This regional analysis reviews progress in the Asia-Pacific region towards achieving the expected outcomes. The presentation gives detailed idea about all the countries through a rigorous PESTEL analysis.
6. ASIA28%GDP CONTRIBUTION
Continents
GDP (US$)
Percentage GDP
Europe
24.4 trillion
34%
North America
20.3 trillion
28%
Asia
18.5 trillion
26%
South America
4.2 trillion
6%
Africa
2.6 trillion
4%
Oceania
1.8 trillion
2%
Antarctica
N/A
-
14. FACTORSconsidered
Freedom of the press report 2014
Freedom House
Not free (0 to 30); Partly Free (31 to 60); Free (61 to 100) Freedom of press
15. BOTTOM TIER
Type of Government:
•Laos and Vietnam: Republic, but singleparty dominated
•Bhutan and Cambodia: Constitutionalmonarchy
•11 other countries follow either Presidential or Parliamentary Republic
16. BOTTOM TIER
Corruption
•Average CPI: 27
•136thposition out of 176
•Worst position: Afghanistan(CPI of 8)
•Bangladesh’sCPI: 27
Global Average CPI: 43
17. BOTTOM TIER
Freedom of the Press
•There is no country that is “FREE”
•Average: 65
•Nepal, Bangladesh, Bhutan, Indiaand Timorare “PARTLY FREE”
•10 others are “NOT FREE”
•Worst position: Laosand Vietnam(scores: 84)
Global Average: 48 (Partly Free)
18. MIDDLE TIER
Type of Government:
•Presidential Republic and Theocracy in Iran
•Military Regime since May, 2014 in Thailand
•Communist Party as government in China
•Constitutional monarchy in Jordan
•12others: Republic (Presidential or Parliamentary)
19. MIDDLE TIER
Corruption
•Average CPI: 32
•114thposition out of 176
•Worst position: Syriaand Uzbekistan(CPI of 17)
Global Average CPI: 43
20. MIDDLE TIER
Freedom of the Press
•There is no country that is “FREE”
•Average: 70
•Philippines, Indonesia, Maldives, Mongoliaand Georgiaare “PARTLY FREE”
•11 others are “NOT FREE”
•Worst performance: Uzbekistan, Turkmenistan, Syriaand Iran
Global Average: 48 (Partly Free)
21. TOP TIER
Type of Government:
•Oman, Saudi Arabia, Qatar and Brunei have absolute monarchy
•Malaysia, Kuwait, Bahrain, UAE, Japan have constitutionalmonarchy
•No SingleParty Republic
22. TOP TIER
Corruption
•Average CPI: 53
•49thposition out of 176
•Highest: Singapore(CPI is 83) is 5thin the world
Global Average CPI: 43
23. TOP TIER
Freedom of the Press
•Only one “FREE” country is Japan
•Average: 61
•SouthKorea, Israel, Kuwaitand Lebanonare “PARTLY FREE”
•11 others are “NOT FREE”
•Worst performance: Bahrainand Kazakhstan
Global Average: 48 (Partly Free)
25. FACTORSconsidered
1.GDP Growth Rate
•Source: World Bank 2013
2.Per Capita GDP
•Source: World Bank 2013
3.Inflation Rate
•Source: Trading Economics 2014
4.Unemployment Rate
•Source: World Bank 2012
26. BOTTOM TIER
GDP Growth Rate:
•Average GDP Growth rate 2011 to 2013 is 5.9%
•Constant GDP over these years: Bangladesh (6.5%), Laos (8.1%), Cambodia (7.3%)
•Decreasing growth rates: Iraq, Timor
•-15.1% in Yemen in 2011 due to reduction in oil production
•-0.1% in Kyrgyzstan in 2012 due to reduction in gold production
27. BOTTOM TIER
Per Capita GDP
•Average Per Capita GDP: $1,705
•Lowest Nepal, Afghanistan, Bangladesh
•But among these 3Bangladesh is the best off
•That of Nepal and Afghanistan decreasedin 2013
Global Average: $10,513
28. BOTTOM TIER
Inflation Rate:
•Average inflation rate: 5.88%
•Lowest in Timor (0%)
•Highest in Nepal and Bhutan (9.45%)
•Bangladesh: 6.91%
Global Average: 3.91%
29. BOTTOM TIER
Unemployment Rate:
•Average unemployment rate: 6.13%
•Double digits: Yemen, Tajikistan, Iraq
