REGIONAL ANALYSIS OF ASIA

ASIA

ASIA

48.5
COUNTRIES

ASIA

49

COUNTRIES

ASIA

60%

POPULATION

28%
GDP CONTRIBUTION

Continents

GDP (US$)

Percentage GDP

Europe

24.4 trillion

34%

North America

20.3 trillion

28%

Asia

18.5 trillion

26%

South America

4.2 trillion

6%

Africa

2.6 trillion

4%

Oceania

1.8 trillion

2%

Antarctica

N/A

ASIA

ASIA

10

OUT OF
Billionaire cities are in Asia

ASIA

10

OUT OF
Largest cities are in Asia

DIVISION of the countries

BOTTOM TIER

MIDDLE TIER

TOP TIER

HDI < 0.65

HDI 0.65 0.75

HDI > 0.75

Source: HDI 2013 as per UNDP

Afghanistan]
Yemen
Myanmar
Pakistan
Nepal
Bangladesh
Lao PDR
Bhutan
Cambodia
India
Tajikistan
Timor
Kyrgyzstan
Vietnam
Iraq

0.468
0.500
0.524
0.537
0.540
0.558
0.569
0.584
0.584
0.586
0.607
0.620
0.628
0.638
0.642

Syria
Philippines
Uzbekistan
Indonesia
Palestine
Maldives
Mongolia
Turkmenistan
China
Thailand
Armenia
Georgia
Jordan
Azerbaijan
Iran
Sri Lanka

0.658
0.660
0.661
0.684
0.686
0.698
0.698
0.698
0.719
0.722
0.730
0.744
0.745
0.747
0.749
0.750

Kazakhstan
Turkey
Lebanon
Malaysia
Russia
Oman
Kuwait
Bahrain
UAE
Saudi Arabia
Republic of Cyprus
Qatar
Brunei Darussalam
Israel
Japan
South Korea

0.754
0.759
0.765
0.773
0.778
0.783
0.814
0.815
0.827
0.836
0.845
0.851
0.852
0.888
0.890
0.891

ASIA

OLITICAL

ESTLE

FACTORS considered
Types of government

Republic

Constitutional
Monarchy

Absolute
Monarchy

Theocracy

FACTORS considered
Corruption
Corruption
perception
index

Transparency
international

Lower the
value, higher
the corruption

FACTORS considered
Freedom of press

Freedom of the
press report
2014

Freedom House

Not free (0 to 30);

Partly Free (31 to
60); Free (61 to
100)

BOTTOM TIER
Type of Government:
Laos and Vietnam: Republic, but single party dominated
Bhutan and Cambodia: Constitutional monarchy
11 other countries follow either Presidential or
Parliamentary Republic

Global Average CPI: 43

BOTTOM TIER
Corruption
Average CPI: 27
136th position out of 176
Worst position: Afghanistan (CPI of 8)
Bangladeshs CPI: 27

Global Average: 48 (Partly Free)

BOTTOM TIER
Freedom of the Press
There is no country that is FREE
Average: 65
Nepal, Bangladesh, Bhutan, India and Timor are PARTLY FREE
10 others are NOT FREE
Worst position: Laos and Vietnam (scores: 84)

MIDDLE TIER
Type of Government:
Presidential Republic and Theocracy in Iran
Military Regime since May, 2014 in Thailand
Communist Party as government in China
Constitutional monarchy in Jordan
12 others: Republic (Presidential or Parliamentary)

Global Average CPI: 43

MIDDLE TIER
Corruption
Average CPI: 32
114th position out of 176
Worst position: Syria and Uzbekistan (CPI of 17)

Global Average: 48 (Partly Free)

MIDDLE TIER
Freedom of the Press
There is no country that is FREE
Average: 70
Philippines, Indonesia, Maldives, Mongolia and Georgia are PARTLY FREE
11 others are NOT FREE
Worst performance: Uzbekistan, Turkmenistan, Syria and Iran

TOP TIER
Type of Government:
Oman, Saudi Arabia, Qatar and Brunei have absolute monarchy
Malaysia, Kuwait, Bahrain, UAE, Japan have constitutional monarchy
No Single Party Republic

