This article discusses income inequality in China and its impact. It notes that the rural-urban income gap reached its widest point in 2009 according to government statistics. Only China has experienced such unequal growth between rich and poor compared to other developing countries. This is due to cultural and legislative restrictions. Over 230 million people work as migrant workers outside their registered home areas due to low rural incomes. However, China's hukou system restricts these migrants' rights and entitlements. While migrant wages are higher than in rural areas, they are still less than half of urban workers' incomes. Officials estimate 150 million people remain below the poverty line, and inequality poses a challenge for the Communist Party going forward.
Problems and Prospects of Woman Entrepreneurship – A Review of LiteratureIOSRJBM
Any nation, to grow today in the world of intense competition, requires entrepreneurs at the core of the economic development. Entrepreneurial activities and entrepreneurship has been dominated by males since ages. However, in the era of information technology, the women have become more aware and better educational facilities have enabled them to venture into this male dominated space. The women today have emerged as a key player in economic development of the nations. However this transformation of society is far from over and the women entrepreneurs not only face difficulties while starting up an enterprise but also during the running phase. Globally, they have become a key player in sustaining both social development and economic growth. However, in a country like India where almost 50% of population is made up of women, the number of enterprises run by women entrepreneurs is only 7.36% or out of 361.76 Lakh enterprises in the MSME sector, only 26.61 Lakh have women at the top. There are a number of socio-economic hurdles faced by the women while they attempt to venture into setting up and running their own enterprises. Hence, the paper discusses the status of the Women Entrepreneurs and their importance. Also, an attempt is made to identify the challenges faced by these women entrepreneurs, by reviewing various literatures and provide some suggestion for overcoming these obstacles
Micro, small, and medium enterprises (MSMEs) and business startups play an important role in assisting the growth of the social economy. The social economy aims to pursue both economic and social goals by creating jobs and opportunities for unemployed or unqualified individuals. MSMEs have significantly contributed to employment across most world regions, according to the data. In Indonesia specifically, UMKM businesses (similar to MSMEs) have created over 57 million jobs. Examples of startups contributing to social goals include Garda Pangan in Indonesia, which collects leftover food to donate to those in need, and the Laughing Man Foundation, which funds education programs with 100% of profits.
Self help groups as a ‘livelihood development’ for rural women-experiences fr...Alexander Decker
This document discusses self-help groups (SHGs) as a tool for promoting rural women's livelihoods in India and Ghana. It notes that poverty disproportionately impacts women in developing countries like India and Ghana. SHGs aim to empower women economically, politically, and socially by providing access to credit, resources, and social support networks. The document reviews the operational strengths and weaknesses of SHGs in India and Ghana, and their impact on improving poor women's livelihood outcomes. It concludes that SHGs have significantly contributed to poverty reduction by enabling women's socioeconomic transformation and sustainable livelihood promotion.
Women’s Economic Empowerment Network A Practitioner’s GuideDr Lendy Spires
This document provides a summary of issues related to women's economic empowerment globally and in the United States. It discusses barriers women face in attaining economic potential in both developing and developed nations. These barriers include lack of access to education, credit, and difficulties balancing family responsibilities with work. The document also outlines business cases for why companies should engage in promoting women's economic empowerment, such as expanding the talent pool and enabling greater economic growth. Major areas of focus are highlighted, including poverty, education access, financial literacy, and credit access.
A conceptual study of social entrepreneurshipdeshwal852
This document summarizes a research article on social entrepreneurship. It defines social entrepreneurship as entrepreneurial activity with an embedded social purpose, focusing on addressing societal problems and creating social value rather than profit. The document discusses how social entrepreneurship differs from corporate social responsibility by existing to directly help those in need. It also examines some of the ethics around social entrepreneurship, how it can be practiced by for-profit organizations, and the importance of developing young social entrepreneurs to solve social issues.
Understanding the youth for embracing rural entrepreneurship as a careerdeshwal852
This document discusses rural entrepreneurship and its importance for economic development. It presents results from a study of 240 students (120 male, 120 female) exploring their views on rural entrepreneurship as a career. The key findings are:
1) There was no significant difference between urban and rural male students in their preference for rural entrepreneurship as a career.
2) There was a significant difference between urban and rural female students, with rural females less likely to view rural entrepreneurship as a career choice.
3) Rural entrepreneurship can contribute to economic development through job creation, increased income, balanced regional growth, and utilizing local resources.
Role of cooperatives in rural development, the case of.j.sjbm.20150304.12kemal1983
For small land-holding, developing and agricultural based economic countries like Ethiopia, cooperative type of
business is recommended as a solution to promote income distribution, reduce poverty and vulnerability, and improve quality of life and social welfare.
The document discusses women entrepreneurship in India. It notes that while women make up 50% of the population, traditionally they have been confined to household activities. However, modern society has allowed women to participate in all areas of life, including entrepreneurship. In India, 14.1% of entrepreneurs are women. The government defines a women entrepreneur as having a minimum 51% financial interest and employment of their business. However, growth of women entrepreneurship in Kerala has been slow due to unfavorable family backgrounds, lack of business education, and dual roles of women. Common problems women entrepreneurs face include lack of financing, raw materials, marketing facilities, and family responsibilities.
Problems and Prospects of Woman Entrepreneurship – A Review of LiteratureIOSRJBM
Any nation, to grow today in the world of intense competition, requires entrepreneurs at the core of the economic development. Entrepreneurial activities and entrepreneurship has been dominated by males since ages. However, in the era of information technology, the women have become more aware and better educational facilities have enabled them to venture into this male dominated space. The women today have emerged as a key player in economic development of the nations. However this transformation of society is far from over and the women entrepreneurs not only face difficulties while starting up an enterprise but also during the running phase. Globally, they have become a key player in sustaining both social development and economic growth. However, in a country like India where almost 50% of population is made up of women, the number of enterprises run by women entrepreneurs is only 7.36% or out of 361.76 Lakh enterprises in the MSME sector, only 26.61 Lakh have women at the top. There are a number of socio-economic hurdles faced by the women while they attempt to venture into setting up and running their own enterprises. Hence, the paper discusses the status of the Women Entrepreneurs and their importance. Also, an attempt is made to identify the challenges faced by these women entrepreneurs, by reviewing various literatures and provide some suggestion for overcoming these obstacles
Micro, small, and medium enterprises (MSMEs) and business startups play an important role in assisting the growth of the social economy. The social economy aims to pursue both economic and social goals by creating jobs and opportunities for unemployed or unqualified individuals. MSMEs have significantly contributed to employment across most world regions, according to the data. In Indonesia specifically, UMKM businesses (similar to MSMEs) have created over 57 million jobs. Examples of startups contributing to social goals include Garda Pangan in Indonesia, which collects leftover food to donate to those in need, and the Laughing Man Foundation, which funds education programs with 100% of profits.
Self help groups as a ‘livelihood development’ for rural women-experiences fr...Alexander Decker
This document discusses self-help groups (SHGs) as a tool for promoting rural women's livelihoods in India and Ghana. It notes that poverty disproportionately impacts women in developing countries like India and Ghana. SHGs aim to empower women economically, politically, and socially by providing access to credit, resources, and social support networks. The document reviews the operational strengths and weaknesses of SHGs in India and Ghana, and their impact on improving poor women's livelihood outcomes. It concludes that SHGs have significantly contributed to poverty reduction by enabling women's socioeconomic transformation and sustainable livelihood promotion.
Women’s Economic Empowerment Network A Practitioner’s GuideDr Lendy Spires
This document provides a summary of issues related to women's economic empowerment globally and in the United States. It discusses barriers women face in attaining economic potential in both developing and developed nations. These barriers include lack of access to education, credit, and difficulties balancing family responsibilities with work. The document also outlines business cases for why companies should engage in promoting women's economic empowerment, such as expanding the talent pool and enabling greater economic growth. Major areas of focus are highlighted, including poverty, education access, financial literacy, and credit access.
A conceptual study of social entrepreneurshipdeshwal852
This document summarizes a research article on social entrepreneurship. It defines social entrepreneurship as entrepreneurial activity with an embedded social purpose, focusing on addressing societal problems and creating social value rather than profit. The document discusses how social entrepreneurship differs from corporate social responsibility by existing to directly help those in need. It also examines some of the ethics around social entrepreneurship, how it can be practiced by for-profit organizations, and the importance of developing young social entrepreneurs to solve social issues.
Understanding the youth for embracing rural entrepreneurship as a careerdeshwal852
This document discusses rural entrepreneurship and its importance for economic development. It presents results from a study of 240 students (120 male, 120 female) exploring their views on rural entrepreneurship as a career. The key findings are:
1) There was no significant difference between urban and rural male students in their preference for rural entrepreneurship as a career.
2) There was a significant difference between urban and rural female students, with rural females less likely to view rural entrepreneurship as a career choice.
3) Rural entrepreneurship can contribute to economic development through job creation, increased income, balanced regional growth, and utilizing local resources.
Role of cooperatives in rural development, the case of.j.sjbm.20150304.12kemal1983
For small land-holding, developing and agricultural based economic countries like Ethiopia, cooperative type of
business is recommended as a solution to promote income distribution, reduce poverty and vulnerability, and improve quality of life and social welfare.
The document discusses women entrepreneurship in India. It notes that while women make up 50% of the population, traditionally they have been confined to household activities. However, modern society has allowed women to participate in all areas of life, including entrepreneurship. In India, 14.1% of entrepreneurs are women. The government defines a women entrepreneur as having a minimum 51% financial interest and employment of their business. However, growth of women entrepreneurship in Kerala has been slow due to unfavorable family backgrounds, lack of business education, and dual roles of women. Common problems women entrepreneurs face include lack of financing, raw materials, marketing facilities, and family responsibilities.
Analyzing Female Entrepreneurship in A Global Context- The Challenges And The...iosrjce
IOSR Journal of Humanities and Social Science is a double blind peer reviewed International Journal edited by International Organization of Scientific Research (IOSR).The Journal provides a common forum where all aspects of humanities and social sciences are presented. IOSR-JHSS publishes original papers, review papers, conceptual framework, analytical and simulation models, case studies, empirical research, technical notes etc.
Empirical stands of business succesion among african owned business africa 3John Johari
The document summarizes a research paper that analyzes barriers to the growth of small and medium-sized enterprises in Kenya. It discusses the concept of a "missing middle" in small business development and explores how some indigenous Kenyan companies have successfully grown into the medium size range despite challenges. The research involved case studies of four medium companies. It finds that business owners manage the hostile political environment through strategies like choosing markets carefully, maintaining low visibility, and developing a family culture. This suggests the issue is better described as an "invisible middle" rather than a missing one.
The document discusses the importance of ethics in capitalism. It provides examples of companies like Walmart, Starbucks, Microsoft, Nike and discusses both their positive and negative ethical practices. The conclusion emphasizes that companies ignoring ethics could harm people, the environment and local businesses, while focusing on ethics can improve company value by creating happier employees and customers.
This document discusses social entrepreneurship in India, particularly in the context of microfinance. It begins by defining social entrepreneurship and how social entrepreneurs differ from NGOs in aiming to create broad, long-term social change. It then profiles some prominent Indian social entrepreneurs working in various social sectors. The document also discusses the motivation for social entrepreneurship in India, citing examples like providing low-cost healthcare and energy access. However, it notes social entrepreneurs face challenges in India like a lack of clear metrics for success and unstandardized government processes for social enterprises. The document concludes by framing social entrepreneurship in the context of microfinance in India.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
This document discusses problems and prospects of rural women entrepreneurs in India. It finds that rural women entrepreneurs face many challenges including lack of financial assistance, inadequate subsidies, cumbersome loan procedures, unreliable power supply, and difficulties marketing products. Additionally, factors like lack of training, technical skills, and working capital constrain rural women's business growth. However, with effective support programs, rural women's entrepreneurship can boost employment, reduce poverty, and stimulate local economic development. The study recommends increased access to affordable loans, raw materials, training, and market support to expand opportunities for rural women entrepreneurs.
MSC presents some slides on the gender-focused analysis of data collected under the Corner Shop Diaries project. It throws light on differences between men-run and women-run enterprises, roles of social norms, and how to reimagine the way we examine women-run businesses.
This document discusses the issues with capitalism and proposes solidarity-based economy as an alternative. It provides examples of how solidarity-based practices have helped developing regions like Bosnia and Herzegovina. Specifically, it summarizes that capitalism has led to issues like inequality, poverty and environmental degradation when profit is the sole motive. However, solidarity-based models focus on cooperation and local development, empowering small communities through associations like a raspberry farmers' cooperative in Bosnia that generates income for thousands while investing back into the community. The document argues capitalism must integrate ethical values and support local development through community groups for economic systems to be truly sustainable and beneficial.
This document analyzes the impact of microfinance on rural households in northern villages in Uttar Pradesh, India. It studies whether microfinance facilitates rural development and poverty alleviation. The study surveyed 450 rural households. It finds that microfinance has significantly impacted economic, social, and political factors in the external environment. Access to microfinance has increased household incomes, savings, and income-generating activities. It has also improved decision-making power and reduced poverty. The study concludes that microfinance is an effective tool for empowering farmers and rural people, and plays a key role in rural development and poverty alleviation.
Role of entrepreneurship in EconomicDevelopmentAmit Gupta
This document compares the role of entrepreneurship in the economic growth of India and China. It finds that both countries have experienced rapid economic development since liberalizing their economies in 1978 (China) and 1991 (India). This growth has been closely linked to rising entrepreneurial activity, as evidenced by the Global Entrepreneurship Monitor. While political and historical factors have shaped entrepreneurship differently in each country, the ability of institutions to adapt to a changing global business environment will be important for continued growth. China has transitioned from a centralized to market economy since joining the WTO, while India's democracy has a long history of entrepreneurship in certain communities that is now spreading more broadly.
Microfinance aims to empower women through providing access to financial services. It focuses on women because they make up 70% of the world's poor and register higher repayment rates than men. Microfinance helps empower women by increasing their household income, providing opportunities for children, and allowing women to meet family needs without male assistance. Challenges include lack of capital and business knowledge. These are addressed through training programs and self-help groups that provide social and financial support. Successful examples like the Lijjat Papad women's cooperative demonstrate how microfinance can economically empower thousands of women.
Effect of micro finance on performance of women owned enterprisesfredrickaila
The document discusses a study on the effect of microfinance on the performance of women-owned enterprises in Kisumu City, Kenya. The study surveyed 341 women business owners who received microloans. The results showed that microfinancing had a positive effect on the productivity, profitability, and growth of the women-owned enterprises. Specifically, access to credit and training services through microfinance was found to increase business performance. However, the study also noted that the size of loans provided needed to be larger to have a more meaningful impact. Overall, the findings indicated that microfinancing can improve the success of women entrepreneurs when adequate financial and support services are provided.
This document summarizes a research paper that investigated the challenges facing women entrepreneurs in the Gauteng province of South Africa. The paper used qualitative research methods like interviews and focus groups. The main findings were that women entrepreneurs faced challenges related to lack of education and training, lack of access to finance, gender discrimination, negative attitudes, and inadequate resources. Recommendations were made to support women entrepreneurs and address these challenges.
Youth in agriculture: Entrepreneurial perspectiveAlok Sahoo
Youth in Agriculture : ARYA,, Entrepreneurial perspective in agriculture which can attract youth. Modernity with improved technologies which can attract youth..etc..
IRJET- Challenges Faced by Roadside Women EntrepreneursIRJET Journal
This document discusses the challenges faced by roadside women entrepreneurs in India. It notes that while women's entrepreneurship is growing in importance, roadside women entrepreneurs still face significant challenges, including lack of access to capital and financing due to lack of collateral, limited mobility and family responsibilities, and stiff competition. It provides statistics on the current status of women's entrepreneurship in India and outlines various government schemes aimed at supporting women entrepreneurs. However, it concludes that roadside women entrepreneurs still struggle with issues like low incomes from their small businesses due to undercapitalization.