•Reason for Yemen: Undergoing consequences of revolution in 2011
•Bangladesh: 4.5% (very good)
Global Average: 8.4%
30. MIDDLE TIER
GDP Growth Rate:
•Average GDP Growth rate 2011 to 2013 is 6.3% (highest among all tiers)
•Constant GDP over these years: Uzbekistan (8.2%), Indonesia (6.2%), Jordan (7.3%)
•Most number of double digit growths: Mongolia, Turkmenistan; but their rates declining
•Reason for Mongolia: their Coal export is declining
31. MIDDLE TIER
Per Capita GDP
•Average Per Capita GDP: $4,675
•Increased from Bottom Tier
•None of them are below 3digits
•Lowest is in Uzbekistan: $1,878
Global Average: $10,513
32. MIDDLE TIER
Inflation Rate:
•Average inflation rate: 4.74%
•Lowest in Armenia (0.8%)
•Double digit inflations: Iran, Syria, Mongolia
•Reason for Iran: Multi tier exchange rate system
Global Average: 3.91%
33. MIDDLE TIER
Unemployment Rate:
•Average unemployment rate: 9.99% (highest amongst the tiers)
•Highest in Palestine (23%) and Armenia (18.5%)
•Reason for Armenia: Very high wealth gap
Global Average: 8.4%
34. TOP TIER
GDP Growth Rate:
•Average GDP Growth rate 2011 to 2013 is 3.9%(lowest among all tiers)
•Biggest reductions: Qatar and Saudi Arabia (oil dependency)
•Example of increasingGDP growth rate: Bahrain (due to a very strong financial industry)
35. TOP TIER
Per Capita GDP
•Average Per Capita GDP: $31,997
•Highest: Qatar $93,352 (number 1 in the world, expected to double by 2025, due to low cost of gas production and the FIFA world cup)
•Second highest: Singapore $55,182 (number 3 in the world)
Global Average: $10,513
36. TOP TIER
Inflation Rate:
•Average inflation rate: 2.96%
•Lowest in Brunei (-0.3%)
•Highest in Russia 9.54% (most recent reason: ban on Western food import)
Global Average: 3.91%
37. TOP TIER
Unemployment Rate:
•Average unemployment rate: 5.4% (lowest among tiers)
•No country with double digit unemployment rate
•Lowest unemployment in Qatar (0.6%)
•Reason for Qatar: Runs on expatriates (94% of working population expatriates as of 2012)
Global Average: 8.4%
39. •Population under poverty Line
•Rural Population with Water Access
•Urban Population with Water Access
•Urban Population with Sanitation Access
•Ratio of Female to Male Primary Enrollment
•Ratio of Female to Male Secondary Enrollment
•Ratio of Female to Male Tertiary Enrollment
•Life Expectancy at Birth in years
INDICATORS CONSIDERED
40. •Average population under the poverty line: 28%
•Bhutan, Pakistan, & Vietnam: 12%, 12.4% & 17.2%
•Timor-Leste, Tajikistan, & Afghanistan: 49.9%, 47.2%, % 35.8%
BOTTOM TIER
41. •Average rural population with water access: 75.6%
•Bhutan, Vietnam, & India: 97%, 94%, and 91%
•Yemen, Afghanistan, Timor-Leste: 47%, 56%, 61%
•Bangladesh: 84%
BOTTOM TIER
42. •Average Water Access to Urban Population: 91.5%
•Bhutan, Vietnam and Kyrgyzstan: near 100%
•Yemen, Bangladesh, Afghanistan: 72%, 85%, 89%
•All countries are faring well
BOTTOM TIER
44. •Average ratio of female to male in Primary Enrollment: 95%
•All countries are above or near Tier Average
•Except Afghanistan and Yemen with 71%and 82%
BOTTOM TIER
45. •Average ratio of female to male in secondary enrollment: 90%
•Pakistan, Laos, Yemen, Afghanistan are far behind with 73%, 87%, 65%, and 55%respectively.
•Bangladesh has the highest enrollment at 113%in the first tier
BOTTOM TIER
46. •Average ratio Female to Male in tertiary enrollment: 76.9%
•Exceptional performance: Kyrgyzstan, Myanmar, and Vietnam with 124%, 134%, and 101% respectively.
