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2017
Asia Needs more Dialogue
Solutions to urban pollution may prove complex
Spread of ESGs could herald new global movement
Investing in quality education is imperative if India wants to reap demographic dividends
China needs to lead in new multi-stakeholder world
China’s B&R initiative leading a resurgence of Asia
Education is key - but long-term: Can we survive?
New wave of robots will be beneficial to all
China needs to continue with its ‘heavy lifting’
Time is right for Chinese firms to invest in Europe
Robots to the rescue for China?
Asian Multinationals are Going Global, But to Where?
China ratchets forward with energy efforts
China’s calm necessary for globalization push
Bridging managerial gaps involves trust-building
China well-placed to power its future through green technology advances
China's new 'springtime' is here
2016
China’s moves show it’s banking on the future
Mindset for action at the G20 summit will be determined by Chinese presidency
Chinese head-hunting intensifies for rare managers that can steer overseas firms
US talk of isolation jars with growing links in Europe and Asia
Electoral rhetoric on global trade not in sync with reality
Is it time to be prudent and consider austerity policies again?
What will we do if we have no oil?
Unlock talent by finding the right fit for a person
The benefits are real and tangible
Trade along China’s ‘One Belt, One Road’ won’t succeed without the currency of trust
Reasons for optimism about the long term
2015
Can big oil go green and win?
Poorer Nations Could Sway Climate Talks
Combating Idleness and Deprivation
How China can be a model of food sustainability for the developing world
Kyoto II – Is it a Done Deal?
A meeting of the two largest economic powers
Why China will experience a 'soft' landing
Beware of superstitions
The Elephant and Dragon move ahead
G-7 target on fossil fuels raises many questions
Why Battle for Net Neutrality in the US Matters Globally
China’s resurgence – the ‘normal new’
Wanted: A managerial culture that embraces cultural differences
China's early education plan a smart investment in the future
The New Normal for China and India
2014
China's infrastructure push offers a sure track to better growth
US-China climate pact a good start, but not quite enough
Rethink the human’s place in the ‘digital revolution’
China springs a carbon surprise
Infrastructure - the invisible hand in full view
Dialogue vital for survival of Iraqi nation
China must nurture a new generation of beautiful minds
Great expectations in China and India
GM Cereals – The Pros and Corns
Time to be Honest about Our Energy Prospects
Weathering the Storm of Climate Change
Making a Big Decision? Beware of Your Biases
West Deserves Better Logistics Infrastructure
Digital Currencies do Represent the Future
From 'Printed' Houses to Wooden Skyscrapers
It’s time to bail out our schools, not our firms
Solution to India’s housing shortage – print new ones!
And the most promising green technologies of 2014 are ...
Transport infrastructure key to domestic, export growth
Oil stopgaps: Not worth risking
2013
Why the US should grant Edward Snowden amnesty
May we be more optimistic!
China headed for another massive social experiment?
A dialogue that worked
Yes, politicians deserve vacations - because we benefit
NPOs, NGOs invaluable as creators of dialogue
Look closer and ask: Is America reinventing itself?
Boston bombings case underlines need for dialogue
Millennium Development Goals or own goals?
As usual it's about balance - and timing - of course
Chinese strategists make right moves for growth
2012
Preparing for tomorrow
Austerity or growth?
Japan in danger of becoming 'just a place to fly over'
Beware of the business cycle?
An inconvenient truth
Limited offer sale: Buy a country
Where did our money go?
Leading from behind - a year of elections is almost over
Driving towards a green future
Waiting for springtime
Preserve or Perish
Startlingly similar Asia policy for Obama, Romney
Globalisation remains an irresistible trend
Google has the edge in smartphone war
U.S. Braces for China's Rise
Mankind’s General Scourge
The summer holidays are over and nothing has changed!
Put the hidden trillions to work
Making sense of India’s woes and wonders
Storm in a teacup!
Let’s give bad bankers a venue to admit their sins
News is about depth, not puff or velocity
Booming India, but too few toilets
Delayed Court decisions doesn't mean one may continue to play 'Great Game'
We need media to reflect on data and offer public a balanced view
Big polluters can lead in forging common purpose
The weighty issue of choosing a leader
EU-India Relations - Facing similar challenges
Educating with a goal
The Judicial Malaise
We are growing out, but not growing up
EU´s retrenchment enigma
Urbulence in the Eurozone and the effect on SMEs
Skolkovo May Help Russia to Diversify
Make things more effective
Tapping into the Commonwealth connection
Innovative models for public finance
Facebook revolution but Indian style
The feel-good factor
Asian investors - a private equity opportunity
India needs to be taller and stronger
China´s low sales volume...
Nations playing leapfrog
Shafts of sunlight
What webs we weave
As performers go to Davos, the circus steals the show
Can we control the politicians?
 