Iran faces social, economic, environmental, and cultural challenges including high unemployment rates among educated youth. While the government supports charities, they have been ineffective at addressing issues due to lack of capacity. Social entrepreneurs want to deliver positive social impact but lack systematic support. A survey found about 50,000-75,000 active social entrepreneurs in Iran, with 20,000-25,000 engaged in initiatives, organizations, or startups. They are most active in areas like healthcare, education, economic inclusion, and environmental issues. However, the social entrepreneurship ecosystem in Iran needs further development, as there is no clear legal framework and more support is needed from the government, institutions, and financial platforms.
Oracle acquired Retek to combine their talents and deliver greater value to customers. The combined companies will offer greater scale and expertise to accelerate innovation for the retail industry. Oracle plans to communicate regularly with Retek customers throughout the integration process to provide timely updates on topics such as technology, support, services and user groups.
The document provides an overview of the daily activities and curriculum at a school. It is summarized as follows:
1) The school day begins with checking the weather and calendar activities. Students also engage in storytime, math games, and developing good listening habits.
2) Throughout the trimester, students work on different topics through stories, puzzles, art projects, and outdoor activities. Geometry, English, theater, and holiday celebrations are also part of the curriculum.
3) The school aims to teach in a collaborative way through hands-on projects and emphasizing creativity, cooperation, and environmental stewardship.
Silla is a platform that connects people to healthcare professionals by allowing patients to post recommendations for providers they received excellent service from. This helps other community members find recommended and trusted providers. Healthcare professionals can also build their reputation and brand through the positive recommendations. Users can create a personalized profile on Silla in three steps - by creating a familiar profile, personalizing their profile, and using personalized recommendation pads for patients. Both community members and healthcare professionals are encouraged to participate in building the online healthcare community on Silla's website.
Gratification of new media in marketing a productsaurav kishor
Saurav Kishor submitted a dissertation on "Gratification of new media while marketing a new product" to Manipal University, Bangalore Campus in partial fulfillment of the requirements for a Bachelor of Journalism and Mass Communication degree. The dissertation was approved by the guide and director as it satisfied the academic requirements. Saurav conducted original research and analysis under the guidance of Dr. Nandini Lakshmikanta on how social media can be used effectively to market new products.
Analyzing Female Entrepreneurship in A Global Context- The Challenges And The...iosrjce
IOSR Journal of Humanities and Social Science is a double blind peer reviewed International Journal edited by International Organization of Scientific Research (IOSR).The Journal provides a common forum where all aspects of humanities and social sciences are presented. IOSR-JHSS publishes original papers, review papers, conceptual framework, analytical and simulation models, case studies, empirical research, technical notes etc.
Empirical stands of business succesion among african owned business africa 3John Johari
The document summarizes a research paper that analyzes barriers to the growth of small and medium-sized enterprises in Kenya. It discusses the concept of a "missing middle" in small business development and explores how some indigenous Kenyan companies have successfully grown into the medium size range despite challenges. The research involved case studies of four medium companies. It finds that business owners manage the hostile political environment through strategies like choosing markets carefully, maintaining low visibility, and developing a family culture. This suggests the issue is better described as an "invisible middle" rather than a missing one.
The document discusses the importance of ethics in capitalism. It provides examples of companies like Walmart, Starbucks, Microsoft, Nike and discusses both their positive and negative ethical practices. The conclusion emphasizes that companies ignoring ethics could harm people, the environment and local businesses, while focusing on ethics can improve company value by creating happier employees and customers.
This document discusses social entrepreneurship in India, particularly in the context of microfinance. It begins by defining social entrepreneurship and how social entrepreneurs differ from NGOs in aiming to create broad, long-term social change. It then profiles some prominent Indian social entrepreneurs working in various social sectors. The document also discusses the motivation for social entrepreneurship in India, citing examples like providing low-cost healthcare and energy access. However, it notes social entrepreneurs face challenges in India like a lack of clear metrics for success and unstandardized government processes for social enterprises. The document concludes by framing social entrepreneurship in the context of microfinance in India.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
This document discusses problems and prospects of rural women entrepreneurs in India. It finds that rural women entrepreneurs face many challenges including lack of financial assistance, inadequate subsidies, cumbersome loan procedures, unreliable power supply, and difficulties marketing products. Additionally, factors like lack of training, technical skills, and working capital constrain rural women's business growth. However, with effective support programs, rural women's entrepreneurship can boost employment, reduce poverty, and stimulate local economic development. The study recommends increased access to affordable loans, raw materials, training, and market support to expand opportunities for rural women entrepreneurs.
MSC presents some slides on the gender-focused analysis of data collected under the Corner Shop Diaries project. It throws light on differences between men-run and women-run enterprises, roles of social norms, and how to reimagine the way we examine women-run businesses.
This document discusses the issues with capitalism and proposes solidarity-based economy as an alternative. It provides examples of how solidarity-based practices have helped developing regions like Bosnia and Herzegovina. Specifically, it summarizes that capitalism has led to issues like inequality, poverty and environmental degradation when profit is the sole motive. However, solidarity-based models focus on cooperation and local development, empowering small communities through associations like a raspberry farmers' cooperative in Bosnia that generates income for thousands while investing back into the community. The document argues capitalism must integrate ethical values and support local development through community groups for economic systems to be truly sustainable and beneficial.
This document analyzes the impact of microfinance on rural households in northern villages in Uttar Pradesh, India. It studies whether microfinance facilitates rural development and poverty alleviation. The study surveyed 450 rural households. It finds that microfinance has significantly impacted economic, social, and political factors in the external environment. Access to microfinance has increased household incomes, savings, and income-generating activities. It has also improved decision-making power and reduced poverty. The study concludes that microfinance is an effective tool for empowering farmers and rural people, and plays a key role in rural development and poverty alleviation.
Role of entrepreneurship in EconomicDevelopmentAmit Gupta
This document compares the role of entrepreneurship in the economic growth of India and China. It finds that both countries have experienced rapid economic development since liberalizing their economies in 1978 (China) and 1991 (India). This growth has been closely linked to rising entrepreneurial activity, as evidenced by the Global Entrepreneurship Monitor. While political and historical factors have shaped entrepreneurship differently in each country, the ability of institutions to adapt to a changing global business environment will be important for continued growth. China has transitioned from a centralized to market economy since joining the WTO, while India's democracy has a long history of entrepreneurship in certain communities that is now spreading more broadly.
Microfinance aims to empower women through providing access to financial services. It focuses on women because they make up 70% of the world's poor and register higher repayment rates than men. Microfinance helps empower women by increasing their household income, providing opportunities for children, and allowing women to meet family needs without male assistance. Challenges include lack of capital and business knowledge. These are addressed through training programs and self-help groups that provide social and financial support. Successful examples like the Lijjat Papad women's cooperative demonstrate how microfinance can economically empower thousands of women.
Effect of micro finance on performance of women owned enterprisesfredrickaila
The document discusses a study on the effect of microfinance on the performance of women-owned enterprises in Kisumu City, Kenya. The study surveyed 341 women business owners who received microloans. The results showed that microfinancing had a positive effect on the productivity, profitability, and growth of the women-owned enterprises. Specifically, access to credit and training services through microfinance was found to increase business performance. However, the study also noted that the size of loans provided needed to be larger to have a more meaningful impact. Overall, the findings indicated that microfinancing can improve the success of women entrepreneurs when adequate financial and support services are provided.
This document summarizes a research paper that investigated the challenges facing women entrepreneurs in the Gauteng province of South Africa. The paper used qualitative research methods like interviews and focus groups. The main findings were that women entrepreneurs faced challenges related to lack of education and training, lack of access to finance, gender discrimination, negative attitudes, and inadequate resources. Recommendations were made to support women entrepreneurs and address these challenges.
Youth in agriculture: Entrepreneurial perspectiveAlok Sahoo
Youth in Agriculture : ARYA,, Entrepreneurial perspective in agriculture which can attract youth. Modernity with improved technologies which can attract youth..etc..
IRJET- Challenges Faced by Roadside Women EntrepreneursIRJET Journal
This document discusses the challenges faced by roadside women entrepreneurs in India. It notes that while women's entrepreneurship is growing in importance, roadside women entrepreneurs still face significant challenges, including lack of access to capital and financing due to lack of collateral, limited mobility and family responsibilities, and stiff competition. It provides statistics on the current status of women's entrepreneurship in India and outlines various government schemes aimed at supporting women entrepreneurs. However, it concludes that roadside women entrepreneurs still struggle with issues like low incomes from their small businesses due to undercapitalization.
Iran faces social, economic, environmental, and cultural challenges including high unemployment rates among educated youth. While the government supports charities, they have been ineffective at addressing issues due to lack of capacity. Social entrepreneurs want to deliver positive social impact but lack systematic support. A survey found about 50,000-75,000 active social entrepreneurs in Iran, with 20,000-25,000 engaged in initiatives, organizations, or startups. They are most active in areas like healthcare, education, economic inclusion, and environmental issues. However, the social entrepreneurship ecosystem in Iran needs further development, as there is no clear legal framework and more support is needed from the government, institutions, and financial platforms.
Oracle acquired Retek to combine their talents and deliver greater value to customers. The combined companies will offer greater scale and expertise to accelerate innovation for the retail industry. Oracle plans to communicate regularly with Retek customers throughout the integration process to provide timely updates on topics such as technology, support, services and user groups.
The document provides an overview of the daily activities and curriculum at a school. It is summarized as follows:
1) The school day begins with checking the weather and calendar activities. Students also engage in storytime, math games, and developing good listening habits.
2) Throughout the trimester, students work on different topics through stories, puzzles, art projects, and outdoor activities. Geometry, English, theater, and holiday celebrations are also part of the curriculum.
3) The school aims to teach in a collaborative way through hands-on projects and emphasizing creativity, cooperation, and environmental stewardship.
Silla is a platform that connects people to healthcare professionals by allowing patients to post recommendations for providers they received excellent service from. This helps other community members find recommended and trusted providers. Healthcare professionals can also build their reputation and brand through the positive recommendations. Users can create a personalized profile on Silla in three steps - by creating a familiar profile, personalizing their profile, and using personalized recommendation pads for patients. Both community members and healthcare professionals are encouraged to participate in building the online healthcare community on Silla's website.
Gratification of new media in marketing a productsaurav kishor
Saurav Kishor submitted a dissertation on "Gratification of new media while marketing a new product" to Manipal University, Bangalore Campus in partial fulfillment of the requirements for a Bachelor of Journalism and Mass Communication degree. The dissertation was approved by the guide and director as it satisfied the academic requirements. Saurav conducted original research and analysis under the guidance of Dr. Nandini Lakshmikanta on how social media can be used effectively to market new products.
This document discusses enjoying painting with different materials like ceres, watercolors, paintings, and making pastels. It also mentions plastic language.
Padrins i padrines is a Catalan language document. It discusses the roles and responsibilities of godparents in Catholic traditions, such as supporting the religious education and upbringing of their godchild. Godparents agree to take responsibility for their godchild if anything were to happen to the parents, such as an illness or death.
The document discusses various concepts related to entities in Drupal 7 including:
1) Declaring an entity using hook_entity_info() and specifying the controller class.
2) Implementing hook_schema() to define the entity's database table.
3) Additional functionality provided by the Entity API module including entity properties and wrappers.
4) Using the entity class and controller for common operations like loading and saving entities.
5) Performing queries on entity fields using the EntityFieldQuery class.
This article discusses structural reforms needed in China to address challenges from its changing demographics. The One Child Policy has led to an aging population and fewer young workers. This is exacerbated by a lack of social welfare programs. The article argues China needs to reform its social security system, healthcare system, and raise the retirement age to deal with these issues impacting its economic growth. Reforms are urgently needed to sustain China's rise.
India has a long and diverse cultural history influenced by religions like Hinduism, Buddhism, Jainism, and Sikhism. Traditional Indian culture is characterized by regional variations in languages, customs, and performing arts like dance and music. However, mass media has impacted modern Indian culture by changing attitudes towards dress, family structure, and the caste system. While festivals and cuisine still vary by religion, television and cinema have replaced traditional village theater and dance as the dominant forms of entertainment and communication.
Out-of-home (OOH) advertising includes any advertising that reaches people when they are outside their homes, such as on buildings, public transport, or in taxis. There are two main types of OOH advertising: traditional/digital OOH, which includes digital screens and billboards; and non-traditional/non-digital OOH, which includes advertising on street furniture, urban spaces, transit shelters, stores, and malls. OOH advertising is effective because it reaches consumers in public spaces where they have less control over the advertising messages. It is also a cost-effective advertising option compared to other media. Measurement of OOH advertising effectiveness is improving to help brands justify advertising spending in this medium.
This presentation is based on the historical research phenomenon as How History as a science. Here i am compared History with the scientific methodology.
Supports the information hierarchy by animation transitionNaoya Shiga
This document summarizes a presentation about animating table views in Swift. It introduces the speaker and their app, then discusses hierarchical timing of animations according to importance. It demonstrates two animation techniques - spring and fade in - when cells are added to a table view using transforms and opacity. Reference sources and the GitHub repository are provided.
This document provides a marketing plan for "Asteria", a casual dining lounge and cafe bar in Jaipur, India. It begins with an acknowledgment of those who helped in creating the plan. The plan then includes an executive summary, introduction to the food and beverage industry in India, analysis of the competitive environment, overview of Asteria as an organization, description of the target market, review of products and competitors, discussion of distribution and marketing strategies, recommendations around positioning, pricing, and communication. It concludes with budgets for advertising and plans for implementation and control.
The document provides an analysis of entering the Chinese market for The Honest Company, an American brand known for natural baby and household products. It examines the company's current strategy, the Chinese situational context, and develops a market entry strategy. Key points include:
- China represents an opportunity for growth given its large middle class and demand for environmentally friendly products.
- The cultural, economic, social and technological landscape in China is different than the US and must be understood.
- A market entry strategy is proposed focusing on key online and retail channels as well as adapting the marketing mix (product, price, place, promotion).
Role of Self Help Groups in Rural Development-A Studyijtsrd
Rural development is a very dynamic process which includes in improving the socio-economic, political, environmental, and well-being of the poor people living in rural areas. In India more than 70 percent people living in rural areas, the concept of rural development assume great significance. The Molakalmuru taluk is one of the most backward taluk in Chitradurga district these areas have been facing so many problems like unemployment, poverty, lack of skills, illiteracy, and basic infrastructure health care common trend here. The present study is focused on the Socio-Economic status of Self-Help Group on rural development, and to study impact of Self-Help Group on rural development in Molakalmuru taluk. The present paper it is based on primary and secondary sources of information. Nagesha B | Ajeya G"Role of Self Help Groups in Rural Development-A Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-4 , June 2018, URL: http://www.ijtsrd.com/papers/ijtsrd14329.pdf http://www.ijtsrd.com/economics/development-economics/14329/role-of-self-help-groups-in-rural-development-a-study/nagesha-b
Chinese social entrepreneurship is driven by several factors:
- Economic and social issues like income inequality, urban-rural divide, and 128 million people in poverty provide opportunities for social enterprises to create impact.
- Funding challenges for NGOs have led some to pursue commercial strategies like social enterprises to achieve self-sustainability.
- A more socially-conscious Chinese society, influenced by events like the 2008 Sichuan earthquake and the rise of social media, is driving social awareness and expression.
- Social entrepreneurs address social needs that the government cannot fully meet as China undergoes economic and social transformations.
Growing Power is a nonprofit organization that aims to improve access to healthy foods. It operates urban farms and provides training to communities. While Growing Power has made a positive impact, its public relations strategy could be improved. Specifically, it lacks short video content and a strong social media presence, which prevents it from engaging younger audiences. It also has not aggressively pursued influencers or grants. However, opportunities exist to promote the organization through events, hashtags, and sharing success stories online. The primary goal is to increase awareness of Growing Power on a larger scale and among youth.
