Horasis:The Global Visions Community Horasis China and business Asian business Asian business globalization systemic risk sustainability management consulting Asian trade globe visions leadership skills scenario-building World Economic Forum Frank-Jürgen Richter Frank-Jurgen Richter Frank-Juergen Richter Frank Richter
      Home Site Map Email
Home
Philosophy
Management
Events
Contact
All press releases
2016
The Free Press Journal
India's Frank Friend
Inaugural Horasis Asia Meeting to bring CEOs together in Bangkok, scheduled for Nov 27-28
EU economy will suffer from terrorist attacks, but investment from China won’t stop
Premier assures stable yuan
2015
There is a Need to Out-guess the Economy a Long Time into the Future
Collaborative approaches to sustainable growth
Enacting visions for a sustainable future
For investors, information on laws, regulations quite important
Frank-Jürgen Richter: Li's Davos speech gives a clear outline of China's future
Jaipur - Voices from CII
'Sanctions always hurt wrong person,' open dialogue needed
 
2014
A German Expert’s Global Vision on China
Economic Reforms in China: which model of development?
 
2013
China’s New Role in the Global Arena
Horasis Announces Global India Business Meeting 2014
Vision For The Future
 
2012
Outbound express
Ras Al Khaimah to host global Arab Business Meeting in Dec
Chengdu ‘could be Silk Road hub’
Fruitful coalition
Old model of capitalism is ‘coming to an end’
Africa: Climbing the Value Chain
We believe the profits to be genuine
Ray of hope for African FDI?
No PIIGS in Asia
Decoding the Euro Crisis
Where To, The Euro Zone?
Economic Outlook 2012
 
2011
The Big Fall
Compromise is good for politics
The EU problem hurts China more than India
Even the Tatas are not full-fledged brands overseas: Richter
The European Crisis Is An Opportunity For India
Europe Has A Superiority Syndrome
India is no longer decoupled
Interview with CNBC
Global India Business Meeting
What's the world coming to?
Global Russia Business Meeting 2011
100 Global Leaders
 
2010
Asean Affairs China in Spotlight
Emerging Markets to the Fore
Global India Business Meeting to take part in Madrid
Dialogue with Dr Mahathir
Global Arab Business Meeting
2009
Patriarch Kirill
Trade Protectionism
Chinese Business Leaders of the Year
Spotlight on Macau
Global China Business Meeting
Tamil Nadu
India: Enthusiasm and Concern
Indian Business Leaders
Minister Anand Sharma
Emerging Markets Investors Roundtable
 
2008
Bargains for China
Global China Business Meeting
Global India Business Meeting
Responsibility to the Future
To Brazil, to Gold
China Meeting 2008
 
2007
China and Energy
Business Leader of the Year
China and Africa
Jean-Claude Trichet
Global Bailout
IHT
China Meeting
China-Europe Connector
Source Code China
China Meeting in Frankfurt
Meeting with José Socrates
2006
Connecting China & Europe
IHT, 9/06
China Meeting in Geneva
High-Level Meeting
Dato' Sri Najib Tun Razak
Managing Global Challenges
Six Billion Minds
2005
China's energy needs
China meeting in Geneva
From Local to Global
Global Outsourcing Report
Release of 'Global Future'
Media Industry's Future
China's Rise - Europe's Fall!
Jagdish Bhagwati, 8/05
Jagdish Bhagwati, 7/05
Dinner on Globalization
 
The Free Press Journal

September 29, 2016

 

Switzerland-based Frank-Jürgen Richter is known by the top business, political and intellectual leaders around the world, for building bridges between the emerging and developed markets. Moreover, Richter is a scholar and an author, known for creating powerful platform for cooperation among Asian countries. One of the most-talked bonds in the market – Masala bonds, was one of his pet projects. In an interview with Free Press Journal, Horasis’ founder and World Economic Forum’s former director talks about the future of Asian market.

