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-DemystifyingIndiasBudgetfor2013-14-TheGhostofMaoandConfuciusbehindtheInternetCensorshipin
China
-ASEANsEconomicIntegration(Part2)TheFortnightInBrief(4thMarchto17thMarch)
US:Recoveryvs.Sequestration
TheFebruaryjobsreportreleased8Marchsawnon-farmpayrollemploymentincreaseby236,000jobsinprofessionalandbusinessservices,buildingandhealthcare,furtherpushingunemploymentdown0.2%to7.7%,thelowestlevelssinceDec2008.ThebetterthanexpectedjobsreportamidstsequestrationcutspushedtheDowJonestonewhighs.ConsumersentimentsontheotherhandfelltoitslowestsinceDec2011asconsumerweighedthehigherpayrolltaxand
potentialeffectsofsequester.Manufacturingcontinuestoleadtherecoveryasoutputinfactories,minesandutilitiesedgedup0.7%,exceedingprojections.Housingconstructionisalsoexpectedtoprovidethetailwindpropellinggrowththisyear.
AsiaPacific:ChinasCommitmentandAustraliasDeficit
ChinesePremierLiKeqianghasexpressedtheneedforChinatomaintaina7.5%economicgrowththrough2020todoubleitspercapitaincome.HereiteratedChinasstancetoexpanddomesticdemandandvowedtofightgraftwhilecuttingregulationsandbureaucracy.
Meanwhile,Australiahastakenamassivehittogovernmentrevenue.ThenationalbudgetfellA$4.6billionintodeficitinthefirstmonthof2013,increasingtheshortfalltoA$26.8billion.Thisisowingtoweakergrowth,lowerpricesforAustraliasresourcesandastronglocalcurrency.
EU:SettingPrioritiesfortheEU
EuropeanUnion(EU)leadersmetlastweektoseteconomicandsocialpolicyprioritiesforthe27-nationbloc,withmanycountriesstillstrugglingwithrecessionandrecordunemployment,coupledwithweakinvestorconfidenceintheeuro.KnownastheEuropeanSemester,thesystemaimstoshapepoliciesinlinewithEUgoalsatanearlystage.Forcountriesthathavealreadybrokendeficitrules,theEUwilldealwiththemusingtheexcessivedeficitprocedure.For2013,theeconomicandsocialprioritiesfortheEUare:1)Pursuingdifferentiated,
growth-friendlyfiscalconsolidation.2)Restoringnormallendingtotheeconomy.3)Promotinggrowthandcompetitiveness.4)Tacklingunemploymentandsocialconsequencesofthecrisis.5)Modernizingpublicadministration.
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DemystifyingIndiasBudgetfor2013-14
ByMrigankKanoi,SingaporeManagementUniversity
TheCongressPartyGovernment1inIndiaishistoricallyknownforsettingunrealistictargets
inordertofalselykeeptheinvestor-confidencehigh.Whilethiswasnotgivenmuch
importanceduringthedaysofrobustgrowth,asimilarmovewillmostlikelybackfiregiven
thecurrentslowdown.Withthegeneralelectionscomingupin2014,thegovernments
actionswillreceivecloserscrutiny,notonlyfromthevoters,butalsofromtheprivatesector.
WilltheCongressPartyOverpromiseandUnder-DeliverAgain?
Figure1:GDPGrowthandDisinvestment
Source:FrontierStrategyGroup
Giventhehistoricaltrendofover-promisingandunder-delivering(seegraphsabove),Indias
newlyappointedFinanceMinisterP.Chidambaramhassetthebudgetforarelativelyneutral
coursewithnodramaticproposalsorhighlyunrealistictargets.The2013-14UnionBudget
focusesaroundincreasingtheplannedspending,cuttingdownofsubsidies2,andencouraging
moreinvestment.
Companiesshouldbeencouragedbythegovernmentsplantoincreasethesizeoftheoverall
expenditureby16.4%,majorityofwhichwillcomefromincreaseinplannedoutlay(see
graphbelow)whilereducingthenon-plannedexpenditure,whichentailsinterestpayments,
subsidiesanddefence.
