Young Minds
Young Minds
UPDATE: In a significant milestone for the Philippines, the Regional Comprehensive Economic Partnership (RCEP) officially took effect on June 2, 2023. This historic trade agreement marks the culmination of over two years since the participating countries concluded the free trade agreement (hereinafter referred to as the “Agreement”) in November 2020.
Buddhism, one of the world's major religions, has left an indelible mark on the cultural and spiritual landscape of Asia. Its origins can be traced back to ancient India, but as Buddhism spread across the continent, it underwent transformations, absorbing local customs and beliefs, and giving rise to diverse regional expressions of the faith.
Could a new currency be set to challenge the dominance of the dollar? Perhaps, but that may not be the point. In August 2023, South Africa will host the leaders of Brazil, Russia, India, China and South Africa – a group of nations known by the acronym BRICS. Among the items on the agenda is the creation of a new joint BRICS currency.
Singapore (Cambodia) International Academy has signed a memorandum of understanding (MoU) with the Ministry of Labour and Vocational Training to provide technical and vocational education and training (TVET), so young Cambodians will be able to meet the demands of the modern job market.
Philippines: Marcos dynasty ratify RCEP
By Dezan Shira & Associates (edited)
In a significant struggle for the Philippines and significant use of political capital from the Marcos dynasty, the Regional Comprehensive Economic Partnership (RCEP) officially took effect on June 2, 2023. This historic trade agreement marks the culmination of over two years since the participating countries concluded the free trade agreement (hereinafter referred to as the “Agreement”) in November 2020.
The Department of Trade and Industry (DTI), which played a key role in the RCEP negotiations, has called on Philippine enterprises to capitalise on the opportunities presented by this new agreement.
The Regional Comprehensive Economic Partnership is an ambitious free trade agreement that brings together 15 countries in the Asia-Pacific region, representing a staggering 30 percent of the world’s population and accounting for approximately 30 percent of global GDP. This landmark agreement was signed after eight years of negotiations, solidifying a strong economic partnership among nations.
The RCEP unites the member states of the Association of Southeast Asian Nations (ASEAN), including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, with five of their significant trading partners: Australia, China, Japan, New Zealand, and South Korea. Together, this collaboration forms a formidable economic bloc that will redefine regional trade dynamics and foster deeper integration among its participants.
At its core, the RCEP aims to streamline trade and investment flows, reduce trade barriers, and establish a more transparent and predictable business environment. It covers a wide range of sectors, including goods, services, investment, intellectual property, e-commerce, and more. By harmonizing rules and regulations across participating countries, the agreement seeks to create fair competition and simplify trade processes.
The RCEP also represents a departure from traditional regional trade agreements by uniting advanced economies and emerging markets. This diverse membership allows the RCEP to encompass a broad spectrum of industries and provides a platform for cross-border collaboration, ultimately boosting competitiveness and creating new avenues for economic growth.
For the Philippines, the implementation of this agreement heralds a new era of immense potential. As a developing nation with a vibrant economy and a strategic geographical location, the Philippines stands to gain from increased market access, enhanced investment opportunities, and strengthened regional supply chains. Moreover, the agreement presents an opportunity for the country to leverage its competitive advantages in sectors, such as agriculture, manufacturing, and services while fostering innovation and technological advancements.
In the following sections, we will delve deeper into the implications of the RCEP’s implementation in the Philippines, exploring its potential impact on trade patterns, economic growth, and overall regional integration. We will also examine the challenges and opportunities that lie ahead, as the country embarks on this transformative journey.
The implementation of the RCEP in the Philippines carries profound implications for the nation across various aspects of its economy and trade landscape. As this landmark agreement takes effect, it brings forth a range of opportunities and challenges that will shape the country’s future trajectory, including:
Expanded market access and trade flows: One of the key benefits of the RCEP for the Philippines is the expanded market access it provides. By reducing trade barriers and eliminating tariffs on a wide array of goods and services, the agreement opens new avenues for Philippine businesses to tap into a larger consumer base within the RCEP member countries. This increased access can drive export growth, enhance market diversification, and contribute to the country’s economic expansion.
Strengthened regional supply chains: As the agreement aims to promote closer economic integration among its member nations, fostering the development of regional supply chains, for the Philippines, this presents an opportunity to deepen its participation in global value chains (particularly in sectors where it holds a competitive advantage). By integrating with the supply chains of RCEP countries, the Philippines can enhance its manufacturing capabilities, attract foreign direct investment (FDI), and leverage its skilled workforce.
