Europe should continue to grow over this year notwithstanding higher downside risks. In the US, growth is likely to moderate in the second half of 2010 to a 2-3% pace. Although prospects for the US economy have improved, it does not look like the US will enjoy the growth spurt that typically follows a deep contraction. Growth in Europe should be weaker at around 1%, reflecting turmoil in the periphery states and more rapid fiscal consolidation.

7. The current global recovery is likely to continue into 2011, albeit at a more moderate pace. The strong rebound in global industrial production is peaking while monetary and fiscal policies, particularly in the larger emerging economies, are being normalised.

8. However, downside risks to the global economy have increased. I highlight three risks:
i) the turmoil in Europe;
ii) continued deleveraging in the US; and
iii) protectionist pressures in many countries.
The economic recovery, while real, is fragile and there is a risk that negative shocks could push the global economy towards a recession sooner than expected.

A Riskier Post-Crisis Environment

9. The post-crisis global economic and financial environment will be affected by three major trends.

10. First, it will take a long time for the developed world to fully heal from this crisis. The current recovery in the developed economies could continue, at least in the very short-term, but even the most optimistic economist expects the bounce to be much weaker than what has occurred in the past.

11. The second major trend in the post-crisis environment is the increasing importance of the emerging economies, anchored by Brazil, Russia, India, and China or the BRICs. For the first time in economic history, the long-term fiscal debt trends in much of the emerging world are better than those in much of the developed world.

12. The shift in economic power to the emerging world will likely increase geopolitical risks. For one, the emerging economies, especially the BRICs will become key global powers and increasingly demand more say on world affairs. Conflicts could also arise over access to natural resources.

13. For investors, the rise of emerging markets will mean that a larger proportion of their investments will be in these markets. Far from being a risky and perhaps optional part of their portfolios, emerging markets will become a core and unavoidable asset class in global portfolios.

14. The third major trend in the post-crisis environment will be increased vulnerability to negative events and extreme reliance on government policies both for support and far reaching reforms over the next few years.

15. The current recovery is being sustained by unprecedented policy support. Changes in policies or mistakes will thus have a significant impact on the global economic and financial environment.

16. A key challenge for policymakers is to properly time the withdrawal of unprecedented monetary and fiscal policies. Policymakers risk derailing the recovery if withdrawal is too early or too sharp. However, policymakers run the risk of creating excessive inflation over the medium-term, if emergency-levels of policy stimulus are left unchanged for too long.

17. In some countries, policymakers have come under pressure to repair public finances which have deteriorated markedly because of the financial crisis. Over the past couple of months, we have seen the turmoil in European debt markets spread as markets question the fiscal sustainability of an increasing number of states within the European Monetary Union. The challenge for policymakers in many developed economies will be to convince markets that they have credible plans to ensure sustainable public finances over the medium to long-term, while minimizing the negative short-term impact on growth. This is particularly true for countries that already faced difficult medium to longer-term fiscal challenges before the crisis. While markets have focused on Greece, Portugal, Spain, Ireland and Italy, this risk remains high for the UK, US, and Japan.

18. In the emerging economies, policymakers will have to deal with rising inflation and possible asset price bubbles. In contrast to the developed countries, the strong recovery in emerging markets means that CPI inflation will be driven by narrowing then positive output gaps and rising commodity prices. Asset prices, particularly in Asian real estate, have been supported by extremely accommodative global financial conditions, credit policies, a positive structural story, and in some countries, strong capital inflows.

19. Finally, high unemployment and unhappiness over ―"bail-outs" could lead to populist policies, including excessive regulation and protectionism. There is, especially in the developed world, a feeling that the financial sector has ―rigged‖ the system so that it cannot lose—it is simply too big to fail. While there is little doubt that some rebalancing towards better regulation, restructuring and supervision is needed, there is a risk in this environment that such reforms are excessive and ends up stifling innovation and growth. Protectionism also remains a risk despite the recovery, given high unemployment and what seems to be, for the first time in many years, increasing tensions between American and European businesses and the Chinese policy environment.

Implications for Asia: Post-Crisis Opportunities

20. Asia has benefited tremendously from post-WWII globalisation and liberalisation trends. Strong growth in the developed world, trade liberalisation, and a broadly stable geopolitical environment has enabled Asia’s export-oriented development strategy to work. This has underpinned Asia’s rapid economic growth and convergence to the developed world.