This document discusses increasing employment of youth in India. It notes that India will have 800 million working people by 2016 posing challenges to provide education and jobs. Over 58% of India's population is under 24 years old. Unemployment causes social and economic problems. The document outlines factors contributing to youth unemployment like socio-cultural inhibitions, economic conditions, lack of industry support, inadequate financing and education. It proposes measures to address unemployment such as rural development programs, employment exchanges, guarantee schemes, developing small industries, training programs, and encouraging self-employment and social services. Increased youth employment can financially and economically develop India by reducing poverty, increasing literacy and allowing the government to provide more resources and facilities.
This document provides a summary of issues related to women's economic empowerment globally and in the United States. It discusses barriers women face in attaining economic potential in both developing and developed nations. These barriers include lack of access to education, credit, and difficulties balancing family responsibilities with work. The document also outlines business cases for why companies should engage in promoting women's economic empowerment, such as expanding the talent pool and enabling greater economic growth. Major problem areas are identified as poverty, education access, financial literacy, and credit access.
India Leadership Conclave & Indian Affairs Business Leadership Awards organized by Network7 Media Group’s Indian Affairs is Asia’s most eagerly awaited leadership event where the platform has established a credible platform of serious discussion where Brand India’s most illustrious Leaders & icons assemble to discuss the roadmap for India’s growth trajectory. The last three Annual Affairs at the India Leadership Conclave Platform, we have witnessed some of the biggest think-tanks of the contemporary leaders in society from social to political & from business to cultural has addressed, deliberated & opened up the new mantras of developments. While more than 300 Leaders of Indian mainstream polity have spoken, the platform has recognized & honoured more than top 500 Leaders & Enterprises over the last four annual editions. Indian Affairs Business Leadership Awards 2013 are set of prestigious awards developed by the eminent Juries & bestowed to the deserving Leaders & Enterprises after a through screening of their landmark achievements for their significant accomplishments in their own fields who have performed under tough conditions imbibing innovation in their business approach.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
This thesis examines whether microfinance is an effective poverty alleviation tool for women in Ghana's informal sector. The document provides background on theories of poverty and development, poverty alleviation strategies used in developing countries including structural adjustment programs and poverty reduction strategy papers. It presents an overview of Ghana's development policies from the 1980s-2000s, including the impacts of structural adjustment and Ghana's poverty reduction strategies. It also provides context on microfinance in Ghana, challenges in the sector, and examines Sinapi Aba Trust, a microfinance institution, as a case study. The thesis suggests microfinance has had limited success in alleviating poverty, as clients have progressed to a modest form of poverty but not been lifted out, and microfinance
2015 September Tools for Change CGI NewsletterDr. Chris Stout
The newsletter provides updates on awards, tools, reports, and opportunities from the Center for Global Initiatives (CGI). CGI received a Top-Rated Award from GreatNonprofits for the fourth year in a row. The newsletter also highlights recent blog posts from the Global Health Policy Center, news of restrictive NGO laws passed in Cambodia, and the work of the Center for Global Health at the University of Illinois. Additionally, it provides information on funding opportunities such as the Lipman Family Prize and Forbes Under 30 $1M Change the World Competition.
This document is a term paper submitted by a student for their BSC degree in economics. It includes information identifying the student such as their name, roll number, and department. The paper analyzes trends in economic growth, inequality, and poverty across Indian states since the early 1990s. It seeks to address questions related to defining poverty lines in India, measuring poverty accurately, the next steps in poverty reduction, the impact of economic reforms on regional inequality, and the relationship between growth and inequality reduction. The paper includes an abstract, introduction discussing key concepts, objectives, a literature review, methodology, data analysis, and conclusions.
This paper proposes using future foreign aid to India to empower women. It provides background on foreign aid and economic development, and discusses how past foreign aid to India focused on agriculture but did not significantly help the economy. It argues that empowering women could further economic growth and lower population growth. The paper is divided into sections on foreign aid and development, past foreign aid and its impacts in India, and a proposed solution to empower women through carefully implemented foreign aid.
Aura Supports a Global Push for Financial Gender Equality with The Jeeranont & United Nation.
#womanempowerment,#unwoman,#aurawoman,#thejeeranontwoman,#womanthejeeranont,#ornusa,#ornusajeeranont,
Report : https://www.aurasolutioncompanylimited.com/…/aura-supports-…
Learn more : https://www.thejeeranont.com/culture-society
The document is a report on the 2014 World Giving Index, which analyzes charitable giving behaviors around the world. Some key findings:
- The United States and Myanmar share the top spot in the Index, with the US scoring highest across all three behaviors and Myanmar driven by high donations related to Buddhist traditions.
- Giving behaviors are impacted by events like natural disasters, as seen by Malaysia's rise in rankings after helping neighbors affected by a typhoon.
- Helping strangers continues to be the behavior growing most worldwide, especially in developing countries, highlighting personal interactions in philanthropy.
- Youth unemployment may be impacting declines in donating money globally, though women donate more than men
Policy in Focus 15 2018 Furthering Womens empowerment through force particip...BibliotecaAlfonso
This document summarizes an article that discusses women's economic empowerment through participation in business and the labor force. It finds that while women's labor participation has increased globally, they remain underrepresented in well-paid, secure employment and face significant wage gaps. Barriers include unequal distribution of unpaid domestic work and care responsibilities. The article outlines policies that could help address these gaps, such as legislation to promote gender equality in the workplace, skills training programs tailored to market demands, voluntary regulation of global supply chains, social protection programs, and policies to promote more equal sharing of unpaid domestic work.
This document summarizes several issues relating to Southern Africa from an economic and development perspective. It discusses poverty and philanthropy in South Africa, noting that South Africa has some of the most generous wealthy donors in the world. It also addresses challenges around youth unemployment and the need for both government and businesses to work together to address this issue. Specifically, it highlights a program called Harambee that places unemployed youth in jobs. Additionally, the document examines policy challenges around spaza shops, which are informal retail stores that play an important economic role but face competition from foreign-owned shops.
#TimeToCare (India Supplement) | Oxfam IndiaOxfam India
With growing inequality, it has become pertinent to address the ever-growing gap between the rich and the poor. Over the last decade, academics, policymakers and multilateral institutions have been striving to draw attention to the growing importance of the subject of shared prosperity. https://www.oxfamindia.org/workingpaper/timetocare-india-supplement
Poverty traps exist in developing countries where people lack the means to invest in improving their situation or escaping poverty. Foreign aid and government programs aim to help the poor, but some argue this can reduce incentives for self-improvement. Experiments show conditional cash transfers that provide money for health and education can help eradicate poverty long-term by investing in human capital. Improving institutions, education, and addressing corruption are also important for reducing poverty traps.
“Gender inequality is an important aspect which deserves special attention. Women and girls represent half the population, and our society has not been fair to this half. Their socio-economic status is improving, but gaps persist….The emergence of women in public spaces, which is an absolutely essential part of social emancipation, is accompanied by growing threats to their safety and security…… the issue of safety and security of women is of the highest concern to our Government. There can be no meaningful development without the active participation of half the population and this participation simply cannot take place if their security is not assured”.
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Final ank Satta Matka Dpbos Final ank Satta Matta Matka 143 Kalyan Matka Guessing Final Matka Final ank Today Matka 420 Satta Batta Satta 143 Kalyan Chart Main Bazar Chart vip Matka Guessing Dpboss 143 Guessing Kalyan night
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
Starting a business is like embarking on an unpredictable adventure. It’s a journey filled with highs and lows, victories and defeats. But what if I told you that those setbacks and failures could be the very stepping stones that lead you to fortune? Let’s explore how resilience, adaptability, and strategic thinking can transform adversity into opportunity.
Call8328958814 satta matka Kalyan result satta guessing➑➌➋➑➒➎➑➑➊➍
Satta Matka Kalyan Main Mumbai Fastest Results
Satta Matka ❋ Sattamatka ❋ New Mumbai Ratan Satta Matka ❋ Fast Matka ❋ Milan Market ❋ Kalyan Matka Results ❋ Satta Game ❋ Matka Game ❋ Satta Matka ❋ Kalyan Satta Matka ❋ Mumbai Main ❋ Online Matka Results ❋ Satta Matka Tips ❋ Milan Chart ❋ Satta Matka Boss❋ New Star Day ❋ Satta King ❋ Live Satta Matka Results ❋ Satta Matka Company ❋ Indian Matka ❋ Satta Matka 143❋ Kalyan Night Matka..
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
Profiles of Iconic Fashion Personalities.pdfTTop Threads
The fashion industry is dynamic and ever-changing, continuously sculpted by trailblazing visionaries who challenge norms and redefine beauty. This document delves into the profiles of some of the most iconic fashion personalities whose impact has left a lasting impression on the industry. From timeless designers to modern-day influencers, each individual has uniquely woven their thread into the rich fabric of fashion history, contributing to its ongoing evolution.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Garments ERP Software in Bangladesh _ Pridesys IT Ltd.pdfPridesys IT Ltd.
Pridesys Garments ERP is one of the leading ERP solution provider, especially for Garments industries which is integrated with
different modules that cover all the aspects of your Garments Business. This solution supports multi-currency and multi-location
based operations. It aims at keeping track of all the activities including receiving an order from buyer, costing of order, resource
planning, procurement of raw materials, production management, inventory management, import-export process, order
reconciliation process etc. It’s also integrated with other modules of Pridesys ERP including finance, accounts, HR, supply-chain etc.
With this automated solution you can easily track your business activities and entire operations of your garments manufacturing
proces
The Genesis of BriansClub.cm Famous Dark WEb PlatformSabaaSudozai
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
HR search is critical to a company's success because it ensures the correct people are in place. HR search integrates workforce capabilities with company goals by painstakingly identifying, screening, and employing qualified candidates, supporting innovation, productivity, and growth. Efficient talent acquisition improves teamwork while encouraging collaboration. Also, it reduces turnover, saves money, and ensures consistency. Furthermore, HR search discovers and develops leadership potential, resulting in a strong pipeline of future leaders. Finally, this strategic approach to recruitment enables businesses to respond to market changes, beat competitors, and achieve long-term success.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
2. 2 Business Asia
THE BAJ TEAM
EXECUTIVE BOARD
President
Editor-in-Chief
Director of Design
Director of Marketing
Director of Finance
Stella Zhang
Zhi-Yen Low
Yanbin Feng
Leo Ding
Madeline Culkin
DESIGN ASSOCIATES
An-Chi Dai
Arthur Teng
Hanyu Zhang
EDITORIAL
Yiwei Chen
Saloni Gupta
Kevin Hua
Chris Huh
Shuang Jia
Ajay Kailas
Jihoon Lim
Timothy Lin
University of Indonesia Maria Marcia
Advai Pathak
Jingyi Wang
Jiting Wang
Mengtian Wu
CONTACT US:
BusinessAsia.Journal@gmail.com
www.cubusinessasia.com
MARKETING ASSOCIATES
Chloe Tao
Yuan Xia
Spandana Govindgari
3. Spring 2013 3
EDITOR’S LETTER
I
nternational politics in Asia has been a dangerous mix of tension
and conflict this year, with events in Northeast Asia taking center
stage. In our previous issue, we welcomed new leaders into the
fray as Xi Jinping took up the reigns of China’s leadership and Obama
began his second term as President. The eighth issue of the Business
Asia Journal takes a deeper look into our leaders’ reforms and
policies as they carefully navigate the fraying threads of international
cooperation.
Our writers tackle the current political climate in Asia amidst
strained relationships between China, North Korea, and Japan as well
as its possible global repercussions. Korea’s newly elected President
Park Geun-Hye, with her promises to increase national growth,
has to strike a balance between stabilizing Korea’s slowed economy,
implementing social and political reforms, while diplomatically
handling the country’s relations with its neighboring North. Reforms
in India are well underway, but rural poverty remains strife as 350
million people still live below the poverty line. As the pains of
dwindling growth begin to set in, India opens its doors to foreign
retailers to facilitate economic growth. In China, the rural poor
expectantly look to Xi Jinping to overcome the lingering massive
income disparity that threatens the population. Meanwhile, the more
affluent Chinese customer remains by far the world’s top spender on
luxury goods.
This issue would not have come to fruition without the sheer
dedication and hard work put in by the Editorial, Design, and
Marketing teams. I would like to express my sincere gratitude to
everyone involved in the production of this issue. On behalf of our
publication, a heartfelt thank you goes to our graduating president
Stella Zhang- our mentor, leader, and dear friend, whose support and
utmost dedication to the Business Asia Journal mission have made this
publication what it is today.
Finally, thank you to you, dear readers, for your continued support.
We value your opinion greatly and would like to hear your thoughts. If
you have any comments, suggestions, or interest in joining our team,
please contact us at BusinessAsia.Journal@gmail.com.
Zhi-Yen Low
Editor-in-Chief
Applied Economics and Management ‘14
We would like to
thank the following
sponsor for their
generous support:
5. Spring 2013 5
The BAJ Team
Editor’s Letter
The Limited Success of Anti-Poverty Public
Policy in India
by Saloni Gupta
Evaluating India’s reforms and policies and
their impacts on reducing poverty
China’s Great Economic Divide: How Does it
Impact its People?
by Kevin Hua
A study of China’s wide income disparity and
the impact on its people
The Dictator’s Daughter
by Chris Huh
President Park Geun-Hye promises economic
equality and opportunity for all
Tension in Asia
by Advai Pathak
Exploring the political forces between China,
Japan, and North Korea and striking
parallels with the Balkans in 1914
Brain Drain in Modern China
by Jihoon Lim
Migration of skilled professionals hampers
China’s global competitiveness
WeChat: The Wakening of Chinese
Innovation
by Jiting Wang
WeChat is revolutionizing Chinese
communication and paving the way for
technological innovation
Burgeoning Senior Living in China
by Yiwei Chen
Exploring the Chinese senior living industry as
a viable investment opportunity
A Peek into Islamic Banking
by Maria Marcia
A brief education on the nuances of Islamic
banking and its revolutionary potential
New Industries, the “Babies” Born by
China Air Pollution
by Jingyi Wang
Discovery and birth of new industries from
China’s hazy air
China: the Top Spender of Luxury Goods
by Shuang Jia
Growing demand for luxury goods by
Chinese consumers creates potential for
Chinese luxury brands
Retail on the Subcontinent
by Advai Pathak
India opens its doors to foreign retailers to
spur economic growth
Asia Drives International Student Growth
in United States
by Mengtian Wu
Asian countries a significant driver of
the international student boom in U.S.
education
India’s Image: From the Taj to Rape
by Ajay Kailas
A look into India’s dark, grimy side and its
resulting legislative changes
The Asian World of Real Estate Capital
by Timothy Lin
A conversation on real estate capital flows
with Robert White of Real Capital
Analytics
TABLE OF CONTENTS
Lifestyle
29
34
General Business
Political Economy
2
3
6
13
20
23
International Relations
Interview
9
16
26
32
38
40
42
44
6. 6 Business Asia
The Limited
Success of
Anti-Poverty
Public Policy
in India Saloni Gupta
Cornell University ‘15
College of Engineering
I
ndia’s per capita gross domestic product has doubled over the past decade to USD838
yet 350 million people live under 56c a day – the official poverty line. The country ranks
65th out of 79 countries on the Global Hunger Index according to a new report by the
International Food Policy Research Institute. 21% of all adults and 46% of all children under
the age of 5 were malnourished in 2005.
The Public Distribution System
The Indian government, real-
izing the urgent help required, in
1965 established the Food Corpo-
ration which has since become the
world’s largest public food distri-
bution system. Annually, $14 bil-
lion - almost 1% of the country’s
gross domestic product – is set
aside for this initiative which dis-
tributes subsidized food and fuel
through a host of small shops. In
2012, the Food Corporation was
requiredtostockpile32metrictons
of rice and wheat but managed to
accumulate twice that amount due
to bumper crops. Clearly there is
no lack of resources in this nation
and one may enquire further about
the dire statistics presented at the
start of this article. The problem
is that the distribution system is
severely inefficient. The World
Bank says that 59% of the grain
meant for the poor never reaches
them. It is sold by middlemen at
high prices for personal benefits or
just sits in warehouses and sheds
rotting. In addition, a majority of
the poor do not have the Below
Poverty Line ration cards required
for collection of subsidized goods
and 44% of the ration cards go
to the non-poor. Also, it has been
hard to understand the effective-
POLITICAL ECONOMY
7. Spring 2013 7
ness of such schemes due to the
lack of national surveys collecting
data about malnutrition. The Na-
tional Family Health Survey has
not been published since 2005.
