The first AsiaGlobal Dialogue (AGD 2012) was held from May 31 to June 2, 2012 and was organized by the Asia Global Institute’s predecessor, the Fung Global Institute. The event, which took place in Hong Kong and Shenzhen, attracted more than 400 participants from 22 countries. The group explored the emergence of a new global economy, and looked at how business could be a positive and dynamic agent of change as the global economy re-balances to the East.
AGD 2012 featured keynote speakers including Fung Group Chairman Victor K. Fung, Mr. George Yeo, Mr. Paul Volker, Mr. Tung Chee Hwa, Professor Michael Spence and Professor Paul Romer. They held in-depth discussions spread out across multiple parallel tracks structured around four themes: Global Supply Chains, Asia’s New Financial Structure, The Evolving Growth Models of China and India, and Asia’s Sustainable Development.
A Global Think-Tank in Asia for the 21st Century
Towards a New Global Economy: Re-defining Asia’s Role
Transforming China’s Economy and Banking Sector - A Titanic Story of Reform
The Rising Role of India in the New Global Economy
Business in Asia - Policy Challenges in the New Global Landscape
Global Growth and Related Challenges
Towards a New World of Finance
Evolving Growth Models - China and India
Asia’s Sustainable Development
China-US Relations in an Emerging East Asia
Global Supply Chains
Re-defining China’s Role in Global Growth
“The mission for the Fung Global Institute is to generate, disseminate and innovate thinking and business-relevant research on critical global issues from Asian perspectives. We always use the word “perspectives”, in the plural, as we do not believe there is one single Asian perspective but many diverse Asian perspectives.”
Founding Chairman Victor K. Fung introduced the Institute and the thinking behind its establishment in August 2011
When the centre of the global economy shifts so does its intellectual centre. We can see this shift in action today as emerging economies begin to exert their influence on the global policy agenda
For gaining a sense of the new global economy, HSBC’s research indicates that by 2050: -
Europe today is having an emerging markets crisis because the lessons of the late 1990s Asian crisis - of building up excessive leverage and inflexible exchange rates - were not learned. Four essential steps should be taken to ensure the eurozone remains intact: -
Unseen factors could test assumptions about the faster-growing markets. In China, for example: -
Financial services will need to play a greater role. The revolution in trade must be matched by the development of stronger capital markets. Asian financial centres will need to continue to grow rapidly to support expanding capital flows - and to support the internationalisation of the renminbi.
"When I was appointed the first Chairman of the China Banking Regulatory Commission, or CRBC, in 2003, I took a close look at all kinds of regulatory and market data and information, what I saw was quite terrifying... I felt like the captain of the Titanic."
"India recognises the importance of interdependence in the new global economy and its responsibility to reform the institutions of global governance. We must also integrate at a much faster pace with the rest of Asia."
(Left to right) Yuning Fu, Azman Mokhtar, George Yeo, Victor K Fung
A panel of Asian business and policy leaders provided perspectives on changes being experienced in the region as the global economy re-balances to the East. They also discussed the role of business and policymakers in meeting new challenges and maximising new opportunities.
"l think there's a growing awareness that if we try to accomplish global transformation using the old growth model, it'll fail. The natural resource base of the planet is just not up to that."
- Massive failure in the area of counter-cyclicality in both private and public sectors with varying weights across countries (and with some notable exceptions)
- Substantial demographic headwinds pushing against fiscal re-balancing and growth, with embedded inter-generational fairness and equity issues
- An involuntary build-up of debt and other liabilities as a result of the shock of the crisis
- Countries running on Defective Self-Limiting Growth Models that have built-in decelerators and cannot keep functioning
"Within a generation, China alone will be far larger economically than either North America or Europe. Barring some great unknown catastrophe, Asia might eventually approach the size of the United States and Europe together."
Gala Dinner Keynote Address
Parallel Breakout Sessions
The Dragon and the Elephant - A Continuing Tale of State vs Market
China and India are at different stages in their development, panellists noted, with China being a manufacturing-based economy and India a consumption-based one. Discussions invariably point to their different political systems, but the critical issues are similar for both countries: inadequate governance and the worrying social implications of higher growth with widening wealth gaps.
Urbanisation - Transforming Policy and Business
Recognising that urbanisation is becoming the engine of economic growth in both China and India, panellists discussed how China and India should plan and manage urbanisation in accordance with environmental and social sustainability principles, as well as the challenges and opportunities each country may face in the process.
Parallel Breakout Sessions
Sustainable Growth in Asia - Finding the Right Leverage Points
Panellists discussed ways in which economic development could occur in a manner that was both environmentally and socially responsible. They considered the role of values, collective action and technology in achieving this. The challenge of coordinating collective action needed to be addressed to tackle wider issues of environmental sustainability.
Making Markets Work for the Millions
With the world population approaching 9 billion by 2050 - 5 billion in Asia - the pressure is on to find suitable growth models that can lead Asia into its next stage of development. Markets were instrumental in the “Asian miracle” of the past. The question is whether markets can also be relied upon to bring the millions onto a future pathway of prosperity within social and environmental limits.
"I believe a new type of great power relationship between one rising power, China, and the present leading power, the United States, is not only possible but also necessary."
Luncheon Keynote Address
Parallel Breakout Sessions
Made in the World - What’s Changing Supply Chains?
The panel discussed the defining features of today’s supply chains and key factors changing the environment in which they operate. These include shifts in global patterns of production and consumption and social and environmental factors. Participants focused on the global food supply chain, and on potential trade-offs between higher value-added production and job creation.
Supply Chains in an Uncertain World - Adding Value and Managing Risks
Panellists looked at opportunities and risks for supply chains, acknowledging that challenges and uncertainties would only increase in step with globalisation and rates of change. It was agreed that the architecture of supply chains is as important as their operations. Risks include disruptive technologies, natural disasters and labour costs.
AGD 2012 in Shenzhen
On 2 June, Asia-Global Dialogue 2012 moved from Hong Kong for a half- day event, Asia-Global Dialogue in Shenzhen convened with our strategic partner Peking University HSBC Business School. AGD 2012 in Shenzhen explored the theme “Re-defining China’s Role in Global Growth”.
AGD 2012 in Shenzhen attracted more then 500 participants including graduate students, eminent Chinese academics and thought leaders, in addition to international participants from AGD 2012 in Hong Kong.