Global Economic Power Research Articles

Impact of the People's Republic of China's Growth Slowdown on Emerging Asia: A General Equilibrium Analysis

As an important global and regional economic power, the PRC’s growth slowdown may cause large spillover effects to its neighboring economies. Using a multi-sectoral global computable general equilibrium model, this paper quantitatively investigates the impacts of a growth slowdown in the PRC for emerging Asian economies through trade linkages. The results suggest that a growth slowdown of 1.6 percentage points in the PRC would bring about a growth deceleration of 0.26 percentage points in developing Asia as a whole. However, the impacts vary dramatically by economy within developing Asia, reflecting their difference in economic and trade structure.

Institutional Innovations in China: Can China Serve as an Alternative Development Model?

Over the past few decades China has emerged as an alternative model of development especially for countries in Asia and Africa. Not only has China achieved impressive growth rates, lifted almost half a billion people out of poverty but has also emerged as a rising global power. Many economists and development practitioners look towards western democracies as a model of growth and development. However due to China's silent rise as a major global economic power many countries particularly in Asia and Africa are relating to China's institutional reforms and development. These include reforms towards greater decentralization, formation of special economic zones, promotion of private entrepreneurship and other experimentations. This paper looks at these institutional innovations in light of their relevance for other developing countries. The analysis in this paper elucidates why China can serve as an alternative model of development despite some imperfections. The unorthodox, innovative and experimental solutions provided by the Chinese experience shows that governments in developing countries should be open to creative ways of problem solving rather than rigid technocratic approaches.

Re-imagining the Empire of Japan through Japanese Schoolboy Uniforms

Japanese kimono and the Japanese schoolboy uniform continue to interact with, and interrogate, global fashions as contemporary designers continue to call on the tropes of ‘military chic’ (Tonchi) and Japanese-inspired clothing (Kawamura).

Narcissism and United States' culture: The view from home and around the world.

The issue of Americans' levels of narcissism is subject to lively debate. The focus of the present research is on the perception of national character (PNC) of Americans as a group. In Study 1, American adults (N = 100) rated Americans as significantly more narcissistic than they perceived themselves and acquaintances. In Study 2, this finding was replicated with American college students (N = 322). PNC ratings of personality traits and externalizing behaviors revealed that Americans were perceived as disagreeable and antisocial as well. In Study 3, we examined the broader characteristics associated with PNC ratings (N = 183). Americans rated the typical American as average on a variety of characteristics (e.g., wealth, education, health, likability) and PNC ratings of narcissism were largely unrelated to these ratings. In Study 4 (N = 1,202) Americans rated PNCs for different prespecified groups of Americans; as expected, PNC ratings of narcissism differed by gender, age, and occupational status such that American males, younger Americans, and Americans working in high-visibility and status occupations were seen as more narcissistic. In Study 5 (N = 733), citizens of 4 other world regions (Basque Country, China, England, Turkey) rated members of their own region as more narcissistic than they perceived themselves, but the effect sizes were smaller than those found in the case of Americans' perceptions of Americans. Additionally, members of these other regions rated Americans as more narcissistic than members of their own region. Finally, in Study 6, participants from around the world (N = 377) rated Americans as more narcissistic, extraverted, and antagonistic than members of their own countries. We discuss the role that America's position as a global economic and military power, paired with a culture that creates and reifies celebrity figures, may play in leading to perceptions of Americans as considerably narcissistic.

Examining the Long-Haul Relationship between Primary Education and Economic Growth: Evidence from Three Populous Nations

<p>The prominence of early education as a significant source of economic growth has long been an intriguing topic among economists. The purpose of this study was to examine the relationship between primary education and GDP as a measure of economic growth in China, India, and the U.S, the top three populous nations in the world, and to investigate for plausible reasons leading to the differences observed among the mentioned countries of study. Data derived from the Education Statistics of the World Bank from 1970-2012 were subject to the ordinary least square (OLS) estimation procedure, to obtain regression coefficients as a measure of influence of the study variables on economic growth. Results revealed that for all the three study countries characterized by high populations, an increase in the number of students enrolled in primary education positively impacted economic growth. Mortality rate, primary school graduation age population (female), population aged 0 to 14 as percentage of total population, and primary school enrollment ratio showed significant negative impacts on GDP. Marked differences were revealed for individual country regressions regarding the influence of the study variables on economic growth. Gender related differences in primary education graduating population can be attributed to varied differences in the cultural and social systems among the study countries. Both male and female primary education graduation age population showed no statistical significance on economic growth in the U.S, while for China and India the effects on economic growth were significant with clearly outlined gender related differences in primary education graduation age population. This study builds ground for further research on how the accumulation of human capital through education in these countries will impact the geographical concentration of global economic power in the future.</p>