The Direct Benefit Transfer
The public distribution sys-
tem’s lack of transparency and
tremendous waste have spurred
the government to take on a new,
highly ambitious initiative- the
Direct Benefit Transfer (DBT)
- which was launched on New
Year’s Day 2013. It began with
the transfer of funds to the bank
accounts of 245,000 people in 20
of the poorest districts and is ex-
pected to expand to benefit more
people soon. Unfortunately, such
a grand scheme comes at a great
expense especially when setting
up of millions of bank accounts.
Even before the bank accounts
can be created, the government
has to conduct retinal and finger-
print-scans of people and issue
them with unique 12-digit iden-
tity numbers. However, DBT is
a revolutionary step towards in-
creasing transparency in the long
opaque Indian food aid system. It
provides the additional benefit of
cheaper loans which bank account
holders are entitled to. Neverthe-
less, critics have labeled the move
as politically motivated to garner
the opposition’s share of votes.
The popular newsmagazine Out-
look India recently claimed in an
article that giving cash to “India’s
poor is all about power, politics
and winning elections.” Politi-
cally motivated or not, the pilot
program has been effective in im-
proving diet and prompting ration
shop owners to improve the qual-
ity of their grain to maintain their
customers.
The Mahatma Gandhi National
Rural Employment Guarantee
Act
Rural poverty is especially
difficult to combat in India. Cash
transfers alone are not strong
enough to reduce rural poverty
and have to be carried out together
with development in village-lev-
el infrastructure and changes in
social structures to make a dif-
ference. The caste system is still
prevalent in rural communities
and the Scheduled Castes and
Scheduled Tribes are often denied
opportunities. In addition, inse-
cure employment and low wages
8. 8 Business Asia
maintain poverty – there are 132
million rural casual laborers. In re-
sponse to this, the Indian govern-
ment adopted the Mahatma Gand-
hi National Rural Employment
Guarantee Act (MGNREGA).
Implemented in 2006, this
policy involves a universal
self-targeting guarantee of
100 days of employment to
every household in all rural
districts of India. It has been
very successful - generat-
ing 13.48b person-days in
work since 2006. It has also
brought about an increase in
income from Rs.65 per per-
son-day in 2006 to Rs.115
in 2011. However, the cre-
ation of employment has
been falling even though the
wages provided through this
program are higher than the
minimum wage. This has
been attributed to corrup-
tion and enormous amounts
of unspent funds in 2010-11
and 2011-12. Furthermore,
projects which were meant
to be completed using labor
from this scheme have not
been properly designed and im-
plemented.
The Chronic Poverty Research
Center
A paper by the Chronic Pov-
erty Research Center states that
130 million Indians live in chron-
ic poverty, or poverty that en-
dures for five or more years and
is passed on from generation to
generation. Casual labor, tack-
led by the MGNREGA, is a ma-
jor contributor to chronic pover-
ty in India. Other factors include
the zamindari or landlord system
and weak infrastructure. In addi-
tion, the lower social status given
to Scheduled Castes, Scheduled
Tribes and women makes it even
more difficult for these groups to
exit poverty. Scheduled Castes and
Scheduled Tribes are recognized
by the Constitution of India to be
historically disadvantaged. Also,
ill health and fewer income-earn-
ing opportunities form a vicious
cycle, trapping people in poverty.
The paper suggested that there are
some crucial steps that need to be
taken to alleviate poverty, but all
require long-term political com-
mitment. These include allowing
the poor to own land and provid-
ing them with finances to manage
this land, providing support to
those who migrate to the city so
that they can send money home,
and building village infrastruc-
ture. Urbanization of rural districts
can also increase opportunities for
many people. Other key beneficial
policies include making dry land
agriculture more viable as this is
prone to droughts, deforestation
and soil erosion and pro-
viding the chronically poor
reliable access to health-
care and food. Finally, the
National Old Age Pension
Scheme – which has hither-
to been unreliable, should be
strengthened to reduce pov-
erty among the elderly and
make them less vulnerable.
The opacity, waste and
disorganization present in
India’s public food distri-
bution system lead to the
development of the Direct
Benefit Transfer. While the
latter is an ambitious and
arguably political move with
many preliminary steps, so
far it has been promising.
In order to specifically tack-
le the most enduring form
of poverty – rural poverty,
the government implement-
ed the Mahatma Gandhi Nation-
al Rural Employment Guarantee
Act. While this flourished in the
beginning, myopic organization of
monetary funds and lack of prop-
er follow-through are causing the
scheme to fail in the long-term.
According to the Chronic Poverty
Research Center, in order to break
free from poverty, India needs
long-term political commitment
targeting specific contributing fac-
tors such as discrimination, casual
labor, the zamindari system and
weak infrastructure.
"A majority of the
poor do not have
the Below Poverty
Line ration cards
required for
collection of sub-
sidized goods and
44% of the ration
cards go to the non-
poor."
POLITICAL ECONOMY
9. Spring 2013 9
I
ncome inequality in China
has been a growing issue that
still remains unaddressed. Ac-
cording to the Chinese National
Bureau of Statistics, the rural-ur-
ban income gap reached its widest
point in 2009, despite explosive
growth of the economy since eco-
nomic reforms by Deng Xiaop-
ing in the late 1970s. To illustrate,
the income of urban households
stands at 17,175 RMB (2,760
USD) while that of rural house-
holds stands at 5,153 RMB (828
USD). The relative improvements
in total income of different social
classes between China and oth-
er second/third world countries
are compared over the course of
1990s-2010 in the following chart.
Only China has expe-
Kevin Hua, Cornell University ‘15, College of Engineering
China’s Great
Economic Divide:
How Does it Impact its People?
An urban village
in China
POLITICAL ECONOMY
10. 10 Business Asia
rienced an extremely unequal
growth trend between its poor and
rich, while in other countries the
poor and rich gain higher income
together. The main reason has to
do with China’s unique cultural
and legislative restrictions that will
be discussed. Furthermore, Chi-
na’s urban areas also face wage in-
equality between migrating work-
ers from the poor countryside and
middle to upper classes. In a 2009
survey conducted by the Econo-
my and Nation Weekly, a Chinese
magazine, 34 out of 50 leading
economists believe that income
inequality may be the most press-
ing issue faced by the Communist
Party in the next few decades.
Inequality is reciprocally
related to migration, whether on
a rural-urban scale or on a larger
international scale. Low incomes
of rural households force men
aged from teenage years and high-
er to move to cities in search of
work. These men, in addition to
fending for themselves in com-
pletely new environments, then
send money back home to support
their families. Of China’s 1.3 bil-
lion population, an estimated 230
million people are rural migrant
workers who work outside their
registered home areas. In this mi-
gration map, a general outflow of
population can be seen in poorer
and more rural provinces such as
Hubei, Shaanxi, and a net inflow
of people into metropolitan cit-
ies such as Beijing, Shanghai, and
GuangDong.
However, the Chinese reg-
istration system, Hukou, ties resi-
dential roots to citizens in China.
Hukou outlines their rights to en-
titlement in property, social se-
curity, retirement planning, and
even public services. For example,
in rural areas, hukou entitles farm-
ers to farmland, while in urban ar-
eas hukou grants workers to jobs,
housing, and public care such as
“Only China has experienced an
extremely unequal growth trend
between its poor and rich, while in
other countries the poor and rich gain
higher income together.”
POLITICAL ECONOMY
11. Spring 2013 11
primary and secondary education.
The lack of hukou for migrant
workers strips them of rights in
ownership of government hous-
ing, public education, and even
jobs. Despite these disadvantages,
there is one major incentive: in-
come gain. On average, in 2004 the
urban migrant earned 780 RMB
per month, which is over three
times higher than that of a rural
worker. However, this amount is
still less than half of the income of
an urban worker with hukou.
Overall, officials estimat-
ed that there are still 150 million
people under the poverty line in
China, which is 2300 RMB (USD
366). China has a yearly govern-
ment budget of 360 billion USD in
expenditures, but spends roughly
18% on education and health care,
and 2% of it on social welfare pro-
visions. The United States in com-
parison, with a 3.6 trillion yearly
expenditure, spends over 36% on
education, health care, and social
welfare. The lack of hukou strips
migrant workers that move into
large metropolitan cities, and their
children, from proper education
and necessary tools for their suc-
cess. Furthermore, lack of hukou
strips migrant workers in oth-
er opportunities such as barriers
to employment. Research shows
that children who move with their
“The lack of hukou for migrant workers
strips them of rights in ownership of
government housing, public education,
and even jobs.”
POLITICAL ECONOMY
12. 12 Business Asia
parents tend not to do as well as
others in terms of academics, and
may pay additional fees to enroll
in merely mediocre schools. The
number of migrant children from
ages 8 to 14 who lack primary edu-
cationandhavedifficultyaccessing
junior-senior high schools is esti-
mated to be 14-20 million, mostly
residing with one or two parent(s)
in metropolitan cities. Migrant
workers and their children with-
out hukou are unfortunately tied
to a poverty cycle because career
progression is difficult to achieve
without adequate education or
the necessary documentation, and
their children have a large barrier
in accessing higher education.
The Chinese government
has slowly but steadily been chang-
ing the hukou system; in 1997, mi-
grants who held stable jobs in cit-
ies were allowed to have a hukou,
and in 2008, the Ministry of Hu-
man Resources and Social Secu-
rity allowed portable pension for
migrant workers. The government
has also worked to raise minimum
wages for migrant workers and im-
prove the rural economy through
tax cuts and labor contract laws.
President Hu made an ambitious
goal to double per capita income
of 2010 levels for urban and rural
residents by 2020 through a plan
that would reform income distri-
bution. Hu has passed policies that
support investment infrastructure
and emphasize social welfare,
such as distributing government
related employment to more mi-
grant workers in 2006, as well
as increasing urban rural wages.
These efforts, however, have been
criticized as central planning and
supply-side command of the econ-
omy. Critics point out that the
benefits of explosive overall GDP
growth has not trickled down to
the poorest in society.
Furthermore, though Chi-
na tackles income inequality little
by little, it remains largely silent
on state corruption. A majority of
opposition to changing the hukou
system comprises of state officials
and wealthy groups that have pri-
vate-vested interests. For example,
land reforms that will consequen-
tially follow hukou reform strip
away power and land-taxes con-
trolled by wealthy groups in rural
areas. Fiscal expenditure and gov-
ernment are largely decentralized
in China, meaning that land sales
and unsustainable revenues have
ample room for local corruption,
which also fuels much of the re-
sistance to hukou reform. Preju-
dice towards these officials exists
largely among the working middle
class, who believe that govern-
ment official positions are sold to
the highest bidder, rather than be-
ing a meritocratic process. There
is truth to that belief in that many
corrupt practices in political cir-
cles exist, such as spending exces-
sive amounts on dinners and gifts
to be invited for a bureau director’s
position. Li Chengyan, a professor
at Beijing University, explained
that selling and buying of official
positions is simply a business ex-
change in the powerful political
circle, mainly trading money for
power.
Fortunately, China’s fifth
generation leader, Xi Jinping, has
a tough stance on corruption and
is very open towards economic re-
forms. Xi Jinping, who is groomed
to become the president after Hu,
grew up in a poor village where
he labored in the fields for years
when his father was purged. The
lower income and working class-
es hope that Xi’s rugged years as
a laborer have shaped him to be
capable of tackling China’s large
income disparity. Since becoming
head of China’s military, Xi has
cracked down on internal cor-
ruption and senior officials, while
openly accepting criticism of the
government. Influenced by his
communist revolutionary father,
Xi aims to become China’s new
leader, and in a rousing rhetoric
in 2012, proclaimed his vision of
a “China dream”. Xi’s main goal
is to strengthen the communist
party, whether it is weeding out
corruption or stabilizing the large
economic gap between classes.
Though his main goal of reform
is to keep the party in power, his
actions in the future are strongly
expected by analysts to narrow in-
come inequality.
“A majority of opposition to changing
the hukou system comprises of state
officials and wealthy groups that have
private-vested interests.”
POLITICAL ECONOMY
13. Spring 2013 13
The Dictator’s
Daughter
Chris Huh
Cornell University ‘15
College of Arts and Sciences
“Park Geun-hye’s decisions
in office will reveal whether
she will choose to address
the social and economic
problems plaguing her nation
or accede to the demands of
big businesses in the form of
South Korea’s reigning chae-
bols instead.”
international relations
14. 14 Business Asia
“Park vowed to handle diplo-
matic affairs with the North
Korean government cautious-
ly, while promoting recon-
ciliatory effects by issuing
humanitarian aid. Park’s
future handling of diplomatic
engagements with the highly
belligerent country will re-
quire both prudence and tact
to avoid a compromise of
South Korea’s security. ”
O
n February 25th, Saenuri
candidate Park Geun-hye
was sworn in as South
Korea’s first female president.
As the candidate for South Ko-
rea’s major conservative political
party, Park won the election held
in December 2012 after running
on a campaign promising nation-
al growth through economic de-
mocratization and job creation.
At a time when the South Korea’s
government is receiving much
criticism for its lack of support
for small businesses and welfare,
Park Geun-hye’s decisions in of-
fice will reveal whether she will
choose to address the social and
economic problems plaguing her
nation or accede to the demands
of big businesses in the form of
South Korea’s reigning chaebols
instead.
Backed by the majority of the
conservative party, Park seems to
have generated more discourse
due to her family’s history in pol-
itics as opposed to her own apti-
tude. Her late father, Park Chung-
hee, is largely credited with the
transformation of South Korea
from an impoverished nation into
a global powerhouse. Spanning
from 1962 to 1979, Park Chung-
hee’s dictatorship resulted in
the rapid growth of Korea’s ex-
port-oriented economy and the
formation of government-backed
conglomerates. Park Chung-hee’s
reputation is far from perfect,
however, as his leadership of the
country is tarnished by memories
of the brutal repression and abuse
of human rights which occurred
under his military rule.
Park Geun-hye’s father was
instrumental in the development
of the business conglomerates,
also known as chaebols, in Korea.
Composed of household names
such as Samsung, Hyundai, and
LG, the chaebol structure is wide-
ly responsible for the technologi-
cal and commercial successes of
South Korea. These conglomer-
ates dominate the manufacturing
industries in Korea, attracting the
best and brightest of talent while
producing the majority of the na-
tion’s gross domestic product. In
many cases, the control and own-
ership of a chaebol is retained
within the family. This nepotistic
tradition of transferring power
down from generation to genera-
tion within families could prove
fatal for the Korean economy if
a particular generation were to be
incompetent in its management
functions. The future of the Ko-
rean economy is threatened by the
lack of a dynamic entrepreneur-
ial system and weak small firms,
both consequences of the chaebol
system. Smaller businesses and
startups simply cannot compete
with the monopolistic power held
by these massive conglomerates.
Park has demonstrated support for
the existing chaebol-dominated
structure, but has also assured the
15. Spring 2013 15
public that she will fully support
the development of smaller firms.
If South Korea’s chaebols were
to fail, the lack of any other sub-
stantial source of business would
result in total devastation for the
economy.
During the election process,
Korean voters were strongly di-
vided in their attitudes towards
Park’s political experience and
personal background. The older
generation seemed to look favor-
ably upon her father’s legacy and
the level of economic and social
advancement he brought to the
nation. In contrast, the younger
mostly liberal base denounced
Park Chung-hee’s dictatorship and
called for both greater political
transparency and progressive ac-
tion towards improved standards
of welfare and economic equality.
