Economy

Mohammad Anas Wahaj | 22 jun 2018

According to Korn Ferry's 'The Salary Surge' report, India would be the only economy that will not face an upward revision of wages by 2030, as it has a talent surplus, bucking the global trend of a talent crunch. For organizations around the world lack of highly skilled talent supply will drive up salaries for the most in-demand workers and is expected to add more than US$ 2.5 trillion in annual labour costs by 2030. The Global Talent Crunch analysed global demand for labour at three key milestones, 2020, 2025 and 2030, in 20 markets, including in India, across three sectors, financial and business services, technology, media and telecommunications (TMT) and manufacturing. Wage premiums by 2030 - US (US$ 531 billion); Germany (US$ 176 billion); Japan (US$ 468 billion); China (US$ 342 billion) Asia Pacific (US$ 1 trillion); Singapore and Hong Kong (10% of 2017 GDP). Wage premium per worker per year by 2030 - Asia Pacific (Average US$ 14710); Hong Kong (US$ 40539); Singapore (US$ 29065); Australia (US$ 28625). Dhritiman Chakrabarti, Head of rewards and benefits for the APAC region at Korn Ferry, says, 'The new era of work is one of scarcity in abundance, there are plenty of people, but not enough with the skills their organisations will need to survive. While overall wage increases are just keeping pace with inflation, salaries for in-demand workers will skyrocket if companies choose to compete for the best and brightest on salary alone.' Manufacturing, one of the sector that is a critical driver of growth for emerging economies, may be stalled by the huge impact of the salary surge. Read on...

The Economic Times: India to be lone economy facing suppressed wages by 2030: Study
Author: NA

Mohammad Anas Wahaj | 30 sep 2017

Data can be gold for those who can mine and transform it into a valuable form. Mastercard is giving a new meaning to it and evolving a concept of 'data philanthropy.' Shamina Singh, president of the Mastercard Center for Inclusive Growth, explains the idea of data philanthropy and how data can be utilized for social good and social impact. She says, 'The initiative first came up through a partnership with DataKind in the United States. They were set up to galvanize data scientists from around the world and plug them into social impact work. And so a number of our Mastercard data scientists signed up to DataKind programs, and this gave us the opportunity to form a much more lasting and strategic partnership between the organizations. It opened a new conversation about data for good, what it could look like, and who was doing what in this space. It was also around this time that we had the United Nations opening up to data and data initiatives, and companies like Microsoft thinking about data for good.' Explaining some of the elements of data philanthropy Mastercard is focused on, she says, 'One is working with actual Mastercard data and trying to figure out if there are uses with anonymized and aggregated data that will not only respect the rules of the road around privacy, but can be used for research. We first opened our data for use by Harvard University, who approached us with a proposal to use the data to understand how economies grow, with a specific focus on tourism data and understanding how tourism dollars move in a country. Using Mastercard transaction data, we were able to provide new insights into this area...The other area of data philanthropy is around data analytics. What we have found is that many social impact organizations or NGOs do not need Mastercard data at all. Instead, they need to understand their own data, but often don't have the capacity or resources to help themselves. In those instances, we provide either a grant to hire a data scientist, fund an expert consultant, or provide our own data scientists to build their capacity and ability to learn. The inspiration for this element of data philanthropy came from our work with an organization called DoSomething...' Providing information on how Mastercard data scientists are internally looking for insights, she says, 'We started something called the charitable donations insight, and that is something that one of our colleagues is doing where she is using Mastercard data and drawing insights to help nonprofits understand charitable giving. We asked what a spending poll would look like for not-for-profits and social impact organizations, and insights is the first attempt at that...What she realized is that a lot of the not-for-profits have to raise their own funds, but there is not a lot of science behind potentially where and how they should be doing this. So she thought if she could unlock some of the data around the charitable contributions that we know of, she could offer insights to assist them. The other thing we did, which was very interesting, was we created a dataset that organizations could pull down if they want to, and mix it with your own data to self-regulate your own work.' Read on...

devex: Q&A - How Mastercard uses data for better philanthropy
Author: Lisa Cornish

