The Ill Wind from the West

Countries throughout Asia had assumed that their economies were disconnected from the debt problems of Europe and the US. “Asia, too, is showing signs of faltering,” including declining growth and investor confidence, explains Jaswant Singh, who served as India’ as defense, finance and foreign minister over the years, for Project Syndicate. He compares the struggles of major emerging economies China and India. Specific challenges for India include double-digit inflation in food prices, dire poverty and corruption; China must manage wage inflation amid declining exports. Decentralized decision-making in both nations has contributed to imbalances and governance difficulties. “Europe’s malaise, and the resulting rise of populist politics, suggests that Asia’s governments can ill afford to sit on their growth laurels,” warns Singh. Bold ideas are required, and many stand ready to try. The test is getting diverse governments to cooperate. Cooperation alone, within and among governments, could go a long way in boosting global confidence. – YaleGlobal