Ironically, the decisions of many
elderly voters to elect Park Geun-
hye could backfire and lead to the
disappointment of senior citizens
as the Saenuri Party appears to
have already lost its interest in
funding the proposed social wel-
fare projects it promised through-
out the election. Park Geun-hye
and the Saenuri party appear to
have chosen the process of revi-
talizing the sluggish growth rate
of the economy as their foremost
priority.
Park’s many responsibilities
as president also include her stra-
tegic role in the tense relation-
ship between South Korea and its
northern counterpart. A few days
before she took office, a North
Korean underground nuclear test
was reported to have been detect-
ed, raising alarms regarding the
safety of the South Korean public
and causing further aggravation
for the already turbulent condition
of inter-Korean relations. In her
campaign, Park vowed to handle
diplomatic affairs with the North
Korean government cautiously,
while promoting reconciliatory ef-
fects by issuing humanitarian aid.
Park’s future handling of diplo-
matic engagements with the high-
ly belligerent country will require
both prudence and tact to avoid a
compromise of South Korea’s se-
curity.
Having been inaugurated,
Park now faces a hefty workload
comprised of stabilizing a slowed
economy, solving issues of social
and economic inequality, and re-
sponding to growing threats from
North Korea. Her decisions will
determine if South Korea will re-
main on its course as a structurally
instable country dominated by the
powerful few or if it will transform
into a more robust entity with eco-
nomic equality and opportunity
for all of its citizens.
international relations
16. 16 Business Asia
Tension
In Asia
“The ambitions of
China, Japan, and
North Korea are
coming into conflict
and leading to
increasingly strained
relations between
the three.
Advai Pathak
Cornell University ‘15
School of Industrial and Labor Relations
17. Spring 2013 17
I
nternational politics is a
Gordian knot – a dangerous
and swirling intermingling of
policy, emotion, and chance. Over
the past year, the events transpir-
ing in Northeast Asia have served
to underline this. China’s indus-
trial machine has powered forth,
for the most part unperturbed by
global stagnation, on its upward
trajectory. However, its neigh-
bours are undergoing change
that will have repercussions on
a global scale. The ambitions of
China, Japan, and North Korea are
coming into conflict and leading
to increasingly strained relations
between the three.
Thrust back into the forefront
of global security concerns after
its recent nuclear tests, North
Korea continues to willfully dis-
obey the conditions of the Six
Nation Talks, which are increas-
ingly regarded as entirely ineffec-
tual. Kim-Jong Un has thus far
proven himself a maverick on par
with his father, an inscrutable and
unpredictable young man with
enormous power in his hands. If
anything, North Korea can rea-
sonably be considered a greater
threat under the new leadership as
the nation’s economic plight wors-
ens and its nuclear research pro-
gresses. Increasingly combative
rhetoric has only worsened rela-
tions with the international com-
munity. This past month, Deputy
Defense Minister, Kang Pyo-yong
claimed “our international bal-
listic missiles are on standby…
if we push the button, they will
blast off and their barrage will
turn Washington, the stronghold
of American imperialists and the
nest of evil…into a sea of fire”.
Under its founding lead-
er, Kim-Il Sung, North Korea
embarked on a project to attain
nuclear weapons and it has
worked steadfastly towards that
goal. President Bush’s infamous
2002 ‘Axis of Evil’ speech and the
United States’ ruthless manage-
ment of regimes that fall out of its
favor have further isolated Kim’s
government. Nuclear deterrence
is perceived as the only feasible
defense of North Korea’s sover-
eignty. Additionally, the threat
it entails would offer Kim an
enormous degree of bargaining
power with which to extract eco-
nomic and political concessions.
A successful satellite launch in
December surprised the world
and demonstrated a mastery of
technology that can be used to
create inter-continental ballistic
missiles. With its current capa-
bilities, America is clearly within
North Korea’s strike zone.
South Korea has been on
its guard amid this new round
of Northern belligerence. It has
received American assurances of
military support in the face of
a Northern attack and the two
continue to carry out joint exercis-
es. Newly elected President Park
of South Korea has sought bet-
ter ties with the North although
her patience will be sorely tested.
Since Kim’s ascendance, the North
has become even more explicit in
its threats and demonstrations of
power. Kim severed negotiations
with the South after February’s
nuclear test. On her side, Park has
scrapped the ‘Sunshine Policies’
of previous administrations and
has promised less conciliation and
more strength in diplomacy.
Meanwhile, across the Sea
of Japan, an old imperial power
seems to be rising from a pro-
longed slumber. Under new Prime
Minister, Shinzo Abe, Japan’s gov-
... our international ballistic missiles are on stand-
by…if we push the button, they will blast off and
their barrage will turn Washington, the stronghold
of American imperialists and the nest of evil…into
a sea of fire.”
international relations
18. 18 Business Asia
ernment is adopting a more proac-
tive and bold stance. Since reelec-
tion, Abe has publicly declared
his goal to relaunch Japan’s inert
economy and his ‘Abenomics’ are
slowly beginning to show tangible
economic results as markets and
investors buy into his rhetoric.
However, aside from his ambi-
tious economic goals, there are
several other areas of concern to
China. One is Abe’s firm belief
that Japan must remain the key
regional power. He is is a vocal
proponent of the proposed Trans-
Pacific Trade Partnership and his
recent visit to the United States
provided ample evidence of his
desire to deepen ties. Additionally,
however, Abe is a passionate
nationalist and he has adopted
several controversial positions –
from denying the Japanese army’s
use of Korean sex-slaves during
the Second World War to reject-
ing a perceived post-war “apology
diplomacy”.
Retracing the First World
War’s origins and reviewing the
state of events in both the Balkans
and Central Europe in 1914 can
be instructive in assessing the
threat of these multiple conflict-
ing variables. Then, as now, a ris-
ing regional power, Germany, felt
threatened by established nations
that sought to blot its rise. Would
nationalists in the Chinese gov-
ernment be willing to risk war
over their insecurities? It’s entire-
ly plausible that politicians might
not decide the course of action. In
1914, war broke out in response
to the actions of six Serbian men
associated in a relatively minor
terrorist group. A 2010 crisis was
instigated by a drunken Chinese
trawler captain who provoked
Japanese patrol ships.
The Senkaku Islands dis-
pute could bring many of these
tensions with China to a head.
Seemingly a minor diplomatic
issue, it has led to fierce sabre-rat-
tling on both sides and has
reopened old, historical wounds.
It also threatens to embroil the
United States through its post-
war military alliance with Japan
– hence China’s apprehension at
their closer relationship.
Added to the power struggle
between powerful nations in the
early 20th century was the restless-
ness of smaller ones. Today, North
Korea complicates the equation
enormously. It has survived the
past two decades since the fam-
ine of the 1990’s largely through
Chinese aid, much of it secret and
in direct violation of international
sanctions. However, a crossroad
has clearly been reached in the
Chinese-North Korean relation-
ship. Korea is no longer neces-
sary as a buffer against America
and its allies. Equally, its provoc-
ative actions are increasingly seen
... Abe is a passionate nationalist and he
has adopted several controversial positions
– from denying the Japanese army’s use of
Korean sex-slaves during the Second World
War to rejecting a perceived post-war “apol-
ogy diplomacy.”
international relations
19. Spring 2013 19
as an embarrassment to China.
However, the collapse of Kim’s
regime could lead to chaos on
China’s northeast border. Stability
is a priority for the Chinese gov-
ernment as they seek to increase
their regional influence. Although
relations with South Korea have
improved considerably, Japan is
still considered a powerful rival
and all plays are made after gaug-
ing the Japanese position.
The current political climate
in northeast Asia is complex with
a variety of futures possible and
plausible. Some current Chinese
and Japanese rhetoric has in fact
been on par with the less sur-
prising quotations spewing from
North Korea, suggesting a will-
ingness to confront that hasn’t
been seen anywhere in decades.
North Korea’s persistence in
attaining nuclear capabilities cre-
ates concern across the globe. The
entanglement of the United States
through its complex relationship
with all three states as well as its
wariness of Iran makes this explo-
sive situation a global issue. How
America balances its relation-
ship between a rival superpower,
China, and a potentially resurgent
ally, Japan, while also assuring the
Korean Republic’s safety against
a Northern attack will be enor-
mously difficult. China’s support
of North Korea already creates
friction in its relationship with the
United States. A resurgent Japan
seeking to temper China’s rise with
American support would further
complicate the Sino-American
dynamic. President Obama’s deci-
siontostationMarinesinAustralia
is evidence of the American pivot
to the east in thinking, strategy,
and policy-making. Avoiding a
1914 is central to the interests of
all players but simply maintaining
balance and stability with a multi-
plicity of conflicting interests will
be challenging.
The Senkaku Islands
(also known as the Diaoyu
Islands in Mainland China)
20. 20 Business Asia
E
very year, millions of people migrate to places with better job
prospects or where their skills are appreciated. With globaliza-
tion came ease of travel, and many skilled workers from various
developing countries have taken advantage of this, thereby creating a
phenomenon called ‘brain drain.’ A large number of developing coun-
tries experience this condition when their skilled workers immigrate
to richer countries in search of better standards of living. China has
been one of the hardest struck countries from this phenomenon, with
tens of thousands of its educated individuals immigrating to developed
countries every year.
Brain Drain in Modern China
“Only about a quarter
of the students have
returned upon comple-
tion of their academic
programs”
Jihoon Lim
Cornell University ‘16
College of Arts and Sciences
21. Spring 2013 21
China opened its doors in
the late 1970s to allow students
to pursue advanced degrees in
Western Europe, North America,
and Australia, among other plac-
es. As of 2007, the number of
Chinese students who have stud-
ied abroad since 1978 has reached
1.21 million, but only about a
quarter of the students have
returned upon completion of their
academic programs. The num-
bers reflect the scope of difficul-
ty that the Chinese government
faces in attracting highly-skilled
foreign-educated laborers. The
government took measures to
provide financial privileges and
incentives to help re-integrate
highly-educated Chinese workers
from abroad. It is also currently
pushing for the implementation
of an ideological test, which only
allows individuals with a suffi-
cient degree of patriotism to study
abroad, as an attempt to minimize
brain drain and increase “personal
ties” to China.
Despite the incentives, many
skilled professionals and Western-
educated individuals point out
the problems rampant in China.
In an interview conducted by
Ian Johnson of The New York
Times, Chen Kuo stated that she
worked “128 hours a week,” and
that the future remained uncer-
tain because of corruption and
the fast-changing political wind,
in a comment that echoed the
sentiments of millions of Chinese
professionals and émigrés. Others
have noted social issues such as
pollution, religious freedom, and
food safety as reasons to leave
China, but most importantly, the
skilled laborers worry about their
standard of living as well as stabil-
ity of their wealth and properties.
Sim Chi Yin of The Strait
Times reported that with brain
drain, wealth drain in China has
followed. Since 1976, China has
experienced an economic growth
rate faster than any other country.
Constant growth has put millions
of people out of poverty, but many
seek to leave China, therefore rais-
ing concerns about the shrink-
ing middle and upper-middle
income classes as well as wealth
loss. Each year, more members
of the Chinese middle class with
sufficient financial means apply
for an investment visa to avoid
the hyper-competitive environ-
ment for education and jobs in the
urban areas. These decisions ulti-
mately create advantages for other
countries by way of creating jobs
and spurring economic growth.
Xin Haiguang of CNN report-
ed that a majority of Chinese who
have more than 10 million Yuan
($1.53 million) have considered
applying for an investment visa
in different countries, and 27 %
of those who have more than 100
million Yuan “have already emi-
grated” while 47% have consid-
ered leaving China. These num-
bers add up to hundreds of mil-
“the future remained
uncertain because of
corruption and the
fast-changing political
wind”
international relations
22. 22 Business Asia
lions of dollars in loss every year
for China.
The Chinese government
desires constant economic growth,
but it faces a dilemma. If it con-
tinues to send students abroad,
many will not return, but at the
same time, if it places a quota on
the number of students who can
study abroad, it may risk losing
out in the global competition in
various fast-changing industries.
With China’s economic growth
rate slightly below 8 percent, the
wealth drain may cause slower
economic growth due to a lack
of human resources and capital.
Chinese industries will be able to
replace skilled labor, but it may
face a decrease in input capital.
That is, because of the growing
economy and the size of its popu-
lation, China may not immediately
face the same consequences of the
shortage of skilled labor as many
other developing countries with
a brain drain problem, but it will
continue to face the consequences
of wealth drain because of its wide
economic inequality. The root of
the problem of economic inequal-
ity is that the most skilled are the
wealthiest, and wealth drain inev-
itably follows brain drain.
China has made extensive
efforts to reverse the brain drain
and promote global competitive-
ness. The government incen-
tives include cash compensations,
housing, and decent education
for the children of foreign-edu-
cated intellectuals. The Chinese
government has shown moderate
success in curbing the exodus of
its skilled workers. According
to the Ministry of Education, in
2011, 186,000 foreign-educated
students and scholars returned
to China, a 40 percent increase
from the number of returnees in
2010. China’s consistent econom-
ic growth and bright job prospects
have become the primary reasons
for an increase in the number of
Chinese returnees.
The Chinese government’s
effort to bring back its talent has
not yet shown full signs of success,
as a large portion of its intellectu-
als and wealthy still feel frustrated
with corruption and the unstable,
or even arbitrary, property laws,
in which one can lose his proper-
ty overnight. Given the current
situation, China will continue to
experience economic growth, but
only at a limited scale, because of
its loss of professionals and their
considerable sum of wealth.
Chart 2. Returnees: Factors Contributing to Decision to Migrate to U.S. (Average rankings)
(1 = not important, 5 = extremely important)
international relations
23. Spring 2013 23
I
f WeChat was invented by a
group of young tech-geniuses
in the Silicon Valley, it must
have become one of the hottest
mobile multimedia communica-
tion tools touted by the VCs. But
this mobile web communication
tool was designed, developed and
marketed all in China—a coun-
try that has been on the margin of
the world’s technological innova-
tions. However, based on its cur-
rent popularity in China, WeChat
is developing in a speedy fashion
that is even comparable to Face-
book and Twitter. The advent of
WeChat could be a promising start
for China’s turn-around in the in-
novation front.
China’s technological devel-
opment has long been lagging be-
hind other countries in R&D and
innovative inventions. Most well-
known and profitable technologi-
cal firms were initially developed
through copying western ideas.
For example, Renren is the Chi-
nese version of Facebook, WeiBo
is that of Twitter, and YouKu of
YouTube, etc. These companies are
even more successful than their
western counterparts in China.
On the one hand, they are more
familiar with the local preferenc-
es so that modifications have been
made in the process of imitation to
the Wakening of Chinese Innovation
Jiting Wang
Cornell University ’16
College of Engineering
24. 24 Business Asia
cater to the needs of local custom-
ers. On the other hand, the Chi-
nese government has set up high-
er bars for foreign technological
companies to enter the market in
order to protect its own firms and
products.
But the birth of WeChat turned
all these around. With the support
from Tencent – China’s biggest
and most influential technolog-
ical firm, WeChat had achieved
great success since its release in
January 2011. In terms of number,
WeChat’s registered users reached
100 millions in 14 months, 200
millions in 20 months and more
than 300 millions in 24 months.
Similar to Facebook and Twit-
ter, WeChat gained its popularity
through quick public spread. If I
downloaded WeChat, I would tell
all my friends to use it, and they
would tell their friends. There-
fore, the number of users grows
geometrically. Now if you saw
someone in China talking to their
phone by themselves, they must be
using WeChat.
But if WeChat is successful in
China, why haven’t the Americans
come up with similar innovations
first?
I think the reason lies in the
differences between China and the
U.S., in their social habits as well
as in their communication indus-
tries.