•Afghanistan and Yemen are still falling behind
BOTTOM TIER
47. •Average Life Expectancy in the Tier is 67years
•Afghanistan and Yemen behind with 61and 63years
•Bangladesh above average: 70years
BOTTOM TIER
48. •Average population under the poverty line: 17.7%
•Syria and Armenia having the highest with 35.2%and 32.4%
MIDDLE TIER
49. •Average water access to rural population: 84.6%
•Turkmenistan, Mongolia, and Azerbaijan with 54%, 61%, and 71% are falling behind
MIDDLE TIER
50. •Average Urban population with water access: 95.4%
•Except for Turkmenistan with 89%all the countries are near the average
MIDDLE TIER
51. •Average Sanitation Access for urban population: 87.8%
•Turkmenistan and Uzbekistan at 100%
•Mongolia, Indonesia, and China falling behind with 65%, 71%, and 74%
MIDDLE TIER
52. •Average ratio of female to male in Primary Enrollment: 98%
•Lacking of a few country data
•All countries lie near the average
MIDDLE TIER
54. •Tertiary enrollment ratio of female to male in average: 116%
•Sri Lanka in the lead with 165%and Armenia at 157%
•Uzbekistan falling behind with 64%
MIDDLE TIER
55. •Average Life Expectancy: 72years
•Turkmenistan lacking behind with 65years
•All other countries are around the average.
MIDDLE TIER
56. •Most countries can be said to have no population below the poverty line
•Average at 0.93%
•Lebanon with the highest at 28.6%
TOP TIER
57. •Rural Population with water access in average: 96.8%
•While Kazakhstan has the lowest at 86%
•Bahrain, Israel, Japan, Lebanon, Qatar, Cyprus, and UAE stands at 100%
TOP TIER
58. •Urban Population with Water Access in Average: 99%
•All countries are near the 100%in this indicator
TOP TIER
59. •Urban Population with access to sanitation in average: 96.4%
•Russian and S. Korea are lacking behind with 74%and 87%
TOP TIER
60. •Ratio of female to male in primary enrollment is 99%
•Lebanon only at 91%
TOP TIER
61. •Average in secondary enrollment: 98.6% with Turkey lacking behind with 94%
TOP TIER
62. •Tertiary enrollment in average: 171% with Qatar taking the lead at 676%
•Turkey lacking behind with 85%
TOP TIER
64. •Maximum Poverty Population in Asia is 50%
•In Timor-Leste
•Due to the country obtaining freedom only recently in 2002 from Indonesia
•Lowest Poverty Population in Asia is 1.7% in Malaysia
TIER COMPARISON
65. •Yemen has the lowest in terms of Rural Population with Water Access at 47% in Asia
•Due to the War the infrastructure to Yemen was horribly hit.
TIER COMPARISON
66. •In terms of Urban Population with Water Access, Asia as a whole enjoys an average of 90% accessibility.
•Only Yemen and Laos are falling behind.
•While Yemen’s fall in infrastructure is caused by the war.
TIER COMPARISON
67. •In terms of Urban Sanitation, Tier 1 and Tier 2 are performing very poorly with only 81%
•Only Turkmenistan and Uzbekistan have 100% in the two Tiers.
TIER COMPARISON
68. •Gender Equality in terms of Primary Enrollment is quite high in Asia as a whole
•Only Afghanistan lacking behind with 71%
•Bangladesh has the second highest female to male ratio in secondary enrollment in Asia. Armenia is in the lead
•Tier 1 countries are only ones lacking behind in gender equality in tertiary education.
TIER COMPARISON
69. •Life Expectancy has an average of 72years.
•None of the Tiers experience a life expectancy over 80years in average
•Only a few Tier 3 countries experience Life Expectancy over 80.
TIER COMPARISON
75. ACCESS TO ELECTRICITY
Highest 3 Access to Electricity
China
99%
Jordan
99%
Thailand
99%
Lowest 3 Access to Electricity
Phillipinnes
70%
Indonesia
72%
Sri Lanka
85%
81. Employment overview
AfghanistanNo limit0.0About 8 hours - 40 hours a week on 6.0BangladeshNo limit119.68 or 9 hours - According to Section 6.0Brunei DarussalamNo limit0.08 hours (Sect. 65 Employment Order, 6.0Cambodia2443.08 hours6.0ChinaNo limit242.48 hours6.0Hong Kong, ChinaNo limit782.88 hours6.0IndiaNo limit52.49 hours6.0Indonesia36232.08 hours for 5 workdays/week or 7 hours 6.0Iran, Islamic Rep.No limit400.18 hours6.0IraqNo limit92.38 hours - Art. 55, Labor Code6.0
82. Asian TAX
•Low tax revenues: lowest tax burdens in the world
•Tax composition: higher share of indirect taxes-Small tax base-Inefficiency of tax collection-High tax evasion-Large informal sector
•Weak personal income tax/property tax
•Limited social security contributions
•Inefficient tax system and administration
87. Paying taxes
economyName
Rank
Payments (number per year)
Time (hours per year)
Profit tax (%)
Labor tax and contributions (%)
Other taxes (%)
Total tax rate (% profit)
East Asia & Pacific
..