2011
Europe’s reminiscence
China firms should go for win-win in overseas ventures
Of procrastination...
Making sense of profiteering
Truth about financial mess must be laid bare
Small is also beautiful
China can help Europe with debt crisis
Excising the cancer of global corruption
Education, a critical asset
Arab uprisings set in motion forces of creative destruction
A new era of change
We must ensure better education for all
Beijing wary of bankrolling a lost cause
Asean's re-emergence as a local and global leader
Why India's Role in the Global Economy is Still Work in Progress
Its the leadership, stupid!
Reverse globalisation: The new buzzword
Nations playing leapfrog
By Frank-Jürgen Richter
Khaleej Times, February 15, 2012
 

Current research by logistics operators shows some signs that the UK, Europe and the US are engaging in ‘re-shoring’ which follows many years of outsourcing and off-shoring.

The simple explanation is that major firms with extensive supply chains have suffered [enough] losses over the last couple of years due to the huge floods in Thailand and the Japanese nuclear disaster that both disrupted large swathes of land, factories and all infrastructures. The complexities of the supply chains meant that manufacturing in several countries was disrupted as vital components could not be placed in situ thus the final object, be it a car, TV or whatever, could not be completed — so the assembly had to be temporarily shut down with losses to the factory owners as well as their workers and customers.

Grumbles, leading to anger, confronted factory owners who moved their production to Asia. But at the time the owners could not ignore their shareholders demands (ie. to make greater profits), so the cheap and abundant workers of Asia linked to the willingness of entrepreneurs to build factories to assemble parts to return to the home nations was an offer too good to miss. This resulted in millions of Asian rural workers flocking to cities to make more money, to remit this back home to their families, and to make the entrepreneurs rich. It also resulted in defining an out-of-work state in Europe and the US where many had nothing but idleness to look forward to, even their children could face a life of no-work.

While there were increasing calls on nations and their people to engage in austerity measures, especially in Europe, we all noted governments supported out-of-work people. But now anger at grass-roots levels against over-large bonuses have forced governments to call upon businesses to release capital. There are many large firms who have not folded, but neither have they expanded. They are sitting on considerable liquidity not quite knowing what to do. Naturally the firms are reluctant to give cash for nothing and so they have begun to re-invest in training, in apprenticeship schemes, and to buy new equipment. Of course, over time, the workless people have lost vital components from their lives — their willingness to work a full day, their knowledge of current production practices and their pride. Apprentice schemes give back all these to the young - for it is the young who are most at risk across the globe if they do not work. They may become prey for extremists.

The retrenchment of local production will not have an instantaneous effect. Firstly, local wages are much higher than the Asians pay; and as global logistics add little to the overall price of any object — there will be little reduction of costs due to shortening the supply chain. However, the most important aspect of this new wave of manufacturing in Europe and the US is that their local firms will invest in new machinery, scrapping old inefficient legacy machinery: and investment means cash will flow into many niches.

Asia, through no real fault of its own, is becoming a region populated by old people; there will soon be a dearth of youngsters willing to assemble parts for little money. Their machinery too will become [relatively] old and without careful cash-flow management their entrepreneurs will be unable to balance profits against new process innovation or even to invest in the R&D required for local re-invigoration. Asia will be faced with the stagnation that increasingly hampered the developed nations over the past quarter of a century: we will once again see nation leapfrogging nation as history constantly informs us.

 

Frank-Jurgen Richter is founder and chairman of Horasis, a global business community


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