World Competitive Rankings defy logic

The WEF may have its own method of measuring the competitiveness of each country but its rankings defy the stark reality of what is going on in the world.

BANGKOK: The World Economic Forum (WEF) has just issued its Global Competitiveness Index 2012-2013 rankings.

Thailand’s competitiveness ranking has improved slightly to 38th spot this year, while Switzerland has edged out Singapore to become the most competitive nation on earth.

The WEF has its own formula in ranking the competitiveness of each country. However, the WEF’s ranking does raise some eyebrows.

According to the WEF, Spain is more competitive than Thailand because its overall ranking is 36th. This ranking is questionable.

Spain is planning to seek a full bailout from the European Union. The European Central Bank is about to monetise its debt. It has received €100bil (RM393.7bil) in bailout funds already. Some €75bil (RM295.3bil) in deposits have fled the Spanish banking system.

Spain is in a similar situation to Thailand in the first part of 1997 before Thailand sought a bailout from the International Monetary Fund. By this measure, Spain should not get a ranking higher than Thailand.

Switzerland, ranked No.1, will not enjoy its position as an oasis of peace and prosperity in Europe for too long in the event of a euro implosion. Swiss banks’ assets, which are tied to the European banking crisis, are more than 300% of the country’s GDP.

The United States has slipped to 7th in the rankings. The US economy is in big trouble. Some 46 million Americans are on food stamps. There are 10 million Americans unemployed, including another 12 million who are doing odd jobs.

Some 18 million American households are having a tough time making ends meet. The banking system is in shambles. The US national debt has hit US$16tril (RM49.7tril), or about 100% of the GDP. The budget deficit is chronic. The country is years away, if ever, from being able to balance its budget.

Most important, the Federal Open Market Committee will meet on Sept 12 to determine whether it will go ahead with a bond-buying programme, or QE3, to further prop up the financial system. US finances are in very bad shape indeed.

Japan is ranked in 10th spot. Does it deserve this position? The whole world knows that Japan has the world’s largest public debt at more than US$12tril (RM37.3tril), or 230% of its GDP. Japan’s debt is largely financed by domestic bonds. But with an ageing society, Japan will face higher interest costs from its borrowing, which will put the health of its finances into further question.

The Japanese economy is far from recovering from its crisis of the 1990s. Japan is facing sluggish growth and also high energy costs in the aftermath of the Fukushima nuclear plant disaster.

Its export sector is feeling the pinch from the strong yen. If the consumer markets in Europe or US were to slacken even more, Japan’s export machines will wobble. Foreign exchange earnings will plunge, while domestic demand has been in a weak state all along.

Saudi Arabia, ranked at 18th, is the world’s largest oil exporter. But a Citibank report issued last week said Saudi Arabia might have to import energy by 2030 if the current pace of domestic consumption and exports continues.

Israel is ranked 26th, though it is facing off against Iran in the Middle East. A war could break out between the two countries at any time, given the tensions between their leaders.

China is ranked 29th, although it is the richest country in terms of foreign exchange reserves. Its reserves stand at US$3tril (RM9.3tril). China is the world’s production factory. Its economy is the world’s second largest after the United States. It is improving fast in technology and innovations.

Moreover, China is also building up its military and has nuclear weapons in store. Apparently, China does not deserve this relatively low ranking.

This also applies to other Brics countries such as Russia (67th), Brazil (48th) and India (59th). How is it possible that the Philippines musters at 65th, two notches higher than Russia, which is still a superpower, rich with resources? The Philippines is vulnerable to food price increases and also to natural disasters.

The WEF may have its own method of measuring the competitiveness of each country. But its rankings defy common sense and the stark reality of what is going on in the world.

From a group of leading Asian newspapers working towards improving coverage of Asian affairs
http://www.asianewsnet.net/

Global arms market hits post-Cold War high point

Experts say increase due to rising security risks around the world

Despite the gloomy world economy, Chinese observers have cast their sights to a prosperous global arms market, which has hit the post-Cold War peak in 2012 according to a Russian report issued earlier this month.

