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Asia’s next revolution
Asia’s economies have long wowed the world. Now a spectacular revolution in government is under way. Indonesia will provides all its citizens with health insurance by 2014. In just two years China has extended pension coverage to 240m people. As a result, the world’s most vibrant economies shift from just building wealth to building a welfare state.
The Asian countries are all determined to avoid Europe’s and America’s mistakes. Like letting the basic safety net change into cushion, like in Europe or making mistakes in creating an entitlement system, as in America. Asia’s government is aware of all this and by that they take inspiration from Singapore. But also Asia several problems; Demography, size and many Asian workers are working by using outside state transactions.
There’s not just one single solution for all countries, but there are three principles:
One, is to pay more attention to the affordability of any promises, so they should index they retirement age to life expectancy.
Second, the governments need to target their social spending more carefully.
Third, they should be flexible and innovative.
The success of Asia’s welfare will be determined by politics and economics, but achieving political maturity is the biggest step of them all.
Putin’s Ambitions Turn to the Far East
President Putin of Russia is present on the Asia pacific economic conference with the hope to strengthen his ties with the Pacific Rim, but given the history of mistrust between Russia and Asia there’s a change that Putin’s economic goals will not be reached nor his goal to strengthen his political ties.
The government spends billions on upgrading the city’s deteriorated infrastructure all because the conference took place for the first time in Russia. But not everything went as smoothly and the corruption makes investing in Russia risky.
Despite those endemic concerns, time is on their side. With the major economies shaky in the European union and the European regulators who have announced they are pursuing on anti-trust investigation of Russia’s state-controlled gas monopoly. Given the rise in global energy demand the maneuvered statically to be able to redirect its gas sale to Asia should it encounter difficulties in Europe.
Russia already sells gas to Japan, but Japan needs to increase the energy import because of the shuttering of Japan’s nuclear power industry. Russia is almost done completing a second phase of a pipeline increasing capacity and speeding shipment to Asia.
Also Russia’s large grain export gives an opportunity to represent a potential windfall and closer bonds with Asia.
Others also said the Russia’s relations with the Far East were ready to bloom, thanks to public and private investment.
Asia’s next revolution
I found this article enlightening, and a little frightening simultaneously. It gives an interesting analysis of the Asian economies, but I’m not sure if it will work given the population and the economical crisis. Just that makes the article more interesting because it’s focused on subjects that we’re dealing with right now. In wondering what direction Asia is leaning these days, this article tends to tell, at least in a small way. I also think that the viewers point of view is critical in this article. If you are used to getting nothing from the government anything you get is a plus. On another hand, if the government can’t afford the universal benefit coverage they have to cut in it, like what’s going on in Europe then it will simply be another disappointment and give up to the government credibility. So it can go both ways. So what’s going on in Europe may be a lesson for the Asians on what to avoid, but I think that time will tell that when the Asian economies shift gear to a more welfare state that the continent’s citizens will get spoiled and will be asking for more. That can resolute, by growing too fast that they would make unaffordable promises because of their immature politics.
Putin’s Ambitions Turn to the Far East
President Vladimir Putin impressed leaders by holding an Asian summit on an island off a revamped Pacific city, but the surface shimmer hid underlying problems in the Russian Far East and the country as a whole. According to the article there was a lot of money spend on improving the bad infrastructure, but that was so troubled by the corruption in the country that it cost more the double.
It sounds as it was all done not in favor of the population, but more as propaganda for Putin, looking at how many cities in Russia have a bad infrastructure and poor life circumstances that people have to life in.
But certainly strengthen his ties with the Pacific Rim has the potential to be a great chance for him to invest in the rise of global energy demands and with collectively Russia largest trading partner to face an economical crisis and the anti-trust investigation, making sure that he can sell his gas and oil, Russia's largest incomes, is a big priority. Maybe not only economical, but also political, facing the fact that the east side of Russia lies more in Asia then in Europe so maybe they're afraid of losing control not only on the Far East, but whole Siberia.
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