Global Average CPI: 43

TOP TIER
Corruption
Average CPI: 53
49th position out of 176
Highest: Singapore (CPI is 83) is 5th in the world

Global Average: 48 (Partly Free)

TOP TIER
Freedom of the Press
Only one FREE country is Japan
Average: 61
South Korea, Israel, Kuwait and Lebanon are PARTLY FREE
11 others are NOT FREE
Worst performance: Bahrain and Kazakhstan

ASIA

CONOMICAL

STLE

FACTORS considered
1. GDP Growth Rate
Source: World Bank 2013
2. Per Capita GDP
Source: World Bank 2013

3. Inflation Rate
Source: Trading Economics 2014

4. Unemployment Rate
Source: World Bank 2012

BOTTOM TIER
GDP Growth Rate:
Average GDP Growth rate 2011 to 2013 is 5.9%
Constant GDP over these years: Bangladesh (6.5%), Laos (8.1%), Cambodia (7.3%)
Decreasing growth rates: Iraq, Timor
-15.1% in Yemen in 2011 due to reduction in oil production
-0.1% in Kyrgyzstan in 2012 due to reduction in gold production

Global Average: $10,513

BOTTOM TIER
Per Capita GDP
Average Per Capita GDP: $1,705
Lowest Nepal, Afghanistan, Bangladesh
But among these 3 Bangladesh is the best off
That of Nepal and Afghanistan decreased in 2013

Global Average: 3.91%

BOTTOM TIER
Inflation Rate:
Average inflation rate: 5.88%
Lowest in Timor (0%)
Highest in Nepal and Bhutan (9.45%)
Bangladesh: 6.91%

Global Average: 8.4%

BOTTOM TIER
Unemployment Rate:
Average unemployment rate: 6.13%
Double digits: Yemen, Tajikistan, Iraq
Reason for Yemen: Undergoing consequences of revolution in 2011
Bangladesh: 4.5% (very good)

MIDDLE TIER
GDP Growth Rate:
Average GDP Growth rate 2011 to 2013 is 6.3% (highest among all tiers)
Constant GDP over these years: Uzbekistan (8.2%), Indonesia (6.2%), Jordan (7.3%)
Most number of double digit growths: Mongolia, Turkmenistan; but their rates
declining
Reason for Mongolia: their Coal export is declining

Global Average: $10,513

MIDDLE TIER
Per Capita GDP
Average Per Capita GDP: $4,675
Increased from Bottom Tier
None of them are below 3 digits
Lowest is in Uzbekistan: $1,878

Global Average: 3.91%

MIDDLE TIER
Inflation Rate:
Average inflation rate: 4.74%
Lowest in Armenia (0.8%)
Double digit inflations: Iran, Syria, Mongolia
Reason for Iran: Multi tier exchange rate system

Global Average: 8.4%

MIDDLE TIER
Unemployment Rate:
Average unemployment rate: 9.99% (highest amongst the tiers)
Highest in Palestine (23%) and Armenia (18.5%)
Reason for Armenia: Very high wealth gap

TOP TIER
GDP Growth Rate:
Average GDP Growth rate 2011 to 2013 is 3.9% (lowest among all tiers)
Biggest reductions: Qatar and Saudi Arabia (oil dependency)
Example of increasing GDP growth rate: Bahrain (due to a very strong
financial industry)

Global Average: $10,513

TOP TIER
Per Capita GDP
Average Per Capita GDP: $31,997
Highest: Qatar $93,352 (number 1 in the world, expected to double by
2025, due to low cost of gas production and the FIFA world cup)
Second highest: Singapore $55,182 (number 3 in the world)

Global Average: 3.91%

TOP TIER
Inflation Rate:
Average inflation rate: 2.96%
Lowest in Brunei (-0.3%)
Highest in Russia 9.54% (most recent reason:
ban on Western food import)