The seemingly abnormal situation, driven by complex factors including turmoil in the Middle East and big appetites of international arms dealers, is likely to cast shadow over the already troublesome situation in East Asia, they said.

According to the report Russia's Center for Analysis of World Arms Trade issued in early August, global military equipment exports are to hit $69.84 billion this year, the highest level since the end of the Cold War.

It is a 3.84 percent increase on the $67.26 billion in 2011, which was already nearly 20 percent higher than the $56.22 billion in 2010.

Increases in 2010 and 2011 were a result of weapon deals that had been delayed by the financial crisis that started in 2008, said the report.

Li Qinggong, deputy secretary of the China Council for National Security Policy Studies, said the recent surge is due to rising security risks around the world, especially turmoil in West Asia and North Africa, and escalating terrorism threats.

"Many countries, not only the ones in West Asia and North Africa, now feel more threatened. The traditional risks are still there, and new ones keeping emerging," Li said.

"Major weapon exporting nations are also trying to support the industry to stimulate the dim economy," he said.

Li said the trade had also benefited from countries worldwide updating their weapons.

Su Hao, an expert on political and security affairs with China Foreign Affairs University, noted escalating tensions in East Asia.

"Rising uncertainties in the region is also a contributing factor," he said.

Tensions on the rise

Tensions in the South China Sea have increased in recent months following a confrontation between China and the Philippines near China's Huangyan Island in April. The US and Japan have announced plans to help further equip the Philippine armed forces.

The Russian report said exports will hit $77.5 billion in 2015, after a slight drop in 2013 and 2014. The peak in 2015 is due to "huge contracts" signed between the United States and Saudi Arabia and other countries in the Near East, it said.

"Turmoil in the Middle East is likely to maintain and even escalate in the near future, so it is not hard to understand Saudi Arabia's need to better equip itself," Su said.

"In another view Western countries also need a strong Saudi Arabia and other regional powers to balance their traditional enemies such as Iran."

According to the report, Russia is the world's second-largest weapon supplier in 2012, with an export volume of $13.29 billion - 19 percent of the world market.

Russia had a good sales result, although it lost markets in Iran and Libya due to arms sanctions on the two nations and partly lost the Syrian market. It has also been crowded out of the market in Saudi Arabia by the US. 

The Russian report showed France ranked third, with $5.61 billion in exports, a figure expected to rise to $19 billion by 2015.

France is followed by Germany, which has $4.57 billion in exports, the United Kingdom with $3.24 billion and Iran with $2.8 billion. Italy, China, Spain and Sweden rank successively after Iran.

Hu Siyuan, an expert with PLA Defense University, said China's weapon exports are second-class compared with the world's leading exporters, "especially in the fields of material and sensing technique".

Li Qinggong said China sells combat fighters to Pakistan and training jets to other countries.

Japan relaxed its self-imposed decades-old ban on military equipment exports in December 2011, and the Philippines became its first consumer.

Japan is not a big player in the world arms market, but it is now trying to have a finger in the pie to help boost the domestic economy, Li said.

"But Japan may not manage to achieve that goal, as Washington will not allow it to sell weapons based on technology mainly learned from the US," he added.

US leads market

The US leads the global arms market, with its export volume hitting $25.52 billion, or 36.53 percent of the global figure. Its status will further be consolidated in 2013, accounting for 40 percent of the world share.

Chen Fei, a scholar majoring in international issues at Zhongnan University of Economics and Law based in Central China's Hubei province, said on a TV program on Sunday the Obama administration's fanning of tensions in East Asia is partially driven by US arms dealers.

"Congressmen, political figures and arms dealers in the country have formed a close mutual interest community," he said.

Neither presidential candidate has talked about domestic gun control this year, as it has been deemed a "politically toxic" topic.

Chen said that under such a political environment, the Obama administration has to create a more favorable outside environment for arms dealers through moves including its high-profile strategic pivot to East Asia.

In late July, on the last day of a UN conference involving the 193 member nations aimed at forging a world regulation on weapon deals, Washington blocked efforts by insisting that all member nations should have veto rights on the document.

By Li Xiaokun, Zhou Wa  (China Daily)  

Malaysians in high spirits as Chong Wei gears up for Olympic gold!