Enhanced investment opportunities: The RCEP facilitates investment flows and provides a more predictable and transparent investment environment. This can attract foreign investors to the Philippines, as the agreement offers a framework of rules and regulations that protect their investments. The increased inflow of foreign direct investment can stimulate economic growth, promote technology transfer, and spur innovation in key sectors of the Philippine economy.
While the RCEP presents the Philippines with significant opportunities, it poses challenges and adjustments. Local industries may face increased competition from foreign firms, necessitating the need for strategic planning, improved productivity, and enhanced competitiveness.
On the other hand, there is a great potential for broader socioeconomic benefits: the increased trade and investment flows can generate employment opportunities, especially in sectors that experience growth due to the agreement. Additionally, consumer welfare may improve through access to a wider range of quality products at competitive prices, stimulating domestic consumption and raising living standards.
Agriculture
In the agriculture sector, there were concerns about the RCEP leading to an influx of imported produce. However, Arsenio Balisacan, the Secretary of the National Economic and Development Authority, addressed these concerns by explaining that only 15 out of 33 tariff lines for agricultural commodities will have tariff reductions. Most of these commodities are not produced in the Philippines, and the affected tariff lines make up only 1.9 percent of agricultural tariff lines and 0.8 percent of imports. Balisacan also highlighted the need for investments in AgriTech, infrastructure, and mechanization to improve yields, and irrigation, and reduce costs and wastage.
Electronics
The electronics sector in the Philippines plays a significant role in the country’s manufacturing output. The export of electronics and semiconductors is expected to reach US$50 billion in 2023, with semiconductors alone accounting for 47 percent of total exports.
The RCEP can help Philippine electronics and semiconductor manufacturers by reducing costs for imported components and raw materials, as well as for exported electronic goods. This sector heavily relies on imported parts and serves as the back-end assembly and testing stage in the supply chain. By improving market access, the Philippines aims to attract investments to enhance its participation in the global value chain, especially in areas like consumer electronics, power electronics, biomedical electronics, and auto electronics.
Business process outsourcing
The BPO industry is another thriving sector in the Philippines, contributing around US$30 billion annually to the economy (equivalent to 11 percent of GDP). The country holds a significant share of the global BPO market, employing over 1.3 million people in more than 1,000 BPO companies, along with an estimated 1.5 million Filipino freelance workers.
The RCEP can stimulate investments to expand the BPO industry into knowledge process outsourcing (KPO). This includes IT outsourcing, legal transcription, animation game development, healthcare processing and coding, data analytics, financial research, and software development. By attracting multinational companies, the Philippines aims to further develop its KPO services and opportunities.
Other industries to watch
The RCEP agreement is expected to lead to increased economic integration, creating growth opportunities and attracting investment in various sectors. These opportunities include:
E-commerce: The RCEP agreement promotes digital connectivity, which creates a favorable environment for the expansion of e-commerce. Investors can consider investing in online marketplaces, logistics infrastructure, and digital payment systems to benefit from this growing sector.
Renewable energy: Both China and the Philippines have made commitments to develop renewable energy sources. Investors can explore projects related to solar, wind, and hydroelectric power to take advantage of the emphasis on sustainable energy and contribute to the growth of this sector.
Financial services: The RCEP agreement facilitates financial cooperation, opening up opportunities for growth in the financial services sector. Investments in areas such as banking, insurance, fintech, and digital payment platforms can yield significant returns as financial integration increases within the region.
Tourism and hospitality: With the implementation of the RCEP, there is likely to be an increase in travel between China and the Philippines, which will benefit the tourism and hospitality industries. Investors can capitalize on the growing demand for accommodations, attractions, and travel services by considering investments in these sectors.
The RCEP’s implementation in the Philippines symbolizes a transformative moment, where the nation stands poised to harness its strengths and seize the opportunities this landmark agreement offers. By leveraging its strategic geographical location and vibrant economy, the Philippines can position itself as a competitive player in the global market, contributing to regional prosperity and building a brighter future for its people.
Read more here.
Tracing the Path of Enlightenment
By Bikash Kali Das
Buddhism, one of the world's major religions, has left an indelible mark on the cultural and spiritual landscape of Asia. Its origins can be traced back to ancient India, where it emerged as a profound philosophy of life and a path to enlightenment. As Buddhism spread across the continent, it underwent transformations, absorbing local customs and beliefs, and giving rise to diverse regional expressions of the faith. Nalanda, the ancient seat of learning in India, played a pivotal role in the dissemination of Buddhist teachings and served as a beacon of wisdom for Asia.
