India’s current account deficit (CAD) rose to a record 6.7 per cent of GDP in the last quarter of 2012. That clearly is unsustainable. But an effective cure must address the roots of the problem, for which a correct diagnosis is essential.

India’s current account deficit (CAD) rose to a record 6.7 per cent of GDP in the last quarter of 2012. That clearly is unsustainable. But an effective cure must address the roots of the problem, for which a correct diagnosis is essential.

The tight monetary policy that Vietnam introduced in 2011 has revealed deep fissures in the country’s political economy. These fissures come about because the economy is comprised of two largely autonomous sectors. The first is a dynamic, competitive export sector, specialising in labour-intensive manufactures and agricultural commodities. The second is a protected sector, dominated by state-owned and state-related firms, which has survived largely on the basis of easy credit and favoured access to land.

The tight monetary policy that Vietnam introduced in 2011 has revealed deep fissures in the country’s political economy. These fissures come about because the economy is comprised of two largely autonomous sectors. The first is a dynamic, competitive export sector, specialising in labour-intensive manufactures and agricultural commodities. The second is a protected sector, dominated by state-owned and state-related firms, which has survived largely on the basis of easy credit and favoured access to land.

Electioneering in Malaysia has been at a fever pitch for many months now as Prime Minister Najib Razak prepares to call a general election. Yet away from the election’s sound and fury, the Malaysian government has been implementing some remarkable economic and institutional reforms that will stand the country in good stead in coming decades. But it has failed to address arguably the single most important obstacle to economic rejuvenation in Malaysia.

Electioneering in Malaysia has been at a fever pitch for many months now as Prime Minister Najib Razak prepares to call a general election. Yet away from the election’s sound and fury, the Malaysian government has been implementing some remarkable economic and institutional reforms that will stand the country in good stead in coming decades. But it has failed to address arguably the single most important obstacle to economic rejuvenation in Malaysia.

The future of manufacturing in developed economies, and the scope for digital technology to provide new life for that sector, has received increasing attention as production moves to low-wage countries and as the manufacturing process becomes more fragmented. A new data set on the nature of world manufacturing trade in goods and services released by the OECD and the WTO this month suggests the real complexity of this story and the importance for policy makers of understanding global value chains. This new data set will have particular relevance across Asia, and especially East Asia, where manufacturing is already heavily organised around value chains.

The future of manufacturing in developed economies, and the scope for digital technology to provide new life for that sector, has received increasing attention as production moves to low-wage countries and as the manufacturing process becomes more fragmented. A new data set on the nature of world manufacturing trade in goods and services released by the OECD and the WTO this month suggests the real complexity of this story and the importance for policy makers of understanding global value chains. This new data set will have particular relevance across Asia, and especially East Asia, where manufacturing is already heavily organised around value chains.

Under regional FTAs like the Trans Pacific Partnership (TPP), far fewer countries are involved compared to multilateral trade negotiations like the Doha Round. The potential trade-offs in negotiations are more manageable and participant states may be more likely to make offers and examine concessions. But apart from this possible advantage, the TPP process has many downsides, and is undermining successful multilateral free trade.

Under regional FTAs like the Trans Pacific Partnership (TPP), far fewer countries are involved compared to multilateral trade negotiations like the Doha Round. The potential trade-offs in negotiations are more manageable and participant states may be more likely to make offers and examine concessions. But apart from this possible advantage, the TPP process has many downsides, and is undermining successful multilateral free trade.