Last week the Asia Pacific Summit 2011 took place in London, presented by the London Business School and sponsored by leading telecommunications company Telstra International. The Summit brought together a wide scope of experience and perspective – from the academics of the London Business School to the heads of some of the world’s leading businesses. The two day event incorporated lectures, speeches, case study presentations, panel sessions and interactive workshops all aimed at examining the many potential challenges and pitfalls of doing business in Asia Pacific, as well as key strategies to overcome them.

2. Sheer size that makes these countries so important Population (000’s) BANGLADESH 142968 BRAZIL 180641 CHINA (excluding TAIWAN) 1307802 EGYPT, ARAB REP. 69907 ETHIOPIA 71256 FRANCE 60090 GERMANY 82491 INDIA 1094583 INDONESIA 220558 IRAN, ISLAMIC REP. 67468 ITALY 57471 JAPAN 127169 MEXICO 105332 NIGERIA 141115 PAKISTAN 155772 PHILIPPINES 84392 RUSSIAN FEDERATION 142322 SOUTH AFRICA 45192 THAILAND 62732 TURKEY 72636 UNITED KINGDOM 59315 UNITED STATES 294931 VIETNAM 82966 WORLD 6418637

5. Steady State Determinants Always significant Frequently significant Often significant Sometimes significant Education – Primary school Enrolment Regional dummies (Latin America, Sub Saharan Africa) Negative) Exchange Rate Overvaluation (Negative) Government Consumption (Negative) Investment Rule of Law Black market premiums (Negative) Financial Sophistication Health – Life Expectancy Political Rights Primary Products (% exports – Negative) Inflation (Negative) Religious dummies (confucian, Muslim, Protestant) Ethnic Diversity (Negative) Openness Civil Liberties Degree of Capitalism Revolutions, Coups, Wars (Negative) Religious dummies (Buddhism, Catholic) Public Investment

6. World has seen emerging markets grow fast before

7. US and Japanese GDP per Capita 1950-2001 Convergence slows as countries catch up

8. Expect the same from China and India

9. The World to Come World view dominated by US and Europe

10. The World to Come Dominance of US and Europe a “recent” phenomenon

11. The World to Come Dramatic shift in recent times of world economy eastwards

13. Although economies large due to population size getting rich takes much longer. US likely to maintain “soft power” for long long time

14. If get full convergence so GDP per capita same around the world this is our world view

15. Page Fundamentals shift

17. Its all about GDP

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22. IMF Forecasts Page

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24. Impact of Crisis – Three Factors (Convergence, Credit, Trade) Page

25. Page Fears of an emerging market crisis…..