Asia-Europe Foundation (ASEF) 31 Heng Mui Keng Terrace Singapore 119595 T: +65 6874 9700 F: +65 6872 1135 asef.org
ISBN 978-981-08-7089-8 2
Chripa Schneller and Sean Golden (eds.) 3
Table of Contents
Foreword About the Asia-Europe Education Workshops I. Introductory Paper II. Workshop Summary III. Recommendations IV. Annexes Programme List of Participants Workshop Presentations and Papers (on CD for print version) About the Authors About the Asia-Europe Foundation (ASEF) About the ASEM Education Hub (AEH) Acknowledgements
6 7 8 25 43 46 46 52 54
It is worth mentioning that higher education has played an important role in facilitating the process of globalisation, particularly in the integration of developing and emerging economies to the global production networks. The more recent global financial crisis has not stopped this process. Rather, it has hit all economies – still struggling to recover – to varying degrees, with a bearing on higher education as well. To get a better understanding of the ways and the degree in which the crisis has affected higher education, the 1st Asia-Europe Education Workshop entitled “The Impact of the Financial Crisis to Higher Education” was jointly organised by the ASEM Education Hub (the flagship programme of the AsiaEurope Foundation that facilitates and promotes co-operation among higher education stakeholders in Asia and Europe) and the Asian Institute of Management (AIM) in the Philippines. On March 25-26, 2010, twenty experts from the fields of education and finance from Asia and Europe convened at the AIM premises in Makati City, to discuss the implications for higher education in ASEM countries and to create a ‘reliable snapshot’ of the situation of higher education institutions after the crisis in terms of experiences, consequences, measures, lessons learned and good practices. Arising from the discussions and debates during the Workshop, the present publication, the first in a series of Asia-Europe Education Reports, will provide inputs to two of ASEF’s upcoming initiatives to be organised in October 2010 - the ASEM VIII Heads of State Summit (Brussels) and the 2nd ASEM Rectors’ Conference (Korea). The book features analysis from experts in the fields of education and economics on lessons learnt, issues to be further addressed at ASEM level, and best practices in Asia and Europe during the recent global financial crisis. The publication comprises of the following sections: 1. An introductory paper in preparation for the workshop; 2. A summary of the main discussion lines of the event; and 3. The recommendations by the expert group. I would like to commend the AEH team and the participants of this workshop for their strong commitment to the start of the series of the Asia-Europe Education Workshops and for a successful first event. Special acknowledgement goes to Ms. Chripa Schneller and Dr. Sean Golden, the editors of the Report. I am...
...Impact of Ongoing FinancialCrisis on UK
The ongoing global financialcrisis that have shaken the economic conditions of various countries made its own way to affect the economies from middle of 2007 and has been carried on into the year 2008. In these days the world has witness the fall of many stock markets and the collapse of mammoth financial institutes. At the same time the government of the most developed economies had to start the rescue programme for the revival of the financial systems.
This crisis was nothing but the burst of an economic bubble that had been showing an upswing. The sub-prime of the European mortgage market collapsed smashing down the previous housing boom in American economy and it brought about a raffle effect around the world especially the countries which had higher degree of economic connection with the American economy. (Shah 2009)
According to the World Economic Outlook, published by International Monetary Fund on 8th October 2008, the world economy was approaching towards a severe economic downturn due to the most severe economic shock since the “Great Depression” of 1929. Fund anticipated a decline in global growth (basis: purchasing power parity) by 3 percent in 2009. (Shah, 2009)
The Crisis and the British Economy:
In January 2009, the world economists predicted that among the highly...
...The Impacts of Global FinancialCrisisFinancial systems can contribute to economic development by providing people with useful tools for risk management, such as credit for productive investments, instruments for saving and insurance, and payments services. At the same time, when financial institutions fail to manage the risks they retain, they can create severe financial crises with devastating social and economic effects, especially for the world’s most vulnerable people.
Crises can hit hard the weakest members of the society, particularly the poor, elderly, young, and women, who are not well-equipped to cope with the consequences of rising prices, eroding savings and asset values, loss of jobs, and reduction in core public services, such as social welfare, health care, and education.
The global financialcrisis that has shaken the world economy since late 2007 has transformed the lives of many individuals and families beyond imagination. The bankruptcy of a US investment bank, Lehman Brothers, in 2008 turned a severe credit crunch into the worst financialcrisis since the Great Depression, resulting in an unprecedented dislocation in financial markets and damaging stability and confidence in many advanced financial systems.
The unprecedented pouring of financial support...
...3.7 Impact of Global FinancialCrisis on Australian Economy
The effect of the global financialcrisis on Australia has been considerably less, compared to the other affected countries. The Australian economy has revealed better outcomes than most other developed economies, which experienced recessions and rises in unemployment. Also the Australia banks have managed to be profitable without requiring any capital injection from the Government.
The noticeable collision of the financialcrisis on most Australian households was the large decline in equity prices, “which reduced the wealth of Australian households by nearly 10% by March 2009. However, since the trough in equity markets in March 2009, the local market had recovered half of its decline by the end of November 2009.”
The Australian dollar also depreciated rapidly and sizeably as the crisis intensified, declining by over 30 per cent from its July 2008 peak. Around the time of the Lehman bankruptcy, conditions in the foreign exchange market were particularly illiquid, prompting the Reserve Bank of Australia (RBA) to intervene in the market to enhance liquidity. Since March 2009, as fears abated, the Australian dollar largely recovered, reflecting the relative strength of the Australian economy.