Watch the Lee Chong Wei vs Lin Dan men's singles final live on Astro - EO 10 SD (829) and EO 10 HD (849)

PETALING JAYA: The Malaysia Boleh spirit is soaring as the entire nation gears up for tonight's Olympic gold medal clash between Datuk Lee Chong Wei and arch-rival Lin Dan of China.

Kuala Lumpur Badminton Association vice-president and coaching chairman Gopal Krishnan said he expected the match to be the best ever between the duo.

“Both players are evenly matched. Lin Dan is younger and faster but Chong Wei has the endurance and patience of a champion,” said Gopal, who played for Perak during the 1960s.

Subang Jaya Badminton Club president Alvin Chai, 27, and his band of badminton enthusiasts said hopes were high to finally see a Malaysian clinch an Olympic gold.

Chai said he and his friends would be cheering Chong Wei in their favourite mamak restaurant after their Sunday badminton outing.

‘It is an even game on a neutral ground’ – Lee Chong Wei (left)

 

“Based on the way Chong Wei has been playing in London, Lin Dan is going to be in for the fight of his life!'' he said.

Despite having to work today, guitar tech and instructor Joshua Chin said he would stream the match online “as I don't want to miss a thing”.

“I am an ardent badminton and a Chong Wei fan, how could I ever miss what could be one of Malaysia's defining moments?” he said.

Engineer Gurmesh Singh, 27, will be rooting for Chong Wei from an offshore oil rig in Saudi Arabia he will follow the game via live online streaming.

“I will be joined by my other Malaysian and Indonesian colleagues. There is no way we are going to miss the final,'' he added.

“Lin Dan will be Done',” he quipped.

Related:

Medal Count as at August 5, 2012

Leaders

Total

1		China	28	16	14	58
2		United States	27	14	15	56
3		United Kingdom	15	8	8	31
4		Korea	10	4	6	20
5		France	8	6	9	23
6		Germany	5	10	6	21
7		Italy	5	5	3	13
8		Kazakhstan	5	-	-	5
9		DPR Korea	4	-	1	5
10		Russia	3	15	13	31
11		Netherlands	3	1	4	8
12		South Africa	3	1	-	4
13		New Zealand	3	-	4	7
14		Japan	2	11	12	25
15		Romania	2	4	2	8
16		Cuba	2	2	1	5
17		Hungary	2	1	2	5
18		Poland	2	1	1	4
19		Ukraine	2	-	5	7
20		Ethiopia	2	-	1	3
21		Australia	1	12	7	20
22		Denmark	1	4	2	7
23		Canada	1	3	6	10
24		Czech Republic	1	3	1	5
25		Sweden	1	3	-	4
26		Belarus	1	2	3	6
27		Brazil	1	1	5	7
28		Croatia	1	1	-	2
29		Slovenia	1	-	2	3
30		Jamaica	1	-	1	2
31		Georgia	1	-	-	1
31		Lithuania	1	-	-	1
31		Switzerland	1	-	-	1
31		Venezuela	1	-	-	1
35		Mexico	-	3	1	4
36		Colombia	-	2	1	3
36		Spain	-	2	1	3
36		Kenya	-	2	1	3
39		Slovakia	-	1	3	4
40		India	-	1	2	3
41		Belgium	-	1	1	2
41		Indonesia	-	1	1	2
41		Mongolia	-	1	1	2
41		Norway	-	1	1	2
41		Serbia	-	1	1	2
46		Egypt	-	1	-	1
46		Guatemala	-	1	-	1
46		Malaysia	-	1	-	1
46		Thailand	-	1	-	1
46		Chinese Taipei	-	1	-	1
51		Greece	-	-	2	2
51		Moldova	-	-	2	2
53		Argentina	-	-	1	1
53		Azerbaijan	-	-	1	1
53		Hong Kong, China	-	-	1	1
53		Iran	-	-	1	1
53		Qatar	-	-	1	1
53		Singapore	-	-	1	1
53		Tunisia	-	-	1	1
53		Uzbekistan	-	-	1	1

46

Malaysia

-

1

-

1