Located in modern-day Bihar state, Nalanda University was a renowned center of Buddhist scholarship and monasticism for many centuries. It was established around the time of Buddha himself in the 5th century BC and attracted scholars and seekers of knowledge from far and wide. Nalanda became a hub of pilgrimage and exchange, drawing devotees and intellectuals from various parts of Asia who sought to deepen their understanding of Buddhism.
One of the most significant relationships in Buddhism's expansion was between India and China. Historical accounts provide us with insights into the journeys of Chinese pilgrims such as Faxian, Yijing, and Xuanzang, who travelled to India between the 4th and 8th centuries in search of Buddhist scriptures and artistic representations of the faith. Notably, Xuanzang and Yijing spent several years in Nalanda during the 7th century, immersing themselves in its rich intellectual and spiritual environment.
These Chinese monks, along with other non-Indian scholars, returned to their homelands carrying a vast collection of Buddhist scriptures. They diligently translated these texts from Sanskrit into their native languages, thus contributing to the spread of Buddhist philosophy and practice in China. This exchange of knowledge and artistic representations between India and China played a crucial role in shaping the development of Buddhism in East Asia.
Evidence of Buddhism's influence can be found in various forms of material culture scattered across the globe. For instance, the Tang dynasty Saddharma Pundarika Sutra, exquisitely preserved in the Chinese University of Hong Kong Art Museum, attests to the enduring legacy of Buddhism's journey from India to China. Similarly, a limestone stele from the Asian Civilisations Museum combines Indian iconography with distinct Chinese features, showcasing the amalgamation of local and foreign influences.
Moreover, the intricate carvings of a Dvarapala figure from the Christopher James Frape collection exhibit the vibrant artistic style of the high Tang period, reflecting Mahayana Buddhism's preference for a wide array of deities. Even seemingly mundane objects like a terracotta pilgrim's bottle from the Silk Road offer glimpses into the everyday life of Buddhist practitioners as they embarked on their spiritual quests.
Gandhara sculpture, with its Greco-Roman influences, presents a unique blend of classical aesthetics and Buddhist symbolism. A notable example is a stone image of a standing Maitreya adorned with non-Indian ornaments, demonstrating the assimilation of diverse cultural elements into Buddhist art.
In addition to the Indian-Chinese connection, Southeast Asia also played a crucial role in the spread of Buddhism. The Srivijaya Kingdom, located in present-day Indonesia and Malaysia, emerged as a centre of Vajrayana Buddhism. Pilgrims and scholars from various parts of Asia, including China and India, flocked to Srivijaya to engage in intellectual and spiritual exchanges. Chinese monk Yijing, who visited Sumatra multiple times on his way to Nalanda, likely brought back indigenous Srivijayan artistic forms to India, contributing to the cross-pollination of artistic styles.
The artistic heritage of Buddhism in Southeast Asia is also notable, with the region showcasing its unique interpretations of Buddhist art and architecture. From the intricately carved temples of Angkor Wat in Cambodia to the serene Buddha statues of Borobudur in Indonesia, the region's artistic expressions reflect a fusion of local traditions with Indian and Chinese influences.
In Cambodia, the Khmer Empire's devotion to Buddhism can be witnessed in the grandeur of Angkor Wat, a UNESCO World Heritage site and the largest religious monument in the world. The temple complex is adorned with intricate bas-reliefs depicting scenes from Buddhist mythology and teachings. The iconic smiling faces of Bayon Temple, with its numerous stone carvings, also exemplify the profound influence of Buddhism on Khmer art.
In neighbouring Thailand, the intricate and ornate architecture of Buddhist temples, or wats, is a testament to the country's deep-rooted Buddhist traditions. The gleaming golden spires of temples such as Wat Arun in Bangkok and Wat Phra That Doi Suthep in Chiang Mai draw visitors from around the world. These temples house revered Buddha images, and their elaborate murals depict stories from the life of the Buddha and Buddhist cosmology.
In Myanmar (formerly Burma), the Shwedagon Pagoda stands as a shimmering symbol of Buddhist spirituality. This sacred site, believed to enshrine relics of the Buddha, is adorned with thousands of precious stones and gold leaf. Myanmar's Buddhist art also includes exquisite wooden carvings, lacquerware, and intricate tapestries that depict Buddhist legends and stories.
