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About Us
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The ICA Institute
is a non-profit research institute working to
foster research and dissemination of
knowledge on the rise of China and India and
their impact on global markets, global
resources and geopolitics of the world. The
ICA Institute's mission is to generate new
perspectives on the role of market and
resource driven economic development. ICA
Institute fosters interaction and dialogue
between academic scholars, industry leaders
and policy makers on the impact of emerging
economies in general and China and India in
particular. Specifically, The ICA Institute is
positioned to be a catalyst between faculty
and students in International Business and
industry leaders and managers.
www.icainstitute.org
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Events & Announcements
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 Webinar: Competing with Emerging-market Multinationals: The Case of India
(ICA Institute | Feb 10)
Ravi Ramamurti
Director of the Center for Emerging Markets, Northeastern University.
Wednesday, February 10, 2009
11:30 AM - 12:45 PM EST
Click here to Register.
 Call for Papers: Journal of Emerging Knowledge on Emerging Markets (JEKEM)
(ICA Institute | Jan 14)
Announcing preparations for the second issue of the India, China & America
Institute's new Working Papers Journal, Journal of Emerging Knowledge on
Emerging Markets to be published in May 2010. This journal provides a forum
for the exchange of ideas and shared learning experiences among policy
makers, scholars and practitioners on the global economic impact of India,
China and America.
Online Seminar: Understanding and Doing Business in India
(IUWAI | Feb 1)
The Understanding and Doing Business in India seminar offers a comprehensive look at contemporary India and the opportunities and challenges of doing business in India. The seminar, offered in two modules, provides a platform for understanding India and for discussing a variety of issues related to doing business in India.
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From Our Publications
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Reinventing China's Healthcare
(JEKEM | Issue 1 Vol 1)
Like the U.S., China's healthcare costs have soared in recent years. Outpatient costs were 12 times higher in 2006 than in 1990 though incomes increased by only 5-7 times during the same period. 1 Spending on healthcare amounted to about $185 billion or 5.67% of China's GDP in 2007, yet healthcare investments have clearly not kept pace with China's miraculous economic growth.
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Headlines
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Is America competing?
(The Scientist | Jan 15)
At
1.47 million, the number of researchers in the United States is still
the highest of all the regions surveyed, but the overall growth from
1995 to 2008 was 3%. The growth in number of researchers in China over
the same period was 8.7%, with 1.42 million today, and no signs of
slowing...
China Accelerated Stimulus Exit Signals Higher Rates
(Bloomberg | Jan 12)
An unexpected shift by China's
central bank to restrain lending may foreshadow higher interest
rates and a relaxation in the nation's currency peg against the
dollar.
Copenhagen & beyond: Stage set for BASIC meet in Delhi
(The Economic Times | Jan 22)
The
BASIC meeting in New Delhi will focus on post-Copenhagen scenario. With
the group-Brazil, South Africa, India and China-now focusing on climate
change negotiations leading to the conference at Mexico, it will need
to work out ways in which it can make common cause with the rest of the
developing bloc. There has been a sense that in Copenhagen, the
emerging economies or the more advanced developing countries had broken
ranks with the G-77.
China data show record reserves, strong lending growth
(Maket Watch | Jan 15)
China on Friday reported data pointing to record foreign-exchange reserves, torrid bank lending and continued rapid money-supply growth. But analysts split on whether the data would spur the central bank into a stance more hawkish than the tentative policy tightening that's already expected.
Inflation fears grow in China
(The Australian | Jan 22)
By Michael Sainsbury, China correspondent
China is growing at its fastest pace in two years, putting it on target to overtake Japan as the world's second-biggest economy but raising fears the nation will overheat as it roars out of the financial crisis.
Figures released yesterday reveal Chinese gross domestic product grew 10.7 per cent in the final quarter of last year compared with the same three months in 2008, its fastest pace since the end of 2007.
Asian economies need to invest more, not consume more
(The Economist | Jan 21)
The widespread belief that Asian households do not spend is also flawed. According to a study by Eswar Prasad of Cornell University, private consumption accounts, on average, for 58% of GDP in emerging Asia outside China. That is lower than in America, which has been overconsuming for years, but it is slightly higher than in Japan or the European Union. In the eight years to 2008, investment accounted for half of China's GDP growth and private consumption for less than one-third. But in most other Asian economies the relative shares were almost exactly the reverse, with consumption the dominant source of growth.
Is China growing too fast?
(The Economist | Jan 21)
A year ago many economists were fretting about unemployment and deflation. Now, with indecent haste, they have shifted to worrying that the Chinese economy is overheating and inflation is taking off. The 12-month rate of consumer-price inflation rose to 1.9% in December, an abrupt change from July when prices were 1.8% lower than a year before.
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Policy | Politics
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Australia: Dysfunctional diplomacy
(The Australian | Jan 15)
[Australian] Relationships with China, India and Japan have hit some turbulence, while that with Indonesia - Australia's other key Asian partner - has remained steady. Tensions in India have resulted from the government's refusal to export uranium and the continuing problems with violence against Indian students, on which Rudd may find it difficult, for political reasons, to apply pressure to Victorian Premier John Brumby. With China, relations stabilised towards the end of last year with the visit of Vice Premier Li Keqiang, but only after tensions had risen over the arrest in Shanghai of Rio Tinto executive Stern Hu, over Australia's governance of Chinese investment, over the Defence white paper warning of China's rise, and over the visit of Uighur activist Rebiya Kadeer.
