THE ASIAN MYTHS

Contrary to popular belief, the continent does not need a strong Japan or a devaluation of the renminbi. Only structural reforms will bring about a full recovery. There are three myths regarding east Asia's economic recovery: it depends on Japan's recovery; the renminbi must devalue for China to remain competitive; and Asia is on its way to full recovery. They are just that - myths. Japan has contributed significantly to Asia's rise in the past decade or two. Given a choice of having or not having Japanese involvement, the answer is unequivocal: yes, let us have it. Japan is part of the problem. On China, devaluation is not to the country's advantage. Every developing economy will see an erosion of its currency over time and China is no exception. However, do not expect this to happen any time soon. at the heart of the problem are structural deficiencies.