By Bowen Asia, on June 21st, 2011
The article (link below) by Sanjay Baru of the Business Standard is a timely reminder of how close India was to defaulting on its debts back in the summer of 1991. It took some bold measures by the then-Finance Minister, Dr Manmohan Singh (the current Prime Minister), to save India from default as he devalued the currency and opened up the economy to further trade liberalization.
Unfortunately, Greece does not have the luxury of controlling its own monetary policy, but unlike India, it isn’t alone in dealing with its crisis. Greece has the support — albeit getting stroppier by the day – of the EU, the multilateral agencies and other countries like the US, which should be just about enough to see it through this crisis, but it will still be touch and go — what with an increasingly intransigent opposition and public.
Sanjaya Baru: Greece in India
By Bowen Asia, on June 13th, 2011
Just a couple of items of interest:
1) Individual Visit Scheme (IVS) to Taiwan to get under way before the end of the month: Residents of Beijing, Shanghai and Xiamen will be the pioneers of this new IVS.
At the moment, visitors to Taiwan can only visit if they are part of an organized tour arranged by an approved travel agency. There is a daily limit of 4000 mainland visitors and the IVS will start with a modest daily limit of 500 visitors.
The organized tours to Taiwan only began in July 2008 and latest data show that 1.33 million PRC visitors crossed the Taiwan Strait in 2010, accounting for almost 40% of all tourist arrivals.
The IVS to Hong Kong and Macau were introduced in July 2003 as part of the Chinese government’s efforts to help the two cities recover from the SARS outbreak. The scheme has been an unmitigated success for both, with the number of individual travellers to Hong Kong reaching a total of 14.2m in 2010 (source: Hong Kong Tourism Board).
Direct flights from the mainland to Taiwan are now available from 50 departure points. Expect this number to rise quickly as more cities and their residents are approved for the new IVS.
2) The Beijing-Shanghai high speed rail link is slated to start on July 1st (trial operations have been ongoing since May). Fares have been set at Rmb 410 to 1750 (about USD 63 to 270) depending on class of seat and the speed of the train. For trains travelling at 300kph, the second-class seat will cost Rmb555 while business class will set you back Rmb1750. For slower trains (250kph), the tickets will cost Rmb 410 for second class and Rmb650 for first class.
The initial schedule is for 63 pairs of trains travelling at 300 kph (journey time 4 hours 48 minutes) and 27 pairs of trains at 250 kph completing the trip in just under 8 hours. The current fastest train takes 10 hours.
We have been on a number of high-speed trains in China and second-class seats are just fine. We look forward to trying this service out soon.
By Bowen Asia, on April 11th, 2011
One of the big questions about China at the moment is the sustainability of the country’s huge investment program. Last year, fixed capital investment was $2 trillion, nearly half of GDP. There is particular concern about the money being sunk into China’s High Speed Rail network. China is said to have invested $300 billion building the first 8,000 km of track and to be investing a further $450 billion laying the next 8,000 km.
The Ministry of Railways is reported to have $275 billion in debt at the end of 2010 with interest payments running at $15 billion a year.
One of . . . → Read More: Rail Investment in China – On the Right Track?
By Bowen Asia, on April 6th, 2011
In early March, many considered Foreign Minister Maehara’s stepping down as unfortunate for Japan as he was the most promising candidate to be the new PM if Mr. Kan were to step down. The Tohoku earthquake/tsunami on March 11 seems to have temporarily diverted attention to rescue and recovery efforts; but before the disasters, it was widely believed that the current administration could end anytime. While politics were gloomy, the economy did not look too bad before disasters struck. However, the outlook now has become more complicated and probably more negatives are going to surface even if the fallout from the . . . → Read More: Tough Choices Ahead in Japan
By Bowen Asia, on April 5th, 2011
2027 –The year we may possibly see anything close to what India has experienced in the past week. That’s the earliest year in which the ICC Cricket World Cup may be back in the Sub-Continent. Was the 2nd of April 2011 one of the greatest days in Indian modern-day history? Clearly independence in 1947 wasn’t as millions were being slaughtered across the country while the architect of independence, Mahatma Gandhi, was nowhere to be seen when the Indian flag was hoisted in Delhi. I cannot think of any other time in history when the whole country was united as it has been . . . → Read More: United India – The Week In Which The Entire Nation Came Together
By Bowen Asia, on March 31st, 2011
The pedestrian plaza in Chengdu was busy last week. All the usual Western and Chinese brands had stores there. A new addition to the scene was the paramilitary police. When the close marching group of camouflaged soldiers first walked by, we thought they were just passing through – on their way to some depot or parade or something. But ten minutes later they were back: the tallest, most square jawed and most muscular out front. At first we thought they were unarmed. But each carried a black policeman’s truncheon hidden up their sleeves. Another ten minutes and they were back – . . . → Read More: Marxist Dialectic Says Yuan Must Rise
By Bowen Asia, on March 18th, 2011
Dzung is taking some of his family members, including young nieces and nephews, to Ehime — 700km south of Tokyo — where the children’s grandparents live. Monday is a holiday in Japan so it made sense to go for the long weekend — especially with the threat of more blackouts. Here is an update from Dzung on the road.
“We left Tokyo around 9pm last night. The massive blackout as warned by the government and Tepco didn’t actually happen, thanks to cooperation by businesses and residents. A lot of companies already let their employees leave work early in the afternoon to avoid . . . → Read More: On the Road in Japan
By Bowen Asia, on March 15th, 2011
Uncertainty increases as nuclear fallout threat is looming in the wake of confusion created by the unfolding nuclear crisis. The media has reported radiation detected in Tokyo metropolitan area while authority dismissed its harm to human health. I am not sure if I should be scared by this but certainly I would have to refrain from going outside and take all precautions seriously.
Activities around my neighborhood have substantially reduced. It is hard to say anyway because the neighborhood has been always pretty quiet. What I can tell is the sound of the Chuo-line commuter trains and Tozai Subway line has become . . . → Read More: Earthquake Update: Coping and Hoping
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