The credit and money markets in Australia have also proven to be more resilient than in many other...
...sentences in your own words, what were the causes of the recent Global Financial Crises of 2008-2009? Explain how it all started and what happened.
The financialcrisis of 2008-2009 has been largely and mainly attributed to the paralysis and failure of credit industry including mortgages. People were described to be using money that they don’t have, and the failure to repay such debts led to the collapse of the market. Fund sources became dried up because the rate of spending was not compensated by the rate of returns. The availability of “cheap money” due to credit lines allowed the creation of high demand for the same thing which then caused inflation. This also led to the fall and bankruptcy of different banks which needed bailouts from the government, or merging with other institutions in order to survive. The fall of the housing business also contributed to the financialcrisis. More people defaulted on their mortgages which resulted to availability of more houses which increased the supply and then lowering the cost. However, the banks who invested in housing also borrowed the money – but due to low demand in properties and its low cost, they don’t have the ability then to repay what has been lost. This phenomenon rippled into other financial domains resulting to the financialcrisis observed in 2008.
2. Explain using 5-10 sentences what were the...
...http://nber.org/books/ito_05-1 Conference Date: September 5-7, 2003 Publication Date: August 2005
Title: The Effects of Financial Crises on International Trade Author: Zihui Ma, Leonard Cheng URL: http://nber.org/chapters/c0196
8 The Eﬀects of Financial Crises on International Trade
Zihui Ma and Leonard K. Cheng
8.1 Introduction The world suﬀered three major ﬁnancial crises in the last ten years, namely, the European Monetary System (EMS) crisis in 1992–1993, the Mexican crisis in 1994–1995 (which spread to a number of South American countries), and the Asian crisis in 1997–1998. Economists usually believe these crises were the results of weak economic fundamentals, for examples, declining foreign reserve, increasing foreign debt, capital account and current account deﬁcits, ﬁscal deﬁcit, and so on. Obviously, a current account deﬁcit can be a very important factor because, other things being equal, it increases foreign debt, decreases foreign reserves, and weakens conﬁdence in the exchange rate of the domestic currency. Almost all countries that suﬀered ﬁnancial crises had faced rising current account deﬁcits before the crises occurred. So such deﬁcits are widely regarded as an important factor of ﬁnancial crises. International trade links play an important role in the so-called contagious eﬀect, that is, a crisis in one country...
1 The 2008 global financialcrisis
The effects on the U.S. economy have by now been widely analysed and dissected, so several economists have focused on the influences of other countries. Mishkin (2011) pointed out that the inner link between countries’ financial systems was tighter than previously realized. Naudé (2009) studied the correlation between the 2008 financialcrisis and the developing countries and proposed that some developing countries were less affected and they had the possibility of recovering through the process of advancing (IMPROVING) their financial system.
The Global FinancialCrisis also affected the real economy. Bank failures not only increased the unemployment rate but also affected the normal production of auto, steel and other U.S. economic pillar industries. Furceri and Zdzienicka (2011) described the effect on European economies was obvious and everlasting. Bran, et al (2011) pointed out that American financialcrisis has exposed the drawbacks of liberal capitalism. After the crisis, the U.S. government strengthened macroeconomic regulation and control by took (TAKING) over a number of financial institutions and corporate entities. Besides, financialcrisis shocked the international community’s confidence in dollar and the...
...The impact of the financialcrisis on Africa
By Eric Essuman Duodu
Most Africa countries had enjoyed steady but minimal economic growth in the last decade partly due to lack of good governance and accountability. Nonetheless, the emergence of the Western financialcrisis has further deepened the economic woes of third world countries.
2. Many were of the view that the impact of thecrisis on the continent would be minimal because of African’s limited integration in the global market but the effects are gradually becoming significant.
3. I would attempt to highlight the following facts to support the above assertions.
a. The financialcrisis has lead to job cuts and in turn has caused an increase in unemployment in most Western countries, notably Europe, which is the destination of most African migrants. Subsequently, this development has caused a decrease in the capital inflow in the form of remittances which accounts for a significant measure of the well-being of the African populace and the economic growth as a whole. Accordingly to a report from the Committee of African Finance Ministers and Central Bank Governors established to monitor the crisis (March 21, 2009), foreign remittances have been steadily falling in Kenya since October 2008 from USD 61 million to USD 39 million in January 2009 and inflows from tourism...
...The taxation policies under the Global FinancialCrisis in UK
Outline of essay
Since the beginning of 2008, because of the wake of the financialcrisis, the global economy has been suffering the severe damage. In October 2008, the WORLD ECONOMIC OUTLOOK published by the International Monetary Fund (IMF) illustrated that suffering the financialcrisis, the world economy was entering a serious period of downturn. While in the latest outlook in April 2013, it is illustrated that the environment of global economic has improved, however, the road to recovery to the economic strength has before been still rough. Each country has created a series of measures to curb the spread of the crisis. Meanwhile, the UK government has issued a series of complete, systemic tax policy to respond to shocks of the financialcrisis which leads to a better result in 2013 which is grew 0.6% in the three months to June.
In spite of other policies, the taxation policy plays an important role in the economy. Therefore, what categories and effects of taxation policy in the meantime are valuable to evaluate.
In order to make the best of considering the full aspects of taxation policy of China and UK, this essay will be divided into three parts, first of all, the main causes and the effects of the financialcrisis will be included....