Deliberate or Emancipate? Civil Society Participation in Trade Policy: The Case of the CARIFORUM–EU EPA

At both the multilateral and regional levels, there have been efforts to address the democratic deficit in trade negotiations. One such example is the Economic Partnership Agreement (EPA) between the European Union and African, Caribbean and Pacific group of countries where civil society participation was enshrined in the Cotonou Agreement. Yet, the CARIFORUM–EU EPA attracted much criticism from civil society. The paper argues that civil society failed to affect the outcome of the EPA because they participated in the process within a deliberative democratic framework which did not allow for emancipation or a challenge to global economic power and structural considerations in the negotiations; neither did it achieve citizen empowerment and ownership. We advocate the practice of participatory democracy in trade policy decision making—an ideal space for citizen participation—the former holding greater promise for influencing the trade policy agenda.

The shift from sterling to the dollar, 1965–76: evidence fromAustralia andNewZealand

The management of foreign exchange reserves has recently attracted attention from both policy‐makers and historians. Historical research has focussed on the nineteenth century and the interwar period, with less attention to the strategies of smaller countries in the final transition from sterling to the dollar in the post‐1945 period. This article examines the evolution of reserve currency policy from the perspective ofAustralia andNewZealand in the 1960s and early 1970s. As in the 1930s, economic uncertainty and a shift in global economic power prompted changes in reserves strategy. Patterns of trade and debt and falling confidence in British economic policy prompted a move away from sterling, but the timing and extent of this transition were affected by the fragility of the sterling exchange rate, lack of alternative assets, and continued dependence on the London capital market. The choices forAustralia andNewZealand were thus constrained, but they were able to leverage their position as holders of sterling to engage in agreements that provided an exchange rate guarantee for their sterling holdings and continued access to the London capital market. This mitigated the effect of the final global transition from sterling to the dollar while protecting their interests.

How Global Geo-Politics Shaped South Africa's Post-World War I Monetary Policy: The Case Of Gerhard Vissering And Edwin Kemmerer In South Africa, 1924–25

ABSTRACTThe purpose of this paper is to highlight using international archives, the extent to which America's attempts to anchor its increasingly dominant global economic power and specifically the struggle between London and New York as the centre of global finance, impacted on the nature and character of the monetary policy advice given by these two international experts, as evident in their work on the Kemmerer-Vissering Commission. We show that Kemmerer, a representative of the rising new global economic powerhouse, the United States of America, and Vissering, a representative of a far less significant global player, the Netherlands, also with somewhat closer historical ties to Britain, were in fact instruments of these global dynamics, as they went about their work on the Commission. This global aspect of the narrative of the Kemmerer-Vissering report has not been highlighted by previous research.

The Political-Economy of ASEAN-China Free Trade Agreement - An Indonesian Perspective

The enactment of the regional economic cooperation scheme ASEAN-China Free Trade Agreement (ACFTA) is an interesting phenomenon accompanying political-economic changes in the East Asian region. The regional economic cooperation scheme first proposed by then-Chinese Prime Minister Zhu Rongji in 2000 was driven more by political considerations. China's rise as a global economic power was seen as a threat to ASEAN. Accordingly, China’s involvement in regional forums is considered very important for ASEAN in creating regional stability. ASEAN-China FTA is an economic instrument, which is also part of ASEAN’s political agenda to support regional stability. Indonesia, as the most influential country in ASEAN, supports regional economic cooperation, and always emphasizes the importance of ASEAN centrality in the face of uncertain changes in the world political economy. Unfortunately, Indonesia's support to ASEAN-China FTA, and Indonesia’s stance on ASEAN centrality, turn out to be expensive in the socio-economic costs, namely: (i) Indonesia’s unpreparedness in building the competitiveness of its economy, in line with the integration of the national economic system into the wider regional economy, and (ii) the economic unpreparedness actually caused by sharp differences of interest among domestic actors and exacerbated by the weakness of the government to overcome the differences.