21. The post-crisis environment I have just described challenges these basic trends which, till now, have been taken almost for granted. Going forward, growth in the developed world will be modest at best. High unemployment increases the risk of protectionism and a reversal of globalisation. Shifting economic power could lead to conflicts among nations. Asia will increasingly face labour, natural resource, and commodity constraints to its high growth strategy.

22. Can Asia and the West adapt to these challenges? While we should not underestimate the difficulty of the challenges and there will certainly be setbacks from time to time, I believe that the answer broadly is yes as it is in the interest of Asia and the West to work together for mutual benefit.

Opportunities in Economic Rebalancing

23. In the next stage of Asia’s economic development, Asia’s economic growth model is likely to change from depending largely on exports to a more balanced model in which private domestic demand is also a key source of growth. In some countries, especially the larger economies of the BRICs, an expanded middle class will consume more goods and services, such as TVs, computers, and tourism. In many countries, extensive infrastructure investment will help meet the demands of massive urbanisation.

24. Asian countries and sub-regions like ASEAN are continuing to build strong WTO consistent and inclusive regional trading and financial relationships and free trade areas. This will insulate them from economic shocks, further raise domestic living standards and contribute to balanced global growth.

25. Asia’s economic rebalancing will, over time, result in significantly stronger currencies. As productivity in Asia rises relative to that in the developed countries, real wages will also rise. Asia’s better growth prospects will also attract capital inflows. Both factors should, over time, lead to an appreciation of Asian countries’ exchange rates. This reflects the region’s strength and will be a spur to further productivity improvements as well as provide a boost to Asian consumers.

Increasingly Sophisticated Financial Systems

26. In the area of finance, Asia's increasing economic wealth and consumer sophistication will demand a wider variety of more sophisticated financial markets, products, and institutions. Financial systems in a number of Asian countries are still dominated by banks, with relatively undeveloped foreign exchange, bond, and equity markets. Retirement savings and fund management are nascent. Banks are likely to continue to be the core of many systems, but other markets and institutions will develop.

27. This crisis gives financial institutions and markets in Asia tremendous opportunities to grow and develop. The globalised Western banking system, hampered by capital constraints and re-regulation, will likely not be able to intermediate the massive capital demand needed to finance Asian growth. This leaves the playing field unusually open for Asian financial institutions and markets, particularly for several years.

28. Fortunately, given the experience of the 1997 Asian Crisis, Asian financial institutions generally came into this crisis much healthier than their global counterparts. Capital, liquidity, and non-performing assets were at healthy levels while exposures to toxic assets were limited. Asian household, business and government sectors are also relatively un-leveraged. In order to take advantage of this opportunity, however, Asian banks and capital markets will need to quickly step into the breach.

Sharing Global Responsibilities

29. The shift in economic power from the developed world to the emerging world could, however, raise geopolitical risks. However, I do not see Asia aggressively challenging the global order, which has benefitted Asian countries for decades. Asian countries, including China, generally share the view that a multilateral, rules-based international order is critical to their long-term growth and development. Asia’s rise therefore is not inevitably a zero-sum geopolitical game where the US and Europe must decline as Asian countries grow.

30. Asia will of course assert its views on global political and economic governance but will do so as a stakeholder wanting to strengthen international institutions and cooperation. For instance, Asia’s voice in global affairs will rise in tandem with its economic power. The governance and functioning of the international order – the G20, World Bank, IMF, WTO, and the UN – will also be reformed to take into account Asia’s rise. But this is a rebalancing to take into account the growing importance of the emerging world and not a supplanting of the older order.

31. Asia continues to believe in the benefits of open economies and globalisation.
The region also benefits from regional integration, whether through ASEAN, ASEAN+3, or Asia-Pacific Economic Cooperation (APEC). For many in Asia, the Great Crisis of 2008/9 has reinforced the benefits of regional cooperation to promote trade, investment, markets, and provide avenues for conflict resolution.

32. Given the shift in economic power, Asia and the developed world will need strong and wise political leadership to preserve the global trading and financial system. This global order has, by and large, brought significant benefits to citizens of both the developed and emerging economies. I am confident that Asian countries will do their part to maintain an international order conducive to expanding world trade and enhancing global prosperity.

Environmental Challenges


33. Finally, as Asia develops, Asia will learn to better manage its environmental footprint, more so given its rapid development and high population density.

34. Challenges include land contamination, water scarcity, water and air pollution, destruction of bio-diversity, and climate change. This situation is not sustainable. A richer and more sophisticated citizenry will also demand policies which are environmentally friendlier.

