{"id":6450,"date":"2010-10-28T00:00:26","date_gmt":"2010-10-28T00:00:26","guid":{"rendered":"https:\/\/www.ukm.my\/news\/?page_id=6450"},"modified":"2015-05-09T06:21:37","modified_gmt":"2015-05-09T06:21:37","slug":"great-recession-of-2008-turns-asian-industry-into-engine-of-growth-harvard-don","status":"publish","type":"page","link":"https:\/\/www.ukm.my\/news\/archive\/year-2010\/october-2010\/great-recession-of-2008-turns-asian-industry-into-engine-of-growth-harvard-don\/","title":{"rendered":"\u201cGreat Recession\u201d of 2008 Turns Asian Industry into Engine of Growth: Harvard Don"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main \"><div class=\"mashsb-box\"><div class=\"mashsb-count\" style=\"float:left\"><div class=\"counts mashsbcount\">0<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.ukm.my%2Fnews%2Farchive%2Fyear-2010%2Foctober-2010%2Fgreat-recession-of-2008-turns-asian-industry-into-engine-of-growth-harvard-don%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.ukm.my\/news\/?p=6450&amp;via=https:\/\/twitter.com\/ukmtwit\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><div class=\"mashsb-toggle-container\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"newsitem_tools\">\n<div class=\"newsitem_info\" style=\"text-align: justify;\"><span class=\"createdate\">THURSDAY, 28 OCTOBER 2010 17:43<\/span><\/div>\n<\/div>\n<div class=\"newsitem_text\">\n<div class=\"news_item_article\">\n<p style=\"text-align: justify;\"><span lang=\"MS\"><strong><img decoding=\"async\" class=\"border alignleft\" src=\"https:\/\/www.ukm.my\/news\/images\/stories\/Campus_News_Picture\/havard1.jpg\" alt=\"\" border=\"0\" \/>By Kuah Guan Oo<br \/>\nPix by Saliman Leman<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nBANGI, 28 Oct. 2010 \u2013\u00a0The \u201cGreat Recession\u201d\u00a0of 2008 is now facing an uneven recovery across geographies and sectors with Asia, especially Asian industry, emerging as an \u201cengine of growth\u201d, said a Harvard professor here today.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nProfessor Denis J. Encarnation said there is also a wide variance in the recovery which has also altered the relative rankings of countries, starting with the BRIC nations (that is, Brazil, Russia, India and China).<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\n\u201cAsia\u2019s share of World Gross Domestic Products is about 35% at purchasing power parity or about 27% at market exchange rates in 2008,\u201d he said, noting that the financial crisis had led to a geographic dispersion in World Gross Domestic Product.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nProf Encarnation said this during a lecture on \u201cAsia in the World Economy: Before and After the \u2018Great Recession\u2019 of 2008\u201d at Universiti Kebangsaan Malaysia under the Harvard Ezra F. Vogel Malaysia\/Singapore Initiative Public Lecture Series 2010, which was the third to be sponsored by the Lam Kin-chung Morning Sun Charity Fund of Hong Kong. \u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nHe said the \u201cGreat Recession\u201d\u00a0 also saw the largest decline in global wealth since the \u201cGreat Depression\u201d\u00a0 of the 1930s, and the most rapid recovery, albeit an uneven one with a wide variance.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nHowever, even after the crisis, wealth still remained concentrated in the top 10 economies of USA (US$14.1 trillion in GDP), Japan (US$5.1 trn), China (US$5.0 trn), Germany (US$3.3 trn), France (US$2.7 trn), UK (US$2.2 trn), Italy (US$2.1 trn), Brazil (US$1.6 trn), Spain (US$1.5 trn) and Russia (US$1.3 trn) at market forex rates in 2009.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nAll these 10 top economies accounted for US$43.1 trillion or 62.6% of the World GDP.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nBy 2012, India with a GDP of US$1.8 trillion would join these 10 top economies, replacing Spain with USA retaining its top position with a GDP of US$15.8 trillion, followed by China (with US$7.2 trn), Japan (US$5.9 trn), Germany (US$3.5 trn), France (U$2.7 trn), UK (US$2.5 trn), Brazil (US$2.3 trn), Italy (US$2.1 trn), Russia (US$1.9 trn), at market forex rates.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nGDP is the market value of all the goods and services produced within a country and is generally used to measure the wealth and standard of living of a nation.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\n\u201cThe BRICs are now in their 2nd decade of being centers for wealth creation,\u201d said Prof Encarnation, who has recently retired from Harvard University where he spent the first half of his nearly 30 years of service with the faculty of the Harvard Business School.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\n<img decoding=\"async\" class=\"border alignleft\" src=\"https:\/\/www.ukm.my\/news\/images\/stories\/Campus_News_Picture\/havard.jpg\" alt=\"\" border=\"0\" \/>He then joined the Centre for Business and Government in the John F. Kennedy School of Government and founded the centre\u2019s first Asia Programme. He had taught an award-winning course on Asia in the World Economy to hundreds of graduate students from Harvard, MIT and elsewhere. Currently, he consults for multinational corporations, government agencies and non-governmental organizations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nIn terms of geographic dispersion of World GDP, Prof Encarnation said the next 10 top economies in 2009 were Mexico (with a GDP of US$1.47 trillion), followed by South Korea (US$1.36 trn), Spain (US$1.36 trn), Canada (US$1.28 trn), Indonesia (US$0.96 trn), Turkey (US$0.88 trn), Australia (US$0.85 trn), Iran (US$0.83 trn), Taiwan (US$0.74 trn) and Poland (US$0.69 trn).<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nAll the top 20 economies accounted for US$53.5 trillion or 77.5% of the World GDP.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nHe said below the BRIC, a wider geographic dispersion of wealth creation could be found across the Asia-Pacific, Europe and the Middle East.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nHe also said that one source of recovery and growth is trade, which remains concentrated geographically where the top three \u2013\u00a0Germany, China and USA \u2013\u00a0accounted for 25% of the total merchandise exports in 2008.<\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"MS\"><br \/>\nAnother source of recovery and growth is productivity although the relative productivity of labour varies widely across geographies and sectors.<\/span><\/p>\n<p style=\"text-align: justify;\">\n\u201cFor China, India and much of emerging Asia, productivity is the next challenge\u2026 and the next opportunity,\u201d he said. <img decoding=\"async\" src=\"https:\/\/www.ukm.my\/news\/images\/stories\/Icon\/ukmnewsportal.png\" alt=\"\" border=\"0\" \/><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>THURSDAY, 28 OCTOBER 2010 17:43 By Kuah Guan Oo Pix by Saliman Leman BANGI, 28 Oct. 2010 \u2013\u00a0The \u201cGreat Recession\u201d\u00a0of<a class=\"tukm-readmore\" href=\"https:\/\/www.ukm.my\/news\/archive\/year-2010\/october-2010\/great-recession-of-2008-turns-asian-industry-into-engine-of-growth-harvard-don\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":6451,"parent":1410,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-6450","page","type-page","status-publish","has-post-thumbnail","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/pages\/6450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/comments?post=6450"}],"version-history":[{"count":2,"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/pages\/6450\/revisions"}],"predecessor-version":[{"id":6453,"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/pages\/6450\/revisions\/6453"}],"up":[{"embeddable":true,"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/pages\/1410"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/media\/6451"}],"wp:attachment":[{"href":"https:\/\/www.ukm.my\/news\/wp-json\/wp\/v2\/media?parent=6450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}