Some Key Issues and Challenges Facing India: Perspectives on Policies and Action

Globally, India is often perceived as an emerging global economic power because of the strong economic growth that the country has achieved for a sustained period during the early twenty-first century, including the global financial crisis period in the late 2000s. The recent slowing down of the economy has not changed that perception significantly. While the growth rate of the gross domestic product (GDP) might justify the tag of an emerging economic power, we cannot escape the fact that India faces several challenges, both in the economic and the social sectors. Various reports published by the government, academic institutions, non-governmental organizations, and multilateral funding agencies, such as the World Bank, highlight many of these challenges, for example, the slow pace of economic reforms, poverty, inequality, dismal educational performance, and poor indicators of health, and prescribe policy solutions. In this colloquium, we focus on a few specific issues that require serious attention of the government and the public but are relatively less discussed in public discourse and policy debates: banking sector reforms, road safety, sanitation reform, and ethics in the medical profession.

China's currency: faster steps towards global use

The arrival of the renminbi as a global reserve currency seems inevitable, underlining China's position as a global economic power.

The African Burial Ground: Roots of Ecological Destruction and Social Exploitation

This article unveils how the local, literally the soil, contains hidden and revelatory global histories, narrating how the little settlement at the edge of Manhattan was connected and indeed enmeshed in a vast network of human activity that was global in reach. Referencing the frames of big history, the universe story, and justice, the author demonstrates that the discovery of the African Burial Ground exposes hidden narratives of race, the city, and the genesis of global economic power. Among the lessons—historical, social, and environmental—that can be drawn from this story: walls can no longer protect us from the dangers we face in the twenty-first century, and social equity and environmental protection must go hand in hand.

How China's Enforcement of Its Anti-Monopoly Law Poses Risks to Multinational Companies

China’s recent enforcement of its Anti-Monopoly Law (AML) has caused alarm and concern among Multinational Companies (MNCs). Many MNCs believe that the primary purpose of China’s AML is not to create open, fair, and market-based competition but is to serve the Industrial Policy goals of China’s ruling Communist Party. These goals result in the enforcement of the AML in favor of Chinese companies, especially China’s massive State-owned Enterprises, at the expense of MNCs doing business in China. In addition, China’s AML enforcement authorities seem to be using the AML to force MNCs to transfer their valuable technologies (intellectual property rights) at below market rates to Chinese firms and to force price reductions of their products sold in China. AML enforcement authorities also appear to be using the AML to protect famous Chinese brands from being acquired by foreign firms. China’s use of the AML appears to be consistent with China’s overall goal of strengthening its position as a global economic power.

Sociopolitical determinants of international health policy.

For decades, two opposing logics have dominated the health policy debate: a comprehensive health care approach, with the 1978 Alma Ata Declaration as its cornerstone, and a private competition logic, emphasizing the role of the private sector. We present this debate and its influence on international health policies in the context of changing global economic and sociopolitical power relations in the second half of the last century. The neoliberal approach is illustrated with Chile's health sector reform in the 1980s and the Colombian reform since 1993. The comprehensive "public logic" is shown through the social insurance models in Costa Rica and in Brazil and through the national public health systems in Cuba since 1959 and in Nicaragua during the 1980s. These experiences emphasize that health care systems do not naturally gravitate toward greater fairness and efficiency, but require deliberate policy decisions.

China's re-emergence as a global economic power: How should Europe respond?

This article provides an overview of the challenges that the EU is facing due to China's re-emergence as a global economic power. For this purpose, the negotiations for a financial investment agreement provide a backdrop for a discussion of the benefits and disadvantages of closer cooperation with China. The article discusses the contents of the negotiations, the parties involved and the dialogue formats. Moreover, it identifies obstacles to reaching a successful agreement. Based on the analysis, three policy measures are defined that would lay the foundations for a coherent and successful European response to the challenge of a rising China.

Is the Organisation for Economic Co-operation and Development Ready for China?