Figure2:PlannedIncreaseinGovernmentSpending
18%
29%
7%
22%
30%
50%
0
100
200
300
400
500
2011 2012 2013
DisinvestmentTargetvs.Actual
Planned Achieved
0%
2%
4%
6%
8%
10%
2010 2011 2012 2013
GDP Growth Target vs. Actual
Planned Achieved
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Figure3:UnionBudget2013-14:Highlights
MacroPolicy RecommendedProposals
Infrastructure
Newregulatoryauthoritysetuptospeed-uproadprojects :3000kmofroad
projectswillbeawardedinthefirstsixmonthsof2013-14
DelhiMumbaiIndustrialCorridor(DMIC)tobeprovidedadditionalfunds
TwonewportswillbeestablishedinWestBengal(EasternIndia)andinAndhraPradesh(SoutheasternIndia)
WorkbeginsontwosmartindustrialcitiesinGujaratandMaharashtra
Infrastructuretax-freebondofuptoUS$10billionavailabletoraisefunds
Investments
CabinetCommitteeonInvestment(CCI)setuptospeedfast-tracklarge
projects
CompaniesinvestingUS$20millionormoreinplantandmachinery
between2013and2015willbeentitledtodeductaninvestmentallowance
of15%oftheinvestmentexpense
ConfirmationoftheLandAcquisitionBillwilllikelybringsignificantclarity
forinvestors FurtherinterestratecutsbytheReserveBankofIndia(RBI)likelyto
improvetheinvestmentenvironment
Subsidies
SubsidyasapercentageofGDPisbudgetedtofallby11%
Petroleumsubsidycutbyasharp33%
Fertilizersubsidyhasbeenleftunchanged(flat)
Foodsubsidyincreasedby6%(alreadyaccountsfor35-40%ofthetotal
subsidybill)
DirectTaxes
Effectivecorporatetaxrateforforeigncompaniesrevisedfrom42.02%to
43.26%
CitizenswithanincomeofUS$185,000ormoretopay10%surcharge
Taxreliefforvery-low-incomeindividualsthroughtokentax-credit
Disinvestment
DisinvestmenttargetmorethandoubledtomorethanUS$10billion
Majorityofthetargetistobemetbysellingminoritystakesinthepublic
sectorenterprises
Source:UnionBudget2013-14,TimesofIndia,EconomicTimes
MappingPolicyMovements:FocusonTacklingIndiasFiscalDeficit3
TheFY2014UnionBudgethasreceivedmixedreactionsfromtheprivatesectorasproposed
policychangesappearmorefavourabletocertainsectors,includingagricultureand
manufacturing.Moreover,whileanincreaseinplannedinvestmentsisseenasapositivesign,
theFinanceMinisterhasleftsomeunansweredquestionswhenitcomestotacklingthe
persistentissueofaballooningfiscaldeficit.Thegraphbelownotonlyhighlightstheimpact
ofvariousproposalsonthebusinessenvironment,butalsoconsiderstheirlikelihoodof
implementation,giventhelowleveloftrustintheIndianGovernment.
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Figure4:Impact/LikelihoodofProposals
Source:FrontierStrategyGroup,OwnEstimates
Thepositionsoccupiedbydis-investmentandsubsidiesonthegraphabovetellaninteresting
story.Itisworthmentioningnowthatthesearethetwotoolsbeingutilizedbythe
governmenttoreduceIndiasfiscaldeficit.Whenitcomestosubsidies,theargumentthat
subsidycutswillbedifficulttoimplementisalmostuniversallyacceptable.Whilethe
governmentexpectscutsinpetroleumexpenditure,itisalsolikelytotakeonapopulist
approachinapre-electionyear.Furthermore,thegovernmentssubsidytargetlastyearwas
1.9%ofGDP,whereasrevisedestimatesarewellover2.5%.Failuretoimplementtheplanned
subsidycutswouldresultinthegovernmentovershootingitsNon-PlanExpenditureonce
again.
