How Asia avoided a commodity crisis

Edmund Harriss, manager of the Guinness Asian Equity Income fund, says Asian countries have proved resilient to recent financial and commodity crises by becoming integrated manufacturing hubs that are not dependent on commodities

The BRIC economies have been a popular investment concept, but the economies of Brazil and Russia have proved too dependent on commodities. This was to their advantage as prices rose, especially during the China investment boom, but as this slowed, falling commodity prices left their economies cruelly exposed. Both notably failed to broaden their industrial bases in the good times. Their currencies have now weakened and both are struggling with recession and inflation. The contrast with Asia is significant. There are countries in Asia that are significant commodity producers (of oil, gas...