Economics
Second-generation capacity development: A story of Malaysia-Laos knowledge exchange on reforming civil service
What do you imagine when you hear the words “capacity development”? Most development professionals associate capacity development with training, seminars and perhaps study tours. Most of the countries the World Bank works in require a significant boost in their capability to implement policies, programs and projects, especially in countries supported by the Bank’s fund to the poorest, International Development Association (IDA).
For training to be sustainable and have high impact, it should be targeted to a particular public sector problem, and coupled with initiatives to improve organizational and institutional capacity.
There is now a model of capacity development via knowledge exchanges. The World Bank Knowledge and Research Hub in Malaysia specializes in bringing the country’s development experience to other countries, both in the ASEAN and globally. This works best when the Bank has an existing engagement in a country, so that the knowledge exchange can be tailored to a particular issue that the government is trying to solve.
Using this approach, the World Bank Governance and Macro Fiscal Management teams conducted a knowledge exchange between Malaysia and Lao PDR.
Our Lao counterparts are grappling with how to improve the management of the civil service, contain their wage bill, and create a more performance-oriented civil workforce. The wage bill currently represents an estimated 8.4 percent of GDP, which is significantly higher than its ASEAN peers. At the same time, public sector employment reached an estimated 2.8 percent of the population, which is well above the 1.1 percent global average for developing countries. With the current fiscal challenges, including a fiscal deficit of around 6 percent of GDP in fiscal year 2015-2016 and a public debt increasing to around 70 percent of GDP, such a large wage bill is unlikely to be affordable.
The World Bank is providing advice in this area through its ongoing Public Expenditure Analysis, and during this process, the Lao PDR government specifically requested to learn about how other countries have dealt with similar problems.
The World Bank team in Vientiane reached out to the Kuala Lumpur-based colleagues to see if Malaysia could offer a relevant example for Lao PDR. Over the past decades, Malaysia has instituted a number of reforms focused on increasing performance orientation of its civil service. It has also introduced measures such as early exit for civil servants to help constrain the high wage bill. Today, Malaysian authorities continue to face many issues similar to those of their Lao counterparts, while having experimented with various reform measures and gleaned valuable lessons.
To better understand the civil service reform issues in Lao PDR, the World Bank’s Malaysia-based team met with the team in Vientiane. They then worked with the Malaysian Public Service Department to identify the right officials to travel to Vientiane to share their experience with the Lao PDR Ministry of Home Affairs (MOHA) and Ministry of Finance (MOF), as well as to adapt their presentations…
Business
News Update: China’s Stimulus Falls Short; Sensex and Nifty Decline; Bitcoin Surges Over $82,000
Asian markets showed mixed trends amid China’s stimulus measures and disappointing inflation data. Meanwhile, Indian equities remained stable, with mutual fund inflows rising. Bitcoin surged following Trump’s presidential win.
Business Hook Daily News Podcast
Good evening! Welcome to Business Hook’s daily news podcast. I’m Avni Raja, and today is November 11, 2024. Let’s dive into the day’s top business stories.
Market Reactions and Economic Data
Asian markets experienced a mixed session as investors digested new economic data and stimulus measures from China. The Chinese government announced a $1.4 trillion package targeting local government debt, although analysts deemed it underwhelming. October’s inflation rate of 0.3% fell short of estimates and declined for the second month in a row. As a result, the CSI 300 saw a slight gain, while Hong Kong’s Hang Seng dropped over 1.5%. In India, the Sensex closed below 74,500, and the Nifty ended above 24,100, with a majority of Nifty stocks declining.
Mutual Fund Inflows and Upcoming IPOs
There’s encouraging news in the mutual fund sector, with October seeing net inflows of 2.4 lakh crore rupees, reversing the previous month’s outflows. Record equity inflows have risen to nearly 42,000 crore rupees, reflecting robust domestic investor confidence. In the IPO space, LG Electronics prepares to raise $1.5 billion by listing its Indian arm, with banks like Axis Capital involved in the process, potentially leading to an IPO as early as 2025.
Cryptocurrency Surge
In cryptocurrency news, Bitcoin has achieved new highs, surpassing $82,000. This surge is attributed to Donald Trump’s recent presidential victory, which has favored cryptocurrencies compared to more cautious Democratic approaches. Experts speculate that Bitcoin could surpass $90,000 soon. That’s all for today’s wrap-up. Join us again tomorrow, and check out the Business Hook YouTube channel for more updates.
Source : News Wrap | China Stimulus Disappoints; Sensex & Nifty Slip; Bitcoin Soars Past $82,000
Business
Henry Keswick: The Jardine Scion Who Transformed China’s Business Landscape
Henry Keswick, 86, a key figure in Jardine Matheson, passed away as the U.S. awaited election results, amid heightened tensions in U.S.-China relations during Trump’s presidency.
Henry Keswick’s Legacy
HONG KONG — The world turned its attention to the U.S. presidential election as news broke of Henry Keswick’s passing at the age of 86. A fourth-generation member of the British conglomerate Jardine Matheson, Keswick had a profound influence on the company, which has deep roots in Asia.
Navigating Challenges
Keswick’s leadership spanned significant challenges, including a strained relationship between the U.S. and China, particularly as Donald Trump prepared for his return to the White House. Under his stewardship, Jardine Matheson navigated a complex landscape in retail and real estate that dovetailed with geopolitical shifts.
A Lasting Impact
His contributions to Jardine Matheson and the broader business community have left an indelible mark. As companies reposition themselves amidst evolving international dynamics, Keswick’s legacy will undoubtedly continue to shape the future of the conglomerate he led.
Source : Henry Keswick, the Jardines scion who razed then restored China business
Business
Faurecia Relocates Electronics Headquarters from Japan to China – Automotive News
Faurecia relocates its electronics business headquarters from Japan to China, signaling a strategic shift to enhance operational efficiency and strengthen its presence in the growing Chinese automotive market.
Faurecia’s Strategic Shift
Faurecia has announced the relocation of its electronics business headquarters from Japan to China. This move is aimed at enhancing the company’s presence in a rapidly growing market for automotive technologies. By shifting its base, Faurecia intends to optimize operations and better serve its clientele across Asia.
Strengthening Market Position
The decision is part of Faurecia’s strategy to consolidate its resources in regions where electric and hybrid vehicle demand is soaring. As China leads the global automotive market in innovative technologies, the relocation will allow Faurecia to align its efforts with industry trends and consumer needs.
Future Aspirations
With this strategic shift, Faurecia aims to drive innovation and expand its production capabilities in China. The company expects this decision to create new growth opportunities and help solidify its competitive edge in the evolving automotive landscape.
Source : Faurecia moves headquarters of electronics business from Japan to China – Automotive News
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