Mohammad Anas Wahaj | 09 aug 2017

Research paper 'Secular Trends and Technological Progress' by Prof. Enrico C. Perotti and Robin Döttling (Ph.D. student) from University of Amsterdam (Netherlands) finds intangible capital or assets have played a key role in shaping growth, asset prices and inequality in recent decades. Researchers explain, 'The transition to a knowledge-based economy and the associated shift from physical to intangible capital is a primary cause for the rising excess savings over productive investment in advanced economies, presented in the 'secular stagnation' hypothesis. Falling interest rates and rising long-term asset values can be interpreted as a direct consequence of this gradual process. Critically, the approach also allows (us) to interpret the growing share of income gained by innovators, the progressive reallocation of credit from productive to asset financing uses (primarily for housing) and the rise in household leverage.' Secular stagnation, with its low inflation and low growth, can be understood by the growth of information economy and the expansion of intangible assets. In the information economy companies rely more on intangible assets and over the years they have boosted their investment in intangibles like intellectual property from about 30% of company capital in 1980 to nearly 70% today. According to the researchers, both intangible capital and skilled labor have outpaced the broad economy in productivity growth. James Saft explains the implications of the research findings - Secular stagnation may be here to stay, at least until the intangible economy starts coming up with projects that require huge capital investment; Monetary policy may be fighting a losing battle to spark investment and build inflation and lower-skilled wage growth; Taxation and redistribution may end up the only way to let the market work in producing innovation and also reach a democratically acceptable allocation of the proceeds. Read on...

Reuters: How the knowledge economy causes secular stagnation - James Saft
Author: James Saft

Mohammad Anas Wahaj | 08 aug 2017

According to Prof. Pritam Singh, Oxford Brookes University (UK), BRICS nations will lead the global economy and play vital role in spatial shift of the global capitalist economy. While speaking at expert session on 'Global Economic and Environment Crisis Faced by BRICS Economies' at Chandigarh University, Prof. Singh said, '...By 2050, if the Indian economy continues to maintain the current growth pace (GDP growth 7%), it will be the dominant global supplier of services while China would dominate the global manufacturing industry...' Read on...

The Tribune: BRICS nations to lead economy - Oxford professor
Author: NA

Mohammad Anas Wahaj | 19 may 2017

According to design experts at 'ASEAN Creative Cities Forum and Exhibition' (Philippines), creative industry plays an important role in a country's economic growth. Some of the experts that participated include Prof. John Howkins (Author of the book 'The Creative Economy'), Nora K. Terrado (Chairperson, ASEAN 2017 Committee on Business and Investment Promotion-CBIP), Paolo Mercado (Nestle Philippines), Andrew Erskine (Tom Fleming Creative Consultancy), Katelijn Verstraete (British Council East Asia), Kenneth Cobonpue (Philippines), Anon Pairot (Thailand) and Colin Seah (Singapore). Ramon Lopez, Secretary of Department of Trade and Industry (DTI), says, 'The goal of the event is to channel these (creative) assets into innovation , employment, trade opportunities, and mobilizing it to drive each of the economies in the whole Southeast Asian region.' Rhea Matute, executive director of Design Center of the Philippines, says, 'We really are committed to develop the creative quotient of the Philippines...This is really an important opportunity by which our designers, our creatives, can branch out beyond our borders to have a more open system of having dialogue with our ASEAN partners in view also of the ASEAN integration.' Moreover, the event was also intended to initiate a movement to have at least one Philippine city to be a member of the UNESCO Creative Cities Network (UCCN). UCCN currently have 116 cities from 54 countries covering seven creative fields: Crafts and Folk Art, Design, Film, Gastronomy, Literature, Music and Media Arts. It's goal is 'to promote cooperation with and among cities that have identified creativity as a strategic factor for sustainable urban development.' Following are some takeaways from the forum: (1) Working in the creative industry is a lucrative career. (2) The road to success is challenging yet fulfilling. (3) Always look around you, and be original. (4) Standing up with your decisions. (5) Government plays a big role in developing the creative industry. (6) School plays an important role, too. According to Colin Seah, Singapore-based architect and Ministry of Design's Founder and Director, 'At the school level, I'm not saying you need to train everyone to be a creative but if you introduce design education at an early stage, then what you do is two fold - you unlock any potential for people who may be seeking these professions. Secondly, you train and educate people who will eventually become patrons and consumers...then it becomes a cycle. You have good creatives, and you get people who can pay for creatives.' Read on...