Global Average: 8.4%

TOP TIER
Unemployment Rate:
Average unemployment rate: 5.4% (lowest among tiers)
No country with double digit unemployment rate
Lowest unemployment in Qatar (0.6%)
Reason for Qatar: Runs on expatriates (94% of working population
expatriates as of 2012)

ASIA

OCIAL

PE TLE

INDICATORS CONSIDERED
Population under poverty Line
Rural Population with Water Access
Urban Population with Water Access
Urban Population with Sanitation Access
Ratio of Female to Male Primary Enrollment
Ratio of Female to Male Secondary Enrollment
Ratio of Female to Male Tertiary Enrollment
Life Expectancy at Birth in years

BOTTOM TIER
Average population under the poverty line: 28%
Bhutan, Pakistan, & Vietnam: 12%, 12.4% & 17.2%
Timor-Leste, Tajikistan, & Afghanistan: 49.9%, 47.2%, % 35.8%

BOTTOM TIER
Average rural population with water access: 75.6%
Bhutan, Vietnam, & India: 97%, 94%, and 91%
Yemen, Afghanistan, Timor-Leste: 47%, 56%, 61%
Bangladesh: 84%

BOTTOM TIER
Average Water Access to Urban Population: 91.5%
Bhutan, Vietnam and Kyrgyzstan: near 100%
Yemen, Bangladesh, Afghanistan: 72%, 85%, 89%
All countries are faring well

BOTTOM TIER
Average Urban Access to Sanitation: 75%
Afghanistan, Bangladesh, Nepal: 46%, 55%, 51%
Tajikistan, Vietnam, Yemen: 93%, 93%, 92%

BOTTOM TIER
Average ratio of female to male in Primary Enrollment: 95%
All countries are above or near Tier Average
Except Afghanistan and Yemen with 71% and 82%

BOTTOM TIER
Average ratio of female to male in secondary enrollment: 90%
Pakistan, Laos, Yemen, Afghanistan are far behind with 73%, 87%,
65%, and 55% respectively.
Bangladesh has the highest enrollment at 113% in the first tier

BOTTOM TIER
Average ratio Female to Male in tertiary enrollment: 76.9%
Exceptional performance: Kyrgyzstan, Myanmar, and Vietnam with
124%, 134%, and 101% respectively.
Afghanistan and Yemen are still falling behind

BOTTOM TIER
Average Life Expectancy in the Tier is 67 years
Afghanistan and Yemen behind with 61 and 63 years
Bangladesh above average: 70 years

MIDDLE TIER
Average population under the poverty line: 17.7%
Syria and Armenia having the highest with 35.2% and 32.4%

MIDDLE TIER
Average water access to rural population: 84.6%
Turkmenistan, Mongolia, and Azerbaijan with 54%, 61%, and 71% are
falling behind

MIDDLE TIER
Average Urban population with water access: 95.4%
Except for Turkmenistan with 89% all the countries are near the
average

MIDDLE TIER
Average Sanitation Access for urban population: 87.8%
Turkmenistan and Uzbekistan at 100%
Mongolia, Indonesia, and China falling behind with 65%, 71%, and 74%

MIDDLE TIER
Average ratio of female to male in Primary Enrollment: 98%
Lacking of a few country data
All countries lie near the average

MIDDLE TIER
Average for secondary enrollment: 101%
Armenia at a staggering 120%

MIDDLE TIER
Tertiary enrollment ratio of female to male in average: 116%
Sri Lanka in the lead with 165% and Armenia at 157%
Uzbekistan falling behind with 64%

MIDDLE TIER
Average Life Expectancy: 72 years
Turkmenistan lacking behind with 65 years
All other countries are around the average.

