Can the economic crisis do what the past 60+years hasn't been able to do ... namely allow three WWII scarred countries to work together? Past meetings have been merely symbolic, with distrust tainting any real outcomes.
Saturday's Fukuoka, Japan, meeting was the first ever trilateral summit. Observers may have thought the meeting was vague, with promises for stimulating the economy and committing to no new trade barriers for the next year.
Yet, just the meeting alone is significant as the three nations, who have barely tolerated one another due to residual emotion and economic rivalries, came together in solidarity.
The most specific summit outcome is that Japan and China agreed to lend foreign currency to S. Korea. S. Korea has struggled the most with the crises. The three countries comprise 75% of the east Asian economy.
The next summit is scheduled for next year in China.
http://english.aljazeera.net/news/asia-pacific/2008/12/200812138361719177.html
http://www.nytimes.com/2008/12/14/world/asia/14japan.html
http://english.aljazeera.net/news/asia-pacific/2008/12/200812138361719177.html
http://hosted.ap.org/dynamic/stories/A/AS_JAPAN_TRILATERAL_SUMMIT_ASOL-?SITE=YOMIURI&SECTION=HOSTED_ASIA&TEMPLATE=ap_national.html
Showing posts with label S. Korea. Show all posts
Showing posts with label S. Korea. Show all posts
Sunday, December 14, 2008
Tuesday, December 2, 2008
Credit lessons
Most rural Chinese don't know what a credit card is. Yet, to make up for a drop in exports, the Chinese government is encouraging the population to spend to stimulate the economy. They may want to look to South Korea and temper their approach.
In 1999, S. Korea's government worked to get their tightfisted population to borrow and spend to grow the domestic economy. By 2003, S. Korean households had a $2,000 debt average.
Today, at 66% of gross domestic product, S. Korea's household debt is one of the largest in the world. The good news is the delinquency rate is low, a mere 0.5%.
Confucian influenced societies are proud of their habit of saving, and the disgrace of debt is enormous. Chinese farmers compete over who can save more of their income, sometimes saving two-thirds to one-half of their $2,200 annual income.
It'll be interesting to see how vigorously China approaches credit and spending as their economy contracts.
Sources:
http://www.time.com/time/magazine/article/0,9171,552170,00.html
http://www.nytimes.com/2008/12/03/world/asia/03china.html
Wall Street Journal, November 29-30, 2008, p. A5.
In 1999, S. Korea's government worked to get their tightfisted population to borrow and spend to grow the domestic economy. By 2003, S. Korean households had a $2,000 debt average.
Today, at 66% of gross domestic product, S. Korea's household debt is one of the largest in the world. The good news is the delinquency rate is low, a mere 0.5%.
Confucian influenced societies are proud of their habit of saving, and the disgrace of debt is enormous. Chinese farmers compete over who can save more of their income, sometimes saving two-thirds to one-half of their $2,200 annual income.
It'll be interesting to see how vigorously China approaches credit and spending as their economy contracts.
Sources:
http://www.time.com/time/magazine/article/0,9171,552170,00.html
http://www.nytimes.com/2008/12/03/world/asia/03china.html
Wall Street Journal, November 29-30, 2008, p. A5.
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