25
208
16.4
10.7
7.4
34.5
Europe & Central Asia
..
26
246
9
22.6
7
38.7
Latin America & Caribbean
..
30
369
20.5
14.7
12.1
47.3
Middle East & North Africa
..
18
220
12.4
16.3
3.6
32.3
OECD high income
..
12
175
16.1
23.1
2
41.3
South Asia
..
33
328
16.8
9
14.8
40.6
Sub-Saharan Africa
..
38
314
18.4
13.7
21.3
53.3
90. MIDDLE TIER
Countries Access to Electricity Forest Area (sq.km) Agro Land (% of total) Average Rainfall (mm/yr) Syria 92.8 % 4970 75.5 252 Philippines 70.2 % 77,198 40.6 2348 Uzbekistan 32,716 62.7 206 Indonesia 72.9 % 937,470 30.1 2702 Palestine 91.7 43.3 402 Maldives 9.0 23.3 1972 Mongolia 88.2 % 108,160 73.1 241 Turkmenistan 41,270 69.5 161 China 99.8 % 2,096,239 55.7 645 Thailand 99.0 % 189,868 41.2 1622 Armenia 2578 60.1 562 Georgia 27,397 35.5 1026 Jordan 99.4 % 975 11.3 111 Azerbaijan 96.1 % 9,360 57.7 447 Iran 98.3 % 110,750 30.1 228 Sri Lanka 85.4 % 18,454 41.8 1,712
91. TOP TIER
Countries Access to Electricity Forest Area (sq.km) Agro Land (% of total) Average Rainfall (mm/yr) Kazakhstan 33,034 77.5 250 Turkey 114,528 49.7 593 Lebanon 99.9 1369.8 62.4 661 Malaysia 99.5 203,692 24.0 2,875 Russia 8,091,500 13.1 460 Oman 98.0 20 5.7 125 Kuwait 100.0 63.9 8.5 121 Bahrain 99.4 5.4 11 83 UAE 100.0 3,183 4.8 78 Saudi Arabia 99.0 9,770 80.6 59 Republic of Cyprus 1732 12.8 498 Qatar 99.6 0.0 5.7 74 Brunei Darussalam 99.7 3782 2.2 2,722 Israel 99.7 1538 24.1 435 Japan 249,878 12.5 1668 South Korea 62,154 18.1 1054 Singapore 100.0 23 1.0 2,497
92. GENERIC EFFECTS OF ENVIRONMENTALCHANGE
•Agriculture: Changes in seasonal rainfall patterns, rising temperatures and increasing water stress will pose a risk of declining yields and farm revenues
•Fisheries: A general decline in fishery production is expected.
•Human health: Increased rains, frequent floods and sea level rise will lead to more water-borne infectious diseases, diarrhea and malnutrition.
•Biodiversity and ecosystems: Changes have been observed that could produce greater risks in terms of water supply, food security, and impacts from natural disasters.
•Heavily populated mega-deltas: These areas are at greater risk from flooding every year due to sea level rise and flooding from rivers.
95. •RISKS TO CORE BUSINESS FUNCTIONS:
damage to physical structures and assets such as production facilities or buildings.
increase cost of operations
impact quality of product or service
•RISKS TO THE VALUE CHAIN:
Availability of production inputs
Changing consumer demands
Availability and quality of natural resources such as water, utilities, logistics networks, health and safety of human resource
•RISKS TO LOCAL CIMMUNITIES
Affect the livelihood of local communities
Directly impacts corporate community investment programs
•RISKS FROM ECONOMIC AND SOCIAL CHANGES
Risks of humanitarian crisis, conflicts and instability
Refugees might migrate, increased competition for resources, rise in ethnic tensions
BUSINESS RISKS OF ENVIRONMENTAL CHANGE
96. BUSINESSES DEPENDENT ON WEATHER
SENSITIVE RESOURCES
Agriculture, forestry, agro-forestry, fishing, aquaculture, and tourism sectors in South and Southeast Asia
BUSINESSES THAT MAKE LONG TERM INVESTMENTS AND OPERATE LONG LIFE ASSETS
BUSINESSES WITH EXTENDED SUPPLY CHAINS
BUSINESSES THAT ARE GLOBAL IN NATURE
MICRO, SMALL AND MEDIUM ENTERPRISES
These include utilities such as energy or
transport, industrial facilities, and ports with a long operational life
Businesses that rely heavily on logistics and supply networks. Lean manufacturing based on JIT delivery and single source supply chain management are risk prone
Global supply chains are easily disrupted by problems in any one link in the chain. Off-shore production likely to suffer
The impact of a natural hazard can put these types of enterprises out of business
TYPES OF BUSINESSES LIKELY TO BE AFFECTED BY CLIMATE CHANGES
97. LOGISTICS
PHYSICAL ASSETS
Weather changes can disrupt logistics, including transport arrangements, supply chains, utilities, inventories etc.
