Two cities? Two Systems?

11/12/07

Two cities? Two Systems?

Filed under: General
Posted by: site admin @ 10:16 am

Click here for ICA Institute’s Research Director, Dr. Dan Steinbock’s new brief on the proposed expansion of Hong Kong
and its potential merger with Shenzhen in The National Interest (Oct 26,
2007) :

Two Cities, Two
Systems?

by
Dan Steinbock

Is
Hong Kong’s importance as a financial center fading, or is the city just moving
toward a new role? Merging with Shenzhen could make it a part of a financial
mega-exchange that would dominate the Asian market.

For other selected releases and activities during the
past month:

- On November 5, Dr Steinbock gave the opening speech
and moderated the Innovation Session in the prestigious Baltic Development Forum
in Tallinn, Estonia. The members of the panel included Esko Aho, former PM of
Finland and President of SITRA, the Finnish Innovation Fund; Lena Gustafsson,
Deputy Director General of VINNOVA, Swedish Governmental Agency for Innovation
Systems; Peter Coachman, General Director, Technopolis St Petersburg; and Rainer
Kattel, Chair of Innovation Policy and Technology Governance, Tallinn Technical
University.

- On October 22, Dr Steinbock lectured at the Beijing
University of Post and Telecommunications on “The Globalization of the Mobile
Communications Industry.”

- In Beijing, he was also invited to the Board of
China’s Journal of Communications, the prestigious leader of its
field.

- On October 18, Dr Steinbock lectured on urbanization
in China and large emerging economies, at the executive meeting of KONE, one of
Finland’s leading multinationals and a global leader in escalators and
elevators.

- A week earlier, on October 15, he lectured in the
Shanghai Institute of Strategic Studies on the “US Elections ‘2008 and
Sino-US Trade.”

Toward US-China Trade Wars?

10/15/07

Toward US-China Trade Wars?

Filed under: General
Posted by: site admin @ 7:51 am

The latest from ICA Institute’s Research Director, Dr. Dan Steinbock:

Toward US-China Trade
Wars?
The National Interest October 11, 2007

Enacting new legislation that levies punitive duties on imported Chinese goods will have a negative effect on the U.S. economy. Congress should consider the consequences before approving this measure.

Download .pdf

ICA Fundamentals

10/09/07

ICA Fundamentals

Filed under: General
Posted by: site admin @ 9:58 am

A useful resource and note from the ICA Institute’s Newsletter Editor of Academic Resources and Industry Reports, Dr. SV Char:

THE ICA STAT TABLE: CHOCKFUL OF INSIGHTS AND NEW MEANING

Download .pdf of ICA Fundamentals Table

Ang Lee’s latest spy movie set in Shanghai is entitled Lust, Caution. Likewise, the title for the attached statistical table about the fundamentals for India, China and the US could also be Stats Fundas, Caution. They have a variability of their own and are ever-changing, including for as predetermined and unchanging an item as Land Area!

And population data varies moment to moment. Yet, these figures bring out the comparative magnitudes and help approximate our inferences and alter them down the road in the light of more info. Also governments and statistical agencies keep refining their data.

Hence the need for caution and thanks Ang Lee!

The comparison of economic and demographic fundamentals of the three countries of India, China and the USA, together with aggregates for the world can be vividly revealing. Such a comparative Table provides a 360 degree perspective and brings out the comparable scale of each nation’s economy and its sub-sectors.

For instance, in much of the discussions, there is little reference to the fact that though China’s population is 1.3 billion, larger than India’s 1.1 billion, by virtue of possessing a land mass of 9.33 million sq. kilometers, 2.8 times larger than India’s 3.29 million, the density of population is just 363 for China as against 852 for India. This implies less breathing space and legroom in India for people, for business and for local, state and the federal governments. Does it pressure India to use all spaces more productively? Does it mean less national highways like in the USA and smaller buildings, warehouses, play grounds, and so forth?

Two more questions pop up here.

First, China has land quarrels with almost every one of its sixteen contiguous neighbors. Some kind of an unwritten moratorium is in place and so there is not much noise and gun battle.

Second, even if China’s land area is more, is it suitable for cultivation? Have you seen the Great Wall of China, 4000 miles long? In almost all photographs of the Wall you will see mountainous terrain and that should clear out qualms about cultivation. And India is better placed than China. And yet, if food grain output is more in China than India, what gives? Farm productivity?

The Table does generate much disbelief and questions for discussion.

Take another example of how comparative Tables like this one can be more edifying than mere words. Income distribution in India, we learnt in school, is highly skewed, the rich and the upper middle classes drawing off large chunks of India’s aggregate income. And so we would expect the Gini coefficient to be pretty large. Sorry to disappoint the pundits, it is much smaller for India at 0.33 (meaning less inequality in income distribution) than in communist China with a Gini of 0.44 or the USA at 0.45. South Africa’s and Brazil are closer to 0.6. Well, the answer lies in China’s increasing prosperity and the two-tier new classes that are now emerging.