InterAksyon: ASEAN Forum - Creativity is the driving force in economic growth
Author: Romsanne Ortiguero

Mohammad Anas Wahaj | 19 mar 2017

Tony Bacigalupo, founder of New Work Cities, on his website (Whatiscoworking.com) explains 'Coworking' as - 'The word "coworking" as it is known today originates with a concept put forth by Brad Neuberg in 2005...It is directly related to Neuberg's original concept and had since evolved into a decentralized movement centered around a core set of shared values: Community, Openness, Collaboration, Accessibility, and Sustainability...A Coworking Space is generally a phrase used to describe a business or organization that is dedicated to the full Coworking concept. These spaces represent a critical foundation of infrastructure for a new and growing workforce of people who work where, when, how, and why they want. A coworking space's relationship with its members is one that is primarily predicated on the values that drive the Coworking Movement, in direct and deliberate contrast to a more traditional relationship predicated on renting space from a landlord.' Kara Kavensky, President of Absolutely Consulting, shares how the coworking space 'The Refinery Center' in Marion (Indiana, US), created by Shelby Bowen (VP of Development at Envoy Inc.), is helping economic development of the city along with establishing a sense of community in local population. The space was developed with financial support from the Community Foundation and Indiana Wesleyan University. Jim Swan, owner of the building that was transformed, understood the concept and worked with The Refinery on their financial constraints of starting a coworking space. The Refinery offers low-cost monthly access without long-term leases. The amenities include Wi-Fi, a professional environment with other like-minded people, conference rooms, dedicated workspace, and an on-site cafe. According to Mr. Bowen, 'We listened to the needs of the community. We have not taken a cookie cutter approach to the coworking space. We offer very affordable monthly memberships starting at US$ 30/month and host a lot of meetings here at no charge. We are also a community center in addition to a work space.' Entrepreneurial events at The Refinery are facilitated by Indiana Wesleyan University with the help of the grant from Lilly Endowment. Carol Brown, Associate Dean of Life Calling & Career at Indiana Wesleyan University, says, 'This program is funded through the Lilly Endowment's "Accelerate Indiana" grant, which seeks to encourage entrepreneurial activity among students and local entrepreneurs. We fund internships, even if the company is a student-run business with the goal of creating jobs in Indiana.' Read on...

Inside Indiana Business: How Coworking is Impacting Economic Development
Author: Kara Kavensky

Mohammad Anas Wahaj | 18 oct 2016

In the world of charitable giving, generally 20% givers use techniques and expert knowledge to maximize their effectiveness, while the remaining 80% are unaware and together pay millions in taxes that would otherwise be used for charitable work. Robert G. Collins, Tampa Bay President of NCF (9th largest US charity), provides specialist philanthropic advice and shares some valuable tools and techniques to enhance value of giving - (1) Use a donor-advised fund (DAF): DAF works like charitable account where the giver gets a charitable deduction when assets are contributed. It is also similar to private grantmaking family foundations without the work and expenses of running a corporation. DAF enables the giver to give when it's convenient for them and decide the amount, timing and recipient of the gift at a later date. (2) Stop writing checks: Giving with cash are after-tax dollars exchanged for a charitable giving. Gift appreciated assets to gain a fair market value deduction, but avoid the capital gains taxes embedded in the asset. This way you get a double benefit i.e. giving pre-tax dollars and still getting the charitable deduction. (3) Plan ahead for tax events: Capital gains taxes are optional taxes - you don't have to pay them if you don't want to. If you are charitable and you have a taxable event expected in future, explore your charitable options today. (4) Have a charitable shareholder: Consider gifting a partial interest in your business or income-producing real estate to your DAF. It is critical that the DAF or charity you are giving to has expertise in taking in business interests. (5) Give generously through your estate: Check out givingpledge.org to find out reasons why many respected business leaders are leaving a charitable legacy. A DAF is a simple, easy solution for a family foundation legacy, but ask the fund sponsor whether they have rules about appointing successors. Read on...