Retail industry: disruptions in the supply chain and distribution network
Logistics companies: failure to meet contracts for delivery; loss of cargo
Physical assets, factory premises at risk from environmental anomalies. Buildings may be corroded, floods might short electric lines
Tannery Clusters in Dhaka: Neighborhoods prone to acid rain.
Real Estate and Construction: Design criteria may be subject to change; cannot rely on historical data
RISKS TO BUSINESSES IN SPECIFIC AREAS OF OPERATION
98. EFFICIENCY OF OPERATIONS
COMPETITION OVER RESOURCES
REPUTATIONAL RISKS
Some industrial processes and business
activities are temperature or climate sensitive and some require constant cooling. Increased cost due to investment in new technology or damage control
Climate change will act as another stressor in regions already experiencing water stress; put pressure on water resources.
Competition may lead to conflict, disapproval from local communities especially if water is diverted away from local houses and farmers.
Conflicts over protection of assets. For example, if businesses forcefully acquire resources. Example: Tata Nano-Singur Controversy
Food industry:increased need for cooling for food preparation and storage
ICT: increased need for cooling in data centers
Manufacturing: increased need for cooling in process environment.
Electric utilities: greater uncertainty over water supply for cooling power plants
Food and beverage: access to key resources, water, and other natural resources
This is a particular risk factor in countries vulnerable to climate change, with large parts of the population depending on
climate-sensitive resources.
99. FINANCIAL DRIVERS
INCREASED INSURANCE COSTS
Operational costs and business continuity costs can increase. Institutional investors and banks are increasingly concerned about climate change
Electric utilities, properties, mining and
extractive industries, agriculture, and forestry
Insurance might no longer be available for certain assets in vulnerable areas. Premiums may increase.
All sectors that will not be able to insure weather- related damages as they become uninsurable; small insurance companies more likely to be affected
WORKFORCE
Extreme weather events and changes in the distribution of vector-borne diseases can lead
to more lost days. Health and safety risks may increase where business operations are prone to extreme
weather events.
Sectors that have outdoor field work e.g. construction, geological research, scientific expeditions, rural development projects in Africa and other regions
100. “Costs of Climate Change and Adaptation in South Asia”
ADB, 2014
“Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka -will see an average economic loss of around 1.8 percent of their collective annual gross domestic product (GDP) by 2050, rising sharply to 8.8 percent by 2100 if the world continues on its current fossil fuel-intensive path.”
“The Maldives would be the worst affected, and could be losing 12.6 percent of its economy annually by 2100. Average annual economic losses could amount to up to 9.4 percent in Bangladesh by 2100.”
“The losses in Nepal could rise to 9.9 percent -largely because of melting glaciers –while they could total 8.7 percent in India, 6.6 percent in Bhutan, and 6.5 percent in Sri Lanka”
“The East Asian economy would lose 5.3 percent; the Southeast Asian economy would lose 6.7 percent, and the Pacific 12.7 percent”
101. TAKE AWAYS
SINGLE PARTY REPUBLIC COUNTRIES
PER CAPITA GDP
SOCIAL DEVELOPMENT DISTRIBUTION
CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES
102. SINGLE PARTY REPUBLIC COUNTRIES
PER CAPITA GDP
SOCIAL DEVELOPMENT DISTRIBUTION
CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES
TAKE AWAYS
103. PER CAPITA GDP
SOCIAL DEVELOPMENT DISTRIBUTION
CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES
SINGLE PARTY REPUBLIC COUNTRIES
TAKE AWAYS
104. SOCIAL DEVELOPMENT DISTRIBUTION
CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES
PER CAPITA GDP
SINGLE PARTY REPUBLIC COUNTRIES
TAKE AWAYS
105. CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES
SOCIAL DEVELOPMENT DISTRIBUTION
PER CAPITA GDP
SINGLE PARTY REPUBLIC COUNTRIES
TAKE AWAYS