Economics
Regulating agribusinesses: What are the trends in developing East Asia?
The pace of economic development throughout developing East Asia has been unprecedented. Despite the effect of the 1997-98 financial crisis, poverty rates in the region have been consistently declining.
Agriculture played a key role by driving growth in the early stages of industrialization. It also contributed to reducing rural poverty by including smallholders into modern food markets and creating jobs in agriculture. Nonetheless, poverty in developing East Asia is still overwhelmingly rural, reflecting a mismatch between agriculture’s shares of GDP and employment.
Source: Authors’ calculations based on WDI data.
As incomes rise and countries urbanize, the composition of domestic food expenditure is shifting from staples to meat, horticulture and processed foods. Thus, while today’s East Asian developing economies transform, the nature of their agricultural sectors is also changing.
Regulation can affect the speed of such transformation and determine the pathways of agricultural development in the years to come. It is a key business environment component due to its impact on costs, risks and barriers to competition in the agricultural value chain. Agricultural production has unique dimensions through which it interacts with relevant laws and regulations. These include agricultural inputs such as seed and fertilizer, and access to finance and markets. By setting the right regulatory framework, governments can help increase the competitiveness of farmers and agribusinesses, enabling them to integrate into regional and global markets.
Measuring regulations
The World Bank Group’s Enabling the Business of Agriculture (EBA) project measures regulatory good practices and transaction costs affecting agribusinesses. EBA indicators cover a range of regulatory domains pertaining to seed, fertilizer, agricultural machinery, water, access to markets, finance, transport, information and communication technology (ICT). For each of these areas EBA indicators provide an aggregate picture of how supportive regulation is for agribusinesses. A newly released policy note analyzes seven East Asia and Pacific countries including Cambodia, Lao PDR, Malaysia, Myanmar, Thailand, the Philippines, and Vietnam.
EBA indicators assess regulation on two complementary dimensions. On the one hand, legal indicators reflect the number of regulatory good practices that countries enact to correct market failures. This may include, for example, plant protection regulations or labelling requirements for fertilizers. On the other hand, efficiency indicators measure the transaction costs regulations impose on businesses such as time and cost to register a tractor or obtain a trucking license.
Most regulatory constraints to agricultural development in East Asian economies pertain to the legal dimension, where the region scores second to last.
Note: OECD- High income OECD countries, LAC – Latin America & Caribbean, ECA- Europe & Central Asia,
MENA-Middle East & North Africa,…
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
Business
Yakult Unveils Restructuring Plans for Its China Operations | ESM Magazine
Yakult reorganized its China operations, dissolving the Shanghai subsidiary while opening a new branch. Manufacturing now consolidates at Wuxi and Tianjin plants, aiming for enhanced efficiency and growth.
Yakult’s Business Reorganisation in China
Yakult has announced a significant reorganisation of its operations in China, aiming to enhance competitiveness and sustainability. The company has dissolved its wholly-owned subsidiary, Shanghai Yakult, which previously managed manufacturing and sales functions. This strategic move is expected to streamline its operations in the Chinese market.
New Branch and Manufacturing Adjustments
Yakult’s head office in China has established a new branch in Shanghai, transferring the sales division from Shanghai Yakult to this location. As of December 6, the branch has started selling various products, including Yakult and its light variants. Meanwhile, the manufacturing plant in Shanghai has ceased operations, with production capacity now absorbed by the Wuxi and Tianjin plants to ensure efficient supply.
Commitment to Growth
The company remains steadfast in its dedication to the Chinese market and is optimistic about future growth. Yakult reassured stakeholders that the reorganisation will have minimal financial impact and aims to enhance efficiency. Founded in 2005 in Shanghai, Yakult China currently employs approximately 2,216 individuals, reinforcing its commitment to customer health and expanding operations.
Source : Yakult Announces Reorganisation Of China Business | ESM Magazine
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