TOP TIER
Most countries can be said to have no population below the poverty
line
Average at 0.93%
Lebanon with the highest at 28.6%

TOP TIER
Rural Population with water access in average: 96.8%
While Kazakhstan has the lowest at 86%
Bahrain, Israel, Japan, Lebanon, Qatar, Cyprus, and UAE stands at
100%

TOP TIER
Urban Population with Water Access in Average: 99%
All countries are near the 100% in this indicator

TOP TIER
Urban Population with access to sanitation in average: 96.4%
Russian and S. Korea are lacking behind with 74% and 87%

TOP TIER
Ratio of female to male in primary enrollment is 99%
Lebanon only at 91%

TOP TIER
Average in secondary enrollment: 98.6% with Turkey lacking behind
with 94%

TOP TIER
Tertiary enrollment in average: 171% with Qatar taking the lead at
676%
Turkey lacking behind with 85%

TOP TIER
Average life expectancy: 76 years
All countries near the average

TIER COMPARISON
Maximum Poverty Population in Asia is 50%
In Timor-Leste
Due to the country obtaining freedom only recently in 2002 from
Indonesia
Lowest Poverty Population in Asia is 1.7% in Malaysia

TIER COMPARISON
Yemen has the lowest in terms of Rural Population with Water Access
at 47% in Asia
Due to the War the infrastructure to Yemen was horribly hit.

TIER COMPARISON
In terms of Urban Population with Water Access, Asia as a whole
enjoys an average of 90% accessibility.
Only Yemen and Laos are falling behind.
While Yemens fall in infrastructure is caused by the war.

TIER COMPARISON
In terms of Urban Sanitation, Tier 1 and Tier 2 are performing very
poorly with only 81%
Only Turkmenistan and Uzbekistan have 100% in the two Tiers.

TIER COMPARISON
Gender Equality in terms of Primary Enrollment is quite high in Asia as
a whole
Only Afghanistan lacking behind with 71%
Bangladesh has the second highest female to male ratio in secondary
enrollment in Asia. Armenia is in the lead
Tier 1 countries are only ones lacking behind in gender equality in
tertiary education.

TIER COMPARISON
Life Expectancy has an average of 72 years.
None of the Tiers experience a life expectancy over 80 years in
average
Only a few Tier 3 countries experience Life Expectancy over 80.

ASIA

PES

ECHNOLOGICAL

LE

BOTTOM TIER
Country
Afghanistan
Bangladesh
Bhutan
Cambodia
India
Iraq
Kyrgyzstan
Lao PDR
Myanmar
Nepal
Pakistan
Tajikistan

HDI
0.468
0.558
0.584
0.584
0.586
0.642
0.628
0.569
0.524
0.54
0.537
0.607

Access to Electricity (% Internet Users

of the population)
(per 100 people)
30.0%
5.9
59%
6.5
29.9
34%
6
75%
15.1
98%
9.2
23.4
78%
12.5
48%
1.2
76%
13.3
68%
10.9
16

Roads Paved
36% (2010)
34.2% (2010)
53.8% (2010)
48%
-

72.6% (2010)
-

ACCESS TO ELECTRICITY
Highest 3 Access to Electricity

Lowest 3 Access to Electricity

Iraq

98% (2011)

Afghanistan

30.0%

Vietnam

96%

Lao PDR

78%

Cambodia
Timor

34%
38%

INTERNET USERS

Highest Internet User

Vietnam

43.9

Bhutan

29.9

Kyrgyzstan

23.4

MIDDLE TIER
Armenia
Azerbaijan
China
Georgia
Indonesia
Iran
Jordan
Maldives
Mongolia
Palestine
Philippines
Sri Lanka
Syria
Thailand

0.73
0.747
0.719
0.744
0.684
0.749
0.745
0.698
0.698
0.686
0.66
0.75
0.658
0.722

99.00%
-

72.00%
98.00%
99.00%
-

88.00%
70.00%
85.00%
92.00%
99.00%

46.3
58.7
45.8
43.1
15.8
31.4
44.2
44.1
17.7
46.6
37
21.9
26.2
28.9

55.6
63.7
-

57
74.3
100
100
64.9 (2010)
-

ACCESS TO ELECTRICITY
Highest 3 Access to Electricity

Lowest 3 Access to Electricity

China

99%

Phillipinnes

70%

Jordan

99%

Thailand

99%

Indonesia
Sri Lanka

72%
85%

INTERNET USERS

Highest Internet User

Azerbaijan

58.7

Palestine

46.6

Armenia

46.3

TOP TIER
Bahrain
Brunei Darussalam
Israel
Japan
Kazakhstan
Kuwait
Lebanon
Malaysia
Oman
Qatar
Republic of Cyprus
Russia
Saudi Arabia
Singapore