Movingontodis-investments,thisprocessinvolvesthesaleofthegovernmentsstakein
state-runcompanies.Divestmentreceiptsasa%oftargetforfinancialyears2011,2012,and
2013were57%,45%,and80%respectively.AchievingthetargeteddivestmentofRs.558,140
million(>US$10billion)thehighestevertargetsetisthusunlikelytosaytheleast.This
suggeststhegovernmentmayfallwellshortofcollectingitstargetedrevenue,asitfailstogeneratecashbyusingsubsidycutsanddivestmentsinstate-runcompanies.
KeySignposts:FourMovementstoCloselyMonitorin2013
Followingaresomespecificmilestonesthattheprivatesectorshouldhaveontheirradarfor
2013,inordertogaugethepaceanddirectionofthechangingpoliticalenvironmentduring
thiscrucialpre-electionyear:
1. ParliamentaryDebatesonReformsDuringBudgetSession(FebruarytoMay):
Thebudgetisoneofthemanyavenuesforintroducingpolicies.Assuch,stakeholdersinthe
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Indianeconomyshouldmonitorprogressonthedebatesintheparliamentduringthebudget
sessionwhereitemsthatwerenotmentionedinthebudgetwouldbedebated.Thesewill
includedebateontheGSTreform,implementationoftheland-acquisitionbillandpossible
clarificationofreformsintroducedlastyear.
2. StateLevelElections(MarchtoDecember):Whilethegeneralelectionsaretotake
placein2014,thereareeightstate-electionsthatwilltakeplacein2013.Theseelectionsshouldofferagoodindicationofthevotersopinionofthetwomajorparties;BJPand
Congress.Oftheeight,electionsinKarnataka,MadhyaPradeshandRajasthanwillbecrucial
astheyrepresentrelativelylargernumberofseatsinthelowerhouse.
3. Dis-InvestmentinStateRunCompanies(AprilOnwards):Withthedis-investment
targetbeingmorethandoubledthisyeartoimprovethecountrysfiscalsituation,the
governmentneedstobeginsellingitsstakeinthepublic-companiesasearlyaspossible.The
privatesectorshouldmonitortheamountofmoneybeingraisedthroughthesaleas
comparedtotargets,asthefiscaldeficitiscurrentlyinavulnerablecondition.
4. FurtherUncoveringofCorruptionScandals(Allof2013):TheCongressPartyhas
facedseveralcorruptionscandalsduringitscurrenttenureincludingthetelecom-licenses
debaclewhichcostthecountryUS$40billionandmajormismanagementofthe
CommonwealthGames.UncoveringofanynewlargecorruptionscandalsagainsttheCongress
Partywouldhavestrongnegativerepercussionsontheirgeneralelectionsof2014.
Sources:
1. UnionBudget2013-14,TimesofIndia,EconomicTimes,FrontierStrategyGroup
1TheIndianNationalCongress,commonlyknownasCongress,iscurrentlytheruling
partyandoneofthetwomajorpoliticalpartiesinIndia,theotherbeingtheBharatiyaJanataparty(BJP).
2Abenefitgivenbythegovernmenttogroupsorindividuals,usuallyintheformofacashpaymentortaxreduction,thatisconsideredtobeintheinterestofthepublic.
3Afiscaldeficitoccurswhenagovernment'stotalexpendituresexceedtherevenuethatitgenerates(excludingmoneyfromborrowings).Itdiffersfromdebt,whichisanaccumulationofyearlydeficits.
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TheGhostofMaoandConfuciusbehindtheInternet
CensorshipsinChina
ByTanKwanHong,SingaporeManagementUniversity
TheGhostofMao
In1949,MaoannouncedtheformationofthePeoplesRepublicofChina,afterdecadesofCivilWarandunrest.Confidentthathehadfinallygainedtherespectofhiscomradesandpeoplethroughoutthecountry,Mao,insubsequentyearstriedtoconsulttheChinesepeopleexpectingatworstmildcriticisms.Buttohissurprise,Maoandhispolicieswerereceivedwithanoutpouringofharshcriticisms.Maobecamedisappointedbythereactionstohispolicies,anddecidedtoputanendtoitbylabelingthemrightist1.