Further east, in Vietnam, Buddhism has played a significant role in shaping the country's cultural landscape. The ancient city of Hue is home to numerous pagodas, including the famous Thien Mu Pagoda, which overlooks the Perfume River. It's a seven-tiered tower and serene surroundings attract pilgrims and tourists alike. The One Pillar Pagoda in Hanoi, a distinctive architectural marvel, is another iconic Buddhist site in Vietnam.
In Indonesia, the magnificent Borobudur temple complex on the island of Java is a UNESCO World Heritage site and a testament to the country's rich Buddhist heritage. The colossal stupa, adorned with intricate relief panels, tells the story of the Buddha's life and teachings. Borobudur, with its serene atmosphere and breathtaking views, continues to be a significant pilgrimage site for Buddhists.
The artistic expressions of Buddhism in Southeast Asia encompass not only monumental structures but also delicate sculptures, paintings, and other art forms. These artistic creations serve as tangible manifestations of Buddhist beliefs and philosophies, providing a glimpse into the region's spiritual and cultural history.
The spread of Buddhism from its birthplace in India to China and Southeast Asia is a testament to the enduring power of its teachings. The exchange of ideas, scriptures, and artistic representations between these regions has shaped the diverse expressions of Buddhism that we see today. Nalanda, with its position as a center of learning, and the journeys of Chinese monks like Xuanzang and Yijing, played vital roles in this cross-cultural exchange.
As Buddhism continues to thrive in the present day, it is essential to appreciate the interconnectedness of its various traditions and the richness of its artistic heritage. The enduring influence of Buddhism can be witnessed in the vibrant temples, sculptures, paintings, and rituals that continue to inspire and guide millions of people across Asia and beyond.
Read more here.
BRICS currency challenges US-led economic order
By Mihaela Papa (edited)
Could a new currency be set to challenge the dominance of the dollar? Perhaps, but that may not be the point. In August 2023, South Africa will host the leaders of Brazil, Russia, India, China and South Africa – a group of nations known by the acronym BRICS. Among the items on the agenda is the creation of a new joint BRICS currency.
The BRICS summit comes as countries across the world are confronting a changing geopolitical landscape that is challenging the traditional dominance of the West. And while the BRICS countries have been seeking to reduce their reliance on the dollar for over a decade, Western sanctions on Russia after its invasion of Ukraine have accelerated the process.
Meanwhile, rising interest rates and the recent debt-ceiling crisis in the U.S. have raised concerns among other countries about their dollar-denominated debt and the demise of the dollar should the world’s leading economy ever default.
With 88% of international transactions conducted in U.S. dollars, and the dollar accounting for 58% of global foreign exchange reserves, the dollar’s global dominance is indisputable. Yet de-dollarization – or reducing an economy’s reliance on the U.S. dollar for international trade and finance – has been accelerating following the Russian invasion of Ukraine.
The BRICS countries have been pursuing a wide range of initiatives to decrease their dependence on the dollar. Over the past year, Russia, China and Brazil have turned to greater use of non-dollar currencies in their cross-border transactions. Iraq, Saudi Arabia and the United Arab Emirates are actively exploring dollar alternatives. And central banks have sought to shift more of their currency reserves away from the dollar and into gold.
All the BRICS nations have been critical of the dollar’s dominance for different reasons. Russian officials have been championing de-dollarization to ease the pain from sanctions. Because of sanctions, Russian banks have been unable to use SWIFT, the global messaging system that enables bank transactions. And the West froze Russia’s US$330 billion in reserves last year.
Meanwhile, the 2022 election in Brazil reinstated Luiz Inácio Lula da Silva as president. Lula is a longtime proponent of BRICS who previously sought to reduce Brazil’s dependence on and vulnerability to the dollar. He has reenergized the group’s commitment to de-dollarization and spoken about creating a new Euro-like currency.
The Chinese government has also clearly laid out its concerns with the dollar’s dominance, labeling it “the main source of instability and uncertainty in the world economy.” Beijing directly blamed the Fed’s interest rate hike for causing turmoil in the international financial market and substantial depreciation of other currencies. Together with other BRICS countries, China has also criticized the use of sanctions as a geopolitical weapon.
