Author: Vikram Nehru, Carnegie Endowment India’s recent growth deceleration highlights a simple truth: the reforms of the 1990s are no longer enough. While the current slowdown is partially cyclical, growth is unlikely to return to above 8 per cent per year without further reform. But India also has a golden opportunity to ‘look east’ and sustain high growth rates for years to come. The reform agenda is long and well understood — India needs to reform its trade, infrastructure, education and labour markets. What is needed now is the will to act.
With Europe threatening to push the global economy into yet another recession, one would think this would be a time for economies to batten down the hatches, build fiscal and foreign exchange buffers, and brace for the coming storm.Think again. Yingluck Shinawatra’s government recently introduced a new rice policy that will cause a haemorrhaging of Thailand’s public funds at a time when its economy desperately needs to improve its international competitiveness
Some Chinese astrologers have pronounced that 2012, the year of the dragon, will be particularly volatile. But you don’t have to believe in the Chinese zodiac to know that Southeast Asia is likely to have a tumultuous year. Four potentially important trends and events could cast a cloud over the subregion—and there may be one particularly glittery silver lining.