ThismoveledtotheadventoftheAnti-Rightistpurge2,whereanyonewhowereopposedtoMaosviews,beitcomradesinthepartyorpeopleinthefarmlands,werepurged.Maodidnot
care.Surroundedbyyes-men,hewasnowfreetopursuehisownpolicies.FewinMaospartyknewwhichdirectionhewouldleadthecountrytowards.Maosloveformovementandupheavalwasevidentfromthewayhebehaved.
AlthoughithasbeendecadessinceMaospassing,theghostofMaostillpersists,atleastintheonlinecommunity.OnthesurfaceitseemedthattheChineseCommunistPartywasdominant,directingChinaconfidentlyandwithgusto-fromhereconomicgrowththroughthemonetarysystemandFiveYearPlans,tointernetcensorshippolicies,andthesocialmediacompaniesthatmanagetheseonlinechannels-chartinganewpathtoChineseglobaldominanceintheNewWorldOrder.
However,deepinsidetheChinesegovernmentlurkedaprofoundsenseofinsecurity,reminiscentofthefeelingsthatMaohadinthe1950swhenhefirsttriedtoconsultthepeople.
TheadventoftheinternetledtoalossofcommunicativecontrolbytheChineseGovernment,makingitverydifficultforthepartytomanageaconsistentanddesirableidentityinfrontofher1.3billioncitizens,andaworldthatcloselyscrutinizesitseverymove.Thissenseofinsecuritysoonledtoapervasivesystemofinternetcontrolseldomseeninadvancedcountries,oreveninChinasEastAsiancounterparts.
SuchamovehighlightedtheinabilityoftheChineseGovernmenttocreateanecosysteminwhichtoengageitspeopleinpeacefulpublicdiscourseonawidevarietyofviews.
Suchinsecuritycanbeinterpretedashavingalackofmutualtrustinitspeople;theverysameperceptionthatMaohaddecadesago.Itisalsoduetothisveryinsecuritythatsuchblockingofsitesandcensorshipoccurred.Censorshipwasthoughttobetheeasiestwayoutwiththelowesttransactionandadministrativecost(intheeconomicsense)tooperate,asopposedtotheperceivedopportunitycostsofpermittingpublicdiscoursewhichisfargreater(duetothecostofriskundertakenthroughthealternativepathofhavingmoredialoguesandopendiscussionsofpolicies).
ThecreationoftheChinesealternatives(Weibo,RenRen,QQ)toglobalsocialmediasiteslikeFacebookandTwittereffectivelyminimizedpoliticalparticipationandinteractionwithforeigners,andChinesenationalslivingoverseasthatmighthaveapotentiallydifferentviewtothatofChinaspoliticalelites.
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So,didthespecterofMaoreallyexistonline?
Toalargeextent,yes.TheChineseGovernment,innotwantingtosufferthesameriskthatMaoundertook,preferredinsteadtotakeacautiousstand.SuchachoicestemmedfromthefactthatAsians,attheirveryheart,arestillasocietyheavilyinfluencedbyConfucianismwherecitizensarenotexpectedtoout-rightlychallengetheEmperor(nowthegovernment),whohasthemandatetoruleovertheland.
AlthoughimperialisminChinahasceasedtoexist,thereremainsanimpliedcompliancebytheChinesecitizens,whereanyoutrightchallengetothegovernmentisneitherexpectednorencouraged.ThisinfluenceofConfucianism3onmanyAsiansocietiesisoneofthereasonswhyauthoritativegovernmentshavethrivedinEastAsiancountries-thinkJiangJieShi,GeneralParkChungHee,andLeeKuanYew.
