The global financial crisis of 2008-2009 offers a rare opportunity for many economies to undertake wide-ranging structural reforms to improve productivity and economic efficiency.
In 2012, the International Labour Organization (ILO) called on its 185 members to ensure that everyone in need has access to essential health care and basic income security.
A well-developed services sector plays a major role in improving production efficiency and promoting technical progress and innovation. The services sector has expanded rapidly in the People’s Republic of China (PRC) since economic reform was launched in 1979, and particularly after PRC joined the World Trade Organization in 2001. However, the size of the sector as a share of GDP appears to be significantly smaller than expected based on PRC's income level and development stage.
In March 2013, the National People’s Congress (NPC) of the People’s Republic of China (PRC) will convene to appoint the new General Secretary of the Communist Party Xi Jinping as President. At the same time, Li Keqiang is expected to be confirmed as Premier heading a newly appointed State Council.
If a frog is placed in a boiling caldron, it will immediately jump out to safety. If the same frog is placed in water, which is slowly heated to boiling, the frog will tranquilly remain and eventually die from overheating.
This biological anecdote is frequently utilized as a metaphor for our political state of affairs over global climate change. As the planet slowly heats and succumbs to gradual change we unwittingly accustomize without sensing the dangers that await us. The lessons from this phenomenon also encompass the state of our cities and the transport sector.
Resource depletion and environmental pollution are serious issues in developing Asia. This was well illustrated in January of this year when northern People’s Republic of China (PRC) suffered its worst air pollution on record. The level of pollution moved many to question the old development model of “pollute first, improve later”.
Aging can adversely affect economic performance, demanding changes in social and economic policies to address the challenge. While the best-known dimension of aging relates to fiscal sustainability due to spiraling health care and pension costs, the repercussions are wider. More worryingly, aging will ultimately constrain economic growth because labor supply shortages result in lower GDP growth in the absence of increases in total factor productivity.
No one can say that the second largest economy in the world is trapped. Decades of structural change and rapid growth allowed for a swift transition from a low-income to a middle-income country. The challenge today lies in moving up to higher-income status. How could the People’s Republic of China (PRC) avoid the trap?
International experience has shown that fiscal policy can play a leading role in promoting a shift toward a more inclusive economic model, balanced income distribution, and improved living standards.
Last Friday, 7 March, 2014, Shanghai Chaori Solar Energy Science and Technology Co Ltd defaulted on its 1 billion yuan ’Chaori-11 bond‘ when it failed to pay in full the coupon due that day. The default should not have taken investors by surprise as the company has been struggling over the past few years due to general weakness in the solar panel market.