Poverty, growth and baseless anger

The economics of misplaced anger

Fast growing Asian countries have “eliminated” poverty at an astonishing speed, bringing people out of extreme poverty into mere gut-reaching poverty.

At first blush, the numbers are suggesting of a hopeful future. In 1990, about a third of the people in the world lived on less than US$1.90 a day. By 2013, it was just 10.7%. In actual numbers, that is 1.85 billion in 1990 compared to 767 million in 2013. A second glance puts in perspective the anger of many people in the world, and not in a good way.
In 1990, the bulk of global extreme poverty was in Asia, the most populous region in the world. Now it is in Africa, the most troubled region in the world.

We wrote about this with my colleagues in a series of stories in China Daily Asia Weekly last month to mark International Day for the Eradication of Poverty, which falls on 17 October. The World Bank says the number of people living in extreme poverty is falling by 88 million per year.

Before we start celebrating, though, let’s go back to that US$1.90 a day, which adds up to US$57 for a 30 day month or a whopping US$693.50 a year. To meet the threshold, a family of four would have to earn US$2,774 per year or US$231 per month. It is hard to imagine any place in the world where that is anywhere near enough.

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Malaysian rate hike signals new trend

Looking ahead, inflation is, however, expected to remain above its long-run average. — Bank Negara Malaysia

Malaysia’s central bank welcomed Ramadan fasts and celebrations through July and August by raising the country’s interest rate for the first time in three years.

As many economists expected, Bank Negara Malaysia (BNM) announced after a routine meeting at the beginning of July that it decided to raise its overnight policy rate by 25 basis points. The new interest rate is 3.25 percent with floor and ceiling rates raised to 3 percent and 3.5 percent accordingly.

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Asia set to cash in on blockbuster movie business

No other place on earth can  compete China for enthusiasm for Hollywood movies. Proof is in how much audiences will pay out of pocket to go to the theatre to see blockbusters like Transformers or in how much super-rich investors are willing to shell out to get into the game of producing them. 

In just 11 days, Transformers: Age of Extinction earned US$212 million in Mainland China, 10 times more than the US$21 million the movie earned in South Korea and far, far higher than the US$6 million earned in Malaysia or the US$4 million it earned in Hong Kong, Singapore or Thailand.

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World Cup economics benefits are virtually nill

The World Cup is finished, much to the chagrin of our favorite Argentine team that came so close to taking a third cup only to see their chances vanish on a single but great German goal in overtime.

The World Cup is the most watched sporting event in the world. The governing body of football, FIFA, says something like 3.2 billion people watched at least a minute of the World Cup. It is a lot of people. Many of them are in Asia. And almost none of them see any economic benefits.

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