Chinese and Americans have
very distinctive social commu-
nication styles. Therefore their
needs for social networking sites
are different. According to a sur-
vey done in the U.S., more than
60% of Americans use Facebook
and Twitter to keep up with family
and friends. Such contact does not
refer to instant communication
but messages on each other’s wall
and comments under each oth-
er’s posts. But the chatty Chinese
prefer instant communications. A
decade ago, Tencent borrowed the
idea of Israeli ICQ (the first instant
messaging computer program) in
inventing QQ, which is now far
more recognized than ICQ. Today
WeChat has overtaken QQ in sat-
isfying the need for instant com-
munication.
WeChat is an intermediate
communication choice between
phone talks and SMSs. Like text
messages, WeChat does not de-
mand others’ immediate availabil-
ity so it is more convenient and less
intrusive. It is also like phone calls
as vocal communication substi-
tutes typing. This is why WeChat
is so popular in China—it caters to
the Chinese’s need to talk!
The second difference between
China and America is the devel-
It took both Facebook (2004 – 2009) and Twitter (2006 – 2011)
six years to cross the 300 million user mark, yet Tencent’s WeChat
messaging app amassed the same amount in less than two years.
“Most importantly, we now see
a wave of buzzy Chinese tech
startups competing in new ideas
and innovations.”
“It signals the start of a new
era of technological innovations
with labels ‘Made in China’.”
GENERAL BUSINESS
25. Spring 2013 25
opment of the communication
industries. The leading commu-
nication firms in the U.S. include
AT&T, Verizon, Sprint, T-Mobile
and Alltel, and many other small-
er service providers. All service
providers have promotions and
discounts, like free calling with-
in the same provider, unlimited
text messages, no long distance
charges, etc. to gain a competitive
edge in the market. But in China,
two companies—ChinaMobile
and CUQ China, have long dom-
inated the communication indus-
try. The monopoly leads to expen-
sive rate-plans and low-quality
services. Therefore, the advent of
WeChat brings in a new and
cheaper option. WeChat is free
anywhere with Wi-Fi. Even with-
out Wi-Fi, the data usage will not
exceed 3M monthly. Compared to
the expensive calling and messag-
ing charges, WeChat is much more
economic.
WeChat is slowly revolutioniz-
ing the way Chinese communicate.
On this year’s Lunar New Year’s
Eve, text messages and phones
calls are no longer the major tools
for sending best wishes. They have
been substituted by new innova-
tive social networking tools like
WeChat, WeiBo etc. According to
the two communication service
providers, the number of calls and
messages has fallen by more than
20% in the past year.
As China’s very own inno-
vation, WeChat will continue
revolutionizing Chinese’s com-
munication styles. It is constant-
ly improving and upgrading.
WeChat definitely sets a successful
example for Chinese technology
firms to follow. It is a legendary
invention. It signals the start of a
new era of technological innova-
tions with labels “Made in China”.
WeChat’s features
WeChat and its competitors
“On this year’s Lunar
New Year’s Eve, text
messages and phones
calls are no longer
the major tools for
sending best wishes.
They have been sub-
stituted by new inno-
vative social network-
ing tools like WeChat,
WeiBo etc.”
GENERAL BUSINESS
26. 26 Business Asia
Burgeoning
senior living industry
in China
The current Demand and Supply
The senior living industry in
China has huge potential due to its
huge consumer base. To start off,
the Chinese population is rapidly
ageing. As shown in Figure 1, the
population aged 65+ is projected
to reach 188.3 million by 2017.
In addition, despite skyrock-
eting demand, there is still limited
supply of adequate senior living
communities. In 2011, the ratio
of the population aged 65 and
above to the number of nursing
home beds available was 39.68.
This means that roughly 40 elder-
ly people compete for a single bed
in the senior living community.
Hence, the exponential growth in
demand coupled with a stagnant
development in supply gives large
room for investment.
Besides an imbalance between
demand and supply, the senior liv-
ing sector in China is made even
more attractive due strong support
from the government. Specifically,
the Chinese government has not
only eased foreign investments in
the senior living industry, but has
also put in place incentives to at-
tract international investments.
According to a news report from
Reuters, the Chinese government
has reclassified the senior living
sector as “permitted” rather than
“restricted,” meanings foreign
companies can now own 100 per-
cent of an operation.
Yiwei Chen, Cornell University ‘16, School of Hotel Administration
“... the
exponential
growth in
demand coupled
with a stagnant
development
in supply gives
large room for
investment.”
L
et’s face it. A country with
1.3 billion people would jus-
tify itself as a huge market
for almost any product or service.
Naturally, everyone is talking ex-
citedly about expanding into the
Chinese market, as if adding a Bei-
jing or Shanghai division to their
list of global offices immediately
gives them more ‘internation-
al flair’. While the zeal is not un-
grounded, it is essential for com-
panies to tap on trends that might
have gone unnoticed by the more
mainstream thought and ideas.
And the growing senior living
sector is definitely something US
investors should look forward to.
The senior living communities in-
clude retirement homes, daycare
centers, assisted living and so on.
GENERAL BUSINESS
27. Spring 2013 27
Undoubtedly, U.S.-based se-
nior living companies must have
considered the possibility of ex-
panding into the Chinese market.
What has deterred them? Many
are worried that the demand for
senior living might be limited
despite the ageing population be-
cause of the social stigma associat-
ed with senior living communities.
On the one hand, the tradition-
al teachings of filial piety dictate
that children should support their
elder parents on a daily basis.
On the other hand, currently the
majority of senior living commu-
nities are run by the government
in order to support elderly from
lower-income families, giving this
industry a bad reputation. Hence,
perhaps from the perspective of
the elderly, moving into a senior
living community means they are
being abandoned by their children
or their children are financially
incapable of providing them with
a better living condition. Conse-
quently, very few elderly might
want to put the ‘face’ of the fam-
ily in jeopardy, leading to much
smaller demand for senior living
communities. In fact, according to
research conducted by the Shang-
hai municipal government, only
3 percent of the elderly would be
willing to pay for private senior
homes.
However, with the substantial
amount of pressure on the single
child, senior living communities
might become the only option.
Due to the one child policy im-
plemented in 1978, the average
number of children per household
is decreasing rapidly. As shown in
Figure 2, the number will decrease
to 0.5 by 2017. Subsequently, there
is only going to be even more pres-
sure on children to support their
parents and even their grandpar-
ents, which naturally points to se-
nior living communities as a via-
ble alternative.
More importantly, even if the
social stigma attached to senior
living communities is here to stay,
this same stigma would actually
give US-based senior living op-
erating companies a unique com-
parative advantage. In fact, when
a senior living community (or
any product) is associated with
an American company, it imme-
diately gains a prestige that lo-
cal firms simply could not have.
Ever since its opening in Shang-
hai, the luxurious senior retire-
ment home Cascade Healthcare
has been completely filled despite
“... when a senior
living community
(or any product)
is associated
with an American
company, it
immediately gains
a prestige that
local firms simply
could not have.”
Figure 1
Challenge 1:
Social resistance to senior living communities
Turning challenges
into opportunities
GENERAL BUSINESS
28. 28 Business Asia
a jaw-dropping monthly fee of
$1,926.And in the words of Romi-
ly Sinclair, Creative Director of the
Annual Retirement Living World
China Conference , ‘the Chinese
consumer market has a preference
for international brands’. Hence,
the demand for senior living and
the demand for luxurious senior
living communities run by Amer-
ican firms in particular are bound
to rise. And at the end of day, 3
percent of a population of 1.3 bil-
lion people is still a huge market.
Challenge 2:
Limited resources for international expansion
Despite the rising demand,
some senior living companies
might worry that it is simply not
the right time to consider inter-
national expansion. Since the do-
mestic demand for senior living
has just started to recover, it might
take years for the senior living op-
erators to reach the same profit
and occupancy level as before the
recession. Naturally, they might
prefer to focus their effort on the
domestic market. At the same
time, most senior living operators
do not have the capital to under-
take international expansion with-
out the help from healthcare RE-
ITs.
While the major players in the
senior living industry here in the
US have every reason to consoli-
date their business in the domes-
tic market, senior living operators
of a comparatively smaller scale
should tap into opportunities of-
fered by the senior living sector
in China, especially when they
can secure financing from Chi-
nese investors. According to Bill
Pettit, president and COO of the
Seattle-based assisted living com-
pany Merrill Gardens Well, China
does not lack the capital to build
senior living communities; what
is missing in China right now is
the relevant expertise to run these
communities—the expertise that
American senior living operators
have honed and refined for years.
Yes, the senior living industry
in China is an untested market
and the Chinese government is
still in the process of ironing out
the relevant regulations. But this
also means, whoever is coura-
geous enough to seize the oppor-
tunity right now would help set
the standard and gain the upper
hand as the market leader.
Warren Buffett says, ‘We sim-
ply attempt to be fearful when
others are greedy and to be greedy
only when others are fearful.’
When everyone is again talking
about the immense opportunities
in the senior living industry in
China, you know it is too late to
expect something more than just
‘international flair’.
Why US-based
senior living
companies should
give it a shot
GENERAL BUSINESS
29. Spring 2013 29
Taking a Peek at
Islamic Banks Maria Marcia
University of Indonesia
I
slamic banks have been gain-
ing popularity in recent years.
It was thought to have be-
gun around the same time as the
birth of Islam, but it was not until
the 1960s that it became a com-
plete banking system. At the end
of 2012, the total asset of Islamic
banks in the world is $1.55 trillion.
That is not a bad number at all,
considering the banking system is
only slightly above 50 years old.
According to a report by Ernst
& Young, global Islamic banking
assets are expected to grow by 17%
annually by 2013. It is continuing
to grow 50% more than conven-
tional banks in several core mar-
kets, such as Saudi Arabia, Malay-
sia, and United Arab Emirates. By
the end of 2012, the market share
of Islamic banking assets in Saudi
Arabia was over 50%.
Due the growing prevalence
of the Islamic banking system, it is
important to gain an understand-
ing of its basic principles. Islam-
ic banks are fundamentally dif-
ferent from conventional banks.
Conventional banks are operated
based on manmade principles. On
the other hand, Islamic banks op-
erate based on the laws governing
Quran pages
GENERAL BUSINESS
30. 30 Business Asia
the Islam religion, one of which is
Syariah.
The basic function of a con-
ventional bank is to lend money
and make money on its interest.
Since riba (interest) is considered
haram (sinful) by Syariah law, the
basic function of an Islamic bank
is to participate in partnership
businesses with its customers.
An Islamic bank is like an in-
vestor in a joint venture - it shares
the risk and profit of businesses,
which is why project viability is
their main concern. A conven-
tional bank would be more con-
cerned with the credit-worthiness
of the creditor.
A notable difference between
Islamic banks and conventional
banks is how they guarantee cus-
tomers’ deposits. Conventional
banks guarantee all customers’ de-
posits. Meanwhile, Islamic banks
guarantee customers’ deposits if
the deposit account is based on
wadiah principle. If the deposit
account is based on mudharabah
principle, the depositor would
share a loss position.
There are a lot of principles
used in Islamic banking system.
To be able to understand and ben-
efit from the system, we need to
understand the meaning of those
principles. Here are three that are
more commonly used.
The first one is mudharabah,
also known as qirad or muqa-
radah. This principle basically
means those with capital would
assign their money to another
party to carry out a venture or
business. The investor would not
be involved with the business and
the entrepreneur would return the
capital to the investor with pro-
portion of profits made at the end
of the contract. If the business re-
sults in a loss, the investor would
also share the loss.
Qard hassan is the only form
of loan permitted by Syariah. It
obliges the borrower to repay the
lender the amount borrowed. The
borrower also uses his/her own
discretion whether or not to re-
ward the lender.
Wadiah refers to an agreement
between the owner of assets and
another party. The owner of as-
sets gives consent to a custodian
to make use of the assets, as long
as the assets remain in the custo-
dian’s hands. In other words, the
owner of assets trusts the custo-
dian to manage the owner’s assets
ethically. Ethically means without
mixing the assets with personal
assets and not running away with
the assets – those actions are con-
sidered illegal.
The next question would be:
when and how are those principles
used?
Conventional banks offer de-
posit facilities for those who want
to hold or keep their money. The
kind of deposit facilities chosen
depends on the person’s motive of
holding their money.
For transaction purposes, con-
ventional banks offer a current
account facility. In this facility,
account holders can conveniently
withdraw funds through checks.
These people do not place impor-
tance on the interest rates. Conve-
nience is their number one priori-
ty. Since this kind of account is not
required to provide interest, Islam-
ic banks can offer similar facilities.
Islamic banks use qard hassan or
wadiah principles in providing
this facility. The qard hassan prin-
ciple is useful if the bank offers
some kind of reward in place of
interests conventional banks offer.
However, in light of fierce compe-
tition nowadays, banks often offer
interests in the current account fa-
cility. Islamic banks can offer dis-
crete rewards to stay on top of the
competition. The wadiah principle
comes because the account hold-
ers, or the asset owners, trust the
bank to keep their money and the
bank guarantees it will return the
full amount when requested. Even
though the depositor may not re-
ceive any profit, the Islamic banks
can offer gifts or hibah as a token
of appreciation.
The second deposit facility is
savings account. They are meant
for people who have precaution-
ary motives in holding their mon-
“An Islamic bank is like an investor in a
joint venture - it shares the risk and profit of
businesses”
“A notable
difference between
Islamic banks and
conventional banks is
how they guarantee
customers’ deposits.”
GENERAL BUSINESS
31. Spring 2013 31
ey. They want to keep their money
for the rainy days, but also consid-
er the investment they can make
with their money. Islamic banks
provide this facility using wadi-
ah, mudharabah, and qard hassan
principles. The wadiah principle
comes with the trust account hold-
ers have for the bank. If the mud-
harabah principle is used, the ac-
count holders can only withdraw
their money at a stipulated time
because the bank uses their money
for investment purposes. The bank
would then reward the depositors
with profit made from the invest-
ment. The qard hassan principle is
used when the bank gives the de-
positors discreet reward.
For people who hold money
for speculative motives, banks of-
fer a fixed deposit facility. Islamic
banks offer this facility using the
mudharabah principle. As a cus-
tomer, I would be free to choose
the deposit period, but the bank
does not provide a guarantee or
fixed return on the amount I de-
posited. Under the principle of
mudharabah, I get a share of the
profit made by the bank based on
a pre-agreed ratio. It is like buying
the bank’s stock – if the bank gets a
profit I get a share, but if it suffers a
loss, I also share the loss.
Islamic banks may also raise
funds by issuing unique invest-
ment certificates that do not carry
fixed returns. They use the mud-
harabah and qard hassan princi-
ples for the certificates. When the
mudharabah principle is used, the
reward for the investor is based
on the bank’s annual profit. If the
qard hassan principle is used, the
reward is entirely up to the bank’s
discretion.
Islamic banks’ growth since its
comeback in the 1960s has been
exponential. It is possible because
of the growth of Muslim popula-
tion in the world and the fact that
you don’t need to be Muslim to
open an account (current account,
savings, or fixed deposit facility,
your choice) in an Islamic bank.
Islamic banks offer a unique
system that may provide the ail-
ments of today’s financial markets.
And based on the growth trend of
the past few years, it may just be
true.
Jama Masjid in India
GENERAL BUSINESS
32. 32 Business Asia
New Industries,
the “Babies” born by
China Air Pollution
A
big haze lay over Beijing
on Mar. 1. Amidst grim
environmental moni-
toring and surveillance reports,
along with a strong sand storm
approaching from the northern
area, Beijing encountered its worst
weather of the year. The density
of PM2.5 reached to 400ug/M3,
indicating air quality as the most
serious pollution. A heavy haze
covered the dark gray sky and vis-
ibility was at a mere 30 feet. Peo-
ple on the street donned masks or
helmets to minimize breathing in
dirty air. The serious air pollution
caused a lot of suffering and incon-
venience to the Beijing populace,
but there have been some benefits
created from this situation—that
is the development and creation of
new industries.
