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Economics, Finance sector development

Should emerging Asia worry about a “taper tantrum” post-COVID-19?

Should emerging Asia worry about a “taper tantrum” post-COVID-19?

With an improved growth outlook in the United States (US) in the second half of 2021 as the economy recovers from the coronavirus disease (COVID-19), in part related to the substantial fiscal stimulus in the US introduced at the start of 2021, the Federal Reserve (Fed) is on course to slow down its asset purchases program, or so-called quantitative easing (QE) tapering. This has sparked fears of sharp capital outflows from emerging market economies (EMEs) and currency depreciations, as occurred during the “taper tantrum” episode of May 2013. At that time, emerging markets reacted abruptly to the announcement by the Fed that it may wind down its quantitative easing program, signalling tighter monetary policy (Sahay et al. Read more.


Economics, Social development and protection

Supporting the creative economy for sustainable development in Southeast Asia

Supporting the creative economy for sustainable development in Southeast Asia
Many efforts have been made in Southeast Asia to support creative industries and boost the creative economy, realizing the ability of knowledge-based economic activities to foster income generation, job creation, and export earnings while promoting social inclusion, cultural diversity, and human development (UNCTAD 2010: 10).

Economics, Finance sector development

Foreign holdings of local currency bonds: A double-edged sword for emerging Asia

Foreign holdings of local currency bonds: A double-edged sword for emerging Asia
Local currency bond markets (LCBMs) have continued to develop in emerging Asian economies since the early 2000s, with foreign investor participation rising markedly since the global financial crisis of 2007–2008. LCBMs help to enhance domestic financial stability by enabling governments and companies to borrow in domestic currency.

Economics, Finance sector development, Health, Social development and protection

Remittance inflows giving resilience to Bangladesh’s rural economy amid COVID-19

Remittance inflows giving resilience to Bangladesh’s rural economy amid COVID-19
While the World Bank has identified Bangladesh as one of only three big economies that had increases in remittance inflows in 2020, along with Pakistan and Mexico (Ratha et al. 2020), and remittances have long made up a substantial share of people’s income in the country, preliminary results from a recent study supported by the Asian Development Bank Institute (ADBI) finds surprising resilience for remittance inflows into the rural economy during the first wave of the coronavirus disease (COVID-19) pandemic in Bangladesh.

Climate change, Economics, Environment, Governance and public sector management

Unfolding a holistic approach to disaster risk reduction

Unfolding a holistic approach to disaster risk reduction
This year marked the 10th anniversary of the Great East Japan Earthquake, of which economic losses are estimated at $221 billion (EM-DAT), making it the most costly natural disaster recorded since 1900. The earthquake itself did not cause significant damage or casualties, but the subsequent 5–20 meter tsunami hit northern coastal areas, washing away townships and destroying the cooling system at the Fukushima Daiichi Nuclear Power Plant. To date, the recovery process is still ongoing to restore industries and economic activities to their pre-disaster levels.

Economics, Finance sector development Agriculture and natural resources, Economics

Transitioning to high-value agriculture through cluster-based development

Transitioning to high-value agriculture through cluster-based development
Income growth, urbanization, nutritional awareness, and supermarket revolutions in Asia are fueling demand for high-value agricultural products (HVPs), such as vegetables and fruits. This change in consumer demand can provide new agri-food market opportunities, which in turn can contribute to numerous Sustainable Development Goals through increased rural income, rural livelihood improvement, and rural poverty reduction.

Economics, Governance and public sector management, Health

Can closing borders shut out new COVID-19 strains?

Can closing borders shut out new COVID-19 strains?
In fighting the coronavirus disease (COVID-19) pandemic and, in particular, the new strains that are emerging, many countries have adopted the dual approach of closing borders and increasing domestic surveillance. This might be overkill. In fact, the latter might suffice.

Economics, Finance sector development

Achieving resilient emerging market economies amid the macroeconomic challenges of the 21st century

Achieving resilient emerging market economies amid the macroeconomic challenges of the 21st century
Emerging market economies have faced a host of challenges in the post-global financial crisis (GFC) environment. The GFC environment was shaped by the confluence of four key developments. The first was financial globalization and de-regulation, processes that started in the late 1970s in Organisation for Economic Co-operation and Development (OECD) countries. These later spread to emerging markets in the 1990s and 2000s and transformed the global financial system into a complex cobweb of global networks, exposing countries to financial shocks transmitted by volatile bursts of capital inflows and outflows of “hot money.”

Economics, Finance sector development, Information and Communications Technology

Fintech development transforming the financial landscape in the People’s Republic of China

Fintech development transforming the financial landscape in the People’s Republic of China
Financial technology (fintech) is rapidly changing the financial landscape in the People’s Republic of China (PRC), with important implications for financial inclusion and macroeconomic stability (Huang 2020). Fintech in the PRC started at the end of 2004 when the mobile payment service Alipay first came online. However, fintech did not grow dramatically until 2013, when the online money market fund Yu’ebao started to receive investments from Alipay users.