Sunday, October 25, 2009
ASEAN-U?
On Saturday, the 10-nation Association of Southeast Asian Nations met with China, Japan, S. Korea, India, Australia, and New Zealand to discuss, among other things, the possibility of forming an EU-style community and shared currency. Leaders of the countries are pushing for the East Asian community to take a leading role as they rebound from the global economic crisis. As it stands, ASEAN leaders are discussing plans to form a political and economic union by 2015. However, territorial and human rights issues have tainted the summit meeting.
An article in the Wall Street Journal today discussed the matter in terms of competing visions for the East Asian union. On the one hand China believes in stronger ties with trading partners in S.E. Asia, while Japan wishes to extend an offer to the U.S. to participate in the trade group, although the extent this participation is yet to be defined. This is an interesting development, given that part of the expectation from the Asian union is a lessened dependence on the U.S.
China is not interested in including democratic nations such as the U.S., Australia, India and New Zealand, for obvious reasons.
At this point in time, it doesn't seem to me that such a union is feasible. For one, I think the political institutions in many of these countries are too different or in the case of Myanmar, too extreme to enter into a union. Territorial disputes may be settled in the next ten years, but without clear regulation human rights will remain an issue. I think the EU worked because all of the participating nations have defined, shred goals for Europe as a whole. I am not sure that Southeast Asia has this unity. Furthermore, I think that many of the countries in S.E. Asia, with perhaps the exception of Japan, are underestimating the necessity of U.S. involvement. I believe that allegiance with the U.S. is paramount to international security and the Southeast Asian nations would be folly to ignore this.
An article in the Wall Street Journal today discussed the matter in terms of competing visions for the East Asian union. On the one hand China believes in stronger ties with trading partners in S.E. Asia, while Japan wishes to extend an offer to the U.S. to participate in the trade group, although the extent this participation is yet to be defined. This is an interesting development, given that part of the expectation from the Asian union is a lessened dependence on the U.S.
China is not interested in including democratic nations such as the U.S., Australia, India and New Zealand, for obvious reasons.
At this point in time, it doesn't seem to me that such a union is feasible. For one, I think the political institutions in many of these countries are too different or in the case of Myanmar, too extreme to enter into a union. Territorial disputes may be settled in the next ten years, but without clear regulation human rights will remain an issue. I think the EU worked because all of the participating nations have defined, shred goals for Europe as a whole. I am not sure that Southeast Asia has this unity. Furthermore, I think that many of the countries in S.E. Asia, with perhaps the exception of Japan, are underestimating the necessity of U.S. involvement. I believe that allegiance with the U.S. is paramount to international security and the Southeast Asian nations would be folly to ignore this.
Monday, October 19, 2009
Investing in the poor
According to an article in the WSJ, Indian companies are investing in technology and innovation targeted toward the poor. The trend started this summer with the development of the Nano, an extra-small, $2200 car released in July.
"For the farmer who wants to save for the future, one Indian entrepreneur has developed what is, in effect, a $200 portable bank branch. For the village housewife, a wood-burning stove has been reinvented to make more heat and less smoke for $23. For the slum family struggling to get clean water, there is a $43 water-purification system. For the villager who wants to give his child a cold glass of milk, there is a tiny $70 refrigerator that can run on batteries. And for rural health clinics, whose patients can't spend more than $5 on a visit, there are heart monitors and baby warmers redesigned to cost 10% of what they do elsewhere." WSJ
I think it is really smart for Indian to be targeting the majority of its consumers. Up until now Indian has relied on information and technology that has trickled through developed countries. It is about time that they starting developing new products specifically designed for poor people, rather than simply adjust and adopting the old. This is also significant given that India is taking advantage of their vast supply of cheap labor in order to benefit the greater Indian population.
On a global scale, this new innovation could have an enormous impact. As the article notes, India is venturing into previously untapped markets. Furthermore, they are using unconventional distributing measures, such as self-help groups and micro lenders.
Pretty Neat-O.
"For the farmer who wants to save for the future, one Indian entrepreneur has developed what is, in effect, a $200 portable bank branch. For the village housewife, a wood-burning stove has been reinvented to make more heat and less smoke for $23. For the slum family struggling to get clean water, there is a $43 water-purification system. For the villager who wants to give his child a cold glass of milk, there is a tiny $70 refrigerator that can run on batteries. And for rural health clinics, whose patients can't spend more than $5 on a visit, there are heart monitors and baby warmers redesigned to cost 10% of what they do elsewhere." WSJ
I think it is really smart for Indian to be targeting the majority of its consumers. Up until now Indian has relied on information and technology that has trickled through developed countries. It is about time that they starting developing new products specifically designed for poor people, rather than simply adjust and adopting the old. This is also significant given that India is taking advantage of their vast supply of cheap labor in order to benefit the greater Indian population.
On a global scale, this new innovation could have an enormous impact. As the article notes, India is venturing into previously untapped markets. Furthermore, they are using unconventional distributing measures, such as self-help groups and micro lenders.
Pretty Neat-O.
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