Clouded by controversy even before it began, the recently concluded 49th ASEAN Foreign Ministers’ Meeting (AMM) in Vientiane, Laos was conspicuous for two things: who was and was not present; and, perhaps more importantly, what was and was not discussed.
The Philippines’ new President Rodrigo Duterte has indicated that China could play a key role in developing the Philippines’ infrastructure. Even before the election, Duterte announced that he is willing to back down on the South China Sea dispute with China if it can build railway systems in the Philippines within his six-year term. So could infrastructure investment offer a way forward for the China–Philippines relationship?
Just days after praising the central banks of the world for preventing any notable cash shortfalls, the International Monetary Fund (IMF) has issued a warning that the effects of the United Kingdom’s (UK) decision to sever its relationship with the European Union (EU) will have far-reaching consequences for the world economy.
A spokesperson for the IMF, Gerry Rice, described Brexit as likely to dampen global economic growth in the near term, and advised that the IMF urge policy makers to take decisive action when addressing the situation.
There is no doubt that the United Kingdom’s (UK) exit from the European Union (EU) will have long-term economic consequences for the entire world. Friday’s response to the news that Britain voted to exit the EU (also known as “Brexit”), however, created an enormous market response.
Forced displacement has become a growing problem around the world. Millions of people have been driven from their homes by conflicts, development, and political disputes. The situation has reached crisis levels, and the World Bank has sought innovative new ways to improve the lives of those affected by these forced displacements.
As 2015 ended, members of ASEAN announced the realisation of the ASEAN Community, although it shall remain a ‘work in progress’. The ASEAN Community idea sets a roadmap for continuing the work of regional integration over the next decade.
The first half of 2016 saw two notable steps in the development of regional financial institutions in Asia. The first occurred on 9 February 2016 when the ASEAN+3 Macroeconomic Research Office (AMRO), the independent surveillance unit of the ASEAN+3 countries, was upgraded from a company registered in Singapore to an international organisation, which is not bound by the legal system and practices of any one member country.
The Organization for Economic Cooperation and Development (OECD) issued a policy paper this week on the matter of Great Britain’s exit from the European Union (EU), often called “Brexit.” According to the OECD, exiting the EU would cause “a major negative shock to the UK economy.” Thus, the organization has strongly warned against Brexit.
The G7 heads of state summit has begun. The host, Japan’s Prime Minister Abe began with doom and gloom. Accounts suggest he warned of the risk of a crisis on the scale of Lehman if appropriate policies are not taken. It is not clear to whom Abe was addressing. It may not have been the other heads of state. It may have been a domestic audience Abe had in mind.
Greece has become the focus of a battle between European nations and the International Monetary Fund (IMF). The economically struggling nation that is drowning in debt will not receive any additional aid from the IMF, according to a senior International Monetary Fund official, unless Greece’s creditors in Europe agree to concise debt relief terms.
Unfortunately, for Greece, to date, those European creditors have refused to commit to such detailed debt relief plans, leaving Greece in the middle of a power struggle between the IMF and the Eurozone.