35. I believe Asia will innovate to deal with these constraints. Government policies will seek to address these challenges, while increased R&D will drive technological advances. China, for instance, is becoming a major force in research and development of technologies that address environmental constraints such as renewable energy. One reason why I am optimistic is Singapore’s own experience in water scarcity. As an island nation, we have limited water catchment areas and rivers. But intelligent planning and taking advantage of technological improvements have enabled Singapore to move to self-sufficiency in water.

Conclusion

36. To sum up, Asia is recovering well from the Great Financial Crisis of 2008/9. The crisis seems likely to accelerate the shift in economic power from the developed to the emerging world.
37. Asia is at the cusp of the next stage in its development. There will likely be bumps along the way, perhaps a few crises, but if we learn the right lessons from history, especially those of the recent Great Crisis, Asia will innovate and adapt. There are difficult challenges but I am optimistic that we can overcome them.
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Thursday, July 22, 2010

China's sensors reign in "vulgar" reality TV show

by Rebecca Chow

When viewers tuned into China’s most popular dating show this spring, they saw beautiful women, brutal rejections and plenty of money worshiping, as when a female contestant was asked by a possible date whether she would like to go for a bicycle ride.

“I’d rather sit and cry in the back of a BMW,” she said.

Or when another woman, asked for a handshake, responded: “Only my boyfriend gets to hold my hand. Everyone else, 200,000 renminbi per shake,” or about $29,475.

Such witticisms made “If You Are the One,” produced by Jiangsu TV, the most watched reality television program in the country. Then the censors started watching.

Late last May, central government propaganda officials issued a directive calling the shows “vulgar” and faulting them for promoting materialism, openly discussing sexual matters and “making up false stories, thus hurting the credibility of the media.”

So the dating show, and others like it, got a makeover. Gone are fast cars, luxury apartments and boasts of flush bank accounts. Now the contestants entice each other with tales of civic service and promises of good relations with future mothers-in-law. One show now uses a professor from the local Communist Party school as a judge.

China’s television programmers are not far behind their Western counterparts in tapping demand for salacious entertainment. But that tends to conflict, sooner or later, with official notions of propriety and taste in China, which are a lot further behind.

“Traditionally for the government, there are several functions of the television industry,” said Ouyang Hongsheng, a media professor at Sichuan University. “Entertainment is last.”

Although all television stations are still state-owned, stations owned by provincial governments now compete with one another for ratings, national cable distribution and advertising revenue. The profits from these stations go back to local agencies, so provincial-level officials often think more about padding their budgets than enforcing decorum in the public media.

Still, central government propaganda officials reserve the right to intervene. And the minders in Beijing have no financial stake in the shows.

Since its debut in January, “If You Are the One” has been at the center of the storm. Each episode is like a game, as 24 women are presented with a parade of eligible bachelors. The men are subjected to abrasive questioning and ego-deflating sound effects of rejection. The entire process, 30 minutes in taping, is edited down to about 10 minutes on screen. The result is what might happen if the “The Bachelor” and “The Gong Show” produced an offspring with attention-deficit disorder.

Before the changes, the courtship tended to focus on financial matters, and the decisions were swift and ruthless. Personal introduction videos were stamped with “owns car, house” (or the unfortunate opposite) on the bottom half of the screen.

During one precensorship episode, a woman said to a potential 33-year-old suitor, “You say you’re good at what you do, but then how can you still just be a salesman?”

Another contestant, the 20-year-old son of a wealthy businessman, showed off his multicolored sports cars and bank statements that indicated a balance of six million renminbi (about US$884,000).

Ma Nuo, 22, the woman who professed to prefer crying in a BMW over riding a bike, denied in an interview that she thought too much about money. She said the producers played up her comment for publicity. “I only wanted to reject him, but in a creative way,” she said.

Men began sending Ms. Nuo marriage proposals attached with pictures of themselves in BMWs. She did not write back to them. She chose a photographer as her date on the show.

Viewers flocked to the program for its off-screen scandals as well as for the on-screen romance. Producers were accused of making up life stories and using actresses as contestants. After every offensive comment or awkward moment, video clips quickly appeared on Web sites.

As the ratings of the show climbed, its critics became louder and more numerous, calling it a frightening window into the degradation of social values.

Censors may have seen an opportunity to present themselves as do-gooders, reining in a form of entertainment many thought had gone too far, said Chris Berry, professor of film and television at Goldsmiths, University of London.