The appeal of de-dollarization and a possible BRICS currency would be to mitigate such problems. Experts in the U.S. are deeply divided on its prospects. U.S. Treasury Secretary Janet Yellen believes the dollar will remain dominant as most countries have no alternative. Yet a former White House economist sees a way that a BRICS currency could end dollar dominance.
A BRICS version of the Euro is unlikely for now; none of the countries involved show any desire to discontinue its local currency. Rather, the goal appears to beto create an efficient integrated payment system for cross-border transactions as the first step and then introduce a new currency.
Building blocks for this already exist. In 2010, the BRICS Interbank Cooperation Mechanism was launched to facilitate cross-border payments between BRICS banks in local currencies. BRICS nations have been developing “BRICS pay” – a payment system for transactions among the BRICS without having to convert local currency into dollars. And there has been talk of a BRICS cryptocurrencyand of strategically aligning the development of Central Bank Digital Currenciesto promote currency interoperability and economic integration. Since many countries expressed an interest in joining BRICS, the group is likely to scale its de-dollarization agenda.
And de-dollarization efforts have been struggling both at the multilateral and bilateral level. In 2014, when the BRICS countries launched the New Development Bank (NDB), its founding agreement outlined that its operations may provide financing in the local currency of the country, however, local currency financing represents only 22% of the bank’s portfolio, although NDB president, Dilma Rousseff the former President of Brazil, hopes to increase that to 30% by 2026.
Similar challenges exist in bilateral de-dollarization pursuits. Russia and India have sought to develop a mechanism for trading in local currencies, which would enable Indian importers to pay for Russia’s cheap oil and coal in rupees. However, talks were suspended after Moscow cooled on the idea of rupee accumulation.
Despite the barriers to de-dollarisation, the BRICS group’s determination to act should not be dismissed – the group has been known for defying expectations in the past. Despite many differences among the five countries, the bloc managed to develop joint policies and survive major crises such as the 2020-21 China-India border clashes and the war in Ukraine. BRICS has deepened its cooperation, invested in new financial institutions and has been continuously broadening the range of policy issues it addresses.
It now has a huge network of interlinked mechanisms that connect governmental officials, businesses, academics, think tanks and other stakeholders across countries. Even if there is no movement on the joint currency front, there are multiple issues on which BRICS finance ministers as well as central bankers regularly coordinate – and the potential for developing new financial collaborations is particularly strong.
A new global economic order will not emerge out of a new BRICS currency or de-dollarization happening overnight. But it can potentially emerge out of BRICS’ commitment to coordinating their policies and innovating – something this currency initiative represents.
Read more here.
Cambodia-Singapore ink vocational education deal
By Chea Sokny
Singapore (Cambodia) International Academy has signed a memorandum of understanding (MoU) with the Ministry of Labour and Vocational Training to provide technical and vocational education and training (TVET), so young Cambodians will be able to meet the demands of the modern job market.
The signing ceremony, in late June, was witnessed by Minister of Labour and Vocational Training Ith Samheng and school principal Tan Wee Pin. The agreement will contribute to the government’s declared goal of providing TVET opportunities to 1.5 million youth, starting from in August.
“The goal of our cooperation – with the labour ministry and the government alike – is to help train employees and youth in vocational skills to increase their ability to meet the needs of the Kingdom’s job market,” said Tan.
He added that his school utilised existing educational programmes from Singapore, so would not need to rewrite its curriculums. The school employs qualified trainers from Singapore.
Samheng noted that the government had instructed the ministry plan vocational training for 1.5 million poor and vulnerable youth, with the government responsible for tuition fees. It will also provide the students with monthly allowances.
“In order to complete the required training, we need additional partners to assist us with the preparation of TVET courses. We signed this MoU in order to allow the Singapore academy to participate in developing the vocational skills of the Kingdom’s youths,” he added.
Collective Union of Movement of Workers president Pav Sina was pleased by the cooperative agreement.
“As Cambodia undergoes the Industry 4.0 revolution, workers in all sectors need to increase their capabilities,” he said.
He explained that learning a clear skill that meets the demands of the job market was an excellent way to secure a decent job, especially in roles where salaries are commensurate with knowledge and abilities.
“Therefore, this training is a great opportunity for those youths who have dropped out of school. It also represents a good opportunity for workers who want to increase their skills and become more competitive in the job market. This will improve their future prospects,” he added.
He warned that students who graduate from TVET courses would still need to practice their skills and work to improve them, otherwise they are likely to end up working in poorly paid unskilled manual labour jobs.
Read more here.