Articles/World News
The world is an ever changing organism which will either sustain itself or will become an un-inhabitable planet in future times. This part of the Newsletter will therefore look at major issues that will influence the destiny of humankind.
Socio-economic issues:
China and the East Asian economies are developing at a phenomenal rate compared to the industrialised economies of the West. Listed below are some key indicators (which are self evident)
% change on year ago | last 12 months $bn |
Nation | GDP | Industrial Production | trade balance | foreign reserves |
latest | 12 months ago |
China | +8.1 Q3 | +11.0 Sep | +35.1 Sep | 127.8 | 91.7 |
Indonesia | +8.0 (1996) | +7.1 Oct | +9.4 Jul | 19.3 Aug | 15.5 |
India | +6.8 (1995) | +9.2 Jul | -5.6 Aug | 26.8 | 18.3 |
Malaysia | +8.4 Q2 | +13.2 Aug | -0.9 Aug | 26.1 Feb | 23.1 |
Taiwan | +6.3 Q2 | +9.0 Sep | +8.9 Sep | 87.8 Aug | 86.1 |
The Economist - November 1st to November 7th 1997
China's Economic Might and Western Economic Destabilisation
According to Bill Jamison, economics correspondent for the Sunday Times (9 Nov.97) with China now being the lowest cost producer in the world and it’s currency having been devalued by 70% since 1993 with it’s output and exports now covering the whole of the Pacific Rim production area, it will in due course force down currencies in that region of the world bringing Japan along in it’s wake. Continental Asia is now Japan’s major export market. Devaluation is therefore on the egenda and with Japan being one of the tripartate economic power houses of the world (USA and Europe the other two) this will eventually affect the ‘Western’ stock markets and currenies in the years to come. That will have major effects on industrial production, employment and securuty in the ‘West’. What we have been seeing over the last few weeks in the markets is a precursor of a much more underlying problem that will probably engulf us all.