0.815
0.852
0.888
0.89
0.754
0.814
0.765
0.773
0.783
0.851
0.845
0.778
0.836
0.901

99.00%
99.00%
99.00%
100.00%
99.00%
99.00%
98.00%
99.00%
99.00%
100.00%

90
64.5
70.8
86.3
54
75.5
70.5
67
66.5
85.3
65.5
61.4
60.5
73

83.7
82.3
100
88.7
80.9
49.3
65.8
100

ACCESS TO ELECTRICITY
Highest 3 Access to Electricity
Singapore

100%

UAE

100%

Kuwait

100%

INTERNET USERS

Highest Internet User

Bahrain

90

Japan

86.3

Qatar

85.3

ASIA

EGAL

PEST E

Employment overview
Afghanistan

No l i mi t

0.0

About 8 hours - 40 hours

6.0 a week o

Bangladesh

No l i mi t

119.6

8 or 9 hours - Accordi6.0
ng to Secti on

Brunei Darussalam

No l i mi t

0.0

8 hours (Sect. 65 Empl

6.0oyment Orde

24

43.0

8 hours

6.0

China

No l i mi t

242.4

8 hours

6.0

Hong Kong, China

No l i mi t

782.8

8 hours

6.0

India

No l i mi t

52.4

9 hours

6.0

36

232.0

8 hours for 5 workda6.0

ys /week or 7 h

Iran, Islamic Rep.

No l i mi t

400.1

8 hours

Iraq

No l i mi t

92.3

8 hours - Art. 55, La bor

6.0 Code

Cambodia

Indonesia

6.0

Asian TAX
Low tax revenues: lowest tax burdens in the world
Tax composition: higher share of indirect taxes
- Small tax base
- Inefficiency of tax collection
- High tax evasion
- Large informal sector
Weak personal income tax/property tax
Limited social security contributions
Inefficient tax system and administration

Asian TAX systems

East Asia & pacific

Economy
Singapore
Hong Kong SAR, China
Malaysia
Taiwan, China
Thailand
Tonga
Brunei Darussalam
Samoa
Fiji
Vanuatu
Mongolia
China
Solomon Islands
Vietnam
Palau
Philippines
Papua New Guinea
Marshall Islands
Indonesia
Kiribati
Cambodia
Micronesia, Fed. Sts.
Lao PDR
Timor-Leste
Myanmar

Ease of Doing Business Rank

1
2
6
16
18
57
59
61
62
74
76
96
97
99
100
108
113
114
120
122
137
156
159
172
182

Filtered Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Starting a Business
1
2
3
4
11
7
17
6
18
15
5
21
9
14
16
22
12
8
23
20
24
13
10
19
25

Dealing with Construction Permits

2
1
8
3
4
7
10
13
14
11
19
25
15
5
9
18
24
6
16
21
23
12
17
20
22

Getting Electricity
2
1
5
3
4
8
7
10
14
19
25
16
20
23
13
9
6
12
17
24
21
15
22
11
18

Registering Property
3
14
6
5
4
20
17
7
10
16
2
8
22
9
1
19
13
23
15
11
18
23
12
23
21

Getting Credit
2
2
1
11
11
6
6
20
6
6
6
11
14
4
14
14
14
14
14
23
4
20
22
23
25

Protecting Investors
1
2
3
6
4
16
16
6
8
13
5
15
8
20
22
19
12
20
8
8
13
22
25
16
24

