ADB Trims Indonesia’s 2012 Economic Growth Forecast

The Asian Development Bank cut its economic growth forecast for Indonesia this year to reflect slowing export growth. Manila-based ADB, whose mission is to promote growth and alleviate poverty in the region, sliced Indonesia’s economic growth outlook by one-tenth of a percentage point to 6.4 percent. It made the original forecast, 6.5 percent, in November 2011.

Bo Xilai case shows limits of ‘guanxi’: too-close connections with locals can be risky for foreigners doing business in China.

Chinese premier demands stronger anti-corruption efforts amid scandal over Politburo member

Chinese Premier Wen Jiabao is demanding tougher anti-corruption efforts amid a huge political scandal over a now-suspended Politburo member whose wife has been named a suspect in the murder of a British businessman.

Blueseed’s visa-free, ship-based startup community (artist’s rendering) would let foreign entrepreneurs quickly ferry to nearby Silicon Valley.

Visa free offshore nation: business incubator approach

Entrepreneurs plan to anchor a floating tech startup incubator in international waters outside Silicon Valley next year. The venture, Blueseed, at, would allow foreign techies to legally work on the vessel, near Silicon Valley, without work visas that can be hard — or impossible — to obtain.

India vs China: Inclusive vs Extractive

Extractive political institutions (autocracy and empire) lead to extractive economies benefiting elites, and cannot create general prosperity save for limited periods. Inclusive political institutions (democracy, rule of law and rights for all) create inclusive economic regimes with opportunity for all, leading ultimately to prosperity. Inclusive institutions lead to creative destruction, which is essential for sustained prosperity but threatens extractive regimes, and is typically sabotaged by them. Only politically-free regimes will ultimately allow creative destruction. This is why some nations fail and others succeed.

India’s trade deficit widens on crude import bill

India’s trade deficit has surged to a whopping $185 billion for the financial year ended March 31, 2012 due to skyrocketing crude oil prices in the international market and this is expected to keep the rupee under pressure.