:The re-emergence of China as a global economic power has intensified calls for the urgent reform of Western-dominated international organizations. We evaluate efforts by the Organisation for Economic Co-operation and Development (OECD) to adapt to the challenge of China. From the first decade of the 2000s, the OECD has undertaken reforms to boost its significance as a key policy actor in the global economy. Part of this effort involves bringing China closer to the organization. To date, only limited progress has been made. We set out three bold policy reforms the OECD could implement that would deepen the OECD’s relationship with China as well as with other emerging economies.

ЕНЕРГЕТИЧНА КРИЗА АБО МАЙБУТНЄ АЛЬТЕРНАТИВНОЇ ЕНЕРГЕТИКИ?

The paper addresses the most acute issues of present-day power engineering prospects. Nowadays the interrelation between global economic crisis and power engineering is entirely justified. Reserves of hydrocarbon fuels in the world are depleted, and their prices are rising every year. The investments of the developed countries governments into the renewable power are increasing. However, is it able to change the actual situation in the world and to help the global economy to overcome the crisis? But is it enough for this purpose the achievements of up-to-date scientific and technical progress?

Factors Affecting Economic Growth in Africa: Are There any Lessons from China?

Since generating sustained economic growth in Africa remains one of the most pressing challenges to development, it is imperative that Africa-specific determinants of economic growth are investigated. At the same time, in spite of recent slight slowdown, China's economic growth and its capacity to move in thirty years from underdevelopment and extreme poverty to an emerging global economic power had attracted the attention of many developing countries, including those in Africa. Some key questions arise: Can China serve as a growth model for Africa? And what lessons can we draw from the Chinese experience of soaring economic growth? We therefore investigate the determinants of economic growth in Africa (North and sub-Saharan Africa), using an Africa-only sample with five non-overlapping three-year averages of cross-sectional data between 1996 and 2010. We also do the same for China for the period, 1980 to 2010, while discussing recent trade, investment and aid/debt relations between Africa and China. Our results suggest that domestic investment, net ODA inflows, education, government effectiveness, urban population, and metal prices positively and significantly affect Africa's economic growth. For China, the key factors driving its economic growth are domestic investment, trade openness, initial income, and rural share of the population. Factors driving down China's growth include inflation rate, domestic credit to the private sector, net ODA inflows, population growth, telephone density, and oil and agricultural/raw materials prices. One key finding is that while Africa is almost twice as open as China, openness does not positively and significantly affect Africa's growth, unlike in China. A principal source is that Africa imports (mainly consumer goods) more than it exports while the reverse is true for China. Moreover, the structure of Africa's exports is biased towards traditional primary commodity exports unlike China that has rapidly shifted towards manufactures. In addition, Chinese domestic investment is about double that of Africa. The key lessons for Africa from the soaring Dragon's experience are discussed.

Visualizing the Now

Artist Mariko Mori's series Present from Beginning of the End grounds an island imaginary in visual iterations of global urban centres, belying notions of insularity and periphery. Globalization, this article argues, has disappeared the connotations of island imaginaries and spaces from the four global cities, each also islands, represented across Present. The series nuances the term ‘island’, exposing the disparities that exist between islands; not all islands are understood as equal in relationship to global economic and political power. Mori's photographs link the island and the alien as imbricated analytics, asserting the two as pivotal geopolitical markers of a global urban present. Mori's photo series remaps temporal and spatial narratives of globalization via the alien and the island, questioning the ways in which the processes of globalization attach to bodies, and the ways in which finance dictates the terms of global contact and the creation of networks.

¿Cómo se financia el crecimiento económico de china? Una mirada hacia las PYMES

The following paper aims to explain the different factors that contribute to the financing the economic activity of small and medium enterprises (SMES) in China. The reason for analyzing these types of companies revolves around the fact that they have benefitted its nation´s economy growth. First, an analysis was done in the formal sector, where certain deficiencies were identified specifically in the legal and financial systems) and how these deficits hold back the access needed for SMES to join conventional mechanisms of finances. Afterwards, a study of the existence of a financial system, which is parallel to the formal system, emerged, only to realize that this parallel system helped these companies to grow. This is known as an informal economy based on connections and reputation, which acts as a substitute for the traditional formal way. Due to the success of this economy, despite the deficiencie within the legal system of the country, it is important to contemplate and understand the elements which allow this to be sustainable through time. Lastly, various questions arise concerning the future of China as a global economic power. So it was proven that this informal economy is the main reason for their economic growth, but the question to be asked is, until when can this country relay on informality for its success?