Paying Taxes
2
1
7
10
12
8
4
15
16
5
13
22
5
25
14
23
20
18
24
3
11
17
21
9
19

Middle east & north Africa

Economy
Ease of Doing Business Rank Filtered Rank Starting a Business Dealing with Construction Permits Getting Electricity Registering Property Getting Credit
United Arab Emirates
23
1
1
2
1
1
2
Saudi Arabia
26
2
6
3
2
2
1
Bahrain
46
3
7
1
7
4
9
Oman
47
4
5
6
9
3
2
Qatar
48
5
9
5
3
5
9
Tunisia
51
6
4
10
8
7
6
Morocco
87
7
2
7
14
17
6
Malta
103
8
17
16
16
8
16
Kuwait
104
9
16
12
10
10
9
Lebanon
111
10
12
18
6
14
6
Jordan
119
11
11
9
5
11
14
Egypt, Arab Rep.
128
12
3
14
15
12
2
Yemen, Rep.
133
13
10
8
17
6
14
West Bank and Gaza
138
14
15
11
13
15
13
Iraq
151
15
19
4
4
13
16
Iran, Islamic Rep.
152
16
8
17
20
18
2
Algeria
153
17
18
13
19
19
9
Djibouti
160
18
13
15
18
16
16
Syrian Arab Republic
165
19
14
19
12
9
16
Libya
187
20
20
19
11
20
20

South Asia
Ease of Doing
Filtered
Economy
Business
Rank
Rank
Sri Lanka
85
1
Maldives
95
2
Nepal
105
3
Pakistan
110
4
Bangladesh
130
5
India
134
6
Bhutan
141
7
Afghanistan
164
8

Starting a
Business

Dealing with
Construction Permits

Getting
Electricity

Registering
Property

Getting
Credit

Protecting
Investors

2
3
6
7
4
8
5
1

4
1
3
5
2
8
6
7

1
6
3
7
8
5
1
4

5
6
1
4
8
3
2
7

3
6
2
3
5
1
6
8

4
5
5
2
1
2
7
8

Paying T
Taxes
8
4
5
7
2
6
3
1

Paying taxes

Ran Payments (number per Time (hours per Profit tax

k
year)
year)
(%)
East Asia & Pacific
..
25
208
16.4
Europe & Central Asia ..
26
246
9
Latin America &
Caribbean
..
30
369
20.5
Middle East & North
Africa
..
18
220
12.4
OECD high income
..
12
175
16.1
South Asia
..
33
328
16.8
Sub-Saharan Africa
..
38
314
18.4
economyName

Labor tax and

contributions (%)
10.7
22.6

Other taxes Total tax rate (%

(%)
profit)
7.4
34.5
7
38.7

14.7

12.1

47.3

16.3
23.1
9
13.7

3.6
2
14.8
21.3

32.3
41.3
40.6
53.3

ASIA

PESTL

NVIRONMENTAL

BOTTOM TIER
TIER 1 (HDI < 0.65)
Countries

Access to Forest
Electricity Area
(sq.km)

Agro
Land

Average
Rainfall
(mm/yr)

Afghanistan
Yemen
Myanmar
Pakistan
Nepal
Bangladesh
Lao PDR
Bhutan
Cambodia
India
Tajikistan
Timor
Kyrgyzstan
Vietnam
Iraq

30.0 %
39.9 %
48.8 %
68.6 %
76.3 %
59.6 %
78.0 %

58. 1%
44.4 %
19.2 %
34.4 %
29.7 %
70.1 %
10.3 %
13.5 %
32.0 %
60.5 %
34.7 %
24.2 %
55.3 %
35.0 %
18.9 %

327
167
2681
255
1500
2,666
1,834
2,200
1,904
1,083
691
1,500
533
1821
216

34.0 %
75.3 %
38.0 %
96.1 %
98.0 %

13,500
5,490
314,634
16,440
36,360
14,394
156,728
32,598
99,666
685,790
4,100
7,308
9,707
139,410
8,250

MIDDLE TIER
Countries

Access to Forest
Electricity Area
(sq.km)

Syria
Philippines
Uzbekistan
Indonesia
Palestine
Maldives
Mongolia
Turkmenistan
China
Thailand
Armenia
Georgia
Jordan
Azerbaijan
Iran
Sri Lanka

92.8 %
70.2 %
72.9 %

88.2 %
99.8 %
99.0 %

99.4 %
96.1 %
98.3 %
85.4 %

4970
77,198
32,716
937,470
91.7
9.0
108,160
41,270
2,096,239
189,868
2578
27,397
975
9,360
110,750
18,454