TheGhostofConfucius
Andlikewise,theghostofConfucianismisalsoareasonwhytraditionally,Asiangovernmentstendtostrugglemorewhensocietalunrestoccurs.Thisstrugglestemsfromthelackofpro-
activenessinstakeholdermanagement,whichisevidentinthecontrastbetweenWesternandEasterngovernmentresponsetosuchsituations.
InWesterndemocracieswherelibertyandrightstofreespeecharethenormandahighdegreeofcomplianceaspreachedbyConfuciusisnotexpected,non-governmentalorganizationsandpublicactivismareseenaspartofthepoliticalarchitectureofthenation.Governments,priortotheirelectiontendtobeproactiveinengagingthesestakeholders(e.g.apoliticianwhoengagesinactivelygarneringsupportandfundsfortheircampaigns,yearsbeforetheelections).
ItisalsoinsuchWesternpoliticalplatformswheretheacademicfieldofcrisisandstrategic
communicationsisdeveloped(aninherentWesternconcepttobeginwith),providinggovernmentsbettermethodstodealwiththeseunrests.ThisexamplefurtherindicatesthatplayersinthesepoliticalplatformsaremorepreparedthantheirEastAsiancounterpartswhenitcomestoproactivelydealingwithsocialandpoliticalunrest.
Incontrast,EastAsiangovernments,toalargerdegreeexpectgeneralcompliancefromthepopulace,andwilltendtoadoptamorepassiveapproachtoquellunrest.Themainmechanismstheyusearealsoprimitive:harshlawsandregulations,aneducationsystemthatencouragescompliancewiththelaw,andevenadoptingcontroloverthemainstreammedia.Suchtacticshaveexistedforcenturies,butdonotworkverywellintheInternetage,wherethelossofcommunicativecontrolbygovernmentsandthemainstreammediahasbecome
increasinglyprevalent,anditseffectswidelyfelt.
DespitetechnologicaladvancesthathavehelpedperpetuateanarguablyWesternconceptofindividualrightstofreespeech,theChinesegovernment,stilllargelyinfluencedbyConfucianismexpectsalmostabsolutecompliancefromitspeople
Inconclusion,pervasiveinternetcontrolsandcensorshipthatareprevalentinChinacanbeseenfromtwodominantangles:TheGhostofMao(intermsoftheCCPnotwantingtorepeatthemistakethatMaomadeinthepast,andtorisklosingmandateofthepeople)andTheGhostofConfucianism(intermsofexpectedcompliancefromitspeople,andsuppressingplatformsthatencouragenoncompliance).Suchviewsareoftenoverlookedbyacademicsand
analystsalike,butarecrucialinidentifyingtheoften-overlookedinsecurityandthelackof
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trustthattheChineseGovernmentstillfacestilltoday,behindthefaadeofherdominantappearance.
1Rightistsadoptapoliticalstancethatacceptsorsupportssocialhierarchyorsocial
inequality.Socialhierarchyandsocialinequalityisviewedbythoseaffiliatedwiththe
Rightaseitherinevitable,natural,normal,ordesirable,whetheritarisesthrough
traditionalsocialdifferencesorfromcompetitioninmarketeconomies.
2TheAnti-RightistMovement,whichlastedfromroughly1957to1959,consistedofa
seriesofcampaignstopurgealleged"rightists"withintheCommunistPartyofChina
(CPC)andabroad.
3Thesystemofethics,education,andstatesmanshiptaughtbyConfuciusandhis
disciples,stressingloveforhumanity,ancestorworship,reverenceforparents,and
harmonyinthoughtandconduct.