Also the confiscatory taxes in the initial decades of India’s development must have had a hand in this.

Question: Are such increases in Gini inevitable as affluence spreads and the governments of such countries opt for more free play for market forces, an incentive to achieve more prosperity? A profound topic for a doctoral dissertation!

The Table of ICA Fundamentals hints intuitive answers to several of contemporary developments. Take a look at electricity generation in India and in the other two countries.

India’s is far behind. However, in terms of non-fossil fuel source of power generation, India’s statistics are better than China’s. India has had more nuclear reactors than China.

And so the latter is playing catch up. The recent discussion about nuclear cooperation between India and the USA elicited reaction in China. This assumes new meaningful in this setting.

See what a comparative Table can do! Each row is worth studying! This is our work-in-progress and there will be more of it in the Blog to follow.

The Peaceful Rise of China’s Consumer Markets

10/04/07

The Peaceful Rise of China’s Consumer Markets

Filed under: General
Posted by: site admin @ 7:41 am

Read the latest from Dr. Dan Steinbock, Research Director with the ICA Institute:

The Peaceful Rise of China’s Consumer Markets released by the National Interest

It is often said that America celebrates its independence with barbeques and fireworks, whereas China commemorates its holiday with military might. In fact, October 1 is no longer that different from July 4… In China, it is not the modernization of the People’s Liberation Army that drives the economy—the private sector is the engine of economic expansion . With economic development, rising levels of income per capita, cars and retail tend to herald the coming of consumer mass markets… The Chinese dream is about prosperity and the shopping malls of Singapore and Hong Kong. And that says a lot about Beijing’s future.

Download .pdf of article

Welcome to Chindia Biz!

10/01/07

Welcome to Chindia Biz!

Filed under: General
Posted by: site admin @ 8:23 am

Today, Oct 1, 2007, is the date of the Chinese National Holiday. The National Day is celebrated throughout mainland China, Hong Kong, and Macau with a variety of government-organized festivities, including fireworks and concerts. In India, tomorrow, October 2 is the annual holiday of Gandhi Jayanti as a grateful nation pays it’s heartfelt tribute to the Father Of Nation, Mahatma Gandhi on his birthday.

In many ways, for all of us, these are auspicious days, rife with new opportunity.

All of us at the India, China & America (ICA) Institute understand that our goal of increasing both the cultural and business level of interaction among, India, China and America, wouldn’t be possible without contributions from thought leaders around the world. Chindia Biz will give these thought leaders an opportunity to air their views, creating a prime information resource both business strategists and policy makers can use to improve their understanding of the two Asian economic juggernauts, India and China.

CHINDIA BIZ will be hosting a number of information articles and opinion pieces from contributors around the world. We hope you will not only take the time to visit, but also consider contributing to the information you will find here. Simply email chindiabiz@icainstitute.org, with your questions or contributions.

Also consider signing up for the ICA Insitute’s weekly newsletter at www.icainstitute.org. It delivers both summary and detailed information, about developments in India & China that affect commerce. It is a must read for those organizations either already doing business in Chindia or contemplating being there.

While you are at it, look into the ICA Institute’s virtual seminar (Webinar) series, Tap Into Chindia. This free series of monthly webinars kicked off September 25, 2007 with Dr. Sheth’s program, Rise of Chindia: The Next Largest Consumer Markets. We are now taking website registrations for the next in the series, Adapting Business Practices for India & China, October 23, 2007, featuring globalization author and business strategist, Dr. Camille Shuster.

There are a number of special projects also on the way, so stay tuned to www.icainstitute.org.

Again, welcome to Chindia Biz and thank you for coming. We hope to see and hear from you often.

Robert P. Cady
Director of Development
India, China & America Institute.
rpcady@icainstitute.org

Blog Launches Monday, October 1st, 2007

09/27/07

Blog Launches Monday, October 1st

Filed under: General
Posted by: site admin @ 1:14 pm

On Monday, October 1, 2007, the India, China & America Institute will begin hosting its first blog.

The ICA Institute, founded by Dr. Jagdish Sheth, is a non-profit institute with the vision of providing a sustainable, non-governmental platform to identify and drive synergies among India, China and America in the areas of emerging markets, commercial growth and alignment of policies for the benefit of a vast number of people.

This blog, Chindia Biz, is one of the many ways the ICA Institute seeks to promote knowledge creation and the delivery of knowledge-based services for the benefit of the global community.

On this blog you will find regular updates from thought leaders on the following topics:

• How to guidance
• Scholarly/Business analysis of
  current headlines
• Points of interest
• Illustrative business
  experiences
• Insightful
  questions
• Trends
• Podcasts

Please plan to visit regularly and set up an RSS feed from our site to yours.