Agro
Land
(% of
total)
75.5
40.6
62.7
30.1
43.3
23.3
73.1
69.5
55.7
41.2
60.1
35.5
11.3
57.7
30.1
41.8

Average
Rainfall
(mm/yr)
252
2348
206
2702
402
1972
241
161
645
1622
562
1026
111
447
228
1,712

TOP TIER
Countries

Kazakhstan
Turkey
Lebanon
Malaysia
Russia
Oman
Kuwait
Bahrain
UAE
Saudi Arabia
Republic of Cyprus
Qatar
Brunei Darussalam
Israel
Japan
South Korea
Singapore

Access to Forest
Electricity Area (sq.km)

99.9
99.5
98.0
100.0
99.4
100.0
99.0
99.6
99.7
99.7

100.0

33,034
114,528
1369.8
203,692
8,091,500
20
63.9
5.4
3,183
9,770
1732
0.0
3782
1538
249,878
62,154
23

Agro
Land (% of
total)

Average
Rainfall (mm/yr)

77.5
49.7
62.4
24.0
13.1
5.7
8.5
11
4.8
80.6
12.8
5.7
2.2
24.1
12.5
18.1
1.0

250
593
661
2,875
460
125
121
83
78
59
498
74
2,722
435
1668
1054
2,497

GENERIC EFFECTS OF ENVIRONMENTAL CHANGE

Agriculture: Changes in seasonal rainfall patterns, rising temperatures and increasing water stress
will pose a risk of declining yields and farm revenues
Fisheries: A general decline in fishery production is expected.
Human health: Increased rains, frequent floods and sea level rise will lead to more water-borne
infectious diseases, diarrhea and malnutrition.
Biodiversity and ecosystems: Changes have been observed that could produce greater risks in
terms of water supply, food security, and impacts from natural disasters.
Heavily populated mega-deltas: These areas are at greater risk from flooding every year due to sea
level rise and flooding from rivers.

11
10

01

12

02
03
09
04
08
07

05
06

BUSINESS RISKS OF ENVIRONMENTAL CHANGE

RISKS TO CORE BUSINESS FUNCTIONS:
damage to physical structures and assets such as production facilities or buildings.
increase cost of operations
impact quality of product or service
RISKS TO THE VALUE CHAIN:
Availability of production inputs
Changing consumer demands
Availability and quality of natural resources such as water, utilities, logistics networks,
health and safety of human resource

RISKS TO LOCAL CIMMUNITIES

Affect the livelihood of local communities
Directly impacts corporate community investment programs
RISKS FROM ECONOMIC AND SOCIAL CHANGES
Risks of humanitarian crisis, conflicts and instability
Refugees might migrate, increased competition for resources, rise in ethnic tensions

TYPES OF BUSINESSES LIKELY TO BE AFFECTED BY CLIMATE CHANGES

BUSINESSES DEPENDENT ON WEATHER
SENSITIVE RESOURCES

Agriculture, forestry, agro-forestry, fishing,

aquaculture, and tourism sectors in South and
Southeast Asia

BUSINESSES THAT MAKE LONG TERM INVESTMENTS AND

OPERATE LONG LIFE ASSETS

These include utilities such as energy or

transport, industrial facilities, and ports with a long
operational life

BUSINESSES WITH EXTENDED SUPPLY CHAINS

Businesses that rely heavily on logistics and supply

networks. Lean manufacturing based on JIT delivery
and single source supply chain management are risk
prone

BUSINESSES THAT ARE GLOBAL IN NATURE

Global supply chains are easily disrupted by problems

in any one link in the chain. Off-shore production likely
to suffer

MICRO, SMALL AND MEDIUM ENTERPRISES

The impact of a natural hazard can put these types of

enterprises out of business

RISKS TO BUSINESSES IN SPECIFIC AREAS OF OPERATION

LOGISTICS

PHYSICAL
ASSETS

Weather changes can disrupt logistics, including

transport arrangements, supply chains, utilities,
inventories etc.

