The Contribution of Micro-enterprises to Economic Recovery and Poverty Alleviation in East Asia

The economic and social crisis that afflicted East Asia from mid 1997 produced the biggest setback to poverty reduction in the region for several decades, as well as aggravating social vulnerabilities. There were many dimensions to this, including: falling incomes; rising absolute poverty and malnutrition; declining public services; threats to educational and health status; increased pressure on women and children; and increased crime and violence. The objective of this paper is to analyse the potential contribution of one subset of small and medium sized enterprises, micro-enterprises and the role of micro-finance more generally, to regional economic recovery and poverty alleviation.micro-enterprises, micro-finance, economic recovery, poverty alleviation, East Asia

Indonesia: Recovery from Economic Social Collapse.

The collapse of the Indonesian economy during the period of the Asian financial and economic crisis of 1997/98, has been one of the most stunning and shocking events to have afflicted a developing country during the past several decades. This paper conducts a brief overview of recent macroeconomic developments in Indonesia, identifies some of the key factors behind the crisis, and outlines the IMF rescue program and the country's policy framework. The paper also discusses the short term economic and social prospects for the country, and policies essential for its recovery.INDONESIA ; ECONOMIC POLICY ; ECONOMIC DEVELOPMENT ; MACROECONOMICS

Competition Policy and SMEs in Vietnam

Vietnam stands at an important crossroad in its transition from a planned to market-oriented economy. Since the implementation of economic reform starting with Doi Moi in 1986, supplemented with further reform from 1989, the economy experienced rapid economic growth during the period of the 1990s until 1997. Since this time GDP growth has noticeably slowed, partly due to the onset of the financial and economic crisis to afflict the region in 1997-98, and partly due to a disconcerting, and related, decline in foreign direct investment flows. Despite this adverse development there has been a remarkable transformation of the economy that has seen it become more globally oriented, as exemplified by a rapid growth of both exports and imports and with a significant contribution to the economy from the foreign invested sector. For Vietnam to once again re-establish high and sustainable rates of economic growth will require further restructuring and reform efforts. In particular, this will require further progress in: establishing the institutional framework necessary for a market economy; ownership reform; encouraging foreign direct investment; allowing the private sector a larger role in the management and ownership of currently state owned enterprises; allowing unviable state owned assets to be liquidated and their assets put to more productive usage; and encouraging fair competition between different ownership forms, with the state, as a buyer, not discriminating against any form of ownership. These should form the core of the country's competition policy. This paper focuses upon the need for competition policy to encourage the nurturing, growth and development, specifically, of private sector small and medium enterprises (SMEs). Private entrepreneurship and enterprise reform can play a crucial role in the reform of the Vietnamese economy. Establishing a dynamic non-state manufacturing sector, with an emphasis on SMEs, will be a precondition for attaining the twin objectives of (1) restructuring and slimming state enterprises and (2) expanding non-farm employment and income opportunities. SMEs have the potential for job creation, contributing to sustainable economic development, allocating resources more efficiently, expanding exports, achieving a more equal distribution of incomes, and assist in rural and regional development.Vietnam, small and medium enterprises, SMEs, competition policy

Economic Transition: What Can Be Learned from China's Experience?

The last decade of this century has witnessed the transition of the formerly centrally planned economies of Europe and Asia to market economies, a process affecting some 1.7 billion people in 28 countries. While much agreement exists on the sorts of reform measures required, disagreement exists over their sequencing. The economic and social performance of these transition economies has varied considerably and for a variety of reasons, however China's performance, in particular, has been outstanding. The paper reviews the reform measures required for economic transition, and alternative sequencing approaches to these reforms. It conducts an overview of the performance of the transition economies, with focus placed upon the experience of the Chinese economy. An analysis of China's approach to economic reform, its key components, major outcomes and outstanding issues are discussed. Key lessons to be derived for other transition economies from China's experience are also presented.ECONOMIC REFORM