China Says U.S. Criticism of Its Internet Policy Harms Ties
(New York Times | Jan 22)
The Chinese Foreign Ministry lashed out Friday against criticism of China in a speech on Internet censorship made by Secretary of State Hillary Rodham Clinton, calling on the United States government "to respect the truth and to stop using the so-called Internet freedom question to level baseless accusations."
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Capital Markets
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China's 'Big Step' on Futures May Boost Investments
(Bloomberg News | Jan 8)
China Securities Regulatory Commission said that the government has approved the introduction of index future, margin trading and short-selling. The index future may begin to be traded as early as March. This is a gigantic leap for China's capital market.
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Environment | Climate Change
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A mistaken claim about glaciers raises questions about the UN's climate panel
(The Economist | Jan 21)
On January 20th the IPCC released a statement reiterating its overall conclusion on water from seasonal snow packs and glaciers in a warming world: that it is likely to be scarcer and available at different times. The statement also says that in the case study on the Himalaya's glaciers "the clear and well-established standards of evidence, required by the IPCC procedures, were not applied properly."
China data show record reserves, strong lending Sonjica to attend climate meeting in India
(Engineeing News | Jan 15)
South Africa's Water and Environmental Affairs Minister Buyelwa Sonjica would meet fellow Ministers from Brazil, India and China in New Delhi, India on January 24, to discuss pledges for action against climate change. The so-called Basic (Brazil, South Africa, India, and China) countries played a pivotal role in drafting the Copenhagen Accord, which was 'noted' by the United Nations Framework Convention on Climate Change (UNFCCC) at the international conference in Copenhagen in December.
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InfoComm | Technology
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Tata Sees U.S. Spur Software Sales, China a Marathon
(The Business Week | Jan 18)
Tata Consultancy Services Ltd. will depend on the U.S. for half its revenue, while expansion in China, the world's fastest-growing major economy, will take time, the Indian software exporter's chief executive officer said.
Google May Close China Site After 'Highly Sophisticated' Attack
(Bloomberg | Jan 15)
Google is considering to shut down its Chinese website google.cn and its offices in China after sophisticated attack.
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Industry | Manufacturing
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Fortescue looks beyond China as shipments soar
(The Australian | Jan 22)
By Sarah-Jane Tasker
Australia's Fortescue Metals Group is targeting non-Chinese steel mills to expand its customer base beyond the economic powerhouse after reporting a 44 per cent jump in shipments.
The Perth-based miner's quarterly production report, released yesterday, said it had achieved a milestone in the period: the first shipment to a customer outside China.
"It is the company's objective to broaden its customer base and expand outside of China and this was achieved in December when 170,000 tonnes was shipped to one of Asia's largest and most reputable non-Chinese steel mills," the company said. "The customer is now looking for a second shipment in the near term."
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Education & Work Force Development
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America's Impact On Asian Students
(UNESCO | Jan 19)
A record 671,616 foreign students attended U.S. universities during the 2008-2009 academic year, according to the Institute of International Education. That's up 8 percent from the previous year. The trend shows accelerating growth - the number of students enrolling for the first time in U.S. institutions jumped nearly 16 percent.
 Financial crisis threatens to set back education worldwide
(UNESCO | Jan 19)
The aftershock of the global financial crisis threatens to deprive millions of children in the world's poorest countries of an education, the 2010 Education for All Global Monitoring Report warns. With 72 million children still out of school, a combination of slower economic growth, rising poverty and budget pressures could erode the gains of the past decade.
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Infrastructure | Real Estate
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 Global Real Estate: Ready for a Rebound?
(Knowledge@ Wharton | Jan 20)
...opportunities that receded in the West in the wake of the financial crisis can still be found in emerging markets -- particularly China and Brazil -- although the barriers to entry remain high...In developed markets, several big question marks remain, especially in the commercial real estate sector...
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Opinions
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Invested Interests
(Economist | Jan 21)
China aside, most Asian economies need to invest more, not consume more.
China and the U.S.: A Tale of Two Real Estate Bubbles
(Seeking Alpha | Jan 21)
Another trait China and the U.S. share is rising income/asset inequality. A small Elite class of each nation's citizenry has reaped the majority of the last 30 years' financial rewards; recall that some 2/3 of the productive assets of the U.S. are owned by the top 1% of the citizenry.
The Myth of Permanent U.S. Global Dominance
(The Globalist | Jan 22)
...Still, the United States entered the 21st century hoping to boost its ties to China financially - and to India strategically. There are enormous potential rewards for effectively managing these relationships.
Google and China: Flowers for a funeral
(The Economist | Jan 14)
The company has decided to stop censoring the results of its China-based search engine, Google.cn. Mr Drummond said this might result in having to shut down Google.cn and Google's offices in China. In the face of much criticism from Western human-rights advocates, Google justified its decision to set up Google.cn in 2006 by pointing out that China often blocked its uncensored engine, Google.com.
Is China the Next Enron?
(New York Times | Jan 12)
Reading The Herald Tribune over breakfast in Hong Kong harbor last week, my eye went to the front-page story about how James Chanos - reportedly one of America's most successful short-sellers, the man who bet that Enron was a fraud and made a fortune when that proved true and its stock collapsed - is now warning that China is "Dubai times 1,000 - or worse" and looking for ways to short that country's economy before its bubbles burst.
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Sincerely,
ICA Institute
Please send your comments/suggestions to prashant.das@icainstitute.org
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