The Unassuming Economist

From China Daily:

“Manufacturing is the central focus of the industrial and trade policies being implemented by China and many other countries. The sector gets special treatment because of its crucial role in providing the hardware for national defense, decarbonization, artificial intelligence and quantum computing. Policymakers also seek to promote manufacturing because it has traditionally been important in generating good jobs for less-educated workers.

But despite manufacturing contributing to national prosperity in both developed and developing countries, with most research and development focused on the sector, it is increasingly unable to create enough jobs for workers who need them. In the United States, for example, less than 10 percent of workers work in manufacturing and even if President Donald Trump’s policies succeed in eliminating the US trade deficit through higher tariffs, the impact will not do much to change the prospects of workers without college degrees.

Inverted U-curve in manufacturing employment

Moreover, since many countries are focused on technological improvements, the skill-based nature of the new industrial policies could further disadvantage less-educated workers. This means additional policies are needed to achieve shared prosperity by creating more jobs for less-educated workers through the promotion of economic activity in services.

The misconceptions about manufacturing today are widespread. It is widely understood that as countries develop, the employment share in farming will decline and the employment share in services will rise. But it is not understood that in almost all countries the employment share in manufacturing follows a humped path — rising in the early stages of development and then declining. All developed and many emerging economies have now passed the peak and are moving along the downward side of the hump.”

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From China Daily:

“Television broadcasts of fireworks displays with dragon and lion dances around the world celebrating Chinese New Year indicate the spread of Chinese communities to the most far-flung places on the planet. Travelers with a taste for Chinese cuisine fear not, there is a Chinese restaurant wherever you go.

The Chinese are among the most significant migrants, seeking new pastures to spread a culture that dates back more than 3,000 years. One of the migrations dates back to the Ming Dynasty when Zheng He (1371–1435) became the envoy of the Ming emperor, Yong Le. He sent people — many of them Cantonese and Hokkien — to explore and trade in the South China Sea and the Indian Ocean.

There are now an estimated 50 million Chinese spread to every continent in the world, many of whom have taken leading roles in their communities and local politics. Many, with their antecedents being of the Chinese race, have become heads of state, business leaders, notable entertainers, and academics. Winners of international competitions in mathematics, science, and technology, as well as sporting contests, are now seen as nationals of Chinese descent. Overseas Chinese are known as “Huaren” or “Huaqiao” (ethnic Chinese residing outside China).

The Chinese diaspora is thriving, sharing their cultural traditions with the residents of their adoptive homes. The largest overseas Chinese population is in Asia (34.6 million), followed by the continent of America (about 9.8 million). As a testament to their global reach, there has been steady growth in total numbers in every continent since 2010. The overseas Chinese population of Europe (1.32 to 2.38 million) and Oceania (0.95 to 1.77 million) has nearly doubled. However, the most significant growth occurred in Africa, with an increase from 0.24 to 1.18 million—a surge of almost 500 percent in just 12 years, reflecting the dynamic nature of the Chinese diaspora in a developing economy.”

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From Big News Network:

“External Affairs Minister (EAM) S Jaishankar on Friday expressed India’s support for the priorities of the South African Presidency, which aligned with India’s own advocacy during its G20 Presidency.

Speaking during the session on G20 objectives at the 2025 G20 Foreign Ministers’ Meeting in Johannesburg, Jaishankar said, ‘We are supportive of the priorities of the South African Presidency. They jell with what India has advocated both nationally as well as during its own G20 Presidency’

He also emphasised the importance of the G20’s leadership in addressing global challenges. As the G20 enters its second cycle, Jaishankar stressed that it must prioritise collaboration over competition, accurately reflect global challenges, including food, energy, and health security, and promote women-led development.

‘Some thoughts have been shared on the former in the last Session. Let me just underline that as we enter the second cycle, G20 must retain its leadership. To do that, it must be accurately reflective of global challenges in their entirety. This includes food, energy and health security, establishing digital public infrastructure, and promoting women-led development. And G20 must always put the imperatives of collaboration higher than the compulsions of competition,’ said Jaishankar.

He highlighted several key areas, including – International Disaster Response; India initiated the Coalition for Disaster Resilient Infrastructure in 2019, which now has 42 nations and 7 organizations as members.’

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From The Star:

“Malaysia’s ASEAN chairmanship presents a pivotal opportunity to advance ASEAN’s agenda, focusing on inclusive growth, sustainable development, and deeper regional collaboration, according to RHB Investment Bank Bhd.

It said Malaysia’s upcoming chairmanship will be key to navigating global uncertainties in the face of the potential intensification of global trade tensions.

“By prioritising economic resilience, innovation, and sustainable practices, Malaysia can lead and consolidate ASEAN’s position as a dynamic economic force and a pivotal player in shaping the future of Asia-Pacific economic integration,” the investment bank said in a note today.

As ASEAN progresses towards its vision of a unified and integrated community by 2030, it said that sustained commitment to these objectives will be crucial for navigating uncertainties and maximising opportunities in an increasingly interconnected world.

“While risks from the trade and geopolitical arenas persist (under the new US administration), Malaysia’s neutral stance and diversified trade relationships position the country well to navigate these external challenges,” it said.

Therefore, RHB Investment Bank believes that Malaysia’s growth outlook remains positive, bolstered by its regional integration and economic resilience.

In the medium to longer term, it noted that Malaysia’s strategic location in Southeast Asia, its neutral stance in the geopolitical arena and its developed industrial base and infrastructure make it an attractive destination for businesses looking for alternatives to China.”

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From a paper by Debkumar Chakrabarti, Sankalpa Bhattacharjee, and Pradeepta Sethi:

“This paper undertakes a comprehensive review of some of the less-discussed factors that harbor the potential to explain the wide variations in structural transformation, especially amongst developing economies. We begin by critically reviewing the effects of income, relative price, and international trade, which are generally considered drivers of structural change, with special emphasis on developing economies. Subsequently, we bring to the forefront three comparatively less-discussed factors—income inequality, financial market imperfections, and government policy that can explain a large part of the divergences in the transformation patterns of developing economies. Underscoring the limitation of the conventional discourse that relates cross-country differences in structure in terms of cross-country differences in manufacturing, we emphasize the need for the theoretical discourse to move beyond the industry-centric approach to focus on the recent research that views the surge of services as an additional engine of growth and the possible avenues through which it can affect structural transformation.”