By June, a triumvirate of news organizations run by the Communist Party, the Xinhua news agency, People’s Daily and China Central Television all ran reports extremely critical of the show’s attempt to win ratings at the expense of quality. The State Administration of Radio, Film and Television stepped in.

“In this situation, if we don’t correct it, it will have a negative influence on all of society,” Zhu Hong, a spokesman for the state body, told CCTV. “Lots of people on the Web have said, ‘You can’t not control this!’ ”

The shows are now forbidden to “hype up marginal issues, show the ugly side of things, or overly depressing, dark or decadent topics,” according to the directive. Instead, the shows have to “maintain core Socialist values.”

Some dating shows, like Zhejiang TV’s “Run Toward Love,” were canceled. All have toned down references to material wealth and sex.

“If You Are the One” added a new co-panelist: a psychology professor from the School of the Jiangsu Provincial Communist Party Committee.

During an episode broadcast June 27, Huang Han, the mild-mannered psychologist, sat on stage and nervously adjusted her headset microphone.

“Oh you know, I’m so old, you’re a young girl in my eyes,” she said to a female contestant who worried about being older than her date. “These days, everyone works for a few years before they start looking for a duixiang, right?” she responded, using an outdated term for significant other.

In the same episode, Gao Fang, 23, enthused about his volunteer work during the Olympics, which led Yang Yi, 24, to fight back tears as she talked about taking care of disabled orphans.

Ratings have slumped since the changes, according to a spokeswoman for the show who declined to be identified. She attributed the drop to competition with the World Cup, even though the show did not compete directly with live soccer broadcasts.

And then there are the fan reactions. “Volunteering? How fake is that?” said Du Shibin, 48. “Who doesn’t ask about houses and cars these days when looking for someone to marry?”

About the author: Rebecca Chow is Managing-Director of Shanghai-based TransChina Services (http://transchinaservices.weebly.com/ )

Friday, July 16, 2010

Malaysian Indians cause further shift in power

Malaysia's population 25.7 miliion consists for 50.4% of Malays, 23.6% of ethnic Chinese, 11% of indigeneous people and 7.1% of ethnic Indians. This last group has always been relegated to the fringes of Malay society squeezed beteen the economically powerful Chinese and politically powerful Malays. A lack of confidence and cohesion among the ethnic Indian Malays did not contribute to any improvement of their position. A new found self-confidence among this group, however, is emerging and Malaysia's political landscape may change because of it.

The Malaysian Indians never suffered the fate of the Malaysian Chinese who, until as late as 1969, were still the victim of anti-Chinese pogroms by ethnic Malays. In 2008, a prominent UMNO party member labeled his Chinese compatriots as "mere squatters" in Malaysia and were not deserving of equal rights.

Due to their low position in Malaysian society, Malaysian Indians did not suffer from the jealousy the often richer ethnic Chinese evoked in the ethnic Malays. Their numbers were and are also much smaller than those of the ethnic Chinese.

But since the start of the 21st century and the unstoppable rise of India on the global stage, Malaysian Indians are feeling increasingly self-confident. The growing power of the ancestral homeland reflects also on of ethnic Indian origin who live outside India and are citizens of other countries. Ethnic Indians around the world feel emboldend by India's rising power and influence. In Malaysia this means that they increasingly refuse to accept their lower status in Malaysian society and are claiming their constitutional rights.

The Malaysian political establishment is also aware that treating their ethnic Indian population badly and withholding their rights will put strain on the relationship with India.

The rise of China strenghtened the position of the ethnic Chinese population in Southeast Asia. Where in the past politically instigated pogroms against the ethnic Chinese happened from time to time, now political leaders in all Southeast Asian countries will think twice before allowing something like this to happen again as it will certainly cause mainland China to react with sanctions and a withdrawal of much coveted Chinese investments.

Due to India's rise, ethnic Indians in Malaysia will have trump card of sorts in their sleeves. The Malaysian political establishment will need to adhere to their demands to an improvement of their situation in order not to upset India itself. This will mean a further erosion of the political power of ethnic Malays who only form a tiny majority in Malaysia. A combined movement of ethnic Chinese and ethnic Indians can force the ethnic Malay political powers to finally officially abandon their promotion of Ketuanan Melayu or Malay supremacy and accept that Malaysia is a multi racial society.

Such a change will not be a smooth one but how to organize and establish such a society could be learned from neighbour Singapore where the ethnic Chinese majority has gone to great lengths to ensure all religions and ethnicities equal rights and opportunities.

This article appeared earlier on www.businesstrendsasia.com