A blog about economics focused on (international) macroeconomic events and policies, business cycles analysis and some guesses about what's going on in the world. Feel free to join the discussion and contribute with your own guesses.
Capitalizing on Intangible Assets in Asia – Identification, Measurement and Recognition of Intangible Intellectual Capital Assets in Bangladesh Today, Market Economy is beset with critical problems. The problems are creating new opportunities for the emerging economies to prosper. In turn, to meet the new challenges, the emerging market economies are transforming into network economies. In the industrial economy ‘success was self-limiting; it obeyed the law of decreasing returns. In the network economy’, ‘success is self-reinforcing; it obeys the law of increasing returns’.In a network economy, everything relates to everything. … ‘more plentiful things become, the more valuable they become’ … As more of the economy migrates to intangibles, more of the economy will require standards. Eventually technical standards will become as important as laws. As Philip Siegel and Carl Borgia of Florida Atlantic University observe, in today’s economy value is being created by intangible (intellectual) capital. Intangible assets include patents, copyrights, trademarks, trade names, franchise licenses, government licenses, goodwill, and other items that lack physical substance but provide long-term benefits to the company. ‘Don’t solve problems, seek opportunities’ - Peter DruckerThe origin of economic wealth begins in opportunities. Every opportunity seized launches at least two new opportunities. Don't solve problems, pursue opportunities. There is more to be gained by producing more opportunities than by optimizing existing ones. Productivity, however, is exactly the wrong thing to care about in the new economy. Experts are of the opinion that International Accounting Standards offer a slightly different approach than US GAAP. They conform to principles more than specific rules. Their fundamental criterion is that the statements fairly reflect the underlying economic reality of the transaction, event or circumstance. For example, SFAS 142 deals with the initial recognition and measurement of acquired intangibles, except those acquired in a business combination. SFAS 142 has taken a significant step away from accounting standards in that it changes the approach to goodwill thereby changing the approach to goodwill and other intangible assets subsequent to their initial recognition. Of course, there are wide varieties of capitalization issues inherent to the system, but the perspectives are lacking across the cultures. We wonder, together with you, whether we can promote actions in exploring, how to create values and non-financial gains in order to boost the Asian economy.Despite repeated natural disasters and external shocks, economic growth duringthe last decade has averaged an impressive annual growth rate of 6 percent inBangladesh.Globalization has offered both opportunities and challenges to the national progress of adeveloping country like ours. Efforts to achieve Bangladesh's macroeconomic goalshave been problematic mostly due to various factors. Lindert and Williamson (2001,p.1) write: “globalization probably mitigated the steep rise in income gaps betweennations. The nations that gained most from globalization are those poor ones thatchanged their policies to exploit it.”There are many Challenges common in developing countries. Bangladesh cannot offer at least elementary level literate manpower and sufficient infrastructure. … Now, Capitalizing on Intangibles … how to begin with? … With what? How do we go for identifying the intangibles? … What are the policy implications? How do we mainstream it? How can we handle the accounting matters? Who to work with? … These are the points to be sorted out and discussed.
“If we are to eliminate poverty, there must be sustainable economic growth. A 1% increase in per capita GDP generates a 1% rise in the income of the poor. 4 Growth increases poor people’s incomes because it generates economic opportunities and employment”.Source:
The Economist (Nov 10th 2012, HONG KONG) reports about Asia’s great moderation. It says, only three countries have recorded a steadier growth rate (as measured by its standard deviation) over that period. Two of them are also Asian: Indonesia and Bangladesh. Growth in developing Asia is now steadier, as well as faster, than growth in the “mature” economies of the G7 (see chart 1). It was more stable in 2002-11 than over any other ten-year span since 1988-97.Emerging economies are generally known as the largest, wealthiest, and fastest growing of the developing countries. These are typically economies in transition, moving from a closed to an open economy, undergoing far reaching economic reforms through integration into the world economy. Their growth factors are the use of new energy, telecommunications, and information technologies as well as rapid industrialization. Syed Manzur Elahi, eminent businessmen of Bangladesh commented inThe Japan Times "What frustrates me is that we could have touched 8, 8.5 percent(growth) easily" had there been cleaner politics in the land.” [Published on February 15, 2008]. The economy of Bangladesh is a developing market-based economy. According to the International Monetary Fund, Bangladesh ranked as the 48th largest economy in the world in 2009,with a gross domestic product of US$256 billion.Bangladesh is now branded as one of the Next Eleven (N-11) economies identified by Goldman Sachs. This includes Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey and Vietnam. According to a World Bank report for 2000 titled "Estimating the Effects of Corruption Implications for Bangladesh," if the country had reduced corruption "to levels existing in transition economies like Poland, growth in 1990-97 could have risen by more than half. Real growth of 8.5 percent would put Bangladesh on the same economic trajectory as India, with which it shares a long border, and well on the way to China's 10.5 percent.