Physical assets, factory premises at risk from

environmental anomalies. Buildings may be
corroded, floods might short electric lines

Retail industry: disruptions in the

supply chain and distribution network
Logistics companies: failure to meet
contracts for delivery; loss of cargo

Tannery Clusters in Dhaka:

Neighborhoods prone to acid rain.
Real Estate and Construction:
Design criteria may be subject to
change; cannot rely on historical data

EFFICIENCY OF OPERATIONS
Some industrial processes and business
activities are temperature or climate sensitive and some
require constant cooling. Increased cost due to investment
in new technology or damage control

Food industry: increased need for cooling for food

preparation and storage
ICT: increased need for cooling in data centers
Manufacturing: increased need for cooling in process
environment.

COMPETITION OVER
RESOURCES
Climate change will act as another stressor in regions
already experiencing water stress; put pressure on water
resources.
Competition may lead to conflict, disapproval from local
communities especially if water is diverted away from local
houses and farmers.

Electric utilities: greater uncertainty over water supply

for cooling power plants
Food and beverage: access to key resources, water, and
other natural resources

REPUTATIONAL RISKS
This is a particular risk factor in countries vulnerable to
climate change, with large parts of the population
depending on
climate-sensitive resources.

Conflicts over protection of assets. For example, if

businesses forcefully acquire resources. Example: Tata
Nano-Singur Controversy

FINANCIAL DRIVERS
Operational costs and business continuity costs can
increase. Institutional investors and banks are
increasingly concerned about climate change

Electric utilities, properties, mining and

extractive industries, agriculture, and forestry

INCREASED INSURANCE COSTS

Insurance might no longer be available for certain
assets in vulnerable areas. Premiums may increase.

All sectors that will not be able to insure weatherrelated damages as they become uninsurable;
small insurance companies more likely to be
affected

WORKFORCE
Extreme weather events and changes in the
distribution of vector-borne diseases can lead
to more lost days. Health and safety risks may increase
where business operations are prone to extreme
weather events.

Sectors that have outdoor field work e.g.

construction, geological research, scientific
expeditions, rural development projects in Africa
and other regions

Costs of Climate Change and Adaptation in South Asia

ADB, 2014
Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka - will see an average
economic loss of around 1.8 percent of their collective annual gross domestic product
(GDP) by 2050, rising sharply to 8.8 percent by 2100 if the world continues on its current
fossil fuel-intensive path.
The Maldives would be the worst affected, and could be losing 12.6 percent of its
economy annually by 2100. Average annual economic losses could amount to up to
9.4 percent in Bangladesh by 2100.

The losses in Nepal could rise to 9.9 percent - largely because of melting glaciers while
they could total 8.7 percent in India, 6.6 percent in Bhutan, and 6.5 percent in Sri Lanka

The East Asian economy would lose 5.3 percent; the Southeast Asian
economy would lose 6.7 percent, and the Pacific 12.7 percent

TAKE AWAYS
SINGLE PARTY REPUBLIC COUNTRIES
PER CAPITA GDP
SOCIAL DEVELOPMENT DISTRIBUTION
CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES

TAKE AWAYS

SINGLE PARTY REPUBLIC COUNTRIES

PER CAPITA GDP
SOCIAL DEVELOPMENT DISTRIBUTION
CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES

TAKE AWAYS

SINGLE PARTY REPUBLIC COUNTRIES

PER CAPITA GDP

SOCIAL DEVELOPMENT DISTRIBUTION
CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES

TAKE AWAYS

SINGLE PARTY REPUBLIC COUNTRIES

PER CAPITA GDP

SOCIAL DEVELOPMENT DISTRIBUTION

CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES

TAKE AWAYS

SINGLE PARTY REPUBLIC COUNTRIES

PER CAPITA GDP

SOCIAL DEVELOPMENT DISTRIBUTION

CORE BUSINESS FUNCTIONS, VALUE CHAIN, LOCAL COMMUNITIES

ASIA

THANK YOU
FOR YOUR PATIENCE AND TIME