One of the industries that
benefitted from the advent of air
pollution is the electric-vehicle
industry. Since scientific research
has shown that car exhaust is the
main cause of city air pollution,
the purely electric- car is much
more environment-friendly. How-
ever, the price of an electric car is
almost double compared to that of
a normal gasoline motor car of the
same kind. However, local govern-
ments have implemented policies
encouraging people to buy elec-
tric cars. As a result, an increasing
number of people are considering
the idea of replacing their gasoline
guzzling cars with this new clean
energy vehicle. In Shanghai, Gen-
eral Motors and Shanghai Motors
each introduced an economic
electric car to the market, Springo
and Rowe E50. The price of both
models is around USD40,000.
However, the government will
give buyers rebates amounting to
half of the price when a purchase
is made. What’s even more attrac-
tive is that buyers will receive a
free car license plate, which usu-
ally costs around USD14,000 for
a normal gasoline car. With such
incentives in place, it’s no wonder
Sharon Wang
Cornell University ‘16,
College of Arts & Sciences
“This is when the
cruel and twisted
nature of humanity
began to unveil
itself in which the
atrocities of six men
shook a nation of one
billion.”
GENERAL BUSINESS
33. Spring 2013 33
that nowadays people are open to
buying more electric cars. With
such governmental support, the
potential for growth in this indus-
try is considerable.
Also, another main factor
causing car exhaust pollution is the
inferior quality of gas. Currently
the GAS Standard IV is being used
nationwide. However, this stan-
dard shall be amended to Stan-
dard V which allows less sulfur
content (<=10mg/kg) and will be
published by end of 2013. The new
standard mandates the use clean-
er gas which reduces hazardous
car exhaust. This policy benefits
more oil refineries by increasing
their profit potential from refining
crude petroleum. With increasing
attention of the Government on
cleaner energy to protect the envi-
ronment, more capital will be in-
vested in such greener industries.
In addition, as Chinese people
become wealthier, they pay more
attention to their health. Indoor
air quality then becomes a critical
issue for consideration. Accord-
ing to a news report by Shanghai
Commerce, almost all branded air
purifiers are currently out of stock
in Beijing. This demonstrates
the rapid growth in demand for
air purifying or sterilizing ma-
chines. According to Department
of Commerce of Chinese Central
Government, the sales of air pu-
rifiers increased each year in the
first three quarters between 2010
and 2012, with the growth rating
from 11.4% to 14.7%.
The marketing potential for
this product is huge, since the
marketing popularity rate of air
purifier is less than 1% in China,
while in western countries, it is up
to 34%. According to a sales report
by Sharp, its sales volume of air
purifier in January this year was
almost three times than that of
the same period of last year. This
is why now more and more capital
has been introduced into this field
of industry, which will become
an outstanding industry in future
China.
Moreover, firecrackers are a
part of Chinese tradition in cele-
brating important holidays, such
as Chinese New Year, Lantern
Festival, or even wedding cere-
monies. From the data published
by Beijing Environmental Sur-
veillance Bureau, at Chinese New
Year’s Eve, the density of chemical
materials and particles in the air
was detected to be increasing so
rapidly. Some people appealed for
a ban on these firecrackers. How-
ever, this will not be easily accept-
ed as firecrackers have come to be
an important part of Chinese tra-
dition. So, an innovative industry
came into existence- electronic
crackers. It applies acousto-optic
technology to simulate the sound
and light from a firecracker’s ex-
plosion. Unlike a real firecracker,
this electronic firecracker could
be repeatedly used, which is also
more economical. The commer-
cial opportunity for this kind of
product will be big in the future.
With the support by Chinese
Government, more and more new
industries related to environment
protection will be encouraged and
developed, which give more com-
mercial chances for the invest-
ment.
“With increasing
attention of the
Government on
cleaner energy
to protect the
environment, more
capital will be
invested in such
greener industries.”
Roewe E50, introduced by Shanghai Motors
GENERAL BUSINESS
34. 34 Business Asia
China -
the Top Spender of
Luxury Goods
Shuang Jia
Cornell University ’16
College of Arts and Sciences
The Chinese consum-
er, who accounts
for 25 percent of the
world’s purchases of
luxury goods, is by far
the top spender on lux-
ury goods. The consumption
of luxury goods in China’s domes-
tic market grew at an annual rate
between 16 percent and 20 per-
cent for the past four years, while
its overseas spending on foreign
goods in 2012 alone has increased
by 37 percent. Even with signs of
subsiding growth of China’s do-
mestic luxury good market, the
projected annual rate of Chinese
luxury good consumption still falls
within a 12 percent to 16 percent
range, and it is highly likely that
by 2015, Chinese consumers will
make up 34 percent of the world-
wide luxury goods consumption.
One major reason behind such
robust demand for luxury goods is
the rising income of the Chinese
population. According to an esti-
mate by McKinsey, in the coming
three years, the number of wealthy
households with annual dispos-
able incomes above RMB 1 million
will grow by more than 20 percent
each year, and would constitute
28 percent of the consumption in
the luxury good market by 2015.
On the other hand, the consump-
tion of middle class households
with annual disposable income
between RMB 50,000 to RMB
250,000 is also catching up. Al-
though the nominal value of their
Figure.1 Consumption of Luxury Goods by Income Levels
GENERAL BUSINESS
35. Spring 2013 35
total consumption is not compa-
rable to the very wealthy house-
holds, the number of middle class
families is like bamboo shoots
after rain -- their consumption of
luxury goods is by no means neg-
ligible.
An interesting point to note
is that over half of the spending
on luxury goods takes place in
overseas markets. The top three
locations for overseas luxury pur-
chases are Hong Kong, Macau and
Europe. One of the reasons driving
overseas purchases is the higher
price level in the Chinese domes-
tic luxury market due to tariffs im-
posed by the government. The ris-
ing income of the Chinese, more
lenient visa policies, and a weaker
euro drove a 38 percent surge in
overseas luxury good purchases
in 2012, and it is expected to grow
even further. The worry of getting
counterfeit goods within China
and more professional in-store
services in overseas retail stores
also encourage Chinese consum-
ers to buy from abroad.
However, the statistics from
2012 indicate a slowdown in the
growth of luxury goods con-
sumption. There are two major
conjectures regarding the dwin-
dling growth. The first one is low-
er retail spending through low
consumer confidence due to the
slowing GDP growth rate of the
national economy. However, ac-
cording to a consumer sentiment
survey conducted by McKinsey,
the consumers with annual house-
hold income above RMB 250,000,
who contribute to major demand
for luxury goods, show very high
confidence towards their income
outlook. This result is understand-
able because the upcoming eco-
nomic structure transformation
is gradually shifting away from a
cheap-labor reliant and energy-in-
tensive economy, will impact the
low skilled workers most heavi-
ly. Those who participate in high
value-added economic activities
could continue to benefit from the
nation’s growth towards a more
developed economy.
Another possible influence on
the slowing luxury goods market
is the efforts to combat corruption
under the new leadership of Xi
Jinping, which makes people wary
of giving government officials
gifts. However, gift giving has been
a deep-rooted practice in Chinese
culture in order to foster stronger
bonds and to maintain relation-
Figure 2. Tax Rates on Luxury Products in China
Figure 3. Consumer Sentiment of High Income Households
GENERAL BUSINESS
36. 36 Business Asia
ships. As the Chinese become
more affluent, it is expected that
people would want to buy high-
class gifts as a sign of respect to
their friends and partners. At the
same time, gifting luxurious gifts
shows off their wealth level and
good taste, which make the people
who buy gifts feel good. Therefore,
it is arguable whether the tighten-
ing state control on government
officials will necessarily impact the
luxury market as a whole signifi-
cantly.
The robust growth in Chinese
consumers’ demand for luxury
goods is especially great news to
the luxury brands when the world
economy is far from optimistic.
The luxury brands have expanded
aggressively in 2009 and 2010 in
both major cities like Beijing and
Shanghai, and second and third
tier cities. However, this trend of
expansion slows down in 2012.
Rising rental costs for commercial
spaces, shortage of qualified well-
trained in-store staff and rising
wage of talents are very realistic
reasons behind the slowed-down
expansion of luxury stores. Fur-
thermore, many brands expressed
that they want to focus more on
improving and standardizing the
quality of service across all the
stores nationwide. Many Chinese
consumers feel that the in-store
services in overseas stores are
more professional and consistent
compared to the ones back home.
As more Chinese consumers trav-
el more and have more knowledge
and higher expectations for their
overall consumption experience,
the luxury brands definitely need
to work on eliminating the incon-
sistency of in-store services in or-
der to retain their sales in the Chi-
nese market.
Currently, foreign luxury
brands still dominate Chinese lux-
ury good market. In 2012, Hurun
Report has released an interest-
ing report of preferred brands for
gifting by male and female Chi-
nese luxury good consumers. We
can see that among all the brands,
only Moutai is a Chinese domestic
brand, and the rest are still big for-
eign names.
It is true that there are a wide
range of Chinese luxury goods,
such as china, cigarettes, alco-
hols, tea, and fabrics, but brand
development is seriously lacking
behind, and there are hardly any
domestic luxury brands that have
comparable influences as the in-
Figure 4. Luxury Brands Expanding Stores in China
Figure5. Prediction of Possible Chinese Luxury Industries
GENERAL BUSINESS
37. Spring 2013 37
ternational giants. According to
Zhou Ting, head of Fortune Char-
acter Institute, China, there is still
large room for improvement in
terms of brand building, product
design and quality management
for Chinese brands. The lack of
talents is still the biggest weakness
in the development of Chinese
luxury brands. However, despite
the amount of catch up to do be-
fore an influential Chinese luxury
brand emerges, experts in the field
are pretty optimistic in the po-
tential of Chinese luxury brands.
According to a KPMG report, the
industry experts and luxury con-
sumers surveyed believe the cate-
gories that Chinese luxury brands
are mostly likely emerge from are
alcohol, restaurants, spas, hotels
and resorts. These are the indus-
tries that do not need the histo-
ry or heritage possessed by many
European luxury producers, and
Chinese companies are more like-
ly to capture those industries. It is
believed that Chinese consumers
would be more aware of the lack
of homebred luxury brands, and
would want to build and support
Chinese luxury goods.
It is foreseeable that the Chi-
nese luxury market landscape
would go under substantial chang-
es with possible change of govern-
ment tax policies. Currently there
are conflicting opinions whether
the government would reduce the
tax on luxury products. On one
hand, it is predicted that overseas
purchases of luxury goods by Chi-
nese consumers will continue to
grow under the current price gap
between the Chinese market and
overseas markets. This results in
an outward flow of savings and
economic activities, which is un-
desirable for the nation’s employ-
ment and financial stability. On
the other hand, reducing tax on
luxury goods would benefit most-
ly the wealthy, and it would exac-
erbate the income gap. It is also
regarded as non-beneficial for the
development for homebred luxury
brands. However, true giants never
reply on artificially high price lev-
el of competitors. We look forward
to seeing more Chinese brands
develop fueled by a stronger talent
pool and business transformation.
Table 1: Best Brand for Gifting by Men
Brand % Key Gifting Category Country
1 Louis Vuitton 13.9 Accessories France
2 Apple 8.9 Electronics US
3 Hermès 7.2 Accessories France
4 Chanel 6.7 Apparel, Accessories, Perfumes France
5 Cartier 5.6 Jewelry, Watches France
6 Gucci 5.0 Accessories Italy
7 Montblanc 4.9 Pens, Accessories Germany
8 Dior 3.9 Accessories France
9 Burberry 3.3 Apparel, Accessories UK
10 Château Lafite Rothschild 3.0 Alcohol France
11 Armani 2.9 Apparel, Accessories Italy
12 Prada 2.8 Apparel, Accessories Italy
13 Moutai 2.2 Alcohol China
14 Tiffany & Co 1.9 Jewelry US
15 Longines 1.7 Watches Switzerland
Source: Hurun Chinese Luxury Consumer Survey 2013
Table 1. Best Brand for Gifting by Men
Table 2: Best Brand for Gifting by Women
Brand % Key Gifting Category Country
1 Chanel 15.9 Apparel, Accessories, Perfumes France
2 Louis Vuitton 14.3 Accessories France
3 Cartier 11.1 Jewelry, Watches France
4 Tiffany & Co 10.6 Jewelry US
5 Apple 7.9 Electronics US
6 Montblanc 6.4 Pens, Accessories Germany
7 Gucci 6.0 Accessories Italy
8 Prada 4.8 Apparel, Accessories Italy
9 Dior 3.2 Accessories France
10 Burberry 1.6 Apparel, Accessories UK
Source: Hurun Chinese Luxury Consumer Survey 2013
Table 2. Best Brand for Gifting by Women
GENERAL BUSINESS
38. 38 Business Asia
V
isitors to India have been charmed by its local convenience
stores for decades. Escaping the sterile environment of corpo-
rate retail in the West, India’s disorganized, cluttered assort-
ment of shops have always been a delightful change, hearkening back
to a simpler time. However, under newly passed legislation, this is
all to change. After years of rumbling, India’s Parliament has finally
agreed to allow foreign retailers to enter the country. The change they
will bring will be momentous.
The thousands of these stores that decorate India’s towns and cities
have been passed down for generations. Despite the hustle and bustle
and changing face of today’s India, these small, independent stores
have maintained a connection to the past. Personal relationships have
Retail on the Subcontinent
“Of greatest concern
is the life expectancy
of these reforms”
“The thousands of these
stores that decorate
India’s towns and cities
have been passed down
for generations. “
Advai Pathak
Cornell University ‘15
School of Industrial and Labor Relations
39. Spring 2013 39
been cultivated between customer
and shop owner, often transcend-
ing generational gaps – a mer-
chant’s family business in many
cases has served the same custom-
er’s family as far back as memory
extends.
However, there are undoubt-
edly inefficiencies to this model.
Every year, over 30% of food pro-
duced in India spoils because of
its poor infrastructure and bad
hygiene practices. In a nation with
over 200 million under-nourished
people, this is a shocking statis-
tic. Many issues could be solved
through large-scale foreign direct
investment and more streamlined
and organized networks between
production and distribution.
The Indian government has
oscillated on this issue sever-
al times in the past decade. The
current solution is undoubtedly
a compromise and has received
criticism domestically and inter-
nationally. Legislative distinctions
have been made regarding multi-
brand and single-brand retailers-,
only 51% foreign ownership is
allowed in retail ventures, and half
of foreign companies’ investment
must be spent on infrastructure
development.
As such, there has been no
great scramble to invest in India.
The growing perception of India
as being an unfriendly climate for
foreign business is compounded
by other several other variables.
Contentious tax policies that
have led to protracted, high-pro-
file disputes with Shell, Nokia,
and Vodafone add another reason
for foreign investors to be wary.
Corruption and bribery scandals
exposed annually at all levels of
business and government reveal
a complex business environment.
Even national giants have been
forced to seek business abroad.
In 2011, Indian firms made $11
billionbn worth of foreign acqui-
sitions.
Of greatest concern is the
life expectancy of these reforms.
The opposition Bharatiya Janata
Party has threatened to rescind
the legislation if voted into power
and several members within the
incumbent Congress Party hold
similar opinions. With national
elections to be held next year and
after similar reform was suspend-
ed in 2011, foreign companies are
wary of making expensive inroads.
How India balances home
development with foreign invest-
ment will be key. Annual growth
has slowed by half and recent
debacles like last year’s mass
power outages and the organi-
zational mayhem surround-
ing the Commonwealth Games
have embarrassed the nation.
India needs foreign investment
to counter its growing current
account deficit and to facilitate
economic growth. Big brands have
struggled to gain footholds in the
Chinese market and local owner-
ship has survived alongside bigger
stores in Brazil. However, inves-
tors remain confident India can
embrace change and its younger
generations are eager for it. The
only certainty is that India holds
the keys to its own prosperity.
India needs foreign invest-
ment to counter its grow-
ing current account deficit
and to facilitate economic
growth.