Having worked with Indian companies, what do you think are the common mistakes Indian companies make while investing overseas?
India is like a new force of globalisation. Today, you see more and more Indian investors investing overseas mostly in the US and UK, followed by other European countries, Africa and South-East Asia. It is the first wave of globalisation. Of course, there are success stories and also failures. In the long-term, Indian investments will be very successful, if it is invested into the right sectors. The world needs India as a market and a force of innovation. This innovation is not limited to IT outsourcing, it also goes in bio-tech, fin-tech and also into traditional manufacturing. Also, Indian companies should be very careful, do the right diligence and should not overpay, while investing overseas. In the past, many companies have had an issue integrating and making things work. There is lot of room to grow especially in continental Europe where mid-size companies are for sale. There is an emerging trend where more and more European companies are looking for investments from India. It goes both sides and is beneficial for the market.

What is your take on Asian Infrastructure Investment Bank (AIIB)?
Clearly, India is also part of the bank. The Americans have some concerns around it but eventually it will change. Chinese-led AIIB is doing a good work. Maybe, it looks more political from outside, due to the Chinese interest. However, I do not think it is the case. If you look at AIIB’s board members, you will see representative of various countries. Interestingly, UK was the first country to sign-up and now, Germany is on board. AIIB is not an alternative but an addition to World Bank.

Infrastructure is a key for economic development. It is the backbone of growth. Through this initiative ‘One Belt, One Road’ by the Chinese and other Asian countries, it is attempting to save globalisation and boost growth. Since 2008, we have seen demise of globalisation. Until 2008, everything was moving up including trade, investments and globalisation. However since 2008, there has been a fall in trade, decrease in investments and decline in migration. Through AIIB, it could be said that it is revival of globalisation.

How much investment would the bank need to be fully-functional?
I do not have the figures as the bank itself does not know it. However, Chinese have put some base financing. Hopefully, the United States will come on board as well.

I believe that AIIB should look at investing beyond Asian markets. IMF, World Bank and other banks will have to come forward to support African countries especially failing states that are out of the radar. For instance, Sudan, Central Africa and so on, are under war but very little is reported. By investing in infrastructure, one can stop war and reduce poverty in these regions. India understands it. Thus, it engages more in Africa by building hospitals, highways and other infrastructure, as it will help revive Africa.

What should India do more to invest heavily in African region?
There are many entrepreneurs in African region who are of Indian origin and this a great advantage India has over other developing countries. India needs to have an orchestrated state investment policy where they can connect with people of Indian origin. This helps to connect and arrange a reverse brain drain. India needs more trade missions and brings investments to both sides.

There are many central banks that are autonomous compared to their Indian counterparts. Do you think India should follow that path?
We cannot compare one country by another. What is good for one country might not be good for another country. It also depends on the stage of development. Europe and the United States need independent central banks. While emerging economies like India and China, require more guided approach, considering they are in their early stage of economic development. This means central banks will have little more government influences but it should not be totally controlled. There were talks around the tenure of the former governor Raghuram Rajan. He had to leave because his contract ended. However, it was over played by the Indian media. Ministers and governors come and go, it is a continuous process.

Going forward, I would like to see central banks around the world to work in cooperation with each other. There is a need for co-ordination and governance for central banks around the world. It should not be limited to formal dialogue but should be extended to informal dialogue as well.

How can India’s very own Masala bonds be used to benefit other Asian markets?
Masala bonds are a great way of fund raising. India should not keep it for them but share it with others to chug on it as well. This would allow the investment to multiply. Masala bonds are one of my pet projects. I like the word to start with and Masala bonds need to globalise. We need to use these bonds all over the world. At least in financial capitals around the world, the Masala bonds should be on sale.

There is a lot of drama in Asian Market. Comment.
Yes, it is drama. Economy is always drama but I believe it’s always a drama with a happy ending. There are always road blocks across countries in the Asian continent. There are countries like Myanmar that are very poor, and then there are countries like Singapore. Then, you got countries like India, China and Japan. Country like Japan has different set of problems – aging society with no babies. Chinese’s population might also take the same route due to their one child policy but with India, large portion of its population is young and it is looking for work. Keeping all these factors in mind, I would say each country has different type of drama.

 


Horasis is a global visions community committed to enact visions for a sustainable future. (http://www.horasis.org)

For more information, please contact:
 
Communications and Public Affairs
Horasis. The Global Visions Community
phone: +41 79 305 3110
fax: +41 44 214 6502
e-mail: visions@horasis.org
 
 
Copyright © 2005 Horasis Web by Toronto Web Design