Tampa Bay Business Journal: 5 things smart givers know
Author: Robert G. Collins

Mohammad Anas Wahaj | 06 oct 2016

According to the IMF's October 2016 'World Economic Outlook' report, global economic growth will remain subdued this year (3.1%), as US slowdown and Brexit happened. Moreover, persistent stagnation in advanced economies could further give rise to anti-trade sentiments and populist call for restrictions on trade and immigration. Maurice Obstfeld, IMF chief economist, says, 'Such restrictions would hamper productivity, growth and innovation. t is vitally important to defend the prospects for increasing trade integration. Turning back the clock on trade can only deepen and prolong the world economy’s current doldrums.' IMF suggests - For near term growth, central banks in advanced economies should maintain easy monetary policies; Governments should spend more on education, technology, and infrastructure to expand productive capacity while taking steps to alleviate inequality; Many countries also need to counteract waning potential growth through structural reforms to boost labor force participation, better match skills to jobs, and reduce barriers to market entry. IMF found emerging markets and developing economies as the only bright spots, where growth will accelerate for the first time in 6 years to 4.2%. They are expected to grow 4.6% next year. Although, prospects differ sharply across countries and regions. Growth in emerging Asia, and especially India, continues to be resilient. India's GDP is projected to expand 7.6% this year and next, the fastest pace among the world's major economies. Sub-Saharan Africa's largest economies continue to struggle with lower commodity revenues, weighing on growth in the region. While, economic activity slowed in Latin America, as several countries are mired in recession, with recovery expected to take hold in 2017. Middle East remains in challenging conditions due to subdued oil prices, civil conflicts and terrorism. Commenting on the policy challenge, Mr. Obsfeld concludes, 'By using monetary, fiscal, and structural policies in concert - within countries, consistent over time, and across countries - the whole can be greater than the sum of its parts.' Read on...

IMF News: IMF Sees Subdued Global Growth, Warns Economic Stagnation Could Fuel Protectionist Calls
Author: NA

Mohammad Anas Wahaj | 04 aug 2016

According to Wikipedia, 'Corporate Social Responsibility (CSR) became popular in 1960s and is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and national and international norms.' While BusinessDictionary.com defines CSR as 'A company's sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship - (1) Through their waste and pollution reduction processes. (2) By contributing educational and social programs. (3) By earning adequate returns on the employed resources.' According to a Global CSR Study conducted by Cone Communications/Ebiquity, 91% of global consumers expect companies to do more than make a profit but also operate responsibly to address social and environmental issues. From integrating a social mission into cross-departmental activities to engaging in sustainability practices, there are myriad ways in which organizations can adopt both a good business and commerce-driven model. A new report from PSFK Labs, 'Impact Debrief', explores how brands can innovate around this decades-old concept of CSR to elevate their social impact and influence. The study provides 5 key ingredients for creating social innovation - (1) Identify And Unite Around A Relevant Social Problem. (2) Promote Cross-Functional Integration. (3) Incentivize And Empower Employees. (4) Create Value By Maximizing Sustainability Efforts. (5) Deliver Transparency. Read on...

PSFK: The 5 Fundamentals For Corporate Social Innovation
Author: NA

Mohammad Anas Wahaj | 25 jul 2016

Prof. Henry Chesbrough of University of California at Berkeley, coined the term 'Open Innovation' in his book "Open Innovation: The New Imperative for Creating and Profiting from Technology" that was published on 2003. According to website OpenInnovation.net, 'Open Innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology.' Organizations are now more commonly adopting open innovation. As Prof. Chesbrough suggested in his research few years ago that nearly 80% of organizations were already dabbling with open innovation in some form or other. In 2015, Carlos Moedas (European Union's Commissionar for Research, Science and Innovation), outlined the goals for his organization as 'Open Innovation, Open Science and Open to the World'. Recently EU published a paper to highlight its commitment to an open and transparent approach to innovation and related policy initiatives. In terms of supporting open innovation throughout Europe, the EU's focus is in four key areas - PUBLIC SECTOR: By providing a regulatory framework that supports and incentivizes open knowledge and cooperation; FINANCIAL SECTOR: By ensuring that innovation-friendly funding is available; INNOVATIVE BUSINESSES: By reducing market fragmentation throughout Europe to help companies commercialize their work; ACADEMIA: By supporting the development of co-creation capabilities and the ease with which research finds its way into business. Supporting 'Open Science' is a key part of the EU's desire for more effective and open innovation as it facilitates the free movement of knowledge throughout the continent. In this regard, EU is focusing efforts in five key policy areas - Fostering and creating incentives for open science; Removing barriers to open science; Mainstreaming and further promoting open access policies; Developing research infrastructures for open science; Embedding open science in society as a socio-economic driver. The final component of EU's open innovation strategy is to foster international cooperation in research and innovation. Horizon 2020, is one such program in the direction of making open science a norm globally. Moreover, international cooperation is key to tackle issues like climate change, driverless technology etc. The paper concludes, 'Science and innovation are global endeavours and researchers should be able to work together smoothly across borders, particularly on large-scale common challenges. The strategic approach to EU international cooperation aims to develop common principles and adequate framework conditions for engaging in cooperation.' Read on...

Huffington Post: Open Innovation, Open Science And Open To The World
Author: Adi Gaskell

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