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ASEANsEconomicIntegration:LookingattheEU,Should
theASEANRegionIntegrateFasterandFurther?(Part2)
ByNgYongxiang,SingaporeManagementUniversity
Previously,YongxiangprovidedanoverviewofASEANsandEUsintegrationhistories.Inthisissue,hedelvesdeepertoexaminetheEUregionsintegrationhistorytodrawconclusionsfor
ASEAN
TheInitiativeforASEANIntegration(IAI)wasdrawnupin2000tonarrowthedevelopmentgap1,particularlybetweentheASEAN-6andCLMV.Thisinitiativefocusesonfourareasofpriority,namelyinfrastructuredevelopment,humanresourcedevelopment,informationandcommunicationstechnology,andpromotingregionaleconomicintegrationintheCLMVcountriestohelpachievethevisionoftheAEC.Themajorproblemwiththisinitiativeisthelackoffundingandthewithdrawalofambitiouspledges.LackofpoliticalwilltoensuresuccessfulimplementationsofstrategiesisalsoamongsttheissuethatplagueASEAN.TheEUexperiencedsimilareconomicdivergenceinitsmemberstatesduringthemid-stagesofintegrationbutthegapwasgreatlyreducedwithdeliberateandconcertedefforts,aswellastheeffectiveuseofpolicytoolsincludingthatofthestructuralfunds.
Atthenationallevel,thereisconsiderabledifferenceinthetariff1structure.ExcludingSingapore,thetariffstructuresofothercountriesbysectorsvaryprominently.
Figure2:TariffsofASEANCountriesbySectors
Source:UrataandKiyota(2005:Table7.4,p.228).
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Tariffstendtobeinsignificantintheelectronicequipmentandgeneralmachineryindustries,signallingacomparativeadvantageinthesesectors.ForanACUtobesuccessfullyintroduced,thediversityintariffstructuresmustbeharmonized.Otherissuesthatcouldpotentiallyactasdeterrenceincludethepoolingofsovereigntyovertheirowncommercialpolicies,fiscalshockforsomecountriesandthecollectionofrevenuefromtheCET.AnACUiscurrentlynottabledbyASEANbutIemphasizetheneedforittobeimplementedintandemwiththegoalofachievingacommonmarket.Thebenefitsaresummarizedinthenextparagraph.
Firstly,similartothecreationofasinglemarketinEU,ASEANstandstoyieldlargerbenefitsthantheEUwithitsheterogeneouseconomiesanddevelopmentgaps.Secondly,mostefficientpracticesareallowedtodevelopinvariousareasofmicroeconomicpoliciesespeciallyinCLMV.Thirdly,ASEANwouldbemoreattractivetoforeigndirectinvestment.Thisisopposedtothehighertransactioncostsfacedbymulti-nationalcorporationswhendoingbusinesswithintheAFTA.Lastly,ASEANcouldtakeonaunitedfrontatinternationalforumssuchastheWTO,justastheEUhadinprojectingitsinterestsinsuchorganizations.
LookingbeyondthecurrentgoalssetbyASEAN,thefinalstageofeconomicintegrationwouldbetheeconomicunion.ThisrequiresanagreementamongASEANnationstotransfer
economicsovereigntytoasupranationalauthority,unifyingnationalmonetarypoliciesandacceptingacommoncurrency.TheMaastrichtTreaty2signedin1991bytheheadsofgovernmentsintheEUspecifiedthattherespectivecountryseconomicperformancehavetobesimilar.Thisconvergencecriterion,asmandatedbythetreaty,includespricestability,lowlong-terminterestrates,stableexchangeratesandsoundpublicfinances.Furthermore,thetheoryofoptimalcurrencyareasconcludesthatthecountriesinvolvedshouldbeexposedtocommonandsymmetricshocks.
Asmentionedearlier,thediversityineconomicdevelopmentresultsinasymmetricshocksandpossiblyasymmetricresponsesduetoincompatiblefinancialmarkets.Thetrade-offsinvolvedwouldbelossofdomesticmonetarypolicyflexibilityandtheinabilitytouseinflationtoreducepublicdebtinrealterms.TherecentEurozonecrisiscouldbeattributedtotheadoptionoftheeuro.Thesharpfallinlendingratesledtoasignificantincreaseinconsumerlendingandmuchofitwaschannelledintotherealestatebubble.Henceforth,thecostsofintegratingfurtherintoanASEANeconomicunionfaroutweighthebenefitsofexchange-ratestabilityandlowinterestrates.