East Asian SME Capacity Building, Competitiveness and Market Opportunities in a Global Economy

Over the past decade the economies of East Asia, and APEC more generally, have been opening up their markets and in the process have achieved significant gains in exports and economic growth. In conjunction with this increased economic integration there has been increased recognition by regional governments of the potential for a substantial increase in the participation by small businesses in the generation of regional income, employment, exports, investment and expanded economic growth. Advances in information and communications technology add credence to this potential. In addition, developing economies are especially seeing small businesses as potential instruments for the alleviation of poverty. This viewpoint has been given further stimulus since the financial and economic crisis of 1997-98, arising from which there has been a growing recognition of the need for the East Asian economies to engage in comprehensive restructuring of their corporate sectors, with the objective of achieving transparency, improving corporate governance and developing globally competitive enterprises. The small and medium enterprise (SME) sector can play a key role in the attainment of such objectives. This paper reviews the contribution of the SME sector to the growth and development of the regional (East Asian) economies, and their increasing importance in the attainment of a sustained recovery of the region in terms of economic growth, employment, trade and investment and the development of globally competitive economies. It also identifies: barriers to their development; key factors essential for their capacity building; strategies to enhance their competitiveness in the global marketplace; and key components relating to their export success.East Asia, small and medium-sized enterprises, competitiveness, export success

The Australia-Korea Economic Relationship and Prospects for an FTA

Since the 1960s, trade opportunities based on complementary economies have driven the Australia-Korea economic relationship. Australia exported raw materials, principally minerals and energy, which Korea processed and subsequently sold on domestic and international markets. In return, Australia purchased increasing volumes of Korean manufactures, initially textiles, clothing and footwear and later automobiles. With the onset of the financial and economic crisis in Korea during 1997-98, trade and investment opportunities were severely constrained. However, in the wake of the crisis, and the rapid recovery of the Korean economy underpinned by corporate and financial sector reforms, trade and investment opportunities in traditional areas have re-emerged as well as in new areas. Australia's rapid economic growth has also increased demand for the sorts of consumer products produced by Korea. It is, therefore, opportune to consider the benefits, and obstacles, to the establishment of an Australia-Korea Free Trade Agreement. The paper analyses trends in Australia's trade and investment with Korea. New areas for trade are also highlighted as well as prospects for an FTA between the two countries. In doing so it: reviews the Australia-Korea bilateral trade relationship; reviews the nature and extent of foreign direct investment between Australia and Korea; reviews trade and investment prospects and opportunities between the two countries; analyses the prospects for a Korea-Australia Free Trade Agreement (KAFTA); reviews the potential economic effects from a KAFTA; and identifies key policy implications.Australia, Korea, free trade agreement, trade and investment

China's Township and Village Enterprises and their Evolving Business Alliances and Organizational Change.

The economic literature suggests that the success of China's WEs has arisen due to special circumstances. This paper argues, to the contrary, that they are likely to remain a significant feature of the Chinese economy, albeit in new organisational and ownership forms, for some time. Their evolving strategic business alliances, including that with science based research institutions, it is argued, will make this possible.OWNERSHIP ; BUSINESS ORGANIZATION ; ECONOMIC GROWTH

China's Economic Growth Slowdown: Causes, Consequences and Policy Options.

During its reform era China has experienced, and become accustomed to, high rates of economic growth, and rapid jobs growth particularly in the rural collectives and, more recently, private enterprises. Strong fixed asset investment and consumer demand in conjunction with a strong growth of net exports, provided the foundations for this. However during the latter part of 1997, after four years of monetary austerity measures, there were worrying signs that the growth of the economy was slowing considerably, primarily from a weakening of consumer and investment demand.ECONOMIC REFORM ; ECONOMIC GROWTH

The Dimensions of American Constitutional Equality

Liberty and equality are the hallmark characteristics of any legal order. Constitutional equality in the US is discussed. The rights of equality are not economic in nature, and they are not subject to strictly majority rule