GENERAL BUSINESS
40. 40 Business Asia
Asia Drives
International Student
Growth in
United States
N
owadays, more and more
foreign students are par-
ticipating in U.S. higher
education. There has been a tre-
mendous increase in internation-
al students in United States in the
past decade. Reports from the In-
stitute of International Education
(IIE) show that total international
student enrollment in the U.S. has
increased to a high record high
of 764,495 international students,
which contributed over 22.7 mil-
lion dollars to the U.S. econo-
my during the 2011/12 academic
year. Asia is a significant drive of
international student growth, as
shown by the graph. In terms of
places of origin, China is at the top
with more than 764,000 students,
making up 25.4% of total interna-
tional student population. Indian
students place second on the list
at 13.1%, whereas South Korea
and Saudi Arabia place third and
fourth at 9.5% and 4.5% respec-
tively.
Only 20 years ago, Asian stu-
dents only contributed a small
proportion of international stu-
dents. However, the recent growth
has been unprecedented. Why
are Asian students becoming so
interested in continuing their ed-
ucation in America? Various rea-
sons explain the drastic increase in
their participation in U.S. higher
education. First of all, the U.S. has
comprehensive resources in edu-
cation provided by different types
of institutions. There are National
Universities with majors across
different fields of study like Cor-
nell University, as well as Liberal
Arts Colleges with more specific
focuses like Parsons and The New
School for Design. There are pri-
vate schools and public schools,
and there are also community
colleges with much more afford-
able tuition fees. The wide range
of choices is one of the many ad-
vantages that attract international
students from Asia.
Second, the reported increase
is related to the active recruitment
efforts of U.S. schools. According
to a snapshot survey conducted by
IIE, 68% of the institutions indi-
cated that they have been actively
seeking new foreign additions to
their student population. Special
steps taken include devotion of
additional staff time and atten-
tion to international recruitment,
and new funding for international
recruitment trips. All of these ef-
forts have made college education
more accessible to international
students.
Thirdly, schools encourage
more international engagement
by providing help for internation-
al students to better adjust to the
campus environment. Schools
facilitate various programs de-
signed specifically for interna-
tional students. For example, at
Origins of international students studying in the U.S.
Mengtian Wu
Cornell University ‘15,
College of Arts & Sciences
LIFESTYLE
41. Spring 2013 41
Juniata College in Pennsylvania,
incoming freshmen can partic-
ipate in the InBound program,
which unites small groups of stu-
dents around commons interests.
The program aims to preempt the
natural inclination of students to
bond only within their own cul-
ture groups, i.e. Asian circles, and
build more interaction with do-
mestic students. At Cornell Uni-
versity, international students are
recommended to participate in
a three day pre-orientation pro-
gram called “PREPARE”, during
which they not only get to inter-
act with upper-class international
and American students and learn
about their experience at Cornell,
but also make friends through so-
cial activities.
Despite all the efforts and
changes encourage international
students to attend colleges in the
U.S., Asian students are facing a
substantial amount of difficulty
in the U.S. university campuses. A
majority of them are not eligible
to receive financial aid from the
U.S. government and scholarships
are extremely limited. As a result,
personal or family funds are the
primary source of tuition. The U.S.
college tuition could be a strong
financial burden for families with
middle or low income. The av-
erage expenses of both public
schools and private schools have
been increasing tremendously
over the past ten years, shown by
the graph above. According to Na-
tional Center for Education Sta-
tistics of U.S. Department of Edu-
cation, for the 2010–11 academic
year, annual current dollar prices
for undergraduate expenses in-
cluding tuition, room, and board
were estimated to be $13,600 at
public institutions, $36,300 at pri-
vate not-for-profit institutions,
and $23,500 at private for-profit
institutions. A report by Daniel
Obst and Joanne Forster from In-
stitute of International Education
states that the U.S. Department
of Commerce ranks international
education as the 5th largest service
sector export. This huge benefit
on the U.S. economy is one of the
major incentives for the U.S. gov-
ernment to promote U.S. higher
education to accept more interna-
tional students.
In addition, language and
cultural barriers are also major
problems. International students
from Asia, especially those from
non-English speaking countries,
lack proficiency in English lan-
guage and communication, which
could make both professional pur-
suits and social life difficult. Fur-
thermore, according to the study
Understanding the Collegiate Ex-
perience for Asian International
Students, Asian students always
face external pressures from fam-
ily – they are expected to obtain
well-developed education and
achieve prestige from attending
an U.S. institution; thus they tend
to be a highly stressed group on
campus. “China’s one child pol-
icy,” says Peggy Blumenthal, se-
nior counselor to the president at
IIE, “has led to a situation that re-
sources are being concentrated by
families on a single child, thereby
allowing them to get the best ed-
ucation they can get.” The strong
undivided attention and high ex-
pectations of parents put more
stress on Asian students.
The emerging popularity of
Asian students pursuing high-
er education in the U.S. has been
both culturally diversifying the
U.S. campuses and actively con-
tributing to economic develop-
ment. With the active support giv-
en to international students from
U.S. colleges and government, the
overall trend of Asian interna-
tional students in U.S. schools is
expected to increase at even faster
rate in the future.
LIFESTYLE
42. 42 Business Asia
T
he thought of India con-
jures up the thoughts of
bring yellow rays of light
percolating across the pearly, white
Taj Mahal. It also contrives images
of the mighty Ganges River, each
rippling wave carving the deli-
cate mud around as it continues
to flow. It even creates thoughts of
the powerful monsoon winds cre-
ating harmonic flute-like sounds
as they pass through bamboo. But
these strikingly beautiful images
are contrasted sharply with recent
events occurring in the country,
particularly its capital. A recent
rape case has started to mold a new
and vicious view of India, with
many people terming Delhi as the
“rape capital.” The idyllic scenes of
India are being replaced by dark,
grimy acts of sin—a change most
Indians, including myself, are re-
senting.
A few months ago, a young
23-year-old female physiother-
apist was raped on a New Delhi
public bus that the many of the
cities 16 million inhabitants trust
and rely on to get to work, the
movies, and the town markets. She
and her boyfriend boarded the bus
after watching a movie together.
Everything was going as planned
until the six remaining men on the
bus began to lock the door. Next,
the bus began to veer of its usual
course, invoking suspicion. The
six men then began to insult the
young lady for being with a man
so late at night, provoking a fight
with the boyfriend. The boyfriend
then charged at the men and was
promptly struck across the skull
with a metal rod, knocking him
unconscious.
This is when the cruel and
twisted nature of humanity began
to unveil itself in which the atroc-
ities of six men shook a nation of
one billion. The driver then gave
the wheel to another accomplice,
and started to rape the innocent
girl who rushed to her boyfriend’s
aid. The five men took turns rap-
ing her—a concept known as
“gang rape” while the bus circled
the crowded city streets. The poor
woman’s agony did not end there;
she literally faced pure hell when
the five men then inserted a metal
rod it in her vagina so deep that it
damaged her internal organs. The
couple was then ejected from the
bus, lying abandoned on the street
for hours until a passerby noticed.
India’s Image,
from the Taj to Rape
Ajay Kailas
Cornell University ‘13
College of Agriculture
and Life Sciences
“This is when the
cruel and twisted
nature of humanity
began to unveil
itself in which the
atrocities of six
men shook a nation
of one billion.”
LIFESTYLE
Citizens of Delhi holding candles at a vigil for the girl
43. Spring 2013 43
After arriving at a hospital the
couple was able to give statements
to the police on what happened.
The boyfriend was released with
only minor damages. However,
the woman’s condition began to
deteriorate rapidly and she was
rushed to a Singaporean hospi-
tal which specialized in multi-
ple-organ transplant. Doctors
noted that the rod was inserted
with such force that it pulled out
a large amount of her intestines
in the process. Two days later, she
died, despite receiving emergency
treatment and mechanical ventila-
tion. The news pulled at the heart
strings of the woman’s family and
the country became drenched in
disbelief. People all over India be-
gan to riot and protest against this
gruesome rape and also push for
harsher penalties for rapes all over
the country. Rape is too common
in India, as a rape is reported ev-
ery 20 minutes and only 26% of
cases result in a conviction. This
event was the gasoline in the fire
of justice that was burning uncon-
trollably as men and women alike
began to feel unsafe in their own
city.
The six men were caught and
charged with murder. One of the
men, a 17-year-old, will be tried
in a Juvenile Court in which the
maximum sentence is three years.
Authorities are pushing for the
death penalty for the men, who are
currently awaiting trial. The dis-
gusting act the six men committed
shows us the animosity of human
kind; I feel incredibly sorry for
the woman. As a physiotherapist
she had incredible potential and
her life was cut short by savagery.
She was from India’s rising mid-
dle class and her parents had in-
credible dreams and expectations
that are now dashed into pieces.
Furthermore, this case (although
particularly cruel) is among many
rape cases rising across the coun-
try. This case brings light to fu-
ture policy and legislation and has
called for change in India’s sexual
assault policy. Men like those are
a breed that is instilling a horrid
reputation of our country. Al-
though I am not a proponent of
the death penalty, some cases are
too extreme to ignore.
Since the initial attack, all of
the men are currently in jail await-
ing prosecution, however one of
the “men” who was arrested, is 17
years-old and cannot be tried as
an adult. Instead he will be tried
as a minor can only be sentenced
to a correctional facility until he
turns 18. Furthermore, one of the
accused, Ram Singh, had recently
committed suicide in prison, al-
though some of his family mem-
bers claim he was murdered. The
lawyers of the accused are current-
ly arguing that their clients are not
receiving a fair trial because of the
drama of the nature. The lawyers
are so engulfed in meetings and
press, that they can barely with
their clients to update them and
argue their clients do not even re-
alize they may get the death pen-
alty.
Recently, two of the accused
asked to proceed with the trial
in Hindi, but this was refused by
the Police because they called it a
stalling tactic since there are many
accounts and eyewitness state-
ments that will have to be translat-
ed. Regardless of the outcome of
the trial however, this has resulted
in strong change across India. On
March 19th, 2013, the Indian Par-
liament passed a new bill which
allows the death penalty for rape.
This is a powerful legislative move
and hopefully will prevent future
rape cases and allow India to final-
ly power through the grimy waves
of crime and become the glorified
nation it once was.
Street of Delhi
“Rape is too common in India, as a
rape is reported every 20 minutes
and only 26% of cases result in a
conviction.”
LIFESTYLE
44. 44 Business Asia
The Asian World
of Real Estate Capital
Interview with Robert M. White, Founder and President of Real
Capital Analytics
Timothy Lin
Cornell University ‘14
Masters of Professional Studies in Real Estate
R
obert M. White, Jr., CRE, is
the founder and president
of Real Capital Analytics
Inc., an international research
firm that publishes the Capital
Trends Monthly. Real Capital
Analytics provides real time data
concerning the capital markets for
commercial real estate and the
values of commercial properties.
The firm maintains offices in New
York City, San Jose (CA), and
London. It has about 800 clients,
including the industry’s leading
brokerage firms, institutional
advisors, REITs, developers, for-
eign investors and banks.
Mr. White is a noted authority
on the real estate capital markets
with credits in The Wall Street
Journal, Barron’s, The Economist,
Forbes, The New York Times,
Financial Times, among others.
In addition, he was named one of
National Real Estate Investor mag-
azine’s “Ten to Watch” in 2005,
Institutional Investor’s “20 Rising
Stars of Real Estate” in 2006, and
Real Estate Forum’s “10 CEOs to
Watch” in 2007. Previously, he
spent 14 years in the real estate
investment banking and brokerage
industry and has orchestrated bil-
lions of commercial sales, acquisi-
tions and recapitalizations. He was
formerly a managing director and
principal of Granite Partners LLC
and spent nine years with Eastdil
Realty in New York and London.
Mr. White is a Counselor of
Real Estate, a Fellow of the Royal
Institution of Chartered Surveyors
and a Fellow of the Homer Hoyt
Institute. He is also a member
of numerous industry organiza-
tions and a supporter of academic
studies. He is a graduate of the
McIntire School of Commerce at
the University of Virginia.
Background
Masters of Professional Stud-
ies in Real Estate students
with Mr. Robert White (3rd
from left) and Mr. Dan Fasulo
(5th from left) from RCA
INTERVIEW
45. Spring 2013 45
Q1: Could you tell us about
your observations on Asian real
estate capital over the past 5 to 10
years?
A1: The flow of capital from
east to west has never been greater
in recent times. There has been a
growing pool of capital in-flows,
particularly from the pension
funds of Japan, South Korea, Chi-
na and Australia. After the 2004
tsunami which hit Japan, there
was a noticeable increase in the
amount of Japanese capital inflow
into the U.S. – as Japanese inves-
tors wanted greater geographical
diversification for their invest-
ments. I believe this is just the
tip of the iceberg. The amount of
Chinese capital flowing into the
U.S. alone has been enormous.
The actual figure is difficult to tell
because unlike the Japanese in the
1980s, the Chinese today are using
“proxies” such as fund managers
to carry out the transactions.
In terms of international real
estate capital flowing to Asia, in-
vestment in emerging markets
mainly started gaining traction
only around 2005. Initial exposure
was through established financial
institutions and investment firms,
as part of their funds’ global diver-
sification strategy. This peaked in
around 2007. However, by 2008-
09, western capital as a group be-
came net sellers, possibly due to a
fear of a “hard landing” in China
and other major Asian markets.
The situation has improved a little
since then.
Interview
INTERVIEW
46. 46 Business Asia
Q2: What are the typical as-
set classes Asian investors look
for in the United States? How are
they different from those of local
investors?
A2: 10% of all capital invest-
ment in real estate in the U.S.
comes from a foreign source. This
figure varies across geographical
regions in the U.S., with the figure
being up to 40% in Manhattan. In
central London, it is 65%. Asian
investors tend to be focused on
prime, trophy properties in gate-
way cities, from office properties
to retail space and hotels. This
may not be much different from
local investors, but foreign inves-
tors appear to be more willing to
bid aggressively to gain control of
such assets.
Q3: Which cities in Asia have
attracted the greatest interest
from global investors, and why?
A3: By dollar value, China has
become the absolute favorite in
the Asian real estate market place.
However, most of the capital is go-
ing towards development projects
rather than acquisition of existing
properties. In terms of acquisi-
tions, the typical favorites are To-
kyo, Singapore, Hong Kong and
Sydney – due to their relatively
transparent property markets, ease
of liquidity and diverse choices of-
fered. It is noteworthy too that we
are seeing trends of Chinese mon-
ey outbidding western capital in
major Asian cities in recent times.
Q4: Have real estate capital
flows become more volatile over
the years? Has this had a signif-
icant impact on real estate mar-
kets?
A4: By overall quantum, glob-
al real estate transaction volumes
are recovering to 2007 levels.
However, there appear to have
been a shift in terms of the geo-
graphical locations where real es-
tate transactions are taking place.
Pre-crisis, the volume was con-
centrated mainly in the Americas
and EMEA. However, since 2009,
transaction volumes have consis-
tently been higher in the Asia Pa-
cific region. It would be interesting
to continue observing this trend
going forward.
Q5: Post-2008/09 financial
crisis, what trends in real estate
capital have emerged?
A5: Besides an overall shift in
the transaction volume from west
to east, it has been observed that
capital emerging from the finan-
cial crisis flowed quickly to mar-
kets perceived to be the safest,
like London, New York and Hong
Kong. In fact, investors who were
able to make these moves early
reaped significant benefits within
a couple of years. There is a con-
sensus among investors that the
liquidity characteristic of prime
markets gives it an “added pre-
mium”. In fact, there is so much
demand from capital in these
markets especially in the past 12
months that players are beginning
to move into secondary markets.
Q6: What trends do you see
for global real estate capital flows
within the next 5 to 10 years?
A6: Real estate has been a true
global asset class for only 10 to 15
Pre-‐crisis,
the
volume
was
concentrated
mainly
in
the
Americas
and
EMEA.
However,
since
2009,
transaction
volumes
have
consistently
been
higher
in
the
Asia
Pacific
region.
INTERVIEW