ThehistoryofEUsregionaleconomicintegrationdoessupportASEANintegration.EUhasexperiencedthegeneralfactorsthathindertheprogressofintegrationforASEAN.TheobjectiveofanAEChasbeenpushedforwardfrom2020to2015.ThisclearlyindicatesthatASEANisintegratingfasterandbeyondtheCEPT-AFTA.However,theoutlinefortheAEC
doesnotincludeacustomsunion.Inthisregard,ASEANshouldseriouslyconsidertheformationofanACUifitintendstointegratefurther.Theproblemofthedevelopmentgapisnotmerelyanobstacleintheprocessofintegrating,butaprerequisiteifASEANtrulyintendstofollowinthestepsoftheEU.
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Sources:
1. Bacha,O.I.(2008).AcommoncurrencyareainASEAN?Issuesandfeasibility.AppliedEconomics,
40,(515-529)
2. Bui,T.G.(Aug,2008).DevelopmentGapsinASEANasCrucialNontraditionalSecurityIssue:A4-I
Approach.ConsortiumofNon-TraditionalSecurityStudiesinAsia.
3. Plummer,M.(Nov,2006).AnASEANcustomunion?JournalofAsianEconomics,17(5),(923-938).
4. Thangavelu,S.M.andChongvilavan,A.(Sep,2009).FreeTradeAgreements,RegionalIntegration
andGrowthinASEAN.
5. Tjhiong,R.(March,2002).ForginganEconomicIntegration:TheCaseofASEAN.
1Atariffiseitherataxonimportsorexports(aninternationaltradetariff),oralistofpricesforsuchthingsasrailservice,busroutes,andelectricalusage(electricaltariff,etc.).
2TheMaastrichtTreatyortheTreatyonEuropeanUnionwassignedon7February1992bythemembersoftheEuropeanCommunityinMaastricht,Netherlands.
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TheS&P500isafree-floatcapitalization-weightedindexpublishedsince1957ofthepricesof500large-capcommonstocksactivelytradedin
theUnitedStates.IthasbeenwidelyregardedasagaugeforthelargecapUSequitiesmarket
TheMSCI Asiaex JapanIndex is a freefloat-adjustedmarket capitalization indexconsisting of10developedand emergingmarket country
indices:China,HongKong,India,Indonesia,Korea,Malaysia,Philippines,Singapore,Taiwan,andThailand.
The STOXXEurope 600 Index is regardedasa benchmark for Europeanequity markets. It represents large, mid and small capitalization
companiesacross18 countriesof theEuropean region:Austria,Belgium,Denmark,Finland,France,Germany,Greece,Iceland,Ireland,Italy,
Luxembourg,theNetherlands,Norway,Portugal,Spain,Sweden,SwitzerlandandtheUnitedKingdom.
Correspondents:
VeraSoh(VicePresident,Publication)vera.soh.2011@economics.smu.edu.sgSingaporeManagementUniversitySingapore
NgJiaWei(VicePresident,Operations) [email protected] SingaporeManagementUniversitySingapore
SamuelOng(PublicationsDirector/Editor)samuel.ong.2010@business.smu.edu.sgSingaporeManagementUniversitySingapore
YingyuZeng(LiaisonOfficer)yingyu.zeng.2010@economics.smu.edu.sgSingaporeManagementUniversitySingapore
NgYongxiang(MarketingDeputy/Writer)
yx.ng.2011@accountancy.smu.edu.sgSingaporeManagementUniversitySingapore
DarrenGohXianYong(Editor)
darren.goh.2010@business.smu.edu.sgSingaporeManagementUniversitySingapore
TanKwanHong(Writer)UndergraduateSchoolofEconomicsSingaporeManagementUniversitykwanhongtan.2009@economics.smu.edu.sg
MrigankKanoi(Writer)UndergraduateLeeKongChianSchoolofBusinessSingaporeManagementUniversitymrigankk.2009@business.smu.edu.sg
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